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05/21/08:
Update on GE
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
Update on GE
The Wall Street Journal reported on Thursday, May 22: At an
electrical-products conference in Florida on Wednesday, Jeffrey
Immelt, GE’s chief executive, said that the option of
spinning-off the appliance division instead of selling it outright
has some advantages.
“It may really render itself
for a spin,” he said. “The spin option might give
us the opportunity to do it in an invester-friendly way.”
Immelt advised that there has
been no shortage of inquiries from
potential appliance division buyers and that most of those potential
buyers were outside the U.S. He also said that a sale or spinoff
would likely take place early in 2009, but could happen more
quickly.
Keep watching the ASN
Web site for late-breaking news about further developments in
this story and especially how this sale or spinoff might affect
the GE factory service segment and the independent servicers
who continue to perform warranty work for GE products.
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.
(top)
11/22/07:
Direct Energy enters the major appliance service industry
11/22/07: Electrolux wins Dow Jones
award
11/22/07: Service USA Regional Service
Meetings
A review of the two recent
successful RSM’s in Maryland and North Carolina
by Captain Toolhead
11/22/07: Eight more
students pass national appliance repair exams
11/22/07: Whirlpool
named one of the
Top Companies for Leaders
General
Electric recalls microwave combo wall ovens due to fire hazard
The U.S. Consumer Product Safety
Commission, in cooperation with GE, has announced a voluntary
recall of about 92,000 built-in combination wall and microwave
ovens. Consumers should stop using recalled products immediately
unless otherwise instructed.
The door switch in these units
can overheat and ignite plastic components in the control area,
posing a fire hazard to consumers. The lower thermal oven does
not pose a hazard.
GE is aware of 35 incidents of
minor property damage and one incident in which a fire damaged
adjacent kitchen cabinets. No
injuries have been reported.
The recall includes GE combination
microwave and conventional built-in wall ovens sold under the
following brand names: GE, GE Profile and Kenmore. The ovens
were sold in white, black, bisque and stainless steel. The brand
name is printed on the lower left corner
on the front of the microwave door. The following model and
serial numbers can be found inside the microwave oven on the
left interior wall.
Recalled models serial number
begins with: GE / GE Profile
JKP85B0A3BB, JKP85B0D1BB, JKP85W0A3WW, JKP85W0D1WW, JKP86B0F1BB,
JKP86C0F1CC, JKP86S0F1SS, JKP86W0F1WW, JT965B0F1BB, JT965C0F1CC,
JT965S0F1SS, JT965W0F1WW, JTP85B0A2BB, JTP85B0A3BB, JTP85B0A4BB,
JTP85B0A5BB, JTP85B0D1BB, JTP85W0A2WW, JTP85W0A3WW, JTP85W0A4WW,
JTP85W0A5WW, JTP85W0D1WW, JTP86B0F1BB, JTP86C0F1CC, JTP86S0F1SS,
JTP86W0F1WW, JTP95B0A2BB, JTP95B0A3BB, JTP95B0A4BB, JTP95B0A5BB,
JTP95B0D1BB, JTP95W0A2WW, JTP95W0A3WW, JTP95W0A4WW, JTP95W0A5WW,
JTP95W0D1WW, AZ, DZ, FZ, GZ, HZ, LZ, MZ, RZ, SZ, TZ, VZ, ZZ,
AA, DA,
FA, GA, HA, LA, MA, RA, SA, TA, VA, ZA, AD, DD, FD, GD, HD,
LD, MD,
RD, SD, TD, VD, ZD, AF, DF, FF, GF, HF, LF, MF, RF, SF, TF,
VF, ZF
Kenmore (all model numbers start with 911) 41485991, 41485992,
41485993, 41485994, 41489991, 41489992, 41489993, 41489994,
49485992,
49489992, 47692100, 47699100, 47862100, 47869100, 47812200,
47813200,
47814200, 47819200, 47792200, 47793200, 47794200, 47799200 0,
1, 2, 3
Sold at: Department and appliance stores from January 2000 to
December 2003 for between $1,500 and $2,000.
