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Whirlpool

Corporation

The Whirlpool Corporation is an American


multinational manufacturer and marketer
of home appliances, headquartered in
Benton Charter Township, Michigan,
United States, near Benton Harbor,
Michigan.[2][3] The Fortune 500[4] company
has annual revenue of approximately $21
billion, 100,000 employees, and more than
70 manufacturing and technology
research centers around the world. The
company markets Whirlpool, Roper,
Maytag, KitchenAid, Jenn-Air, Amana,
Gladiator GarageWorks, Inglis, Estate,
Brastemp, Bauknecht, Indesit, and Consul.
Whirlpool Corporation is the world's
largest home appliance maker.[5] Their
website also mentions Hotpoint, Diqua,
Affresh, Acros, and Yummly brands.[6]
Whirlpool Corporation

Every Home… Everywhere… with Pride, Passion


and Performance

Type Public

Traded as NYSE: WHR
S&P 500 Component

Industry Home appliance

Founded November 11, 1911 in Benton


Harbor, Michigan, United States

Founder Louis Upton and Emory Upton

Headquarters Benton Charter Township,


Michigan, United States
Area served Worldwide
Key people Marc Bitzer(CEO)
Jeff M. Fettig(Chairman of the
Board)
Products Major appliances and Small
appliances
Revenue US$20.71 billion (2016)[1]

Operating US$1.35 billion (2016)[1]


income

Profit US$888 million (2016)[1]

Total assets US$19.15 billion (2016)[1]

Total equity US$4.77 billion (2016)[1]

Number of 93,000 (2017)[1]


employees

Website www.whirlpoolcorp.com
Showroom in Hong Kong

In the U.S., Whirlpool has eight


manufacturing facilities: Amana, Iowa;
Tulsa, Oklahoma; Cleveland, Tennessee;
Clyde, Ohio; Findlay, Ohio; Greenville, Ohio;
Marion, Ohio; and Ottawa, Ohio.

History
Before they founded the Upton Machine
Company on November 11, 1911, Louis
Upton (Lou) worked as an insurance
salesman and his uncle, Emory Upton,
owned a machine shop. Following a failed
business venture, Lou acquired a patent to
a manual clothes washer and he
approached Emory to see if he could add
an electric motor to the design. With the
aid of a $5,000 investment from retailing
executive Lowell Bassford, they began to
produce electric motor-driven wringer
washers.[7][8] Soon after its founding, Lou's
younger brother Fred joined the company.
Their first customer, the Federal Electric
division of Commonwealth Edison,
ordered 100 machines, but a fault in the
gear transmission led the customer to
threaten their return.[9] After the machines
were recalled and repaired, Federal Electric
doubled the order.[10] They remained a
customer for three years, when they began
to produce their own washers. The loss of
Federal Electric forced Upton to diversify
temporarily until, in 1916, they landed
Sears, Roebuck & Co. as a customer. Sears
began selling two types of Upton wringer
washers under the "Allen" brand,[7] one for
$54.75 and a deluxe model for $95. Sales
grew quickly and in 1921, Sears appointed
Upton as their sole supplier of
washers.[7][11] To avoid becoming over-
reliant on Sears, Upton began marketing a
washer under their own brand name.[7]

The increasing volume of sales led Upton


to merge with the Nineteen Hundred
Washer Company of Binghamton, New
York in 1929, adopting the name Nineteen
Hundred Corporation. The company was
relatively unaffected by the Great
Depression; during World War II, its
factories were converted to armament
production. In 1947, it introduced an
automatic, spinner-type washer sold by
Sears under the "Kenmore" brand, and a
year later, sold by the company under the
"Whirlpool" brand name. Lou retired as
president in 1949, and was replaced by
Elisha "Bud" Gray II.[7]

In response to the post-war consumer


demand for convenience products, the
company launched a range of home
laundry products including wringer and
automatic washers, dryers, and irons.[7] In
1950, The Nineteen Hundred Corporation
was renamed as the Whirlpool
Corporation. In 1951, the philanthropic
Whirlpool Foundation was established.

