Tuesday, June 21, 2016

The Movement Manufacturer that Cried Wolf

ETA will stop supplying movements to third parties... maybe.
Which means, if things are good, the answer is yes, they will not supply third parties.  But when things are bad, or well, shitty?  The answer is maybe, no, they will supply third parties... if they can just get permission to do so by the very people they lobbied to get permission to, wait for it... not sell movements to third parties in the first place.

Confusing?  To get the original story, I refer you to the Reuters article -

Reuters Article

And now that you've read that, let's review the latest, less-than-spectacular results from the Federation -

Courtesy of the Federation of the Swiss Watch Industry

So, despite Hayek the younger insisting that all was well, it seems that clearly things are maybe not good, and are maybe not getting better in the foreseeable future.  And owing to this, and the fact that ETA have (one can only assume) more movements than they need for their brands at this point, wouldn't it be swell if Weco (the Swiss competition authority) could relax the enforcement of the agreement already set forth allowing ETA to phase out their supply to third parties?  

And yes, for those of you keeping score at home, that is a 180 degree turn around from ETA's previous stance.

Who would benefit from the temporary reversal of the ruling?  ETA.

Who would suffer?  At first it would be Sellita, Soprod and others.  Then once the ruling goes back into force, the brands would have to go back to Sellita or Soprod.  Except maybe those alternatives will not be around because the sudden flood of ETA movements wiped standing orders off the books.  

Let's hope the folks at Weco make the right decision,  you don't get "a little bit"pregnant.

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