Consumers should stop using the
microwave oven immediately. Consumers should contact GE regarding
their GE/GE Profile micro-oven combo or Sears for their Kenmore
unit. GE is offering a free repair or rebate on a new product,
a $300 rebate toward the purchase of a new GE brand unit, or
a $600 rebate toward the purchase of a new GE
Profile brand unit. Sears is offering a free repair or $300
rebate toward the purchase of a new Kenmore brand unit. Consumers
can
continue using the lower thermal oven.
For additional information on
GE /Profile units, contact General Electric toll-free at (888)-240-2745
from 8 a.m. to 8 p.m. ET Monday through Friday, and 9 a.m. to
3 p.m. ET Saturday, or visit GE’s Web site at www.geappliances.com.
For additional information on
Kenmore
units, contact Sears toll-free at (888) 679-0282 from 8 a.m.
to 10 p.m. ET Monday through Saturday, or visit Sears’
Web site at
www.sears.com
11/22/07:
Direct Energy enters the major appliance service industry
Direct Energy,
one of North America's largest energy and energy- related services
providers, has entered the major appliance repair business through
two acquisitions. First, the company purchased the in-home appliance
service business of GE factory service in Canada (Mabe, formerly
Camco). Subsequently, Toronto's Factory Appliance Service was
acquired to expand operations in Canada's largest city.
Providing solutions for customers
on energy products and services is
part of the company's overall plan. Having made a significant
investment in infrastructure to provide good service, adding
appliance repairs was a good fit with the existing business.
"As an independent
company we experience the benefits and challenges of being a
truly stand-alone business, only on a larger scale than some
others," says Lee Rose, senior v-p of Direct Energy Essential
Home Services. "Since we aren't a division of an OEM, a
retailer or a utility that can supplement the business, we must
run it profitably. Profits can't be earned by delivering poor
service, and we also understand that exceeding customer expectations
is essential for success."
The Factory Appliance Service
brand will remain intact in order to build on the positive brand
awareness and goodwill established over
23 years. Paul MacDonald, its founder, will focus on expanding
the business while the Direct Energy infrastructure supports
its daily
operations.
"With the new resources and
capital available, my technicians' productivity will improve
and their futures are secured," said
MacDonald. "Like me, several of the senior leaders in Direct
Energy are service industry veterans who truly understand what
it takes when it comes to providing service that exceeds consumer
expectations. The
company is investing to build a well-trained, professional workforce
across Canada."
In addition to appliance repair
and installation, Direct Energy has a proven track record in
sales of heating and cooling systems,
installation, service, plumbing, home improvements, and the
delivery
of energy. Direct Energy is Canada"s 43rd largest company
and is owned by Centrica PLC in the UK, the parent of British
Gas.
Direct Energy is an active member
of USA and NARDA and is the lead sponsor of SRC08 (Service &
Retail Convention). The company also supports the USA &
Brand Source Service regional service meetings
around the U.S.
To learn more about the company:
www.directenergy.com.
(top)
Electrolux
wins Dow Jones award
For the eighth year since its inception in 1999, Electrolux
has been included in the Dow Jones Sustainability Index. The
index is based on
long-term economic, environmental and social performance among
10% of the world's 2,500 largest companies.
"Making money and running
a sustainable business go hand-in-hand,"says Electrolux
president/ceo Hans Stroeberg. "There is a consumer
demand for products that meet high sustainability standards.
Consumers are willing to pay more for such products. We are
very proud to meet the requirements of the Dow Jones Sustainability
Index, especially since the criteria are getting tougher every
year."
Electrolux is the only major household
appliance company included in this year's index.
(top)
Service
USA Regional Service Meetings
A review of the two recent successful RSM’s in Maryland
and North Carolina—by Captain Toolhead
“Building confidence through knowledge with technical
and business management training for success” That is
the basic theme, reason and goal of all the USA Regional Service
Meetings that have occurred over the past five years of phenomenal
growth.
General RSM information
The attendance was wonderfully large for these two meetings
in Maryland and North Carolina with between 60 and 70 attendees
at each.
The roundtable discussions began
the evening prior to the events and the next day included both
technical and management training. The nominal servicer fee
was set by the sponsoring parts distributor and includes roundtable
attendance, all training, and luncheon on the training day.
Also included in the fee is a one-year regional membership in
the United Servicers Association. Membership cards/ certificates
and professional training certification awards are given to
each participant.