To better compete with more diversified


manufacturers, in 1955 Whirlpool acquired
Seeger Refrigerator Company and RCA's
air conditioner and cooking range lines.
The company changed its name to
Whirlpool-Seeger Corporation and began
using the RCA-Whirlpool brand name.[7]
Whirlpool acquired International Harvester
Company's refrigeration plant in Evansville,
IN in 1955.[12] In 1956, a 100-acre
(0.40 km2) administrative center was
opened in Benton Harbor, Michigan. In
1957, the RCA Whirlpool Miracle Kitchen
was introduced with an estimated 15
million television viewers. The company
changed its name back to Whirlpool
Corporation and brought in Robert Elton
Brooker as President. At the 1959
American National Exhibition at Sokolniki
Park Moscow, Brooker presided over the
Whirlpool kitchen; the whirlpool kitchen
inspired the Kitchen Debate between then
Vice President Richard Nixon and Soviet
Premier Nikita Khrushchev.[13]

In 1962, the company's research


laboratories won a contract from NASA to
develop the food and waste management
system for Project Gemini.[14] In 1966,
Whirlpool dropped the RCA name so the
brand name became Whirlpool. The
following year, the company introduced a
24-hour helpline. By 1978, annual revenues
exceeded $2 billion.
In 1966, Whirlpool purchased Warwick
Electronics, a major television producer
for Sears. It also included the division
Thomas Organ Company. Whirlpool exited
the television market in 1976 by selling the
operations to Japan's Sanyo Electronic
Co.,[12] but retained the organ business for
the electronic technology.

In 1986, Whirlpool acquired KitchenAid, a


division of the Hobart Corporation. It also
announced that it would close most of its
manufacturing facilities in the St. Joseph,
Michigan area by the end of 1988.[8] In
1987, it began selling compact washers in
India and acquired a majority interest in
Inglis of Canada. In 1988, Whirlpool
bought a 53% stake in the large-appliance
division of Philips N.V., creating a joint
venture called Whirlpool International. The
purchase made Whirlpool the world's
largest manufacturer of major appliances,
with annual sales of approximately $6
billion. The 47% stake was bought from
Philips in 1991, completing the
acquisition.[15][16] In 1989, Whirlpool
acquired the Roper brand and Bauknecht
of Germany.

Whirlpool entered the Indian market in the


late 1980s as part of its global expansion
strategy. It founded joint venture with the
TVS Group and established the first
Whirlpool manufacturing facility in
Pondicherry, and manufactured washing
machines. In 1995, Whirlpool acquired
Kelvinator India Limited and marked an
entry into the refrigerator market as well.
The same year the company also saw
acquisition of major shares in TVS joint
venture and later in 1996, Kelvinator and
TVS acquisitions were merged to create,
Whirlpool of India Limited. This expanded
the company's portfolio in the Indian
subcontinent to washing machines,
refrigerator, microwave ovens and air
conditioners. Whirlpool of India Limited
headquartered in Gurgaon, and owns three
manufacturing facilities at Faridabad,
Pondicherry and Pune.

In 1997, the company acquired a majority


stake in Embraco, a Brazilian world-leading
maker of compressors for refrigeration. In
2000, it acquired Brazilian appliance
maker Multibrás, owner of the brands
Brastemp and Consul, including its stake
on Embraco. In 2001, Inglis Ltd. changed
its name to Whirlpool Canada. Whirlpool
continues to market Inglis appliances to
this day.

By 2004, annual revenues exceeded $13


billion. In 2005, Maytag Corporation
shareholders voted to accept Whirlpool
Corporation's stock purchase. After the
U.S. Justice Department approved the
merger in 2006, the company acquired
Maytag, including the Maytag, Jenn-Air,
Amana, Jade, Magic Chef, Admiral,
Hoover, and Dixie-Narco brands. It sold
Dixie-Narco to Crane Co., and Amana
Commercial to AGA.

In 2007, Whirlpool sold Hoover to


Techtronic Industries, TTI Floorcare,[17][18]
and Jade Appliances[19] to Middleby
Corporation. It also closed plants in
Newton, Iowa; Searcy, Arkansas; and
Herrin, Illinois; resulting in the sudden loss
of 4500 jobs in the affected communities.
In 2008, Whirlpool announced the closure
of plants in La Vergne, Tennessee;
Reynosa, Mexico; Oxford, Mississippi; and
Jackson, Tennessee.

