Toni Schmucker
Encyclopedia
Toni Schmücker was the fourth chief executive officer
of the Volkswagen
automobile company (Volkswagenwerk AG), following the handover of the company in 1948 to German control from the British, who had administered the VW factory in Wolfsburg
, Germany after the Second World War ended.
Schmücker's automotive experience came from a long successful career with Ford at Cologne
where he began his career as a commercial apprentice when aged 16. He returned to Ford in 1946, following his military service, working successively in the sales, finance and export departments. He was appointed Purchasing Manager in 1956 and joined the management board in 1961. He was appointed Sales manager in 1967 before leaving to become Chairman of Rheinstahl in 1968.
He became Chairman of the Volkswagen
board in February 1975, succeeding Rudolf Leiding
. Schmücker brought to the job a combination of political skill and personal charm that had eluded his two immediate predecessors: his authority within the company was also enhanced by the extent of the financial crisis that directly preceded his appointment and which had appeared to place the very survival of the business in doubt. At the time of Schmücker's assumption of the job, Volkswagen had just staved off bankruptcy with the introduction of the Volkswagen Golf
(marketed as the Rabbit in North America and as the Caribe in Latin America), which would eventually replace the Volkswagen Beetle
. One of Schmücker's first achievements at Wolfsburg involved reducing the Volkswagen workforce by 25,000 employees during 1975, applying, in the words of a contemporary industry commentator, methods and systems he had learned at Ford. The loss making assembly plant in Australia was closed, but after a period of rationalisation he placed the plants in Mexico and Brazil on a sounder footing for growth than that on which he had found them.
Schmücker's cost-cutting instincts were also evident in the decision to sell back to Porsche
the commission for a successor to the commercially disappointing VW-Porsche 914
. The new car, based on the underpinnings of the Audi 100 C2
, turned up a couple of years later badged as the Porsche 924
, but sold in much lower volumes (and at a near Porsche-level higher price) than had been envisaged when Volkswagen had commissioned the project.
In September 1976, Schmücker made history by securing a deal to build the Volkswagen Westmoreland Assembly Plant
near New Stanton, Pennsylvania
, making VW the first non-American car company to build its products in the United States since the 1930's. It was an effort to make the Rabbit less expensive to sell in North America at a time when the German Mark
was gaining in value both against the U.S. dollar and against the currencies of other competitor economies such as Italy, Japan and France. The Pennsylvania factory opened on 10 April 1978.
The Schmücker era saw a conscious retreat from the old commitment to crank up volumes at almost any price: Volkswagen by 1980 was only the world's fifth largest auto-maker in terms of unit sales, overtaken during the 1970s by Toyota and Nissan since volumes had peaked in 1971. Under Schmücker, the Beetle was no longer the unstoppable force in European and US marketplaces it had been at the start of the decade, and in price sensitive markets the German built Golf
was hampered by government determination to retain a strong currency. VW lost sales volume to the Japanese automakers, generally around the world but particularly in North America. Nevertheless, in 1975 Volkswagen was again profitable and in 1976 it posted a profit of One Billion Marks, earning Schmücker the epithet in Wolfsburg "Toni, der Trickser".
After suffering a heart attack in 1981, Schmücker was forced to resign the following year, and was succeeded by Dr. Carl Hahn
.
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...
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 (Volkswagenwerk AG), following the handover of the company in 1948 to German control from the British, who had administered the VW factory in Wolfsburg
Wolfsburg
Wolfsburg is a town in Lower Saxony, Germany. It is located on the River Aller northeast of Braunschweig , and is mainly notable as the headquarters of Volkswagen AG...
, Germany after the Second World War ended.
Schmücker's automotive experience came from a long successful career with Ford at Cologne
Cologne
Cologne is Germany's fourth-largest city , and is the largest city both in the Germany Federal State of North Rhine-Westphalia and within the Rhine-Ruhr Metropolitan Area, one of the major European metropolitan areas with more than ten million inhabitants.Cologne is located on both sides of the...
where he began his career as a commercial apprentice when aged 16. He returned to Ford in 1946, following his military service, working successively in the sales, finance and export departments. He was appointed Purchasing Manager in 1956 and joined the management board in 1961. He was appointed Sales manager in 1967 before leaving to become Chairman of Rheinstahl in 1968.