Mid-Atlantic RSM, sponsored by
Trible’s Appliance Parts, Upper Marlboro, Maryland, was
the site of the first Fall 2007 Regional
Service Meeting sponsored by Trible’s Appliance Parts.
A large group was registered with a lively, interactive roundtable
discussion on September 26 and technical training and service
business management sessions on September 27.
The event was held at the state-of-the-art
Trible’s parts distribution facility. Preston Trible offered
tours of the automated distribution facility and John Bailey
of Trible’s organized all the details and hosted the event.
Dean Landers and Captain Toolhead Mike Staats of Service USA
moderated the roundtable discussion and led the service management
sessions. Joe Bureau from Whirlpool capably presented the technical
information while reviewing the diagnostics and repair of the
Cabrio laundry systems, as well as the new Maytag Ice2O french
door refrigerator, followed by a q&a period on any Whirlpool-related
service issues about any product.
Fourth annual Southeast RSM sponsored by Cashwell
Appliance Parts
As you might suspect at the Fourth Annual RSM in Fayetteville,
North
Carolina, the event has grown from a handful of servicers to
a large undertaking that will likely be expanded in 2008 —
according to Frank Tew of Cashwell’s — into a multi-day
event that would include technical training from more than a
single manufacturer as well as expanded business sessions. “This
is our goal,” said Tew, “and, basically, this is
what our dealers have said they want to see. Our
job is to serve our customers and we’ll be doing that.
Early planning is already underway to make it happen next year.”
The large group on October 3 and
4 was accommodated at an easily accessible Holiday Inn on the
local Interstate. Even their large
banquet/business meeting rooms were bursting with tables of
attendees and more chairs lined up behind the main tables.
Technical training was presented
by Bill Jurney from General Electric, who very ably discussed
a variety of topics, including
laundry products, electronic refrigeration diagnostics and repair,
icemaker technology and others that were covered in a wide-ranging
question period that most attendees considered a highlight of
the meeting. Jurney has developed an almost cult-like following
at this event and many technicians chose to attend because he
was the announced trainer and they had attended in previous
years.
While a cult-like following was not mentioned in feedback from
the attendee survey assessment, Captain Toolhead Mike Staats
and Service USA advisory board member Steve Moore, Moore Appliance
Service, Southern Pines, NC, led the well-attended business
management session in the afternoon.
Watch for reports on the next
three RSM’s scheduled for 2007 and be especially looking
for a much-expanded schedule for 2008. With NARDA/ Service USA,
there will be ample opportunities to improve your businesses
by attending meetings near you. Watch for these meetings and
don’t hesitate to invest a day or two, or to drive a couple
of hours to attend some great training.These meetings are your
opportunity to make your business more
profitable and to achieve a work/life balance that perhaps you
didn’t believe was possible. It doesn’t matter that
you are a one-man show
or a business with 50 technicians.
Captain
Toolhead has seen all types of businesses over the past few
years and these meetings are good. Good for you and good for
your business. That’s why the RSM concept has grown —
servicers of all sizes should want to attend.
— Captain Toolhead
(top)
Eight
more students pass national appliance repair exams
Eight students at Greater New Bedford Regional Vocational-Technical
High School have earned national certification as service technicians
in major appliance repair.
Juniors Katherine Hardy, Mark Correia, Darien Jacintho, Gary
Gagne, Justin Lapre, and Derek Vieira, and seniors Jose Vargas
and Daniel
Vello are majoring in HVACR/appliance technology.
"We're very proud of these
students," said Stephen Ellis, one of the teachers in the
program. He said this is the first time the school has offered
students a chance to take these national exams.
To earn national certification,
the students must pass eight examinations that measure their
skills in consumer relations, diagnostic techniques and repair
ability for all types of domestic major appliances. The students
took the exams late last spring and got the results during the
summer.
The students are among a select
group of major appliance service technicians in the U.S. to
be certified appliance professionals with
a graduate technician rating. It is the highest level of recognition
for technical expertise given by the major home appliance industry
to
high school students. Certification is voluntary.
Mr. Ellis and fellow teacher Robert Enos are certified master
technicians.
The students' two-year graduate
certificates can be upgraded to master
technician ratings after two years if they have obtained at
least two years of field experience.
