The Electrolux logo is seen during the IFA Electronics show in Berlin, Germany.
STOCKHOLM Reuters -- Electrolux, Europe's biggest appliances maker, said on Monday it was on track to reduce costs at underperforming plants in North America as part of its ongoing efficiency programme in the region.
The Swedish group said in a statement to investors later in the day that the cost per unit in Anderson and Springfield factories will be improved in the near-term, reaching competitive cost levels.
The investments in new and innovative modular product architectures are a key earnings contributor for the North American business area, which includes commercial growth in higher value categories.
In recent years, Electrolux invested heavily in its North American plants, but the pandemic and component shortages have delayed the ramp-up of local production.
The business and market outlook given in February and its financial targets were reiterated by the group ahead of the capital markets day in Stockholm.
It predicted lower sales volumes in the year 2023 due to weaker consumer confidence and demand across Europe, North America and Latin America, and said it may not be able to pass on higher energy and labour costs.
The competitor to Whirlpool said it had a clear path to reach a target that the aftermarket segment will account for 10% of group sales in 2025.