Case | HBS Case Collection | March 1998 (Revised November 2004)

FAG Kugelfischer-A German Restructuring

by Stuart C. Gilson

Abstract

A large German manufacturer of ball bearings and precision machinery experiences severe financial difficulty brought on by poor management practices, an ill-conceived acquisition of a former East German ball-bearings company, and an industry recession. The company hires a German professional turnaround manager who in past turnarounds of German firms has engaged in "U.S.-style" corporate downsizing practices including massive layoffs and asset sales.

Keywords: Accounting; Acquisition; Restructuring; Economic Slowdown and Stagnation; Machinery and Machining; Policy; Resignation and Termination; Management Practices and Processes; Performance Evaluation; Business and Shareholder Relations; Business and Stakeholder Relations; Europe; Germany; United States;

Citation:

Gilson, Stuart C. "FAG Kugelfischer-A German Restructuring." Harvard Business School Case 298-046, March 1998. (Revised November 2004.)