(top)
11/22/07:
Whirlpool named one of the
Top Companies for Leaders
Whirlpool has been named to the 2007 list of Top Companies for
Leaders, ranking 12th in North America and 15th globally. Sponsored
by global human resources consulting firm Hewitt Associates,
in partnership with The RBL Group and Fortune magazine, the
companies
were selected and ranked by an panel of judges based on criteria
including leadership practices, company reputation, leadership
culture, values and business performance.
When comparing the Top Companies
for Leaders with more than 550 other companies around the world,
Hewitt reported that the companies named to the list make leadership
a critical part of the company's organizational fabric. Specifically,
the study found that within
these companies, leadership practices are an inherent part of
the culture, and that developing future leaders is simply a
way of
operating that must be intertwined with running the business.
"At Whirlpool Corporation our focus
is ensuring that we have the right talent pipeline and development
of leaders in place in order to
successfully grow our global business," said Jeff M. Fettig,
chairman/ CEO.
"In today's competitive
environment, it is our leadership's accountability to ensure
we attract, retain and develop the very best
talent if we're to meet our long-term business goals to create
value for our shareholders."
The global Top Companies for Leaders
study is based on approx. 550 global organizations with an average
employee size of 27,000. Almost 70% of the participating companies
had revenues of $500 million or more.
Hewitt, The RBL Group and Fortune
utilized a three-step screening process to identify the finalists.
This included assessing survey
responses, conducting in-depth interviews, and analyzing financial
performance in relation to industry. This information was then
provided to a panel of judges in each region to select and rank
a 2007 Top Companies for Leaders list in Asia-Pacific, Europe,
Latin
America, and North America.
A separate judging panel, composed
of one representative from each regional panel, considered all
regional top companies to select and rank a global Top Companies
for Leaders list.
070307:BSH
ovens in recall to correct fire hazard
06/11/07:
GE recalls high-end gas ranges
due
to fire hazard
060607:
GE dishwashers affected by huge recall
Correction:
An article that appeared in the August issue of
ASN, page 4, "Sears to test techs sales ability," incorrectly
indicated that technicians of A & E Service were participating
in a Sears retail initiative. A & E technicians are not a
part of this program or any other program intended to promote
a specific retailer. ASN regrets the error.
BSH ovens in recall
to correct fire hazard
On June 29, BSH Home Appliances Corp. recalled about 42,000 Thermador
built-in single ovens and combo models that have a conventional
oven and a microwave. The oven can have gaps in the insulation
where overheating can occur and when used in the self-cleaning
mode it can cause nearby cabinets to overheat, which poses a fire
hazard to consumers.
BSH has received ten reports of
incidents including one which resulted in a fire that caused extensive
property damage. No injuries have been reported.
The model numbers of the single
ovens are C271B, C301B, SEC271B and SEC301B. The model numbers
of the combination models are SEM272B, SEM302B, SEMW272B and SEMW302B.
The ovens have date codes between FD8403 and FD8701. The model
number and date code can be found on the underside of the control
panel.
The products were sold at appliance
and specialty stores nationwide from November 2004 through May
2007 for between $2,400 and $3,900.
Consumers are advised to stop using
the oven's self-cleaning mode and contact BSH Home Appliances
immediately to schedule an inspection and free repair, if necessary.
Contact: BSH at (800) 701-5230 between
7 a.m. and 11 p.m. ET Monday through Friday. For more information,
visit the firm's Web site at www.thermador.com
or http://www.cpsc.gov/cpscpub/prerel/
prhtml07/07228.html
GE recalls high-end gas ranges due to
fire hazard
On June 6, about 2,600 General
Electric 36-in. and 48-in. stainless steel Monogram Pro gas ranges
with griddles were recalled due to a design flaw that can cause
an electrical arc between the wiring and griddle supply tube,
posing a fire hazard.
The ranges were built from October
2005 and May 2006.
Specific models are identified in the Consumer Product Safety
Commission recall alert at www.cpsc.gov/cpscpub/prerel/ prhtml07/07555.html.
GE dishwashers
affected by huge recall
On May 16, General Electric recalled some 2.5 million dishwashers
built between September 1997 and December 2001 because of a wiring
problem that could cause fires.
The recall includes models under the brands
Eterna, GE, GE Profile, GE Monogram, Hotpoint and Sears Kenmore.
GE has received 135 complaints of overheating, including 56 reports
of property damage and 12 fires. Consumers who own an affected
model can arrange for free repairs or receive rebates of up to
$300 towards purchase of a new GE dishwasher.
