Loewe has applied for bankruptcy protection in Germany. Over the weekend, Loewe’s CEO made statements to the media explaining that Loewe is aiming to move production to Asia, more specifically China, in order to save the company.
Loewe: Made in China
For 90 years Loewe has assembled its TVs and sound systems in Germany but recently the strategy started to prove ineffective, and Loewe is struggling with massive deficits and empty coffers. Loewe is looking to Asia for a partner "that will deliver the major hardware components - processors, circuit boards and screens."
- "We are no longer an appliance manufacturer - I am trying to open the company's eyes to that," says Loewe CEO Matthias Harsch to Der Spiegel
Loewe is looking for a Chinese partner for its struggling business
Loewe is in talks with TCL, Sichuan Changhong, Skyworth and Hisense. All four are Chinese companies that have seen rapid growth in the last few years, soon matching the established TV makers. Loewe hopes to use a Chinese company as a strategic partner for production and components and instead focus on its own strengths such as design, media functionality and more.
It is worth noting that the Chinese companies are primarily TV makers and not display panel makers. Whether Loewe aims to start using Chinese-built LCD panels in the future or continue with its current partners remains unanswered. Loewe primarily uses LCD panels from Samsung in its current TVs.
The CEO could not rule out that job cuts will follow the company’s restructuring. Loewe has three months to turn around the ship or they will be declared bankrupt.