June 24, 2004 -- KENNESAW, Ga., - In a statement issued today, Yamaha Motor Corporation U.S.A., Marine Group President Phil Dyskow denied rumors allegedly being circulated by "U.S.-based competitors," of pending price increases for its outboard engines.
"These rumors are merely wishful thinking on the part of some competitors desperately trying to sell two-stroke outboards in the face of continued growth in demand for four-stroke engines that they do not produce," Dyskow said in his statement. "In fact, Yamaha has no intention of raising the prices of its outboard engines significantly in the U.S. market or to harm the competitive positions of its customers in any way."
The release said the rumors claim dumping margins will cause Japanese manufacturers to raise prices in the U.S., however, Yamaha notes the U.S. Department of Commerce has not made its preliminary determination on the dumping issue.
"The dumping margin calculation is a very complex formula," Yamaha stated in its release. "It takes many factors into consideration. If dumping margins are determined, it may cause a change in how outboards are distributed in Japan. The Japan outboard market is very small and structured very differently from the U.S. market, with virtually no high-volume dealers and no sales to OEM boatbuilders, the two channels of distribution, which dominate in the U.S. market. Thus, if margins are determined, it will be because of this fundamental difference between Japanese and U.S. markets. These margins can and will be eliminated by changes in the pricing in Japan and not by price increases in the U.S. market."
Yamaha continues to deny the allegation that Japanese outboard engines, and Yamaha's in particular, are underselling their U.S. competition. In addition, Dyskow pointed out, the U.S. manufacturers are large beneficiaries of imports because they import four-stroke power heads and engines.
"Our valuable customers throughout the United States can be assured that Yamaha has no intention of making a major price adjustment for its outboard motors as a result of the antidumping investigation, regardless of the outcome," Yamaha said as a conclusion to its statement. "Yamaha will continue to market its outboards based on superior technology and performance, not by underselling its competitors. However, we will not allow rumors and wishful thinking by those competitors to mislead our customers and to disrupt our business. Put simply, the rumors of significant price increases by Yamaha in the U.S. market are wrong."