The space seldom goes in for breaking news. Or repeating the same news ad nauseam like the TV folks do. You’ve probably already seen the news of the names of the final breakup of the GE company. Here are a few of my thoughts.
I tease the marketing aspect of the announcement. But I guess they must do it, not for us but for Wall Street.
Jack Welch was never my hero. His jump into financial businesses took the company’s eye off the target. His entertainment acquisitions had to be just to feed the ego of someone who liked visibility with stars. The main businesses kept chugging along despite all that and his financial shuffling.
Executives couldn’t find a buyer for Digital on its own. It will continue to be a solid supporter of the electrical and energy business. For some of you also a valued supplier.
I like focused businesses. These three new companies should do well.
Linda Boff, CMO GE, posted on LinkedIn, “Today is a historic day for GE as we announce the brand names of the future companies GE will create through its planned separation into three industry-leading, global, investment-grade public companies.” Well, she is marketing, so she had to throw in those extra adjectives.
I worked for a company some 20 years ago that proudly unveiled a new logo. It took a two-page memo to explain the image and the typeface and color and why it took a team a year to come up with it. Probably the reason that I only lasted a couple of years in a marketing role—I think that if you have to explain it, it isn’t good.
So, the name of the company I will be most interested in must be explained…
Boff continued, “We have spent the last six months engaged in a thorough and thoughtful process to understand the intrinsic value of the GE brand. Through thousands of conversations with global customers, employees, and others, it became clear that the GE name and our century-plus old monogram represent a legacy of innovation, symbol of trust, pride for our team, and a talent magnet for future leaders. It is a brand that resonates and opens doors the world over and is respected, indeed loved, by so many.”
It took six months to figure out that GE is a known and respected brand name?
She unveils the key statement—finally, “And so it is with immense pride that I introduce you to the next generation of GE – GE HealthCare, GE Vernova, and GE Aerospace.”
OK, HealthCare and Aerospace are explanatory. Those companies are customers for many of you. Vernova? (The auto correct wouldn’t let me type it.) It’s GE Energy plus GE Digital. Or, as the press release puts it, GE’s portfolio of energy businesses, including GE Renewable Energy, GE Power, GE Digital, and GE Energy Financial Services, to come together as GE Vernova.
GE Chairman and CEO Larry Culp said, “Leveraging GE’s multi-billion-dollar global brand gives us a competitive advantage in our end markets, allowing these businesses to win in the future.”
In early 2024, GE plans to execute the tax-free spin-off of GE Vernova, GE’s portfolio of energy businesses, which together with its customers provides one-third of the world’s electricity and is focused on accelerating the path to reliable, affordable, and sustainable energy. The new name is a combination of “ver,” derived from “verde” and “verdant” to signal the greens and blues of the Earth, and “nova,” from the Latin “novus,” or “new,” reflecting a new and innovative era of lower carbon energy that GE Vernova will help deliver. These attributes also are reflected in GE Vernova’s new “evergreen” brand color. With an installed base of more than 7,000 gas turbines and 400 GW of renewable energy equipment, GE Vernova’s Monogram will serve as a reminder of the company’s lasting commitments to deliver quality, partnership, and ingenuity to its customers.
Following these planned spin-offs, GE will be an aviation-focused company called GE Aerospace.