Electrolux

From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about the appliance manufacturer. For other uses, see Electrolux (disambiguation).
AB Electrolux
Type Public Aktiebolag
Traded as OMXELUX B
Grey MarketELUXF
Industry Appliances
Founded 1918
Headquarters Stockholm, Sweden
Area served Worldwide
Key people Keith McLoughlin (President and CEO), Ronnie Leten (Chairman)
Products Major appliances, Small appliances
Revenue SEK 101.60 billion (2011)[1]
Operating income SEK 3.017 billion (2011)[1]
Profit SEK 2.64 billion (2011)[1]
Total assets SEK 76.384 billion (end 2011)[1]
Total equity SEK 20.644 billion (end 2011)[1]
Employees 52,916 (average, 2011)[1]
Parent Investor AB (13.6%)
Website www.electrolux.com

AB Electrolux (commonly known as Electrolux) is a multinational appliance manufacturer, headquartered in Stockholm, Sweden.[2] It is consistently ranked the world's second-largest appliance maker by units sold (after Whirlpool).[3] Electrolux products sell under a variety of brand names (including its own), and are primarily major appliances and vacuum cleaners intended for consumer use.[4] The company also makes appliances for professional use.[5]

Electrolux has a primary listing on the Stockholm Stock Exchange and is a constituent of the OMX Stockholm 30 index.

History[edit]

The Autoluxlamp, a kerosene lamp manufactured by Lux and used in railway stations around the world in the early 20th century.

Electrolux originated from the merger of two Swedish companies, one an established manufacturer and the other a newer company founded by a former vacuum salesman who, incidentally, was a former employee of the former firm.[6]

The different sections of the Electrolux refrigeration apparatus assembled by acetylene gas welding of AB Electrolux in Motala, 1947.

Electrolux's history is closely tied to the vacuum cleaner, but today it makes all major appliances.

Lux AB, incorporated in 1901 by Sven Carlson, was a Stockholm-based maker of large kerosene lamps for railway stations, based on an invention by David Kempe.[7][8] In 1912 it had factories on the Lilla Essingen island in Stockholm and in Riga, then part of imperial Russia.[citation needed] As competitors started to make similar models and electric lighting started to compete with kerosene, Lux needed a new product and in 1912 started to manufacture electric vacuum cleaners[citation needed].

The name changed to Elektrolux in 1918 when the company merged with Svenska Elektron AB (the spelling was changed to "Electrolux" in 1957).[9] In 1918, the company had 400 employees[citation needed].

Sales company to major manufacturer[edit]

By 1925, Electrolux added absorption refrigerators to its product line[10][11] and other appliances soon followed: washing machines in 1951,[12] dishwashers in 1959,[12] and food service equipment in 1962,[13] etc.

Mergers and acquisitions[edit]

Electrolux has frequently and regularly expanded through mergers and acquisitions. While Electrolux had bought several companies before the 1960s, that decade saw the beginnings of a new wave of M&A activity. The company bought ElektroHelios, Norwegian Elektra, Danish Atlas, Finnish Slev, and Flymo, et al., in the nine years from 1960 to 1969.[13] This style of growth continued through the 1990s, seeing Electrolux purchase scores[14] of companies including, for a time, Husqvarna.[14][15]

Hans Werthén[edit]

Hans Werthén, a president and later Chairman of the Board, led the development of an increasingly decentralized Electrolux during the late 1960s — and was instrumental to its rapid growth.

Restructuring[edit]

While attempts to cut costs, centralise administration, and wring out economies of scale from Electrolux's operations were made in the 1960s and 1970s[13][14] with the focus so firmly on growth,[14] further company-wide restructuring efforts only began in the late 1990s.[16]

A public company[edit]

Electrolux made an initial public offering on the London Stock Exchange in 1928 (it was delisted in 2010)[17] and another on the Stockholm Stock Exchange in 1930.[11][18]

Currently its shares trade on the NASDAQ OMX Nordic Market and over-the-counter, too.[19] Electrolux is an OMX Nordic 40 constituent stock.

