AM at 50
by Joe Jancsurak
October 27, 2003
When AM debuted 50 years ago, GE was just beginning appliance production at Appliance Park, American consumerism as well as Soviet-styled Communism were major movements, and appliance makers were designing products with the latest gadgets and gizmos and in the “hottest” fashion colors.
Here are highlights from the past 50 years as reported by AM. It is by no means all-inclusive, for that would be impossible. It does, however, provide a timeline for industry trends, issues and innovations over the past half-century.
We hope you’ll enjoy this look back.
— Joe Jancsurak
Design & Engineering Innovations
‘Cool’ Stuff
1953 Servel’s “revolutionary” ice maker fills the ice mold, freezes, ejects and dry-freezes ice.
1957 Fedder’s heat-pump air-conditioner uses a thermostat to keep frost from building up at low temperatures.
1959 Norge unveils gas-absorption refrigerators. The basic refrigerator system is produced for Norge by Electrolux in Sweden.
1961 Westinghouse starts production of a thermoelectric water cooler. The bottle-type cooler resembles a standard compressor-operated unit in appearance. Except for a fan at the bottom for dissipating heat from the cooling elements, there are no moving parts in the system.
Nuclear Wash Test
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| Nuclear testing units are part of Bendix laundry engineering laboratory. |
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1954 A measuring instrument made of three parts–a radioactive detector enclosed in the soil locator, a recorder or scale, and a timer–and three types of radioactive swatches provides a new means of rating the efficiency of clothes washers. The amount of radioactive soil in a cloth swatch is measured with a Gieger counter. The cloth is washed, and radioactive soil levels are measured again. The advantage of the test is that efficiency of a washer in removing embedded soil, not just surface soil, can be measured. The procedure and equipment are by Nuclear Instrument and Chemical Corp. Adopting the test are Westinghouse and Bendix Home Appliance Division of Avco Mfg. Corp.
Color Craze
1954 Frigidaire begins color craze with its announcement that two pastel colors —yellow and green — will be available on automatic washers, dryers, upright freezers, refrigerators and ranges. Frigidaire’s announcement came six years after the first red range was introduced by Chambers.
1968 GE introduces Harvest–“a warm yellow-gold color, shading toward a soft brown haze.”
1988 GE’s manager of design systems, Robert Mundt, says trim kits are a practical approach to changing appliance colors.
1992 The science behind color choices is explored in an article analyzing why humans respond the way they do to certain colors. Red, for example, is known to make blood pressure rise, and orchid can make you nauseous in uneasy situations. Forest green in Western cultures suggests a product that is expensive and exclusive. Orange, however, suggests cheap. Dominant colors for major appliances remain white and almond.
2003 White and bisque are the dominant colors for major appliances.
Built-In Boom?
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| A Look magazine photo featured this array of built-ins in 1955. |
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1955 With companies such as Frigidaire, Hotpoint, Tappan and Thermador introducing new built-in range models, coupled with reports of electric housewares companies considering the potential of built-in toasters, mixers, blenders and coffeemakers, 1955 is touted by AM editors as “THE year for built-ins.” Built-ins in 1955 are not without critics, however. Keynoting the sixth annual Appliance Technical Conference of the American Institute of Electrical Engineers, R.J. Sargent, manager, major appliances, Westinghouse Electric Corp., criticized the industry for making built-ins without sufficient investigation of consumer preferences.
1956 Sargent couldn’t have been referring to his own company, which introduced its Space Mates compact (25-in.) washers and dryers for use as either built-in, free-standing or stacked-on units. Also in 1956, an American and Iron Steel Institute survey shows that “continued gains in the use of stainless have been stimulated by the trend toward built-ins.
Cordless Power
1958 Motorola introduces a battery-powered portable TV. The set will operate for six hours using nickel-cadmium batteries, which are rechargeable.
1963 The era of portable, cordless power has become a reality,” declares Robert J. McCarthy, assistant products manager, battery division, Sonotone Corp. Appliances now using rechargeable nickel-cadmium batteries for cordless power: mixers, hedge trimmers, radios, power drills, shavers and toothbrushes. Others on the drawing board: ice crushers, can openers, rotisseries, heating pads, blenders, sanders and vacuum cleaners.
