New Zealand Sales Company Becomes Yamaha Subsidiary

Under a recently reached agreement between the New Zealand import and sales company for Yamaha products, Moller Yamaha Ltd. (Representative: Russell Moller, Location: Auckland, Founded: 1975) and Yamaha Motor Co., Ltd. (YMC), the Yamaha group will increase its investment ratio in Moller Yamaha Ltd. from the present 10% to 100% and the company will be renamed "Yamaha Motor New Zealand (YMNZ). The new company will begin operations as a Yamaha subsidiary as of April 1, 2001.

Under this agreement, the Moller Yamaha stock presently held by Mr. Moller and other investors will be purchased by YMC's 100%-owned subsidiary Yamaha Motor Australia (Representative: Masato Adachi, Location: Sydney, Australia), with the company's capital remaining at the present NZ$ 2.75 million (approx. 138 million yen) and the new investment ratio becoming 10% by YMC and 90% by YMA.
YMA's president Adachi will assumed the role of president for the new company in addition to his present post and management efforts will be directed toward strengthening the Yamaha brand image in the New Zealand market and strengthening ties with the Australian market, which has great similarities to New Zealand in terms of the Yamaha models sold and market make-up. By using the management resources and marketing know-how of YMA and sharing stock inventory for the two countries, it will be possible to increase business efficiency in ways that will improve competitiveness in the New Zealand market and boost sales and profitability.
Sales plans for the new company project an increase in overall sales from NZ$ 35 million (1.75 billion yen) in 2000 to NZ$ 55 million (27.5 billion yen) in 2003 structure. Particular increases in share are expected in the main motorcycle and ATV markets with the strengthening of the sales network and introductions of measures like user credit.

Due to the growth of New Zealand agricultural exports and the low interest rate policies of the present government contributing to increased consumer spending, the country's economy recovered from negative growth in 1999 to a GDP growth rate of 3.5% in 2000. As a result, significant growth in unit sales of Yamaha's main motorcycles and ATVs are expected for the near future with demand centering in the agricultural sector. For another of Yamaha's main products in this market, outboard motors, demand continues to hold strong primarily in the pleasure-use sector. By initiating the new investment make-up and corporate structure for its sales company in the New Zealand market, YMC intends to provide products, marketing and service even more efficiently and in ways that are better fitted to the needs of this market.