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The Kneeslider

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Yamaha Slows 2009 Motorcycle Production

By Paul Crowe

Yamaha cuts 2009 motorcycle productionYamaha is looking at rising inventories of unsold motorcycles and has decided to cut 2009 production by 24 percent. This year’s production will be only about 260,000 units to adjust for the current backlog. Motorcycle stockpiles bound for Europe are twice normal levels while motorcycle inventories for the U.S. are up 50 percent.

Yamaha has already decided to shut its main assembly plant in Shizuoka Prefecture and the parts plants that feed it for 10 days in February and March to reduce output by 13,000 motorcycles, and it plans to negotiate with labor unions for more work stoppages in the second calendar quarter of 2009.

If you’re looking for a new Yamaha, this is an opportunity to get a great deal. Stop by your local dealer and make an offer. You might be very pleasantly surprised.

Link: Reuters

Posted on February 26, 2009 Filed Under: Economics and Politics, Motorcycle Business

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Comments

  1. Ronin Cycle says

    February 26, 2009 at 5:09 pm

    I think that even though we can get great deal on new bike many bikers will choose to update there current bike. I think that it is more likely that repair and accessories shops will be feeling the benefits of the economic downturn.

  2. Jeff Banks says

    February 26, 2009 at 8:07 pm

    No surprise here. I like standards/funtional bikes and commute to work on my little dual sport. Probably a lot of people doing that nowadays, I know that the motorcycle parking area has been slowly filling up with more bikes and scooters (a good thing!)

    They don’t have too many good beginner bikes to rope people in to the brand. Their WR250 dual sport costs the same as Suzuki’s excellent DR-Z400 or DR650. Different class of bikes, definately, but I don’t know too many people who will throw down almost 7 grand for a 250. Plus the smallest Yamaha sports bike is a 600cc liquid-cooled rocket. Too expensive for a 1st bike.

  3. Azzy says

    February 27, 2009 at 12:09 am

    Lets not forget that the boom that started last year from high gas prices will probably result with lots of used bikes this year. Some people might go that route just to avoid yet another registration / inspection / insurance bill.

  4. todd says

    February 27, 2009 at 1:59 am

    I don’t know, the new FZ6R is also 7 grand (wow, their 600 competes head to head with their 250!). That’s a fair chunk of change, especially when you can get good used bikes all day for under $2000.

    -todd

  5. kneeslider says

    February 27, 2009 at 9:57 am

    Motorcycle companies are in an almost impossible situation, a recession underscores a critical and obvious but, often unmentioned, characteristic of motorcycles, no one needs a motorcycle no matter how much they want one. People will always find the money to buy what they need, but wants can be put off indefinitely.

    Selling off the motorcycle backlog means lowering prices until they’re sold, the “market clearing” price. Will dealers or companies do that? They’ll take a loss if they do or sit on inventory if they don’t.

    The government is drastically distorting the market for everything right now and the rules change almost every day. Any company trying to make long range plans or trying to adjust their product mix may just as well throw darts at a board. The government needs to STOP doing things! Until it does, stories like this one will continue.

  6. JC says

    February 27, 2009 at 9:46 am

    What do they have to do to keep production/profits high?

    $4 gas sold lots of scooters, but gas is relatively cheap now.

    A new Kawasaki Ninja 500 is cheaper than a lot of used 600cc sport bikes, and is still a fun bike to ride even for experienced riders.

    Is inexpensive the key to high profits? Only if there is enough profit or enough volume in the sales.

  7. Jeff Bakee says

    February 27, 2009 at 11:09 am

    I have been shopping since i sold my last R1 back in April. I just bought a brand new 2007 R1 on Saturday for $8,995 plus tax and license, that was it! So deals are to be had, go and buy!

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