1989 Battery-powered vacuum is introduced by Eureka. The full-size cordless rechargeable upright uses a 12V battery.
Space Savers
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| Mini-dryer by E.R. Wagner. |
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1959 Philco’s Duomatic combination washer-dryer system surprises the industry with its compactness and price. The combo sells for $500, has an under-counter height of 34½ in. and a cabinet width of 27 in. The system features wall-mounted remote control, high spin speed (560 rpm) for water extraction, and gas or electric drying in the same size cabinet.
1968 A mini-dryer measuring just 16-in. long and weighing 11½ lbs. is introduced by E.R Wagner. The dryer sells for $35 and is designed for handling light fabrics, such as hosiery and lingerie.
1969 Mini-refrigerators (under 6 cu. ft.) are as popular as mini-skirts as sales soar an estimated 600 percent during 1963-1969. Responsible for the compact boom are bachelors and “bachelorettes,” college students, owners of summer cottages and mobile homes, and executives looking for a compact refrigerator for the office.
1978The boom in mini-cooking appliances, such as National Presto’s Presto Burger, is the outgrowth of the changing lifestyle of the American consumer. Trends such as smaller families and less time for cooking because of the proliferation of two-income households have encouraged the development of special products for cooking donuts, pizza, French fries, hot dogs, crepes and fried chicken.
1988 Black & Decker’s Spacemaker Plus integrated component system wins AM’s second Annual Excellence in Design competition. The under-the-cabinet system consists of a coffeemaker with thermal carafe, a can opener/knife sharpener and a task light.
Self-Cleaning Craze
1963 GE announces
“breakthrough electric oven that cleans itself.” Just five years later a dozen manufacturers would join GE in offering the self-cleaning wonders.
1967 Modern Maid’s self-cleaning gas oven is the talk of the National Association of Home Builders Convention.
1988 Self-cleaning technology is found in gas-grill barbecues by Nordic Ware.
Floating Refrigerator
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| She floats through the air thanks to an air-pressure device for refrigerators by Frigidaire of Canada. |
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1965 Moving a 500-lb. refrigerator has never been easier. That is, if the refrigerator is equipped with a “Ride Aire” flotation device. Frigidaire Products of Canada has applied this air-bearing, low-pressure flotation device to its new line of refrigerators. Air pres-sure to operate the air bearing is supplied by attaching the blower hose of an ordinary vacuum cleaner to a vinyl sleeve behind the base plate of the refrigerator. Air is forced through a lifting pad, forming an air cushion between the unit and the floor, enabling the refrigerator to be virtually “floated’ across the floor. The device is designed to keep the refrigerator level at all times.
Sensing Big Role
1966 Sensors will play a big role in future controls, according to Daniel G. Meckley, III, vice president of engineering and Manufacturing, Tappan Co. “We want sensors to determine what function is being performed . . . Sensors can be made to react to a wide variety of conditions. A device that will sense smoke, odor or humidity could be used in a variety of appliances.” Meckley went on to predict that hybrid sold-state controls and electromechanical controls will be a definite factor in developing the systems approach.
Flat-Surface Cooking
1967 Corning Glass Works begins marketing design concept for glass-ceramic rangetop with matching flat-bottom cookware, also made of glass-ceramic material.
1980 After rapid sales in the early 1970s and predictions that glass-ceramic ranges would capture 25 to 30 percent of the range market, U.S. market share is a dismal six percent. The reason? Many of the smoothtop models supplied to the U.S. market were in many ways inferior to the traditional range designs they sought to replace, according to John Hughes, marketing director, Ceramaspeed Ltd.
1993 Ceramaspeed introduces Haloring Ten-Heat halogen element for gas-ceramic cooktops developed for use with a 10-step controller. The heater uses one halogen lamp and two radiant coils. The user sees lamp brightness change with different control settings.
Interactive TV
1972 Magnavox’s Odyssey presents an entirely new dimension to television entertainment. Transforming TV screens into electronic playgrounds, it enables consumers to relate to their sets in an active way. It connects to any brand set and provides a basis for a variety of games of skill, chance and learning.
Noise Can Be Good
1993 Active-noise cancellation systems are being considered by makers of dishwashers, refrigerators, range-hood exhaust fans, washers/dryers and HVAC equipment. The technology uses electronic circuits ranging from low-cost analog to sophisticated digital-signal processing technology and software for high-speed analysis of selected, undesirable noises in a variety of environments. Based on that analysis, the technology produces an equal but opposite sound wave, or “anti-noise,” which reduces unwanted noise.
