Yamaha Posts Half-Year Net Loss

[wheatonFJR]

[SIZE=18pt]For sale 2005 FJR. Best year FeeJ made![/SIZE]Cool farkles.

Custom Retro Stripe.

Collectors item!

$19K FIRM!

You edited your post. And here I was about ready to write you a check for $15k....

I need $19K to buy a K1300GT. :dribble:

Does that include 2 spare final drives? You know...just in case.

 

[TheBlueStreak]

I think the FJR will continue without much of a change in 2010. I feel this way since it still keeps up for the most part, with the other ST options.

Take a look at the comparo: https://www.motorcycle.com/shoot-outs/2009-...tout-88641.html

In this comparo, they felt the BMW won but they also go to say that all the bikes are good, it just depends what you are looking for in your STer.

Maybe GEN III is 2 or 3 years!!!

Rob

 

[user 213]

When I spoke to a Yamaha dealer in Moscow, (ID) he confirmed that the dealer meetings are next month, (Sept), and also mentioned that they were not having large regional meetings this year, but smaller meetings of perhaps just each state dealers with a Yamaha rep. His expectation was that much of the dirt bike line was going to be cut for 2010, but he didn't expect the street line to change a lot. Partly due to the strong sales of the Star line.

FWIW, I wouldn't mind seeing the FJR return to a PDP sales plan in the US. I'd still like to see color options, but with the PDP dealers sold every bike unless they chose to risk ordering one on spec and used prices were generally better/higher. Typically it seems as though the FJR is not an impulse buy, though Star products might be.

 

[happyPuppy]

I suspect it will be around. They are planning on the V-Max still being in the line-up next year and they had to dump a ton into the R&D. I suspect to see consolidation in the STAR line, perhaps another scooter to replace the aging Majesty. Look at BMW's numbers they are not bad for a premium product line. if they cut the FJR they will not have a ST other than a cruiser that everyone makes and is not selling. If they focus on the low end profit goes out the window. The take away lesson I think is they have to focus on the most profitable lines, and not just selling as many bikes possible.

The mean age of a ride in the USA is 41. Are they really looking for a DS or another cruiser? I do not think so, I believe the market to tap is the ex SB riders that are older and looking for comfort as well as nearly the same performance, but they are turned off by the GW, Vision type bikes.

 

[08FJR4ME]

My thoughts are the motorcycle industry is going in the same direction as the car company's. There will be a lot of down sizing and certains lines being dropped. Now if we can only get 3K to turn in our clunker FJR's sales will go through the roof. I was at my dealer last week and his showroom was half empty and i have allways seen it chuck full with bikes untill now. I think the other fallout from all this will be loosing 25% of our dealers if it hasn't started allready.

JMO

BTW: I aint never selling my FeeeeeeeJ!!!!

 

[Pepperell]

Step into the wayback machine, Sherman.

Or "why is my750 now a 700?"

I think they'll do what the Japenese do best

....Dumping.

Expect prices to go down.

Mr. Peabody

 

[MCML]

Coporate Income Statments and Balance Sheets are "snapshots in time." Of course, what they don't ever remind us of is that those snapshots are posed....and to a significant extent, airbrushed. It's hard to know what is motivating the folks who present them at any particular time. A new gen FJR depends on the R&D Costs to date- sunk costs. Spent, gone. I suspect the calcs the boys and girls in Mama Yama's back room are doing involve only the marginal cost/revenue of producing the next FJR unit of the current generation and the marginal cost/revenue of producing a gen III. I liked the reference to dumping, too! The marginal cost of producing the next Gen II FJR is pretty damned low....especially after you assign the amortization of the fixed costs to someplace other than North America. I would be very, very, surpirsed to see the line discontinued.

 

[madmike2]

I agree with Eric, the likelihood of ending the production of the FJR isn't very strong. They could continue with this iteration and return to the PDP before worrying about an upgrade. That would take the onus off the dealers and their inventory worries. Then, let the market stabilize as more C-14 hit the magic "mile markers" for major service and more BMW final drives erupt into flames. Besides, there's always the 2010 VFR 1200, available side cases, possible shaft drive, to replace the ST1300......Of course, it wouldn't be your daddy's BMW.

 

[Inlaw1]

With all the baby boomers moving into the Sport Tour market in the coming years to replace the sport bikes they no longer fit as well, I doubt Yamaha will move out of the sport tour market. One look at how well Honda has done with the ST for eons, and knowing they have as good a product, if not better, in that market.... I just don't see Yammee moving out of it.

 

[palerider]

With all the baby boomers moving into the Sport Tour market in the coming years to replace the sport bikes they no longer fit as well, I doubt Yamaha will move out of the sport tour market. One look at how well Honda has done with the ST for eons, and knowing they have as good a product, if not better, in that market.... I just don't see Yammee moving out of it.

We'll know more after some time has passed.

 

[Bounce]

Unfortunatly, I believe you are correct in that statement. I know my local dealer only has 1 FJR that's been sitting in the showroom for awhile now.

we tried to tell all those impulse buyers that the PdP was a good thing. NO RISK to the dealer or to Yamaha. Make as many as they sell. Zero floor costs. Better pricing to the buyers who are willing to shop around.

But NOooOOoOooOooOooOoOOooo. Ya just had to get all touchy feely.

 

[Ignacio]

But NOooOOoOooOooOooOoOOooo. Ya just had to get all touchy feely.

