Electronista: Hitachi turn around involves new president, company split Hitachi on Monday announced it has named a new president to head up the company’s turnaround plan to return to profitability.
At the same time, the company will split up its automotive supply and consumer television operations.
About two months ago, Hitachi announced the biggest loss ever among Japanese manufacturing companies and is expected to post a 700 billion yen ($7.1 billion) loss for the year at the end of March.
The loss-making businesses will be made into wholly-owned subsidiaries but become independent in July.
Names and other details for the new spun-off companies are not yet known, though they will both have a more evident accountability for making profits.
The smaller companies will also be able to make quicker decisions, thereby more efficiently serving their indented markets. The new automotive company is expected to retain the division’s 7,600 workers and annual sales of 280 billion yen ($2.84 billion). The focus of the new company will be on automotive systems for environmental and safety purposes. This includes lithium-ion battery, inverters, motors and related hardware used in hybrid vehicles.