Industry First
1994 “Product Design & Manufacturing Processes for the 21st Century” is the theme of the first-ever Appliance Manufacturer Conference & Exposition (AMCE).
Neptune Rises
1997 Maytag’s long-awaited horizontal-axis clothes washer, the Neptune, debuts. The offering was designed to combine the advantages of tumble-action washing with the performance, convenience and capacity demands of the North American market. The washer was recognized as the best in the Major category in AM’s Excellence in Design competition.
Dish Drawers
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| DishDrawer by Fisher & Paykel. |
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1998 Dishwashing in a drawer pretty much describes the DishDrawer by Fisher & Paykel, which is available as a two-drawer dishwasher, with each drawer independent of the other, or as a separate single-drawer unit. The dishwasher was recognized as the best overall in AM’s Excellence in Design competition.
Interconnectivity Accelerates
1999 Merloni rolls out a line of intelligent appliances with networked controls that let the appliances communicate with each other and with the company’s telephone diagnostic system.
2000 A Smart Appliance Task Force of the Association of Home Appliance Manufacturers (AHAM) is proceeding with the establishment of a voluntary standard protocol for the compatibility and interconnectivity of smart appliances. The standard was made available in 2001.
2000 Electrolux is running a networking experiment which offers a pay-per-use plan as an alternative to purchasing an appliance. Consumers on the island of Gotland (Sweden) are being offered free clothes washers. In return, the consumers are charged by how many times the appliance is used. The project relies on technology that connects the clothes washer to a central database via the Internet and “smart” energy meters in each home.
2000 Sunbeam HLT-Smart prototype appliances are shown at the International Housewares Show. The Internet-ready appliances are to include a coffeemaker, electric blanket, smoke detector, stand mixer, bathroom scale and blood pressure monitor. The following year, Sunbeam abandoned the effort.
2003 Merloni develops line of appliances with RFID (radio frequency identification) tag readers. The idea is that RFID tags embedded in clothing or on food containers would contain information that would be useful to the appliance’s control system, allowing the appliance to gain knowledge about its contents.
Refrigerator/Range Combo
2002 Whirlpool’s Polara refrigerated range has a 24-hour timer that can be programmed to keep a meal cold, then cook it, then keep it warm until it’s time to eat.
Top-Load Dryer
2003 Top-loading SmartLoad dryer by Fisher & Paykel is shown at the Kitchen/ Bath Industry Show.
TRENDS IN MATERIALS
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| Plastic refrigerator prototype (circa 1967) by Borg-Warner’s Marbon Chemical Division |
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All-Plastic Refrigerator?
1967 A plastic refrigerator prototype is introduced by Marbon Chemical Division of Borg-Warner. Main outer and inner shells, the door and door components are all formed using ABS plastic. “The all-plastic refrigerator? We think it’s a great idea and we’re pursuing it diligently,” says William Reddig, director of industrial design for American Motors’ Kelvinator Division.
1991 A modern-day plastic refrigerator prototype is shown by GE Plastics at the National Plastics Exposition.
All-Steel Refrigerator?
1966 United States Steel is not taking lightly the increased usage of plastics in appliances. The steel company has shown three appliance makers an “all-steel” refrigerator. Steel is used for the inner door shelves and liners, as well as the refrigerator cabinet.
Prefinish Popular But . . .
1964 Fifty-three percent of the engineers surveyed by AM say that they are now using some type of prefinished metal in appliances. Another 50 percent agreed that the biggest problem with prefinished metals is forming the material without fracturing or tearing the coating. One survey participant predicts that vinyl laminates will be used for the housing of washers and dryers by 1966.
. . . Forget the Buts
1990 Coated coil is poised for strong growth, say industry experts. Look for continued growth in refrigeration, while HVAC and laundry are about to come on strong. “Increased usage of coated-coil stock is very much a trend,” says Ken McInerney, market manager for appliance coatings, Glidden.
Switch to Stainless
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| Fold-out toaster/grill (inset) prototype as shown by the Copper Development Association in 1966. |
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1966 Thermador switches from a porcelain-coated steel for its dishwasher cavity to an all- stainless-steel cavity. Waste King follows with its announcement of a stainless-steel dishwasher cavity.
