August 28, 2009

Calling Bullshit : We're going to need to boycott Whirlpool

Whirlpool today announced that it was closing a plant in Indiana, laying off 1100 workers, in an effort to 'trim production capacity'.

Whirlpool Corp. announced Friday it will close its Evansville, Ind., factory next year, moving the plant's production of top-freezer refrigerators to a facility in Mexico.

Citing the need to trim manufacturing capacity, Whirlpool said the mid-2010 plant closure will eliminate 1,100 full-time jobs.

Whirlpool /quotes/comstock/13*!whr/quotes/nls/whr (WHR 66.09, +1.55, +2.40%) , like most manufacturers, has seen its sales slump over the past year as a global economic recession and housing market slump hurt demand for home appliances. Whirlpool's latest revenue numbers show sales in the second quarter fell 18% to $4.17 billion from the second quarter of 2008.

Closing the Evansville plant is part of Whirlpool's ongoing drive to consolidate its North American manufacturing operations.

The company said it is also considering relocating its Evansville refrigeration product development center, a move that would affect another 300 jobs. "A decision is expected in the near future," the company said.

Trim production capacity? Nah, you're moving jobs to a cheaper labor environment. How much cheaper is it really? Will the cheaper labor offset higher transport costs and brand damage? And by brand damage I mean me and everyone who reads this telling everyone they know not to buy your products? How much do you think your stock price will take a hit when your sales start to crash?

Seriously, how the hell is the country supposed to come out of the recession without jobs?

Posted by mcblogger at August 28, 2009 02:48 PM

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