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Below please find the first message to Yamaha employees from Mr. Tsuneji Togami in his new role, effective November 1, as President, Chief Executive Officer and Representative Director of Yamaha Motor Co., Ltd. Mr. Togami presents an urgent and direct vision for global Yamaha in his communication to all of us. His vision emphasizes the importance of restructuring Yamaha’s “Product Creation” process to create innovative, attractive future products while operating low cost manufacturing systems, along with reducing other operating expenses in light of lower expected demand.
Of course, in the U.S. Yamaha Group Companies, the manufacturing and engineering functions must devote their efforts to the restructuring of the Product Creation process. However our sales functions must support it strongly as well by proposing products which customers will want, by developing higher value-added sales and marketing activities (such as Pro Yamaha, etc.) and by making further progress in achieving cost effective operations. Also, the YMUS Corporate Divisions should support all of these activities efficiently and effectively. I believe that these combined efforts will help Yamaha greatly in lowering the break-even point of our business and being an excellent company.
As I said in the Quarterly State-of-the-Business Report issued last week, I feel that 2009 will be remembered as one of our most challenging years as a company. In addition, I said that I hoped 2009 will also be remembered as a time when we began to make real and tangible progress.
I want to thank you again for your hard work and valuable contributions to date. Again I ask for your continued efforts to navigate through these great challenges, and for your support to revise our ways of doing business to ensure a return to profitability and future success.
Please join me in extending your full dedication and support to Mr. Togami’s global Yamaha leadership.
Masato Adachi
An Inauguration Message from the New President
My name is Tsuneji Togami. As part of a change in management to address the urgent situation we face, I have been appointed the President, Chief Executive Officer and Representative Director of Yamaha Motor Co., Ltd.
Some of you may wonder why I have returned as the Representative Director after leaving my previous executive position. Above all, the move is necessary because we have to pursue bold, stringent initiatives that can meet the present threat to the Company’s survival.
As the new President of Yamaha Motor, I have to do some things I dread ― things I imagine you will be unhappy to hear. If the Company could navigate through the current crisis without taking such actions, no one would be proposing them. However, we must bear in mind that the Company is experiencing the greatest financial crisis since its founding, and exceptional circumstances demand exceptional measures.
In fiscal 2009, the Company is forecast to register the biggest net loss in its history, totaling approximately 180 billion yen. This would be devastating in itself, but it is made still worse by a business environment that shows no sign of improving next year, or any time in the foreseeable future.
Specifically, (1) the Japanese yen is expected to remain strong against the U.S. dollar, (2) personal consumption in developed economies is not recovering, and (3) excessive market stocks will persist for some time. Sales and production volume in developed economies are unlikely to recover for the next two to three years. While the commuter vehicle business in the ASEAN region holds the fort, our mainstay businesses ― the Motorcycle, Marine Engine and Recreational Vehicle businesses for developed economies will remain sluggish, making their recovery difficult. If the Company had retained enough of its past earnings as reserves, we would have the luxury of observing changes in the environment before deciding whether or not to take restructuring measures, but unfortunately, that is not the case. The situation demands rapid restructuring, which means downsizing our business operations to match our current sales volume. This requires rolling back all our expenses to levels commensurate with current sales.
For instance, if sales in your business sector decreased by 30%, curtailing all expenses by the same 30% would ensure your sector does not generate a loss. I realize this will be very difficult, but I intend to formulate specific plans and present them to you soon.
So far I have been addressing financial restructuring. Next, I would also like to ask your cooperation in restructuring our product creation process. I believe that Yamaha Motor can only survive as a successful manufacturer by supplying superb products, developed and produced with advanced technologies and enthusiasm worthy of the Yamaha brand, as it always has in the past. To this end, we must be more aggressive in developing technologies that fit every aspect of people’s lifestyles. We can maximize our expertise and ingenuity to develop low-cost manufacturing systems, while still creating high-end products that deliver greater satisfaction to customers. I am well aware that the budgets are limited, but we must concentrate our resources on priority areas and strive to quickly create the innovative, attractive products that guarantee a future for Yamaha Motor.
Product creation integrates hardware, software and spirit. It is the very essence of our Company. Although we find ourselves in the midst of a harsh environment, we must never lose our pride as Yamaha Motor personnel. Now is the time to pull together, as we embark on the challenge of creating products that define the Yamaha spirit.
