Sunday Sep 7 2008
All times are London time

Search Quotes in the FT.com site
FT Logo

May 16th, 2008

A great American brand name for sale

What price the General Electric name? Pretty high, I would suspect, and extremely tempting for an Asian manufacturer of washing machines and air conditioners that wants to build a global business.

GE confirmed this morning that it is “reviewing strategic options” for its consumer appliances division. I guess that, in this context, “reviewing strategic options” must mean “selling, but perhaps holding on to a little stake”.

Its reasoning is interesting because it tells you all you need to know about how Asian manufacturers now dominate the consumer appliance market. Here is part of Jeff Immelt’s statement:

It remains primarily a U.S. business, meaning its fortunes are tied to the rise and fall of a single market. We want to make this good business great again by finding the right strategic solution – a solution that will give Appliances the global reach and investment required to compete more effectively.

This is one of those statements that makes a great deal of sense looked at from one perspective, and no sense whatever looked at another way.

(more…)


More FT Blogs and Forums

  • Clive Crook's blog The FT's chief Washington commentator blogs about intersection of politics and economics

  • Economists' Forum Leading economists and the FT's chief economics commentator, Martin Wolf, debate the big issues

  • Gadget GuruThe FT's personal technology expert Paul Taylor answers your gadgetry questions

  • Margaret McCartney's blogA forum by GP and FT opinion columnist on healthcare issues

  • Gideon Rachman's blog The FT's chief foreign affairs commentator on world issues and his travels

  • The Undercover Economist Tim Harford's blog on economics in everyday life

  • Willem Buiter's Maverecon The LSE professor blogs on 'economics, politics, ethics, religion, culture, free and open source software (FOSS), and whatever'

  • Management Blog A forum for the latest thinking about the issues that preoccupy managers around the world

  • FT Alphaville Instant market news and commentary for finance professionals

  • Brussels Blog By our Brussels writers

  • Westminster Blog By our UK Parliament writers

  • Dear Lucy Columnist Lucy Kellaway and readers solve your workplace woes

  • FT Tech Blog Our San Francisco and world correspondents look at the intersection of technology and business