business

Toshiba to split business into three companies: report

26 Comments
By Kyoko HASEGAWA

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26 Comments
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Which one will go bankrupt first?

5 ( +12 / -7 )

Possibly is like a yes or no in inconclusive agreement on the circle of yes or know to not to know and say no meaning yes in Japanese. Easy

-4 ( +2 / -6 )

I would prefer the government to stop supporting zombie companies.

Now instead of one Toshiba we will have three companies to carry on their debts, each with shiacho, kachyo, buchyo.

6 ( +10 / -4 )

End of an era.

Basically, they try saving faces from announcing the bankruptcy of Toshiba. The repercussion of Toshiba's bankruptcy is largely political and societal because an ancient giant that goes down will leave much more pessimistic antagonism of the people against bureaucrats and Keiretsus. This plan will save Toshiba from facing bankruptcy but won't avoid the foreign takeover. Splitting into three will allow activist shareholders more emboldened in their acquisition.

-1 ( +5 / -6 )

I am sure the employees must be thrilled, especially the 50+ year old buchos.

3 ( +5 / -2 )

The amount of financial trickery (i.e. accounting fraud) going on at Toshiba in the last few years shows just how poor their business model is.

2 ( +8 / -6 )

Capitalism is always necessary growing at all costs, not such splitting , miniaturization and following shrinking or bankruptcy of the company parts that cannot outbalance or hide losses internally anymore.

-8 ( +0 / -8 )

Toshiba plans to split into three companies as early as 2023, a report said Tuesday, after a series of crises at the firm including the ouster of the board's chairman and a contentious buyout offer.

"Crises" is an understatement. Nobody has forgotten how they cooked the books back in 2015 for a whopping 150 billion JPY.

https://asia.nikkei.com/Business/Toshiba-seen-losing-most-of-its-board-over-cooked-books

https://moneyweek.com/402009/toshiba-cooks-the-books

The fact that it was still in operation for the next 6 years speaks volume...Seems they have now reached the end of the road.

Just have a look in wiki under 粉飾連結 (funshoku kessan) or financial window dressing. The list covers a lot of household names (with some being now former ones, actually).

https://ja.wikipedia.org/wiki/%E7%B2%89%E9%A3%BE%E6%B1%BA%E7%AE%97

Add to this: Sharp bought up by a foreign company, National picked up by Panasonic, Sony sold at least some of the family jewels if I recall, Toshiba crippled beyond repair, Nissan in the dumpster, etc, etc.

Wonder how long Japan Inc and J-politicians will continue to ignore the writing on the wall: The 80s are O-V-E-R. Japan is not riding the wave any more and hasn't for decades. Evolve and move on, if not you will just die off...and take the country with you...

4 ( +9 / -5 )

Crappy products anyway. Hitachi much better.

-3 ( +5 / -8 )

Bye bye

-5 ( +2 / -7 )

Great. Instead of one disaster there will be three.

-2 ( +3 / -5 )

@ It isn't helping that the government and Japan Inc, is burning trillions of yen on vanity projects like the Mitsubishi SpaceJet (due to be cancelled) and the even more disasterous, overdue and overbudget Maglev Shinkansen (they know full well how Maglev projects failed in Germany and China).

They could have spent those trillions on

welfare for children, daycare and unemployed

paid parental leave for fathers AND mothers.

domestic funding for emerging industries such as renewables (which Japan is awfully slow to implement) that could create jobs for rural prefectures (REAL jobs, unlike building a gaint squid in a rural town with taxpayer yen)

developing software industries, IT for the upcoming 4th industrial revolution (even qualified IT professionals are treated like dirt in Japan, while they are paid millions and sought after in the US)

But the Japanese public are so easy to fool by showing off maglev trains and planes.

1 ( +7 / -6 )

So now they'll have triple the chance to move money around, hide debts, invent profits and generally obscure their accounts.

-1 ( +3 / -4 )

3 things dangling together in the wind. What comes to mind? Thank you.

-3 ( +0 / -3 )

Time for someone to walk old man Toshiba up the mountain path and leave him there for the winter. Time for new blood

-2 ( +3 / -5 )

Just a note to add, Japanese large companies such as Toshiba and others like them can no longer continue to compete on the world stage while corrupt to the bones.

