- Created: Friday, 20 January 2017 12:13
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If you were cynical you could accuse us of dreaming up an article off the back of the controversial incoming new US president, Donald Trump but that’s not the case, this is actually stuff we care about.
With that out the way and getting on with it, there is a sentiment that Trump’s policies on supporting US manufacturing (protectionism?) may well have a pretty big effect across a number of industries but we only really care about the appliance one.
So, the other day a report surfaces out of Korea that Lg and arch nemesis Samsung (if it can afford to!!) are looking at setting up factories in the USA to avoid penalties that Trump may or may not impose on foreign produced goods.
Now that kinda makes sense as the US is a huge market and one that is desperately important to LG, Samsung and others so it may well be worth the cost of setting up production locally to serve that market. We here in Blighty can forget it, there’s not enough of a market to be bothered with doing that here.
LG as an example currently makes stuff in China and Mexico but they are reported to be looking at production in the USA.
“It is true that the level of consideration has been much more heightened internally this week,” a source told The Korea Herald on Wednesday. “The company might make a final decision faster than it intended, as others have started to move.”
The head honcho for LG Electronics, CEO Jo Seong-jin, said that LG was looking into it and LG should come to a decision on the matter in the first half of 2017, Don’t hold your breath, we expect they’ll take a wait and see approach to gauge what will happen under Trump’s presidency before forking out millions and committing to huge investment and, who could blame them?
This kinda confirmed by; “We have been considering various plans, and the aforementioned location is one of them,” said a spokeswoman at LG. “Due to the readjustment of the production volumes of worldwide plants, the final decision may take time.” when quizzed on a possible plant in Nashville.. country music and LF washing machines, who’d have thought it!
What’s clear though is that LG, who have just been stung by tariffs under the current administration may well be taking the threat of pain from more tariffs under Trump most seriously.
Samsung meanwhile are in a right old mess at the moment. It seems they can’t do anything right just now, jus tread the recent news on this website to see what a bag of bolts they are just now.
It therefore comes as no shocker that Samsung supreme commander Lee Jae-yong reportedly stated that; “We are in a difficult situation to announce such a new investment plan considering the ongoing domestic issue,”
No <bleep> Sherlock!
The US media however and probably a raft of voters are lapping it up though, just check out this video below from CNBC’s Mad Money with Jim Cramer.
Politically this might be gold, but is it good? Will Trump change the appliance industry, even if he didn't mean to?