DOCSLIB.ORG

Benq-Siemens Mobile in November 2006, Benq Corp. (Benq

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Benq-Siemens Mobile in November 2006, Benq Corp. (Benq BenQ-Siemens Mobile In November 2006, BenQ Corp. (BenQ) announced that it would cut 400 jobs at its Shanghai, China plant. This unit had belonged to the mobile devices division of Siemens AG (Siemens), a major German engineering and electronics company, up until October 2005, when it, along with plants in Germany, Brazil, etc., and R&D labs in Germany, Denmark, and China were sold to BenQ. After acquiring the division, BenQ renamed it BenQ Mobile GmbH (BenQ Mobile). BenQ Mobile had, in September 2006, filed for bankruptcy protection after a year of heavy losses. BenQ was a prominent Taiwanese electronics and computer peripherals manufacturer. As of 2005, it was also the sixth largest manufacturer of mobile phones in the world. Though it largely acted as an OEM for global brands like Nokia, Motorola, etc., it also sold mobile phones under the BenQ brand. The company had big plans to expand its operations and build its brand all over the world. In October 2005, it acquired the loss-making mobile devices division of Siemens. With the acquisition, BenQ planned to sell co-branded mobile phones (BenQ-Siemens) in addition to the BenQ and Siemens brands. Siemens started manufacturing mobile phones in the late 1990s. Despite producing high quality phones, it was unable to make a mark in the highly competitive industry, and the business began incurring huge losses. In 2005, after yet another year of losses in the mobile phones business, Siemens decided to exit the business. However, securing the future of its employees was high on its list of priorities. Therefore, it looked to sell the division to a company that would assure the continuity of the division's operations in Germany In June 2005, BenQ acquired the entire mobile division which comprised the company's manufacturing units in Germany, Brazil, and China. However, the acquisition brought a range of problems for BenQ. The company failed to turn around the bleeding German unit, which incurred losses of € 840 million within a year and threatened to destabilize the parent company. The loss was attributed to BenQ's lack of management and marketing experience as well as to the tough German labor laws that prevented BenQ from laying off people. Consequently in September 2006, BenQ Mobile filed for insolvency. This affected around 3,000 German workers who were abruptly asked to leave without any compensation. The labor issue attracted widespread criticism against BenQ and Siemens, with German labor leaders and politicians alleging that BenQ's acquisition of the Siemens' mobile division was a carefully scripted plot by the two companies to avoid compensation payments to the workers, which ran into millions of euros. Acquisition In April 2005, Siemens' mobile devices division reported worldwide sales of 9.3 million units and US$ 179 million in losses for the first quarter of 2005. With a turnaround seeming impossible to achieve, Klaus Kleinfeld (Kleinfeld), the CEO of Siemens, announced that Siemens was looking to sell the mobile devices division. He also stated that Siemens might retain a minority stake in the division. However in June 2005, BenQ announced that it had acquired the whole stake in Siemens' mobile devices business. It renamed the division BenQ Mobile GmbH (BenQ Mobile). The acquisition, effective from October 1, 2005, created one of the world's largest mobile handset makers. BenQ Chairman & CEO, K.Y. Lee (Lee) said, "With the acquisition of Siemens's mobile phones business, we are rapidly approaching our goal to become one of the world's leading players in the mobile phone industry. Post-Acquisition In the months following the acquisition, several problems emerged. In early 2006, BenQ Mobile undertook a series of cost-cutting measures; it closed down a design center in Ulm, Germany, sold the research and development facility in Aalborg, Denmark to Motorola and brought all research and development work to Munich. The company estimated that these measures would reduce expenditures considerably and it would be able to make a profit in the fourth quarter of 2006. The first BenQ Siemens brand mobile phones were unveiled in January 2006. Aftermath The bankruptcy of BenQ Mobile and the consequent loss of about 3,000 jobs created a furor in Germany. Both Siemens and BenQ were held responsible for the debacle. The German public felt that Siemens was guilty of creating false hopes that the loss making unit would be saved. "From an economic point of view, Kleinfeld perhaps acted in the correct manner, but his reputation as someone who can turn around companies in a tough but always fair way has been lost," said an editorial in Financial Times Deutschland. There were also reports suggesting that Siemens sold the division because closing it down would have tarnished its reputation. .
