Thread Number: 37539  /  Tag: Brand New Vacuum Cleaners
Relationship between Lux International and Aerus 		[Down to Last]

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Post# 400334   11/3/2018 at 07:13 (1,999 days old) by TLFinland (Finland)        

Last summer a friend of mine gave me a Globaltek Renaissance for free - it had a surpressor capacitor failure. I fixed it and saw similarities between Globaltek, Electrolux and Lux and was very puzzled. I did some research and found out that Globaltek was actually a product of American Electrolux... Formerly known as Aerus and Lux was former Swedish Electrolux brand - Electrolux of Sweden sold away “the door-to-door” selling vacuum cleaner section to a Swiss company called Lux International near 20 years ago and that’s why this style of canister vacuum cleaners sold door-to-door in Europe now use Lux brand instead of Electrolux. Electrolux however continued manufacturing the vacuum cleaners for Lux for some time and D770 and D790 series were based on the older Electrolux D750. At some point however the co-operation with Electrolux must have stopped. The Lux D820 had resemblance with D790 but was a completely differenct mchine. And when the Lux Intelligence was announced it was based on Aerus Guardian Platinum (the newest model of former American Electrolux now known as Aerus). So now there must be some co-operation between Lux International and Aerus. BUT there’s no information about it anywhere. On Aerus homepage it’s said that Aerus Guardian Platinum is designed int the USA but manufactured elsewhere. And on Lux International’s site it’s said that the Lux Intelligence is designed and manufactured in Europe. So, one of the companies is lying or atleast bending the truth... Does somebody here on Vacuumland know more about the relationship between the companies? And in which coutry are the Lux/Aerus vacuum cleaners made in at the moment? I also found out that the same model known as Lux Intelligence is sold under the Sauber brand in Australia! Very confusing...

Post# 400367 , Reply# 1   11/3/2018 at 17:39 (1,999 days old) by compactc9guy (Bathurst NB)        

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let me know

Post# 400369 , Reply# 2   11/3/2018 at 18:28 (1,999 days old) by eurekaprince (Montreal, Canada)        

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It looks like there have been corporate changes at Lux International. In researching the corporate structure of the company a few years ago (try looking for older threads here at Vacuumland), it was clear that Lux International had some sort of “partnership” arrangement with the American Aerus company. This allowed them to create the European made Aerus canister we can now buy here in North America. But now their corporate website says nothing about that former partnership.

A few years ago, a few things seemed very clear:

1. Lux was originally the door-to-door sales division of Sweden’s Electrolux company.
2. It became an independent “direct sales” company some time in the 1990’s when it was bought by a Swiss group of business people. Its headquarters moved to Zurich.
3. The new Swiss company offered deluxe canister vacuums through direct sales divisions all over the world - Europe, Asia, South America. One of the biggest divisions was Eureka-Forbes in India. And somehow they supplied their deluxe tank cleaners to customers in Australia through the Australian Sauber company...though (like Aerus) Sauber vacuums are sold in Godfreys stores, not door to door.
4. All that seems changed now - the Lux International website no longer mentions any corporate connections to Aerus or Eureka-Forbes. It must not be doing very well now that door-to-door sales are floundering due to the internet and Amazon and online ordering becoming popular. You can’t seem to buy a Lux Intelligence canister online at all.

Post# 400391 , Reply# 3   11/4/2018 at 01:45 (1,999 days old) by TLFinland (Finland)        

Thanks for the reply!

Here's what I knew already... The classic Swedish Electroluxes sold door to door have a long succesful history here in Finland. A Finnish company called Hedengren direct started organizing the Finnish marketing back in the 1960s. My grandmother bought her first Electrulux (D720) in the 1970s and the second (D750) in 1990. After the D750 had a suprsession capacitor falure in 2011 a Hedengren door-to-door salesman sold her a new Lux Intelligence and that was the first time I heard of the Lux brand. I also noticed that the Lux was made in EU (usually that means some former Soviet country), the D750 and D720 were made in Sweden. There was a press release by Electrulux that stated that the door-to-door division was sold off to Lux International but Electrolux continued manufacturing vacuum cleaners for them.

