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Implementing Structural Reform for Sales Operations in Japan Yamaha Motor Marketing Japan Given Completely Autonomy in a Drive to Enhance Sales Operations in Japan

October 19, 2001

Yamaha Motor CO., Ltd. (YMC) will reorganize its sales subsidiary, Yamaha Motor Marketing Japan Co., Ltd. (YMMJ), making it completely autonomous in the sales area, while providing financial and management support. With the reorganization, YMMJ strengthens its domestic sales capabilities by streamlining the decision-making process and building on its expertise and originality.

While continuing to function as the manufacturer's sales subsidiary, YMMJ will take several measures to establish its independence and, in turn, expand sales. YMMJ intends to:
1) Develop product procurement from sources other than Yamaha
2) Expand used motorcycle and marine product sales
3) Develop IT-related business, and other new business opportunities
YMC will increase the capital of YMMJ, ensuring the financial independence necessary for YMMJ to realize its objectives. In addition, YMC will take a number of further steps designed to grant management autonomy to YMMJ and transform the subsidiary into an optimum sales organization. In the process:
1) YMMJ will be solely responsible for employment decisions in the domestic sales sector.
2) YMMJ will create its own employee work regulations and personnel management system, in order to establish the most suitable and innovative human resources environment.
3) YMMJ will conduct all its own employment and employee training.
4) New sections to handle corporate functions such as personnel management, advertising and legal affairs will be established within YMMJ.

YMC will place YMMJ in the position of supervising all domestic sales operations, with control over the five other domestic sales subsidiaries scheduled to be consolidated by April 2002. YMC also intends to set up a Japan Headquarters during FY 2002, with YMMJ as its core. The new regional head offices complete the YMC plan for a tripartite global headquarters operation, together with the European Headquarters and the American Headquarters.

The companies to be placed under YMMJ control are Y's Gear Co., Ltd., a sales company for motorcycle parts and accessories, Y's Marine Co., Ltd., a marine-related products sales company, Maricom Tokai Co., Ltd., and J.O.B. Co., Ltd., both involved in the management of marina facilities and marine-related goods, and the Japan Boating Safety Association Inc., a company for boat license-related business operations. This new consolidated organization with YMMJ at its core will have a total of 1,190 employees, and will aim to achieve consolidated sales of 150 billion@yen and consolidated ordinary income of 7.5 billion yen by FY 2006.
YMC proposed today to the labor union that all the employees sent to the domestic sales subsidiaries be transferred to YMMJ and move onto its payroll on April 1, 2002. YMC will continue to discuss the matter with the labor union in good faith until an agreement is reached.

YMC originally integrated five domestic regional sales companies into YMMJ in April 1998 to make clear the consolidated domestic sales company's responsibility and authority. Consequently, YMC was able to establish a slimmer, more profitable management foundation characterized by speedier decision-making, capable of managing the whole nation as a single market.

Nevertheless, the domestic market remains stagnant. Thus, further business restructuring and reform will be required to revitalize the market. Through this round of structural reform, YMC aims to promote still more consolidated management in the domestic sales sector, while consistently developing human resources, and thus achieve sustained domestic sales growth with stable management over the medium and long term.



Yamaha Motor Marketing Japan Co., Ltd.


2000-1, Iwai, Iwata-Shi, Shizuoka Prefecture, Japan


July 7, 1958
(April 1, 1998: set up by integrating five domestic sales subsidiaries and domestic sales operations in Yamaha Motor Co., Ltd.)


Mr. Hiroshi Ukon
(Managing Director of Yamaha Motor Co., Ltd., responsible for Corporate Planning Strategy Group)


591 million yen


Wholly-owned subsidiary of Yamaha Motor Co., Ltd.


Sales and after-sales service for motorcycles, marine products, electro-hybrid bicycles, parts, and other merchandise

Business locations:

Sales offices: 21, Service centers: 13, Parts centers: 4,Total 38

Number of employees:


Business results:

Sales:107.4 billion yen


Ordinary income: 400 million yen

(FY 2000:End of March 2001)

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