1969: Elbe international Technical know-how and vacation flair

Das Original
The Company Magazine Of The Elbe Group
Issue No. 01.2007
Dear readers,
Business in Germany is continuing
to fly high. Concerns that the rise
in sales tax could lead to a slump in
the economy and an associated fall
in consumer demand have not come
true.
Industries such as machine building
and vehicle construction have full order
books, bursting at the seams. The
steel industry is barely able to cover
the demand and, to some extent, massive
material bottlenecks are emerging
on the raw materials markets.
The companies in the Elbe Group are
profiting from this high, with incoming
orders and revenue. We are all
pleased about this.
However: Growing order volumes with
existing customers, plus the gaining
of new customers, are also making the
acquisition of raw materials difficult
for us.
This faces us with further challenges,
which we will solve. We have been
able to prove this in the past, with
dedicated employees, to the satisfaction
of our customers. I would like
to take this opportunity to sincerely
thank our team for this dedication!
Full order books will also continue to
demand a great deal from us during
the second half of 2007 and far into
2008. Only by combining our efforts,
will we be able to overcome the challenges
which lie before us. I am certain
that with our employees, we have
the best preconditions for this.
During the coming weeks, many readers
will be embarking on a well-earned
summer vacation. I wish you and your
families a relaxing and pleasant time!
Page 2
Milestones 1959–1969:
Elbe international
Page 4
Technical know-how and vacation
flair: Elbe USA in South Haven
Kind regards,
Gundram Elbe
Photo: Rabbet

2 Milestones 1959 to 1969
Elbe international
In the previous issue of „Das
Original”, we highlighted the 1950s,
the time of reconstruction and economic
miracles. During this time,
Elbe grew from 35 to 180 employees.
In the 1960s, it becomes significantly
more difficult to maintain the
We left our story with the construction of the new
administration building. When this is completed in
1960, there is finally space to spread out your elbows,
while typing correspondence on the mechanical
typewriter, with a carriage that makes a „hell of a
noise” when it jumps to the next line. Although it is
no longer as cramped in the administration area, the
production area now has renewed space problems.
The production hall, built in 1956, is too small again.
Every free square meter is being used. A conglomeration
of individual spaces emerge, which, in the end,
only insiders are familiar with. But, that does not
matter. In the structures that have been established
at Elbe, all of the employees quickly become insiders.
Rationalization and factory planning
only become an issue later.
Nevertheless: The cramped
space can no longer be tolerated
and this time, Hans Elbe
carries out
turbulent growth. Initial saturation
effects appear. However, we can anticipate
one thing: Elbe continues
to grow, at the end of the decade, the
team amounts to 250 employees.
planning in bigger style: In 1962, a hall is built with a
sawtooth-like shed roof. The hardening shop is now
also accommodated in it. The structure provides a
total of 3,600 square meters, so that it offers three
times more space than previously. Gottlob Elbe is still
able to see the new factory with his own eyes. The
„senior” passes away on Christmas day in 1962, at the
age of 76.
The space in the new factory can really be used,
after all, the production of small double-joint shafts
for tractor steering axles begins in 1965. A prospering
business, as a new wave of mechanization grips
agriculture in the 1960s. It is hard to believe, but
true: Right into the mid-1960s, in many places in
Germany, the smallholding farmers still brought their
harvest into the barn using farm horses. In Austria,
Switzerland, Northern Italy and France, it still takes
a few years before the tractor replaces the Haflinger.
Elbe fills a new market niche and, as a consequence,
the workforce grows to 250 employees.
Agriculture and a growing international
share help Elbe
to overcome

3
Elbe technologies:
Also in agriculture,
a multifaceted
product range.
the first small growth depression in the German
economy in 1967. The economic miracle is only
ended in 1973 by the oil crisis, however initial economic
and structural problems are already making
themselves apparent. In an international comparison,
Germany has advanced to a high wage location in the
mid-1960s – with the 40-hour week, with 24 days of
vacation and with vigorously growing ancillary wage
costs. This has social effects: The society in Germany
is being transformed from a working-class society to
an affluent society. The young students rebel against
the unsettled past, against authoritarian parents, authoritarian
educational institutions, the church, the
state and the economy. In fact, a great deal is in need
of reform in the Germany of the first big coalition,
however, in many cases the 68s also overshoot the target,
promote condemnation (particularly at the Axel
Springer publishing house), free love, free drugs, free
children – which are confronted with the blessings
of an anti-authoritarian upbringing in „Kinderläden”
(small, alternative child-care centers, often set up in
what used to be a store).
