Friday, May 16, 2008

GE is planning to sell its appliance division to the highest bidder

General Electric is planning to sell off its appliance division to the highest bidder. The most likely candidate is a Chinese firm, though there are other suitors, all of them foreign.

The likely outcome is the loss of 300,000 more US manufacturing jobs when the Chinese firm moves GE's appliance production to China while holding onto GE's US market share, probably using the GE brand name.

If Import Certificates were on the horizon, then GE would be keeping this division. It would be anticipating that increased sales to China would make up for its falling sales in the United States. Instead, more American workers will get laid off, foreigners will get GE's market share in the US appliance market, and the US economy will continue its current stagnation.


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