Hi all,
CEO Axel Dietz quits at the end of the year!
Translations as I find the time, really busy today! 
HJ,
quits, resigns or ‘is shown the door’?
More here:
http://www.mylargescale.com/Community/Forums/tabid/56/forumid/4/postid/44055/view/topic/Default.aspx
Tim, in today’s corporate culture, perhaps “all of the above?”
Later,
K
Kevin,
thankyou for the link. It seems ‘personal reasons’ as the cause for requesting he be relieved from duty. I do not think that anyone could criticise the performance prospects for the Marklin group with increased sales and future market estimates, as regards advanced orders for its expanding range. One would speculate, although, if personal reasons are really ‘personal’, or as a result of internal corporate shuffling to see him out the door.
The following quote should stifle some dissent from the known 'Marklin' critics - "Because of the strong growth path of Maerklin, the owners increased the capital in the company. The investment was a two digit million Euro investment and demonstrates the long term commitment of the owners." Confidence from the owners. This does not seem like the actions of a company hell-bent on getting out of the business. This level of investment signifies a continued association with the company.Tim,
For the company to be doing so well, why this:
As previously reported, there was a employee meeting in July, were the employees were informed about the need of further cost reduction. Company leadership and union representatives are holding conversations and through the upcoming weeks there is hope that constructive solutions will be found.
Tim Brien said:Depends on his cash out......
HJ, quits, resigns or 'is shown the door'?
I’m sure the investment group would be the first to report that things aren’t going very well. That would certainly be attractive to potential buyers!
Kevin Strong said:
More here: http://www.mylargescale.com/Community/Forums/tabid/56/forumid/4/postid/44055/view/topic/Default.aspxTim, in today’s corporate culture, perhaps “all of the above?”
Later,
K
That translation rivals Bablefish and Google :D, as noted I’ll translate the Märklin press release when I find the time.
Tim Brien said:
Kevin, thankyou for the link. It seems 'personal reasons' as the cause for requesting he be relieved from duty. I do not think that anyone could criticise the performance prospects for the Marklin group with increased sales and future market estimates, as regards advanced orders for its expanding range. One would speculate, although, if personal reasons are really 'personal', or as a result of internal corporate shuffling to see him out the door.The following quote should stifle some dissent from the known 'Marklin' critics - "Because of the strong growth path of Maerklin, the owners increased the capital in the company. The investment was a two digit million Euro investment and demonstrates the long term commitment of the owners." Confidence from the owners. This does not seem like the actions of a company hell-bent on getting out of the business. This level of investment signifies a continued association with the company.</blockquote>Tim,
There are some really interesting remarks in an interview with Dietz, more on that later. Suffice for the moment, I almost fell off my chair laughing and SWMBO came inquiring about the cause.
Bob Burton said:
Tim, For the company to be doing so well, why this: As previously reported, there was a employee meeting in July, were the employees were informed about the need of further cost reduction. Company leadership and union representatives are holding conversations and through the upcoming weeks there is hope that constructive solutions will be found.
Bob, Did I explain that yesterday or was it the day before yesterday. The economy is not booming, one can read that in every Newspaper, every MRR mag and on most of the fora. It would have taken at least two years to turn Märklin around in a good economy, it will take longer in the present economy. At least they’re heading in the right direction … if the press release is to believed. BTW it’s all the fault of the USA and the mortgage crisis aka ABCP. Those damn bankers find more ways to peddle crap then there are days in a year. It’s like anything else: package it to look a million dollars and some fool will bid 2 million!
(http://www.clicksmilies.com/s0105/teufel/devil-smiley-023.gif)
Tim Brien said:Tim,
The following quote should stifle some dissent from the known 'Marklin' critics - "Because of the strong growth path of Maerklin, the owners increased the capital in the company. The investment was a two digit million Euro investment and demonstrates the long term commitment of the owners." Confidence from the owners. This does not seem like the actions of a company hell-bent on getting out of the business. This level of investment signifies a continued association with the company.
I read if differently. From this quote, “But if we want to put Maerklin long term on a profitable track and want to show profits already by 2009.”, I read that they are still bleeding money and if Kingsbridge hadn’t kicked in the additional 5 Million they might have tanked. I don’t care how much orders have increased if they are not making a profit.
It’s a good thing Märklin has an understanding banker, that permits them to expand the facilities - that new production hall at Györ is supposed to be quite nice - to produce all the Hübner and LGB items that are now an integral part of the line.
Jack Barton said:
Tim,I read if differently. From this quote, “But if we want to put Maerklin long term on a profitable track and want to show profits already by 2009.”, I read that they are still bleeding money and if Kingsbridge hadn’t kicked in the additional 5 Million they might have tanked. I don’t care how much orders have increased if they are not making a profit.
