Hitachi’s new CEO squares up to global challengesーNHK WORLD-JAPAN NEWS
Japanese electronics giant Hitachi has a new CEO. The US administration’s tariffs are shaking the global economy. He intends to guide the company through the turbulence with a clear strategy. We spoke with him to understand his vision. Tokunaga Toshiaki assumed the post of president and CEO in April. He hails from Hitachi city in Ibaraki Prefecture where the company was founded. I believe we have to quickly grasp the economic and social changes and keep transforming our ideas on how to proceed with our work. I’m committed to taking the lead in pushing for a revolution. Home electric appliances and construction machinery used to be Hitachi’s core operations. But the firm changed its business model after logging a huge deficit in fiscal 2008 due to the global financial crisis. It staged a rebound by pulling out from less competitive businesses and strengthening profitable infrastructure related operations. Each of our businesses such as energy and railways are getting stronger and gaining an edge globally. I believe our company can grow even more and digitalization is the key to spur that growth. We have the potential to take a leading position in the global market. Tokanaga plans on pouring a lot of energy into the digital related business that he used to be in charge of. He now aims for another transformation by adopting artificial intelligence technology into the firm’s mainstay railway and electric infrastructure operations. For its railway operation systems, Hedachi analyzes the condition of parts by cameras fixed on train cars and AI technology. Quickly detecting signs of trouble reduces the amount of parts that are replaced regularly and helps improve fuel efficiency. Hitachi’s overseas operations now account for 61% of its entire sales and North America makes up 16% of that figure. While the firm is seeing global growth, manufacturers worldwide now face a rough road ahead due to US President Donald Trump’s protectionist tariff policies. But Hidachi has already taken steps to ensure it can procure parts and manufacture locally as much as possible. We’ll keep a close watch on how the US government steers its policies. If we detect any risks, we’ll act promptly with agility and make changes. As for the tariff impact, we’ll stick to our original practice of strengthening local supply chains and by doing our best not to cross borders. I believe we can keep growing by avoiding major impacts on our businesses. Tokanaga is keen on pursuing a new Japanese business model that continues to evolve, especially at this time of growing uncertainty. More than half of Hitachi’s workers are non-Japanese. It would be ideal if workers unite in their efforts to contribute to the society therein and achieve economic growth as a result. I hope Hitachi plays a central role in realizing it. Leveraging its multinational workforce and unique local supply chains, Hitachi aims to ride out the waves stemming from the Trump tariffs and other global challenges.
Hitachi’s new CEO aims to leverage the company’s unique strengths to push for a revolution amid rising global uncertainty. #bussiness #japan #usa #politics #trade
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