Thomson-Houston Electrical Company

History

General Electric (GE) was founded in 1892 with the merger of the Thomson-Houston Electrical Company and the Edison General Electric Company. Both had concentrated on electric lighting and the associated heavy electrical engineering to supply the power for industry, public utilities, railroads, and street lighting across the United States and in Britain.

Produce some domestic appliances

GE had begun to produce some domestic appliances before 1920. Irons, toasters, and heaters had been produced before 1914, but it was in 1922 that a separate appliance and merchandise department was formed. GE saw that the American economy was expanding, and it realized that there was a huge potential market, which would follow in the wake of electrification. For a giant company like GE, it was easier to expand in the appliance market by acquiring smaller manufacturers like the Hughes Stove and Hotpoint companies than establishing its own divisions. The Hotpoint Company had begun by making electric irons whose soles were as hot at the tip as in the middle. Between 1925 and 1930, GE introduced larger appliances such as stoves, refrigerators, washing machines, and vacuum cleaners. GE also introduced the Calrod metal surface unit for electric stoves. It also began to spend more on advertising, concentrating on creating its own GE brand in addition to its subsidiaries. Between 1922 and 1930, the annual advertising budget rose from $2 million to $12 million.