Story Highlight
– Stephen Forsey fired from Greubel Forsey watch company.
– CEO Michel Nydegger admitted past strategic mistakes.
– Production plans reversed, aiming for 500 watches annually.
– Average price cut from CHF 500,000 to CHF 250,000.
– Atelier equipped with advanced technology for limited production.
Full Story
The recent dismissal of Stephen Forsey from Greubel Forsey, the luxury watch brand he co-founded with Robert Greubel, has stirred interest in the horological community. This news emerged just two days after an insightful visit to the company’s atelier in La Chaux du Fonds, where dialogue regarding corporate decisions could have provided valuable context to the ongoing changes.
During a candid discussion with CEO Michel Nydegger, it became clear that the company is undertaking significant strategic revisions. Nydegger acknowledged the need to redress missteps made during the tenure of former CEO Antonio Calce. One of the most striking shifts in strategy involves decreasing production targets from a planned increase to approximately 260 watches in 2023, eventually aiming for 500—down from under 100 watches annually pre-pandemic.
Concurrently, the brand is poised to halve its average price point, reducing it from CHF 500,000 to CHF 250,000, which signals a potential pivot towards broader market engagement.
Rumours surrounding Forsey’s resignation from the board were already circulating during my tour, where I encountered speculation about his ongoing role alongside Greubel as the company’s sole shareholders.
The tour itself offered fascinating insights into Greubel Forsey’s dual-faceted headquarters. Situated on a hill overlooking La Chaux du Fonds, the facility integrates a 17th-century farmhouse with a striking modern glass structure. This latter part of the complex features advanced research and development areas, as well as state-of-the-art manufacturing facilities equipped with CNC machines and dedicated spaces for hand-finishing, housing just 130 employees, most of whom are skilled artisans rather than administrative staff.
It is somewhat unexpected for a company aiming to produce a limited number of high-value watches to possess such a vast array of modern machinery. Typically, businesses would rely on outsourcing for parts manufacturing due to the high costs associated with maintaining advanced production technologies.
While Nydegger explained that Greubel Forsey’s stringent quality standards justify their in-house production capabilities, it’s noteworthy that local suppliers also possess equal technological resources. For the company to achieve economic viability, focusing on research and development, assembly, and unique component creation may prove advantageous, rather than investing heavily in extensive machinery that may not be fully utilized.
As a long-time admirer of Greubel Forsey’s remarkable contributions to haute horlogerie, it is my hope that the company not only survives but thrives in the changing landscape of luxury watchmaking. Their innovative spirit, captured in their motto, “The Art of Invention,” suggests that they are poised to navigate the next two decades effectively. In my conversation with Nydegger during my visit, he outlined his vision for the future, which is likely to be crucial in determining the brand’s trajectory.
