A Major Restructuring
In an interesting move, Kawasaki says it will be spinning off its motorcycle and engine businesses as a part of a major restructuring that will integrate some of its industrial divisions of the company.
While Kawasaki is a big player in the motorcycle industry, it’s just a small part of Kawasaki Heavy Industries. The company also makes bullet trails, heavy equipment, aerospace equipment, industrial robots, gas turbines, boilers, ships, and more. Motorcycles are just a small part, so it makes sense to break off the motorcycles from the rest of the pack.
This is especially true due to the fact that NHK World-Japan News reported that motorcycle sales in Southeast Asia have dropped sharply due to the COVID-19 pandemic.
Kawasaki will focus on its larger operations and its energy projects and less on bikes. Ultimately, this could be good for Kawasaki motorcycles. By spinning off the bikes into its own company, it will let the bike division operation outside of the many other things Kawasaki Heavy Industries does. This could mean the process for the company to do new and interesting things could get quicker and more streamlined.