General Electric Corporation is investing US$100 million in the launch a new top load washing machine as it waits to sell its US$3.3 billion business to Electrolux AB. Global analysts are suggesting that this may be a sign that it is losing confidence that the sale will proceed.
The new investment is also a sign of confidence in topload washers, despite the recent growth of frontload washer models. Meanwhile, Electrolux said last month, that it was confident the deal to buy GE’s appliance business announced in September 2014 will be completed this year, despite the fact that the US Justice Department is blocking the deal over antitrust concerns.
GE investment in the new washer design includes the expansion of the manufacturing capabilities at its laundry plant in Louisville, US. “While frontload washers have surged in popularity the last decade, the traditional topload washer is 75% of washer sales and remains the most popular style of washer in the US today,” GE Appliances general manager of clothes care Peter Pepe .