Load more

Recommended publications
  • Deloitte Football Money League 2009
    Lost in translation Football Money League Sports Business Group February 2009 The unique nature of the football industry will enable major clubs to be relatively resistant to the economic downturn Contents 2 Welcome 5 How we did it 6 Ups and downs 7 The Deloitte Football Money League 28 Tackling the crunch Edited by Dan Jones Authors Austin Houlihan, Rich Parkes, Martyn Hawkins, Simon Hearne, Amelia Ashton-Jones and Caspar Schmick Sports Business Group at Deloitte PO Box 500, 2 Hardman Street, Manchester, UK M60 2AT Telephone: +44 (0)161 455 8787 Fax: +44 (0)161 455 6013 E-mail: [email protected] www.deloitte.co.uk/sportsbusinessgroup February 2009 Football Money League 2009 Sports Business Group 1 Welcome Welcome to the twelfth edition of the Deloitte Football Chart 1: Total revenues 2007/08 (€m) Money League, in which we profile the largest clubs in the world’s most popular sport. Being released less than 400 nine months after the end of the 2007/08 season, and 8 as soon as all the clubs’ revenue figures are available to . 350 5 6 us, the Money League is the most contemporary and 3 8 . reliable analysis of clubs’ relative financial performance. 4 2 300 8 . 3 8 3 . 0 5 3 There are a number of methods that can be used to 9 2 9 . 4 . 250 8 e l determine the size of a club including measures of 4 r 6 l i 6 u 2 e 2 p s s r fanbase, attendance, broadcast audience, or on-pitch t a o d e M H t 9 i V success.
    [Show full text]
  • Case No COMP/M.3911 - BENQ / SIEMENS MOBILE
    EN Case No COMP/M.3911 - BENQ / SIEMENS MOBILE Only the English text is available and authentic. REGULATION (EC) No 139/2004 MERGER PROCEDURE Article 6(1)(b) NON-OPPOSITION Date: 07/09/2005 In electronic form on the EUR-Lex website under document number 32005M3911 Office for Official Publications of the European Communities L-2985 Luxembourg COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 07-IX-2005 SG-Greffe(2005) D/204914 PUBLIC VERSION MERGER PROCEDURE ARTICLE 6(1)(b) DECISION To the notifying party Dear Sir/Madam, Subject: Case No COMP/M.3911 –BenQ / Siemens Mobile Notification of 04/08/05 pursuant to Article 4 of Council Regulation No 139/20041 1. On the 4 August 2005, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 by which the undertaking BenQ Corporation (“BenQ”, Taiwan, Republic of China) acquires, within the meaning of 3(1)(b) of the Council Regulation, control of the mobile device business of Siemens AG (“Siemens device business”, Germany) by way of purchase of assets, and in respect of Germany and the UK, also by purchase of shares. I. THE PARTIES 2. BenQ is active in the communication and multimedia device business. Within this business it is active in the areas of digital displays, scanners and keyboards, mobile telephones (including communication devices like GSM mobile phones), digital projectors, storage devices, wireless technologies and electronic components. In the area of mobile telephones, BenQ sells its products mainly to other producers of telephones but also to a small extend under its own brand label to retailers and network operators.