From the Finnish Hedengren direct homesite there is a bit more information than on the Lux International site. Perhaps the same information had been on Lux site but later removed, as eurekaprince wrote. Hedengren mentiones that Lux did some hard decicions and reorganized things some years ago. That might mean stopping co-operation with Swedish Electrolux, stopping the manufacturing in Sweden and starting to co-operation with Aerus.

At the moment Lux Intelligence is no longer available. They sell the model called Lux S115. However the appearence tells me that it still is based on Aerus Guardian Platinum.

Door-to-door sales are getting more difficult nowadays everywhere. The Finnish Hedengren direct has a web shop where they sell accessories and spare parts to Lux and older Electrolux vacuums. They still sell vacuum cleaners door-to-door and don't have the prices listed on their site. However I asked them via email and it's possible to oder one from them directly if you don't want a salesperson at your home. Maybe someday the prices and all the products will be available on the site. I think that the problem is with the prices. Usually door-to-door devices are much more expensive that the brands and models sold at super markets. The old Electroluxes and now Lux are built much better and are sturdier. They are not like those light plastic canisters that other manufacturers offer. But the price is the problem, people want to buy cheap and the quality doesn't count. And after selling the door-to-door division the Swedish Electrolux has also started selling those light plastic canisters under their brand. I believe that they are similar than Eureka vacuums sold in the USA.

But there is something fishy about Lux Internetional because they don't tell us everything. Recently they swithched the co. That might just be a good thing, the former co called Reto von der Becke didn't seem like a hones person to me. There's a Youtube video where he talks about mainly success, profits and marketing and forgets about the products.

And the Globaltek brand is also an interesting story. I hadn't heard anything about the brand before I received hte Reneissance model last summer. They sold it from door-to-door and had only one official service company in Finland. I contacted the company and they have no longer any spare parts available. I had to order a new hepa filter from the USA. New "unoficial" dust bags are still available on Finland but that's all. If I'm right, Globaltek was a competitor of Lux and there was no co-operation between companies the time when Glibaltek vacuums were sold in Europe.



This post was last edited 11/04/2018 at 03:26
Post# 400395 , Reply# 4   11/4/2018 at 06:31 (1,998 days old) by eurekaprince (Montreal, Canada)        

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Wow....thanks for that update Tuure. Pretty sad when you think the global market will force everyone to make their vacuums in China just to keep prices competitive. If you search “vacuum cleaner” on ebay now, you’ll see many Chinese-made vacuums with many many different names: Midea, Dibea, Puppyoo, Xiaomi, Ovente, Homasy, Iwoly, Favoto, Deenkee, etc. And so many of them look like the same vacuum coming out of the same Chinese factory.

Post# 400397 , Reply# 5   11/4/2018 at 09:27 (1,998 days old) by TLFinland (Finland)        

And even Miele has started to manufacture their cheaper vacuum cleaner models in China. However all the Miele models have been made of plastic for a long time already. Last week I saw a Volta vacuum cleaner that was made in China and was really light and badly made. Back in the day Volta was an Electrolux brand and they were made in the same factory than door-to-door Electroluxes in Sweden. There are also vintage Volta models that are identical to Electrolux - the idea was that Electrolux was the number one brand only sold door-to-door and it was possible to buy Voltas from stores. Later Volta vacuums becam different and also cheaper looking than Electroluxes thus they both used some same parts. For example I have an older Volta power head that is fully compatible with Electrolux and even has the same parts in side and the bottom plate is the same. BUT the top isn't and the "driving light" is missing.

It's a shame. Hopefully it remains profitable to manufacture vacuum cleaners still in the USA and Europe. Aerus and Lux are probably the only manufacturers that still made those old style sturdy appliances that are based of the good old design by Axel Wenner-Gren or similar. Miele still makes quality white appliances like washing machines, dish washers and refrigerators but not vacuum cleaners for some reason. The UK based Numatic also makes quality vacuum cleaers but they are just sturdy plastic, not aluminium like Lux.