Case for Copper
1966 The Copper Development Association shows appliance prototypes using copper extensively. One prototype is a brass-trimmed toaster that folds out for use as a Teflon-
coated grill. Another prototype is a bimetal carving knife that physically bonds copper and stainless steel.
Powder Metal Power
1969 Maytag joins a growing number of appliance makers using powdered metal for critical parts. The process, pressing and sintering of metal powders is said to be a cost-effective means for ensuring tight tolerances.
Powder Paint Power
1987 Speaking on the growth of powder paint in appliance applications, Greg Bocchi, executive director of the Powder Coating Institute had this to say: “A little more than a decade ago, powder coatings played a minor role in appliance-finishing operations. Today, GE, Hobart, Whirlpool, Maytag and Tappan are using powder to replace liquid paints and porcelain enamel for refrigerators, freezers, washers, dryers, microwave ovens and air conditioners.”
More than a Pretty Surface
1978 Since its modest beginning in 1970 when Whirlpool introduced “touch and feel” steel refrigerator doors, embossed steel has been capturing an increasing
percentage of steel sales to the appliance industry. Sources predict a 30-percent market share for embossed steel within two to three years. While consumers like the embossed steel for its appearance and cleanability, the American Iron and Steel Institute reports that texturing cuts production-line reject rages, on average, by 70 percent.
POLITICS & THE ENVIRONMENT
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| A-Bomb test blast destroyed home one mile from test site. Refrigerator toppled. Range stands. |
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A-Bombed
1955 A-Bomb test blasts measure, among other things, the weapon’s effect on appliances within a mile of the blast. Appliance manufacturers participating in the test: Admiral, Duotherm, Frigidaire, Hotspot, Norge, Rex, Servel and Whirlpool.
Safety’s Inside Story
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| Amana’s 1956 refrigerator line with Lifeguard inside door release. A slight touch on the circular button, which glows in the dark, opens the door. |
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1956 A law requiring releases on refrigerator doors to prevent anyone from being trapped inside creates an industrywide stir. The Secretary of Commerce is expected to establish standards for such devices within 12 months and appliance makers will have 15 months after the standards are published to comply. Two firms–Admiral and General Electric—have releases on their refrigerator lines. The Admiral interior release glows in the dark to attract attention and slight pressure on the release unlatches the door. General Electric eliminate latches in favor of magnets that hold the door closed but allow easy opening from outside or inside.
Appliances & Sputnik
1957 Appliance makers prepare to feel the effects of stepped-up satellite and guided missile programs brought on by Russia’s success with Sputnik, the first man-made satellite to be successfully launched into orbit. President Eisenhower indicates that non-defense work, such as appliance production, is headed for some type of curtailment due to the increased emphasis on defense.
Execs Ponder Vietnam
1965 Expansion of the Vietnam conflict brings about talk of emergencies and materials allocation. Appliance makers want to know where they stand if the priorities system goes into effect. One way of being in the know is for appliance executives to volunteer for the Business and Defense Services Administration’s (BDSA) executive reserve pool. This force, which includes experts in the appliance field, numbers about 1,400. BDSA acquaints industry reservists, particularly in the Western states.
Not a Problem
1971 The problem of disposing discarded appliances is barely a problem at all, according to the Council on Environmental Quality in a report for the U.S. Department of Commerce. Junked appliances account for only one percent of U.S. solid waste. When compared to total landfill use, the space used to bury the 21 million appliances to be discarded this year is negligible. However, since the annual number is expected to rise to 29 million by the end of the decade, the report recommends that appliances should become part of a “resource-recovery cycle.”
Now It’s a Problem
1990 Landfills in states such as Florida and Minnesota are “just saying no” to discarded appliances. It’s estimated that 32 million used appliances will be discarded this year. “If retailers and OEMs could work with utility companies to develop programs for getting rid of used appliances in an environmentally sound manner, everyone could wear a white hat,” says Jack Cameron, president, Appliance Re-cycling Centers of America, a firm specializing in the disposing of appliances.
