A few general/global comments on the purchase of Maytag by Whirlpool Corp.
Whirlpool purchasing Maytag is great news for Whirlpool Corp. shareholders. What better way is there to beat out your competition than to buy them out? But how will this affect consumers? Competition drives research, keeps prices under control and provides options for consumers to choose when a manufacturer does a disservice to its customers. The positives found in competition have been eliminated by this merger. Jobs are being eliminated in the US and Whirlpool is now manufacturing product in Mexico (read cheap labour.)
However, as we step further into the door of the global economy, these types of mergers will become more commonplace. It is the only way that North America can compete with the China’s and Taiwan’s of the world. Jobs will be moved to 3rd world nations where labour is cheap, product will increasingly become disposable and in the end consumers will be left holding the tab. The only way this slide could be stopped would be to stop the importation of foreign product into North America – we know that is not going to happen. So workers in oppressive nations will be exploited, the rich will get richer and shareowners in companies like Whirlpool Corp. will be happy.
Cinical? I suppose, but in terms global competition the merger is necessary and is a good acquisition for Whirlpool Corp.