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AEG AG, former German electronics and electrical-equipment company. As one of Germanyâs leading industrial companies through much of the 19th and 20th centuries, AEG manufactured products for industrial and domestic use.
The company was founded in Berlin in 1883 when the industrialist Emil Rathenau, with financial support from Siemens and Halske, another major German electrical company, founded the Deutsche Edison Gesellschaft fĂŒr Angewandte ElectricitĂ€t (âGerman Edison Company for Applied Electricityâ). In 1887 the company was renamed the Allgemeine ElektricitĂ€ts Gesellschaft (AEG), which became largely responsible for installing Germanyâs first electric power system. It strung transmission lines and built electric trolley systems across Germany before 1900.
In 1941 AEG acquired Gesellschaft fĂŒr Elektrische Unternehmungen AG, an electric holding company, thus tightening its grip on the German electrical market. In 1966 Telefunken AG, formerly an AEG subsidiary that manufactured audio and electronics equipment, was integrated into AEG, changing the company name in 1967 to AEG-Telefunken.
In the latter part of the 20th century, AEG-Telefunken faced severe financial problems, which some analysts attributed to the companyâs decision to continue making high-priced consumer electronics goods (such as stereos and television sets) long after Telefunkenâs prices had been undercut by foreign competitors. Most of the companyâs Telefunken operations were sold in 1983, with other portions sold in 1985. The remaining firm, renamed AEG AG in 1985, produced electrical and telecommunications equipment, electronics components, office machines, computers, and home appliances. Swedish appliance manufacturer AB Electrolux acquired the AEG household appliance line in 1994. AEG brand appliances remained part of Electroluxâs consumer durables division into the 21st century.
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