Yamaha Motor Co. forecasting net loss for 2009

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Although Yamaha Motor Co. posted over a 23 million dollar net gain in 2008, the company is already projecting over a 460 million dollar net loss for 2009. The publicly traded company’s first net loss since since the last major recession in 1984, the reason for the new projection is due to the rising yen’s effect on Yamaha’s export market coupled with the current global financiapocalypse.

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As if that wasn’t bad enough, Yamaha is projecting a 22% drop in global sales. While we’d like to think this is largely because nobody’s buying new Yamaha engines for their fishing boats, the motorcycle division is still projected to take a loss. The result of which is a consideration to postpone a new test track and parts plant in Japan as well as freezing production expansion for a plant in Indonesia. The company is also slashing executive salaries by as much as 20% for the remainder of the year.
The good news is that Yamaha dealers near the US borders in both Canada and Mexico are expected to report record sales from their parts departments for children’s motorcycles and atvs for 2009.
  • Ben

    Let me be the first to say – Holy crap.

    Guess that explains some of Honda’s racing decisions.

  • http://www.robotribe.com robotribe

    “The good news is that Yamaha dealers near the US borders in both Canada and Mexico are expected to report record sales from their parts departments for children’s motorcycles and atvs for 2009.”

    Har dee HAR.

    • http://www.1800motorcycle.net Joe Moses

      No it is serious. As of February 10, 2009 the Consumer Safety Protection Consumer Act bars the sale of motorcycle or motorcycle part that has a certain amount of lead in it. Certain parts just simply are made with lead involved. As a result, many manufacturers including Honda are not selling kids bikes or parts for kids bikes anywhere in the USA.

  • http://artistruth.livejournal.com will

    Can I blame the boatists anyway?

  • ty

    well I love their product…but dispise the financial people they hire. crimminals

    • http://hellforleathermagazine.com Grant

      Finance department, huh Ty? I’d say the finance department is making smart choices, cutting executive pay, holding off on growth-based facilities and being open and honest about projected losses for the next year. Every time I pick up the WSJ, some suit is lying through their teeth saying the worst is over so somebody will invest in his tainted stock.

      But Yamaha’s marketing & PR divisions? Not so smart here in the US.

      For example, Yamaha UK (with a TINY market share and budget compared to America) is driving people into the dealer network by throwing a giveaway contest for the 2009 YZF-R1. Second place being a VIP trip to a MotoGP race. That’s the first animated marketing graphic you see on their site, using a great shot of Rossi on the white model.

      And here in America? What’s the first I saw when I clicked on the site? No contest. No push to a visit a dealer. No cool MotoGP legend on cool MotoGP-inspired R1.

      Just a standard press shot of a nameless guy on a cruiser. That quickly faded into another press shoot of a random white couple on a boat.

      Way to go.

      • B. Head

        Heh, heh…you thaid “taint”…heh, heh.

  • http://www.urbanrider.co.uk Urban Rider

    Shocking. Thats a lot of cash.

    @ Wes

    I reckon this financial meltdown could be a good thing for motorcycle design. It’s a cleansing of the market of crap products, similar to effect of a world war, in that from the ashes of war many great products have risen and I think the same will happen due to the recession. Case in point, Yamaha have a huge range but none of their range get me salivating.

    I hope companies like KTM whether the storm and carry on giving us more innovative designs. Personally I wouldn’t cry if I never saw another Yamaha on the road, except for an XT 500 or the new VMax perhaps.

    People like me are crying out for a new type of street bike, I’m mosted tempted by the new Vespa GTS 300 at the moment and that saddens me that no motorbikes catch my eye.

    Ducati’s new streetfighter just looks like a sports bike with the fairings stolen and a cheap Acerbis headlight slapped on the front. Can we have something genuinely new please?

    • http://hellforleathermagazine.com Grant

      Wow, Urban Rider. You think the new V-Max is a keeper but shun this? I’m afraid we’re on opposite sides of the bed on that one…

      I think Yamaha, as well as most of the other big manufacturers, are making great bikes. So much that we’re spoiled to complain.

      To be truly radical in terms of new development would require stepping outside of their core market, which would be a massive risk for such a large publicly traded company.

      Such as making a bike with a single-sided tele-lever front suspension, fueled by alternative energy. Or the Bobby. Or the Tesseract. No, I’m afraid that won’t happen. Bikers bitch about wanting change, but they don’t really mean it. In the end, they just want their eggs like they’ve always had them. Plain.

      How many times have you personally heard or read the following? “That would be awesome if they just put regular forks and standard head-light on it.”

      Even if Yamaha did build something exotic like what you’re asking for, everyone would bitch that they made it cost too much because most regular Joe’s haven’t a clue about how things work in the world of actual mass-production. And that cool bikes with innovative tech and exotic materials will always start out on the pricy side to make up for initial R&D expenses.

    • http://www.1800motorcycle.net Joe Moses

      UR, what type of sportbike would be a “new type”. I’m really curious what is not out there and what imagination could bring to the street.

  • http://www.urbanrider.co.uk Urban Rider

    Good call on the Tenere, it reminds me of a transformer in its styling.

    I agree with all your points above with regard to Yamaha, as you say, any company that is publicly listed has to look after the shareholders first.

    I wish I had been riding when certain motorcycles had been first released… Triumph’s TR6SC, the 916, Kawasaki Z1 or even the MV Agusta Brutale, to feel genuine excitement that this would be a future classic and saving every penny to own one. The only bike I vaguely felt that about recently was the KTM RC8.

    Where is the next iconic design going to come from? Something to make people who don’t even ride bikes sit up and take notice. My bet is the downturn will produce it and it wont be one of the big boys like Yamaha…

    Looking at the 2009 sportsbikes, all the companies are moving in the same visual direction bar KTM, its like political parties all trying to seize the centre ground in an attempt to appease everyone but inspire no-one.

    Who will be the next Tamburini?

  • v

    thanks for the news
    i heard rummors that bmw is going to freeze development on husqvarna and stop the current move to a new plant in varese…that will suck.. but i am guessing that the motorcycle market isn’t the biggest sector to be hit..i mean they are nothing compared to the auto industry…actually i heard a bunch of guys at work saying that they are seriously considering scooters for their commute to work so..either way people will need transport..some may alternate between cars and other means of transport like motorcycles and scooters..the biggest hit will probably be expensive bikes and probably sportsbikes
    any news on harley?at this point mv agusta is totally dependent on them for finance and i was interested in buying the new brutale financial crisis or not .
    how about ducati or suzuki?

  • Joon

    Grant has hit all the major points.

    We all want a lot of different motorcycles; but the fact is, if it is not profitable for the company, they will not do it. That’s where the aftermarket companies come in.

    There are many costs associated with producing a new motorcycle; manufacturers have to forecast the life expectancy of products. They need to know how much production they can get out of the die they use to stamp parts. Decisions are done on a quantitative basis- opposite of most enthusiast’s point of view where passion drives the decision.

    • http://www.1800motorcycle.net Joe Moses

      Nonetheless there have been creative developments in bikes, cars…ect over the years. It is unusual, but it does happen.