AM Launches Buy More Campaign
1975 Weak appliance sales due to the recession prompts AM to launch its “Buy More Appliances” program to help revitalize the industry while “demonstrating basic confidence in America.” The plan provides a $25 reimbursement to any employee of Cahners Publishing (publisher of AM at the time) who buys an American-made appliance and a 5-percent rebate to AM advertisers launching similar programs. AM also urges appliance makers and trade groups to assist via publicity and a special “Confidence in America” appliance sale.
Comings & Goings at AHAM
1977 Amana Refrigeration resigns from the Association of Home Appliance Manufacturers following a dispute over dues payment. Amana had objected to AHAM’s use of money from the general dues fund for litigation against the California State Energy Commission’s appliance-efficiency standards. Amana eventually rejoined AHAM.
1997 Whirlpool drops its 30-year membership in AHAM over refrigerator standards. Refrigerators are to be 30-percent more efficient by 2001, according to newly announced Department of Energy (DOE) standards. But that’s not soon enough for Whirlpool. Three years ago (1994), appliance makers in an industrywide pact, agreed to meet the tougher standards by 1998. Anticipating the tougher standards, Whirlpool invested heavily in the redesign of its refrigerators. However, after AHAM lobbying efforts, DOE extends the deadline to 2001, causing Whirlpool to leave AHAM.
1997 Before the year ends, Whirlpool rejoins AHAM after bylaws are amended to “assure that the association speaks with a common voice on matters of public policy.”
1998 AHAM moves its headquarters from Chicago, its home since 1967, to Washington.
Fed Sets Efficiency Targets
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| Vice president Walter Mondale and Honeywell Chairman Ed Spencer examine an Energy Cost Indicator, developed by Honeywell for the Department of Energy. The cost indicators were used in six U.S. and Canadian cities in a year-long demonstration in 1979 to measure how much energy homeowners would conserve when they literally watched their gas and electricity costs tick upward on the indicator. |
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1977 The Federal Energy Administration’s appliance energy program sets efficiency- improvement targets for white goods, room air conditioners, televisions and water heaters. Among the products expected to achieve the highest efficiency improvements: B&W TVs, 50 to 80 percent; color TVs, 50 to 80 percent; refrigerators/freezers, 43 to 50 percent; gas ranges, 43 to 50 percent; gas water heaters, 33 to 35 percent; room air conditioners, 28 t0 40 percent; and dishwashers, 22 to 40 percent.
DOE Weighs In
1980 Department of Energy minimum efficiency standards marks the first time the government tells appliance makers what they can and cannot produce. Manufacturers will not be able to market appliances and home-comfort products that do not carry the DOE “seal of approval.” The first group of appliances affected by the DOE standards are refrigerators and refrigerator-freezer, clothes dryers, water heaters, room air conditioners, ranges and ovens, central air conditioners and furnaces. The standards are to be met by July 1981.
Greatest Challenge Ever
1991 “While the refrigerator industry develops design challenges to meet 1993 energy efficiency standards using CFCs, meeting those standards without CFCs will be the greatest design challenge every encountered by the home-appliance industry,” contends Jack T. Weizerock, vice president, engineering and technical services, Association of Home Appliance Manufacturers (AHAM).
AHAM Responds to EPA
1993 Charles A. Samuels, AHAM’s government relations counsel, presents oral testimony on the EPA’s proposed CFC and HCFC phaseout schedules. Highlights of the testimony:
• AHAM supports accelerated CFC total phaseout by Jan. 1, 1996, with a phasedown to 25 percent of 1986 production by 1994. However, the EPA must be open to reconsidering the phaseout schedule if serious technological or manufacturing problems arise during the phaseout period.
• The likely replacements by most manufacturers for refrigerant CFC-12 will be HFC-134a and for foaming agent CFC-11, HCFC-141b.
• AHAM supports HCFC phaseout that sets dates for specific chemicals since this best simulates the real commercial environment. All HCFC production and consumption will cease in 2030.
Carrier Adds to EPA Program
1996 Carrier Corp. has broadened its participation in the Environmental Protection Agency’s (EPA) Energy Star Residential Program with the qualification of high-efficiency models in four product groups: unitary AC, heat pump, thermostats and zoning systems.
CPSC Stresses Cooperation
2001 Mary Gall, commissioner with the Consumer Product Safety Commission, commends AHAM and its members for their cooperative spirit when it comes to product-safety standards while speaking during at the AHAM Annual Member meeting.
