Reuters is reporting that in a recent interview published in the Swiss daily l’agefi, Swatch Group Chairman Nicolas Hayek said the group plans to stop selling watch parts to other brands. Swatch Group supplies movements and crucial components to many brands through its ETA unit. “We no longer intend to produce or deliver to third-party watchmakers,” Hayek was quoted as saying.
Hayek continued “Swatch Group could cope very well without [selling parts to other watchmakers]. It only accounts for sales of around 300 or 400 million Swiss francs, which is some 7 or 8 percent of total sales. The loss will be small compared to all the advantages we will get back.”
Hayek said Swatch Group already had a team in place to discuss stopping delivery and production with Switzerland’s Competition Commission (COMCO). COMCO spokesman Patrik Ducrey said Swatch Group had not yet contacted the body.
Swatch Group announced on September 15, 2009 that COMCO had opened a new investigation into ETA’s business practices.