Yamaha to shed jobs and close factories

Following a massive net loss of 216.1b Yen ($A2.7b) in 2009, Yamaha Motor Company has formulated a new three-year management plan that "calls for the company to get back to basics and to redouble its commitment to product development and a bottom-up approach".

In the motorcycle segment, Yamaha recorded an operating loss of 4.2b Yen ($52.2m) in 2009, with sales decreasing 20.6 percent from 2008 - down from 5,865,000 to 5,840,000. Motorcycles sales in North America and Europe were particularly sluggish, which the company principally attributes to the negative impact of the stronger Yen and significant production cutbacks designed to reduce stock levels.

Not surprisingly, there wasn't a company dividend paid in 2009…

With such poor results unsustainable in the long-term, the new management plan has emphasised the acceleration of "structural reform", which includes closing five factories in Japan and two overseas over the next three years, and shedding a further 1000 jobs in Japan, Europe and the US - which is in addition to the  previous announcement that 1700 positions would disappear.

Other measures to lower outlays -- which Yamaha hopes will lower its breakeven point for motorcycles from 250,000 to 200,00 units -- include the establishment of the 'Cost Innovation Sector' to integrate technology, manufacturing and procurement, and enhancing collaboration with major suppliers.

That's phase one (2010), and during the growth strategy in 2011-2012 Yamaha plans to release a number of low-priced motorcycles in India and China, increase its ratio of fuel injected products in the ASEAN region, and accelerate the development and marketing of electric-powered bikes.

Yamaha plans to spend 120b Yen ($A1.5b) on capital expenditure until 2012, primarily in support of new motorcycle releases in markets like China and India, as well as on cost reduction programs and environmentally friendly and electric engine technology.

Just what that means for the ongoing development of Yamaha's range of sportsbike, cruisers, etc remains to be seen.

Yamaha is forecasting total motorcycle sales of 6,579,000 in 2010, based on growth in only two of its sectors: Asia and "other", which encompasses Australia.