Full details at www.geappliances.com. Click on Dishwasher
Recall.
Maytag
and Samsung brand front-loaders recalled
due to fire hazard
The U.S. Consumer Product Safety Commission, in cooperation with
the manufacturer, announced in mid-March a voluntary recall of
about 250,000 Maytag-brand and about 20,000 Samsung-brand front-load
washers made by Samsung Electronics Co. Ltd., of South Korea.
Consumers should stop using recalled
products immediately. Water leakage onto the electrical connections
to the washing machine’s thermal sensor could cause an electrical
short and ignite a circuit board, posing a fire hazard to consumers.
Maytag has received five reports of incidents involving the hazard.
Samsung has received one such report. No injuries, fires or property
damage outside the washing machine have been reported.
The Maytag washers have model numbers
beginning with MAH9700 or MAH8700. The Samsung washers have model
number WF306BHW or a model number beginning with WF316. Not all
serial numbers are subject to the recall. The model and serial
numbers are located on a tag at the bottom of the door opening.
Maytag models with a serial number ending
in the last two letters GA, GC, GE, GG, GJ, GL, GN, GP, GR, GT,
GV, GX, JA, JC, JE, JG, JJ, JL, or JN; and Samsung models with
the six- digit number 100001 through 799999 prior to a letter
at the end of the serial number are subject to the recall:
The products were sold at department
and appliance stores nationwide from April 2005 through August
2006 for between $1,000 and $1,200. Consumers should immediately
contact Maytag or Samsung for information on how to receive a
free repair.
Call Maytag at 1-800-868-5109 between
9 a.m. and 9 p.m. E.T. Monday through Friday, or go to Maytag’s
Web site: www.washerrecall.com. Samsung customers can call 1-800-515-7902
between 9 a.m. and 9 p.m. E.T. Monday through Friday, or go to
Samsung’s Web site: www.Samsung.com/washerrecall.
Big News From Whirlpool:
Non-authorized service firms
have access to tech assistance
Beginning March 16, 2007, the Whirlpool Technical Assistance Center
began offering non-authorized service companies subscriptions
for out-of-warranty technical call support on the entire family
of Whirlpool brands.
Whirlpool says this move supports
the goal of continuing improvement in the quality of service available
to all Whirlpool consumers. The Whirlpool Technical Assistance
Center provides tech support for Whirlpool, Maytag, KitchenAid,
Jenn-Air, Amana, Roper, Estate, Crosley, Amana, Admiral and Magic
Chef brands.
There are two options for receiving
out-of-warranty technical service advice: Annual subscriptions
may be purchased for $125 per technician or technical advice will
be available for $19.95 per call.
FAQ's:
How do I purchase an out-of-warranty technical assistance
subscription?
An on-line sign-up and payment form is located at
www.ServiceMatters.com Payment by credit card only and
access to out-of warranty technical assistance
begins after card approval and processing of subscription orders.
How do I access the Whirlpool Technical Assistance Line?
Upon credit card approval, Whirlpool will process individual
technician calling cards and will mail them directly to the service
company within two to four weeks. Technicians must provide their
identification number when calling the Technical
Center at 800-832-7174, 8-5 PM, Monday thru Friday.
How will call-by-call assistance work?
Out-of-warranty advice will be given on an individual call basis
at $19.95 per call, payable by credit card at the time of the
request. Follow-up calls about the same appliance are free of
charge for 30 days after the initial call.
What if I hire a technician or one leaves employment at my
service company?
Service companies are responsible for e-mailing changes in employment
status from the link at www.ServiceMatters.com, click on Out of
Warranty Support.
USA’s Regional
Service Meetings in the works
Based on their success in 2006, the United Servicers Association
is planning a number of Regional Service Meetings (RSM’s)
across North America in 2007. Typically, an RSM begins in the
evening (6:30 p.m. until attendees want to stop) before a full
day of technical and business training with a lively and interactive,
roundtable discussion hosted by Captain Toolhead and USA board
members. The roundtable discussion is a highlight of the event.
A convenient, local motel is usually selected to provide a block
of discount-priced rooms for those driving in for the RSM.
