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    News Update:

05/15/08: GE May Sell or Seek Partners for its Appliance Biz

02/26/08:GE refrigerator plant in Indiana to close

02/21/08:Potentially shocking gas dryers are recalled by General Electric

02/21/08: Sears’ recall to fix ranges that may tip

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GE May Sell or Seek Partners for its Appliance Biz
    It was widely reported on May 14 that General Electric Co. may sell, spin off or seek a partner for its major appliance business, ending more than 120 years in the business that helped it become a household name in the U.S.
   GE hired Goldman Sachs Group Inc. to explore options and conduct an auction. Earlier, The Wall Street Journal speculated that a sale may bring in $5 billion to $8 billion. CEO Jeffrey Immelt is committed to disposing businesses that aren't growing fast enough to help the company reach its goal of 10-percent annual profit growth.
   GE Appliances, based at Appliance Park in Louisville, provided about $7.2 billion of GE’s total $172.7 billion in sales last year. The business employed about 13,000 of the firm’s 327,000 workers at the end of 2007.
   Among potential bidders for the business are several foreign firms, including Bosch of Germany, Haier of China, and LG of South Korea.

GE refrigerator plant in Indiana to close
General Electric announced in January that it planned to close its
Bloomington, Indiana refrigerator plant in 2009 due to losses of some
$45 million last year and an expectation of similar losses this year.
     Officials cited declining sales of side-by-sides and rising material
and labor costs.
     The plant, part of the company’s Louisville-based Consumer and
Industrial division, employs about 900 people. GE has said about 60
percent of the workers are eligible to retire.
     Workers must wait a few more weeks to learn more about transfer
options and benefits. Details won’t be available until a 60-day
bargaining period ends March 17. The period allows time to propose
ways to save the plant. Union President Bill Mitchell said he has
received little input on money-saving suggestions. He said it’s
difficult to make enough cuts because sales are down and competition
for appliance models the plant makes has left the country.
     Meanwhile the Associated Press reports that some employees are
pleased that GE gave them some time to figure out their future. One
said that the notice of nearly two years “was generous on their part.”
Work has slowed at the plant, which is typical in winter. Employees
had one week off in mid-February, and said they’ll be off two weeks
next month.

Potentially shocking gas dryers are recalled by General Electric
A shock hazard has prompted the recall of about 2,100 late-model gas
laundry dryers by GE Consumer & Industrial.
     Engineers have discovered that the dryer's wiring could develop a short circuit that could expose users to an electrical shock when touching these dryers that are not properly grounded. No reports of the hazard occurring in the field were reported as of mid-February.
     The recalled products are model DWXR463GGWW with serial i.d.Õs AM, TL, SL, VL and ZL, which can be found by opening the dryer door and
reading the plate on an exposed area above the portal. All recalled dryers were sold from September 2006 to October 2007.
     Owners are asked to stop using the dryer, to unplug it, and to phone
1-866-324-3732 to arrange for a free in-home correction by authorized
servicers.

Sears recall to fix ranges that may tip
     Sears has agreed to a $546 million recall that will fix household ranges that can tip over onto people, it was announced on February 20.
     Since 1980, some 33 persons have been killed and 84 have been
injured in accidents involving unsecured stoves, which can crush,
scald or burn children who tug on them or people who place heavy
objects on open oven doors. (The settlement doesn’t include
individuals with potential claims against Sears for personal injury,
wrongful death or property damage caused by stoves that tipped over.)
     Under the settlement, consumers who purchased a range from Sears and had the company install it between July 2, 2000, and Sept. 18, 2007, are entitled to have a Sears technician install a range stability
device. Or they can choose to receive a $50 gift card for use toward
purchase of a new Sears range.      People who installed brackets on their own are entitled to reimbursement up to $100.
     In a press conference, consumer advocacy groups said that Sears,
manufacturers and the government have known about this potential
danger for more than 20 years, according to documents from the
Consumer Product Safety Commission. Manufacturers began using lighter- gauge steel in the early 80s to reduce costs. The change resulted in a tendency for lighter-weight appliances to tip over when weight was placed on the oven door.
     Reports of severe accidents caused industry-standard organizations Underwriters Laboratories and the American National Standards Institute to develop national, voluntary safety standards that require electric and gas ranges manufactured after 1991 to remain stable when 250 pounds of pressure is applied on the oven door for five minutes.
     The standards also require sellers to install anti-tip brackets that manufacturers agreed to supply, but the consumer groups said that
retailers rarely install the brackets.      Even though retailers are all
aware of the safety hazard, the delivery people they contract with
often are not equipped or trained to perform the installation
service. Sales people also rarely mention the issue to the buyer,
which means most homeowners have no idea that the stove they just
purchased and installed could be unstable.
     Since the settlement does not include people who bought similar
stoves from other companies, the consumer groups said they will
petition the CPSC to extend the recall to millions of stoves installed by other retailers. The group will also ask the agency to issue a public alert and a safety standard to prevent tip-overs.
     Visit www.searsrangesettlement.com for more information.
   

