BSH Chronology 1979-1983: National Growth: Difference between revisions

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==== Drop in revenue at BSHG – "The kitchen is full" ====
==== Drop in revenue at BSHG – "The kitchen is full" ====
An article appeared in the German magazine "Der Spiegel" in 1982, entitled: "Die Küche ist voll. Die Hausgeräte-Hersteller stecken in einer schweren Flaute," which roughly translates as "The kitchen is full. Home appliance manufacturers experiencing serious downturn."<ref>[http://www.spiegel.de/spiegel/print/d-14342884.html "Die Küche ist voll", in: Der Spiegel 31/1982], page 61.</ref> The negative effects of the second oil crisis from 1979/1980 were being clearly felt at the start of the 1980s.<ref>BSH Corporate Archives, A01-0001, Business Report 1980, page 4. Business Report 1981, page 4.</ref> 1982 in particular was a very difficult year for the German economy: High unemployment, rising energy prices and a decline in real income also impacted the home appliance industry.<ref>[http://www.spiegel.de/spiegel/print/d-14342884.html "Die Küche ist voll", in: Der Spiegel 31/1982], page 61; Dieter Speermann: Deutschland – Die Dritte Industrielle Revolution, München 2010, page 80.</ref> High interest rates and the slow pace of housing construction were the final straw, the home appliance boom of the early years was definitely over.<ref>[http://www.spiegel.de/spiegel/print/d-14347829.html "Ja, wenn wir ein Saftladen wären", in: Der Spiegel 34/1982], page 27.</ref> Refrigerators, washing machines and vacuum cleaners were already standard appliances in more than 90 percent of all Federal German households in 1982, leaving only the meager business with replacement units. Added to this, excess capacities existed in production: according to estimates, 15 to 20 percent more food processors were manufactured than sold in Europe at the beginning of the 1980s.  
An article appeared in the German magazine "Der Spiegel" in 1982, entitled: "Die Küche ist voll. Die Hausgeräte-Hersteller stecken in einer schweren Flaute," which roughly translates as "The kitchen is full. Home appliance manufacturers experiencing serious downturn."<ref>[http://www.spiegel.de/spiegel/print/d-14342884.html "Die Küche ist voll", in: Der Spiegel 31/1982], page 61.</ref> The negative effects of the second oil crisis from 1979/1980 were being clearly felt at the start of the 1980s.<ref>BSH Corporate Archives, A01-0001, Business Report 1980, page 4. Business Report 1981, page 4.</ref> 1982 in particular was a very difficult year for the German economy: High unemployment, rising energy prices and a decline in real income also impacted the home appliance industry.<ref>[http://www.spiegel.de/spiegel/print/d-14342884.html "Die Küche ist voll", in: Der Spiegel 31/1982], page 61; Dieter Speermann: Deutschland – Die Dritte Industrielle Revolution, München 2010, page 80.</ref> High interest rates and the slow pace of housing construction were the final straw, the home appliance boom of the early years was definitely over.<ref>[http://www.spiegel.de/spiegel/print/d-14347829.html "Ja, wenn wir ein Saftladen wären", in: Der Spiegel 34/1982], page 27.</ref> Refrigerators, washing machines and vacuum cleaners were already standard appliances in more than 90 percent of all Federal German households in 1982, leaving only the meager business with replacement units. Added to this, excess capacities existed in production: according to estimates, 15 to 20 percent more food processors were manufactured than sold in Europe at the beginning of the 1980s.  
[[File:1933 Kühlschrank St0 rbosch Nr.4066.jpg|thumb|288x288px|Bosch's first refrigerator from 1933. (Source: ###Unternehmensarchiv der Robert Bosch GmbH)]]
[[File:1933 Kühlschrank St0 rbosch Nr.4066.jpg|thumb|288x288px|Bosch's first refrigerator from 1933. (Source: Robert Bosch GmbH - Corporate Archives, signature 6 001 04066)]]


