The End is near.....TAG absorbs Zenith

Well, its happened - a real watch company has been absorbed by one that has to lie about where it gets its movements.

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TAG Heuer, Zenith and Cortech (watch case manufacturer) have merged!

In December 2009, the watch making companies TAG Heuer International and Zenith have amalgamated to give rise to LVMH Swiss Manufactures SA, located in Chaux-de-Fonds. The new company is chaired by Jean-Christophe Babin (CEO of TAG Heuer), assisted by Jean-Frederic Dufour (CEO of Zenith) and by Jean-Claude Femiot (CEO of watch case producer Cortech in Comol). “The operation is primarily of legal, financial, administrative and tax related character. Each brand keeps its own operational management”, says Jean-Christophe Babin.

At this point it is not clear whether the also will favorise “industrial synergies”. New machines to manufacture platinum for example would need to be adapted to the small volumes production of Zenith and to the high volumes of TAG Heuer. However, the three entities concerned already have strong relations. The main customer of cases manufactured by TAG Heuer is Zenith which also sourced from Cortech, while some of the Grand Carrera models from TAG Heuer are equipped with the Zenith El Primero movement. The merger will accelerate the industrial integration mainly at Zenith, an authentic manufacture, rather than at TAG Heuer (280 collaborators) which mainly buys its movements from specialised suppliers.

The regrouping will not have consequences on the manpower of the companies, reassures Jean-Christophe Babin. It is true that Zenith (150 employees) and Cortech (90) already reduced their workforces in 2009. Hublot, directed by Jean-Claude Biver, is at this point (still) is not concerned with the regrouping strategy of LVMH.

Source: Chronometrophilia Switzerland

Oh!! The Humanity!!

"amalgamated" is such an ugly ten-dollar word for "merged".......

Does this make Babin "The Amalgamator?"

Increased movement sales for Seiko?

Man, that's a huge move.

Now that can claim those Zenith movements are in-house.

Tag, you're it!

WatchNoob wrote:

Increased movement sales for Seiko?

boscoe wrote:

Now that can claim those Zenith movements are in-house.

Tag, you're it!

Interesting that the news release is of an event that happened a few months ago but it came out only after the XXXX hit the fan about TAG lying about their Seiko-clone.

PURITY of a brand seems almost non-existent today.

Other than Rolex, what companies are who they started out being?

I wonder if Zenith along with the other brands will be able
to still maintain their own identity within this group !
Hopefully even though they are all together they can
still be somewhat independent at the same time !

foghorn wrote:

Oh!! The Humanity!!

On the other hand, maybe TAG is keeping Zenith afloat.

Maybe if more of you bought Zenith it would survive on its own.

Everybody cares about these upper brands but has anybody bought one lately?

Didnt think so.

Going to end up with a hand full of "super watch groups", Rolex and Seiko!!! forgot one, invicta!!!

. . . . the Swatch Group actions have created some far reaching actions by some well known companies. Some major players are protecting themselves as far as the availibility of movements is concerned. So does this indicate that TAG;s will get re-badged Zenith movements, and what will that do to the price of a TAG???

Invicta will probably absorb Rolex.

cali kid wrote:

Going to end up with a hand full of "super watch groups", Rolex and Seiko!!! forgot one, invicta!!!

Wisconsin Proud wrote:

On the other hand, maybe TAG is keeping Zenith afloat.

Maybe if more of you bought Zenith it would survive on its own.

Everybody cares about these upper brands but has anybody bought one lately?

Didnt think so.

I don't want to come off as a smart ass but I really don't care if Zenith or Tag make it.

hee hee. me either. . .

merichar wrote:

Wisconsin Proud wrote:

On the other hand, maybe TAG is keeping Zenith afloat.

Maybe if more of you bought Zenith it would survive on its own.

Everybody cares about these upper brands but has anybody bought one lately?

Didnt think so.

I don't want to come off as a smart ass but I really don't care if Zenith or Tag make it.

merichar wrote:

Wisconsin Proud wrote:

On the other hand, maybe TAG is keeping Zenith afloat.

Maybe if more of you bought Zenith it would survive on its own.

Everybody cares about these upper brands but has anybody bought one lately?

Didnt think so.

I don't want to come off as a smart ass but I really don't care if Zenith or Tag make it.

I have to agree there Mark. But Invicta on the other hand...well let's just say....THEY FREAKIN RULE!!! Sorry if I'm being Imperious!

Anomaly wrote:

PURITY of a brand seems almost non-existent today.

Other than Rolex, what companies are who they started out being?

Swatch...

For the record, the "big lie" concerned one movement ...

Is this what they call brand bashing?

AO wrote:

For the record, the "big lie" concerned one movement ...

Is this what they call brand bashing?

I was waiting for this... I'm surprised it took you so long Jerry.

AO wrote:

For the record, the "big lie" concerned one movement ...

Is this what they call brand bashing?

No. Truth. Sometimes it hurts.

BTW, there was no phrase 'big lie' in the post. When you use " marks it helps to get it right. The actual quote is "Well, its happened - a real watch company has been absorbed by one that has to lie about where it gets its movements."

Anomaly wrote:

PURITY of a brand seems almost non-existent today.

Other than Rolex, what companies are who they started out being?

Seiko, Casio, Bedat. A. Lange spring to mind for openers.

boscoe wrote:

Anomaly wrote:

PURITY of a brand seems almost non-existent today.

Other than Rolex, what companies are who they started out being?

Seiko, Casio, Bedat. A. Lange spring to mind for openers.

Citizen too, even if they absorbed Bulova and Accutron.

I've stated my displeasure with this thread, as have those who don't care for TAG or Zenith, which is fine.

But let's not make this personal.

The "big lie" was not a reference to your comment, Robert.

AO wrote:

I've stated my displeasure with this thread, as have those who don't care for TAG or Zenith, which is fine.

But let's not make this personal.

The "big lie" was not a reference to your comment, Robert.

I know nothing of the "big lie" referred to and this is not necesarily the thread to hash that out in. I should clarify that I appreciate the diversity of watch companies in general. However, I can't really think of any of them that make me warm and fuzzy enough to care wether they are around or not. My comments are not a reflection of any bad feelings for either company, just indifference in general.

randyswagon wrote:

. . .. So does this indicate that TAG;s will get re-badged Zenith movements, and what will that do to the price of a TAG???

TAG has used Zenith movements for quite some time in the Link Cal 36. They also use it in the Grand carrera line.

And, yes, those watches do cost quite a bit more.