Yamaha raises price of powerheads sold to Brunswick

KENNESAW, Ga. — Yamaha Motor Co., Ltd. will soon significantly raise the prices of the F75, F90 and F115 four-stroke powerheads for outboard motors that it sells to Brunswick Corp. (NYSE:BC), the outboard manufacturer reported in a statement today. The amount of the increase is not being released.

“These price increases are part of Yamaha’s on-going efforts to restructure its prices in Japan and the United States to meet the requirements of the current business climate,” said Phil Dyskow, president of the Marine Group of Yamaha Motor Corp., U.S.A. “Yamaha is required to increase these prices in order to protect its commercial position in the United States.”

Dyskow denied that that company was raising the prices of Yamaha brand outboard motors sold to customers in the United States.

“This increase only applies to the sale of the specified powerheads to Brunswick,” he stated.

Yamaha’s agreement with Brunswick to supply it with mid-range powerheads will be terminated as of March 2006.

Brunswick’s demand for Yamaha powerheads up?

Despite Brunswick’s launch of its own Verado line of four strokes earlier this year, Dyskow suggested in an interview today that Brunswick’s demand for its mid-range powerheads has only grown this year.

Since the boat building giant filed a petition in January with the U.S. Department of Commerce and the U.S. International Trade Commission asserting that Japanese manufacturers of outboard engines have violated U.S. anti-dumping laws, Brunswick has attempted to increase its orders of four-stroke mid-range powerheads from Yamaha, Dyskow claimed.

In fact, he stated that Brunswick has “attempted to extend the terms of the mid-range four-stroke powerhead agreement with Yamaha;” “ordered additional versions of the mid-range four-stroke powerheads that it previously had declined to order, such as EFI; and “ordered additional F225 outboards after previously requesting that the F225 contract be terminated.”

“From that, people can draw their own conclusions,” Dyskow said.

When asked whether Brunswick anticipated when it filed its petition with the ITC that the price of Yamaha’s powerheads would increase, Dyskow said he didn’t know.

Mercury Marine, a division of Brunswick Corp., was unavailable for comment in time for this release.

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— Liz Walz

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