Walmart issues GE coffee maker recall; stock falls

Sandy Smith's picture

Chalk this one up as a case study in the pitfalls of outsourcing a brand name: General Electric Co. stock is taking a pounding today after the world's largest retailer issued a recall of more than 900,000 coffee makers bearing the GE label.

The recall was issued after Walmart received word that the Consumer Product Safety Commission had fielded 93 reports of incidents where the coffee makers overheated, smoked, melted, or caught fire. In three of the cases, users suffered minor burns on their hands, feet and torso; reported property damage linked to the incidents includes a major kitchen fire and damage to countertops, cabinets and a wall.

The coffee makers being recalled retail for about $30. They are manufactured not by GE, but by a company in China using the GE trademark under license. GE, based in Stamford, Ct., sold its small-appliance division to Black & Decker Co. in 1984; appliances formerly made by GE now bear the Black & Decker brand name, while GE licenses its brand to outside manufacturers, including the Chinese maker of the malfunctioning coffee makers. The coffee makers have the GE logo printed on their bases.

The 12-cup programmable digital coffee makers are sold exclusively at Walmart stores and on Walmart.com. Two model numbers are involved in the recall:

• Model Number 169164 (black)
• Model Number 169165 (white)

Owners of the recalled coffee makers can take them to the nearest Walmart store for a full refund. The total cost of the recall is about $27 million.

GE stock fell as far as 5.9 percent on the news of the recall before rebounding slightly. As of 2:48 p.m. Eastern time today, GE is trading at $16.54, down 4.17 percent from yesterday’s close. Walmart stock is also lower, trading at $51.86, down 2.2 percent.

Written by Sandy Smith
For HULIQ.com

Comments

Submitted by Anonymous (not verified) on
Well, just my bad luck. Threw mine away 2 months ago due to malfunctioning and purchased a different brand. Wish I would have kept it around to receive a refund today.

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