Kawasaki Heavy Industries, Ltd. has decided to “spin off” its Rolling Stock and Motorcycle & Engine Businesses in October 2021. In addition, Kawasaki has decided to integrate its Ship & Offshore Structure and Energy System & Plant Engineering Businesses in April 2021 in order to accelerate its efforts to realize a hydrogen-based society. Note the distinction spin off does NOT mean “sell off!”
“During the COVID-19 pandemic, our business in both Powersports and Engine divisions has seen considerable success,” says Eigo Konya, President and CEO of Kawasaki Motors Corp., U.S.A. (KMC). “New and reignited interest in our industry has been met by tremendous efforts from Kawasaki team members and our dealer network to meet the needs of our customers in a new environment where health and safety are the first priority.”
Kawasaki Heavy Industries, Ltd., KMC’s parent company and 100% shareholder, restructuring plan calls for the Motorcycle & Engine business and the Rolling Stock business to be broken out into separate companies on October 1, 2021. These two entities will stand as pillars under a KHI umbrella… not sold to an outside entity. These changes are part of achieving Kawasaki’s new business direction and will further enhance Kawasaki’s ability to continue to innovate with technology and safety for the powersports industry.
“As for operations in the United States, KMC will see no changes,” Konya explains. “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.”
Motorcycle & Engine Business
KHI’s 2030 global view for the powersports business which comprises a part of the Motorcycle & Engine Business, includes motorcycles and off-road four wheelers, and is Kawasaki's only mass-production consumer-facing business. Spinning off this business will speed up decision making, and by offering products and services in sync with customers — including new lifestyle offerings — powersports will further enhance its role as the flagship Group business building the strong Kawasaki brand.
In the short term, we will continue working to improve our financial situation. However, when
taking a broad view of the industry as a whole, it faces significant issues such as an aging
customer base and compliance with environmental regulations. Kawasaki is strengthening intraindustry cooperation — such as through joint development of electric drive and advanced safety technologies as well as greater commonality of functional parts — in order to catalyze growth in the powersports business.
The Motorcycle & Engine Business is also instigating innovative projects to capture new
business opportunities. Its initiatives include extending corporate resources to mass-production businesses in cooperation with the Precision Machinery & Robot Business, collaborating in the agricultural machinery and turf care markets in hydraulic systems and general-purpose engines, and promoting the development of near-future mobility such as by incorporating robotics and remote technologies.