    [Show full text]
  • 2005 Annual Report(PDF/2823KB)
    Information updated to 2006.04.20 48 2005 Annual Report Key figures Unit: NT$ million Year 2001 2002 2003 2004 2005 Sales Revenue 58,820 93,229 108,699 147,770 124,407 Net Income 3,031 7,400 7,500 7,619 (5,226) Net Margin (%) 5 8 7 5 (4) Retroactively Adjusted Earnings Per Share (NT$/share) 1.32 3.08 3.03 3.10 (2.12) Net Asset Value 28,141 41,278 45,462 49,078 44,431 Note: All financials are non-consolidated figures (Taiwan parent company level) 48 2005 Annual Report Message To Our Shareholders Our Shareholders To Message Dear Esteemed BenQ Shareholders, BenQ announced in June 2005 it will acquire Siemens AG’s mobile handset business (Siemens MD) in an acquisition that successfully propelled BenQ onto the global stage as a renowned brand. Following the closing of the acquisition, we began our first step in Q4 of 2005 when the Company incurred a net loss of 5.2 billion NT$ in 2005, translating to a loss of 2.12 NT$ per share on revenue of NT$ 162.3 billion on consolidated basis. Since fourth quarter 2005, we have worked seamlessly with our Germany-based co-workers and re-enforced managerial resources in areas where BenQ has a strong comparative advantage. In a truly complementary merger of mobile handset assets without breaking our stride, we introduced twelve breathtaking new handsets in Q1 of 2006. Since October, the Company has undertaken restructuring initiatives to cut costs, to accelerate time-to-market for new products, and to restore customer confidence.
    [Show full text]
  • Mobile Phone Manufacturing in China
    JOURNAL OF CONTEMPORARY ASIA, 2016 VOL. 46, NO. 2, 222–246 http://dx.doi.org/10.1080/00472336.2015.1102314 Globalization and Divergent Paths of Industrial Development: Mobile Phone Manufacturing in China, Japan, South Korea and Taiwan Joonkoo Lee a, Jong-Cheol Kimb and Jinho Limc aSchool of Business, Hanyang University, Seoul, South Korea; bAsia Center, Seoul National University, Seoul, South Korea; cDepartment of Political Science and International Relations, Korea University, Seoul, South Korea ABSTRACT KEYWORDS Globalisation has challenged the way industrial development takes Globalisation; industrial place. Fragmented and decentralised global production and the development; global value rapid growth of consumer markets in emerging economies chains; development path; demand a more sophisticated framework to analyse development East Asia; mobile phone manufacturing paths than does the dichotomy of export orientation and import substitution. This article proposes a typology based on (a) specia- lisation in the global value chain and (b) market orientation to distinguish different development trajectories and then applies the typology to mobile phone manufacturing in four East Asian countries. This study finds that globalisation does not lead to the convergence of development paths, but promotes cross-national divergence depending on countries’ positions in the value chain and market niches. Both Korea and Taiwan emerge as key players in global markets, yet in different parts of the global value chain. Their common orientation toward global markets strikingly con- trasts the inability of Japanese firms to translate their domestic success overseas. Finally, Chinese firms concurrently engage in different development paths, making the country’s multi-path approach unique. The implications of these findings are discussed in terms of industrial development in East Asia in an era of globalisation.
    [Show full text]
  • Just Tomorrow CONTENT 2 PHILOSOPHY 3
    just tomorrow CONTENT 2 PHILOSOPHY 3 The human idea naturally is an infinite resource but not every idea is a successful one. The successful idea pri- marily features easy implementation and a convenient change for all concerned persons. So much for that. Let´s talk about us. The idea and its implementation are our trade, to create and to satisfy needs our arts. Conventional perception we leave to others, you may expect surprises from us – in every way. We are profes- sional manipulators creating advertising. PORTFOLIO 4 You can expect a lot from us, but not everything. We are always seeking for perfection and therefore we fo- cus ourselves on these disciplines, where we verifiable know the tricks of the trade. Within our portfolio we act as experts in a structured and efficient way. Our service is always adequate to the respective needs of our clients. And for sure you can always expect a high degree of efficiency. DESIGN 5 An excellent design is the result of a successful balanc- ing act between function and esthetic. For this reason and for the benefit of our clients we don’t play brilliantly and lose but rather we design graphically, figuratively and acoustically as much target- oriented as virtuoso. PUBLISHING 6 In times of ambush-, ambient- and viral-marketing, in a world where content management and customer relati- onship management systems are driving the IT specia- lists, sometimes it might be forgotten that in particular the conventional print product is still able to boost your public appearance. Because of our longtime experience layout and text are still part of our basic portfolio and concerning this you may expect exclusively best of class products from us.