The following morning begins with
manufacturer-sponsored technical, diagnostic and teardown training
as well as current repair updates open to all service companies
regardless of warranty affiliation.
This is followed by an informal
lunch and discussion followed by an afternoon of business training
featuring sessions on improving the chances for a customer “repair”
versus “replace” decision; determining and evaluating
statistical benchmarks for a service business; technician “soft-skills”;
understanding income statement analysis; flat-rate versus hourly
pricing; how to improve profits from parts pricing; business profitability
measurement; marketing discussions and much more.
Captain Toolhead is the USA facilitator
for these regional meetings. Contact the sponsoring parts distributor
for additional, detailed RSM information and costs. Interested
parts distributors should contact Captain Toolhead for additional
details about the format of these meetings.
The first RSM of 2007 is the 2nd
Annual Albany (NY) RSM scheduled for March 29-30 with AP-Wagner
as the sponsoring parts distributor.
Upcoming RSM’s that are firm
as of early March include:
•
May 16-17 — Denver, CO; 1st Source Servall is the sponsoring
parts distributor
•
October 3-4 — Fayetteville, NC; Cashwell Appliance Parts
is the sponsoring parts distributor
Additional RSM’s under discussion
and in the planning stages for 2007 include the following locations:
•
Portland, OR
•
Los Angeles, CA
•
A Texas location
•
Another East Coast location
•
A Midwest location
Some of the RSM’s in the planning
stages will take place in the September-October-early November
time frame. If you are in the proximity of any of these RSM’s,
contact the sponsoring parts distributor to make attendance arrangements
and to request any special technical or business training that
you would like to achieve.
Service & Retail
Convention Attracts More Than 500
NARDA and USA Announce Plans to Merge
More than 500 independent retailers, service business operators,
technicians and educators gathered in Las Vegas to attend the
2007 Service & Retail Convention, February 25-27. The SRC
is a partnership between the Electronics Technicians Association,
the North American Retail Dealers Association, and the United
Servicers Association.
“With 51 exhibitors and 86
educational sessions, 507 attendees received the best and broadest
range of education offered at any industry event,” said
Dick Glass, president of ETA. “Our goal was to provide members
with actionable ideas and outstanding networking opportunities.”
During the SRC, the boards of directors
of NARDA and USA announced plans to merge the two organizations
into one not-for-profit trade association. “The partnership
between NARDA and USA created through the SRC and other areas
of common interest laid the foundation for one cohesive association
that can bring greater value to our members and better address
challenges and opportunities,” said Paul MacDonald, USA’s
president. “Industry consolidation is here to stay.
We are not only better off as one organization, we are excited
about the many potential opportunities ahead,” he added.
“Under the merger plan USA
will become the Service Division of NARDA and assume one of seven
board seats on NARDA’s reorganized board,” said Leon
Barbachano, chairman of NARDA’s board of directors. “USA
members will bring additional expertise in the service arena.
USA members are well known for being among the best of the best
servicers. The merger further demonstrates NARDA’s commitment
to the
service segment of the business.”
NARDA and the USA service division
will be headquartered in Glenview, Illinois. Officers and directors
of the newly combined organization will be announced in the coming
weeks after approval by the general memberships and completion
of the merger agreement.
Maytag
Recalls Dishwashers Due to Fire Hazard
The U.S. Consumer Product Safety Commission announced on January
31 the voluntary recall of 2.3 million Maytag and Jenn-Air undercounter
or portable plastic-tub dishwashers that pose a serious fire hazard.
Maytag has received 135 reports
of dishwasher fires, resulting in product and/or property damage.
Four injuries have been reported, including three reports of smoke
inhalation and one serious hand laceration when operating a fire
extinguisher to put out a fire in the dishwasher.The hazard occurs
if liquid rinse-aid can leak from its dispenser and contact the
dishwasher's internal wiring, which can short-circuit and ignite.
Consumers are advised to immediately
stop using these dishwashers and disconnecting the electric supply
by removing the fuse or shutting off the circuit breaker. Maytag
is offering a free in-home repair, or a $75 cash back reimbursement
following the purchase of a new Maytag, Jenn-Air, Whirlpool or
KitchenAid dishwasher.
