Maytag to Probe Supplier Quality Issue Oct 24, 2005

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Appliance maker Maytag Corporation said it is investigating whether a supplier-related quality and potential product safety issue disclosed by Whirlpool Corporation will affect some refrigeration products manufactured by Maytag prior to 2003.

Maytag said in a quarterly report filed with the U.S. Securities and Exchange Commission (SEC) that it shares a common supplier with Whirlpool on certain models.

According to a previous SEC filing, Whirlpool is investigating a supplier-related quality and potential product safety problem that may affect up to 3.5 million appliances manufactured between 2000 and 2002.

Whirlpool estimates a potential cost of up to U.S. $235 million to correct the problem, depending on whether some or all of the appliances must be repaired or replaced. The cost is also dependent on whether the cost of any such corrective action rests initially on Whirlpool or the supplier.

Also, Whirlpool said it could incur other costs arising from the matter, which currently cannot be estimated. Maytag said it isn't known whether the issue exists in its products and that it cannot project the estimated cost in correcting the issue, if it exists. (Dow Jones)

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