Oh dear, LG, Samsung and Daewoo have been rapped yet again by regulators in the US for dumping washing machines into the US market at artificially low prices, lower than they cost to make so it is said.
Meanwhile in the EU customers can only look on in envy as Americans scoop up the bargains to be had. Not that the washers in question are any better, just cheaper.
It gets worse though as allegedly Samsung brought a stock of washing machines into the US ahead of anti-dumping duties and the US Commerce Department ain’t happy about it.
In the latest twist however Whirlpool accuses the Koreans of moving production of washing machines sold Stateside to Chine to get around the import duties as if the Korean companies do this it is argued that they have an unfair pricing advantage.
LG have ejected their teddies over the affair (previously also) and have basically said that it’s all a load of garbage perpetrated by Whirlpool. But then, they would say that wouldn’t they, even if they were doing something a bit naughty.
“LG Electronics plans to bring the preliminary DoC ruling to the USITC as the anti-dumping duty was excessively high,” an unnamed senior LG executive said, Thursday. “LG plans to argue that our clothes washers manufactured in China aren’t harming the U.S. market.”
Samsung, who have been called the most corrupt company in the world gave us a chuckle with their press spokesperson saying that Samsung, “did not engage in unfair trade practices and is disappointed”.
As you might expect this has set in motion a bunch of press releases as the spat escalates to what is increasingly looking like a pitch battle between the combatants involved which, for your entertainment are below. Expect more from others in the coming days or weeks.
If nothing else it’s keeping the solicitors, PR copyrighters busy and various “spokespersons” in a job!
Whirlpool Press Release
The U.S. Department of Commerce (DOC) issued a preliminary antidumping ruling today confirming Whirlpool Corporation’s allegations that Samsung and LG are engaging in ongoing unlawful dumping of clothes washers into the United States.
As a result of today’s DOC ruling, Samsung and LG will be required to pay cash deposits on clothes washers imported into the United States from their production facilities in China. The cash deposit rate for Samsung is 111.09 percent, and the rate for LG is 49.88 percent. The DOC also decided to apply Samsung’s dumping rate retroactively 90 days to remedy its recent efforts to stockpile washers and undermine the effectiveness of the ruling.
“Today’s ruling is an important step forward in an effort to stop serial dumping practices by Samsung and LG and uphold free and fair trade practices,” said Marc Bitzer, president and chief operating officer for Whirlpool Corp. “At Whirlpool, we know that open, rules-based trade ensures the highest level of innovation and choice for consumers.”
Today’s DOC ruling is in response to a petition filed by Whirlpool Corp. in December 2015. The petition outlines a long-term, repeated pattern of pricing below cost by Samsung and LG – a practice that is injuring American washer manufacturers and threatening American manufacturing jobs.
In 2013, the U.S. government also found that Samsung and LG were dumping large residential clothes washers exported to the United States from their production facilities in South Korea and Mexico. Following that ruling, Samsung and LG moved their washer production for the United States to China, skirting the order and continuing to dump into the United States.
Enforcing trade rules will help level the playing field for U.S. appliance manufacturers. This includes Whirlpool Corp.’s 22,000 employees across the United States – which encompass 15,000 manufacturing workers located in nine plants across the country. To learn more about the company’s U.S. investments and prior trade case, visit their website: WhirlpoolCorp.com/fair-trade.
Case Timeline:
December 2015
Whirlpool Corporation files antidumping petition
January 2016
U.S. International Trade Commission issues unanimous preliminary affirmative vote to continue the antidumping investigation
July 2016
U.S. Department of Commerce expected to release its preliminary antidumping determination
December 2016
U.S. Department of Commerce expected to release its final antidumping determination
January 2017
U.S. International Trade Commission expected to release its final determination regarding injury to the U.S. clothes washer industry caused by the dumped imports
January 2017
U.S. Department of Commerce expected to issue a final order based on Commerce Department’s and U.S. International Trade Commission’s final affirmative determinations
LG Press Release
LG Electronics disputes the methodology the U.S. Commerce Department used to calculate antidumping margins in today’s preliminary determination regarding imports of large residential washers from China.
The Commerce Department’s preliminary determination in the case initiated by Whirlpool against imports of large residential washers from China is just the latest step in a year-long investigation that began in December 2015. In its preliminary results, the Commerce Department found an antidumping margin for washer imports from China of 49.88 percent for LG.
Although it was much lower than the 109 percent antidumping rate alleged in Whirlpool’s petition, LG believes the antidumping margin calculations are erroneous. The unexpectedly high preliminary rate reflects an outrageous antidumping margin calculation methodology adopted by the Commerce Department, the company said.
Under the law, because China is considered a “non-market economy,” the Commerce Department must determine (using values from a surrogate “market economy” country) the market cost of each component part used in the production of a washing machine. Commerce is then supposed to add up these market values to derive a cost of production. This surrogate cost of production is then compared to U.S. selling prices.
However, in calculating its preliminary rate for some of the component parts, the Commerce Department chose values that are many times higher that the true market cost of the component parts. Such methodology artificially increased the antidumping margin by a large amount.
Over the next few months, LG intends to explain to the Commerce Department how and why LG’s antidumping rate should be much lower.
The Commerce Department is expected to issue its final antidumping determination around Dec. 1. Then, early next year, the U.S. International Trade Commission is expected to decide whether Whirlpool has sufficiently proven that washer imports from China are causing “material injury” to the domestic industry.
Regardless of the final antidumping rate, LG intends to advance vigorous arguments to the U.S. International Trade Commission that imported washing machines are not causing material injury to U.S. producers. Should the ITC agree with LG’s arguments and render a negative injury determination, all of the antidumping duties will be terminated.
LG’s success in the home laundry segment in the United States has been the result of its commitment to innovating and providing U.S. consumers with state-of-the-art washers known for their efficiency, reliability and design.
