Vacheron Constantin

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to heaven, we were all going direct the other way...Charles Dickens; A Tale of Two Cities.

While Mr. Dickens penned those words about the French Revolution, his sentiments could apply to many other pivotal periods in recorded history, before or since.

The Great Depression.

Unlike the Great War of 1914, which was demoted to World War I once we were foolish enough to start another, there has only been one Great Depression.  Commencing in October of 1929 and lasting a decade more-or-less, the world-wide economic disaster saw an unprecedented drop in employment and productivity.  Along with other purveyors of luxury items, the Swiss watch industry was deeply affected.

With its workforce reduced to a single technician and sixty-five workers, the Vacheron & Constantin factory only managed to assemble 1,800 movements in 1930.  By 1931, salaries were slashed and working hours reduced as luxury goods lay on the shelves, unwanted in all markets.  The picture worsened for 1932 when only 211 movements were produced; truly the winter of despair!  Production remained low through 1934 while workers were consigned to piece-work status.  When the firm's 150th anniversary was celebrated in 1935 with a special run of 300 Jubilee wrist watches, it was accomplished by using unwanted Lépine-type movements languishing in storage.  Their low retail price provided a welcome financial boost.

Swiss watch manufacturing was helped by devaluation of the franc in 1936, resulting in a return to normal working hours for those still employed with Vacheron & Constantin.  The firm's creativity was not diminished as this year saw production of two unique Aviator's Degree wrist watches and two World Time pocket watches of the Cottier system.  Production increased to 3,000 watches of all types and, by the end of 1937, the factory had over 400 unfulfilled orders on the books.  With their credit depleted, V&C management realized they lacked the resources to meet the market's impending recovery.  A solution was desperately sought before the buyers abandoned them!

Jaeger-LeCoultre to the Rescue

The solution turned out to be a merger with the manufacture Jaeger-LeCoultre on September 1st, 1938.  A holding company was formed which included Vacheron & Constantin, Jaeger-LeCoultre's sales organization, and Jaeger-LeCoultre's movement factory.  V&C shareholders exchanged their 1200 shares for 800 of Jaeger-LeCoultre, and a new corporation was formed to manage the partnership; Société anonyme de produits industriels et commerciales, or SAPIC.  Jacques David LeCoultre was appointed chairman and Georges Ketterer, JLC's marketing director, as commercial director.  Movements were henceforth fabricated in LeSentier and finished by V&C in Geneva.  

The Loss of Verger Freres

Most unfortunately, this new business arrangement meant the end of Vacheron & Constantin's special relationship with Verger Frères of Paris, a collaboration which had flourished since 1879.  This house produced some of the most original and artistic Art Deco designs!