When an Electrolux is Not an Electrolux (vacuums for those that don't know)

Electrolux Resolves Its Identity Crisis

Here's a counterintuitive business strategy: Sell the company name, operate under a slew of other brands for 34 years, then buy back your original name for $50 million. That pretty much summarizes what Electrolux, the world's largest home-appliance maker, did in America.

Did you know that Electrolux vacuums are not really Electrolux vacuums? Did you know that Fridgidaire, Weed Eater, and White-Westinghouse brand are really Electrolux products?

Here is a fascinating little story on Electrolux, how it sold it's brand name 34 years ago and has now bought it back. Watch, you will see double-logo'd products now such as Fridgidaire Electrolux.

The new logos are part of CEO Hans Straberg's global branding strategy. "I'd like my legacy to be one of the guy who got the Electrolux products together under one umbrella name," he says.

By the way, Electrolux manufactured vacuums are really Eureka. Electrolux BRANDED vacuums are actually made by a company called Aerus.


This guy has a serious branding challenge ahead.


Written by Steve Hall    Comments (2)     Nov-16-02  
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It is confusing. In fact you actually have it backwards. The Electrolux BRANDED products are manufactured by Eureka. The orginal Electrolux vacuums are now produced by a company called Aerus. Aerus sold the rights to the name Electrolux to pay off debt. So when you go to your local department store and by an Electrolux vacuum, you won't be getting the quality machine that your grandmother had. www.aerusonline.com

Posted by: Concerned on January 19, 2006 11:35 AM

Wait a minute..
The Eureka Brand is made by Electrolux AB of Sweden. Now Electrolux USA. They did buy their name back from Electrolux Usa to market Vacuums again in the US. It's very confusing..
Could it be illegal? Since most consumers are thinking they are getting the original USA Electrolux brand. I work as a rep for Aerus
and most people hate the new electrolux-Eureka brands they are buying now in the stores.
They are returning them and trading them in for
Aerus sometimes. The Eureka brand looks the same only blue in color instead of orange as the Electrolux Oxygen and Harmony Vacs. It's such a mess.

Posted by: Terri K. on April 22, 2006 10:47 PM

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