He became Chairman 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...
board in February 1975, succeeding 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....
. Schmücker brought to the job a combination of political skill and personal charm that had eluded his two immediate predecessors: his authority within the company was also enhanced by the extent of the financial crisis that directly preceded his appointment and which had appeared to place the very survival of the business in doubt. At the time of Schmücker's assumption of the job, Volkswagen had just staved off bankruptcy with the introduction of the 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...
(marketed as the Rabbit in North America and as the Caribe in Latin America), which would eventually replace the Volkswagen 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...
. One of Schmücker's first achievements at Wolfsburg involved reducing the Volkswagen workforce by 25,000 employees during 1975, applying, in the words of a contemporary industry commentator, methods and systems he had learned at Ford. The loss making assembly plant in Australia was closed, but after a period of rationalisation he placed the plants in Mexico and Brazil on a sounder footing for growth than that on which he had found them.
Schmücker's cost-cutting instincts were also evident in the decision to sell back to Porsche
Porsche
Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....
the commission for a successor to the commercially disappointing VW-Porsche 914
Porsche 914
The Porsche 914 or VW-Porsche 914 is a mid-engined, targa-topped two-seat roadster designed, manufactured and marketed collaboratively by Volkswagen and Porsche from 1969 to 1976.- Development :...
. The new car, based on the underpinnings of the Audi 100 C2
Audi 100
The restyled C2 Audi 100 was launched in 1976, with an in-line five-cylinder engine...
, turned up a couple of years later badged as the Porsche 924
Porsche 924
The Porsche 924 is an automobile produced by Porsche AG of Germany from 1976 to 1988. A two-door, 2+2 coupé, the 924 replaced the 914 as the company's entry-level model, and was the model that finally retired the 912. In production terms, the 924 was the first Porsche model powered by a...
, but sold in much lower volumes (and at a near Porsche-level higher price) than had been envisaged when Volkswagen had commissioned the project.
In September 1976, Schmücker made history by securing a deal to build the Volkswagen Westmoreland Assembly Plant
Volkswagen Westmoreland Assembly Plant
The Volkswagen Westmoreland Assembly Plant is a manufacturing plant formerly operated by Volkswagen of America , south of Pittsburgh in Westmoreland County, Pennsylvania near New Stanton. The complex manufactured 1.15 million vehicles from 1978 to 1988...
near New Stanton, Pennsylvania
New Stanton, Pennsylvania
New Stanton is a borough in Westmoreland County, Pennsylvania, United States. The population was 1,906 at the 2000 census. New Stanton is often used as a control city in western parts of Pennsylvania, as I-70 joins the Pennsylvania Turnpike eastbound towards Breezewood, Pennsylvania in New...
, making VW the first non-American car company to build its products in the United States since the 1930's. It was an effort to make the Rabbit less expensive to sell in North America at a time when the German Mark
German mark
The Deutsche Mark |mark]], abbreviated "DM") was the official currency of West Germany and Germany until the adoption of the euro in 2002. It is commonly called the "Deutschmark" in English but not in German. Germans often say "Mark" or "D-Mark"...
was gaining in value both against the U.S. dollar and against the currencies of other competitor economies such as Italy, Japan and France. The Pennsylvania factory opened on 10 April 1978.
The Schmücker era saw a conscious retreat from the old commitment to crank up volumes at almost any price: Volkswagen by 1980 was only the world's fifth largest auto-maker in terms of unit sales, overtaken during the 1970s by Toyota and Nissan since volumes had peaked in 1971. Under Schmücker, the Beetle was no longer the unstoppable force in European and US marketplaces it had been at the start of the decade, and in price sensitive markets the German built 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...
was hampered by government determination to retain a strong currency. VW lost sales volume to the Japanese automakers, generally around the world but particularly in North America. Nevertheless, in 1975 Volkswagen was again profitable and in 1976 it posted a profit of One Billion Marks, earning Schmücker the epithet in Wolfsburg "Toni, der Trickser".
After suffering a heart attack in 1981, Schmücker was forced to resign the following year, and was succeeded by Dr. Carl Hahn
Carl Hahn
Dr. Carl Horst Hahn is chairman emeritus of the automotive concern Volkswagen Group. He served as the Chairman of the Board of Management of the group's parent company, Volkswagen AG from 1982 to 1993...
.