01/19/08: NEW acquires ServiceBench

N.E.W. Customer Service Companies, Inc., a provider of extended service plans and buyer protection programs for consumer products, announced on January 16 its acquisition of ServiceBench, a provider
of Web-based service management solutions for U.S. retailers and manufacturers. The combined capabilities of the two companies provide turn-key solutions for developing, implementing and managing customer care and warranty programs.
     “Bringing ServiceBench into the NEW family is a win for everyone,” said Tony Nader, CEO of NEW. “As long standing partners of ours, ServiceBench brings NEW broader client solutions as well as a robust
technology platform from which to manage and deliver exceptional service. Additionally we are combining our deep understanding of
retail and the delivery of exceptional customer service with their
manufacturing relationships and technological power. This unique
combination will allow NEW to continue to raise the bar in service delivery and expand our value throughout the entire service delivery lifecycle — ultimately leading to a better experience for the consumer.”
     Founded in 2000, ServiceBench is a privately-held corporation based in Fairfax, VA. that started as a developer of Internet
business-to-business e-commerce and extranet systems and quickly grew into one of the world’s most successful on-demand partners for integrated service supply-chain solutions. ServiceBench helps increase customer satisfaction and reduces costs for manufacturers, retailers, extended warranty providers, parts distributors and service providers in several industries including appliances, consumer electronics, computers, HVAC, plumbing, outdoor power
equipment, food services and construction.      The company supports leading global retailers and manufacturers including Electrolux, IBM, Mitsubishi, Samsung, Sears and Whirlpool — and executes more than 40
million service transactions per year.
The online software applications developed by ServiceBench work together to fully integrate the client’s complete range of service management activities including service call management, field service management, parts management, claims management and service contract management. Each solution includes service intelligence analytics that mine data for strategic information to improve service
processes, increase the dependability of products and reduce operational costs. For example, ServiceBench’s claims recovery
solution provides added value for clients through its warranty claims tracking system that filters repair claims and determines what amount is financially recoverable, resulting in millions of dollars of potentially “found” income for retailers.
     ServiceBench has been recognized by Deloitte & Touche as one of the 500 fastest growing technology companies in North America, has been named in the Washington SmartCEO Future 50 and has been listed by
Manufacturing Business Technology magazine as one of the top 40 emerging software companies.
     “We are incredibly excited to add our client roster and suite of services to the NEW family,” says John Estrada, ServiceBench COO. “NEW has led its industry in every major innovation for the past 25 years, and we look forward to applying our expertise in technology- based service management systems to offer its clients and customers the broadest available range of warranty services and help drive its future leading-edge initiatives.”
     ServiceBench has 110 employees located at its headquarters in Fairfax, VA, an office in Columbia, MD, and its European headquarters in The Netherlands. NEW has more than 3,700 employees located across
the U.S., Canada and China. NEW provides extended service plans, buyer protection services and product support to more than 100 million consumers worldwide. Founded
in 1983 with headquarters in Sterling, VA, NEW provides post-sale consumer care for leading retailers, consumer service providers, wireless carriers and financial services firms.

 

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