GE’s Energy Business Will Have a New Name—Vernova
Credit to Author: Darrell Proctor| Date: Mon, 18 Jul 2022 14:51:58 +0000
General Electric (GE) is again announcing changes to its corporate structure, with the company on July 18 saying its energy and other businesses will operate under new brand names.
H. Lawrence Culp Jr., the company’s chairman and CEO, and CEO of GE Aerospace, on Monday said the strategy involves a planned separation into three groups, focused on energy, healthcare, and aviation. GE’s existing energy businesses, including its Power, Digital, Renewable Energy, and Energy Financial Services, will carry the brand name GE Vernova. GE Aerospace will be GE’s aviation business. The healthcare business will operate under the GE HealthCare banner.
“Today marks a key milestone in GE’s plan to become three independent, laser-focused companies,” said Culp. “Leveraging GE’s multi-billion-dollar global brand gives us a competitive advantage in our end markets, allowing these businesses to win in the future. Built on a foundation of lean and innovation, these brands will continue our mission of building a world that works and provide our customers with an important reminder of the strengths they value in GE.”
GE in a news release said the new name for its energy groups “is a combination of ‘ver,’ derived from ‘verde’ and ‘verdant’ to signal the greens and blues of the Earth, and ‘nova,’ from the Latin ‘novus,’ or ‘new,’ reflecting a new and innovative era of lower carbon energy that GE Vernova will help deliver.” GE said it plans to execute the tax-free spin-off of GE Vernova in early 2024.
GE said it the healthcare business is expected to split off in early 2023, and will trade on the Nasdaq Stock Market under the ticker “GEHC.” After the planned spinoffs, the surviving GE will be an aviation-focused company called GE Aerospace, led by Culp and owning the GE trademark, and also providing long-term licenses to the other companies. John Slattery, who has led the aviation division, will move to the role of chief commercial officer,
Linda Boff, GE’s chief marketing officer, said, “Over the course of the last six months, we engaged in a thorough, customer-led process to understand the intrinsic value of the GE brand for our planned future companies. Based on data and analysis drawn from thousands of conversations, it became clear that the GE name and our century-plus old Monogram represent a legacy of innovation, symbol of trust by global customers, pride for our team, and a talent magnet for future leaders. We’re proud these future businesses will be able to build on GE’s DNA of innovation.”
GE officials said the creation of three separate companies will enable “greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value.”
GE Vernova, which officials touted as having an installed base of more than 7,000 gas turbines and 400 GW of renewable energy capacity worldwide, will have a new “evergreen” brand color. The company said its new logo “will serve as a reminder of the company’s lasting commitments to deliver quality, partnership, and ingenuity to its customers.”
GE recently announced the start of commercial operation for a new gas-fired power plant in Michigan featuring the company’s 7HA.02 gas turbines.
The aviation group on July 17 announced a deal with Lufthansa for a total of 18 GE9X and GE90 engines to power the airline’s fleet of long-haul Boeing 777 freight aircraft. Lufthansa acquired the Boeing aircraft to upgrade its cargo fleet.
“GE has a great history and proven track record of powering freighter-dedicated aircraft,” said Russell Stokes, president and CEO for GE’s Commercial Engines and Services unit. “We are proud to continue building our relationship with Lufthansa as they continue to modernize their fleet for cargo operations.”
Monday’s announcement of new names and branding comes after Culp in November 2021 said GE would split into three companies, focused on energy, healthcare, and aviation.
—Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).
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