GE has quality problems with licensed product

Like other huge conglomerates focused upon industrial goods, i. e. Siemens, GE has been struggling with its consumer goods businesses. One answer was to sell the small appliance division to Black & Decker in 1984.

But GE continues to outsource and license their brand to a number of other companies as well. 

Now Walmart, the worlds lagest retailer, issued a recall on 900,00 GE coffee markers, maufactured under one of those brand licenses. Some 100 coffee machines had overheated, smoked, melted or caught fire.

This is no argument against licensing. Recalls happen, see Toyota.

The incident stresses the importance of quality control. And no manufacturer, much less licensor, can neglect this responsibility.