05.20.08

Appliance Industry News for May 2008

Posted in Uncategorized, Editorials at 3:08 pm by Administrator

GE to Exit Appliance Business

May 16, 2008

General Electric Co. will sell or spin off its century-old appliances unit, saying the business was too focused on the United States.

The appliance arm, which employs about 13,000 people worldwide, is the area of GE hardest hit by the two-year U.S. housing slump, as the company sold a lot of its dishwashers and refrigerators to home builders.

The Louisville-based business, which last year generated $7.2 billion in revenue, could appeal to an Asian manufacturer looking for a well-known American brand, analysts and investors said. They estimated the appliances business could sell for $4 billion to $8 billion and cited South Korea’s LG Electronics and China’s Haier as among possible suitors.

“With the weak dollar, this could look more attractive to an overseas company trying to get a big foothold in the U.S. market,” said Matt Collins, capital goods analyst at Edward Jones in St. Louis.

Over the past five years, the Fairfield, Connecticut-based conglomerate has sold off businesses that generated about $52 billion in revenue, including its plastics unit, as it seeks to move away from slower-growing and more volatile market segments in favor of long-cycle businesses with global exposure, like jet engines and commercial finance.

“This review is consistent with the strategy we have been executing to transform our portfolio for long-term growth,” said Jeff Immelt, chief executive of the second-largest U.S. company by market capitalization, in a statement. He added that the $7.2 billion appliance unit, which is based in Louisville, “remains primarily a U.S. business, meaning its fortunes are tied to the rise and fall of a single market.”

While GE’s appliances unit is a relatively small slice of the conglomerate — last year it accounted for 4 percent of GE’s $173 billion in total revenue — it is the No. 2 player in the U.S. appliance industry, trailing Whirlpool Corp. It has been hard hit by lower-priced competition from Asian rivals including LG and Haier. (Reuters)

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Whirlpool Brings CE Connectivity to Refrigerators

May 16, 2008

At least two of every three consumers consider their kitchens cluttered, according to a recent survey conducted by Whirlpool.

 Whirlpool refrigerator’s centralpark connection offers consumers a solution to this dilemma with a simple plug-and-play platform for interchangeable consumer electronics devices. iGo®, a brand owned by Mobility Electronics, Inc. is the newest device partner to join the centralpark connection lineup.

The centralpark connection allows consumers to power and use consumer electronics right on the refrigerator door. The newly planned compatible device, the iGo recharging station, provides an additional option to families with varying needs.

iGo will offer a compatible recharging station that is compatible with the centralpark connection. The station will charge cell phones, MP3 players and virtually every other type of gadget, helping consumers keep their counters clear of charger and cable clutter.

The iGo gadget-charging module will be compatible with all iGo tips, allowing consumers to charge over 2,700 different gadgets with the simple switch of a tip. These tips are available online (http://www.igo.com) and at retail locations nationwide. 

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Dacor Launches Outdoor/Indoor Refrigerator

May 8, 2008

Dacor introduced its Epicure Indoor/Outdoor Refrigerator. Designed to fit under any counter in an outdoor patio or kitchen layout, the unit is 33 inches tall and 24 inches wide and will easily slide into standard cabinetry openings.

The refrigerator features a digital electronic control panel and a charcoal filter helps remove unwanted odors, while a vibration-free compressor ensures quite operation.

Available with a stainless steel door with left- or right-hand door swing options, the refrigerator is built to withstand temperatures from 50 degrees to 109F and can hold 124 cans of soda or 50 bottles of wine. 

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Maytag Announces New Steam Dishwasher

May 7, 2008

Whirlpool Corporation introduced a dishwasher that features its industry-leading SteamClean option under the Maytag brand.

With a MSRP of $599, Whirlpool says it is the most moderately priced steam option dishwasher on the market. Whirlpool acquired Maytag brand in 2006 and was the first in the industry to launch a steam option in dishwashers about a year ago.

