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MORE MONEY FROM BIKES FOR YAMAHA

Yamaha aims to double the operating profit margin of its core motorcycle business to ten per cent by the end of 2018, explained the company’s chief executive Hiroyuki Yanagi in a recent press briefing. This compares with a previous target of 7.5 per cent by 2017, set two years ago. The motorcycle sector will then be responsible for half of all operating income, up from 26 per cent in 2014.

To facilitate this, Yanagi said that he anticipates bike production costs to drop by 20 per cent, owing to an increasing number of common platforms sharing more components. The brand’s motorcycle activities in developed markets — primarily Europe and the USA — are also on course for a return to profitability this year, after repeated losses for the past eight years.

“We will shift the pivot of our motorcycle business profit increase to developed markets,” Yanagi added. “By the end of the next mid-term plan, we should be able to reach a five per cent operating margin in developed markets.”

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