Yamaha Sales Slumping

 


While we have discussed the trials and tribulations of the Motor
Company's sales figures many times, I don't recall reading much about
other manufacturers.

I stumbled across this article in another forum and found it
interesting Yamaha has not been immune to the economic downturn in
many parts of the world.

Now that said they do single out the Liners, which are in my opinion
too Jetson like for my taste, and the Royal Stars as the main culprits
responsible for reduced sales. Blaming that on the economy might be a
stretch. Like I said the Liners require a unique taste in bike styles
and Yamaha has let the Royal Stars stagnate with virtually no changes
since 2000 for the Venture and since it's inception for the Tour
Deluxe.

It's one thing to stick with a bullet proof design that offers the
curb appeal, but to deliver the Venture with a cassette deck and both
of them with carbs is just putting their heads in the sand and
ignoring the basic improvements Yamaha riders have screamed for, for
years.

Anyway, if I haven't already bored you to death, the following article
is an interesting read.


*********************************************
Yamaha Motor Cuts Profit Forecast, Slashes Motorcycle Output

By Kiyori Ueno and Tetsuya Komatsu
Enlarge Image/Details

July 31 (Bloomberg) -- Yamaha Motor Co., the world's second-largest
motorcycle maker, cut its profit forecast and is reducing domestic
motorcycle production 20 percent as demand slumps. The shares fell the
most in five months.

Yamaha lowered its net income forecast 23 percent because of ``the
worsening financial crisis in the United States,'' it said in a
statement today. Sales will be 6 percent lower than initially
forecast.

The Iwata City, Japan-based company expects its first decline in
operating profit in eight years after U.S. sales of Royal Star Venture
and Roadliner motorcycles dropped 22 percent in the first half.
Gasoline prices of more than $4 a gallon and the lowest consumer
confidence in 16 years has eroded U.S. demand for the $17,000 bikes.

``Yamaha is taking a severe hit from the economic downturn in the
U.S.,'' said Koji Endo, a senior analyst at Credit Suisse Group in
Tokyo, who rates the company ``neutral''. ``Demand for big touring
motorcycles and boats is drying up.''

Yamaha fell as much as 9.7 percent to 1,761 yen after the earnings
announcement, and traded at 1,836 yen as of 1:47 p.m. on the Tokyo
Stock Exchange today.

The company reduced its forecast to 45 billion yen ($416.8 million)
from an earlier prediction of 59 billion yen. It lowered its operating
profit forecast 24 percent to 78 billion yen. Sales will be 1.72
trillion yen, 6 percent lower than the initial forecast.

Net income in the second quarter plunged 85 percent to 3.6 billion
yen, according to Bloomberg calculations. Sales dropped 4.2 percent in
the period.

Motorcycle Sales

Motorcycle sales in Japan dropped 23 percent in the first half. In
Europe, sales fell 12 percent. The company will cut production of
motorcycles for Europe, according to spokesman Takashi Kitagawa. In
Asia, excluding Japan, sales gained 27 percent. That failed to boost
earnings as the smaller bikes the company sells in Indonesia and
Vietnam have lower profit margins.

The company said it will cut motorcycle production 20 percent compared
with a year ago in response to the slow-down. The output cut will
erode operating profit by 10 billion yen this year.

Yamaha also cut capital expenditure for this year to 91.2 billion from
its initial plan of 102.3 billion yen.

``There's no end in sight to the severe conditions,'' said Kozo
Shinozaki, the company's general manager of finance and accounting.

Yamaha expects sales growth in Southeast Asia to slow due to higher
fuel prices. Indonesia raised fuel prices by more than 25 percent in
May, the first increase in almost three years. Vietnam on July 21
raised the retail price of the most commonly used grade of gasoline in
the country by 31 percent to reduce the burden of government subsidies
paid to fuel retailers.

Earnings also fell because of a stronger yen against the dollar and
the euro. The stronger currency cut 15 billion yen in operating profit
in the first half. ha
  

--
See Ya On The Road


2000 Yamaha Venture Millennium
2004 HD Road King

Life is not measured by the number of breaths we take,
but by the moments that take our breath away.