These developments are being played out on the
stage of the large university cities and only arrive in
Bietigheim-Bissingen in a moderated form. Nevertheless,
young boys’ hair also gets longer and longer there
(and has remained so until today, in some cases). Elbe
responds appropriately to the reform project of 1968:
There is no place for exaggerated ideas, however, the
employees receive more discretion. And also more
money. On Friday, June 13, 1969 (who wants to be
superstitious?!), the company celebrates its 50-year
anniversary. In the local newspaper, it is reported:
„Company boss Hans Elbe is now using the 50-year
anniversary as an occasion for distributing a generous
anniversary bonus to all of his employees. Furthermore,
on the occasion of the anniversary, he has carried out a
wage increase for all employees. In addition, the existing
pension plan is worth mentioning, which can be concluded
on a capitalized or annuity basis, upon request:
When leaving the company after five years of being a
member of staff, the employee receives 4,000 Deutschmark.
This amount increases to up to 10,000 Deutschmark,
with 20-years of company membership.”
Today, private pensions are on everyone’s lips.
At Elbe, it is a model from the 1960s and therefore,
the Elbe pension is secure. These generosities are, of
course, only possible, because the business is right,
with giving and taking balanced. In his anniversary
speech, Hans Elbe has the opportunity to refer to the
achievements:
„Crucial to the development of Elbe were (…) the
past 20 years, during which the major economic upswing
also took place. During this relatively short time,
our factory grew to become one of the most important
in its industry, in Germany. Today, with around 250
employees, we deliver approx. 25,000 units of joints
and cardan shafts, with an export share of nearly 25
percent, to the east and west, in countries within and
outside of Europe.”
In more detail, the daily newspaper lists each of
Elbe’s export regions within and outside of Europe,
in alphabetical order: Austria, Belgium, Brazil, Denmark,
Finland, France, Great Britain, Greece, Hungary,
India, Italy, Lebanon, Netherlands, Norway, Poland,
Romania, Sweden, Switzerland, Turkey, USSR,
Yugoslavia, Argentina, India and the USA .
However, in conclusion, we would like to cite Hans
Elbe’s speech again, who says something extremely
up-to-date to his employees in 1969: „We know one
thing (...) for sure: that in tough competition, we can
only be successful if we also maintain the high quality
standard that we have achieved. Our previous success
has been mainly based on the high quality of our work!
I can put it even more precisely: On your high-quality
work and on your reliability!”
Yesterday, as well as
today: The employees
are our guarantee for
success!
This was already
underlined by Hans
Elbe in his speech to
the employees in the
speech manuscript for
the company’s 50 th
anniversary.
Revenue in € million
165,05
Employees
1054
Entirely in the spirit of Hans Elbe:
The Elbe pension plan has not lost any of
its attractiveness, even after just under
40 years since its introduction.
8,29
250
1969 2006 1969 2006

4
Technical know-how
and vacation flair
In picturesque South Haven,
cardan shafts are built for American industry
Photo: iStockphoto
Chicago
Lake Michigan
South Haven
Ni-Ko-Nong, in English
„wonderful sunsets”. This is
the Indian name of the home
of Elbe USA. Today, the
town in Michigan is known
as South Haven. Both names
are justified. South Haven is
a port town on the eastern
shore of Lake Michigan and a wonderful vacation
spot. It is so popular that the number of inhabitants
of the small coast town quadruples to 20,000 in
the summer. The 25 employees of Elbe USA are not
vacation guests, but rather, permanent guests, who
assemble double-joint and cardan shafts in South
Haven for the American market.
one of the cornerstones of the American business today.
However, the cooperation is now no longer only
limited to the supplying of components. Now, Elbe is
already being involved in the
development of tractors. For
example, Elbe developed a
customized drive shaft for
John Deere, used in the independent
wheel suspension
of the 8000 tractor series.
Elbe USA on course for
expansion
Elbe has been a system supplier for
John Deere for decades.
Service from South Haven: after the order is received, delivery within 24 hours.
As Gerd Heimerdinger, Managing Director, or in
American, “President“ of Elbe USA since 2000,, confirms,
it was not the idyllic beaches and sunshine that
attracted Elbe to South Haven, but rather tangible
economic advantages: The company, System Components,
has its headquarters here and this was crucial to
the development of Elbe USA. Already at the beginning
of the 1980s, Elbe had entered into business in
the USA. At that time, initial contacts were established
with John Deere, the leading global manufacturer of
agricultural and forestry machinery, construction machinery
and riding mowers. Consequently, Elbe looked
for a local partner and found it in the form of System
Components. Its Managing Director, Eugen Gawreliuk,
had studied in Munich and therefore spoke fluent
German, which made the business relationships easier.
