Attention Majap Dealers: GE Is Not Going Out Of Business
Apparently, some folks out in white goods land have interpreted GE’s planned divestiture of its majap division as a going-out-of-business sale.
Dave Bilas, sales VP at GE Appliances, tells TWICE that misinformation to that effect has been circulating throughout the industry.
"The truth is quite the opposite," he said. "We are exploring strategic options that will help grow this business, both globablly and in the U.S."
As TWICE reported, and Bilas reiterates, strategic options for the majap unit could include a strategic partnership, joint venture, spin-off or sale of the business. The process, which is expected to conclude by the end of the year, is being led by appliance chief Jim Campbell, who along with Bilas and the rest of the management team is part of the package.
Bilas wants to assure his customers that GE “will stay focused on providing excellent service during this period and in the future, regardless of a new owner,” and that it will continue to honor and fulfill all warranty obligations and service contracts; that all customer, supplier and distributor agreements will remain in place; and that its factory service and distribution network will continue to “provide services that drive customer satisfaction.”
Bilas said GE will strive to keep our readers updated as events unfold and as information becomes available. As will we.
Bill Penn commented:
With GE missing its profit target for the first quarter, exiting
slow-growing product lines makes sense from an investor standpoint.
I'd expect a JV to be a better solution than an outright sale,
because that way GE could still have its hand in product
fulfillment and logistics management. Their delivery system seems
the best of the majap manufacturers I've encountered, and there's a
chance that a buyer wouldn't continue to commit the same resources
to the supply side of the business.
Bill Penn commented:
WERNSING'S APPL. & VIDEO commented:
I remember Jeffery Immelt speaking to we Brand Source dealers just
two years ago at our Las Vegas Convention. He told Bob Lawrence and
the rest of us in the audience that GE would not sell off the
appliance division because it meant far too much to corporate for
the positive advertising that the appliance division creates, and
Jeffery came from the appliance division. What a difference several
years makes. Big Ed Wernsing Wernsing's Appl. & Video
"Beautiful downtown Litchfield and Carlinville, IL"
WERNSING'S APPL. & VIDEO commented:
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