Yamaha Motor Co., Ltd. (the “Company”) and its consolidated subsidiaries, Yamaha Motor Powered Products Co., Ltd. and Yamaha Motor Marketing Japan Co., Ltd. adopted the following resolutions at their respective Board of Directors meetings, held on September 22, 2006.
(i) The Company will undertake a divestiture of its multi-purpose engine business -- centering on generators -- to Yamaha Motor Powered Products Co., Ltd.
(ii) The Company will consummate a merger (the “Merger”) with Yamaha Motor Marketing Japan Co., Ltd. On completion of the Merger, Yamaha Motor Co., Ltd. will be the surviving company.
Both actions are planned to take effect on January 1, 2007. Details are provided below.
Ahead of the Merger, Yamaha Motor Marketing Japan has also resolved to divest its sales business for motorcycles and other land vehicles to newly established subsidiary YMSJ Co., Ltd.; its sales business for multi-purpose engines centering on generators to Yamaha Motor Powered Products Co., Ltd.; and its sales business for mobile phones to YS Co., Ltd. -- a consolidated subsidiary of the Company. All of the transfers are scheduled to take effect on January 1, 2007. Through these divestitures, the Company will take over the sales business for marine products (centering on boats and outboard motors) and golf cars.
The Merger and related divestures involving the Company and its subsidiaries will reform their functions, promoting business-specific sales strategies to meet intensifying competition and changing business conditions in Japan. With this restructuring effort, the Yamaha Motor Group aims to hone its competitive edge in each business.
Details concerning the new arrangement of sales systems in Japan after the divestitures and the Merger will be announced when the business plans for the fiscal year ending December 31, 2007 are formulated.