seffieandcoco

Why GE's Selling Its Appliance Division

I think the commenter on the Appliance Park wages hit it on the head. GE should stay in the appliance business from a historical and ethical and patriotic standpoint. We do not need to create more McJobs....but the wages and benefits for GE employees are huge....I have seen it first hand......and when you add worker's comp and the litigation and the fact that our comp laws are so liberal that the normal ageing process gets stuck on GE's bill,,,,
Haier can buy it and make the appliances in China and ship them here for a lot less than it costs to make them in Louisville......or if shipping is an issue Haier can make them in Mexico and ship them across the border. Politically GE can't do that. So the sale is really about politics and PR. They know that something has to be done drastically but they just can't, as an American icon, do the dirty work themselves.