Kurt Lotz
Encyclopedia
Dr. Kurt Lotz was the second post-war
Chief executive officer
(CEO) of the Volkswagen
automobile company in Germany
. He was nominated in April 1967 to succeed the legendary Heinrich Nordhoff
at the end of December 1968. Sadly, promotion arrived early when Nordhoff died in April 1968.
Lotz was the son of a farmer from the German state of Hesse
. During World War II
, he became a Luftwaffe
general-staff Major, assigned to assessing needs for the military, which Lotz later looked back on as his first experience with industrial planning on a major scale.
After the war, Lotz worked as a clerk in Mannheim
with the German subsidiary of the Swiss electrical company Brown, Boveri & Cie, which makes all kinds of electrical equipment from home appliances to locomotives. Within twelve years, Lotz rose to chairman. He attempted to diversify the firm, by investing in a small computer company to compete with American computer companies, but when it lost money, a rift between Lotz and his Swiss superiors ensued, and he left. By the time he agreed to become Nordhoff's successor at Volkswagen, he was thought of as a wunderkind of German industry for his rapid rise to the top.
Lotz had been scheduled to take over as VW chairman in October 1968, when Nordhoff was to retire; instead, Nordhoff died six months earlier, and Lotz immediately took over then. He made it VW's priority to wean itself off production of its exceedingly popular Beetle
when that model began to look dated in comparison to newer small cars in the North America
n and Europe
an markets. Beetle sales actually peaked in the United States
the same year Lotz took over. In addition to that, a serious recession in West Germany
the previous year, coupled with serious competition at home from Opel
and from Ford
's newly merged British and German operations, weakened the Beetle's dominace.
Lotz bought out the small German carmaker NSU
, gaining its expertise in the watercooled, four-stroke engines and front-wheel-drive layouts necessary to stay ahead of the competition . Work began on a new small car in 1969, a prototype of which was exhibited for the European auto press. The car would become the perennially popular Volkswagen Golf
, also known as the Rabbit and the Caribe in the Western Hemisphere.
At a time when Germany was swinging decisively towards SPD
politics, Lotz as a CDU
man found himself increasingly out of tune with the political mood of the time, while his position placed him at the head of a particularly political company. His relationship with the VW trades union leaders was not constructive and he failed to retain the support of the Supervisory Board
. The struggle to maintain management control of the business left him with insufficient time to drive through resolution of the increasingly urgent issues involving product policy: he resigned as chairman on 13 September 1971, to be succeeded by Rudolf Leiding
.
In the Autumn/Fall of 1977 Lotz published a memoir entitled "Lebenserfahrungen - Worüber man in Politik und Wirtschaft auch sprechen sollte". It was reported that those familiar with the manuscript had identified no "indiscretions" concerning his time with Volkswagen. These reports were accompanied by speculation that his substantial retirement settlement of a monthly DM 16,000 pension would render any printed indiscretion superfluous.
In 1981 Lotz became Chairman of the World Wildlife Fund
in Germany. By 2002 he was honorary president of the German branch of the organisation.
When Lotz died in 2005, Ferdinand Piech
, chairman of VW from 1993 to 2002, eulogized him as "a strong entrepreneurial personality" who "set his mind thoroughly on steering Volkswagen into the future."
Lotz received a Doctorate from the University of Mannheim
.
Post-war
A post-war period or postwar period is the interval immediately following the ending of a war and enduring as long as war does not resume. A post-war period can become an interwar period or interbellum when a war between the same parties resumes at a later date...
Chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
(CEO) of the Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
automobile company in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. He was nominated in April 1967 to succeed the legendary Heinrich Nordhoff
Heinrich Nordhoff
Heinz Heinrich Nordhoff was a German engineer famous for his leadership of the Volkswagen company as it was rebuilt after World War II....
at the end of December 1968. Sadly, promotion arrived early when Nordhoff died in April 1968.
Lotz was the son of a farmer from the German state of Hesse
Hesse
Hesse or Hessia is both a cultural region of Germany and the name of an individual German state.* The cultural region of Hesse includes both the State of Hesse and the area known as Rhenish Hesse in the neighbouring Rhineland-Palatinate state...
. During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, he became a Luftwaffe
Luftwaffe
Luftwaffe is a generic German term for an air force. It is also the official name for two of the four historic German air forces, the Wehrmacht air arm founded in 1935 and disbanded in 1946; and the current Bundeswehr air arm founded in 1956....
general-staff Major, assigned to assessing needs for the military, which Lotz later looked back on as his first experience with industrial planning on a major scale.
