April 19, 2014

Haier Still Considering GE

News had it that Haier planned to make an offer for the appliance division of GE, but Haier said it plans not to bid for General Electric Co’s appliances unit until it sees clear signs of a U.S. market recovery, according to a Reuters report.

A bid for GE’s appliances business, which the U.S. giant put on the block in May, could be Haier’s last opportunity to buy a household U.S. brand, part of its ambitions to reach global consumers rather than just Chinese, the report said.

According to the Reuters report, a source who worked with Haier executives to evaluate the potential GE deal said the other concern for Haier is how to pay for it, as Haier would rather not borrow from commercial banks.

In May, GE’s CEO Jeff Immelt named companies including Haier, South Korea’s LG Electronics, and Turkey’s Arcelik ARCLK.IS as possible bidders for the second-largest U.S. appliance maker after Whirlpool Corp. No formal bids have been announced yet, and the plans of the other possible bidders have not been confirmed. With sales of $7.2 billion last year, the unit is worth an estimated US$4 billion to $8 billion.

New From Haier: Stackable Washer and Dryer

For those folks short on space and loaded with laundry, Haier has introduced a washer dryer pair with the option to stack. 
The standard 24-in wide by 24-in deep  HBF1055TVE washer offers a 1000 rpm spin speed and can be stacked with the HDY6-1 electric dryer to create one unit that can be stacked in a closet or placed separately side by side.
The washer has a 1.8-cubic-ft stainless-steel drum, auto select wash/rinse temperature and 12 fabric-care wash cycles that include such traditional front load options as soak, extra rinse, four-spin speed and spin only. The dryer has a 3.5-cubic-foot stainless-steel drum, dual temperature settings, dry-time selector and temperature sensor drying.

This convenience costs about the same as a standard washer/dryer, retailing for $1,099.  So you don’t have to be as loaded with money as you are with laundry.

Haier Moves Higher

Never heard of Haier? We think you’ll be hearing from them a lot in the next few years.

How to Buy an Air Conditioner

It’s only June, but around here it feels like the height of summer.  Everyone is discussing their air conditioning or the lack of it.  If you are considering purcahsing a new air conditioning unit, we have some advice for you courtesy of the NY Daily News.  You need to sure the unit you purchase is the right one for you. 

The good news is that air conditioner prices have come down substantially in recent years as manufacturing has moved overseas, said P.C. Richard & Son president Gregg Richard.

“A unit that costs $99 today would have cost $149 five years ago,” Richard said.

Expect to pay anywhere from $99 for a small unit to around $1,800 for a jumbo-sized air cooler. Doing some homework before you hit the stores will help you make the wise choice.

How powerful an air conditioner you will need – power is measured in BTUs, or British Thermal Units – should be your first consideration.

A BTU is the amount of heat required to raise one pound of water one degree Fahrenheit. BTUs, which range from 5,000 to 36,000 for room air conditioners, measure the amount of heat a unit can remove from a room per hour. Generally speaking, the bigger your space, the more BTUs you will need – and the more you will pay.

Sizing it right is key. If you get a unit that’s too small you’ll regret it when the mercury soars. But a unit that is too big for a room will cycle on and off too often, using up too much energy while not dehumidifying properly.

To figure out the correct number of BTUs, start by multiplying the square footage of your room by 35, Richard said. Other factors come into play as well.

A kitchen will likely require a unit with more BTUs than a bedroom of the same size because of the heat generated by appliances. Likewise, you might want to crank up the BTUs in a room that gets direct sunlight. For help zeroing in on the right number, go to www.consumerreports.org, which offers a free sizing worksheet.

Energy Star units use at least 10% less energy than conventional models. On average, an Energy Star emblem will add about $40 to the cost of a unit.

To figure out whether your electrical bill savings will justify the bigger price tag, go to getenergysmart.org, the site operated by the New York State Energy Research and Development Authority, to find out how much you can save by replacing your air conditioner with an Energy Star unit.

“Buy the most energy efficient model you can afford,” advised Consumer Reports deputy home editor Celia Kuperszmid Lehrman.

Other considerations go into choosing the right model. In compiling its recent ratings, Consumer Reports tested factors like how noisy units were and how well they functioned during a brownout.

The Haier ESAD4066, which retails for $240, got Consumer Reports’ top grade among small models. The GE ASMO8LK, for $260, was the highest rated mid-sized model and the GE ASM12AL, for $350, was the cool winner among large air conditioners.

To save yourself a headache later, make sure you know where your unit will be anchored – through a wall or in a window – before making your purchase, and measure the space. If the air conditioner will be going in a window, make note of the type of window it is.

Check the electrical power supply in your room too. Smaller air conditioners will work with a standard 115-volt outlet. Units above 8,000 BTUs will require a dedicated line, though Friedrich makes a 10,000 BTU unit that does not need one, Brief said.

Units from 10,000 to 16,000 BTUs are generally available in both 115- or 230-volt models. Units of 18,000 or more BTUs will need a 230-volt outlet.

How often you will need to buy a new air conditioner depends on the quality of the unit and how often it’s used.

“Many are warrantied for three to five years,” Vandervort said.

Sometimes people will change a unit because it is noisy or when they want to change the décor of a room, Brief said.

Another reason to head to the air conditioner aisles is “when you have an old one and it’s not working efficiently. You may be using considerably more energy than necessary,” Vandervort said. Otherwise, “use it until it doesn’t work any longer.”

 

Will GE’s Appliances Suffer Under a New Owner?

By now, GE’s upcoming sale of their popular appliance division is common knowledge and many people are wondering what will become of one of the most popular brands in the US when it is sold.  GE appliances rank highly with sources such as Consumer Reports.  When news that GE was considering a sale of the appliance arm, the magazine reported how various GE appliances stacked up against rivals. Most did pretty well.   GE had many highly rated (though a few poorly rated, including a ‘not acceptable’ in upright freezers ) models in many product categories and across price points.

According to the Wall Street Journal’s Deal Journal, for the most part, those considered to be potential bidders for the GE business–Sweden’s Electrolux, LG Electronics, BSH Bosch & Siemens Hausgerate of Germany, to name a few–match that. The outlier? Haier. Haier’s Genesis is No. 22, or fourth from the bottom in the rankings of top-loading washing machines and dead last in both large countertop microwave ovens (No. 15) and side-by-side refrigerators (No. 34).

The obvious question? Would a Haier-GE combination lead to an improvement in Haier’s own brand or would it pull down the reputation of the GE brand? Unfortunately, the question isn’t, well, academic. The folks at consumer-satisfaction surveyer J.D. Power & Associates said studying whether or how an acquisition of a high-quality brand by a lower-quality brand affected either brand would be nearly impossible, since it would be difficult to identify what was an effect of the deal or integration as compared with the myriad other issues that affect quality, like design, manufacturing, parts/raw materials.

Of course, Haier has has been down this road before, coming close to but ultimately failing to acquire another well-regarded U.S. brand, Maytag, in 2005. Then Haier’s plan was said to follow the Lenovo way, referring to the Chinese PC maker’s slow conversion of IBM Thinkpads to the Lenovo brand after it acquired the Big Blue business. For its part, Haier declines to confirm whether it was indeed bidding for the GE business or comment on how it would handle the integration should it comsumate a deal.

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