07.19.08

How the I.R.S. stole my Stimulus check….

Posted in Uncategorized at 6:03 am by Administrator

How It Began-
As the economy was beginning to show serious signs of deterioration last year, particularly in the housing market, President Bush promised every person who files a tax return in 2008 a check for $600. Married couples would get $1200. I felt that this was a particularly nice gesture, since my wife and I had to extend our tax payments this year and were on a monthly program of installments. We even got a letter from the US Treasury a week before the check was to be cut, assuring us that we have indeed been approved for the $1200 payment. Granted, this is by no means a windfall profit, but would certainly relieve us of a couple of bills or pay for $4/gallon gas to get to work.

What Happened Next- 

On July 5th, the due date for the check, we got a different letter from the IRS stating that they had applied our Econmic Stimulus check to our past due tax debt instead!!  How convenient for them that the President has apparently given them free reign to collect anyone’s check who owes them money, even though we entered into a written agreement with them previously to make payments on time and have done so. This was not merely a Gentleman’s Agreement, which is an honourable practice in itself, but a formal contract which was approved by them to begin with. They deliberately took this gift from our President and put it in their own bank account without having me so much as sign it. Hell, I didn’t even get to look at it, much less authorize it.

Does this sound like a fair way to treat a US taxpayer?

Why do I feel like a donkey who has been led around by a carrot?

 

Here’s The Rub- 

When President Bush  came on TV and made a big to-do about how this was going to stimulate the economy and that we should use the money to buy something we otherwise might not afford, I got faintly excited. For once, my government was going to do something nice for me in the form of cash. The President even said on the broadcast that everyone who filed an income tax form this year would get paid. He did not say that this was contingent on any monies owed. Since we had been making very timely payments on our taxes owed, I was excited to finally have a little extra money, even if I wanted to use some of it to pay on the tax owed. That’s the rub…I never got a choice in the matter. I never got to see my money at all. The economy was not stimulated. The only money that changed hands went from the government’s left hand into its pocket again.

 My sentiment is this…if the President had intended to provide the American taxpayers with some relief, he has failed. If he really intended to utilize this gift as a ploy to embellish the US Treasury by questionable business practices, then he is an utter success. Unfortunately, the US economy will see little or no relief at this rate.

 Thanks for nothing, Mr. Bush. Next time you want to dangle a carrot like this, at least let me see the carrot first!

 

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06.11.08

Appliance News For June 2008

Posted in Uncategorized at 5:56 am by Administrator

LG Will Clean Up, With or Without GE

Business Week-     Korea’s LG Electronics could win GE’s appliances unit and get within reach of No. 1 Whirlpool. But LG’s organic growth is noteworthy, too.

Ever since General Electric (GE) revealed plans to put its appliances business on the block May 16, Korea’s LG Electronics has been on most everybody’s short list as a potential buyer. While visiting Seoul on May 28, GE Chief Executive Officer Jeffrey Immelt further fueled the speculation by praising the Korean company as a potential buyer of GE Appliances. LG is “clearly one of the leading candidates,” he said during his short visit. Calling LG “a great company,” Immelt said “there are many things to be admired about a combination of LG and GE Appliances.”

Best known as the maker of cheap microwave ovens and toasters a decade ago, LG has emerged as the world’s No. 3 manufacturer of white goods after Whirlpool (WHR) and Electrolux (ELUX). It’s also a top name in mobile phones (BusinessWeek.com, 4/30/08). It won’t get GE Appliances without a fight, of course. Others on Immelt’s list are China’s Haier Group, Mexico’s Controladora Mabe, Turkey’s Arcelik and Stockholm-based Electrolux. Even if one of those other companies ultimately wins GE Appliances, LG is poised to challenge Whirlpool for the top spot in the global households business for years to come.

