GE Major Appliance Division fate

[laundromat]

I had a lengthy conversation with a woman at GE'S Call Center (800-626-2000)and as we were looking up different dishwasher models,I asked her who she thought was going to take over the appliance division. She told me NOBODY,GE is going to "spin off"their major appliance divisions and let them be INDEPENDANT !!!!!!I realy was glad to hear that and hope it's true.All the factories will stay intact and their history will continue.You all know this is their 100th anniversary?Let's celebrate! All Potscrubbers,MiniBaskets,Activators,Peranas,Versatronics,Sensitemps,P7S,Calrods,Hotpoints,and Trivections unite!

 

[tuthill]

That's pretty cool. Bombardier (who makes trains, aircrafts. etc.) was in some financial trouble and they "spun off" off the recreational products (snowmobiles (which would be analogous to GE's appliances) and it worked out great. Let's hope the same for GE appliances!

 

[frigilux]

I wonder what "let them be independent" means?

Appliance divisions don't just exist on air, you know. They need the cash a corporate parent provides.

 

[iheartmaytag]

They must have borrowed this trick from GM. They will spin of the division, load it down with debt, and then let it struggle on it's own. When it goes under they will sell it with it'd debt at bargan basement prices, or let it go bankrupt all on it's own.

Does anyone remember Delphi, GM's parts divison?

 

[tuthill]

GM

Lol, and yes GM is the finest example of how to run a business!

 

[launderess]

General Electric, announced months ago it had decided not to sell their appliance and other divisions, but "spin" them off.

Current financial/Wall Street woes make it not the best time for really huge deals. Any potential buyer would have to had deep pockets full of cash, as finding credit or such to put together a deal would have been tough to impossible.

GE like many other businesses is waiting for things to calm down. In the mean time spinning off the appliance division allows GE to get something that is dragging down earnings off their books.

Remember boys and girls, today it is all about share prices. CEOs who don't feed the Wall Street monster are shown the door.

 

[gansky1]

If you research some GE history in the last 10 years, they typically don't spin divisions into "independent" companies but rather sell them off with the blessing of the GE name. GE has long been positioning itself into large-scale and long-life industry production and lately, energy, while at the same time divesting itself of non-durable industries such as plastics, etc . There isn't enough money to be made in appliances now that the housing market and especially building markets have tanked and recovery is too far in the future to make losses in this division acceptable. Most analysts will cheer at the long-recommended drop-kick of the appliance division. POOF! It's gone.