Kawasaki Motors has launched a financing operation in the United States through a joint venture with trading house Itochu, marking the motorcycle maker’s first foray into direct customer lending, Nikkei reported.
The financing unit represents part of a broader ¥80 billion ($524 million) alliance that gives Itochu a 20% stake in Kawasaki Motors. The partnership specifically targets the lucrative off-road vehicle market, where high unit prices create stronger demand for installment financing options.
While Kawasaki frames the move as enhancing customer service, the arrangement serves multiple corporate interests. The manufacturer gains greater control over financing terms and promotional rates, previously dependent on third-party lenders. More significantly, direct lending provides access to detailed customer data that can drive parts sales, service revenue, and future product development.
The joint venture enters a competitive U.S. powersports market valued near $15 billion, where financing terms often determine purchase decisions for expensive recreational vehicles. Kawasaki’s move follows similar strategies by automotive manufacturers seeking to capture financing profits while building customer relationships.
The partnership revives a collaboration between the companies dating to the 1960s, when Itochu helped Kawasaki expand internationally. The financing venture supports Kawasaki’s ambitious Group Vision 2030 plan targeting ¥1 trillion ($6.6 billion) in annual sales revenue.
Operations began this year with equal ownership between the partners.
