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Grundig

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Grundig AG is a German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 manufacturer of consumer electronics
Consumer electronics
Consumer electronics are electronic equipment intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver...

 for home entertainment which transferred to Turkish
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

 control in 2004-2007. Established in 1945 in Nuremberg
Nuremberg
Nuremberg[p] is a city in the German state of Bavaria, in the administrative region of Middle Franconia. Situated on the Pegnitz river and the Rhine–Main–Danube Canal, it is located about north of Munich and is Franconia's largest city. The population is 505,664...

  by Max Grundig
Max Grundig
Max Grundig was the founder of electronics company Grundig AG. He was raised by his parents in Nuernberg where he delayed his final school exams and completed training as an electrician. In 1930 he and a colleague opened a store selling radios under the name Fuerth, Grundig & Wurzer , generating...

, the company changed hands several times before becoming part of the Turkish Koç Holding
Koç Holding
Koç Holding A.Ş. is the top industrial conglomeratein Turkey. The Koç family, one of Turkey's wealthiest families, controls the company with its headquarter in Nakkaştepe, Istanbul...

 group. In 2007, after buying control of the Grundig brand, Koc renamed its Beko Elektronik
Beko
Beko is a domestic appliance and electronics brand of Arçelik A.Ş., owned by Koç Holding of Turkey.The company's products include washing machines, TV sets and laptop computers...

 white goods and consumer electronics division Grundig Elektronik A.Ş., which has decided to merge with Arçelik A.Ş.
Arçelik
Arçelik A.Ş. is a household appliances manufacturer in Turkey. The Company engages in the production and marketing of durable goods, components, consumer electronics and after-sale services...

 as declared on February 27, 2009.

Early history


The company began in 1930 with the establishment of a store named Fuerth, Grundig & Wurzer (RVF), which sold radio
Radio
Radio is the transmission of signals through free space by modulation of electromagnetic waves with frequencies below those of visible light. Electromagnetic radiation travels by means of oscillating electromagnetic fields that pass through the air and the vacuum of space...

s. After WWII Max Grundig recognized the need for radios in Germany, and in 1947 produced a kit
Kit
-Animals:* kit, a young ferret* a short form of kitten, a young cat* Kit fox, a relatively common North American fox* Kit, a group of domestic pigeons trained to perform together in competitions-Companies and organisations:...

, while a factory and administration centre were built at Fürth
Fürth
The city of Fürth is located in northern Bavaria, Germany in the administrative region of Middle Franconia. It is now contiguous with the larger city of Nuremberg, the centres of the two cities being only 7 km apart....

. In 1951 the first television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...

s were manufactured at the new facility. At the time Grundig was the largest radio manufacturer in Europe. Divisions in Nuremberg, Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...

 and Karlsruhe
Karlsruhe
The City of Karlsruhe is a city in the southwest of Germany, in the state of Baden-Württemberg, located near the French-German border.Karlsruhe was founded in 1715 as Karlsruhe Palace, when Germany was a series of principalities and city states...

 were established.

Grundig in Belfast


A plant was opened in 1960 to manufacture tape recorder
Tape recorder
An audio tape recorder, tape deck, reel-to-reel tape deck, cassette deck or tape machine is an audio storage device that records and plays back sounds, including articulated voices, usually using magnetic tape, either wound on a reel or in a cassette, for storage...

s in Belfast
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...

, Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...

, the first production by Grundig outside Germany. The managing director of the plant Thomas Niedermayer
Thomas Niedermayer
Thomas Niedermayer was a German industrialist, kidnapped and killed by the Provisional IRA in 1973. He was managing director of the Grundig factory in Belfast and the West German honorary consul for Northern Ireland...

, was kidnapped and later killed by the Provisional IRA in December 1973. The factory was closed with the loss of around 1000 jobs in 1980.


