General Electric is planning to sell the majority of its GE Capital unit to focus on its manufacturing units. They will spend up to $5 billion a year to expand the manufacturing units. GE is preparing to increase its cash for purchases and stock buybacks with a $26.5 billion plan to dispose of real estate assets.
Jeffrey Immelt, CEO of General Electric since 2001, stated, "The timing was very good to be a seller of financial service assets. You've got slow growth, you've got low interest rates, you've got los of liquidity, and you've got the search for yield." Immelt is reemphasizing industrial operations, which was GE's original purpose when Thomas Edison founded the company. GE is moving away from the era of finance expansion that was popular during the 1980s and 1990s under CEO Jack Welch.
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