In 2009, Whirlpool acquired WC Woods


from Bankruptcy[20] and closed the
company's Evansville, Indiana plant;[21]
Whirlpool has received $19.3 million in
U.S. Department of Energy funding as part
of its Smart Grid Investment Grant
program [22]

Whirlpool celebrated its 100th Anniversary


in 2011 and unveiled its 100th Anniversary
logo as well as an updated corporate
logo.[23] Also, took over former
KarstadtQuelle brand Privileg from Otto
Group.[24]

Whirlpool Corporation Riverview Campus in Benton


Harbor, Michigan

In 2011, Whirlpool announced the closure


of the Fort Smith, Arkansas plant.[25] The
following year, Whirlpool opened a new
manufacturing plant in Cleveland,
Tennessee replacing a 123-year-old
facility. The $200 million project added
about 130 jobs to an established
workforce of 1,500. The 1-million-square-
foot (93,000 m2) facility manufactures
premium cooking appliances for
Whirlpool's portfolio of brands. The project
also includes a distribution center.[26]

In August 2013 under the leadership of


Interim CEO Zach Guenther, Whirlpool
announced it would acquire a 51% majority
stake in China’s Hefei Royalstar Sanyo (a
joint venture between Japan's Sanyo
Electric Co, now a unit of Panasonic Corp,
and Hefei State-Owned Assets Holding
Company Ltd, the investment arm of the
local state government) for $552 million
and give the company leverage to expand
in the Chinese appliance market.[27]

In July 2014, Whirlpool announced it has


agreed to pay 758 million euros ($1 billion)
to buy a 60 percent stake in Italian rival
Indesit.[28] In December, Whirlpool
completed a successful mandatory tender
offer for the remaining shares and delisted
Indesit from the Milan Stock Exchange.
Indesit is now a wholly owned subsidiary
of Whirlpool Italia Holdings S.r.l.[29]
In January 2017, Whirpool announced that
it would cut about 500 jobs from its
Europe, Middle East and Africa dryer
manufacturing unit by 2018. This decision
provides the closure of the plant in
Amiens,France,[30] which became an issue
in the 2017 French presidential election,
with both Marine Le Pen and Emmanuel
Macron visiting the workers on strike
before the second round.[31]

In October 2017, Whirlpool and retailer


Sears Holding Corp. reportedly ended their
101-year old association that allowed
Whirlpool appliances to be sold at Sears
stores and later, at Kmart, which is also
owned by Sears. The companies
reportedly were unable to come to an
agreement on pricing issues. [32]

UK dryer fire risk

Safety warnings about tumble dryers


published on the Indesit and Hotpoint
websites in 2015 advised customers that
“In some rare cases, excess fluff can
come into contact with the heating
element and present a risk of fire.”[33]
Whirlpool condensers and vented tumble
dryers sold under the brands Hotpoint,
Indesit, Creda, Swan and Proline and
manufactured over an 11-year period
between April 2004 and September 2015
present a fire risk.[34] An estimated 5.3
million tumble dryers were bought in the
UK over the time period.[35] Originally, and
even after several fires were confirmed as
being caused by faulty devices, Whirlpool
advised customers that using such
devices was safe provided they were not
left unattended but would not issue a
product recall.[36] Whirlpool offered to fix
faulty machines or replace tumble dryers
at a cost of £99 - an offer met with
derision with consumer groups and in the
press.[37] Parliament discussed
widespread difficulties with getting faulty
machines fixed or replaced, including long
wait times and poor service.[38]

On Friday 19 August 2016 a fire broke out


on the 7th floor of an 18-storey Shepherds
Court building in Shepherd's Bush Green
resulting in hundreds of residents needing
to be evacuated. London Fire Brigade said
20 fire engines and 120 firefighters were
sent to tackle the blaze at 3.44pm, and
that it was under control by 5.30pm.[39]
Shadwell fire station manager Paul Hobbs
said "The fire spread from the seventh
floor via the outside of the building." The
blaze spread upwards to engulf 5 storeys
damaging flats from the seventh to
eleventh storeys.[40] The occupants were
at home when smoke started pouring out
of the tumble dryer and they alerted fire
crews, with the fire later confirmed as
being caused by a faulty Indesit branded
Whirlpool tumble dryer.