I've read that they still would make vacuum cleaners also in Russia and they are based on the old Soviet models that were based on classic Electrolux. But I haven't been able to find much information. I don't speak Russian and thats a minor problem. Google translator has helped me with this site, however: chistoclub.com/pylesos-raketa/... and the site has also all kinds of information on other Russian and even Globan brands of vacuum cleaners.

Post# 400401 , Reply# 6   11/4/2018 at 11:31 (1,998 days old) by eurekaprince (Montreal, Canada)        

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I actually have no complaints about the two “Made in Germany” Miele vacuums I have bought here in Canada. They are excellent cleaners, and very easy to use because of their light weight. Plastic does not bother me in a vacuum cleaner...as long as it is durable and strong to withstand any bumps and falls during use.

Post# 400422 , Reply# 7   11/4/2018 at 23:24 (1,998 days old) by TLFinland (Finland)        

You're right, there is not much bad to say about Miele vacuum cleaners when it comes to durability and suction power. They just look too plastic and plain. I have one from 2008 or 2009 and buying that was actually the reason back then for me to throw away two beaten up Swedish Electroluxes from the late 70s/early 80s (which I later regreted because I got interested in collecting vacuum cleaners and actually bought the exact same models D720 and D730 to my collection - of course they are in a much better condition that the former were).

Post# 400426 , Reply# 8   11/5/2018 at 06:48 (1,997 days old) by KirbyCollector (Columbus Ohio USA)        

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Post# 400428 , Reply# 9   11/5/2018 at 09:02 (1,997 days old) by TLFinland (Finland)        

Yes, I have the exact same Globaltek model as in the link KirbyCollector provided. Plus mine has the external hepa filter.

Post# 400440 , Reply# 10   11/5/2018 at 19:10 (1,997 days old) by Paul (USA)        

I never could figure out why Aerus products, since 2004, have included the "Lux" brand until I went to Lux International's website and discovered that Aerus is actually its North American (U.S. & Canada) division.

www.luxinternational.com/...

Information from Wikipedia, FORBES, Electrolux, and Lux International websites:

Lux International began in 1901 selling kerosene and lamps. Elektromekaniska, a motor manufacturer, was established in Stockholm in 1910.

Axel Wenner-Gren began a partnership with Lux in 1912 with the Lux I vacuum cleaner.

On August 1, 1919, an agreement was reached between AB Lux and Svenska Elektron AB (in which Wenner-Gren was the dominating owner) giving Elektron the sole sales rights to AB Lux vacuum cleaners. The agreement, valid through 1929, obligated Elektron to buy its vacuum cleaners from Lux and show Lux the manufacturer on all the vacuum cleaners.

At the Annual General Meeting on August 29, Elektromekaniska AB (wholly owned by Wenner-Gren-dominated Elektron) changed its name to AB Electrolux. The new name combined Elektromekaniska and Lux.

The U.S. division of Electrolux, initially called Electrolux, Inc. then Electrolux Corporation, was launched in 1924. From then until around 1928 AB Electrolux held a majority interest in the U.S. company. It then became a minority shareholder until 1968 when it sold its shares to Consolidated Foods, which became the majority shareholder. Headquarters were then relocated from New York to Stamford, Connecticut.

Electrolux (Canada) Ltd. began in 1931 and was closely aligned with AB Electrolux until 1957. From that time until their 1985 merger it shared research and development--and at times products--with Electrolux Corporation.

In a 1986 move to bolster declining sales and be more competitive, the company began exploring indirect sales by launching a show line called "Special Edition"; followed later by its store line identified as the "Regency Series" (sold at Best Products, Montgomery Ward, & Service Merchandise). This resulted in 30,000 vendors leaving and a 45% drop in revenue by 1989. Even so, the indirect sales continued for another 12-15 years with labels such as "AdvantageSeries"; "2100", "Ultralux", sold through QVC, and others; and several direct sales labels with the "by Electrolux" tag.


A manufacturing mapartnership with Prolux, Inc. also produced a commercial line of uprights, including Electrolux's direct line known as "Electrolux Commercial" and the indirect line known as "Xtreme" (commercial); and Prolux's 1400-series, followed by others.