Initially, Elbe limited itself to having fully-assembled
double-joint shafts temporarily stored by its partner,
System Components, and delivered on a “just in time”
basis, i.e. on the spot, directly to John Deere’s production
assembly line. The cooperation proved to be so
fruitful, that after a time, Elbe made the move to have
the assembly of double-joint and cardan shafts directly
carried out at System Components. For this, the necessary
assembly preconditions needed to be created
first, some of the machines were supplied directly
from Germany. The business relationship with John
Deere was not only the reason for the establishment
of the American Elbe subsidiary, but it also remains
As a result of the
positive business development,
Elbe USA
was officially established
as a subsidiary
of the Elbe Group,
in 1993 with five
employees. At first,
the work was done in
rented premises, with
a moderate 400 square meters of space. As the possibility
of warehousing and assembly was now available
locally, Elbe USA became increasingly attractive for
new customers during the 1990s. Among these were
major industry names such as Arvin Meritor (formerly
Rockwell) and AxleTech (also formerly Rockwell),
manufacturers of truck axles and chassis, and
Oshkosh, a specialist in military and fire department
vehicles. At the end of the 1990s, the business of
Elbe USA was so successful, that the space capacities
were no longer able to live up to the business development.
Therefore, in 2000, the urgently needed
construction of a new building was started. Only five
months later, Elbe USA was able to move into the
new premises, with more than 2000 square meters,

5
Photo: Paladin
Photo: iStockphoto
South Haven is located on the eastern shore of Lake Michigan.
The town has around 5,000 inhabitants and, as a port town, it was
previously a destination point for many freighters and fi shermen.
Today, the harbor is only used for recreational purposes. Among the
many thousand tourists who enjoy relaxation in South Haven every
year, there are many sports boat and sailboat owners. The mild
climate and the picturesque location on Lake Michigan, provide
the allure of the small town, with its most important attractions
including the annual Blueberry Festival and the still-functioning
lighthouse from 1872. Lake Michigan is one of the “Five Great
Lakes” and is the only one which lies completely within the United
States. It has an area of more than 58,000 square kilometers and
is up to 281 meters deep. The white, sandy beaches of the lake are
just as popular as its clear water.
which also included a dedicated painting booth.
In 2001, Elbe USA established contact with
Caterpillar, the world’s largest manufacturer of
construction machinery. Caterpillar became a bulk
purchaser of flanges from Elbe USA. These, in turn,
were supplied to the USA by the Elbe subsidiary,
Elso. The business volume gradually expanded quite
rapidly, so that it became necessary to organize new
warehouse capacity. Elbe USA continued on its path
of growth and established itself in the OEM (Original
Equipment Manufacturer) market.
In 2005, International Truck and Engine (ITEC)
became another important customer, with the development
of a customized drive shaft. ITEC is
Power pick-up by International.
the manufacturer of the largest pick-up worldwide,
and the driveshafts for it are being supplied by the
Elbe Group. And the signs for expansion continue
for Elbe USA: It is currently being contemplated to
expand the company building. The reason for this
is that strategically important projects, which are
to start in 2008, will require expanded warehousing
and production capacities.
Partners on site: The distributors
Managing Director, Gerd Heimerdinger has been
commuting between the United States and Germany
for ten years. At the beginning of his activity,
he was in South Haven for 18 months. Since then,
it is sufficient for him to be on site four to five times
per year. In addition to being
responsible for Elbe’s USA
business, he is also responsible
for several major international
customers. Nevertheless, his
remoteness does make his work
difficult. Heimerdinger freely
admits this: „Sometimes, daily
problems occur, which cannot
be solved immediately over
such a large distance. This is
when patience and persuasiveness
are required.” However, anyone who works in
the USA will very quickly think in longer distances
anyway. Elbe USA has the advantage that South Haven
is centrally located for the major customers. The
majority of them are based in the nearby states of
Iowa, Illinois and in Michigan itself, for example in
Motown Detroit, the heart of the American automobile
industry.
Gerd Heimerdinger, President Elbe USA.