==== Concentration and efficiency ====
==== Concentration and efficiency ====
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==== High-quality technology ====
==== High-quality technology ====
The BSHG brand products were presented at the time under the motto "Future-proof appliances that are a pleasure to use".<ref>BSH Corporate Archives, A05-0005, inform 1982/1, page 2.</ref> 1983 was also a year when BSHG celebrated an impressive anniversary: 50 years of electrical refrigerators from Bosch essentially equated to 50 years of experience and progressive development of the appliances. The BSHG washing machines were also becoming increasingly modern and efficient. Siemens launched the first fully automatic washing machine on the market with the SIWAMAT 870 Electronic.
The BSHG brand products were presented at the time under the motto "Future-proof appliances that are a pleasure to use".<ref>BSH Corporate Archives, A05-0005, inform 1982/1, page 2.</ref> 1983 was also a year when BSHG celebrated an impressive anniversary: [[The_first_Bosch_refrigerator_–_a_round_affair|50 years of electrical refrigerators]] from [[Robert_Bosch_GmbH|Bosch]] essentially equated to 50 years of experience and progressive development of the appliances. The BSHG washing machines were also becoming increasingly modern and efficient. [[Siemens]] launched [[Milestones_of_Success|the first fully automatic washing machine]] on the market with the [[Siemens_Siwamat-S_fully_automatic_washing_machine|SIWAMAT]] 870 Electronic.
[[File:1982 Neff Logo und Slogan 1982 wohl noch vor BSH.jpg|thumb|Neff brand logo and slogan, presumably before 1982: 'Neff - at home in the best kitchens.' (Source: BSH Corporate Archives)]]
[[File:1982 Neff Logo und Slogan 1982 wohl noch vor BSH.jpg|thumb|Neff brand logo and slogan, presumably before 1982: 'Neff - at home in the best kitchens' (Source: BSH Corporate Archives)]]


==== Neff ====
==== NEFF ====
Competitor and market leader AEG went spectacularly bankrupt around the middle of 1982. The then Board of Management of AEG set about trying to restructure the company by selling off the lucrative parts.<ref>[http://www.spiegel.de/spiegel/print/d-14347087.html "Das Geschäft bricht weg", in: Der Spiegel 27/1982], page 69.</ref> This allowed BSHG to expand its portfolio with the addition of the familiar Neff brand. Neff Werke GmbH, a subsidiary of AEG, had the reputation of being a manufacturer of high-quality home appliances.<ref>BSH Corporate Archive, F-Neff-005, Gabriele Kicherer: Geschichte und Bedeutung der Marke Neff, page 54. [http://www.spiegel.de/spiegel/print/d-14347829.html "Ja, wenn wir ein Saftladen wären", in: Der Spiegel 34/1982], page 27.</ref> On November 15, 1982, BSHG acquired the Neff trademark as well as a portion of the fixed and current assets including the sales subsidiaries in England, France and Austria and founded what is today Neff GmbH in Munich. Around 1,000 jobs were successfully retained at the Neff site in Bretten.<ref>BSH Corporate Archives, Historie Tochtermann Folder 5.</ref> New sales channels opened up for BSHG, with Great Britain being one of the most significant. Neff also brought with it specialized technical knowledge and innovations in product development.<ref>BSH Corporate Archives, F-BSH-001, 40 Jahre BSH – Eine Chronik, Munich 2007, page 39.</ref>
Competitor and market leader AEG went spectacularly bankrupt around the middle of 1982. The then Board of Management of AEG set about trying to restructure the company by selling off the lucrative parts.<ref>[http://www.spiegel.de/spiegel/print/d-14347087.html "Das Geschäft bricht weg", in: Der Spiegel 27/1982], page 69.</ref> This allowed BSHG to expand its portfolio with the addition of the familiar [[The_Neff_Brand_and_the_BSH_Site_in_Bretten|NEFF]] brand. Neff Werke GmbH, a subsidiary of AEG, had the reputation of being a manufacturer of high-quality home appliances.<ref>BSH Corporate Archives, F-Neff-005, Gabriele Kicherer: Geschichte und Bedeutung der Marke Neff, page 54. [http://www.spiegel.de/spiegel/print/d-14347829.html "Ja, wenn wir ein Saftladen wären", in: Der Spiegel 34/1982], page 27.</ref> On November 15, 1982, BSHG acquired the NEFF trademark as well as a portion of the fixed and current assets including the sales subsidiaries in England, France and Austria and founded what is today NEFF GmbH in [[The_Company_Headquarters_in_Munich|Munich]]. Around 1,000 jobs were successfully retained at the Neff site in Bretten.<ref>BSH Corporate Archives, Historie Tochtermann Folder 5.</ref> New sales channels opened up for BSHG, with Great Britain being one of the most significant. NEFF also brought with it specialized technical knowledge and innovations in product development.<ref>BSH Corporate Archives, F-BSH-001, 40 Jahre BSH – Eine Chronik, Munich 2007, page 39.</ref>


== Notes ==
== Notes ==

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