Whirlpool in Conspiracy to Screw GE:  So Says GE

Whirlpool in Conspiracy to Screw GE: So Says GE

GE filed suit against Whirlpool claiming that Whirlpool’s earlier venture in illegal price fixing (2004 – 2007) through its Brazilian compressor manufacturer, Embraco, had unfairly hurt the GE refrigeration business.  One  imagines that once there’s a guilty plea on the table, as there is one here, it would be so much more difficult to fend off a suit such as this.

Price fixing by Whirlpool begets competitive advantage for Whirlpool, which is an unfair disadvantage to GE.  They could almost start calculating damages today.

See the Wall Street Journal Article

11 Responses to Whirlpool in Conspiracy to Screw GE: So Says GE

  1. Business in Brazil is funny. I suspect if you investigate deep enough you will find more companies who actually own some of the natural resources and put others at a distinct disadvantage. GE should talk the way they controlled costs of plastics years ago. Nevertheless this is a bigger problem on both components and natural resources like some metals ,etc.Funny place for cronyism in Brazil but I suspect it goes much deeper than this one Advisor.

    • AS, quite possible. But being the only person who controls a resource is not price fixing…it is a supply and demand issue. The guilty plea I think advisor is referring to is the determination by the European Union to fine 212 million against four compressor companies who conspired to keep prices high. Big difference from being the only person with a product. The guilty plea can be read about here:

      http://www.bloomberg.com/news/2011-12-07/whirlpool-panasonic-fined-in-216-million-eu-compressor-cartel.html

      • Tagoneo. Controlling the resources in this type of case has given some of these companies a tremendous cost advantage. Make no mistake that is how some of these resource rich countries are aligning in specific cases. Conspiring to keep prices high ?
        Sounds like MSRP. We can be criical of Europe and this issue but we should also understand what we do.Some of us dealing with motors can tell you the pricing issues and quality leave one wondering. It is the same issue in different clothes. But what do I know right Tagoneo ?

        • A company seeing the potential of a resource and then buying the rights to it is considered price fixing? Since when is speculation with a payoff price fixing? If that is the case, then that pretty much makes Wall Street illegal. The article I posted is about four manufacturers sharing information and conspiring to keep prices for their finished product high.

          So to your question at the end there…I say that I do not know what you know. But opinions do vary.

          • You can’t be serious can you ? A company buys the resource as part of their finished product , sells it to themselves for half of what it sells the resource to other people and you don’t see a problem with that ? It would be like GM owning a steel mill , selling the steel to themselves for cost and then charging Toyota triple the price ? You think that would pass muster ? Now look at motors , one or two companies are buying up all the manufacturers of those products , so when they offer a broad range of products and there are only one or two other competitors you don’t think price fixing is not happening ? It happens all the time ,just like MSRP in the appliance industry. You think people are not protecting good margins ? All I am saying it is the same thing in different clothing.

        • Here he goes again…..Do you have any friends on here
          Advisor you need to take this joker out to the woodshed and give him an old fashioned ass whipping!
          Your need to comment on every issue as the expert is absurd.
          Why not start your own site and save us from your insanity!

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