For a list of the specific models
involved, see the CPSC Web site:
http://www.cpsc.gov/cpscpub/prerel/prhtml07/07094.html
Summary of GE settlement
Captain Toolhead has received inquiries about the moisture-related
problems in some GE and Hotpoint refrigerators. Here’s a
Web site that may answer most of your questions about this matter:
http://www.geappliances.com/classaction/
Here is a summary of key portions of this issue:
Welcome to the GE Moisture-Related Refrigerator Class Action
Settlement Web Page
Attention: All Persons who purchased, owned,
or currently own GE or Hotpoint branded 20, 22 or 25 cubic foot
side-by-side refrigerators manufactured by GE between January
1, 2001 and December 31, 2002.
Please note: Not all GE or Hotpoint
regrigerators are included within this settlement. Please refer
to the list of eligible models.This web page is intended to provide
potential Settlement Class Members with information about the
Settlement, including copies of the Supplemental Notice, the Claim
Form, the Settlement Agreement, the Court’s Order Preliminarily
Approving Settlement, the Court’s Order Approving and Ratifying
Stipulation Regarding Supplemental Notice, and the List of Eligible
Models.
Click on the underlined terms in
this webpage to see the relevant documents.
Summary of the Class Action Lawsuit
William F. Turner filed a lawsuit in the U.S. District Court for
the Middle District of Florida on behalf of himself and a putative
class consisting of all persons who purchased certain GE or Hotpoint
branded 20, 22 and 25 cubic foot side-by-side refrigerators manufactured
by GE (see List of Eligible Models). Mr.
Turner alleges, among other things, that the refrigerators did
not perform in accordance with the advertisements, marketing materials
and warranties disseminated by GE nor with the reasonable expectations
of
ordinary consumers because of alleged moisture problems as set
forth more fully in the Complaint.
GE has denied Mr. Turner’s
allegations and contends that its refrigerators are of superior
quality and workmanship.After thoroughly analyzing the facts and
law applicable to Mr.
Turner’s claims, and taking into account the extensive burdens
and expenses of litigation, including the risks and uncertainties
associated with protracted trials and appeals, as well as the
fair, cost-effective, and assured method of resolving such claims,
Mr. Turner and GE entered into a Settlement Agreement that provides
substantial benefits to the Settlement Class. On December 22,
2005, the U.S. District Court for the Middle District of Florida
entered an Order preliminarily approving the Settlement.
Frequently Asked Questions
Which refrigerators are affected by this Class Action Settlement?
Certain GE or Hotpoint branded 20, 22 and 25 cubic foot side-by-side
refrigerators manufactured by GE are affected (see List of Eligible
Models). For any further questions, please call 1-866-839-4463.
Who is a Member of the Settlement Class?
You are a member of the Settlement Class and your rights against
GE are affected if you are a person who, as of January 13, 2006,
purchased, owned or currently owns one of the specified GE or
Hotpoint branded 20,22 or 25 cubic foot side-by-side refrigerators
manufactured by GE (see List of Eligible Models).
What are the terms of the Settlement?
The Settlement Agreement settles and resolves all of the Plaintiff’s
and Settlement Class Members’ claims against GE in the Action
related to any moisture-related problems. The benefits program
of the Settlement provides for three forms of possible benefits
to Settlement Class Members. These benefits are:
• Additional Warranty Protection: One additional year of
warranty protection for moisture-related problems (section 5.1
of Settlement Agreement).
• Refrigerator Exchange: A replacement refrigerator for
any product on the List of Eligible Models that has required three
or more unsuccessful moisture-related service calls and that still
has a moisture-related problem (section 5.2 of Settlement Agreement).
• Reimbursement: Reimbursement for moisture-related service
calls (including parts and/or labor) reasonably incurred between
the date the refrigerator was purchased and January 13, 2006.
In addition, for Settlement Class Members who, between the date
the refrigerator was purchased and December 9, 2005, (a) had three
or more unsuccessful moisture-related service calls on their refrigerator
and (b) replaced their refrigerator because of moisture-related
problems, GE shall reimburse the reasonable cost of the replacement
refrigerator unit up
to the amount of the original refrigerator’s purchase price
(section 5.3 of Settlement Agreement).
How does a Settlement Class Member submit a claim?
Settlement Class Members must submit a properly completed Claim
Form by mail to GE at the address listed at the bottom of this
page. If you fail to properly and timely make your claim, you
will lose the right to receive benefits.