    [Show full text]
  • 2004 Annual Report(PDF/4464KB)
    1 Message To Our Shareholders Message To Our Shareholders Dear Esteemed BenQ Shareholder: 2004 for BenQ was a year filled with challenges. The first half saw businesses firing on all cylinders; the second half, however, saw momentum slowed by price war on LCD monitor and customer rotation on handset. The company turned in NT$165 billion in revenue on a consolidated basis, representing a growth of 37% year-over-year; we closed the year with NT$7.7 billion in net income. We're pleased to report that branded revenue went from 29% of total revenue in 2003 to 37% in 2004. The company posted strong results across many product lines; BenQ-made LCD monitors scored solid market share gains; we became the world's top-three maker of LCD monitor in the second half of the year; furthermore, BenQ-branded monitors went from No. 11 in the world to No. 5. The company was able to execute market share wins as BenQ leveraged greater economies of scale, stronger procurement strengths, added ability to execute a world-class product portfolio, and our proprietary SenseyeTM Technology, a trademarked image-enhancing innovation. BenQ projector was another bright spot. In 2004 BenQ recorded superlative, profitable growth as the company established itself as a leading designer and maker of DLP projectors. The company enjoyed success working with its dealers in a win-win formulation. We set a new high on unit shipment; by year end, BenQ was in the global top-five. Our storage business also had a good year. BenQ was the first company in the world to introduce 16x speed DVD +/-RW drives in a collaborative effort with Philips.
    [Show full text]
  • EGF Factsheet
    EGF Fact sheet Reference: EGF/2007/003 Case: BenQ Member State: Germany Sector: Mobile phone manufacturing Total budget planned : € 25 532 300 Amount requested from EGF: € 12 766 150 Submitted to European Commission: 27 June 2007 Intervention Criterion: Article 2(a) Regulation (EC) No 1927/2006 Period of reference: 22 December 2006 to 21 April 2007 Redundancies during period of reference: 3303 in total, from two BenQ subsidiaries in three locations: München (1342 redundancies), Kamp-Lintfort (1719 redundancies) and Bocholt (242 redundancies) Active employment measures: Include short term allowances, mobility allowances, training measures, placement and counselling Background/globalisation context: • One year after taking over from Siemens (in October 2005) BenQ (a Taiwanese company) withdrew all financial support for its German subsidiaries: BenQ Mobile GmbH&Co OHG and Inservio GmbH, causing insolvency in both subsidiaries. On the other hand, it is expanding operations in the Asia-Pacific region where BenQ mobile phone has achieved a 31% year-to-year growth rate1. • Only one of BenQ's five manufacturing sites is in the EU (Brno, Czech Republic). The other four are in China (¯2), Taiwan and Mexico. The total percentage of BenQ employees based in Europe dropped from 31% to 24% between 2003-2006 while over the same period in China, it rose from 15% to 18%.2 • General trend among mobile phone manufacturers toward a delocalisation of their production to Asia, primarily China. The main reasons being comparative cost advantages, the proximity of technology partners and a strong increase in local demand. • In 2001, China produced 20% of the world's mobile phones (80 million).
