WAVE 3 TV Louisville, KY | Report: G.E. appliance operation for sale

Report: G.E. appliance operation for sale

By Scott Harvey

LOUISVILLE (WAVE) -- WAVE 3 was the first to tell you about reports of General Electric looking to get out of the appliance business. Since we learned about this, WAVE 3's Scott Harvey has been attempting to contact GE officials about it.

We've contacted both local and national media reps for GE and everyone we've talked with had the same thing to say, "We are not commenting." We tried to talk with employees at GE's Appliance Park. They told us that they hadn't heard anything about it.

The economy and the slumping housing market are once again in the crosshairs of corporate America. According to the Wall Street Journal, GE has contacted Goldman Sachs to auction off its appliance division, which is expected to bring in anywhere from five to eight billion dollars.

Reports say CEO Jeff Immelt has been under pressure to restructure the company after first-quarter profits fell six percent. In an interview with CNBC last month, he hinted that the sale was possible.

"From an industrial standpoint, I think the company is going to be just fine. Even in a slower US economy," Immelt said. "Appliances is going to be tough all year. It's just not that big of a part of the company."

So the big question is, what will happen to the 5,000 jobs at Louisville's Appliance Park?  That will be up to the new owner once the auction is over.

In a statement released Wedensday night to WAVE 3, Mayor Jerry Abramson said: "I reached out to General Electric leaders within the past 10 days based on my concerns about additional job cutbacks at their Louisville operations. Officials told me they were looking at possible reductions throughout their global operations, including Louisville, but they did not indicate that selling Appliance Park was part of their plans. "Louisville has been a successful and strategic part of General Electric for many years. We will certainly make the case -- to GE or to any potential buyer -- that Louisville is the best place to continue operations and headquarters. I will work Governor Beshear and our economic development partners at Greater Louisville Inc. to keep jobs, operations and headquarters in Louisville."

Online Reporter: Scott Harvey

Online Producer: Charles Gazaway