Kawasaki Heavy Industries, manufacturers of heavy equipment, engines, aerospace, ships, trains, and defense products, is spinning off its motorcycle division from the rest of the company. The move comes as the division sees sluggish sales due to the COVID-19 pandemic.

Previously, the headquarters of Kawasaki Heavy Industries in Kobe, Japan, housed both the main operations and the motorcycle division. In an announcement on Monday, November 2, KHI said it would spin off its motorcycle and rolling stock divisions, which manufactures trains, and is also experiencing declining sales. Kawasaki calls this a major reorganization and restructuring.

Kawasaki Head Office. Credit: Wikipedia.org

The 124-year old company’s motorcycle division is expecting to report a loss of 5 billion yen ($47.7 million USD) for the current business year. KHI, along with Mitsubishi Heavy Industries and IHI, are considered the big three Japanese industrial manufacturers in Japan. The restructuring is being done in part in an attempt to speed up the decision-making processes within the division, as well as to rebuild and improve the division’s finances.

KHI has seen a steady decline in their stock prices in 2020, but, according to NHK World-Japan, Kawasaki President Yasuhiko Hashimoto said he hopes the motorcycle division continues to build the strong Kawasaki brand.

The restructuring moves come in the midst of a worldwide pandemic that has had a volatile effect on global markets and economies, stifling consumer spending. Kawasaki also announced plans to integrate their shipbuilding division into their plant division, and to increase cooperation with other companies in an effort to comply with environmental regulations.

Sources: nhk.or.jp, tellerreport.com

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