The high-heat steam option is said to help remove stubborn residue and deliver spotless glassware and dishes on the first wash, every time.

According to a national survey Maytag conducted to learn more about dishwashing habits, more than half the respondents said they worry that their current dishwasher won’t get dishes clean enough. Of those who end up re-washing dishes, two of the top five reasons are to remove “film” residue on glassware and to remove spots on glasses, silverware and plates.

Maytag brand’s new SteamClean option adds 24 minutes to the end of the wash cycle. Here, dishes and glassware are inundated with high-temperature steam, which loosens soils — such as fruit smoothies and tomato juice — from glassware. The SteamClean option ends with a 154F rinse to wash away any remaining residue.

The new dishwasher also features a stainless steel tub interior, which retains heat for better drying and resists staining for longer wear; the Jetclean II Power Module, which features the most active spray jets of any tall tub dishwasher; and heavy-duty DuraGuard Nylon Racks, which protect dishes and glassware from scratches and damage while resisting rust. The dishwasher is also Energy-Star qualified, using less water and energy for lower utility bills. 

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Whirlpool Expands Legal Action Against LG

May 2, 2008

Whirlpool Corporation has taken aggressive, new legal steps against LG Electronics Inc., of South Korea, and its U.S. and Mexican affiliates.

Whirlpool has asserted four additional patents against LG in an action pending in Delaware district court. Whirlpool Corporation’s claims in that action state that several LG-manufactured refrigerator products imported into the U.S. infringe on these additional patents. Whirlpool is asking for injunctive relief and monetary damages in the matter.

The patents safeguard proprietary technologies associated with product reliability, performance and quality, including:

• Structure and stability of the refrigerator interior;
• Quality and performance of ice dispenser; and
• Food storage features.

“Whirlpool Corporation is again taking aggressive legal steps to vigorously protect our proprietary products and technologies from infringement,” said Phillip Pejovich, vice president, refrigeration, Whirlpool Corporation North America Region. 

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08.23.07

Are the Chinese trying to kill us?

Posted in Editorials at 7:09 am by Administrator

At first it seemed innocent enough… pet food contamination with contaminated wheat gluten and imported seafood products containing high amounts of lead. Now, a large percentage of the toys our babies play with are being recalled due to lead contamination. All from China.

Excuse me, but hasn’t lead been recognized as a pathogen when ingested since about 1952? The disturbing thing about all of this is that the Chinese may have been slipping this stuff to us slowly over the past several years in the most innocent of products. You KNOW that they were aware of the health risks, yet they intentionally allowed these products to be sold to America, maybe silently hoping that we would all sicken and die. They’ve been selling us bogus drugs on the black market for years, causing untold medical complications for unsuspecting consumers from medications which have little or no active ingredients.

This situation might have appeared as an innocent mistake, had it simply involved one or two random products. There is always going to be a certain amount of inert products in almost every food source or childs toy, but it does not have to be LEAD. LEAD is a known toxin to humans, right? Even our children are taught this at an early age, or at least I was. But when a major toy manufacturer, Mattel, was recently found to be one of the poisoning culprits, we have to ask ourselves how long this has been going on before someone finally began testing these products independently. We may have been subjected to this for many years unknowingly, causing an irreversible accumulation of poisons in our bodies. This is so serious that one of the Chinese manufacturers hanged himself in back of his shop last week.

So what do we do to protect ourselves? Stop importing things from overseas? Stop the trade with other nations that prove to be poisoning our population?

No, the issue can be treated like any other breach of our homeland’s security. As products come in, they can be tested before they are allowed to be distributed to the masses. Every single boatload & plane shipment must be carefully screened in order to catch these poisons in advance. If we can screen for explosives and nuclear threats, we can also take the time to monitor poisonous food and toy items coming into our country. They cause as much death as any terrorists bomb, maybe more, and certainly on a wider spectrum. So how do we provide better control over imported products? Our governement can and should implement a screening process for all products coming into the US, and begin a trade embargo with countries who refuse to comply with safe manufacturing techniques. You bet it might hurt the economy in some regard, but we have to decide which is more important, being rich and sick, or being careful and staying healthy.

