FOND DU LAC, Wis. – Yamaha’s plans to “significantly” raise the prices of several of the powerheads it currently supplies to Mercury Marine will violate the contract between the two engine companies, Mercury Marine Director of Communications Steve Fleming said in an interview yesterday.
“We have a contractual agreement with Yamaha that we expect them to honor,” he explained. “A threat of a price increase violates that contract.”
However, Mercury isn’t discussing the consequences of such a breach of contract.
“If Yamaha does indeed violate our contract, we will communicate with Yamaha directly and will not announce our intentions publicly or through the media,” said Fleming.
In fact, Fleming said Yamaha’s statement to the media about the price increase is another violation of the contract – in this case, its confidentiality clause.