Snerk! :thumbsup:

 

[coyotedude]

"The marginal cost of producing the next Gen II FJR is pretty damned low....especially after you assign the amortization of the fixed costs to someplace other than North America. I would be very, very, surpirsed to see the line discontinued."

Agree w/MCML's comment above..... Also keep in mind that the Japanese production lines are not fixed on

one or two models that are cranked out repeadedly each day. Order input, driven by demand, is what dictates

what gets built daily/weekly. Very fluid and flexible system. The FJR isn't going away; at this point Yamaha

has recouped all fixed costs, and FJRs produced now are of higher margin than any new model. As long as a modest demand remains , why would you discontinue a profitable scenerio? Deferring Gen 3 makes business sense, you slow R&D, cut expenses and tailor your production to demand. Now, if Gen 3 R&D is near or through the finish line, then they might proceed. Frankly, Gen 2 is just fine with me for another couple of years.

 

[charismaticmegafauna]

If the motorcycle industry is anything like the automotive industry, my experience is that R&D costs are an operating cost and the results of such R&D are only as good as the projections of income they will generate.

My thoughts are the motorcycle industry is going in the same direction as the car company's.

True Dat..., same industry (but different...). GM is now selling cars on ebay -- some Yamaha dealers have, already, been doing that (altho, I've heard it's been frowned-upon by MamaYama).

I agree with those that cite the benefits of PDP.

....Despite being 2nd behind BMW for sport-touring sales (according to various industry mags), it's not likely the FJR figures into the volume/profit equation that Yamaha needs right now.

Small potatoes -- according to Dealernews, BMWNA has about 1 1/2 % of the U.S. market (pretty insignificant).

A couple of weeks ago, I was talking to the local Yamaha dealer. He also carries Triumph and KTM. He was closing out all of the pirate stuff, told me he is going to redirect his inventory to Adventure riding and Touring. It was his opinion that segment had the largest growth possibilities. Even with all of the Star products, he was willing to concede to HD in that catagory.

Hopefully he is correct and the FJR will flourish and maybe a new adventure bike from Yamaha.

All-Y'all PNW guys are 'soo sophisticated' -- in the great middle of the country, the only thing that matters is Cruisers...! (and side X side ATVs) Yamaha Cypress has been pushing cruisers for a couple decades, now -- and they're going to prove themselves right (no-matter what the costs -- they're going to beat Harley...). It's sick....

But don't look for a 'sea-change' in Americana/Nostalgia/Pirate-Idolitry....anytime soom....

 

[Moon Man]

I am just waiting for RadioHowie to chime in about the the GenIII CCT...

Howie where are ya?

 

[turbodave_98]

Some of the bottom line questions in most large corporations related to continuation of a product line are as follows, IMHO:

* Is there demand for the product, has volume of sales increased or decreased since its inception?

* Are the fixed and recurring costs per vehicle profitable based upon the demand?

* Are the users satisfied with the product related to quality, life cycle cost,reliability and availability of spare parts/accessories ?

* Is the product superior to the competition?

* Are user country or geographic regions governmental regulations make continuation impractical or can not be met while still making a profit and not losing demand?

Those are some of the issues I would consider if I was a decision maker at Yamaha Corporation.

 

[Stephen]

With all the baby boomers moving into the Sport Tour market in the coming years to replace the sport bikes they no longer fit as well, I doubt Yamaha will move out of the sport tour market. One look at how well Honda has done with the ST for eons, and knowing they have as good a product, if not better, in that market.... I just don't see Yammee moving out of it.

The "Boomer" age is about done.... they're all in their late 50's. Most are Hollywood pirates anyway, if they own a motorcycle. The S-T folks are a very small segment of the total picture.

Speaking of the total social picture.... as the various generations progress through their activity phases, "hobby" or "extracuricular" activity time changes. Some will play video games, some will 4x4, some will ride quads, some will even ride a motorcycle. It appears that people have "less" desire to spend their money on certain activities. Many young folks can't afford them... so some fix up an old pickup and go 4x4ing, or they fix up their car.

I think in the near future we're going to see a new paradym in motorsports spending... at least in the US. I feel sorry for the manufacturers (and the dealers, for that matter). They have to guess "ahead" to what the current generations want or need.

Many of the dealers that I visit have more and more quad-type vehicles in their showroom. They also are starting to include peripheral motorized products like generators, mowers, yard implements, etc. Instead of specializing in just one thing, they can increase their cash flow by expanding their retail offerings.... like an old time general store, as well as offering complete service and repair.

 

[DaJudge]

If we see a GenIII in the next couple of years (IMHO, about a 25% chance), I suspect that it'll be substantially similar to the GenII with just enough changes/improvements to let Yamaha go out and try to cause some buzz in the motorcycling media. B)

 

[jjsC6]

History shows that the older a model becomes, the more sales go down. A friend of mine and I both ride FJR's. We both planned to buy new ones in 09. When they went from black to even more black for 09 with no other changes, we both decided to pass on new ones.

Right now we both plan to buy '10s. But if there are no changes there is a strong chance that I'll either buy a different brand or nothing at all. My friend could be in the nothing at all category.

The bike has been unchanged for too long now and is not keeping up with the C14 or BMW. Heck, if they'd just change the color and add heated grips and a true cruise control as factory equipment or as plug and play accessories, that would be enough to push me over the edge.

 

[Spud]

Add some smokin' deals on C14 Connies right now and, if I was in the market right now, it would be pretty tempting. My local dealer has an '08 demo C14 w/about 250 miles on it for $8900......