Immelt on 60 Minutes: How Growing Global Markets Translate Into American Jobs

October 10, 2011

Last night on CBS’s 60 Minutes, GE’s Chairman and CEO Jeff Immelt spoke to Leslie Stahl about GE’s global business and jobs and economic recovery in the United States.

 

Here are some highlights:

On GE, Growing Global Markets and American Jobs

Stahl travelled with Immelt to a GE Aviation plant in Batesville, Mississippi, which helps manufacture GEnx engines for the new Boeing Dreamliner, and pointed out that the company had invested $1.5 billion in developing the engine before the first sale had been made. They also visited GE’s Appliance Park in Louisville, Kentucky, where GE has been bringing back jobs from China and Mexico. GE has 133,000 employees in the U.S. and since 2009 had announced the creation of 8,000 new jobs.

60% of GE’s revenue comes from overseas markets. On the floor of GE’s jet engine servicing plant in Petropolis, Brazil, Immelt said that GE’s expansion in rapidly growing global markets, like in Brazil, had allowed GE to preserve and add jobs at home: “If I wasn’t out chasing orders in every corner of the world, we’d have tens of thousands fewer employees in Pennsylvania, Ohio, Massachusetts, Texas. I’m never going to apologize [for expanding globally], ever, ever.”

On the Jobs Council’s Recommendations to President Obama

Since January of this year Immelt has served as the Chairman of President Obama’s Council on Jobs and Competitiveness. This week the Council will present proposals to President Obama, growing out of meetings held across the country for the last several months, including ones to reduce burdensome government regulations and to spend more on job retraining programs.

On the Importance of Investment in Unsure Bets

Addressing GE’s investments in the solar power industry, Immelt made the case for investment in nascent industries, noting that for GE, these investments are low risk because of the company’s technology portfolio and scale: “We ought to be percolating twenty $1 billion businesses all the time that can grow inside our system.”


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  • Clark Benson

    All this is fine, but what about those of us who own GE stock? What are you doing for us? By any measure, GE stock has performed poorly during the tenure of Mr. Immelt.

    I think Mr. Immelt has a full time job building value for stockholders. Get off the political train and focus on investment return for the stockholders.

  • Larry Dreebin

    I thought that the “Sixty Minutes” interview and portrayal of GE was the most positive and balanced of the past decade. I was very influenced and inspired by the numerous gems in the televised program as well as the short video clips posted on cbsnews.com. Congratulations to Mr. Immelt and I hope that he will continue “to feel comfotable in his own skin.” Mr. Welch made a wise choice in Mr. Immelt!

  • bill ward

    It is a great reply to those who would like to shut down the international efforts of our Company for a still unknown reason. GE has given more than 100 years of effort in bringing its products to overseas customers in all corners of the world thru its Intl GE Companies and with timely attention to their needs and providing the technical and sales support that has been provided to assist in their eagerness to enjoy those products that can help those countries so eager to develop their own economies and growing as far as their resources and skills can carry them. GE did so and it was no picnic competing with our foreign competitors. GE’s seizing on the opportunities during WWII and in the period following has aided in gaining great respect for our Country and for GE, and the Company’s expanding participation and respect from customers at home and abroad. Keep up the outstanding job! proud GE Elfun

  • John W. Porter

    I have been retired since 1983 i appreciate all the great service and protection GE HAS PROVIDED ME OVER THE YEARS . I was employed 40 plus years and got pleasure out of all of them .Never had an unhappy working day.
    THANKS GE John w. porter

  • Doug

    Jeff did a good job, but many people fired by mainstream media still do not understand GE’s move in China re:Xray, establishing jobs overseas and the nearly constant references to GE not paying taxes. This must hurt sales and the stock price. Jeff being buddy-buddy with Obama also does not help. GE is perfectly correct in all these things (perhaps except the buddy-buddy thing) but the media does GE no favors. Perhaps a better public relations effort is in order. Bill O’Reilly is popular and one of the worst enemies of Immelt and GE. I understand the FOX-MSNBC problem, but would it not be useful for Jeff to confront O’Reilly?

  • David Dillon

    Immelt has to go a long way to overcome current negative press about GE, More positive reports on GE investment and jobs in the U. S. is required. Also, comment on how GE investment outside of the U.S. is beneficial to not only the Co. but to domestic employees as well. So far, GE’s P.R. has been ineffective re; JOBS.

