It's certainly not looking good these days for the CEOs and presidents of multinationals, particularly in the hi-tech and MAJAP sectors. It's from a few days ago the "departure" of the CEO of Haier Europe, Yannick Fierling, who came to this position from Whirlpool as CEO of the EMEA branch (now sold to the Turkish Arcelik). But, as already anticipated by FIRST online, there would be another farewell on the horizon, much more sensational: that of President of Whirlpool EMEA, Gilles Morel, in office since April 2019. A departure currently shrouded in questions, rumors and unofficial denials but which, apparently, should be announced in April with the corporation's institutional events, the annual meeting and the communication of the quarterly results. Unless it is brought forward precisely because of the welter of rumors that are piling up about such an important departure but which represents - due to its modalities - an exception. Morel is the very skilled and discreet weaver of the rapid conclusion of the negotiations for the sale of Whirlpool's European, Middle East and Africa branch, with the difficult choice between the two contenders: Arcelik and Midea.
Whirlpool-Arcelik: Morel's speed
The task of finding the best solution that would still leave Whirlpool with a share of presence in Europe was entrusted to Morel in October 2022 by the corporation's president, Marc Bitzer. And on January 17, 2023, the multinational announced the divestment of its EMEA activities with the sale to the Turkish Arcelik. Morel had worked particularly quickly taking into account that Bitzer had asked him to close the negotiation no later than 30 June 2024. But there is more: even if the negotiations had not been successful, Morel had obtained that the company of Benton Harbor would still have remained in Europe to carry out an inevitable plan of harsh restructuring. And he had also obtained - it seems - that the sale was not implemented through a painful "cut" of the European industrial structure.
Household appliances, how many managers have said goodbye
For Morel who made it and who should obviously be adequately rewarded, at least a dozen presidents, CEOs and general managers of multinationals in the sector were literally ousted in 2023, thanks to the crisis, Covid, the bad management of the board and, above all, the progressive financialization of Anglo-Saxon and European multinationals. The record of these defenestrations belongs to the president-CEO of Whirlpool, Marc Bitzer who in the space of a few months has, so to speak, accompanied the CEOs of the branches all over the world to the door starting from the exit of the president and COO (Chief operating officer) of the entire corporation, Joseph T. Liotine, in office only since August 2021. Above him was only Bitzer. And how FIRST online managed to anticipate, the COO's farewell had been preceded in great secrecy by the removal of the president of Whirlpool Latin America, Joao Carlos Costa Brega, appointed in 2012: Brega himself had wanted and followed the onerous 52 million dollar investment for a new factory in Argentina (ungovernable and in full chaos). And then, immediately afterwards, here is the "resignation" of Vishal Bohola, president only from 2021 of Whirlpool India, a very important country for Whirlpool, as it is on the rise, full of valuable managers and above all an increasingly internationalized middle class. And after all, China had also previously been left without a CEO since the Whirlpool Asia-China summit had been "resigned", with the closure of the large factory.
Bitzer and the “funeral” oration of globalization
Behind this reshuffle - which apparently has not yet reached its conclusion - there has been a loss of shares, profits and image of what was the first - in value - world manufacturer of household appliances. The step from multinational to regional big player in North America was very rapid and, after all, it was Bitzer himself, in April 2022, who declared that the company had to adapt to an increasingly less globalized world due to logistics difficulties, geopolitical tensions and commercial. Thus uttering the "funeral" oration of globalization, of just in time and the pharaonic relocated factories. What will happen now with the new owner of the former Whirlpool EMEA? Mystery.
Household appliances: what has changed and what will change again
In all likelihood, the media will be able to forget about the usual press conferences, interviews, requests for information and news given that the external relations of the new big names, Turkish or Chinese, Indian or Malay, they are extremely different. Traditional negotiations with unions or local politicians will also be difficult. Compared to 2022, when Arcelik faced the climb to the global giant with great enthusiasm, when post-Covid sales were growing dramatically and profits were also rising, times have changed a lot. The promises of a future of great growth, without cuts or restructuring will be difficult to keep. In the meantime, the current crisis, with its dramatic geopolitical uncertainties, is once again creating a certain M&A movement. For example, it is known that Bosch, which was able to manage the heavy contraction in sales and the crisis in Germany well, is ready to grow and probably Honey, an illustrious victim of the crisis, should enter the Bosch corporate perimeter. And the Hisense, which has wisely bought not only brands but also factories in Europe for some time, growing by 15-20 percent for at least three years, is ready to go shopping. Just like everyone is waiting for that electrolux, after the restructuring and investments in eco-sustainability and the strengthening in important areas such as Australia, finally choose who wants to acquire it or with whom to create joint ventures. Certainly, for many investors the decisive factor will not be the fact of being able to count on very distant factories, but having factories close to the markets, streamlined and super digitalised with extremely diversified production.
