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Mayor Jerry Abramson is calling the possible sale of General Electric's Appliance Division just speculation. Based on some stories I am seeing, I would partly agree.
I am afraid that the mayor-for-life's comments may provide GE's employees more security than it should. Consider this:
- GE's profit declined last quarter.
- GE has been considering selling off slow growth businesses.
- The recent housing slump has hit this business, while giving it little upside growth in near future.
- CEO Jeffrey Immelt's goal to shed businesses that are not helping GE's goal of 10 percent annual profit growth.
Although they've been in the appliance business since at least 1892, history doesn't mean much in the board room. These days companies look more at the bottom line. GE in particular.
It would be nice for Louisville if either a) GE kept the business up and running, or b) a new owner promised to do the same. However, economic realities may keep this from happening.
On a personal side, I would sure hate to lose Appliance Park from an electronics historical perspective. As noted here: "GE installed its first computer at Appliance Park in 1954, a pioneer UNIVAC model. The UNIVAC was larger than the average living room and took eight hours to make calculations. It was the first computer installation outside of the U.S. government." Even tho it had less power than the very laptop I'm keying this in on, it was a historical moment in the history of business computers.
GE has been very good to Louisville. Although I understand the financial side, it will still hurt to lose it.
-Colonel Steve
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