Kawasaki plans to spin off its motorcycle and off-road four-wheeler business

KHI is a huge Japanese conglomerate that builds a variety of products ranging from ocean-going vessels to high speed trains and is involved in projects ranging from building hydrogen-powered infrastructure to robotics in health care. The Motorcycle and Engine Business "is Kawasaki's only mass-production consumer-facing business" and a spin-off will "speed up decision-making," the statement said. KHI says it plans to complete the spin-off by October 2021.

On one hand, this could be good news for people working in Kawasaki's motorcycle business around the world if it really does result in a more independent and agile company better able to respond to consumer trends. Plus, it appears KHI expects the new company to retain close ties with its former parent by collaborating with KHI's Precision Machinery & Robot Business, among other projects.

On the less sunny side, one reason Kawasaki is spinning off the motorcycle and off-road four-wheeler business is because the company sees weak prospects going forward.

"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," the KHI statement said.

The broader KHI restructuring plan also includes consolidation of some of its other major divisions and plans to spin off the Rolling Stock Business, which builds railway equipment.