  • Duncan B. MacLaren

    I thought the segment was excellent, and Jeff did a terrific job of succinctly answering Leslie Stahl’s questions. Of course, I think the segment should have been twice or three times as long. Will most “60 Minutes” viewers really understand why we must manufacture “in country-for-country” in Brazil or China or India ? For that matter, will most viewers understand the benefit of repatriating foreign earnings ?

  • Eugene Hersh

    I belive that the 60 minute interview was OK and Jeff did expressed himself very much to the point.
    Note however that I can not see how we need 198 VP to run the company.
    I also can not see that with all the order we getting how much attention is given to CV and what is counted as just pure duplication between the components of the Company. Where is the profit?
    Eugene

  • john

    hes got a job , but cannot do it LOOK AT THE STOCKS

  • Andrew

    As a GE employee and an American citizen, this is a tough issue…. My patriotic side wants GE to invest all it’s money here, but obviously Jeff knows what he’s doing and expanding abroad is better for the GE business, which is his job to look after. Hopefully we can strike a balanace and the US economy pulls out of this slump sooner rather than later, and everyone can be happy. Go GE, go USA.

  • Michael Feather

    Mr. Immelt has produced billions of dollars for GE. with his travels all over the world. However, I do not like the fact that we are helping these couontries like China for example. Can we trust the government there.
    . We are building planes and selling our new jet engines to them. We are building a new medical plant there and closing an old one here in Wisconsin. It only takes one time for China to say we do not need you anymore GE. Thanks for all the help you given us. We can now do it on our own. We are giving them all of technolgy. Think how this can hurt a great US company liked Boeing. Many companies have been screwed by countries that they constructed new factories in. I hope this does not happen to GE. With great profits that GE has made this past year, why not raise the dividend. Look at the stock. GE needs a better PR program. I have great confidence in the company. GE is the best in the world. Lets keep it that way.

  • David Wisser

    I found Mr Immelts quote “I work for investors” in the 60 Minutes piece to be an interesting choice of words. If there is one group of people that have to be disappointed in Mr. Immelts performance as CEO, investors have to be at the top of the list!!

    The stock price when he took over as CEO of GE in September 2001 was about $40.00 a share and today 10 years later it is $16.00 per share underperforming the market by a wide margin. GE stock holders also saw the stocks dividend cut by approximately 65% for a double wammy to investors. The company also lost its AAA credit rating costing the company millions.

  • Gordon Cleaver

    Mr. Emmelt’s prime task is to increase revenues. Jobs, profits and dividend increases will follow in kind. My major concern outside of GE’s price is the stability and strength of GE’s pension fund. I have been retired from GE since my 65th birthday 14 years ago and I am obviously concerned about the diminishing purchasing power of my pension that has been increased only $50/mo since my retirement. That, coupled with the collapse of the value of the GE stock in my 401K causes me fear that I cannot ever retire from my current position.

  • Tyler

    During the interview, Immelt said he doesn’t understand why Americans don’t root for GE like Germans root for Siemens or the Japanese root for Toshiba. This is a great question. While GE is a major US employer, the company doesn’t seem committed to the US, like Siemens and Toshiba are to their home markets. It appears that GE is laser focused on outsourcing not only US jobs, but more importantly our technology with 50/50 ventures that are satisfying in the short term, but destroy our competitivness long term, especially in markets that are well known for IP theft. Siemens and Toshiba are proud to say Made in Germany/Japan and pay their fair of taxes for the benefits of being located in a secure, educated industrialized nation. They also seem more focused on protecting their IP to preserve future growth and profitability. Lastly, you can’t ignore the affect of bad PR that has plagued the company recently. I see more postitive commercials/ads about Siemens investing in US plants and US educational scholarships, than I do for anything GE.

  • Richard

    Immelt was at his studied polished PR best in this interview. But then when we get beneath the veneer, he is still the failed GE CEO who even Jack Welch stays publicly clear of. His role in the Obama admin is seen as a joke by those (real economists) who trulyly understand what is needed to turn our jobs/economy around. He even had the gall to laugh out loud, along with Obama, about the “shovel ready” moniker of the Stimulus bill failure, which (laughingly??) cost US taxpayers nearly $1 trillion. Other than overseas, he struggles to point to just where 9,000 jobs have been net added to GE payrolls in the US.