Japan’s leading machinery maker Kawasaki Heavy Industries has announced that it will divest its ailing motorcycle and engine business next year as part of a major restructuring.
The company said on Monday that it plans to split its motorcycle manufacturing and sales division and its Rolling Stock division, which manufactures both conventional and high-speed trains.
Kawasaki says he hopes the move will speed up decision-making and improve his financial situation.
Motorcycle sales in Southeast Asia have fallen sharply due to the coronavirus pandemic. The company expects an operating loss of about 5 billion yen, or $ 47 million, for the current fiscal year.
Kawasaki says it is strengthening intra-industry cooperation to ensure compliance with environmental regulations and other issues.
Kawasaki President Hashimoto Yasuhiko told a press conference that he hopes the motorcycle industry will continue to strengthen the Kawasaki brand and revitalize the market through collaboration with other companies.
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Extract from the Kawasaki statement
The Power Sports business, which includes part of the Motorcycles and Engines business, includes motorcycles and four-wheeled all-terrain vehicles, and is Kawasaki’s only mass production business aimed at consumers. The split of this activity will accelerate decision-making, and by offering products and services in line with customers – including new lifestyle offerings – Power Sports will further strengthen its role as the Group’s flagship activity by building the strong Kawasaki brand.
In the short term, we will continue to work on improving our financial situation. However, when you consider the industry as a whole, it faces significant issues such as an aging customer base and compliance with environmental regulations. Kawasaki strengthens intra-industry cooperation, including through the joint development of advanced electric drive and safety technologies, as well as a greater community of functional parts, in order to catalyze the growth of the Power Sports business and revitalize the Marlet.
The Motorcycle & Engine activity also initiates innovative projects to seize new business opportunities. Its initiatives include extending the company’s resources to mass production enterprises in cooperation with Precision Machinery & Robot Business, collaboration in the markets of agricultural machinery and turf maintenance in hydraulic systems and engines. general use, and promoting the development of short-term mobility such as incorporating robotics and remote technologies.
In a statement, KMC CEO Eigo Konya said:
As for US operations, KMC will not see any changes. All of KMC’s tasks and assignments will remain the same and KHI’s restructuring plan will only improve KMC’s ability to serve KMC’s customers by enhancing KMC’s ability to be quick and efficient when reviewing the business. industry and the future of powersports. The Kawasaki brand in North America is strong and growing even in the face of COVID-19 and at KMC we will continue our great mission of providing Kawasaki products and keeping our customers happy. “
The spin-off is expected to be completed by October 2021.