yamaha motor to sell off 5 to toyota
Amsnow
Edwina Gibbs of Reuters news service reports that Toyota Motor Corp will buy five percent of Yamaha Motor Co., the world's second largest motorcycle maker and manufacturer of Yamaha snowmobiles.
Toyota President Fujio Cho told a news conference that the companies would be cooperating in engine development, motor sports and boats.
The world's third largest automaker, Toyota, views Yamaha Motor as a company with strong technical prowess, experience in F1 racing and marine products.
According to the Reuters report, stock analysts expect both firms to benefit, with Toyota -which hopes to enter Formula One racing for the first time in 2001- able to tap into Yamaha's eight years of Formula One experience and Yamaha able to draw on Toyota cash.
Reuters quotes Stephen Usher, auto analyst at Jardine Fleming Securities, as expecting Yamaha to be the main beneficiary in this venture with a deep pockets partner like Toyota.'
Access to Toyota's global distribution network could make Yamaha more competitive against archrival Honda Motor Co, the world's biggest motorcyle manufacturer, he said.
Yamaha and Toyota have worked together off-and-on since the mid-1960s when the two jointly developed the Toyota 2000 GT sports car -- a legendary vehicle for Japanese motor sport fans.
Currently Yamaha supplies engines to Toyota for vehicles such as its Altezza sports car, with 55,000 sold to the auto giant last year.