why did Leica close their Canadian factory?

The Canadian Dollar is $.80 USD. Or to buy 1 Euro costs about $1.62

Canadian. Why didn't Leica keep the Canadian factory? It made money

for them, did it not?

Frank the exchange rate was unfavorable when the factory was closed.

Also just like in Germany they where no longer able to produce there and actually make a profit. My thoughts are Germany will be next, perhaps Portugal will be kept.

They didn't close it

 

They sold it

 

See :

http://elcan.phpinternet.com/www/

Yes it is still there, but making mostly military optics. Leitz got rid of it one way or another due to high costs. You see the government doesn`t care what things cost. It is just tax money and they run a deficate or just print more and inflate things a bit. You and I don`t get these options.

 

I must agree, Germany next. Germany has the highest labor rate in europe. It`s the way of the industrial world. Japan can not compete either. China is where it`s at. Sick! As Ross Perot said, you can`t compete with people who will work for food.

 

The US is finally waking up a little. They can no longer pay their bills on McDonald jobs and getting industry back is the only long term solution. It may be too late.

 

I hope this is not political ! I think it is just economics.

Re: Portugal /Germany closure.

 

The way I read the latest Leica press release, it looks like they'll be getting rid of the place in Portugal, and keep the one in Germany: they mentioned that the "Made in Germany" label would not be sacrificed - I guess they realise the fact that those three words mean more to Leicaphiles than anything else, however legitimate that may be.

 

WF

Short termism. Isn't it great.

 

Got to be glad that Leica isn't big enough to be of interest to the consultants.

 

Which one, or combination, of the following recipies would Andersen (to pick a name out of the blue) have recommended:

 

Get out of any market in which you are not No.1.

 

Stick to your core competencies.

 

Milk the declining industry for cash flow.

 

OR

 

Embark on a takeover spree if you have the money.

 

But as you do not: Expand into new markets through alliances.

 

Deliver organic growth and pay a dividend.

 

OR

 

Do brand extensions. "Would you Leica Cola", ringtones, "Leica Country" clothing range, pipe and slipper set.

 

OR

 

Sit on your hands and give the money back to the shareholders.

 

Decide nothing is worth fighting for, liquidate yourself, and hand the money back to the shareholders.

 

OR

 

Perhaps a little bit of eveything, all at once. Keep rotating the CEO. That way no one is responsible.

 

Heck, I stumbled on Leica's strategy.

Most of the Leics rangefinders (laser distance not camera) and many binoculars are made in the Portugal plant, and these items carry the useless, outdated, redundant M series bodies that you all love so much. Why kill of the goose that lays the golden egg?

Surely it cost Leica money when they stopped their Canadian production of M's and M lenses. Didn't these Canadian M's save Leica once from going under? And if they closed the Portugal factory, I assume Leica will lose more money. Do they want to stay in business or not? With Germany's high labour costs/Euro coupled with moving their production, I can't see Leica M cameras surviving. I never used to think about this too much but Leica keeps e-mailing me those crazy e-news bits. They're quite strange. On a lighter side, I've become quite happy with my CL. I realize it's nothing compared with the M3, M2 and M4, but compared with my other cameras, it's a jewel. ;*)

Leica hasn't paid a dividend in 7 years.

I bet the shareholders aren't holding their breath either. I guess they're holding out for the long haul, and the company is holding off until the shareholders kick the bucket. ;*)

<i> Which one, or combination, of the following recipies would Andersen (to pick a name out of the blue) have recommended: </i>

<br><br>

Probably none of them as AA is gone and AC is now Accenture :)

IMO, it was a shortsighted mistake of Leica management to sell off Ernst Leitz Canada Plant in Midland Ontario, they lost the advantage of proximity of a large market. GM, FORD, CHRYSLER, TOYOTA, HONDA

all have automobile plants in Ontario; in 2004, there were more car made in Ontario than in Detroit. Toyota is going to build another

plant in Ontario soon. Leica management is not as astude as Toyota's

and Leica management dug themselve into deep holes.

Another blunder made by the incompetant Leica management was to take way the distributor ship from Kindermann and gave it to another firm

but in less than a year, the firm bellied up, leaving Canada without

a Leica distributor. This just shows how incompetant Leica management

is.

Oh, that's how they got out of the Canadian market. It was because of a f-up. Thanks for sharing this.

Yeah, I know. One of my 2 best friends moved down to Sydney for good. He liked Kiwiland, but after visiting Sydney, he went straight back to Winnipeg, scrapped together 60 grand and left to never return again. I asked him why. He said because of the beaches, the friendly natives and Fosters. ;*)

Foster's

I've been told they don't drink Fosters in Australia. It's made for export, only.<br>

<img src="http://www.fotoschnack.de/postnuke/html/modules/pnCPG/coppermine/albums/userpics/10003/normal_IMG_0068.JPG">

Foster's offical ad from Canada. Yes, we have Foster's here. ;*)<div></div>

The last I heard, ELCAN was still making the elements for the 50 Noct, and shipping them to Germany for assembly.

 

After the facility was sold, many lenses that had been previously made at Midland still had their lens elements made there, and then shipped to Germany. The 50 Noctilux was the last one remaining.

Hey Peter, there are some smart Aussies living in Canada too.....being an Sydneysider I can say that ;-)

Frank and of cause Leica has jet another problem far to many people just hanging on to theyr old CL. By the way nobody I now here drinks Foster.Its Cacade!

Here is the photo to prove it. Sorry about the lousy quality and yes the Tasmanian tiger on the bottle has gone the same way Leica will.

I let you work it out

That was meant to be CASCADE

Well I guess times have changed...a few years back, any mention of Leica Canada brought on friendly (and not so friendly) debates about German versus Canadian lenses. I hope all of you finally agree that there ISN'T any difference.

 

Oh Canada!

Manfred, I actually just bought the CL about 3 months back. It all began when I went to a shop downtown to buy a new MP. I waited and waited. After at least 30 minutes went by, I left. The next day I went to another shop---"Nope, no Leicas. We don't carry them anymore." Then I went to yet another shop. All they had were some old clunkers---but they could order one in for me which would have taken at least 1 month. Finally I went to Beau's Photo. Again, no new Leicas, but they did have a pristine Leica CL with the 40mm lens all for $799 Canadian (plus tax). So there ya go. I try and do my bit to bail Leica out from their financial woes but no one wanted to sell me one. ;*)

Leica closed their Canadian factory because they discovered that every body & lense made there since the begining was flawed -- no Leica "glow" in any of the lenses; no Leica "heft" in any of the bodies. An all around disaster!