First steps

Two working sessions took place at the Chateau de Vaumarcus - then the property of Ebauches SA - during which progress on the project as at 7th and 11th of March 1980 was discussed ',and the precise details are covered at a later stage; however it is first necessary to briefly return to one or two aspects of the initial phase. Reference should here be made to the initial concepts as laid down by Dr. Thomke on 9th of January 1980 in his outline for the Delirium Vulgaris project,for- as often happens- once any idea becomes a success story, the number of people who claim responsibility for a multitude of original ideas and practical developments tends to grow,whereas, they had in fact been totally responsible for one facet "only" of the practical realisation... in any event a substantial input in itself!

By this date, the overall aesthetic conception (Aussehen der Uhr) had already been determined, together with the main technical constraints. Furthermore, the indication "ohne Trimmer" under the heading "Funktionen" clearly illustrates that the decision not to fit any regulating device had already been taken at this stage,although the engineers could not have known whether the absence of this component - which had always formed an integral part of practically every electronic quartz movement - would result in a loss of precision.
A life span of five to ten years had been forecast,and -of fundamental importance -the traditional concept of assembly was to be discarded. Contrary to every single watch produced up until then, components were now to be located and attached to one side only of the interior plate (the words "Alles von einer Seite montierbar" and "Wegwerfkonzept" testify to this fact).Needless to say, those attending the meeting were invited to express their opinion with regard to this novel concept. Ernst Thomke's decision to proceed with production dates from March 1980. From thereon, extracts from Anton Bally's personal diary provide a very precise chronological development of the Swatch - then technically known as calibre ESA 500.121 (this numerical code was its sole identification).

To help portray the Swatch's development in its proper context, it may be useful to recall that in the years 1979 to 1981, the Asuag group,which included Ebauches SA, favoured one course of development,whilst General Watch Co SA (GWC) preferred another. As for the men who headed these subsidiaries - Renggli, Sommer, Beyner and Bruesch, to name but a few - they were naturally very different from one another,and as a result, considerable friction arose between Ebauches SA and GWC with regard to anything even remotely related to the finished product.

In the middle of what was clearly a somewhat complex situation was Dr. Thomke, well-equipped with the marketing skills he had developed in the pharmaceutical industry from which he originated, and already gifted with a clear view of the potential that existed for such a watch if it could be produced to the right specifications.ln addition to the internal difficulties that were bound to accompany the developement of such a radical product as Swatch,the economic environment was certainly not a favorable one. Under the leadership of Ernst Thomke - ETA's general manager since 1978 - the company had gained control of one of its larger competitors, A. Schild SA (ASSA) in Grenchen. This operation went far beyond the scope of a mere local takeover,being in fact, a minor revolution in the watchmaking world.

However,from 1980 onwards, the financial and structural crisis in the Swiss watchmaking industry began to set in , leading to substantial job cuts. The reorganization of Asuag, which had suffered losses of the order of one billion francs, became an imperative; indeed, it was forecast that the banks would soon take over responsibility for management. In 1981, when unemployment was at its peak, the Bulova plant in Biel was closed, although ETA did hire some of those who had been made redundant. As a result Ernst Thomke, suddenly found himself at the helm of a new group named ETA, which comprised all the companies previously affiliated to Ebauches SA. Although Nicolas Hayek joined in the spring of 1982,with plans for a radical new global approach, by June the banks had taken control of the company... Within the ETA group, the work-force were now in the unenviable position of trying to develop an entirely new product at a time when the threat of unemployment and staff cuts loomed threateningly on the horizon.

It is clear that Ernst Thomke needed a clear head and strong nerves in order to defend a project whose criteria were such that it fell well outside the traditional view of watchmaking. In short: a novel idea - but riddled with uncertainties... Anton Bally remembers that "all this did not take place without constant friction at the different levels of management and numerous tough discussions,but Ernst Thomke fought for all he was worth, using every means available to him to defend an idea in which he believed so firmly..." Fortunately, Nicolas Hayek sensed the potential of the project,and in keeping with his reputation as a man of vision,provided the support which enabled Thomke to obtain the necessary financing for the development and eventual launching of the Swatch..
Dr. Thomke's request "An das Kantonal Vol kswirtschafts-Department des Kantons Solothurn", (To the Department of Public Finance of the Canton of Solothurn) for a loan at a preferential rate, appears in a document dated 17th of January 1983. It reads: "Gesuch der Ebauches SA für ihre Tochterfirma ETA SA Fabriques d'ébauches, Grenchen, um finanzielle Unterstützung durch die solothurn ische Wirtschaftsförderung..." Many aspects of the problem are examined in this request, from the international situation to the economic conditions prevailing in the canton of Solothurn, from ETA's production capacity to the "Popularis" project, from the use of the Delirium know-how to its significance for employment;with its workforce of 2000, ETA was of course one of the leading employers in the region.The loan was granted.
As Dr. Thomke visited the different markets with a view to establishing contacts with distributors, he became increasingly convinced that distribution should remain in ETA's hands. Discussions with Franz Sprecher
referred to in a later chapter) reinforced this opinion.

In conclusion, it is evident that Ernst Thomke had a remarkable influence on his colleagues, not only due to his foresight and experience of production capabilities but also to the open and direct relationships he established with those responsible for the project;needless to say he was forever demanding more from his work-force! Evolution of both research and development were to lead to new ideas which had little, if indeed anything in common with the primary objective. Amongst Ernst Thomke's characteristics is a firm refusal to allow himself to become obsessed by a single idea. As a result, he was able to explore other concepts and venture into new projects-the Swatch car and telephone being two examples -although Nicolas Hayek's impact on these new products should be clearly emphasised.