Industry / Kawasaki will separate from its motorcycle activity

Kawasaki Heavy Industries (KHI), the parent company of Kawasaki Motorcycle Corp., announces the split of its motorcycles business. The split is part of a corporate restructuring plan. The Japanese automaker says the move will speed up decision-making and improve its financial situation.

At a press conference, Kawasaki President Hashimoto Yasuhiko said he hopes the motorcycle industry will continue to rely on the strong Kawasaki brand. And he hopes it will revitalize the market through collaboration with other companies.

As part of the split, Kawasaki Motorcycles will get a separate management structure and possibly a new name. However, the company will retain its assets, intellectual property and human resources.

While the spin-off looks significant at first glance, the change isn’t significant for parent company Kawasaki Heavy Industries. Motorcycles are a very small part of the parent company which also owns companies producing heavy equipment, aerospace equipment, industrial robots, gas turbines, ships and boilers.

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

The spin-off will not change KMC USA

This decision is unlikely to change much for the US branch of Kawasaki Motors Corp. USA (KMC). 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.