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Additionally, Maytag's operating income had declined due to major restructuring efforts. Their net sales and gross profits had also declined and their market share had been eroding since 2001.
Appliance manufacturing carries high fixed operating costs. Haier had already started some limited production of its own appliances in the US (allowing a "made in US" label to be affixed to Haier products) and could have further leveraged Maytag's existing production facilities in the US and Mexico...
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Haier had already started some limited production of its own appliances in the US (allowing a "made in US" label to be affixed to Haier products) and could have further leveraged Maytag's existing production facilities in the US and Mexico. Raw materials, shipping, and labor are the most important variable costs...
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