General Electric to Sell Appliances Unit
GE may no longer be putting its "imagination to work" on your household appliances.
Even though it is only a small part of General Electric's $173 billion organization, the announcement of the intended sale of GE's appliance business, or "white goods" unit is emotional. For over 100 years GE has been in American homes. Refrigerators, freezers, electric and gas ranges, dishwashers, clothes washers and dryers, microwave ovens and air conditioners, have been sold under brands including GE Profile and Hotpoint.
But today, GE did indeed announce plans to start an auction for its appliances business. The Wall Street Journal is reporting that GE hired Goldman Sachs to run an auction for the appliances unit, which could fetch between $5 billion and $8 billion.
GE entered the appliance business in 1907 and boasts of milestones such as introducing the first room air-conditioner in 1930.
Good for GE! It's a sign of a well run company that when it loses its innovation edge, and can't discern a way to maintain growth, it sells the business to someone else. GE needs to keep focused on its growth goals, and if the appliance unit management can't figure out how to do so then GE owes it to employees, suppliers and investors to put its resources into better returning opportunities. Read more at http://www.ThePhoenixPrinciple.com
Posted by: Adam Hartung | Thursday, May 15, 2008 at 11:22 AM