GE Considers Selling Appliance Division
RENEE MONTAGNE, host:
And you might not be seeing that iconic GE logo on fridges and stoves for much longer. That's because General Electric is thinking of selling off its century-old appliance division. NPR's Adam Davidson has the story.
ADAM DAVIDSON: Here's the problem. GE has become one of the world's most global companies. It has business everywhere. So if Latin America isn't buying enough power plants, Asia might pick up the slack by grabbing a few aircraft engines. GE has found that being global is the way to make a steady profit. And then came last month, when GE reported its worst earnings in decades. It was humiliating.
Seems that GE had become captive to a slowing U.S. housing sector, so it decided to get rid of businesses that are too dependant on one country - this country, the United States. And most of GE's appliances are sold in the U.S. Selling it completely is just one of the options. GE says it's open to all sorts of ideas, like a partnership or co-branding, so long as GE doesn't have to make fridges or dishwashers anymore.
Many on Wall Street think the appliance division is only the first one GE plans to get rid of. Another division that may be too dependant on the U.S. market: NBC-Universal, the TV and movie company. Adam Davidson, NPR News.
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