Whirlpool Corp. (Benton Harbor, MI) reported that the United States District Court in Chicago refused to award any relief to LG on the last remaining claim in a lawsuit filed by LG in 2008. The Court found that “Whirlpool has established that its dryers do, in fact, use steam” and that “LG did not introduce expert testimony or credible evidence of even a single Whirlpool customer, retailer, or trade representative who expressed confusion.” The court’s decision follows an October 2010 jury verdict that favored Whirlpool, and marks the third time in just over a year that Whirlpool has prevailed against LG in court.

LG’s lawsuit sought to ban Whirlpool from using the word “steam” to describe its steam dryers. Whirlpool proved to the Court and jury that its steam dryers, made in its Marion, OH factory, do in fact use steam. Whirlpool’s technology combines existing heat resources with an automatic water mist to create steam inside the dryer drum. At trial, Whirlpool demonstrated how its one-touch steam design was different from the LG system, which uses a manually filled external water cartridge that must be replenished with cold water prior to use. “This decision by the Court” said Marc Bitzer, president, Whirlpool North America Region, “confirms the jury’s verdict that consumers want choice and the kind of innovative laundry solutions Whirlpool has provided for 100 years. Our steam dryers, which provide more convenient steam performance and consumer benefits, are a perfect example of our leadership. This victory means consumers will continue to have a choice in purchasing their steam laundry appliances.”

All in all I have enjoyed my 16 years of service to the online community and want to thank those of you for your kind remarks and support. I will not be around to do this much longer, but thank you again for all your support and rest assured that I will continue to help as long as I can.

Thought I’d share a springtime photo of the Texas Hill country in the spring time. What you see is a swath of our native plant the Bluebonnet, lining the roadways. Quite a sight as I make my service rounds daily.

Haier reported its net profit up 20.6% last year, thanks to the Chinese central government’s initiative to subsidize purchases by rural residents. The group’s turnover increased 8% to 122 billion yuan (approx. US$17.8 billion) last year. Sales in overseas markets rose 9.8% year on year. Haier said it sold 1.2 million units of home appliances. It has 21,000 outlets in Chinese townships and 73,000 sales points in villages.

This brings up an interesting idea…why do we not have such a program in effect here? Goverment subsidies  for purchasing American products. Hm-m-m…

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!

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. 

For current appliance news, visit my Help Forum.

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. 

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.

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