CYPRESS, Calif. 2/4/2005 - Yamaha Motor Co., Ltd. settled its lawsuit today with Brunswick Corp. over the sale of Yamaha-manufactured 75 - 115 horsepower four-stroke powerheads to Brunswick. Yamaha will continue to manufacture these powerheads in the existing quantities and prices specified under their agreement until it expires in March, 2006. After that time, Yamaha will no longer build or supply these powerheads to Brunswick. Brunswick Corp. v. Yamaha Motor Co., Ltd., No. 04-C-854 (E.D. Wis.)
The dispute arose after Brunswick initiated a dumping investigation and included these 75 - 115 horsepower four-stroke powerheads in its dumping complaint. Yamaha agreed to continue to sell these powerheads to Brunswick only if Brunswick either excluded these powerheads from the dumping investigation or agreed to pay higher (non-dumped) prices for them. Brunswick filed suit in Wisconsin federal court Sept. 7, 2004, demanding that Yamaha continue selling at the price Brunswick said in its dumping complaint was an unlawful dumped price. The lawsuit resulted in a concurrent arbitration proceeding as well.
In November, 2004, despite having gone to federal court and defended its inclusion of the powerheads in the dumping complaint before that court, Brunswick withdrew the United States specification powerheads being made for Brunswick by Yamaha from the dumping investigation; and on Dec. 28, 2004, the Department of Commerce accepted this withdrawal in its final margin calculation.
On Feb. 2, 2005, the U.S. International Trade Commission ruled in Yamaha's favor and announced a negative decision in its final phase anti-dumping investigation concerning outboard engines from Japan. "Yamaha has consistently stated that from the day that Brunswick filed its complaint that there wasn't any dumping," stated Phil Dyskow, president of the Marine Group of Yamaha Motor Corporation, U.S.A. "We appreciate the fact the ITC investigated the facts, listened to our arguments and voted in favor of our position."
"This entire litigation could have been avoided," explained Russell D. Jura, general counsel of Yamaha Motor Corporation, U.S.A., "By not following prudent business practices, Brunswick precipitated the expenditure of excessively large legal fees and costs for both parties for no reason whatsoever.
"Brunswick's last-minute withdrawal of these powerheads from the dumping investigation and the final ITC ruling is a complete vindication of Yamaha's position," continued Jura. "The American public and Yamaha have won and Brunswick has lost. Now, we can put this matter behind us and invest our time and resources into better serving our customers and the boating public."