Max Grundig
Encyclopedia
Max Grundig was the founder of electronics company Grundig AG
. He was raised by his parents in Nuernberg where he delayed his final school exams (Abitur
) and completed training as an electrician. In 1930 he and a colleague opened a store selling radios under the name Fuerth, Grundig & Wurzer (RVF), generating one million Reichsmark
in sales by 1938. After World War II
business expanded with a successful range of consumer electronics
. In 1972 the company became a corporation
and was sold to Philips
in 1984.
His company was one of the first to produce frequency modulated radios, cutting out static interference for clearer reception. In 1952, it was one of the first European companies to start producing TV sets.
Grundig built his company up after World War II
to become a market leader in home entertainment products and a symbol of West Germany's
Wirtschaftswunder
. It was only in the late 1970s that it began to lose some of its marketshare as it came under increasing pressure from lower priced Japan
ese products, and in 1980 the company recorded its first losses.
Grundig's answer to the Asian competition was to form EURO, a common front of European manufacturers. It did not stave off the challenge, however, and the company was forced to close eleven plants and cut its workforce from thirty-five thousand to twenty-nine thousand workers. In 1984, the Dutch Philips
group bought out nearly a third share and took over the management.
Colleagues described Max Grundig, the son of a warehouse manager, as a workaholic who made decisions alone and interested by himself in the minutest detail of his business.
"Order is holy to him; it means as much as half," was an official company description of him.
Grundig's father died when he was twelve and his mother had to support her five children on a factory wage.
Young Max started his working life as a plumber's apprentice but by the age of twenty-two had set up his own radio shop with a friend in Nuremberg.
After World War II, he was permitted by the Allies to relocate his business to the Franconian city of Fuerth where he set up his own factory to produce radio parts.
He was married to Chantal Grundig.
He received the Eduard Rhein Ring of Honor from the German Eduard Rhein Foundation in 1982.
Grundig
Grundig AG is a German manufacturer of consumer electronics for home entertainment which transferred to Turkish control in 2004-2007. Established in 1945 in Nuremberg by Max Grundig, the company changed hands several times before becoming part of the Turkish Koç Holding group...
. He was raised by his parents in Nuernberg where he delayed his final school exams (Abitur
Abitur
Abitur is a designation used in Germany, Finland and Estonia for final exams that pupils take at the end of their secondary education, usually after 12 or 13 years of schooling, see also for Germany Abitur after twelve years.The Zeugnis der Allgemeinen Hochschulreife, often referred to as...
) and completed training as an electrician. In 1930 he and a colleague opened a store selling radios under the name Fuerth, Grundig & Wurzer (RVF), generating one million Reichsmark
German reichsmark
The Reichsmark was the currency in Germany from 1924 until June 20, 1948. The Reichsmark was subdivided into 100 Reichspfennig.-History:...
in sales by 1938. After 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...
business expanded with a successful range of consumer electronics
Consumer electronics
Consumer electronics are electronic equipment intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver...
. In 1972 the company became a corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
and was sold to Philips
Philips
Koninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
in 1984.
His company was one of the first to produce frequency modulated radios, cutting out static interference for clearer reception. In 1952, it was one of the first European companies to start producing TV sets.
Grundig built his company up after 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...
to become a market leader in home entertainment products and a symbol of West Germany's
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....
Wirtschaftswunder
Wirtschaftswunder
The term describes the rapid reconstruction and development of the economies of West Germany and Austria after World War II . The expression was used by The Times in 1950...
. It was only in the late 1970s that it began to lose some of its marketshare as it came under increasing pressure from lower priced Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese products, and in 1980 the company recorded its first losses.
Grundig's answer to the Asian competition was to form EURO, a common front of European manufacturers. It did not stave off the challenge, however, and the company was forced to close eleven plants and cut its workforce from thirty-five thousand to twenty-nine thousand workers. In 1984, the Dutch Philips
Philips
Koninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
group bought out nearly a third share and took over the management.
Colleagues described Max Grundig, the son of a warehouse manager, as a workaholic who made decisions alone and interested by himself in the minutest detail of his business.
"Order is holy to him; it means as much as half," was an official company description of him.
Grundig's father died when he was twelve and his mother had to support her five children on a factory wage.
Young Max started his working life as a plumber's apprentice but by the age of twenty-two had set up his own radio shop with a friend in Nuremberg.
After World War II, he was permitted by the Allies to relocate his business to the Franconian city of Fuerth where he set up his own factory to produce radio parts.
He was married to Chantal Grundig.
He received the Eduard Rhein Ring of Honor from the German Eduard Rhein Foundation in 1982.