LG Electronics who used the CES Show in Las Vegas to introduce new “Intelligent” appliances that talk to Smartphones and Tablet PCs has told retailers that they plan to increase the cost of their appliances between 8 and 10% this year due in part to energy efficency regulation issues.
The move follows global price hikes by both Electrolux and Whirlpool.
In a letter sent to dealers, LG blamed the rising costs of raw materials as well as the costs of complying with energy-efficiency standards and regulations. It was only 6 months ago that LG was withdrawing appliances from the Australian market because of misleading statements to consumers about the energy efficiency of their appliances.
According to the Wall Street Journal the letter said that prices have been rising sharply for steel, copper, plastics and other materials used in making appliances such as washers, refrigerators and ovens and that globally price rises will apply.
“This challenging trend of rising commodity costs is expected to continue into 2011,” LG said in the letter, a copy of which the company provided to The Wall Street Journal.
Samsung Electronics said that company was “looking at ways to offset [higher costs] through cost-containment plans and price adjustments.”