Whirlpool mum on potential impact of ‘cash for clunker appliances’ program

Whirlpool Corp. has not issued a statement and is not expected to talk about the impact of the planned federal program to financially help Americans buy new energy efficient appliances.

Some are calling the federal program the appliance version of the “Cash for Clunkers” program that provided up to $4,500 rebates for those who turned in an old car to buy a vehicle with better mileage.  That program is expected to end early next week.

But a $300 million program — included in the second federal stimulus bill — will provide consumers with between $50 and $200 per Energy Star-rated appliance. The U.S. Department of Energy is managing the program, with each state working out the details. However, it is not expected that consumers will have to turn in a clunker appliance to qualify for the rebate.

Chris Benson, who heads the energy office at the Arkansas Economic Development Commission, said Arkansas gets $2.7 million for the appliance cash for clunkers program, according to this report from TalkBusiness.net. Benson said the AEDC has until Oct. 15 to develop a plan to manage Arkansas’ portion of the rebate program.

In addition to providing a break for consumers, the program is also expected to boost sales for appliance makers. The Association of Home Appliance Manufacturers has said sales are down roughly 15% from this time last year.

Whirlpool, which operates a large refrigerator-production plant in Fort Smith, said its shipments of major appliances in the first six months of 2009 were down 14% compared to the 2008 period. The company said in its second quarter earnings release that it expects full-year 2009 U.S. industry unit shipments to decline between 10% and 12%. Second-quarter sales in Whirlpool’s North American segment were $2.4 billion, down 17% from the same quarter in 2008.

Reduced consumer demand for the Benton Harbor, Mich.-based Whirlpool has pushed employment at its Fort Smith plant from around 4,500 in early 2006 to about 1,350 today.

Jill Saletta, director of external communications for Whirlpool Corp., told The City Wire that the company had not issued a statement and “would not speculate on potential impact.”

Rheem and Trane, both with major manufacturing operations in Fort Smith, also could benefit with an increased demand for energy efficient heating and cooling systems.