At the time Whirlpool advised customers


that ”You may continue to use your tumble
dryer whilst waiting for the modification,
however, we require that you do not leave
your dryer unattended during operation as
an extra precaution (i.e. do not leave the
house or leave the dryer on whilst asleep)”
but would not issue a product recall.[36]
On 26 August 2016, London Fire Brigade
advised the public to stop all use of faulty
tumble dryers immediately and through its
Total Recall campaign, called on Whirlpool
to change its advice to customers and
promote a product recall, advice also
issued by Which? and the "Expect It's Safe"
campaign set up by lawyers representing
victims of fires started by faulty
appliances.[41][36][42] The London Fire
Brigade commented that they get called
out to a fire started by faulty domestic
appliances nearly once every day and
issued a five-point notice concerning
Whirlpool's advice on faulty appliances:
1. The safety notice was issued due to the
danger of fire and any fire has the potential
to endanger life and property.
2. It’s impractical for most people to
remain with an appliance for the duration
of a drying cycle.
3. If the dryer does catch fire while it’s
attended this still presents a risk to the
occupants.
4. If the owner attempts to put out a fire in
an appliance they could be putting their
life at risk. The Brigade’s advice is to not
risk tackling the fire, always raise the
alarm, get out, stay out and call 999.
5. The time a fire may break out because
of a fault is unpredictable. The ignition of
fluff accumulated around a heating
element may cause a smouldering fire
which might not be discovered until the
appliance has finished being used and the
owner has gone to bed.[41]

In September 2016, Andy Slaughter, the


MP for Hammersmith whose constituency
includes Shepard's Bush said the
government had failed to stand up to the
“powerful industry lobby” representing
white goods manufacturers.[43] He was
reported to have urged ministers to
instruct Whirlpool and other companies to
change their advice to customers, and
insisted that faulty appliances that may
cause fires be recalled and replaced.[43] In
a session of parliament on 13 September
2016, Slaughter revealed that he had
"tracked down 750 fires caused by
Whirlpool dryers and by dryers from
brands owned by Whirlpool between 2004
and 2015. We know about 127 models, but
Whirlpool will not publish the full list."

Alberto Acosta, MP for South


Leicestershire, described Whirlpool's
handling of the issue, adding: "I am a
consumer of the said faulty tumble dryer,
having bought one last year. The hon.
Gentleman (Andy Slaughter MP) and I
have already spoken briefly about this
matter, but I should like to further inform
him that I wrote to the managing director
of Whirlpool UK, Maurizio Pettorino, in
April this year. He took a month to
respond, and his response was appalling.
He did not answer the questions I had put
to him. I wrote to him again on 23 May, but
he has not responded to my letter. Nor has
he responded to my repeated telephone
calls. A public affairs company called
Ketchum is involved in this matter, but it is
refusing to respond to my reasonable
requests. Like many consumers, I filled out
the online Whirlpool form and was told I
would have to wait 10 weeks before being
given a date. Those 10 weeks have come
and gone, but I have not received a date.
Does the hon. Gentleman agree that it is
time that Maurizio Pettorino thought about
resigning from his job?"[38]

Patricia Gibson, MP for North Ayrshire and


Arran, added that regarding customers
waiting for faulty dryer repairs or
replacements, she had "a constituent who
has been told she will have to wait at least
16 months, and she is now about halfway
through that wait. There is no apparent
end in sight, and this is a real evasion of
responsibility."[38]
The same month, following the publication
of the investigation results into the
Shepard's Bush blaze that concluded the
faulty tumble dryer was to blame for
starting the fire and other fires across the
UK, pressure grew on Whirlpool and the
government to do more to reassure the
public. Dave Brown, London fire brigade's
director of operations, said, “This fire has
highlighted just how dangerous faulty
white goods can be... disappointingly
though, Whirlpool have still not changed
their advice to consumers. We are now
appealing once again for them to change
their advice and bring it into line with our
own. Thankfully there were no serious
injuries in the Shepherd’s Bush fire but we
may not be so lucky if it happens
again.”[44]