However, Elbe USA also has many medium-sized
customers in the machine building industry, which
are spread right across the USA, but still need to be
directly serviced and supplied. It quickly became
clear: The huge expanse of the United States required
special market strategies and logistics solutions. In
the build-up phase of the Elbe USA subsidiary, initial
contacts were established with various distributors
everywhere in the United States. This solution has
proven itself to this day. Elbe USA works extensively
with distributors, which are responsible for servicing
locally. The procedure is always the same: Elbe
delivers the required components to the distributor,
which, in turn, services the machine builder, who requires
the component for his production. The business
with the distributors is considerable. It accounts
for 20 percent of Elbe USA’s revenue. This is why Elbe
USA is in the process of expanding the network !

6
all over the country.
Cardan shafts for the coastguard
Since 2003, Elbe USA has also been present at the
international boat show in New Orleans. This presence
has paid off. The
major boat manufacturers,
such as Hamilton
Jet or Safe Boats,
are now important
buyers of Elbe cardan
shafts. Another example
of a customer
in the boat manufacturer
segment is
ACB, Aluminum
Chambered Boats,
the manufacturer of
aluminum boats with
a multi-chamber system.
These are regarded
as the safest boats
worldwide, as they are virtually unsinkable. They
three days. Otherwise, he will look for a new supplier”,
explains Heimerdinger. There are also serious differences
for the employees, in comparison to European
colleagues. Protection against dismissal, for example,
practically does not exist in American labor law. Americans
call it „hire and fire”. However, with respect to
„hire and fire”,
Elbe USA tends
to be bit more
German than
purebred American
companies
and relies on
long-term employment
relationships.
„The
flipside of the
coin is that the
employees in
the USA are also
far more willing
to change jobs.
We want to
avoid this”, emphasizes Heimerdinger. That is why
also distinguish themselves through their high speed,
service life and maneuverability.
The boat industry is becoming increasingly important
for the American Elbe subsidiary. However,
the major boat manufacturers are not located at Lake
Michigan, but rather, far away, on the east and west
coasts of the United States. Therefore, Elbe USA
needed to make special efforts to establish itself as
a supplier with these buyers. Cooperation with local
distributors was also the right answer for this. And
even if the major manufacturers are located at the
coasts of the USA, South Haven still has its own testing
area for the boat industry at its doorstep, with
Lake Michigan.
Our colleagues in the USA
Elbe USA also offers its employees benefits, such as
pension or health insurance. These are not regulated
by the state in the USA, so that Elbe USA is a popular
employer, with such additional benefits.
Is it then just a dream, to work in a vacation paradise?
Mr. President Heimerdinger waves this aside:
„When I go to South Haven in the summer, I can see
the dark side of tourism: All hotels are fully booked
up. I have already had to wait for two hours for a good
steak – and that in the land of service, the USA”, he
„complains” with a wink.
The different working world of the USA
Not only the distances are greater in the USA
than in Germany. The working world is also completely
different. Americans expect significantly more
service than the Germans. „The American is not familiar
with delivery periods of six to eight weeks – if
he wants something, it needs to be there within two,
Transmission
Components
for Industrial
and Specialty
Applications
The
Original
since 1919
Elbe & Sohn, Inc.
PO Box 191
South Haven MI 49090
Phone: 269-637-7999
Fax: 269-637-2254
Largest Inventory in North America
www.elbeusa.com
Elbe USA:
Service partner
and supplier to
the US coastguard

7
5. Strategy Meeting of the Elbe Group on 8 th and 9 th February 2007 in Nuremberg
In order for the corporate strategy to be put
into practice, communication is required. That
is why, for the fifth time already, the 30 management
staff of the Elbe Group, from Germany,
Italy, the USA and Hungary met for two
days, in order to discuss the future of Elbe.
The fact that strategy does not need to be detached,
is shown by the results of the strategy meeting: A
distinct reduction of inventories with a simultaneous
increase in productivity are being aimed at. The
participants also agreed to pursue direct material and
tooling cost reductions.
At the 5 th Strategy
Meeting of the Elbe
Group, employees
from the branches
in the USA and
Hungary were also
represented for the
first time.
In between two days full of reports and strategy discussions,
the participants were able to look forward
to an exciting evening program. After a festive dinner,
the medieval city center of Nuremberg was explored,
with competent advice: A night watchwoman
guided the participants through the night-time city
and recounted information worth knowing, historical
facts and amusing anecdotes about the Franconian
metropolis.
If not now – then when?
Now, the Elbe Group also has a „world champion”.
During the Handball World Championships in Germany, our employee, Uwe Sautter also found an invitation
from the DHB (German Handball Association) in his mail. He had
the honor, as an experienced timekeeper (approx. 250 assignments in the
Premiere German Handball League, EFH Champions League, Ladies’
World Handball) of belonging to the team of World Championship timekeepers.
