Otis Singleton
In 2016, General Electric sold its appliance business to the Chinese company Haier for $5.4 billion. This sale included the right for Haier to use the GE brand name until 2056. However, it is important to note that Haier only purchased GE's appliance unit, not the entire company, as some social media posts and memes have claimed. General Electric, a publicly-traded company, continues to operate in various sectors, including power, renewable energy, aviation, healthcare, and capital.
| Characteristics | Values |
|---|---|
| Year of sale | 2016 |
| Company sold to | Haier |
| Country of company | China |
| Division sold | Appliance division |
| Sale price | $5.4 billion |
| Brand name usage rights | Haier can use the GE brand name until 2056 |
| Headquarters | Louisville, Kentucky |
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What You'll Learn
General Electric's appliance business was sold to China's Haier in 2016
In 2016, General Electric (GE) sold its appliance business to China's Haier Group for $5.4 billion. The sale, which was finalised on June 6, 2016, saw Haier acquire a century-old business that manufactures refrigerators, freezers, washing machines, and dryers under brands such as Monogram, Café, Profile, and Artistry. The deal gave Haier access to GE's strong global customer base and well-established brand, enabling them to expand their presence in the US market.
GE's decision to sell its appliance business was part of a strategic shift towards becoming a digital industrial company. By divesting its non-core assets, GE could focus on its core industrial businesses, such as jet engines and power turbines, and advance its digital transformation by hiring more people to write complex software codes for its products. The sale of the appliance business also aligned with GE's move to sell most of its finance arm and relocate its headquarters to Boston to tap into the city's growing technology talent pool.
For Haier, the acquisition presented a valuable opportunity to establish a stronger foothold in the US market, where it had previously held a negligible presence. The deal marked the third-largest acquisition of a US company by Chinese investors and allowed Haier to leverage GE's extensive distribution network in the country. Haier intends to retain the GE Appliances brand and keep the business's headquarters in Louisville, Kentucky, along with its current management team.
It is important to note that while Haier acquired GE's appliance business, it did not purchase the entire General Electric company. This clarification is relevant as there were social media rumours in 2020 and 2021 that General Electric was being sold to China. These rumours were partly false, as they suggested the sale of the entire company, when in fact, only the appliance unit was involved in the 2016 transaction.
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The sale was finalised for $5.4 billion
In 2015, General Electric decided to sell its appliance business. Initially, the company negotiated with Electrolux, a Swedish appliance manufacturer, which offered $3.3 billion. However, this deal was terminated in December 2015 after the United States Department of Justice filed a lawsuit to block the acquisition due to concerns over market competition.
Following this, General Electric entered negotiations with the Chinese company Haier. On 15 January 2016, it was announced that Haier would acquire GE's appliance unit for $5.4 billion. The purchase was finalised on 6 June 2016, and the new entity was named Qingdao Haier Co. As part of the agreement, Haier gained the right to use the GE brand name until 2056.
It is important to clarify that Haier only purchased GE's appliance division, GE Appliances, and not the entire General Electric company. As of 2021, there were no reports or announcements of Haier planning to purchase the rest of General Electric.
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Haier can use the GE brand name until 2056
In 2016, a Facebook meme circulated claiming that the American company General Electric was being sold off to China for $5.4 billion. This claim is false. In reality, General Electric sold its appliance division, GE Appliances, to the China-based company Haier for $5.4 billion. This means that Haier owns one of GE's subsidiaries, not the entire company.
GE Appliances is an American home appliance manufacturer based in Louisville, Kentucky. It is now owned by the Chinese Haier Smart Home Company, an affiliate of Haier. The acquisition was announced on January 15, 2016, and the purchase was finalized on June 6, 2016, for $5.6 billion.
As part of the terms of the sale, Haier has the right to use the GE brand name until 2056. This means that for the next 40 years, Haier can use one of America's most storied brand names to its advantage, helping the company gain a major foothold in the U.S. market.
Haier manufactures GE, Hotpoint, Cafe, Profile, and Monogram-branded household appliances. It also retains its core small appliance businesses, such as microwaves, room air conditioners, and wine refrigerators.
