By BOB TITA
CHICAGO -- Appliance manufacturers are counting on a "cash for clunkers"-type rebate program to revive slumping sales of refrigerators, washing machines and dishwashers.
Beginning late this fall, federal rebates will be available for purchasers of high-efficiency household appliances, furnaces and air-conditioning systems. Congress authorized $300 million for the program earlier this year as part of the federal economic-stimulus bill.
After seeing the recent surge in new-car orders attributed to the federally funded clunkers program, appliance industry executives are hoping to lure consumers back into appliance store showrooms with rebates that are expected to reach $200 on some types of appliances.
"It's a good way for the consumer to get back into the marketplace," said J.B. Hoyt, director of governmental relations for Whirlpool Corp., the world's largest producer of household appliances by revenue. "Clearly, anything that boosts business is good for us."
Whirlpool has been pushing for such a program for years. The 2005 energy bill included an authorization for $300 million over six years for energy-efficiency rebates on appliances. That authorization was never funded, but in the 2009 stimulus bill, the entire $300 million was authorized.
Appliances covered by the program include dishwashers, washing machines and refrigerators. They must carry Energy Star ratings, indicating they meet energy-efficiency standards set by the Environmental Protection Agency and Department of Energy. To qualify for rebates, buyers won't have to trade in older, less-efficient models, which is a key component of the car program. Appliances made by companies based overseas will be eligible for the rebates if they have the Energy Star label.
In 2008, about 55% of newly produced major household appliances qualified for the Energy Star designation, according to the Association of Home Appliance Manufacturers in Washington.
Whirlpool, Electrolux, General Electric Co. and other appliance companies are mired in severe sales slumps linked to the collapse of the U.S. home construction industry and prolonged by an economic recession that has damped consumers' interest in buying expensive durable goods.
The $300 million was distributed to states based on the number of households. But the federal government left most of the details, including specific rebate amounts for each type of appliance, up to state governments to decide. States' plans for the program are due to the Department of Energy by Oct. 15.
Write to Bob Tita at robert.tita@dowjones.com