Philips takeover


In 1972, Grundig GmbH
Gesellschaft mit beschränkter Haftung
Gesellschaft mit beschränkter Haftung is a type of legal entityvery common in Germany, Austria, Switzerland, and other Central European countries...

 became Grundig AG
Aktiengesellschaft
Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e. owned by shareholders, and may be traded on a stock market. The term is used in Germany, Austria and Switzerland...

. After this Philips
Philips
Koninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....

 began to gradually accumulate share
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...

s in the company over the years, and assumed complete control in 1993. Philips sold Grundig to a Bavaria
Bavaria
Bavaria, formally the Free State of Bavaria is a state of Germany, located in the southeast of Germany. With an area of , it is the largest state by area, forming almost 20% of the total land area of Germany...

n consortium in 1998 due to unsatisfactory performance.

Later history


At the end of June 2000 the company relocated its headquarters
Headquarters
Headquarters denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the top of a corporation taking full responsibility managing all business activities...

 in Fürth and Nuremberg
Nuremberg
Nuremberg[p] is a city in the German state of Bavaria, in the administrative region of Middle Franconia. Situated on the Pegnitz river and the Rhine–Main–Danube Canal, it is located about north of Munich and is Franconia's largest city. The population is 505,664...

. Grundig lost €1.281 million the following year. In autumn 2002, Grundig's banks did not extend the company's lines of credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...

, leaving the company with an April 2003 deadline to announce insolvency
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...

. Grundig AG declared bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....

 in 2003, selling its satellite equipment division to Thomson
Thomson SA
Technicolor SA , formerly Thomson SA and Thomson Multimedia, is a French international provider of solutions for the creation, management, post-production, delivery and access of video, for the Communication, Media and Entertainment industries. Technicolor’s headquarters are located in Issy les...

. In 2004 Britain's Alba plc
Alba (electronics)
Harvard International plc is a British consumer electronics company, which owns the Goodmans and iLuv brands....

 and the Turkish Koc's Beko jointly took over
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...

 Grundig Home InterMedia System, Grundig's consumer electronics division. In 2007 Alba sold its half of the business to Beko for US$50.3 million, although it retained the licence to use the Grundig brand in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 until 2010, and in Australasia until 2012.

In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, products marketed under the Grundig brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...

 are manufactured by the Eton Corporation
Eton Corporation
Etón Corporation is an American company established over 25 years ago based in Palo Alto, California, formerly known as Lextronics. It is famous for its line of shortwave and emergency hand-crank radios. It also sells Grundig-branded radios in North America and Europe...

 (formerly Lextronix), based in Palo Alto, California
Palo Alto, California
Palo Alto is a California charter city located in the northwest corner of Santa Clara County, in the San Francisco Bay Area of California, United States. The city shares its borders with East Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford, Portola Valley, and Menlo Park. It is...

. Spain's Grupo Vitelcom
Vitelcom
Vitelcom Group was a Spanish manufacturer and distributor of consumer electronics, concentrating on the home entertainment and mobile phone markets...

 is licensed to manufacture mobile telephones using the Grundig Mobile
Grundig mobile
Grundig mobile is a Spanish manufacturer of mobile phones and accessories.Grundig mobile was born in 2005 as a collaboration agreement between Grundig and Vitelcom Mobile Technology....

 brand, and auto parts company Delphi
Delphi (auto parts)
Delphi Automotive PLC is an automotive parts company headquartered in Troy, Michigan, USA. Delphi is one of the world's largest automotive parts manufacturers and has approximately 146,600 employees ....

 manufactures car radios branded Grundig.

In 2007 Grundig Mobile
Grundig mobile
Grundig mobile is a Spanish manufacturer of mobile phones and accessories.Grundig mobile was born in 2005 as a collaboration agreement between Grundig and Vitelcom Mobile Technology....

 announced the U900 Linux
Linux
Linux is a Unix-like computer operating system assembled under the model of free and open source software development and distribution. The defining component of any Linux system is the Linux kernel, an operating system kernel first released October 5, 1991 by Linus Torvalds...

-based cell phone.

External links