In October 2016, Margot James, the British


government's Customer Minister, said:
“Customer safety must be the number one
priority for manufacturers. I acknowledge
that Whirlpool are making great efforts to
modify and replace at-risk machines, but I
believe additional action is required to
reassure customers and the public. I will
be writing to the company to set out my
concerns and expectations.”[44]
In December 2016, the UK's largest
customer advocacy group, Which?, who
had previously produced a list of the 113
models of tumble dryer at risk, took the
unusual step to seeking a judicial review of
Peterborough Trading Standards - the
agency named as responsible for handling
of the faulty tumble dryers sold by
Whirlpool - labelling the handling as a
“fiasco” and claiming that it has failed
millions of consumers across the UK by
not enforcing product safety laws.[45][46]
Peterborough city council had been
dealing with Whirlpool because its UK
head office is located in the city. The move
was considered unusual as it was the first
time Which? had made a formal legal
move involving trading standards "in order
to assess the lawfulness of its decision to
allow householders to continue to use
faulty machines, despite the risk of them
bursting into flames".[46]

Leon Livermore, Chief Executive of the


Chartered Trading Standards Institute was
critical of Whirlpool not recalling faulty
tumble dryers, urging "Whirlpool to recall
the millions of potentially faulty tumble
dryers in people's homes", but came to the
defence of Peterborough Trading
Standards, saying, "The whole system has
been overwhelmed by the size of this, and
it’s a bit unfair on a local authority such as
Peterborough to have to take responsibility
for what is a national issue.”[47][48]

In response to the criticism, a


Peterborough city council spokesman
said: “An independent review, which began
earlier this month, is currently taking place
and we would expect the company to fully
comply with the outcome. We will strongly
defend our position if Which? is granted a
judicial review and bearing in mind the
ongoing independent review we consider
that this action is premature.”[46]
On 22 February 2017, Whirlpool received
two enforcement notices from
Peterborough Trading Standards following
the trading standards internal review.[49] 15
months after Whirlpool advised customers
that it was safe to continue using faulty
tumble dryers providing they were not left
unattended, it was required to update its
advice to customers advising them to
unplug the appliances and stop using
them until they were repaired. Whirlpool
was also required to publicise the changed
advice to consumers through
advertisements in national newspapers,
through social media and in stores. The
enforcement notices had been originally
issued on 16 January 2017, and were
rejected by Whirlpool, who filed for an
appeal that was then rejected. Had the
company not complied with the notices at
this point, it would have been taken to
court. According to The Guardian, the
latest action followed “an escalation” in
the number of incidents caused by
affected machines.[49]

Bernard Hender, 19, and Doug McTavish,


39, died following a fire at a flat in
Llanrwst, North Wales, on October 10,
2014. Coroner Dave Lewis ruled that the
cause of the fire was fire was caused “on
the balance of probabilities” by an
electrical fault with the door switch on the
dryer. He described the evidence
presented at the inquest by Whirlpool as
“defensive and dismissive” and stated the
company’s approach was an “obstacle” to
finding steps to prevent future fires.[50]

Diversity
Whirlpool Corporation has seven
employee-run diversity networks that are
involved with business, employee, and
community projects to address the needs
of the groups they represent. These
diversity networks are The Women's
Network (WWN), the Veteran's Network
(WVA), the Whirlpool African American
Network (WAAN), The Pride Network
(PRIDE), the Whirlpool Asian Network
(WAN), the Whirlpool Hispanic Network
(WHN), and the Young Professionals
Network (YP).[51]

LGBT commitment

In 2004, Whirlpool received a 100% rating


on the Corporate Equality Index (CEI)
released by the lesbian, gay, bisexual, and
transgender (LGBT) equal rights
organization Human Rights Campaign. At
the time, Whirpool was the first and only
major appliance manufacturer to be
awarded a perfect score.[52] To date,
Whirlpool Corporation has achieved a
perfect CEI score for 11 consecutive
years.[53] Notably, Whirlpool has offered
domestic partner benefits since 2002 and
has been a corporate leader nationwide on
LGBT issues. Additionally, Whirlpool was
the first appliance maker to feature same-
sex families in its advertising in the United
States.[54]

Charity work
Whirlpool Corporation is a principal
supporter of Habitat for Humanity, a
nonprofit organization dedicated to
building low-cost, affordable housing. The
company's commitment to Habitat for
Humanity has exceeded $34 million and it
has donated more than 73,000 appliances
for Habitat homes. The company plans to
support every Habitat home built globally
by 2011, either through product donations,
cash, or home sponsorship.[55]

