Treschow believes Europeans may rush ahead of Americans and buy smart appliances. European energy and water prices are high, so IT-efficient machines, even if expensive to purchase, could save money over the long haul. Smart washing machines already being sold on the Continent measure the conductivity of rinse water, enabling the machine to stop rinsing as soon as all the detergent is dissolved. Electrolux is experimenting with 9,000 Swedish households, giving away free washing machines that allow users to pay per washing cycle via their electric bill. Of course, such revolutionary gizmos won't transform the dull industry overnight.
Competition remains focused on cutting costs and rationalizing brands.
On the day Treschow took office back in 1997, he announced plans to close 23 factories and 50 warehouses, and lay off 12,000 workers. Treschow's profile exemplifies the Swedish elite. Treschow lives on the sprawling Wallenberg estate outside Stockholm with his wife and their two teenage children. As a young engineer, Treschow joined a Wallenberg company, Atlas Copco, which makes construction equipment and mining tools. During the recession in the early 1990s, Atlas Copco lost a quarter of its sales, but Treschow kept it profitable.