Yamaha Motor Co., Ltd. Announces ATV Production Transfer Strategy

CYPRESS, Calif. – February 12, 2010 – Yamaha Motor Co., Ltd. (YMC) today announced plans to transfer its all-terrain vehicle (ATV) production currently in Japan to the United States. With this transfer, the production capacity of YMC’s Japanese subsidiary – Yamaha Motor Powered Products Co., Ltd. (YMPC) – will be integrated into YMC’s U.S. subsidiary based in Newnan, Georgia – Yamaha Motor Manufacturing Corporation of America (YMMC).

The move, currently in the planning stages, is scheduled to begin in early 2011 and is intended to optimize manufacturing capacity and improve productivity. The transfer will facilitate the consolidation of both production management and manufacturing technologies, as well as afford an increased level of responsiveness to market needs by maximizing production in the United States, the country with the largest demand for ATVs. The production transfer to Newnan, Georgia, is expected to be complete by 2013.

“We are pleased to have this additional ATV production transitioning to YMMC in Newnan, Georgia,” said Mike Martinez, General Manager of ATV & SxS Operations, Yamaha Motor Corp., U.S.A. “We expect this transition to have a positive impact on the local economic community and provide worldwide recognition for our state-of-the-art facility and its ability to produce durable and reliable off-road vehicles.”

YMMC currently manufactures ATVs ranging in engine displacement from 250cc to 421cc. The production transfer will increase the facility’s production lineup to include a wide range of Yamaha ATVs up to models with large 700cc engines. This transfer allows YMPC to concentrate on manufacturing generators, multi-purpose engines and golf cars, while YMMC will also continue to manufacture golf cars, personal watercraft and Side-by-Side vehicles.

Possible jobs with Yamaha in GA in the future?

The Rhino and several ATV's are already made in Newnan, Georgia along with the golf carts. I really think this is just consolidating all ATV production in the USA. ATV sales outside the USA are very small anyway.

Personally I think Yamaha Corp is trying to further seperate it's businesses. I would not be surprised if Yamaha Corp spins off all holdings it has in the Powersports/Motor business (Yamaha Corp only owns 1/3 of Yamaha Motor Corporation -- they spun off the other 66% years ago). The Powersports side is not a big money maker today whereas the music side is popular around the world and generates by far the most sales. Whatever Yamaha makes they tend to make excellent products but in today's world economy companies really need to pick their focus.

We all wonder when the next Rhino or SxS is coming out and I think it is delayed due to lack of profitability in the Powersports side. Yamaha Corp is putting it's cash in music. Other than Power Steering in ATV's 3 years ago there has not been any big changes in the Yamaha ATV/SxS line. And no I do not consider a 26cc and Fuel Injection change a big change to a Rhino...