2000 to present[edit]

In North America the Electrolux name was long-used by a vacuum cleaner manufacturer, Aerus LLC, originally established to sell Swedish Electrolux products. In 2000, Aerus transferred trademark rights back to the Electrolux Group. Aerus stopped using the Electrolux brand in 2004.[20] Before 2000 Electrolux-made vacuums carried the Eureka brand name, and while Electrolux continued to make Eureka-branded vacuums after it regained the right to use its own brand, it also began selling Electrolux-branded vacuums, too. Electrolux USA customer service maintains a database of Electrolux-made vacuums and provides a link to Aerus in case an Electrolux-branded vacuum cleaner was made by Aerus.

Keith McLoughlin took over as President and CEO on January 1, 2011, and became the company's first non-Swedish chief executive.

In August 2011, Electrolux acquired the Chilean appliance manufacturer CTI from Sigdo Koppers, obtaining several brands with the purchase (including Fensa, Gafa, Mademsa and Somela).[21]

Electrolux moved its North American headquarters from Augusta, Georgia, to Charlotte, North Carolina, in December 2009[citation needed].

GE Appliances acquisition[edit]

On 8 September 2014, General Electric agreed to sell their Appliances unit to Electrolux for US$3.3 billion in cash.[22]

The Electrolux acquisition was the result of General Electric's nearly six-year long plan to sell the Appliances division that included negotiations with Electrolux and other firms, such as Samsung and LG.

The deal will combine Electrolux's existing primary US mainstream appliance brand, Frigidaire, with GE's stable of products, including the Monogram line of luxury appliances.[22]

The transaction - the largest ever for Electrolux, the second-largest consumer appliance manufacturer after Whirlpool - will nearly double Electrolux’s business in North America (the market that represented nearly 29% of Electrolux's revenue in 2013).[22] The deal, which is currently pending U.S. regulatory approval and carries a US$175 million termination fee clause if Electrolux is unable to complete the acquisition, is expected to close in 2015.[22]

As part of the deal, Electrolux agreed to continue using the GE Appliances brand names, such as the mainstream "GE" appliance marque, for a limited period, and also agreed to assume General Electric's 48.4% stake in Mabe, a Mexican appliance manufacturer.[22]

Eureka Zuum vacuum promotion in Canada[edit]

To release the Eureka Zuum in Canada, Electrolux hired Pilot PMR to launch the "LoveToVacuum" campaign in 2009, which encouraged Canadians to embrace vacuuming and housecleaning with v-cards (vacuum cards).[23]

Electrolux vacuums in Britain[edit]

In the 1960s, Electrolux successfully marketed vacuum cleaners in Britain with the slogan, "Nothing sucks like an Electrolux".[24] In the United States, it was often assumed that the slogan was a brand blunder. As it was, however, the informal US meaning of the phrase was already well known by both the British populace and Electrolux's executives at the time, and Electrolux hoped the slogan, with its possible double entendre, would gain attention.[25]

In the UK, Electrolux no longer brands their vacuum cleaner products with their own brand marque; rather, they use a plethora of other brands, such as Zanussi for more economy-oriented vacuums and AEG for premium ranges. Electrolux has also manufactured floorcare products for John Lewis and offered its own vacuum cleaners to UK catalogues.

Australia refrigerator plant shutdown[edit]

In October 2013, Electrolux decided to close the last refrigerator manufacturing plant in Australia.[26]

Brands[edit]

An Electrolux canister vacuum cleaner

Electrolux sells under a wide variety of brand names worldwide. Most of them were acquired through mergers and acquisitions and only do business in a single country or geographic area. The following is an incomplete list.

