Kawasaki Heavy Industries (KHI), the parent of Kawasaki Motorcycle Corp.,  is announcing that it will spin off its motorcycle business.  The spin off comes as part of a plan of corporate restructuring.  The Japanese manufacturer says that the move will speed up decision-making and improve its financial situation.

During a news conference, Kawasaki President Hashimoto Yasuhiko said that he hopes the motorcycle business will continue to build on the strong Kawasaki brand.  And he hopes that it will revitalize the market through collaboration with other companies.

Under the spin off, Kawasaki Motorcycles will get a separate management structure and likely a new name.  However, the company will retain its assets, intellectual property, and human resources.

While the spin off seems to be significant on its face, the change is not a large one for the parent company, Kawasaki Heavy Industries.  Motorcycles make up a very small part of the parent company which also has businesses producing heavy equipment, aerospace equipment, industrial robots, gas turbines, ships, and boilers.

Once the spinoff is complete, the new Kawasaki Motorcycle Corp. can better concentrate on its products.  It may also be able to adapt to industry wants and needs better.  Ultimately, spin-offs can lead to a more focused and agile company.

Spin off won’t change KMC USA

The move is not expected to change much for the U.S. branch of  Kawasaki Motors Corp. U.S.A. (KMC).  In a statement, KMC CEO Eigo Konya said:

 As for operations in the United States, KMC will see no changes. All KMC’s tasks and missions will remain the same and KHI’s restructuring plan will only further enhance KMC’s ability to serve KMC’s customers by furthering KMC’s ability to be quick and efficient when studying the industry and the future of powersports. The Kawasaki brand in North America is strong and getting stronger even under the COVID-19 situation and we at KMC will continue our great mission of delivering Kawasaki products and satisfaction to our customers.”

The spin off is expected to be complete by October 2021.

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