Consumers in New Jersey may be interested to learn that two well-known appliance giants, General Electric and Electrolux, are making moves that could benefit both companies in the future. Electrolux plans to buy the appliance division of GE in order to increase sales in the North American market.
Electrolux, considered a strong appliance brand in the European market, has agreed to pay GE more than $3 billion for its appliance division, which does most of its business in North America. The purchase, according to Electrolux representatives, should help to increase their presence in the continent's appliance sales, a market where they have not shown strength in the recent past. They hope to become a contender against their biggest rival, Whirlpool, by acquiring GE's extensive line of products, which includes stoves, refrigerators, water heaters and air conditioners. The current statistics show that America has about one third of the sales market, while western Europe represents just over a fourth. Data also suggests that the North American market is growing at a much faster rate.