June 20, 2025, 8:41 am | Read time: 4 minutes
In the 1950s, the radio device “Heinzelmann” marked the beginning of Grundig’s rise to become a German company of global renown. But what is the status of Grundig today?
From Fürth, company founder Max Grundig creates a veritable radio device empire in just a few years. It is the era of the German economic miracle. People in Germany are once again indulging in the post-war period, especially with radios and televisions. However, Grundig also produces other electronic devices. The video recorder will be the company’s downfall.
Overview
It All Begins in 1930
The story of Grundig begins in 1930 in Max Grundig’s small radio shop at the former Sternstraße 2 in Fürth. Since radio technology is still in its infancy, technical defects occur repeatedly. Spare parts are in high demand. The company specializes in the production of transformers, as this component frequently fails in the early days of radio.
Like many others at the time, Grundig profits from German war activities. The company supports the military with radio technology devices. The production is primarily carried out by forced laborers. A dark chapter in the company’s history.
Immediately after the end of World War II, Grundig launches the kit for the tube radio model “Heinzelmann”. With this radio, the brand’s star begins to shine.
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A “Heinzelmann” Makes Grundig Famous
In 1949, the 100,000th “Heinzelmann” radio is sold. Grundig holds a 20 percent market share in total radio sales, making it the market leader. By now, 800 people work for the company, producing 12,000 radio devices monthly.
In 1951, Grundig even has its own factory TV channel that regularly broadcasts a program. Historical footnote: German television, ARD, begins broadcasting only on Nov. 1, 1954.
Speaking of television: The manufacturer is now also producing TV sets, although the market is limited due to the lack of a TV program. In 1954, there are only 100,000 registered televisions. But company founder Max Grundig believes in the new medium and serves a market that will soon grow rapidly.
In the 1950s and 1960s, Grundig also produces other electronic items, such as dictation machines, tape recorders, cassette players, and car radios. The company is one of the first manufacturers to offer a color television and rises to become the largest TV set producer in Germany in the 1960s.
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Grundig at Its Peak
In the early 1970s, portable radios and small portable TV sets follow. By the late 1970s, the company is at its peak. Nearly 39,000 people work for the Fürth-based company. Grundig’s devices generate more than 1.5 billion euros in revenue.
However, by this time, the first dark clouds are appearing on the company’s horizon. Competition from the Far East, especially Japan, is giving the traditional German company a hard time. Although Max Grundig has always had an excellent sense for trends throughout his entrepreneurial life, he seems to have missed the mark with video recorders.
The company recognizes the business potential in video technology far too late, and it is not alone. Other German brands like Nordmende and Telefunken also see only the tail lights of the train heading to Asia.
As is often the case with technical innovations, a battle ensues over the best standard in video. Here, Grundig even attempts to establish its own standard with the Video 2000 system. The competition from Asia opts for VHS and wins.
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The Quiet Farewell of Grundig
The company begins a steep decline in the early 1980s. In 1984, the Dutch company Philips takes over the management of Grundig AG. The company and the name Grundig continue to exist for some time, but the luster of the economic miracle era has faded.
In 2003, Grundig files for bankruptcy. Various ownership changes follow. Today, the brand belongs to the Beko Group, a Turkish manufacturer of household appliances.
Grundig has had to leave its Franconian home. The current company headquarters is in Eschborn, Hesse. There, nearly 200 employees still produce TV sets, radios, Bluetooth speakers, and other technical devices. However, the world no longer takes notice.