    [Show full text]
  • E71 105X140.Qxd 04.08.2006 16:37 Uhr Seite 1
    Einzelseite E71 105x140.qxd 04.08.2006 16:37 Uhr Seite 1 E71 cyan magenta yellow black LIEBREICH, Medienproduktion 105x140 mm left page (0) of E71 Obsidian, SUG, en, A31008-H3340-A1-2-7619 (18.08.2006, 09:41) Template: Minion, DTC_140x105 mm, Version 1.6;VAR Language: en; VAR issue date: 060630 date: issue VAR en; Language: DTC_140x105 mm, Version 1.6;VAR Minion, Template: 0 Table of Contents Table of Phone overview .......................................... 1 Display .......................................................16 Contents Safety precautions ..................................... 2 Vibration ...................................................16 Getting started ........................................... 4 Connectivity ..............................................16 Inserting battery/SIM Card/ Shortcuts ....................................................17 MicroSD card .............................................. 4 Divert .........................................................17 Charging the battery .................................. 5 Call settings ...............................................17 Entering the PIN ........................................ 6 Phone settings ...........................................17 Emergency number (SOS) ........................ 6 Clock ..........................................................17 General instructions .................................. 6 Security ......................................................17 PIN, PUK, Phonecode ............................... 8 Network .....................................................17
    [Show full text]
  • Shareholder Proposals
    Shareholder Proposals Shareholder Proposals for the Annual Shareholders’ Meeting of Siemens AG on January 25, 2007 www.siemens.com Latest update: January 17, 2007 Below you find all shareholder proposals relating to items on the Agenda for the Annual Shareholders’ Meeting on January 25, 2007, together with Management’s discussion thereon. This version of the Shareholder Proposals, prepared for the convenience of English- speaking readers, is a translation of the German original. For the purposes of inter- pretation the German text shall be authoritative and final. Hans-Walter Grünewälder, Wuppertal, has submitted the following shareholder proposals: With regard to Agenda Item 4, “To ratify the acts of the Managing Board” and Agenda Item 5 “To ratify the acts of the Supervisory Board”: Hans-Walter Grünewälder Brahmsstrasse 27 42289 Wuppertal 0202 62 17 57 Siemens Aktiengesellschaft Corporate Finance Treasury Investor Relations (CF T 3) Wittelsbacherplatz 2 80333 Munich By telefax 089 636 32830 December 14, 2006 Counter-proposals to be voted on at the Annual Shareholders’ Meeting of Siemens AG on January 25, 2007 Ladies and gentlemen: At the Annual Shareholders’ Meeting of Siemens AG to be held on January 25, 2007, I will present the following counter-proposals and request the shareholders present at the meeting to support my proposals: With regard to Agenda Item 4 “To ratify the acts of the Managing Board” and Agenda Item 5 “To ratify the acts of the Supervisory Board” Be it resolved that the acts of the two Boards are not ratified. Supporting statement: The Compensation Report of the Supervisory Board as published in the Company’s Annual Report for the fiscal year from October 1, 2005 to September 30, 2006 reads as follows: “The remuneration of the members of the Supervisory Board was determined at the Annual Shareholders’ Meeting through shareholder approval of a proposal of the Managing and Supervisory Boards.
    [Show full text]
  • Biography: Dr. Jochen Eickholt
    Dr. Jochen Eickholt Siemens Energy Managing Director and designated Executive Board Member for Generation and Oil & Gas Born on January 26, 1962 in Lage, Germany LinkedIn: Jochen Eickholt Twitter: @JochenEickholt Education Studied electrical engineering at the RWTH Aachen University in Aachen, Germany and at the Imperial College of Science, Technology and Medicine in London, UK Doctorate at the Fraunhofer Institute for Production Technology (IPT) in Aachen, Germany Professional history 1989 Fraunhofer Institute for Production Technology (IPT), Aachen, Germany – Project Leader on Industry Consulting Projects 1994 Leopold Kostal GmbH, Lüdenscheid, Germany – Head of Corporate Planning – Technical Director and Plant Manager at Kostal UK Ltd. – Vice President of Strategic Procurement 1997 Desag AG, Grünenplan, Germany – General Manager of Display Glass Business Unit 1999 Siemens AG, Trutnov, Czech Republic – Chief Executive Officer of Siemens Elektropřístroje s.r.o. 2000 Siemens ICM CP, Munich, Germany – Senior Vice President of Supply Chain Management and Sales for the business area Cordless Products 2004 Siemens COM, Munich, Germany – Senior Vice President of Supply Chain Management, Development and Procurement for the Managing Board area Devices 2005 BenQ Mobile International, Munich, Germany – Member of the Board 2006 Siemens Home and Office Communications GmbH, Munich, Germany – Chief Executive Officer 2009 Siemens AG, Industry Sector, Brunswick and Berlin, Germany – Chief Executive Officer of Rail Automation Business Unit 2011 Siemens