The Korean company has had the world No. 1 title in its sights for a while. Until Whirlpool took over Maytag in 2005, giving the Americans a big boost, LG had plans to seize the leadership in the industry by 2010. The Maytag deal put Whirlpool out of reach, but LG now could come close to realizing that ambition by acquiring the GE unit. LG’s global appliances sales last year of $12.6 billion, when combined with GE’s $7 billion or so, would roughly match Whirlpool’s $19.4 billion and place it well ahead of Electrolux’ $15.6 billion. “The GE unit will certainly whet LG’s appetite,” says Michael Min, electronics and tech specialist at fund manager Tempis Capital Management. “The question is pricing and terms.”

GE’s Move Will Be a Game-Changer

GE put the appliances business on the block earlier this month in the face of calls to speed up divestitures of slower-growing units. Last week, Immelt told investors that the Fairfield (Conn.)-based company may also bundle more slow-growing businesses into a possible spinoff of the century-old appliances division.

LG acknowledges that GE’s divestiture could shake up the industry. “We are closely following the situation as it will have a significant impact on the global appliances industry,” LG Chief Executive Officer Nam Yong told reporters on May 27. The next day, when the authorities of the Seoul bourse queried, LG responded that it had not decided whether to bid for the GE unit.

GE’s well-established brand name could be appealing to LG, which is campaigning to break into the big leagues in the U.S. While exports account for 77% of the Korean company’s overall sales of refrigerators, air conditioners, washing machines and other household appliances, it only began selling those goods under the LG brand in the U.S. in 2003. In contrast, GE’s appliances division is the biggest provider of refrigerators, ovens, and dishwashers for newly built U.S. homes. 

Price Considerations

Nevertheless, many analysts are skeptical LG executives will be getting their hands on GE’s appliances business. “GE’s unit would be a great asset for LG only at a right price, but the price tags widely talked about now are too high for LG,” says electronics analyst Kim Ik Sang at brokerage CJ Investment & Securities. Several U.S. analysts have estimated the GE business at between $4 billion to $8 billion. “I think LG will probably be interested at a price of at around or below $3 billion,” figures Kim.

LG would be prepared to walk away from a deal, according to Kim and other Korea-based industry watchers, because it has already laid the basis for organic growth. They point out that the bulk of future growth in sales will likely come in emerging markets where LG produces some 70% of its appliances. Consider, for instance, India. There LG hopes to hit revenues of $3.8 billion in 2010 (the figure includes sales from TVs and handsets as well as appliances). The Korean company already enjoys No. 1 market share in India for refrigerators, washing machines and air conditioners—each accounting for a quarter of the country’s sales.

Success in the more mature U.S. market would, of course, be harder to achieve on its own. Still, in the U.S., LG has made remarkable progress in the past four years with its strategic focus on premium segments. The Korean maker has targeted consumers willing to pay a few hundred dollars extra for snazzy designs and high performance (BusinessWeek, 10/30/06). LG’s sleek washing machines, for instance, last year commanded a 22.8% share of the market for more expensive front-loading washers priced at up to $2,500. That’s up from only 6% three years earlier, according to the Stevenson Co., a researcher specializing in consumer durables.

One top LG seller is the Tromm, an energy- and water-saving washer equipped with a “refresh” function that uses steam to remove odors and wrinkles from clothes. To appeal to design-conscious consumers, the machine comes in such colors as titanium, blue, and what LG calls “wild cherry red.” LG’s Whisen air conditioners, meanwhile, are thin enough to hang on the wall and double as picture frames. LG’s overall U.S. appliances sales reached $2.88 billion last year, almost tripling 2004’s total.

Seeking More Sales to Businesses

A weakness of LG’s appliances unit is its poor presence in the lucrative sector of air conditioning systems for business users. LG’s Nam has admitted that his company must find a way to reduce its reliance on consumers for the air conditioner business. “GE can certainly improve LG’s air conditioning systems business but a better and cheaper deal would be a purchase of a smaller company specializing in that segment,” says Jason Kang at Daewoo Securities in Seoul.

