Source:
https://scmp.com/business/companies/article/1153701/lenovo-americas-unit-hints-growing-east-west-split
Business/ Companies

Lenovo Americas unit hints at growing east-west split

Lenovo's formation of a new Americas unit suggests a growing rift between its Chinese and western operations, which could lead to managerial discord over the next two years.

Lenovo made a landmark purchase of IBM's PC division in 2005. Photo: Reuters

I don’t know if anyone else out there has noticed this, but a recent string of events is pointing to a growing rift between PC giant Lenovo’s (0992.HK) North American-based operations and its home base in China, in what could be a good or bad thing depending on how the situation develops. The nascent rift was on display recently with media reports that the company was forming a new and highly autonomous Americas unit to strengthen its North and South American operations. 

Longtime Lenovo watchers will probably recognise that this split has its historical roots with the company’s 2005 landmark purchase of IBM’s (NYSE: IBM) PC assets, which transformed Lenovo from a Chinese to a global company. As part of that deal, Lenovo inherited a massive IBM operation in the US state of North Carolina, which has continued to serve as one of its major global operations to this day.