MARKETING MILESTONES
Showtime
1953 New Westinghouse models are shown to dealers and salesmen in 33 states through the $1.5 million musical, “It’s All for You.” In Chicago, the show played to more than 2,500 at the Civic Opera House.
Showtime On Wheels
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| The GE appliance train in 1953. Units are shown on a revolving platform inside the train.. |
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1953 General Electric Co. is using two specially equipped trains to show its new models to distributors. Each train consists of three baggage cars serving as display halls, plus one Pullman car for 15 GE personnel. Each baggage car contains specific types of appliances: refrigerators, freezers and room air conditioners occupy one car; ranges and water heaters a second; and home-laundry equipment the third. This arrangement permits simultaneous showing of the complete line of major appliances. The train is to make 16 stops.
A Case for Obsolescence?
1956 Taking the lead of the car industry, Frigidaire introduces a promotion base on “appliance obsolescence.” With 80 percent of the U.S.-owned appliances being just10 years old, the strategy is to entice customers to trade up by continually introducing appliances with new features while allowing dealers to provide generous trade-in allowance.
1964 The debate over designing for obsolescence continues as Blanche R. Schultz, product evaluation engineer, Hotpoint Division of GE, voices her opposition. “Life should be built into a product. Built-in obsolescence is wrong. While a quality-less product is less expensive to produce, how much does it really cost–in terms of customers?” she asked. Apparently Schultz’s comments helped silence supporters of appliance obsolescence as the topic faded into obscurity as appliance makers began stressing product-life concerns
1998 More than 30 years later, the industry still isn’t talking of built-in obsolescence, but AHAM’s Executive Director for Marketing and Economic Data, John Jiambalvo, challenges the industry to promote the concept of Accelerated Replacement. “If consumers replace their older, less energy-efficient, less environmentally friendly appliances with today’s models, not only will they benefit from newer styles, features and technologies, they’ll also experience an environmental and energy-efficiency dividend because in these areas today’s products are the best that have ever been made.”
It’s Marketing, Stupid
1963 “The single, most important factor of the next 10 years in the appliance industry will be marketing,” says Julius Klein, president, Caloric Corp. “The appliance industry can grow and prosper only if it markets quality products properly. Our future depends on the appliance industry not selling strictly price, price, price. We must engineer, design and produce product that is the finest available, and then market and merchandise its value to the consumer.”
Ol’ Lonely Going Strong
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| Maytag’s Ol’ Lonely still going strong. Shown here is the late Gordon Jump, Maytag’s Ol’ Lonely from 1989 until he retired from the role in July 2003. |
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2002 Maytag marks 35th anniversary of its Ol’ Lonely repairman character. Maytag has the longest running ad campaign with a living icon.
Going for the Name
2002 Sweden-based Electrolux will begin attaching its Electrolux brand to the Frigidaire logo for the first time in North America on selected major appliances in the stainless steel Professional line, Frigidaire Gallery Series and Classic Series.
GOING GLOBAL
Whirlpool Gains Brazilian Presence
1959 A Brazilian appliance firm is being formed by Whirlpool and Companhia Industrial E. Commercial Brasmotor of Brasil. The new firm, Multibras Industria de Aparelhos Domesticos, will be operated by Brasmotor. The firm will make Whirlpool-designed appliances while Whirlpool will provide technical assistance.
1997 Whirlpool gains controlling interest in Brasmotor S.A., the company’s Latin American affiliate operation. Whirlpool also announced a global restructuring that will result in the elimination of 4,700 positions in Asia, Europe and North America.
Whirlpool Forms Chinese Joint Venture
1996 Whirlpool Corp. and Shenzhen Petrochemical Holdings Co., Ltd., Hong Kong, finalized an agreement to form a joint-venture company in China to make and market air conditoners. Shenzhen Whirlpool Raybo Air-Conditioner Industrial Co., Ltd., will produce both window and split air conditioners for local and export sale under the Whirlpool and Raybo brand names. Whirlpool owns controlling interest.
Electrolux Gains Brazil’s 2nd Largest
1996 Electrolux purchases controlling in-terest in Refrigeracao Parana S.A. (Refripar), ranked as Brazil’s second-largest maker of major appliances.