One area of strength for LG is its relatively high margin in the cut-throat appliances industry. Its operating profit margin of 6.1% last year was slightly higher than that of Whirlpool (just below 6%) and Electrolux (below 5%). Both Kang and CJ Investment’s Kim expect for this year a similar profit margin and a sales increase of around 10% from LG’s appliances business, which along with the handset unit are the company’s main money spinners. “Even if LG decides not to buy the GE unit, it will be a major force in the industry in the foreseeable future,” says fund manager Min at Tempis. 

 

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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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03.15.08

Using the Auto Dry cycle to your advantage

Posted in Uncategorized at 6:22 am by Administrator

Drying clothes is a fairly simple operation. Toss in the load and set the machine to dry, and presto! How you set the controls can make a difference in not only your drying times, but can also  affect the amount of energy that is used during the cycle. If you have been accustomed to drying on a Timed cycle (30,40, 60 mins, etc.), chances are that you are wasting energy by running the dryer longer than necessary to actually dry the load.

The difference between the Automatic cycle and the Timed cycle is the addition of a sensor to monitor the drying progress of the load. By using Auto-Dry cycles, the dryer will only run as long as necessary to dry the load. On Timed cycles, the dryer must run the specified time programmed regardless of when the load actually became dry. In many cases, this results in over-drying the clothes and consuming more power than is required for the task. You will have lower energy bills and probably shorter drying times by using only the Automatic cycles to dry clothes.

As with any new feature, there are things which can complicate the Auto-dry process. If the dryer is not vented properly or restrictions exist in the vent run, the Auto dry cycle may take longer than necessary to dry the load. For this reason, it is important to keep the exhaust system clear. Yearly maintenance of the vent is required to keep the dryer happy and trouble free. You now have your choice of tools to help with this process, some of which are featured here on the website.

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06.21.06

Moving & shipping major appliances

Posted in Uncategorized, General Tips at 6:55 am by Administrator

The transportation of major appliances can go a lot more efficiently if a few preparations are made for the trip. The most common appliances which are shipped are Ranges, Washing Machines, Dryers and Refrigerators. Let’s start with the preparation of free-standing ranges:

Ranges should be shipped with the steel grates removed from the top and placed in a flat box inside the baking chamber of the oven. Any burner caps which might be on the cooking surface that are removable should also be placed in the interior with the grates, along with any gas line connectors from behind the appliance which you want to ship with the product. All oven racks should be moved to the lowest possible position, and a small towel can be draped over the end of the rack at the front before you close the door. This will prevent the racks from bumping against the front door during transport. The door should be taped shut on both sides using a sturdy grade of duct tape.

Refrigerators need to have the interior shelves secured during transport to prevent damage. If you did not keep the small plastic shelf-locking tabs which came with the product when it was new, it’s best to remove the shelves and ship them separately, especially the glass items such as crisper covers, etc. One bump in the road can completely de-shelve a refrigerator if the shelves are not secured. If the refrigerator has a removable drip pan underneath, it should be placed inside the unit or taped securely in place before transport. The doors should be taped shut as well as the toe-plate at the bottom of the unit. Any icemaker plumbing connectors or water line tubing in the back can be placed in an empty crisper drawer if needed at the new location. Refrigerators may be placed on their back or sides for transport, but must be stood upright for 24 hours afterward before plugging it in to allow the refrigerant oil to migrate back to the compressor.

Clothes Dryers do not require much preparation, but power cords and/or gas lines should be removed and placed in the drum for transport. This includes any special ducting that you might want to use at the new location. The door and any external lint screen covers should be taped shut.

Washing machines should have all external hoses removed and placed in the spin basket for transport. It is also important to stabilize the wash tub to prevent damage from movement during transport. Most machines came with some sort of block placed inside the basket to retard movement until unpacked, although many installers throw these away.  A simple wood plank cut to fit the inner tub diameter and taped in place across the top of the agitator should be sufficient to protect the machine. The lid should be taped down before moving the machine.

NOTE:  Duct tape will not harm the finish on your appliances, but in some cases may leave a slight residue. To remove this, use rubbing alcohol or a product such as Goo-Gone to remove the adhesive marks.

 

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