Akebono Brake Industry Closes Plants, Reduces Workforce in Accordance with Revitalization Plan

Akebono Brake Industry applied for a business revitalization ADR procedure in January 2019 due to sluggish US business caused by poor business management. The company is now working on business revitalization. This procedure was completed in September of the same year with the consent of the business revitalization plan by all the relevant financial institutions. The company plans to re-examine the specific execution plan and implementation time under the new management system. According to the business revitalization plan, sales are expected to halve in the five years from 2019 to 2024. The primary reason is the decline of future orders in North America and Japan. In North America, supplies to GM account for over 45% of all sales; however, the supplied models will be discontinued in the coming years. Meanwhile Akebono Brake Industry has failed to secure supply orders for new models, which means that the company will only supply repair parts once the production of existing models is discontinued. In Japan, delays in the mass production of electric park brakes will account for the decline in orders.

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