Electrolux Restructures
1998 Electrolux’ two-year restructuring program will result in the elimination of 12,000 workers and the closure of 25 factories and 50 warehouses. Electrolux’ worldwide workforce is 112,000 and its products are sold in nearly 100 countries.
Foreign Fridge Output to Top U.S.
1963 Foreign refrigerator manufacturer will outproduce their U.S. counterparts in1963 by better than 2 to 1, says G.T. Etheridge, vice president, Kelvinator International. “Free-world production of refrigerators outside the U.S. in 1963 will be between 8.5 million and 9 million units, compared to less than 4 million units produced in the U.S. Ross D. Siragusa, Admiral chairman of the board, concurs. He points out that American refrigerator exports have decreased since 1952 while European exports have increase sharply during the decade. In 1961, approximately 1 million refrigerators were exported by European manufacturers. Says Siragusa: “All segments of industry should take cognizance of this situation to prevent our being priced completely out of world markets.”
Japan to be No. 1
1971 By the year 2000, Japan’s Gross National Products will surpass U.S. GNP by “a sizable margin.” That’s the opinion of Dr. Herman Kahn, director of The Hudson Institute. Kahn made his prediction at the Steel Service Center Institute’s annual meeting where he warned that the U.S. will lose its advantage in more industries if U.S. trade policies aren’t toughened. He called for stronger stands in trade bargaining with Japan and a more meaningful program of international economic cooperation.
If You Can’t Beat Them, Let Them Join
1978 AHAM admits its first international members: Thorn Domestic Appliances, Ltd., Great Britain, a maker of touch controls for appliances, and Matsushita Electric Indus-trial Co., Ltd., the Japanese producer of Panasonic brands of microwave ovens, room air conditioners, refrigerators and clothes washers.
Offshore Savings
1986 An AM-Appliance Manufacturer survey shows that seven out of 10 respondents put price as the No. 1 reason for sourcing components and materials offshore. Savings average 20 percent for components and materials.
EC ’92: Big Deal?
1990 Nearly one out of two U.S. appliance makers (47.8 percent) view European Community 1992 as a positive force for their companies. However, about the same percentage (45.6) see it as no big deal. These were among the findings of an AM survey.
World Washer
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| Therm-O-Disc assembly production line in 1953, just six years after the company was founded. Therm-O-Disc is a leading supplier of temperature sensors and controls and is a subsidiary of Emerson and a part of Emerson Appliance Solutions and Emerson Climate Technologies. |
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1990 Whirlpool’s “World Washer” is designed for assembly in three countries: Brazil, India and Mexico. The World Washer design provides an affordable, compact washer that handles small (11 lb. loads); is manufactured offshore using local talent and materials; and uses low-cost, flexible manufacturing processes.
Lennox Global Formed
1995 Lennox International forms Lennox Global to expand the Dallas-based OEM’s presence in worldwide markets.
Carrier’s World
1998 Carrier President John Lord tells AM: “Within our industry, we have the greatest worldwide presence. With 59 percent of our business outside the U.S., we are the only major HVAC company doing the majority of its business outside its home country."
World Volume/Markets
1997 World volume sales of white goods have increased by 28 percent in the last five years and will jump another 43 percent by the year 2000. The highest growth rates will be seen in China, India, Indonesia, Thailand and Malaysia. China will dominate in volume terms, with 137.7 million units, almost 40 percent of total worldwide sales. This according to Euromonitor, a leading market-analysis firm in London.
Full-Line Haier Coming Soon
2000 Haier America, the U.S. arm of the global Haier Group based in China.
2003 Haier announces plans to expand capacity at its refrigerator plant in South Carolina. The company expects to have a 10 percent U.S. market share in refrigerators by 2005. It also expects to climb from 5th to 3rd in the overall world ranking of appliance makers.
Maytag Establishes Mexican Operation
2001 Maytag announces that it will establish a sub-assembly operation in Mexico to support its major-appliance manufacturing operations in the United States.
Maytag Enters/Exits China
1996 Maytag announces plans to invest $70 million in a China joint venture with Hefei Ronshida Group Corp. in Hefei, Anhui Province.
2002 Maytag announces that it will end its involvement in its China joint venture.
AM’s Euro Tour
2003 AM and Dream Marketing Inter-national Ltd. Via a purpose-built exhibition vehicle many products by many of the world’s leading suppliers will be exhibited at appliance-factory locations across the UK, Germany and Italy.