Companies in the US, such as Purina and other pet food makers, should automatically test any product that they did not personally make themselves for purity. There is really no excuse for hundred of our pets to die before the problem is found to be a food ingredient. We have gotten far too lax in our trust of other nations with whom we do trade, and corporate greed is only the beginning of the problem. For some reason, it appears that our own government has been looking the other way. I mean, really, with all we know about chemical analysis and pathogen detection, this should have been a no-brainer from the get-go. This is not rocket science, it is basic common sense not to put poison into pet food or childrens toys.

Here are some of the latest toys which are recalled due to high lead paint content:

If you know any child who has one of these toys, take the toy away immediately.

• Disney Winnie-the-Pooh Play Sets October 2007
• Baby Einstein Color Blocks October 2007
• Target Corporation Toy Gardening Tools and Chairs September 2007
• Thomas and Friends Wooden Railway Toys September 2007
• Mattel Die Cast “Sarge” Toy Car August 2007
• Mattel/Fisher-Price Toys August 2007 (includes Sesame Street and Dora toys)
• Thomas and Friends Wooden Railway Toys July 2007

 

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01.22.07

Shaky Times in Appliance Land

Posted in Editorials at 10:00 pm by Administrator

Hello all you happy little Consumers!

It’s time to do a reality check on your appliance know-how. For example, how do you know that the foreign-made machines that you see on the sales floors will perform and be dependable like your older machines were?  Do you base your appliance knowledge on past history, such as the machine your mama had for 30 years which never gave out? Maybe it was a washer that was handed down to you when you got your own place, or one you found second-hand at a discount outlet.  Whatever the motive for selecting a new appliance, take heed on what I have to say about the new products that have been tossed out there for your perusal.

In days gone by, manufacturers would try to make the product as solid as possible. They did not want any early breakdowns to tarnish the reputation of their brand name, mainly because they wanted you back again after several years when it finally wore out, or at least you would recommend their machines to your family & friends. In the appliance market, only 4 brands stood out as popular 20 years ago. They were, in order of preference:  Maytag, Whirlpool (Kenmore), GE, and Frigidaire .  Each company had a top-end product and a low-end product, and everybody was happy. Service technicians did not have to know a lot of tricky electronics stuff, mainly because there was none. Parts for these machines were easy to get, and did not cost an arm & a leg. 

 Now, let’s jump to 1998. All of a sudden, there’s a huge influx of Asian and European machines brought into the mix, mainly thanks to Bill Clinton and the NAFTA Free Trade Agreement he sponsored.  Also, there was a major increase in appliance sales from places you never imagined…Home Depot, Lowes, Frys, Circuit City, etc., etc., etc. Hey, what happened to the Mom & Pop outfits who used to sell appliances? They began to disappear. Retailers saw the surge coming and before you can blink, all of the big-box chains were in the appliance business. The only thing they forgot was how they were going to support their customers if an appliance broke. Oops.

To make matters even worse, brands began appearing, such as LG, Miele, Bosch, Sanyo and Samsung, just to name a few. That made the service technicians cringe. (Oh, God, how are we ever going to learn all this crap?) So what we have here is a new learning curve, mainly directed at you, the consumer. You will have to learn who you can call to fix your new foreign product, who can supply the parts if you wanted to fix it yourself, and why does the machine break after only 7 months?

