GE's Divestiture Plans Hit Hurdles

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I can't say I'd be sad if this deal fell through. I mean GE is an American icon in the appliance industry…among other industries. Not that their appliance division is losing money either, it just "small potatoes" in their eyes. They want to focus on bigger and better things. I just hate to see as big of an American brand like this, become owned by a foreign company. I worry about jobs here of course. I know Electrolux manufacturers a lot of their appliances in the states, but taking on GE would be a huge amount of employees. Of course I'd rather see them buy it, than GE shut it down or sell it in parts, etc.
 
That's a great idea Malcolm!!   They have such a small market share in the appliance market, DOJ wouldn't dare balk at that in my opinion. 
 
Sale Of GEs Appliance Division

I agree that Frigidaire should NOT be allowed to buy GEs Appliance division, FD is already big enough to survive, compete and grow in the major appliance field.

 

I also believe that Whirlpool should have never been allowed to buy Maytag, but that happened under a repugnant administration where there was no over site at all.

 

GEs appliance div. needs to go to a smaller company, Alliance could do it but I fear that it would be a major distraction for them. GEs AD could stand on their own just making appliances, it would also be possible for it to become a worker owned company.
 
As was the case with the airline industry

Mergers= less consumer choice=higher prices, marginal quality=more rants on this board about even more junk being foisted upon us.

Not sure that Alliance has enough $$ or access to such to purchase the entire division of GE. Even then the only products it gives Alliance are dishwashers, friges, and freezers. Taking on the laundry bit would result in product duplication. THen does Alliance spend $$ to bring GE up to their standards OR does Alliance "dumb down" Speed Queen to go mass market?

I do agree with the DOJ blocking the merger/buyout completely. Last thing we need are FEWER choices. GE could spin it off to a venture capital firm, sell to certain employees (like Original Mattress Factory OR Harley in the 80's)or just shut the whole thing down.

I think Alliance can do just fine sticking with SQ home and Commercial lines. Carve out a niche, put a quality product out there. Bradford-WHite ONLY sells to wholesalers and distributors and they do just fine that way.

Last thing they'd want to do is try to take on GE and fight for floor space at your local BIG BOX. GE has been slipping for years and Electrosux is hardly the company to put the necessary funds into operations and improve quality. ALso what is to say Electrosux buys them then shuts down everything and takes a tax write off?
 
oops appnut

you're right. That would be one biz line that would certainly not fit in with Alliance.

I can't see what Alliance would gain trying to buy up GE appliance division especially since you reminded me of the cooktop part!
 
Alliance Has Survived

By sticking to what they know, commercial and now domestic laundry. As such they have no need nor use for GE appliance division. What would be the good of it?

Again the appliance market is mature and saturated. Even with the scores of brands owned by Whirlpool and Electrolux (via their purchase of WCI and on their own)only a few are any real major players. The rest things are best left unsaid.

Competition from first Europe then Asia has killed the American appliance market. Everything from microwaves to toasters, to ranges has either gone mostly to Mexico or is shipped in from Asia. You cannot keep costs down sadly with "made in America" and that seems to be most consumer's chief concern.

General Electric up until say the 1970's and perhaps 1980's was really innovative and a key player in the domestic appliance market. Microwaves, dishwashers, laundry appliances to name a few. Then it is as if a switch was flicked, around the 1990's quality began to slip and it was as if they didn't really give a darn.

That switch is or was probably the fact GE was growing into a huge multi-national company with diverse product lines which as of now are:

Aircraft engines
Electrical distribution
Electric motors
Energy
Finance
Gas
Healthcare
Lighting
Locomotives
Oil
Software
Water
Weapons
Wind turbines

GE's major subsidiaries are:
GE Aviation
GE Capital
GE Global Research
GE Healthcare
GE Home & Business Solutions
GE Oil & Gas
GE Power & Water
GE Transportation

Am willing to be more persons on a weekly basis travel on airplanes or planes made by or with parts from General Electric. Are treated in healthcare by same and or are affected in a hundred other ways than have GE appliances.

 
One of the reasons GE has given for divesting appliances is that they're tied to the housing market, with much production going into new homes. The housing bust of the last few years has made the economics of the business poor. The cyclical nature of the business would be too dangerous for small company with little capital, like Alliance. It also limits other possible candidates.

When Whirlpool was taking over Maytag, at the time the only other suitor was Chinese, and when that became apparent, Whirlpool looked like the savior. If we could have a do-over, it might have been best if GE had bought Maytag to gain heft in the industry, but that ship has sailed.
 
just my 2 cents

IIRC, Mr. R. Hake  was the last captain of the Maytag ship.  He had already introduced us to Norgetags, right after or during the "Neptune", PR disaster.  Whirlpool simply bought out a once trusted Name in appliances.  WP did not  gain anything in  engineering or technology.  Unfortunately  the Maytag/WP deal left much suffering and misery to Newton Iowa and Herrin IL.
 
The thieving POS built his home like he built Maytag Appliances, ON THE CHEAP.

Maytag was doomed years ago by an ultraconservative approach to innovation. KitchenAid suffered from it, too, but not as badly. Both lines were usually behind the competition in modernizing their machines. Look at the 14 series KA DWs compared to the WP which was offering at the same time. Maytag HOH dryers stopped evolving after the electronic control was introduced and the HOH design was kept far too long. It had a small capacity, a hard to clean lint filter, a chassis supporting the drum that was not only of an antiquated design, but also robbed the drum of capacity. As washer capacity increased, mostly other brands, but finally Maytag, the large loads in the dryer put the clothing very close to the heating element. The gas HOH dryers kept a pilot light and, because of the design, had a very small burner capacity resulting in very slow drying for a gas dryer and felt seals vulnerable to the flame.

The agitator design which worked well in their conventional washers was not changed for the small narrow tub of their automatics and not redesigned until the 06 series in the mid 60s. The company coasted on the reputation of their wringer washers for far too long. Seeing their haughty business reduced to ruble is only karma.

The last guy who took over the controls only controlled the crash begun decades earlier by Fred and his son.

As for GE, they always treated their employees like shit. No manager ever came from the shop floor.
 

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