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GE Appliances is one of the largest appliance companies in the US
In 2016, a Facebook meme circulated claiming that the American company General Electric was sold off to China for $5.4 billion. This claim is false. While it is true that Haier, a Chinese company, purchased GE's appliance business, it only acquired one of GE's subsidiaries, not the entire company. The transaction was finalized on June 6, 2016, for $5.6 billion, and Haier has the right to use the GE brand name until 2056.
GE Appliances, headquartered in Louisville, Kentucky, is one of the largest appliance companies in the US. It manufactures appliances under several brands, including GE, GE Profile, Café, Monogram, Haier, and Hotpoint (in the Americas). The company has a long history of cooking innovation and is responsible for creating the first self-cleaning oven and the first over-the-range microwave. GE Appliances' largest manufacturing site is the Appliance Park facility in Louisville, Kentucky, which produces washing machines, dryers, dishwashers, and bottom-freezer refrigerators. The company also operates manufacturing sites in four states: Alabama, Georgia, Tennessee, and South Carolina. In addition, GE Appliances has a strong presence in Georgia, with Roper being the largest employer in Walker County and one of the largest employers in northwest Georgia, employing over 2,000 people. The company also owns FirstBuild, a co-creation community and micro-factory located on the University of Louisville's campus, with another location in South Korea and India.
GE Appliances has a significant impact on the US economy, contributing $24.5 billion to the US Gross Domestic Product (GDP) and creating 89,000 additional jobs. The company has deep roots in the American manufacturing industry, with 15,500 dedicated US employees and nine manufacturing facilities across the country. Since 2016, GE Appliances has invested more than $2 billion in its American operations and created 3,500 new US jobs, demonstrating its commitment to American manufacturing and innovation.
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GE Appliances has a long history of cooking innovation
In 2016, the Chinese company Haier purchased GE's appliance business for $5.4 billion. However, Haier only acquired GE Appliances, a subsidiary of General Electric, and not the entire company. GE Appliances has indeed been at the forefront of cooking innovation for a long time.
GE Appliances was responsible for creating the first self-cleaning oven and the first over-the-range microwave, the SpaceMaker®. This microwave oven was designed to free up counter space in an era when microwaves were becoming larger. GE Appliances was also the first manufacturer to introduce a suite of WiFi-connected appliances and appliances that work with IFTTT. As voice assistants gained popularity, GE Appliances was also the first US manufacturer to integrate its appliances with Amazon Echo and Google Home.
GE Appliances has continued to innovate with smart appliances like the GE Profile UltraFast Combo with Ventless Heat Pump Technology, which washes and dries a large load in about two hours, saving space and energy. They have also introduced the industry's first gas range with steam-cleaning capabilities, allowing for quick and low-temperature cleaning of minor spills. GE Appliances' product innovations also include electronic refrigerators that beep if a door is left ajar and dishwashers that can be programmed to start at a specific time.
In recent years, GE Appliances has expanded its product offerings beyond major household goods by investing in small appliances through small-batch manufacturing at microfactories like FirstBuild in Kentucky and CoCREATE in Connecticut. In 2022, they created a dedicated team for the recreational living sector, producing innovative products for motorhomes and campers. They also launched the Air & Water Solutions division, focusing on water heaters, water filtration, and heating and cooling solutions. GE Appliances continues to build on its long history of innovation, investing in new technologies and expanding its business.
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Frequently asked questions
No, General Electric has not been sold to China. However, in 2016, GE sold its appliance business to the Chinese company Haier for $5.4 billion.
General Electric, or GE, is a technology and financial services company that operates in power, renewable energy, aviation, healthcare, and capital markets.
Haier is a Chinese company that acquired GE's appliance division, GE Appliances, in 2016. GE Appliances is an American home appliance manufacturer based in Louisville, Kentucky.
In 2015, General Electric initially planned to sell its appliance business to Electrolux, a Swedish appliance manufacturer, for $3.3 billion. However, the deal was blocked by the United States Department of Justice due to concerns over market competition. Haier saw this as an opportunity to expand its presence in the US market and acquired GE Appliances for $5.4 billion in 2016.
Since the acquisition, Haier has grown GE Appliances' market share across all categories, even during the COVID-19 pandemic. GE Appliances has also launched new businesses, made significant investments in its US facilities, and expanded its product offerings beyond major household goods into smaller appliances.