• The Claim Form for the Additional Warranty Protection
must be postmarked by midnight September 4, 2006. For moisture-related
service calls under the additional warranty protection program,
please call GE at 1-866-839-4463.
• The Claim Form for Reimbursement must be postmarked by
midnight September 4, 2006.
• The Claim Form for Refrigerator Exchange must be postmarked
by midnight January 12, 2007.
Note: For persons who have an existing service contract and who
have timely made a valid claim for Additional Warranty Protection,
the claims deadline for Refrigerator Exchange is the final day
of the period of their Additional Warranty Protection (one year
from the expiration date of the service contract).
Where can Settlement Class Members find other information
related to the Settlement?
Please see the Court’s Order Preliminarily Approving Settlement,
the Court’s Order Approving and Ratifying Stipulation Regarding
Supplemental Notice, the Supplemental Notice and the Settlement
Agreement for other information, including the right to opt out
of or object to the Class Action Settlement.
For additional information on the Settlement call:1-866-839-4463
Or write to:GE Moisture Class Settlement2670 Executive Drive,
Suite A, Indianapolis, IN 46241
Electrolux third-quarter
results
Info and comments by Captain Toolhead
The following are comments by Hans Stroeberg, president/ceo of
Electrolux regarding the company's third-quarter financial results.
I believe readers will find them enlightening and informative.
Please also note that there are rumors among financial experts
that Electrolux may be a prime takeover for "someone."
Quotes from Mr. Stroeberg: "The result for the third quarter
increased by 10%, which is largely in line with our expectations.
However, this does not mean that I am satisfied. In
Europe, we saw a continuation of the problems stemming from the
strike in Nuremberg, Germany. In North America, we continued to
improve the result despite some temporary suppliers' problems
at the Juarez factory in Mexico that are now under control.
"I am especially pleased with
the development of floor care, which shows that it is possible
to have good margins in a tough market if you have the right products
and the right marketing at a competitive cost position. Increasing
costs for raw materials, a weakening North American market and
a continued challenging competitive environment are concerns.
"The extra cash distribution
of approx. sek 5.6 billion will benefit our shareholders and give
us an efficient balance sheet for future opportunities and challenges.
Our efforts to move production from high-cost countries to countries
with a lower cost base are now in an intensive phase in Europe.
During the last two years we have been moving 25% of our total
European volumes to new plants in low-cost countries. Earlier
this year, I inaugurated two Polish plants, in Zarow and Olawa,
and this December we will see the opening of a third Polish plant,
this one in Zwidnicia.
"It goes without saying that
a program as complex as the current restructuring plan carried
out in such a short period of time cannot be conducted without
some interruptions. Due to the strike in Nuremberg, we lost volumes
mainly in the higher-price segments. Nonetheless, I am convinced
that we will regain our lost positions, even if it takes a bit
longer than expected.
"When the comprehensive reshaping
of the Electrolux Group is complete, we will have a very competitive
cost situation, which strengthens my belief that programs of this
size will not be necessary going forward. The result of our floor-care
operation is a fine illustration of how our strategy is working.
In ths sector, production has been moved to low-cost countries.
But more importantly, we are developing innovative products that
consumers want and we focus our marketing on one brand —
Electrolux. The result
is that almost 50% of our vacuum cleaners in the market are younger
than two years, and our profitability is approaching the same
peak level as before the drop in 2002.
"Another example is the appliance
market in the UK. The UK market has long been struggling with
weak market growth and poor profitability. By introducing innovative
products backed up by well-conceived communications under the
Electrolux brand, we have improved our mix and increased our profitability.
"As I have said many times,
I am convinced that by working
efficiently with developing new innovative products, continued
brand building, profitable growth and cost savings projects, we
will reach a margin comparable with the rest of the industry.
In the long term, we will also be among the best in the industry.
"The board proposes a procedure
for a mandatory redemption of shares corresponding to a total
cash distribution of approx. sek 5.6 billion to Electrolux shareholders,
in addition to the ordinary dividend and the ongoing share buy-back
program. With our new capital structure, we will be well equipped
for future opportunities and challenges within our operations.
"As reported at the beginning
of the year, I expect the operating result for Electrolux indoor
products, excluding items affecting comparability, to be somewhat
higher than 2005. We are on the right track, in spite of many
challenges."
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