If not now – then when? In the spirit of the theme song for the
DHB selection, his suitcase was quickly packed. He thought to himself
that you only get such a chance once in your lifetime. As a team member,
the timekeeper is an indispensible partner for both of the referees on the
field, as the final siren sounds after pure net playing time in handball.
That is why the timekeeper must remain in constant visual contact with
the referees. Mr. Sautter therefore had a responsible task, which he fulfilled brilliantly. Not only the national
team, but also he, earned a crowning moment in their careers. Congratulations!
Mr. Sautter is responsible for the sales, operational purchasing and bearing production in the double-joint
shaft division of the Elbe Group. He has been employed with the company since 1978 and also completed his
vocational training here.
Sales conference at Elso Hofheim
on 1 st and 2 nd February 2007
The target of achieving revenue of EUR 200 million
in the group by 2010 motivates Sales to reach
peak performance.
At this year’s sales conference at Elso, tips
and strategies were therefore primarily exchange
for successful customer acquisition. Mr. Schmidt
(E & V Manager in the Elbe Group) spoke on the
topic of maintenance free products, Competitors
like to overemphasize freedom from maintenance
for marketing reasons, intending to bring disfavor
on cardan shafts requiring periodic lubrication.
Speaking of fat (grease): To eat, there was a typical
Schweinfurt-style butcher’s platter. For this, hefty
slices of meat are served on a wooden board, always
according to the motto, „From the fat to the lean
meat”. It starts with the stomach, then the sequence
of dishes goes to the tongue and kidneys.

8
May 2006: Josef Schmidt (25 yrs.), Peter Lang
(40 yrs.), Harald Nowitzki (25 yrs.) (f. l.).
May 2007: Martin Starck (25 yrs.), Heinz Friederich (25 yrs.),
Ante Gerger (25 yrs.) (f. l.).
Heinz Friederich was particularly pleased about the best wishes and
gifts from “his” vocational trainees!
5+1 = One hundred and sixty-five?
Together, 165 years with the company.
Gundram Elbe was able to congratulate six gentlemen on their 25-year and 40-year anniversaries in the Elbe
Group, in May 2006 and 2007. In the presence of the works council, he expressed his thanks for their loyalty to
the company, as well as his congratulations, and presented the celebrating employees with an appreciatory gift.
The vocational trainees had a special surprise in store. For their „boss”, they reached into their own wallets and
presented a travel gift certificate, as well as a photo album, with many photographs of former vocational trainees
from the Elbe Group.
Congratulations!
Brain training was required in the 02.2006 issue of „Das Original”.
Among the numerous correct answers to the adjacent solution (blue numbers were
to be supplemented), we carried out a prize draw for five Quizboys, with more than a
million Sudoku options. As always, subject to exemption from legal indemnity and in
the presence of a works council member.
Congratulations to the winners and continued good luck with training!
T. Neumann – Elso Gelenke, H. Zimmermann – Elso Service, D. Gräf – Elso Gelenke,
A. Sitnik – Elbe KGW and M. Lacorcia – Elbe Italia South Maintenance.
Very well informed?
In today’s issue, we are giving away five
American-style toasters!
Do you still know? In one of the previous issues of “„Das Original”, we reported on a new development,
which our customer is now installing in series, after a successful field test.
Please answer the following questions:
1. How many prototypes ___ and
2. which type of cardon shaft of the series _____________
3. were tested for approx. 4,000 operating hours by the company, ____________?
Among the participants, who give us the three correct answers by September 9,
2007, we will give away five American-style toasters. As always, subject to
exemption from legal indemnity and in the presence of a works council member.
Here is a tip, if you do not want to cut up the magazine: simply copy the page, enter
your answers and send the solution to the office of the Management Board
(also by fax: +49 (0)7142 353-365). The editorial staff wish you good luck!
Picture similar
Name:
Department:
Imprint
Publisher: Elbe Holding GmbH & Co. KG
Gerokstraße 100, D-74321 Bietigheim-Bissingen
Phone: 07142/353-0, Fax: 07142/353-350
www.elbe-group.com
Responsible for contents: Ralf Gebhardt
Das Original is the Corporate Magazine for customers,
partners and employees of the Elbe Group.
Das Original and all individual contributions and
illustrations are protected under the copyright law.
Feature way: twice annually
Editorship, project coordination, design and
reproduction: W.A.S. Werbeagentur Spazierer,
Stuttgart, Text: H zwo B, W.A.S.
The published pictures are - if not differently
indicated - of the publisher and/or the editorship.
Reproduction in any form or any part only with
permission of the publisher.