Hitachi Taps New President, Plans to Spin Off Businesses

The economic downturn is wreaking more havoc with technology giants: Hitachi has jettisoned its president and announced plans to spin off its auto and consumer electronics businesses.

The global economic downturn is claiming another victim, and Japanese electronics giant Hitachi announced today it is installing a new president (PDF) and making plans to spin off its auto and consumer electronics businesses into separate companies (PDF). The announcement comes as the company girds itself to post a massive loss for its current fiscal year.

First up, Hitachi announced that Takashi Kawamura will take the company’s reins as its new president, CEO, and chairman; Kawamura currently serves as chairman of Hitachi Plant Technologies and Hitachi Maxwell, Ltd. Hitachi’s current president, Kazuo Furukawa, will step down into a role as vice-chairman, and current chairman Etsuhiko Shoyama will be come a director on the company’s board.

Next, Hitachi has outlined a plan to cut costs by 500 billion yen during its next fiscal year starting in April, but noted that the moves will not likely lead to a revenue increase in the foreseeable future because of global economic decisions. In a move to make the company more limber, Hitachi also announced it is planning to spin off its automotive and consumer electronics companies into separate, wholly-owned Hitachi subsidiaries. Hitachi’s auto group makes products like LiIon batteries, while the CE arm makes everything from flat-panel TVs to camcorders, mobile phones, projectors, and audio gear.