  • AEG
  • Arthur Martin-Electrolux
  • Atlas
  • Beam, Electrolux's central vacuum brand [27]
  • Castor
  • Chef
  • Corberó
  • Dito, professional food processing equipment[28]
  • Electrolux ICON, premium consumer appliance brand sold in the US [29]
  • Elektro Helios, manufacturer of consumer appliances for the Swedish market [30]
  • Electrolux Laundry Systems
  • Electrolux Professional
  • Eureka, American consumer vacuum cleaner brand [31]
  • Faure, French consumer appliance maker [32]
  • Fensa, Chilean consumer appliance brand, widely available in Latin America.
  • Frigidaire, full range major appliance brand sold globally [33]
  • Gafa, Argentinean appliance manufacturer.
  • Gibson, refrigerator and air conditioning manufacturer [34]
  • Juno-Electrolux, premium consumer kitchen appliance brand [35]
  • Kelvinator, commercial refrigerator and freezer brand sold in Australia and elsewhere [36]
  • King, Israeli kitchen appliance brand made by REX-Electrolux, an Italian Electrolux subsidiary[citation needed].
  • Lehel, consumer appliance brand sold in Hungary and elsewhere
  • Mademsa, Chilean home appliance brand
  • Marynen/Marijnen, consumer product brand sold in the Netherlands[37]
  • Molteni, professional stoves[38]
  • Olympic Group, home appliance brand
  • Parkinson Cowan, cooking appliances
  • Philco, former U.S. consumer electronics manufacturer, though brand name is also used separately by Philips Electronics
  • Progress, vacuum cleaner brand sold throughout Europe[39]
  • Prosdócimo, refrigerator, fridge and air conditioning brand sold in Brazil
  • REX-Electrolux, Italian appliance manufacturer [40]
  • Rosenlew, consumer product brand sold in Scandinavian countries [41]
  • Sanitaire, commercial product division of Eureka
  • Simpson, consumer appliance brand sold in Australia[42]
  • Somela, Chilean home appliance brand, available throughout Latin America [43]
  • Tornado, vacuum cleaners and other consumer products [44]
  • Tappan, former U.S. appliance manufacturer
  • Therma
  • Tricity Bendix
  • Volta, vacuum cleaner brand sold in Australia, Sweden and elsewhere[45]
  • Voss, premium consumer cooking appliance and equipment supplier in Denmark and elsewhere [46]
  • Wascator
  • White-Westinghouse, former U.S. appliance manufacturer
  • Zanker, consumer kitchen appliance brand sold in central Europe[47]
  • Zanussi, Italian appliance manufacturer that became part of Electrolux in 1984 [48]
  • Zanussi Professional, professional kitchen equipment manufacturer [49]
  • Zoppas, consumer products brand sold in Italy [50]

Please note:This list does not include brands such as Kenmore, which may sell Electrolux-produced appliances but are not owned by or affiliated with Electrolux. (Electrolux acts as an OEM for these brands.)

Notable products[edit]

Electrolux "Assistent" [sic], 1940.

Slogan[edit]

The company's current international slogan is "Thinking of you".[54]

Controversy[edit]

In 2003 the Equal Employment Opportunity Commission resolved a complaint that Muslim workers at the St. Cloud factory were not allowed a sufficient number of breaks to observe their daily prayers.[55]

In 2010 and again in 2011 complaints against the company were filed by Muslim workers in Electrolux's plant in St. Cloud, Minnesota, with the Equal Employment Opportunity Commission. The 2010 complaint, that workers were not able to observe Ramadan, was resolved.[56] The 2011 complaint stems from the 30-minute breaks agreed to in 2010 being later reduced to 20 minutes by Electrolux.[57]

See also[edit]

References[edit]

