Yamaha Motor has dumped Jianshe, its long-term bike production affiliate in China, and established a new joint-venture partnership with rapidly-growing Chinese motorcycle manufacturer CFMoto.
Defining loss of this relationship, the Chongqing Jianshe Mechanical and Electric parent has been obliged to transfer its stake in Zhuzhou Jianshe Yamaha Motor to Zhejiang CFMoto Power, thus creating a fresh JV business subsidiary – Zhuzhou CF Yamaha Motor. CFMoto will hold a 50% tranche of the new business’s equity and Yamaha 44.23%. The remaining 5.77% is attributed to Tair Yea, a Hong Kong company likely to be responsible for associated exports.
Operational production details have yet to be released but are expected to centre on CFMoto’s extensive facilities in Hangzhou, where it recently ramped up large-scale JV involvement with KTM parent Pierer Mobility and has a workforce of more than 4500. A further 500 employees are reportedly required for the Yamaha commitment.
Together with Jianshe, formerly a state-owned manufacturer of military firearms for the Chinese Peoples Liberation Army before moving into motorcycles, Yamaha had been making branded small-displacement machines up to 150cc at Chongqing since 1992, churning out around five million units in the intervening 30-plus years. British and European dealers will be particularly familiar with ubiquitous Jianshe-sourced Yamaha YBR125 model derivatives from 2005 onwards.
Yamaha claims to have positioned China as one of its most important production and sales bases and says it will continue to discuss the direction of the joint venture with CFMoto going forward. However, fruition will be contingent on acquiring the clearances and permits required by Chinese competition laws and regulations.