Fishing & Boating News

Yamaha Responds to Rumors of Pending Outboard Price Increases

by: Walker Agency,

(Jun. 24, 2004 - KENNESAW, Ga.) In a strongly worded statement issued today, Yamaha Motor Corporation U.S.A., Marine Group President Phil Dyskow responded to rumors being circulated by some U.S.-based competitors of pending price increases for its outboard engines: "These rumors are merely wishful thinking on the part of some competitors desperately trying to sell two-stroke outboards in the face of continued growth in demand for four-stroke engines that they do not produce. In fact, Yamaha has no intention of raising the prices of its outboard engines significantly in the U.S. market or to harm the competitive positions of its customers in any way." The rumors claim dumping margins will cause Japanese manufacturers to raise prices in the U.S. However, the U.S. Department of Commerce (DOC) has not even made its preliminary determination. If the DOC properly takes into account the differences between the U.S. and Japanese markets, the margins of dumping will be small or non-existent. If they do not, petitioners still must prove that the imports from Japan are causing injury to the domestic producers. As has been stated previously, Japanese outboard engines, and Yamaha's in particular, are not underselling their U.S. competition. In addition, the U.S. manufacturers are large beneficiaries of imports because they import four-stroke power heads and engines. In addressing its possible response if dumping margins are found, Yamaha stated: "The dumping margin calculation is a very complex formula. It takes many factors into consideration. If dumping margins are determined, it may cause a change in how outboards are distributed in Japan. The Japan outboard market is very small and structured very differently from the U.S. market, with virtually no high-volume dealers and no sales to OEM boatbuilders, the two channels of distribution which dominate in the U.S. market. Thus, if margins are determined it will be because of this fundamental difference between Japanese and U.S. markets. These margins can and will be eliminated by changes in the pricing in Japan and not by price increases in the U.S. market." Yamaha's statement concluded with the following reassurance to its customers: "Our valuable customers throughout the United States can be assured that Yamaha has no intention of making a major price adjustment for its outboard motors as a result of the antidumping investigation, regardless of the outcome. Yamaha will continue to market its outboards based on superior technology and performance, not by underselling its competitors. However, we will not allow rumors and wishful thinking by those competitors to mislead our customers and to disrupt our business. Put simply, the rumors of significant price increases by Yamaha in the U.S. market are wrong."