It’s a manufacturer’s nightmare…being bombarded by foreign products so forcefully that they have no time to field-test any new inventions, but instead putting them out there for sale and letting the buyer be the “guinea-pig”. And yes, the new stuff has lots of pretty lights and colorful wrappings to make even the fussiest consumer squeal with glee.  They are touted as ‘energy-efficient’ and ‘cost-effective’ for the average homeowner, and many of us are tempted to buy them just on appearance and brand-reputation alone. But this is where the party ends….  If a machine breaks the first year of ownership, great…it’s covered by warranty service. Of course, when the technician arrives and fixes the problem, your first logical statement will be, “I owned a Kenmore (or whatever) for 20 years and never had a breakdown, what’s up?”.  If the guy is honest, he will tell you that none of the things you were accustomed to in the past hold true any more regarding appliances. A few of them may say that the problem you are having is rare and will likely not occur again. Even more so, they might outright state that they did not make the product, they just fix them. This is a cop-out of sorts, mainly beause some of the non-factory entities have never been formally trained on the latest developments in the field. And why is this so?

It happens because we have become complacent with progress. We allow others to decide what is “dependable” and what is “efficient”, instead of insisting on durability, quality and customer service. After all, we are the ones who are spending our hard-earned money to buy products which must serve us in our daily lives, not worrying about when the thing will break or who we will call when it does. Gone are the days when an appliance dealer will come out to fix the washer he sold you. They will refer you to the manufacturer’s chosen service-provider and wash their hands of you and your problems. This places all of us in jeopardy when we buy something. They will never disclose any facts regarding service call ratios or recalls on a bad batch of models, you will simply be at the mercy of the seller.

 Fortunately for all of us, we are in a time where information flows freely and fluently online in blogs such as this one. With a little perseverance, we can weed out which products have been a blight on society and which have proven to be trustworthy and trouble-free. My recommendation is to do your homework before you commit your hard-earned money to a product which might be a big disappointment later on. Check out the brand or model in question on the Internet to learn of specific issues that others have experienced after buying a particular brand. We still have the right of free speech and unless that changes in the near future, you should be able to get a fairly un-biased opinion or two from your fellow consumers who have already been there & done that.

Now for those of you who have not had much experience dealing with the big box chains, let me present an item I received from a friend recently regarding FRY’S ELECTRONICS:

“My father Ed worked at Fry’s Electronics in Webster, TX for the last year.  About two months before my wedding (11/25/2006) my father told his supervisor he would like to get off work at 5 PM the night before my wedding (11/24) so he could attend the rehearsal, and he would like to have the 25th off so he could make it to the wedding.  His immediate supervisor simply responded with “We’ll see.”In addition to requesting that time off from his supervisor, my dad also sent a registered letter to the store manager, Adrian Ortiz, explaining the circumstance and requesting the time off.  He did get his receipt in the mail, but he was never contacted about the days off he requested.  When my dad received his schedule for that week, he was scheduled to work the Friday night and all day Saturday (14 hours), and he was given Sunday off instead of Saturday.
My fiancé and I went to the store to talk to Adrian Ortiz, the store manager, and ask him if he would consider changing the schedule so my dad could attend our wedding.  Mr. Ortiz was very disrespectful, condescending, and unsympathetic towards us from the beginning.  He informed us that no one at the store, including himself, could make changes to the schedule, and that those changes had to come from the store owner.  When we questioned that, he told us, “You can believe what you want to believe, this conversation is over!”  He did refuse to discuss my dad’s schedule with anyone but my dad, which is understandable, however I did question whether or not Mr. Ortiz had read my dad’s letter and if he did anything with it.  He told me he forwarded it on to the store owner, but there was no way to check on the status of the request.  Since nothing came back from the owner, my dad was not given those days off to see his oldest son get married.  Mr. Ortiz repeated again, “This conversation is over!”, and turned around and walked away.  
My dad chose to quit so he could attend my wedding, and he is no longer employed at Fry’s.  I’ve never been spoken to in the manner that Mr. Ortiz did, and I can’t imagine how he treats his employees considering how poorly he treats his customers.  It’s sad to think he is the store manager of a customer based business.  From now on when you have an electronics purchase to make, I urge you to consider NOT giving Fry’s your business.  If you feel the same way that I do, please feel free to send this article to your friends and family.  Thanks for taking the time to read this.”
 Sincerely, Michael Marici

I, for one, might take my business to Best Buy, as they will meet Fry’s prices most of the time.

VR

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