Well, depends on how you read the books… Look at bank owned Chrysler:
http://www.businessweek.com/lifestyle/content/aug2008/bw2008081_213456.htm
"When announcing sales on Aug. 1, Chrysler Vice-Chairman and Co-President James Press said the privately held company made $1.1 billion in earnings before interest, taxation, depreciation, and amortization (EBITDA) in the first six months of this year.
But add in some of the costs that help an accountant arrive at net income and Chrysler, a private company that is not required to release financial results, is still losing money. Using the financial reports of former parent Daimler (DAI), which owns 19.9% of Chrysler, the smallest of the Big Three U.S. automakers lost about $400 million in the first quarter."
Tim, I forgot to mention that the Stuttgarter Zeitung reports that the workers union has hired an outside accounting firm to audit the books and won’t discuss “give-backs” until they report back.
Jack Barton said:Not only that, they're already squabbling about how much of the financial details Märklin will have to provide access to.
Tim, I forgot to mention that the Stuttgarter Zeitung reports that the workers union has hired an outside accounting firm to audit the books and won't discuss "give-backs" until they report back.
Jack,
I am usually optimistic, except when I am being pessimistic and I hope that Marklin makes a success of its new venture. Relocation and startup costs obviously must be factored into a new business undertaking. The reported ‘wage cuts’ (sacrifice) are in line with the similar wage cuts that the Lehmann employees undertook in 2006/2007. Nothing is new under the sun.
In so far as having a 'friendly' bank to help out Marklin, well I am thinking, did not Lehmann have a very, very friendly bank that kept allowing them continuous credit, even though the business was not quite making a profit and apparently defaulting on loans when the time drew near and digging a deeper hole for itself by continuing to trade as it was without thought of restructuring? This is not a criticisn but simply, observations based on translated press reports at the time.HJ,
maybe the Marklin employees could contract a well known dynamic duo known to be practicing as consultants these days. Their experience in dealing with past employees was well known in the final few months, as staff basically gave their souls to keep the company gates open (alas to no avail).
Tim Brien said:It was mentioned that he leaves by his own will, what ever that means.
HJ, quits, resigns or 'is shown the door'?
think global Pius
OK here just a snippet
Handelsblatt 2008/08/11 said:
GÖPPINGEN. Man mag ihn nicht, den Märklin-Chef. Wie ein ungebetener Gast steht Axel Dietz vor seinen Mitarbeitern bei der Betriebsversammlung in Göppingen. Die Stimmung ist mies, gerade hat Dietz neue Einsparungen beim Personal verkündet. Da kommt die Sprache auf ihn selbst. Warum der Chef die Mitarbeiter eigentlich nicht grüße, wenn er sich denn mal blicken lasse, will jemand wissen. Die Antwort spricht Bände. „Ich grüße doch“, sagt Dietz. „Aber die Leute schauen ja alle weg, wenn ich komme.“Die achtzehn Monate, die Axel Dietz an der Spitze von Märklin stand, zählen zu den traurigsten Kapiteln in der zuletzt ohnehin schon trüben Geschichte des schwäbischen Modellbahnbauers. Mitarbeiter beschreiben Dietz als Choleriker, der mit seiner Harley Davidson auf den Firmenhof fährt. Märklin-Händler werfen ihm vor, er wisse nicht, ob bei einer Lok die Räder oben oder unten angebracht sind, und würde bei Sitzungen, die auf zwei Tage angesetzt sind, schon nach wenigen Stunden wieder verschwinden.
Dietz ficht das nicht an. „Wer bin ich denn? Bin ich der Protokollführer?“ Der Geschäftsführer ist hörbar ungehalten. Von einer Raststätte zwischen Zürich und Bern aus beschwert sich Dietz per Handy über ungerechte Berichterstattung. Die Episode von der Betriebsversammlung streitet er ab, er habe bei Märklin gute Arbeit geleistet. Der Umsatz steigt, die Firma kommt voran.
HJ translates said:
He isn't liked, the boss at Märklin. Axel Dietz stands in front of the employees' assembly in Göppingen like the proverbial uninvited guest. The mood is bad, just a moment ago Dietz announced new cost cuts for the employees. Now the topic turns to his persona. Someone wants to know why the boss doesn't say hello to people when he shows up on the odd occasion. The reply tells the story. "I certainly say hello" mentions Dietz "but everyone averts their eyes, when they see me coming."The eighteen months with Axel Dietz at the head of Märklin are among the saddest chapters in the lately dreary history of the Swabian model railroad producer. Fellow employees describe Dietz as a choleric personality who rides his Harley Davidson to work. Märklin dealers accuse him of not knowing if the wheels on an engine are at the bottom or the top and of disappearing after a scant few hours from meetings which are to run for two days.
Dietz doesn’t challenge that. “Who am I? The secretary who keeps the minutes?” The CEO is clearly indignant. Dietz, during the cell phone conversation from a rest stop somewhere between Bern and Zurich, complains about unfair reporting. He denies the episode from the employees’ assembly, he did a good job at Märklin. Business volume is on the increase, the company is moving forward.
…