Yamaha Motor and Yanmar Diesel Sign Agreement for Mutual Supply of Marine Products

On March 28, 2000, an agreement was signed between Yamaha Motor Co., Ltd. (YMC) (Representative: Takehiko Hasegawa; Location: Iwata City, Shizuoka Pref.) and Yanmar Diesel Co., Ltd. (Yanmar) (Representative: Takehito Yamaoka; Location: Kita -ku, Osaka) for the OEM supply of pleasure-use boats and fishing boats and the supply of other products.

In summary, the agreement includes 1) mutual OEM production of pleasure-use boats and fishing boat and 2) mutual supply of hulls for fishing boats, etc. Specifically speaking, the agreement will involve the mutual OEM supply of engine-mounted small pleasure-use boats (7-meter class) and small fishing boats (5~10-meter class) presently in both companies' lineups.
Also, in the area of larger pleasure-use boats (12-meter class), Yamaha boats mounted with Yanmar diesel engines will be supplied on an OEM basis to Yanmar.
Regarding other product supply, there will be an expansion in the range of fishing boat models that YMC has been supplying to Yanmar. The specific models and numbers of units involved will be decided on the basis of ensuing studies.

It is hoped that this agreement will contribute to greater stability and efficiency in the FRP boat manufacturing activities of both companies as well as offering them more complete lineups of models to offer. On the other hand, with regard to sales activities, the two companies will continue to conduct their own individual and independent activities.
Furthermore, this agreement will enable both companies to make more effective use of their respective development and manufacturing resources and core strengths in ways that will allow them to offer the customers stable supply of high-quality products. What's more, future consideration will be given to the possibilities of joint development of products that fit the needs of the Japanese market.

As a result of the prolonged recession in the Japanese economy, marine market sales continue to stay at relatively low levels. Sales of pleasure-use boats, which recorded a level of 8,000 units in 1996, dropped to a level of 5,600 units in 1998 (*). However, in the sport fishing sector, which is a core part of marine leisure, we have seen a strong growth in demand for fishing boats and the emergence of the sport of lure fishing from bass boats. There is also growing popularity primarily among young people for the new sport of wakeboarding. In light of these trends, we intend to continue our efforts to promote the growth and spread of marine leisure in Japan.

(*) Registered boats in the 5 ~ 10 meter classes according to statistics of the Japan Craft Inspection Organization (JCI).