Kawasaki Motors Corp. U.S.A. is reorganizing its management and the Irvine space that houses it.
The American subsidiary of the Japanese manufacturer of motorcycles, watercraft and all-terrain vehicles has moved Bob Shepard into the newly created position of vice president, group marketing, and consolidated three marketing groups under his direction.
The three marketing groups previously reported to the company’s president, Masatoshi “Mike” Tsurutani.
In the shift, Shepard hands direction of information systems, company operations and human resources functions back to Tsurutani.
“We made a lot of good progress over the last few years, but the president thought it was time to change things,” Shepard said. “The reorganization is one which really focuses on the marketing, corporate planning and product advancement areas.”
The company also is moving 115,000 square feet of warehousing operations and 30 jobs to Ontario to make room for more space for administrative, sales, research and development, and racing group employees in the Irvine headquarters. The company will remodel 25,000 square feet of the warehouse space into a two-story, 50,000-square- foot office facility. Kawasaki currently takes up 235,000 square feet of space in a building it built in 1986 near the south end of the Irvine Spectrum. The moves will begin in April.
“It’s to allow for the growth we had and the growth we anticipate,” Shepard said.
Kawasaki has about 500 employees in Orange County and another 150 nationally.
Kawasaki has been on a roll lately. The company had its second-best sales year in 2000, Shepard said.
“Motorcycles have become more in fashion. The image of motorcycles in America is pretty positive,” said Bob Moffit, the vice president of marketing and product management for the motorcycle division.
The off-road motorcycle and all-terrain vehicle markets have grown substantially in the past decade, but other companies, like Suzuki and Honda, also have penetrated that market.
Kawasaki also has its hand in the personal watercraft market with its Jet Ski products, which Shepard said were the first production models to be offered to the public. But that market has been sagging lately.
“Primarily because of over-aggressive expansion, an inventory overhang developed and it damaged prices,” Moffit said. The industry also suffered from regulatory restrictions and controversy stemming from accidents.
Kawasaki’s fastest-growing line is its smallest,the utility vehicles segment. The company sells its utility vehicle product under the Mule brand name and has had 30% growth in the past two years, Moffit said.
Another growing segment for the company is its small engine and power products business. It manufactures products for brush cutters, leaf-blowers, generators and water pumps. It also makes small engines for companies like Deere & Co. (manufacturers of John Deere tractors), Snapper Inc. (a lawn mower manufacturer) and golf cart manufacturers.
“That business is continuing to grow,” Shepard said.
Kawasaki also got Internet-savvy last year and started an online sales platform for retail accessories.
“We were an industry leader in selling accessories over the Internet, and that has continued to be a success,” Moffit said. n
