Let us all take a step back and evaluate the situation calmly.
No one can dispute Maytag was having somewhat of a hard time recently, and may or may not have shot itself in the foot with recent aqusitions, product line changes. Maytag's current problem had more to do with Wall Street than dropping the Dependable Care Line.
Maytag like many other appliance makers was being hit on several fronts, high domestic US labour costs, energy costs, and lately high steel costs. Maytag to it's credit kept more production in the United States than many of it's rivals. The Newton plant in particular is very costly for Maytag in terms of production costs, but yet it was kept open. This as Electrolux and others were bailing out of manufacturing towns left and right.
What going priviate will mean for Maytag is breathing room, away from having to meet Wall Street expectations. With that monkey off their backs, Maytag can concentrate on reshuffling itself and once again return to high profits.
Is there going to be pain on the part of Maycor workers and retirees? Probably, but this is happening all over the US from airline employees to factory workers. In a country that lacks a full government pension and full health scheme, it was left for companies to fill the void. As these costs rise companies find it is creating a huge financial drain on their resources at a time with global competition (much of it from contries that do have government health/pension schemes), makes rising prices impossible.
The jury is still out on weather or not Maytag would have survived much longer without this plan. The company needed funds and it's bonds were rated at or below junk status,and stock price was, well you know; it was ripe for either a hostile takeover or bankruptcy.
Launderess
No one can dispute Maytag was having somewhat of a hard time recently, and may or may not have shot itself in the foot with recent aqusitions, product line changes. Maytag's current problem had more to do with Wall Street than dropping the Dependable Care Line.
Maytag like many other appliance makers was being hit on several fronts, high domestic US labour costs, energy costs, and lately high steel costs. Maytag to it's credit kept more production in the United States than many of it's rivals. The Newton plant in particular is very costly for Maytag in terms of production costs, but yet it was kept open. This as Electrolux and others were bailing out of manufacturing towns left and right.
What going priviate will mean for Maytag is breathing room, away from having to meet Wall Street expectations. With that monkey off their backs, Maytag can concentrate on reshuffling itself and once again return to high profits.
Is there going to be pain on the part of Maycor workers and retirees? Probably, but this is happening all over the US from airline employees to factory workers. In a country that lacks a full government pension and full health scheme, it was left for companies to fill the void. As these costs rise companies find it is creating a huge financial drain on their resources at a time with global competition (much of it from contries that do have government health/pension schemes), makes rising prices impossible.
The jury is still out on weather or not Maytag would have survived much longer without this plan. The company needed funds and it's bonds were rated at or below junk status,and stock price was, well you know; it was ripe for either a hostile takeover or bankruptcy.
Launderess