Times has changed and the good old boys butter move on or adopt. American, German, British, and Chinese companies are goblin factories and it wont take long before Toshiba is swallowed.

-4 ( +1 / -5 )

Funny- General Electric (GE) just announced that they're splitting into 3 companies, too (this morning's Boston Globe).

4 ( +4 / -0 )

Japanese companies face the hardship of surviving in the global market due to the old oyajis on top who are either incompetent or corrupt to the core!

0 ( +2 / -2 )

Ah commentary from financial wizards with a minimal understanding of economics and finance. Simply look at Westinghouse and GE.

-4 ( +1 / -5 )

They were at the top in the 80's , what a roller coaster! Just didn't understand the internet or where the world was heading. Probably the executives still using fax machines and can't even operate a smart phone.

-1 ( +0 / -1 )

TOSHIBA, always thought they had a cool name for a company.

Not lovin this news. Small wonder if it ain't the good ol "top club"

that looted the place on the way out.

Japanese companies face the hardship of surviving in the global market due to the old oyajis on top who are either incompetent or corrupt to the core!

Yes- Both! These Old Looters, die hard.

0 ( +1 / -1 )

National picked up by Panasonic,

That is incorrect. In 1935 Konosuke Matsushita founded Matsushita Denki Sangyo, known outside Japan as Matsushita Electric Manufacturing Company Ltd. After WWII Matsushita started to produce consumer electronics such as major household appliances and televisions. Matsushita used the "National" brand name on all of their consumer goods. Matsushita gradually expanded their sales and manufacturing abroad. In 1960 Matsushita began investing in plants in the US but found the National brand name was already trademarked by an American firm. Instead Matsushita decided to call their products sold in North America by the Panasonic brand name. However in Europe and Asia Matsushita products carried the National brand name well into the 1990s, as was true of Matsushita products sold in Japan into the early 2000s (I have a couple of examples of these btw, a couple of hairy chested 100 volt National vacuums that we still use). In time the Panasonic name gained world wide acclaim and in 2010 Matsushita renamed the entire company the Panasonic Corporation, and all of their products world wide that were once labeled National now carry the Panasonic brand.

Panasonic did absorb Sanyo circa 2010 or so but there is a shared family history between Sanyo and Matsushita. Old man Matsushita lent an empty factory to a son in law around 1947 and that company became Sanyo. After Sanyo's most important factory was wrecked by a 2008 earthquake and their customers looked elsewhere for microchips they never recovered and Matsushita agreed to buy them. We also have a Panasonic Airsis vacuum, a machine that was originally designed and sold by Sanyo but is so good Panasonic kept it in production, selling it for close to 13,000 Yen in 2012!

1 ( +1 / -0 )

Probably the executives still using fax machines and can't even operate a smart phone.

I doubt it. They certainly have the most modern technology. Toshiba had some of the most sophisticated computer controlled milling machines in the world used to precisely machine submarine propellers. They were considered to be a highly controlled technology not to be sold abroad. The US allowed Toshiba to have that tech so the JMSDF could have an acoustic advantage over the Soviets. Then Toshiba sold examples of this equipment to the Soviets, allowing the Soviets to understand some of the secrets of US submarine propellers and make their own subs much quieter under water. Nice job Toshiba. Some of us have never forgiven you.

3 ( +3 / -0 )

Announcing this on the same day GE does the same? Coincidence?

0 ( +0 / -0 )

I work at a large JP company and senior managers delegate and monitor but do no work. We got a new complicated database and my boss has no idea how to use it, he just laughs and asks someone to check for him. Pretty easy job at that level for 20 million yen but is it sustainable???

0 ( +0 / -0 )

Pretty easy job at that level for 20 million yen but is it sustainable???Pretty easy job at that level for 20 million yen but is it sustainable???

That sounds a lot like most big corporations. Do you think the President of an airline is an active licensed Airline Transport Pilot flying routes? Do you think the manager of a big FedEx hub gets their hands dirty handling packages? No, of course not. They are decision makers and are responsible to find the best talent to do the many jobs they are responsible for to their upper managers. They are responsible for performance metrics and must know what to do to optimze the performance of whatever part of the business they are responsible for.

0 ( +0 / -0 )

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