Society

Kawasaki to spin off motorcycle business

Nov 04 (NHK) - Leading Japanese machinery maker Kawasaki Heavy Industries says it will spin off its struggling motorcycle and engine businesses next year as part of a major restructuring.

The company announced on Monday that it plans to spin off its motorcycle manufacturing and sales division and Rolling Stock division, which manufactures both conventional and bullet trains.

Kawasaki says it hopes the move will speed up decision-making and improve its financial situation.

Motorcycle sales in Southeast Asia have dropped sharply due to the coronavirus pandemic. The company expects to see an operating loss of about 5 billion yen, or 47 million dollars, for the current business year.

Kawasaki says it is strengthening intra-industry cooperation to address compliance with environmental regulations and other issues.

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

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