First of all, you need to understand that Leica Camera is a completely separate company from Leica Microsystems and Leica Geosystems. Leica Microsystems own the Leica trademark and licence it to Leica Camera.
In May 2005, Leica Camera nearly went bust because they completely under-estimated the flight from film. Over a period of years, the influence of Hermes as a major shareholder had perpetuated the idea of Leica as a luxury brand, a bit like Rolex. Unfortunately, while rich punters were happy to continue with mechanical watches, they didn't much care for film cameras any more and their sales went into serious decline.
What Leica did have was top quality optical design expertise and if you study the accounts from the period, it's clear that their consulting and IP licencing businesses kept them afloat before the CEO went off to run a furniture company. In the meantime, an investor with the largest private fortune in Austria - derived from packaging - came to the rescue and has all but taken Leica Camera private. He (Dr Andreas Kaufmann) has a number of optical businesses which dovetail nicely with Leica. The lens barrels, for example, are made by a company in whch Dr Kaufmann's investment company has a significiant holding.
This investment is the best news for Leica. It's brought the M8 to market, new lenses - seemingly 24 now being designed - with a new DSLR expected next year. Bright young talent, the Product Manager for the R10 is a young woman - and a plan to relocate from Solms back to the spiritual home of Wetzlar - 10 miles maybe but a symbolic resurrection of the company.
Dr Kaufmann has told me personally he is in it for the long haul, to see Leica back where they belong as makers of some of the finest lenses on the planet and cameras to go with them. A bold plan given (especially) the new announcements from Nikon but I'm looking at an A2 print from an M8 and 28mm Summicron-M ASPH, just fabulous.
In time, we expect an M9 which will recognise the M8 as a necessary learning curve and will move the rangefinder game on. Add the new DSLR, the sport optics which are among the very best and new areas such as projection and Leica has a bright future.
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