 

On Jul 31, 10:53 pm, Calgary

In fact, MCN did a recent projection for the sale of all 2008
manufacturers and Harley sales were only going to be down less than 1%
from last year.  Given that they hold the largest percentage of the
market at ~30% I'd say they are holding their own.  Yamaha, with ~15%
market share, is going be down ~5.3%.  From the 22% haircut they're
taking on their ginormous croozers I guess it's a good thing they make
scooters too.


Good points save the economy thing.  In Canada, rich with oil revenue,
I realize you can't see the economic toll 8 years of right wing facist
gubament has produced, but trust me, things are tighter here down in
the lower 48.

Just yesterday Alan Greenspan noted that the US was still likely
headed for a recession and the markets tanked.  Interesting that an
economist is can see the writing on the wall.  All this "bailing out"
of overpaid banking con artists is doing nothing but biding time to
our eventual financial collapse...except perhaps making it worse.

I used to have a riding buddy who opened his own business and borrowed
millions of dollars for that and a new mansion.  His philosophy was
that if he went belly up, he was taking a bank with him.  He would
have fit right in on Capitol Hill.

 



Working at the H-D dealer I get to see up close what the differences are.
The Yamahas can generally outperform the Harleys with both in stock form.
Likewise most of the others.
What they can't seem to do is gauge consumer interest in design.
I think the main reason the Japanese have failed to wrest the market
share away from H-D has less to do with marketing and more to do with the
consistent Japanese failure to design a simple but elegant bike.

The Venture is a fine bike, more powerful and at least as economic to run
as a Harley but it is also much larger in both size and feel than a
similar Harley.
Likewise the Jetson specials. Lighter and more powerful but again,
everything has to be larger than life with these bikes.
The VN2000 and VTX1800 are absolutely massive as well.
The Japanese manufacturers just have to find a way to capture the look
and feel people want. Polaris has managed it to some extent although the
Vision lookes more like a pimped out Roadliner than anything else.
The trick is to put the parts together into a cohesive package that is
still a manageable size.
Harley are masters at this and then along with their ability to promote
the bike, the accessories, clothing and "lifestyle" they have a winning
formula.

The Yamahas, and even more so the Kaws and Suzis and Hondas, don't seem
to be quite as custom friendly. The Star parts are expensive and from the
dealers I have seen, not usually well stocked or displayed or even
promoted. We joke at work that the bike is a downpayment on the
accessories but I'll bet H-D makes more off the sale of add-ons than they
do on the bikes. The margin for the dealers is better too.

Until moving from a J bike to an H-D is no longer seen as a step up they
will continue to struggle.
It shouldn't be that difficult.
The Japanese already know how to get power from a stock motor better than
Harley.

--
Bob Mann

Cap'n, ah need moor pow'r.

 


<snip>

<snip>

Rayvan described it well, a few years back.  Styling-wise, Japanese
bikes are bit like caricatures.  People like a big bike, so they make
it even bigger.  They like a big seat, so they make one 3' friggin'
wide.  Like big fenders, so they make huge ones.  They like flowing
lines, so they don't stop until it looks like it came out of the
Jetsons cartoon.  Like the big tank look, make that huge.  People seem
to like big front tires?  Make 'em even wider.  All the aspects they
have identified as attractive to the consumer, just exaggerated.

 



<snip>

<snip>

Rayvan described it well, a few years back.  Styling-wise, Japanese
bikes are bit like caricatures.  People like a big bike, so they make
it even bigger.  They like a big seat, so they make one 3' friggin'
wide.  Like big fenders, so they make huge ones.  They like flowing
lines, so they don't stop until it looks like it came out of the
Jetsons cartoon.  Like the big tank look, make that huge.  People seem
to like big front tires?  Make 'em even wider.  All the aspects they
have identified as attractive to the consumer, just exaggerated.


I kinda liked that new fangled Raider they came out with. At least
they're trying.

...unlike Honda.