The chairman of Grundig Oesterreich, Bernhard Chytra, has stressed that the current situation at the German parent company will not affect Grundig“s television set manufacturing plant in Vienna, Aust…
The chairman of Grundig Oesterreich, Bernhard Chytra, has stressed that the current situation at the German parent company will not affect Grundig“s television set manufacturing plant in Vienna, Austria. The Vienna plant will become Grundig“s largest manufacturing facility at the end of 1997 following the relocation of TV production from Nuremberg-Langwasser in Germany. Chytra added that the Vienna factory was indispensable to Grundig in the short term. He dismissed speculation about a break-up of the Grundig group following the termination of the management control agreement with the Dutch group Philips, which still has a 31.6% stake in the company. Philips previously ran the company under a contract with the Max Grundig Foundation, which holds a stake of almost 70%. Philips said it planned to keep its stake as a passive shareholder. Grundig lost DM 250 million (US$ 153 million) in 1996 and DM 600 million in 1995. Chytra also emphasised that the resignation of Grundig AG“s chairman Pieter van der Wal on 20 January would have no direct consequences for the group“s Austrian activities. Mr. Van der Wal had announced plans to cut 2,000 of Grundig“s 8,500 staff in Germany after Dutch Philips Electronics NV gave up control of Grundig on 1 January this year.