  1. ^ a b c d e f "Annual Results 2011" (PDF). Electrolux. Retrieved 18 April 2012. 
  2. ^ "Electrolux Group Headquarter". Electrolux. Retrieved 8 May 2014. 
  3. ^ "Major Appliances Millionaires Club - new 2010 company rankings". euromonitor.com. Euromonitor International. December 3, 2010. Retrieved 9 May 2014. 
  4. ^ "National consumer brands; Electrolux Group". Electrolux.com. Retrieved 2010-08-31. 
  5. ^ "About Electrolux: Products". Group.electrolux.com. 2013-03-26. Retrieved 2013-05-07. 
  6. ^ Gantz, Carroll (2012). The Vacuum Cleaner: A History. McFarland. ISBN 9780786465521. 
  7. ^ Lux, Nordisk familjebok' (1912).
  8. ^ Lux, Nordisk familjebok (Supplement, 1925).
  9. ^ "History 1910-1919 | Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  10. ^ "Revolutionary products; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  11. ^ a b c "History 1920-1929 | Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  12. ^ a b c "History 1950-1959 | Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  13. ^ a b c "History 1960-1969 | Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  14. ^ a b c d "A new president with new strategies | Electrolux Group". Group.electrolux.com. Retrieved 2010-09-05. 
  15. ^ "History 1970-1979 | Electrolux Group". Group.electrolux.com. Retrieved 2010-09-05. 
  16. ^ "History 1990-1999 | Electrolux Group". Group.electrolux.com. Retrieved 2010-09-05. 
  17. ^ "Electrolux delisted from the London Stock Exchange ; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  18. ^ a b c "Growth and industrial design ; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  19. ^ "The Electrolux share | Electrolux Group". Group.electrolux.com. Retrieved 2010-09-02. 
  20. ^ [1]
  21. ^ "Electrolux acquires Chilean appliance company CTI | Electrolux Group". Group.electrolux.com. Retrieved 2013-05-07. 
  22. ^ a b c d e Chad Bray (8 September 2014). "In 2nd Try, Electrolux Reaches Deal to Buy G.E. Appliances Unit, for $3.3 Billion". The New York Times. Retrieved 9 September 2014. 
  23. ^ Marketing Magazine, October 13, 2009 "Electrolux has Eureka moment with vacuum cards Retrieved January 20, 2014
  24. ^
  25. ^ "The Project Gutenberg Etext of The New Hacker's Dictionary version 4.2.2". Gutenberg.org. Retrieved 2013-05-07. 
  26. ^ Patty Anna (25 October 2013). "Electrolux to shut last local fridge plant". Sydney Morning Herald. Retrieved 25 October 2013. 
  27. ^ "Brand – Beam; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  28. ^ "Brand – Dito-Electrolux; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  29. ^ "Official Electrolux ICON Site - Electrolux ICON Appliances". Electroluxicon.com. Retrieved 2010-08-31. 
  30. ^ "Brand – Elektro Helios; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  31. ^ "Brand – Eureka; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  32. ^ "Brand – Faure; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  33. ^ "Brand – Frigidaire; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  34. ^ "Brand – Gibson acquired by Hupp Corporation;". Retrieved 2010-08-31. 
  35. ^ "Brand – Juno-Electrolux; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  36. ^ "Kelvinator Commercial". 
  37. ^ "Brand – Marijnen; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  38. ^ "Brand – Molteni; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  39. ^ "Brand – Progress; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  40. ^ "Brand – Rex Electrolux; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  41. ^ "Brand – Rosenlew; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  42. ^ "Brand – Simpson; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  43. ^ "Somela - Exportaciones". Somela.cl. Retrieved 2013-05-07. 
  44. ^ "Brand – Tornado; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  45. ^ "Brand – Volta; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  46. ^ "Brand – Voss-Electrolux ; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  47. ^ "Brand – Zanker ; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  48. ^ "/ Electrolux 90 Years of Innovation and Design". Electrolux.com.sg. Retrieved 2010-08-31. 
  49. ^ "Brand – Zanussi Professional ; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  50. ^ "Brand – Zoppas ; Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  51. ^ "Svensk Köksmaskin Hushållsassistent Köksassistent Kitchen machine Kitchen Assistant - Bäst i Test". Assistent Original. Retrieved 2010-08-31. 
  52. ^ "History 1940-1949 | Electrolux Group". Group.electrolux.com. Retrieved 2010-08-31. 
  53. ^ "Trilobite 2.0". Trilobite.electrolux.com. Retrieved 2010-09-02. 
  54. ^ "Vac from the Sea". Electrolux.se. 2011-12-10. Retrieved 2013-05-07. 
  55. ^ "EEOC and Electrolux Reach Voluntary Resolution in Class Religious Accommodation Case". Equal Employment Opportunity Commission. 2003-09-24. Retrieved 2012-06-16. 
  56. ^ "EEOC and Electrolux Reach Settlement in Religious Accommodation Charge Brought by Muslim Employees". Equal Employment Opportunity Commission. 2010-08-06. Retrieved 2012-06-16. 
  57. ^ "Muslim St. Cloud Electrolux workers file EEOC complaint". Minnesota Public Radio. 2011-08-23. Retrieved 2012-06-16. 

External links[edit]