General Electric: The Rise and Fall of an American Manufacturing Icon

The history of General Electric (GE) is a rollercoaster of innovation, success, and challenges. It all began in 1889 when Thomas Edison, the wizard of Menlo Park, formed Edison General Electric from a handful of electricity companies he had been operating. Fast forward three years later, and Edison merged his company with the Thomson-Houston Electric Company, giving birth to the mighty General Electric Company we know today. In a blink of an eye, GE became one of the original 12 companies to be part of the prestigious Dow Jones Industrial Average.

However, the road for GE was not always smooth sailing. Jeff Immelt took the helm of GE and faced turbulent waters during his 16-year tenure, especially during the 2008 financial crisis. The company suffered a massive blow with its stock plummeting by 42% in 2008. To keep the ship afloat, Warren Buffett came to the rescue by injecting a much-needed $3 billion into the company. Despite the rough seas, Immelt seemed to have a penchant for luxury, maintaining a pair of private corporate jets without disclosing it to the board of directors, which stirred some controversy.

Following Immelt’s departure, John Flannery, a seasoned GE executive with 30 years of experience, stepped in as the new captain. Unfortunately, Flannery faced his own set of challenges, with the company enduring a staggering loss of over $100 billion in market value during his reign. To add fuel to the fire, a whistleblower made accusations of accounting fraud in 2019, further tarnishing the company’s reputation.

However, the winds of change blew in November 2021 when GE announced its decision to spin off its remaining three business divisions – aviation, healthcare, and power – into separate publicly traded companies. The restructuring saw the birth of GE Aerospace, helmed by Culp as its CEO, and GE Vernova for the energy operations, encompassing power generation and electrification divisions. “With the successful launch of three independent, public companies now complete – today marks a historic final step in the multi-year transformation of GE,” Culp proudly stated.

In conclusion, the story of General Electric is a testament to the highs and lows that come with being an industry giant. From the pioneering days of Thomas Edison to the modern-day restructuring under Culp’s leadership, GE continues to evolve and adapt to the ever-changing business landscape. As GE sails into the future, only time will tell what new horizons the company will conquer next.