1987 marked two significant changes: the closing of the last Canadian factory, influenced in large part by NAFTA; and in October, senior executives through First Boston Securities Corporation and Wesray Capital Corporation arranged a leveraged buyout of Electrolux from Sara Lee (Consolidated Foods until 1985) for approximately $230 million. The company's headquarters were then moved to metro Atlanta, GA.

On September 7, 1990, Sara Lee, Wells Fargo & Co., Canadian Imperial Bank of Commerce and BankBoston Corp. bought the financially-challenged Electrolux Corporation.

Engles Urso Follmer Capital Corporation formed Electrolux LLC in May 1998 to buy the assets of Electrolux Corporation for $55K. Joseph P. Urso, the chairman and CEO of Engles Urso, then replaced Thomas Albani, who had run Electrolux for seven years. (note: in November of that same year The U.S. Consumer Product Safety Commission announced a recall of 226,000 Electrolux upright vacuums because of a safety hazard. Those were the ones with the cord coming out of the top of the hand grip).

Most of the purchase price was borrowed money. To liquidate the debt, Urso sold back the Electrolux trademark and brand to AB Electrolux. The Swedish operation paid $50 million to use the brand in North America beginning in 2004. That gave Urso four years to wean his company from its original name. During the transition the private company was called Aerus Electrolux.

In another move to lowsr costs the Piney Flats, TN factory was closed and most manufacturing was taken over by AB Electrolux at its Eureka plants (nicknamed "Eureka-luxes") with Aerus performing assembly, distribution, and sales. Aerus continued manufacturing accessories and its shampooer/polishers until May 2016.

1998 also marked the end of the partnership between AB Electrolux and Lux.

Post# 400441 , Reply# 11   11/5/2018 at 19:13 (1,997 days old) by Paul (USA)        

Globaltek was launched around 1995 with the model C104B Renaissance. Veridian was another brand distributed by Aerus.

Post# 400457 , Reply# 12   11/6/2018 at 10:12 (1,996 days old) by Paul (USA)        
Correction

 "Engles Urso Follmer Capital Corporation formed Electrolux LLC in May 1998 to buy the assets of Electrolux Corporation for $55K."

Purchase price was $55MM (million).

Post# 400463 , Reply# 13   11/6/2018 at 13:32 (1,996 days old) by Paul (USA)        
Addenda

 A little more digging produced the following addenda to the above information:

1) ELECTROLUX USA & CANADIAN SUBSIDIARIES PARTNERSHIP BEGINS EARLIER According to Doug Smith's information, the USA & Canadian Electrolux Subsidiaries' alignment began earlier than 1957, although that's when some notable updates debuted in Canada such as the new painted metal body design and automatic shut-off (introduced in Europe with the Z90 in 1964). In fact, the cord reel (also first available with the Z90) became a Canadian option in 1953 and disposable bags in 1956 after test-marketing the U.S. products.

2) AB LUX MERGES WITH ELECTROLUX GROUP Electrolux Group's Annual Report of 1957 stated: "AB Lux, Stockholm, the owner of the premises at Lilla Essingen where the Company carries on manufacture, has merged with the Parent Company, resulting in these buildings being taken over by the Company ... "

3) ELECTROLUX GROUP SELLS ALL ITS CANADIAN SHARES TO ELECTROLUX CORPORATION Here's an excerpt from Electrolux Group's 1961 Annual Report (published April 12, 1962):

"As noted later in this report, the shares of Electrolux (Canada) Ltd., Montreal, were sold before the end of 1961. For that reason, the sales of that Company, are included for eleven months only."


"'Dividends received from other Companies' consist primarily of a dividend of $1.30 per share on the Company's holding of 350,000 shares in Electrolux Corporation, New York. This Company, which does not belong to the Group, showed an improved profit figure for 1961, as compared with 1960. An increased dividend of the first quarter of this year was declared.


"The Company's holding of the entire stock of shares in the Canadian Subsidiary was sold to Electrolux Corporation, New York, towards the end of last year. The main part of the cash received from the sale will be used in acquiring further shares in Electrolux Corporation, as per agreement ..."










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