Mabe Mexico is a major producer of white goods and provides products for GE and Kenmore in the US and Canada. The company was incorporated in 1945 in Mexico City. Mabe was initially dedicated to installing electrical systems. In 1948, the owners decided to try their hand at manufacturing kitchen furniture. In the 1950’s, Mabe began manufacturing various appliances such as gas stoves, furnaces, and grills. Rapid growth allowed Mabe to become the leading exporter of appliances in Mexico as early as 1960.

In 1986, Mabe entered into an important joint venture with General Electric Co. to produce appliances for the US market. As part of an effort to move away from controlling Mexican operations from the US, GE decided to enter into the joint venture with a 49 per cent minority stake. While GE hoped to gain access to Mexico’s low cost labour pool, Mabe was given greater access to the world’s largest consumer market through GE’s US distribution network. By the mid 90’s, more than one-third of all gas stoves and mini-refrigerators imported into the United States were manufactured by Mabe in Mexico, while 95 per cent of those sold under the General Electric and Kenmore brand names were manufactured in Mabe's San Luis Potosi plant. As a result, Mabe became the leading brand in Mexico, moving ahead of Vitro’s Acros brand with a domestic market share of 50 per cent.

As the company continued to grow, exports and production remained concentrated in Latin America. By the mid 90’s, Mabe was one of the leading appliance manufacturers in Latin America with annual growth between 15 and 20 per cent. In Mexico, Mabe all but dominated the market, while in Central America, Mabe commanded a 70% market share in home appliances.

The group also entered into several joint ventures and alliances with other regional manufacturers. In 1991, Mabe entered into an agreement with Dutch retailer Ceteco to manufacture appliances in Venezuela and, two years later, in Colombia. Solid sales growth in Latin America all but eliminated the impact of the peso crisis in 1995.

In late 1997, Mabe was adversely affected by the Asian currency crisis, also known as The Dragon Effect. The devaluation of Asian currencies gave rise to lower prices for products of Asian origin. As a result, Mabe had to reduce its sales growth expectations by 5 per cent. On the other hand it created an opportunity to invest in plant and equipment at a lower cost. Planned investments for the next year were revised from $90 million to $150 million.

By early 1998, Mabe was planning to join forces with Fagor Electrodomesticos to produce wash machines and refrigerators in Argentina, bringing the total number of Mabe plants to 14, located in five countries. The goal was to achieve 50 per cent market share in home appliances throughout Latin America within five years.

Main Products

Mabe produced. In Latin America, Mabe held the rights to distribute their products under a variety of well known brands, such as GE, Philips, Hotpoint, Kelvinator, Easy, and a number of regional brands. The regional brands were well established in their respective countries. Mabe either purchased the rights to these names (Philips) or paid royalties to the owner of the brand (GE).

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