Frequently Asked Questions

Q.  What did you announce May 10, 2006?

A. Whirlpool Corporation today announced a series of changes within our North American operations relating to the integration of Maytag Corporation. Locations affected by the changes include three manufacturing sites, the former Maytag corporate headquarters and a research and development center in Newton, Iowa, and administrative offices in Illinois, Canada and Mexico. 

We will consolidate laundry washer and dryer production from Maytag manufacturing sites in Newton, Iowa; Herrin, Illinois and Searcy, Arkansas with Whirlpool laundry factories in Clyde and Marion, Ohio.  The changes follow an extensive review of Maytag operations by Whirlpool, and the company’s commitment to quickly communicate any operational decisions to clarify employee status moving forward.

Maytag administrative offices will be consolidated in the United States – from Newton, Iowa to Benton Harbor, Michigan and other Whirlpool locations; in Canada – from Burlington to Mississauga; and in Monterrey, Mexico where both companies have offices.  The Newton-based research and development center, and the administrative office of Maytag International, based in Schaumburg, Illinois, also will be closed.

We currently plan no further manufacturing facility closures related to the Maytag integration process, however, our review of Maytag operations will continue, and further decisions related to office facilities are expected in the future.

Q.  What is the timing for these changes?

A. We announced this decision in advance as part of our commitment to make the transition as smooth as possible and provide employees as much planning time as possible.

The factory in Newton, Iowa, will continue production into 2007. The factories in Herrin, Illinois, and Searcy, Arkansas, will continue production until the end of 2006.

Maytag administrative offices in Newton, Schaumburg, Burlington and Monterrey, as well as the Newton research and development center, will be closed by the end of 2007.

Q.  What support will you offer employees separating from the company?

A. We will support employees affected by the changes with a comprehensive assistance package during the transition period, including severance pay, health benefits continuation, job search assistance, and other benefits. Whirlpool plans to open negotiations with labor unions in Newton and Herrin for close-out agreements in the future.  Employees in Searcy, a non-union facility, also will receive severance, benefits continuation and job search assistance.

Q.  Why is Whirlpool Corporation closing its facilities in Newton, Searcy and Herrin? Why were the other facilities (Clyde and Marion) favored over these former Maytag facilities?

A. Whirlpool Corporation’s decision to consolidate production to our facilities in Clyde and Marion, Ohio, and close our Newton, Iowa, Searcy, Ark., and Herrin, Ill., plants was a difficult, but necessary decision. 

The Clyde and Marion facilities have the capability to cost efficiently absorb the Maytag brands’ production requirements.  Therefore, to maintain the Newton, Herrin and Searcy facilities would only add to the overall manufacturing cost structure in this highly competitive industry.

Q.  Does Whirlpool have any plans to help the Newton, Herrin and Searcy communities transition?

A. We are very sensitive to the community impact, and have offered to work closely with all levels of government, the unions, and the private sector to ease the burden on the local employee base. That’s also why we advised employees in advance, as part of our commitment make the transition as smooth as possible. 

We will work with local and state officials to ensure that all available training resources are made available to affected employees, and to reposition affected locations for future job development opportunities within the community. We plan to honor all community commitments made through the Maytag Foundation for 2006 and will maintain our ongoing review process for current commitments to understand their significance moving forward 

Q.  Gov. Vilsak of Iowa said he was prepared to offer Whirlpool incentives to keep jobs in Iowa.  Did Whirlpool consider incentives from the states impacted by this announcement? 

A. This decision is about the need to remain competitive, not tax or community incentives.  We reviewed each plant’s overall competitiveness within the global home appliance industry, including the ability to manage process improvements, productivity and operations efficiency.  The difference in competitiveness reflects structural and scale issues that cannot be overcome by incentives.

Our more efficient facilities in Ohio can absorb the production that is currently being done in Newton, Searcy and Herrin.

Q.  Do you plan to announce changes at any other manufacturing facilities?   What about the adjacent businesses, like Hoover and Dixie-Narco?

A. We currently plan no further manufacturing facility closures related to the Maytag integration process, though we will continue to aggressively pursue ongoing productivity improvements across its global operating platform.  At the same time, Whirlpool will continue to evaluate strategic options for, including the potential sale of, the Hoover floor-care and the Dixie-Narco, Amana commercial microwave and Jade commercial appliance businesses.

Q. Why did Whirlpool decide to acquire Maytag?

A. Whirlpool sought to acquire Maytag due to the company's rich heritage and recognition. We are truly excited about this new, compelling brand portfolio. The company will be reinvesting to grow the Maytag brands. Ultimately, the net effect will be a better offering for our family of brands.

Q. What is the Whirlpool strategy going forward?

A. We will continue to pursue our existing strategy of creating value for our brands by focusing on consumers, trade customer management and our global operating platform. The acquisition presents the opportunity for Whirlpool to apply this strategy across Maytag's brands.

Q. Will Whirlpool eliminate or discontinue Maytag brand products?

A. Whirlpool sought to acquire Maytag due to the company’s rich heritage and brand recognition. We are truly excited about this new, compelling portfolio of brands.

Q. What will happen to the other brands?

A. Brand, product, and distribution plans involve complex business processes that, as an industry, we do not share publicly. Consumers can expect us to continue our commitment to offering bold innovation and designs that will last a lifetime.