After the war, Lotz worked as a clerk in Mannheim
Mannheim
Mannheim is a city in southwestern Germany. With about 315,000 inhabitants, Mannheim is the second-largest city in the Bundesland of Baden-Württemberg, following the capital city of Stuttgart....
with the German subsidiary of the Swiss electrical company Brown, Boveri & Cie, which makes all kinds of electrical equipment from home appliances to locomotives. Within twelve years, Lotz rose to chairman. He attempted to diversify the firm, by investing in a small computer company to compete with American computer companies, but when it lost money, a rift between Lotz and his Swiss superiors ensued, and he left. By the time he agreed to become Nordhoff's successor at Volkswagen, he was thought of as a wunderkind of German industry for his rapid rise to the top.
Lotz had been scheduled to take over as VW chairman in October 1968, when Nordhoff was to retire; instead, Nordhoff died six months earlier, and Lotz immediately took over then. He made it VW's priority to wean itself off production of its exceedingly popular Beetle
Volkswagen Beetle
The Volkswagen Type 1, widely known as the Volkswagen Beetle or Volkswagen Bug, is an economy car produced by the German auto maker Volkswagen from 1938 until 2003...
when that model began to look dated in comparison to newer small cars in the North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
n and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an markets. Beetle sales actually peaked in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
the same year Lotz took over. In addition to that, a serious recession in West Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
the previous year, coupled with serious competition at home from Opel
Opel
Adam Opel AG, generally shortened to Opel, is a German automobile company founded by Adam Opel in 1862. Opel has been building automobiles since 1899, and became an Aktiengesellschaft in 1929...
and from Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
's newly merged British and German operations, weakened the Beetle's dominace.
Lotz bought out the small German carmaker NSU
NSU Motorenwerke AG
NSU Motorenwerke AG, normally just NSU, was a German manufacturer of automobiles, motorcycles and pedal cycles, founded in 1873. It was acquired by Volkswagen Group in 1969...
, gaining its expertise in the watercooled, four-stroke engines and front-wheel-drive layouts necessary to stay ahead of the competition . Work began on a new small car in 1969, a prototype of which was exhibited for the European auto press. The car would become the perennially popular Volkswagen Golf
Volkswagen Golf
The Volkswagen Golf is a small family car manufactured by Volkswagen since 1974 and marketed worldwide across six generations, in various body configurations and under various nameplates – as the Volkswagen Rabbit in the United States and Canada , and as the Volkswagen Caribe in Mexico .The...
, also known as the Rabbit and the Caribe in the Western Hemisphere.
At a time when Germany was swinging decisively towards SPD
Social Democratic Party of Germany
The Social Democratic Party of Germany is a social-democratic political party in Germany...
politics, Lotz as a CDU
Christian Democratic Union (Germany)
The Christian Democratic Union of Germany is a Christian democratic and conservative political party in Germany. It is regarded as on the centre-right of the German political spectrum...
man found himself increasingly out of tune with the political mood of the time, while his position placed him at the head of a particularly political company. His relationship with the VW trades union leaders was not constructive and he failed to retain the support of the Supervisory Board
Supervisory board
A supervisory board or supervisory committee, often called board of directors, is a group of individuals chosen by the stockholders of a company to promote their interests through the governance of the company and to hire and supervise the executive directors and CEO.Corporate governance varies...
. The struggle to maintain management control of the business left him with insufficient time to drive through resolution of the increasingly urgent issues involving product policy: he resigned as chairman on 13 September 1971, to be succeeded by Rudolf Leiding
Rudolf Leiding
Dr. Ing. h.c. Rudolf Leiding was the third post-war chairman of the Volkswagen automobile company , succeeding Kurt Lotz in 1971....
.
In the Autumn/Fall of 1977 Lotz published a memoir entitled "Lebenserfahrungen - Worüber man in Politik und Wirtschaft auch sprechen sollte". It was reported that those familiar with the manuscript had identified no "indiscretions" concerning his time with Volkswagen. These reports were accompanied by speculation that his substantial retirement settlement of a monthly DM 16,000 pension would render any printed indiscretion superfluous.
In 1981 Lotz became Chairman of the World Wildlife Fund
World Wide Fund for Nature
The World Wide Fund for Nature is an international non-governmental organization working on issues regarding the conservation, research and restoration of the environment, formerly named the World Wildlife Fund, which remains its official name in Canada and the United States...
in Germany. By 2002 he was honorary president of the German branch of the organisation.
When Lotz died in 2005, Ferdinand Piech
Ferdinand Piëch
Ferdinand Karl Piëch is an Austrian business magnate, engineer and executive who is currently the chairman of the supervisory board of Volkswagen Group....
, chairman of VW from 1993 to 2002, eulogized him as "a strong entrepreneurial personality" who "set his mind thoroughly on steering Volkswagen into the future."
Lotz received a Doctorate from the University of Mannheim
University of Mannheim
The University of Mannheim is one of the younger German universities. It offers Bachelor, Master, and PhD degrees.The University is mainly located in Mannheim’s palace the largest baroque palace in Germany. The whole city center of Mannheim is aligned symmetrically to the palace.About 800 scholars...
.