In November 2006, Whirlpool started the


annual Building Blocks program, designed
to raise awareness and help eliminate
substandard housing in the United States.
Each year the program recognizes an
outstanding U.S. Habitat for Humanity
affiliate and its relationship with its local
community by holding a week-long build in
the affiliate’s community. The program
kicked off in Nashville, Tennessee, in 2006
when Whirlpool united 100 local residents
with 100 Whirlpool employees and
volunteers from 100 Habitat affiliates.
These 300 volunteers built 10 homes on
one block from Nov. 5–10, 2006. Whirlpool
built nine homes near Phoenix, Arizona, in
May 2007, and nine more homes in Dallas,
Texas in October 2008. The 2009 build is
set to begin August 31 in Atlanta,
Georgia.[56]

In 2006, more than 20 Whirlpool India


employees participated in the week-long
Jimmy Carter Work Project (JCWP) in
India, which resulted in the completion of
100 homes in a village near Mumbai. In
2005, Whirlpool India began a partnership
with Habitat for Humanity India.
Volunteers from Whirlpool participated in
the build organized by Habitat for Tsunami
victims in the southern part of India.

In June 2005, Habitat for Humanity held its


annual Jimmy Carter Work Project in
Benton Harbor, Michigan. This week-long
effort culminating in the completion of
more than 230 houses in Michigan.
Whirlpool was the lead sponsor for the
build and 270 Whirlpool employees from
19 nations worked together to build 10
houses during the week.

To facilitate Hurricane Katrina relief


efforts, Whirlpool worked with Habitat to
support “Operation Home Delivery.”
Whirlpool employees helped construct
approximately 50 pre-built homes in New
York’s Rockefeller Center that were boxed
and shipped to Louisiana and Mississippi
and later erected with the help of
Whirlpool employees in St. Tamany
Parrish, Louisiana. In January 2007,
Whirlpool chose to hold its annual sales
meeting in New Orleans. As part of that
meeting, more than 1,000 Whirlpool
employees spent one day volunteering
with Habitat for Humanity in an effort to
continue rebuilding New Orleans’
residential areas.

Since 2004, Whirlpool has sponsored


entertainment icon Reba McEntire’s music
tours to raise awareness and more than
$500,000 for Habitat for Humanity.

Cook for the Cure: Cook for the Cure


presented by KitchenAid, was created in
2001 to give passionate cooks a way to
support the Susan G. Komen Breast
Cancer Foundation. Cook for the Cure has
raised more than $4 million through
donation-with-purchase programs, special
fundraising events, auctions and grass
roots initiatives. KitchenAid also supports
breast cancer foundations in other
countries including Canada, France,
Germany, South Africa, Greece and Israel.

In 2017, the Whirlpool Corporation


donated six latest generation washers and
six dryers along with several irons, after
learning Pope Francis wished to create a
laundry service for the homeless in Rome.
Known as the People of Peace Centre, it is
operated by the Community of Sant'Egidio,
in the old hospital complex of San
Gallicano.
NASA partnership
Whirlpool Corporation developed Freeze-
dried ice cream in 1968 under contract to
NASA for the Apollo missions.[57]

Major brands
Acros
Admiral
Amana
Ariston
Bauknecht
Brastemp
Consul
Crosley*
Diqua (China)
Estate
Gladiator GarageWorks
Hotpoint (Europe)
Indesit Company
IKEA*
Inglis
Jenn-Air
KitchenAid
Maytag
Polar
Privileg
Roper
Royalstar (China)
Sanyo (China)[27]
Stinol
Whirlpool
*Whirlpool manufactures certain
appliances under the Kenmore label,
(manufactured for Sears Holdings
Corporation) and Crosley top load
washers. Whirlpool has expanded the
marketing of Inglis appliances which are
sold in the United States at Best Buy
stores. Whirlpool also manufactures
IKEA brand appliances for IKEA, Top
Load laundry for Crosley and Admiral
appliances for Home Depot.

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General
Wisconsin Historical Archives FAQ

External links
Official website
Business data for Whirlpool
Corporation: Google Finance •

Yahoo! Finance • Reuters •

SEC filings
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