Horological Meandering

Ornatus-Mundi
[Zenith]
7136

• Show profile
• Show other posts

Breaking news: LVMH announces merger of Zenith and TAG Heuer!

Dear All:

the recent news from Bulgari appear to indicate a trend, as the news I got today regarding LVMH indicate:

TAG Heuer, Zenith and Cortech (watch case manufacturer) have merged!

In December 2009, the watch making companies TAG Heuer International and Zenith have amalgamated to give rise to LVMH Swiss Manufactures SA, located in Chaux-de-Fonds. The new company is chaired by Jean-Christophe Babin (CEO of TAG Heuer), assisted by Jean-Frederic Dufour (CEO of Zenith) and by Jean-Claude Femiot (CEO of watch case producer Cortech in Comol). “The operation is primarily of legal, financial, administrative and tax related character. Each brand keeps its own operational management”, says Jean-Christophe Babin.

At this point it is not clear whether the also will favorise “industrial synergies”. New machines to manufacture platinum for example would need to be adapted to the small volumes production of Zenith and to the high volumes of TAG Heuer. However, the three entities concerned already have strong relations. The main customer of cases manufactured by TAG Heuer is Zenith which also sourced from Cortech, while some of the Grand Carrera models from TAG Heuer are equipped with the Zenith El Primero movement. The merger will accelerate the industrial integration mainly at Zenith, an authentic manufacture, rather than at TAG Heuer (280 collaborators) which mainly buys its movements from specialised suppliers.

The regrouping will not have consequences on the manpower of the companies, reassures Jean-Christophe Babin. It is true that Zenith (150 employees) and Cortech (90) already reduced their workforces in 2009. Hublot, directed by Jean-Claude Biver, is at this point (still) is not concerned with the regrouping strategy of LVMH.

Source: Chronometrophilia Switzerland

Interesting times ahead!

Cheers,
Magnus

Site Info.