On July 18, General Electric (GE) announced yet another shift to its organisational structure, saying its energy and other divisions will function under new brand names.
The company’s chairman and CEO, as well as the CEO of GE Aerospace, H. Lawrence Culp Jr., stated that the strategy calls for a planned division into three companies with a concentration on energy, healthcare, and aviation. The brand GE Vernova will be used for all of GE’s current energy operations, including power, digital, renewable energy, and energy financial services. GE’s aviation division will be called GE Aerospace. The GE HealthCare brand will be used to represent the healthcare sector.
Today is a crucial turning point in GE’s strategy to split into three distinct, laser-focused businesses, according to Culp. They get a competitive edge in their end markets by leveraging GE’s multi-billion dollar worldwide brand, enabling these businesses to succeed in the long run. These brands, which are built on a lean and innovative foundation, will help them in their quest to create a planet that operates and serve as a crucial reminder to their clients of the attributes they find valuable in GE.
The new name for GE’s energy divisions, according to a news release, is a combination of ‘ver,‘ derived from ‘verde‘ and ‘verdant‘ to indicate the greens and blues of the Earth, and ‘nova,‘ from Latin ‘novus,‘ or ‘new,‘ representing a fresh and novel era of lower emissions that GE Vernova will help deliver. The tax-free spin-off of GE Vernova will be carried out, according to GE, in the first quarter of 2024.
According to GE, the healthcare division will separate in the first quarter of 2023 and begin trading on the Nasdaq Stock Market under the symbol GEHC. After the anticipated spinoffs, the GE brand will be owned by Culp’s aviation-focused company, GE Aerospace, which will also grant long-term licencing to the other businesses. The aviation division’s current leader, John Slattery, will take on the position of chief commercial officer.
Over the previous six months, they engaged in a detailed, customer-led approach to determine the inherent value of the GE brand for their planned new enterprises, said Linda Boff, chief marketing officer of GE. The GE name and its more than 100-year-old emblem reflect a heritage of innovation, a mark of trust by customers worldwide, pride for the team, and a potential magnet for future leaders, according to data and analysis garnered from thousands of discussions. They are pleased that these upcoming companies will be able to build on GE’s innovative DNA.
Three distinct entities will provide more concentration, targeted asset allocation and strategic flexibility to create long-term development and value, according to GE officials. GE Vernova will have a new evergreen trademark colour. According to company representatives, the company has more than 7,000 gas turbines installed worldwide and 400 GW of renewable energy capacity. Its new logo, according to the business, will help in making sure of the company’s lifelong promises to provide quality, cooperation, and inventiveness to its clients.
The beginning of commercial operation of a fresh fuel power plant in Michigan using GE’s 7HA.02 gas turbines was recently announced by the company. On July 17, the aviation company disclosed an agreement with Lufthansa for the purchase of a combined total of 18 GE9X and GE90 engines to power the airline’s fleet of long-haul Boeing 777 freighters. The Boeing plane was purchased by Lufthansa to improve its freight fleet.
Russell Stokes, president and chief executive officer of GE’s Commercial Engines and Services division, said that GE has a tremendous history and an established track record of operating freighter-dedicated aircraft. As Lufthansa continues to update its fleet for cargo operations, they are happy to deepen their partnership with them.
After Culp stated in November 2021 that GE would split into three firms with a focus on energy, healthcare, and aviation, the much-anticipated new names and branding were finally revealed on July 18th.