KENWOOD'S RICHTER OUT IN U.S. CONSOLIDATION
Veteran Kenwood executive Joe Richter will be highest- profile casualty of Oct. 31 company reorganization announced Tues. in which 4 U.S. subsidiaries will be consolidated into Kenwood USA, of which he has served as pres. since 1993. Richter was subsidiary’s first American-born pres. and was protege of Bill Kasuga, founding father of Kenwood operations in U.S.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Company said U.S. operations were being restructured to better serve Kenwood’s key markets of mobile and home entertainment and land mobile radio (LMR) communications. Being consolidated into Kenwood USA in statutory merger are Kenwood Communications, Kenwood Systems, Kenwood Service, Kenwood Americas. Moriyuki Tamura will shift from pres. of Kenwood Americas, company’s N. American holding company, to same post at Kenwood USA, which had been Kenwood’s largest subsidiary and was devoted primarily to consumer electronics. Tamura also will supervise all LMR and amateur radio products as head of Kenwood USA Communications Div. with departure of Kenwood Communications Pres. Tom Wineland. U.S. consumer electronics will come under direction of Bob Law, who despite his expanded responsibilities will shift to Kenwood USA vp from senior vp under new structure.
Law, echoing prepared statements quoting Tamura, said merger would streamline corporate reporting structure to improve market responsiveness and boost operational efficiency. Announcement said elimination of several managerial and midlevel posts would result in annual saving of $1.2 million. Law said that in addition to Richter and Wineland, only 4 additional positions were cut in finance and administration, and Kenwood’s CE marketing and sales forces remained “intact.”
Developments followed recent announcements by Kenwood’s corporate parent outlining plans to trim worldwide work force 35% on foreign exchange losses and sluggish sales of mobile phone handsets and home audio equipment. Kenwood is projecting net profit for fiscal year ending March 2003, following 3 straight years of significant losses.