Word: volkswagen
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Dates: during 1970-1979
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Actually, the strategy that brought the revival was not all Schmücker's. What ailed Volkswagen two years ago was obvious enough: the work force was swollen, consumers around the world had grown tired of the company's ubiquitous Beetle, the rising value of the German mark had pushed up dollar prices of the company's cars enough to slash sales in the all-important U.S. market (they fell by about a third in 1974-75). The remedies were equally clear: cut the labor force, bring out new models, build a plant...
...Shortly after becoming head of sales for Ford of Germany, he left to take over the tottering Rheinstahl Steel Company, and by designing and executing a major reorganization, made it so profitable that it was bought by the German conglomerate August Thyssen-Hütte. He was enticed to Volkswagen by the challenge. Recalls Schmücker: "It was more than just Volkswagen at stake. I felt that if this company were to fail, in a sense our entire system would...
Swinging Deals. At Volkswagen, Schmücker made frequent visits to the shop floor to argue corporate strategy with workers. Says he: "We have had, sometimes, very interesting and fierce and passionate discussions." He overcame worker objections to manufacturing in the U.S. by swinging deals to supply made-in-Germany engines to other manufacturers-including Chrysler and American Motors. He also promised to retool and expand the Emden plant, which was making only Rabbits for export to the U.S., to turn out other cars as well. Schmücker continued Leiding's policy of paying workers as much...
Recapturing Volkswagen's former lead in the U.S. import market may be a more difficult proposition. The Rabbit faces plenty of subcompact competition-not only from other imports but also from new small cars to be brought out soon by Chrysler and American Motors. Some, ironically, will be powered by VW engines. One selling point for the Rabbits that will be made in Volkswagen's Pennsylvania plant: about 20% will be equipped with lightweight, fuel-stingy diesel engines, the first large-scale introduction of diesels to the American market...
...Volkswagen late last week suddenly gained a potent new rival. In a surprise move, Sweden's two automakers-Volvo and Saab-Scania-announced their decision to unite in a new company, to be called Volvo-Saab-Scania. By any measure, the triple-hyphenated outfit will be a giant: with sales of $5.8 billion, it will rank as Europe's fourth largest automaker (after Daimler-Benz, Renault and Volkswagen), turn out a line of vehicles ranging from compacts to huge Scania rigs, and employ nearly 104,000 workers...