Globalizing the Yamaha Motor Group's Engineering, Manufacturing and Marketing Functions

A global strategy for integrated development centers and procurement centers

February 16, 2012 – (Motor Sports Newswire) – Yamaha Motor Co., Ltd. announces the establishment and start of operations of the ASEAN Integrated Development Center and the India Procurement Center as strategic moves aimed at globalizing the group’s engineering, manufacturing and marketing functions.

Despite the difficult business environment created by factors such as the rapid appreciation of the yen and the economic crisis in Europe, Yamaha Motor is currently moving forward with initiatives aimed at growing and expanding the scale of our businesses and improving profitability by focusing on strengthening the competitiveness of group operations on a global level. In the short term, this involves continued reduction of costs, while the medium-term focus is primarily on maintaining production capacity and long-term efforts are directed at globalizing the functions of our business operations.

Particularly in the areas of engineering, manufacturing and marketing functions, initiatives are in place to further globalize not only the group’s manufacturing network but also product development and procurement functions.

Product Development Functions

The long-term objectives in the area of product development are to have Yamaha Motor Co., Ltd. (YMC) in Japan be responsible for the strategic and fundamental technological development of core technologies and advanced technologies vital for future growth, while the group’s overseas bases in the key markets take on the work of actual product development for their markets. The new ASEAN Integrated Development Center scheduled to begin operations this spring is an embodiment of this strategy. Its role will be to serve as an “on-the-scene” model development base that integrates manufacturing, procurement and engineering functions in order to develop competitive products that answer the needs of the market’s users. Going forward, the role of this new Center will be expanded in the ASEAN region, while similar integrated development centers will be put into operation in China and Taiwan as well.

The ASEAN Integrated Development Center will strengthen the motorcycle development and parts procurement functions currently performed by group company Yamaha Motor Asian Center Co., Ltd. (YMAC) in Thailand, and will operate as a model development center integrating manufacturing, procurement and engineering functions, as well as manufacturing technology functions

Procurement Functions

In the area of procurement, initiatives are underway to prepare a number of regional procurement bases to make use of cost-competitive locally produced parts globally throughout the Yamaha Motor group with the aim of reducing costs for all operation segments. In January, the new India Procurement Center went into operation, joining the already functioning procurement operations at YMAC in Thailand, Yamaha Motor Commercial Trading Shanghai Co., Ltd. (YMCT) in China and Yamaha Motor Taiwan Trading Co., Ltd. (YMTT) in Taiwan. Strengthening procurement functions in this way at four bases, in the ASEAN region, China/Taiwan, India and Japan, will create a global parts supply network capable of providing cost-competitive parts to the group manufacturing bases around the world, including Japan.

The new India Procurement Center was established separate from the existing procurement division of Yamaha Motor group motorcycle manufacturing and marketing company India Yamaha Motor Pvt. Ltd. (IYM), and will perform parts procurement (supply) to countries and regions outside of India.

Currently, the global motorcycle market has a total demand of approximately 60 million units (YMC survey result) and is expected to continue to grow to a scale of 80 million units by the year 2020. Amid intensifying global competition, diversifying customer preferences and increasingly stringent motor vehicle regulations, Yamaha Motor will continue to make effective use of its global corporate assets to grow our business operations and ensure stable profitability for the global Yamaha Motor group.

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