    [Show full text]
  • 2006 Annual Report(PDF/1404KB)
    Information updated to 2007.04.27 Message To Our Shareholders 2006 Annual Report Message to Our Shareholders Dear Esteemed BenQ Shareholders In 2006, BenQ went through its most challenging year since the company was established. BenQ faced enormous losses stemming from the acquisition of Siemens mobile device business and from discontinuing investment in the German mobile phone subsidiary. In 2006, the Company’s core business recorded sales of NT$198.5 billion, with a er-tax loss at NT$27.6 billion. A er this acquisition, the management team rea rmed its commitment to swi ly reorganize, streamline, and adjust operations to return to pro tability. e Mobile Communications Business Group continued to deal with acquisition-related matters while cutting operating expenses. We have been clearing the inventory, strengthening the con dence of retailers, and rebuilding relationships with crucial European partners with high-growth, pro table handsets. A er negotiations, post-sale service arrangements are close to nalization. e related mobile phone warranty costs were recognized in 2006. Additionally, the Mobile Communications Business Group will make e cient use of resources by consolidating manufacturing in Shanghai. The Company’s other product lines performed well in 2006. BenQ’s LCD displays were the first in the industry to receive Microsoft Windows Vista Certi cation by leveraging our advanced display technology and vertical integration of global resources. BenQ’s outstanding performance in Europe has solidi ed our place as a top- ve global manufacturer. In the projector industry, we outpaced rivals to secure third place worldwide, and rst place in Europe with sophisticated, cutting-edge products and expanded channels.
    [Show full text]
  • Curriculum Vitae Markus Förstel Schleissheimer Strasse 280, 80809 München Tel.: +49 (0)152 04534915 [email protected]
    Curriculum Vitae Markus Förstel Schleissheimer Strasse 280, 80809 München Tel.: +49 (0)152 04534915 [email protected] http://www.qbert.de PROFILE Experienced real-time embedded software engineer with 10 years of avionics, telecommunication and automotive industry experience. Proficient in writing software applications as diverse as safety critical (DO- 178B) avionics software, real time operating systems, device drivers for TETRA base stations, mobile phone handset software and Windows and Linux applications. Both professional and practitioner experience of several full product life cycles. Used to work to tight deadlines, whilst maintaining the highest quality in all aspects of my various responsibilities. SKILLS / KNOWLWDGE Languages: C/C++, Java, Assembler (PowerPC, Intel 80x68, Motorola 68000, 8051), ADA, UML, Scripting (Windows, UNIX & LINUX), Perl, Visual Basic Technologies: Real time software development, RTOS, Windows system programming (Microsoft Visual Studio), MFC, COM (Component Object Model), ATL (Advanced Template Library), Internet programming, UML, HTML, SNMP, SQL, DirectX, JavaME, JavaSE, MIDlets, SWT, CAN, MOST IDEs: Microsoft Visual Studio .NET, Eclipse, EclipseME Configuration Management: GIT, ClearCase for Windows and UNIX, CVS, PVCS, Serena Dimensions, Continuus Requirement Management: DOORS Debugger: Lauterbach TRACE32, VisionIce debugger, SoftIce Debugger Platforms: Windows, Linux, Android Networks: Ethernet, CAN, MOST Processes: RTCA/DO-178B, CMM Level 5 (Capability Maturity Model), V-Model, SCRUM CAREER HISTORY AES GmbH , Senior Software Engineer Jan13 – now AES (Aerospace Embedded Solutions GmbH) is a 50/50 Joint Venture between Sagem (SAFRAN Group) and MTU Aero Engines. Airbus requires a new SW release for the A400M extending the redundancy concept and providing fault detection for new avionics components. • Re-development of the Time Limited Dispatch functionality for the A400M airlifter according to Airbus specifications.
    [Show full text]