BSH Chronology 1967-1978: Establishment and National Consolidation: Difference between revisions

This quote from the preamble to the contract establishing "Interessengemeinschaft Haushaltsgeräte (IGH)", which was the forerunner to Bosch und Siemens Hausgeräte GmbH (BSHG<ref>BSH was founded in 1967 as Bosch-Siemens Hausgeräte GmbH - BSHG for short. In 1998, the name was changed to BSH Bosch und Siemens Hausgeräte GmbH, with the short form BSH. Since the sale of the Siemens shares in BSH to Robert Bosch GmbH the company’s name is now BSH Hausgeräte GmbH, but still BSH for short.</ref>), succinctly describes how the planned cooperation was good for all sides. The market for electrical home appliances had recorded increases in production and growth rates of up to 290 percent after the economic miracle. From the mid-1960s, every household was equipped with the necessary appliances, sales were stagnating and growth rates declining rapidly.<ref>Manfred Schwender: Absatzbedingungen und Absatzorganisation für Elektro-Haushaltsgeräte, Nuremberg 1964, pages 9–12.</ref> This development was reinforced by a general downturn, which resulted in a minor recession in 1967.<ref>Also: Susanne Hilger: „Amerikanisierung“ deutscher Unternehmen: Wettbewerbsstrategien und Unternehmenspolitik bei Henkel, Siemens und Daimler-Benz (1945/49-1975), Stuttgart 2004, S. 136–138; BSH-Konzernarchiv, F-BSH-001, 40 Jahre BSH – Eine Chronik, Munich 2007, page 28. Dieter Spethmann: Deutschland – Die Dritte Industrielle Revolution, Munich 2010, page 72. Hans-Ulrich Wehler: Deutsche Gesellschaftsgeschichte. Fifth Volume. Bundesrepublik und DDR. 1949–1990, Munich 2008, page 59.</ref> In this situation, the benefits of collaboration were obvious: consolidation through cooperation, establishment of common development, shared production and joint sales as well as focus on technical innovations and rationalization.<ref>BSH Group Archive, B01-0001, page 6. Hilger: "Amerikanisierung" deutscher Unternehmen, page 139. BSH_Zeitstrahl_1966_bis_1962_erhalten_v_Peschl_TR.</ref> IGH wanted to use its strong new market position to stand up to the competition, which was coming primarily from Italy, the U.S. and Japan.<ref>BSH Group Archive, B01-0001, Communication from BSH to the Board of Management of Bosch-Haushaltgeräte and Siemens Electrogeräte from 18.12.1968. Siemens: Entfesselter Riese, in: Der Spiegel 9/1966, pages 56-58, page 58. Bähr/Erker: Bosch, page 378.</ref>

Criticism of the planned cooperation came from different sides, including the state. The Federal Cartel Office raised concerns about the cooperation in a resolution from March 17, 1966.<ref>BSH Group Archive, B01-0001, Gründung und Leitung der Bosch-Siemens Hausgeräte GmbH (BSHG), page 7.</ref> The contract was thereupon revised and the Cartel Office gave the green light on November 22, 1966. Bosch und Siemens Hausgeräte GmbH (BSHG) was founded by Siemens AG and Robert Bosch GmbH on January 13, 1967.<ref>Geschichte_BSH_Tochtermann, page 2. BSH Group Archive, B01-0001, page 8.</ref> BSHG was run in equal representation by three shareholders from each of the parent companies, Siemens and Bosch.<ref>BSH Group Archive, B01-0001, Gründung und Leitung der Bosch-Siemens Hausgeräte GmbH (BSHG), page 8.</ref> The share capital was one million Deutschmark. The products continued to be distributed under the registered trademarks. In the years that followed, BSHG reorganized its sales and production. Structures were standardized based on the Siemens sites in Berlin (specializing in washing machines) and Traunreut (specializing in cookers, ovens, cooktops) and the Bosch site in Giengen (specializing in dishwashers and refrigeration appliances) and synergies were sought.  

Major changes were also taking place in terms of premises at this time: the new dishwasher plant in Dillingen was inaugurated in 1976 and BSHG acquired its first foreign investment through shares in the Greek market leader Pitsos (now BSH Ikiakes Syskeveses A.B.E.), which was founded originally in 1865. The administration role moved to a new building in Hochstrasse in Munich in 1978. The shared, centrally located administration building laid the cornerstone for BSHG's corporate identity and functioned as a clearly visible external sign of the internal amalgamation.<ref>BSH Archive, Tochtermann Folder: Vortrag zur RB-GPI, dated 16.12.1991 by Dr Wörner.</ref>