Yamaha Acquires Stake in KYB’s Motorcycle Suspension Business

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KYB is separating its motorcycle suspension business from its other operations, and forming a new company with Yamaha. The two companies will form a joint venture to be known as KYB Motorcycle Suspension Co., Ltd., offering motorcycle suspension components to OEMs including Yamaha.

Yamaha will acquire a 33.4% stake in KYB Motorcycle Suspension Co. with KYB retaining the other 66.6%. The change will tentatively come into effect on July 1, 2013. By combining resources, Yamaha hopes to reduce expenses and improve development. Yamaha targets cost reductions of 90 billion yen (US$964 million) in 2015.

The new joint venture will be headquartered in Japan but will also include KYB’s recently formed operations in India which has a planned production volume of 285,000 units in 2014 but will have a projected production of 1.6 million by 2018.

The moves fit into Yamaha’s “New Medium-Term Management Plan” for aggressive growth from 2013 to 2015.

[Source: Yamaha]

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