LG Restructures to Sharply Define, Differentiate CE, Major Appliances

LG Electronics North America CEO Wayne Park will add president responsibilities in a broad restructuring that sharply defines the company’s major appliance and CE businesses, the company said Tuesday. Former LG North America President James Shad leaves the company less than a year after being promoted to the post from LG chief go-to-market officer (CED Dec 21 p1). Park’s expanded role takes effect Jan. 1.

The changes mark an end to LG’s experiment at combining major appliance and CE sales organizations that began in early 2009, but began to unravel last fall when regional sales for major appliances were made separate (CED Oct 14/09 p3). Jay Vandenbree, senior vice president of consumer sales, will lead LG’s home entertainment group effective Jan. 1, while Sam Kim assumes the same responsibilities for home appliances, LG said. Kim was previously the LG North America’s business leader for refrigerators.

The major appliance and CE divisions will have separate sales organizations, although how they will be structured hasn’t been finalized, an LG spokesman said. The operations group that was formed under Vandenbree will be restructured with James Fishler, senior vice president of go-to-market operations, shifting to head merchandising and in-store presentation for major appliances and CE, an LG spokesman said. Unclear is whether Tim Kavanaugh, vice president of distributor sales for major appliances and CE, or Marc Sorkin, senior manger of CE marketplace operations, will change roles.

"We're restructuring to better serve our customers and be more responsive,” which can best be accomplished with two separate sales organizations, LG spokesman John Taylor said. “We're refocusing the organization on the individual business units."

LG U.S. Senior Vice President Peter Reiner will continue to be responsible for marketing across CE and major appliances, the LG spokesman said.

In LG’s Commercial Display Division, Y.K. Cho, LG North American leader for business solutions, was appointed the division’s top executive. Ronald Snaidauf and James Dowell, commercial products vice presidents for hospitality and digital signage businesses, report to Cho. James Lee will lead the LG U.S. Air Conditioning and Energy Solutions group, which will include the new solar panel business led by Vice President Geoff Slevin.