MERGER MANIA
The Fifties
1953 Silex Co. acquires Chicago Electrical manufacturing Co.
1955 Whirlpool Corp. merges with Seeger Refrigerator Co. and Estate Range and Air-Conditioning Divisions of RCA. (Company is renamed Whirlpool-Seeger Corp. In 1957, the name is changed back to Whirlpool Corp.
1956 McGraw Electric acquires Speed Queen Corp.
Silex acquires Enterprise Manufac-turing Co. (small electrics).
1957 Whirlpool merges with Birt-man Electric Co. adding vacuum cleaners to its line.
1959 McGraw-Edison acquires American Laundry Machinery Co.
The Sixties
1960 Eureka Co, merges with national Union electric Corp.
1964 Whirlpool acquires majority interest in Heil-Quaker Corp.
1965 Raytheon buys Amana
Refrigeration.
1966 SCM Corp. acquires Proctor-Silex.
1967 McGraw-Edison acquires Ingraham.
1968 City Investing picks up Rheem Manufacturing Co.
1969 Hoover acquires Knapp-
Monarch Co.
The Seventies
1970 Corning Glass Works acquires Salton, Inc.
1971 Magic Chef acquires Johnson Corp.
1972 McGraw-Edison acquires G.W. Murphy’s power-tool line.
1974 Eureka becomes part of AB Electrolux (Sweden).
1975 White Consolidated Industries buys Westinghouse, the appliance division of Westinghouse Electric Co. Name is changed to White-Westinghouse.
1978 Caloric acquires Glenwood Range Co.
1979 Carrier acquires Jenn-Air.
Emerson Electric purchases Skil Corp.
The Eighties
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| A.O. Smith motor test lab in the early 1950s. |
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1980 Toastmaster, Inc., is formed by management team through purchase of three consumer product operations from McGraw-Edison: Toastmaster appliances, Edison seasonal products, and Ingraham clocks and timers.
1981 AB Electrolux (Sweden) completes deal for Tappan.
1982 Magic Chef merges Gaffers & Sattler’s air-conditioning and heating operation into Johnson Corp. to become Magic Chef Air Conditioning Division.
1983 Chicago-based investment group picks up Emerson Quiet Kool from National Union Electric.
1984 American Standard acquires Trane.
1985 Chicago Pacific Corp. acquires the Hoover Co.
1986 AB Electrolux, Sweden, buys White Consolidated Industries, acquires all six brands.
Chicago Pacific buys Rowenta Group.
Maytag Corp. is formed following mid-1986 purchase of Magic Chef by Maytag Co. The firm embraces three appliance companies (with divisions): Maytag Co. (Jenn-Air and Jenn Industries), Admiral Co. (Norge, Revco, and Warwick), and Magic Chef (Hardwick).
Speed Queen purchases Holiday-Hammond.
White Consolidated Industries acquires Design & Manufacturing Corp.
1989 Maytag Corp. buys Chicago Pacific Corp., parent of Hoover Co.
AB Electrolux, Sweden, through its White Consolidated Industries unit, acquires from the GE the lawn-equipment business of Roper Corp.
Whirlpool Corp. acquires 53 percent of the Major Domestic Appliance (MDA) Division of N.V. Philips of the Netherlands to form Whirlpool International, B.V. In 1991, Whirlpool picks up remaining 47 percent.
Broan Manufacturing Co., Inc., buys the residential air-comfort business of Aubrey Manufacturing, Inc.
The Nineties
1991 AB Electrolux’s WCI Major Appliance Group is renamed Frigidaire Co.
Inter-City Products purchases Snyder-General Corp.’s Dealer Products Group.
1997 Electrolux announces merger of its U.S. major appliance and outdoor products companies, namely Frigidaire, American Yard Products and Poulan/Weed Eater.
1997 Goodman Holding Co., LP purchases Amana’s home-appliance, commercial-cooking and HVAC business segments from Raytheon. Goodman operates Amana as a limited partnership, doing business as Amana Appliances and Amana Heating and Air Conditioning.
The ’00s
2001 Maytag acquires Amana Ap-pliances from Goodman Holdings.
For reprints of this article, contact Jill DeVries @ 248-244-1726 or devriesJ@bnpmedia.com.
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