I understand that I am asking a lot, especially so soon after assuming the President’s position. However, I hope and believe that I can count on your wholehearted cooperation and tireless commitment moving forward.
We got a memo like that last year at this time. A month later we all got pay cuts and longer working days. We have had our biggest months this year and they are spending money foolishly on improvments and such to the facility. Anytime anything is said we are told you should be happy you have a job.
For instance, if sales in your business sector decreased by 30%, curtailing all expenses by the same 30% would ensure your sector does not generate a loss.
That's not an entirely correct statement, perhaps something was lost in the translation from Japanese.
Does not sound much different then what Mercury has had to do with their restructuring along with Brunswick their parent.
The whole industry is down, it will stay down for some time until the Obama and Democrats are booted out of office, then it will still take some more time to get things turned around as some hard decisions will have to be made.
That's not an entirely correct statement, perhaps something was lost in the translation from Japanese.
I think it was basically a very oversimplified statement. But I don't see how it could be wrong unless your expenses were already more than your sales. I'm no economist though. Hopefully they will pull out of this, I'm a yammyfan.
It may not seem right but approx 500,000 people per month wish they still had a job and the 15,000,000 total unemployed would like their old job back at a lower wage. Stop pissing and moaning, it could be worse.
We got a memo like that last year at this time. A month later we all got pay cuts and longer working days. We have had our biggest months this year and they are spending money foolishly on improvments and such to the facility. Anytime anything is said we are told you should be happy you have a job.
Same here, I was told the company was in horrible state of affairs in January. I just sat in a meeting today and the directors told me the company is looking at normal profit this year and a steady income for the next.
Great, so where is my money that they cut?!?!?
Employers are using this downturn to take advatage of its workers. It is not right and can only last for so long.
If you are in business, all you can do is confront this economy head on, and make very difficult decisions when they must be made....if you procrastinate, you lose, if you paint blue sky for your employees and dealers, it will just turn around and bite you later....best to hit it head on, for that, I give kudos....it sounds like this guy knows what he/yamaha is up against, and that he has the intestinal fortitude to do the right thing for the company. I am a business owner, 16 months ago I had 32 employees, today I have 13....my office has relocated, my expenses have been slashed by over 50%....I just got word today that one of my major product lines is being consolidated.....make no mistake, this recession is not over by a long shot.....for those that bashed BRP and Brunswick a few months ago..for credit issues..shame on you, I said all manufacturers would be in trouble, this is a worldwide severe recession, the only good news I've heard in the last 6 months has been just recently from ford motor company.
I would say your warranties are still safe, there was no mention of anytype of protective restructuring...they are at least as safe as all of those from any other boat motor manufacturer right now. Good luck to all in the boating industry, it is going to be a very very rough 2-3 years.......
Same here, I was told the company was in horrible state of affairs in January. I just sat in a meeting today and the directors told me the company is looking at normal profit this year and a steady income for the next.
Great, so where is my money that they cut?!?!?
Employers are using this downturn to take advatage of its workers. It is not right and can only last for so long.
Employers are not using this to take advantage, they are trying to get cash back into the banks from their losses, keep in mind, there are no credit lines available and the economy is not improving at all....the large, fortune 500 companies may be taking advantage of employees, but your smaller companies are doing no such thing.....most of my customers are struggling to survive, and are very unsure of the future...Which may be loaded with taxes and anti business policies....CHANGE...
Not directed at anyone in particular, but if most companies did not cut expenses in the last year, there would be no need to have any employees.
Great thing about America, if you don't like how much you are getting paid to do a job, there are always options to change this that are in the employee's control.
1) demand a raise because you have earned it and can not be replaced for the same or less amount and your position is essential
2) Get another job that pays more
3) start your own business and get rich on the backs of other workers that you can under pay while getting rich off the profits of their efforts
4) quit and let the government take care of you
If a company now has "normal profits" this year, that is a well run company, because unless governement contracts are involved, gross sales are likely down substantially.
Contractors in my area are "buying" work now. The are bidding jobs at a guaranteed loss, but at a loss less than not having the cash flow at all to cover fixed costs and to keep employees on the payroll. This can only last so long.
Not directed at anyone in particular, but if most companies did not cut expenses in the last year, there would be no need to have any employees.
Great thing about America, if you don't like how much you are getting paid to do a job, there are always options to change this that are in the employee's control.
1) demand a raise because you have earned it and can not be replaced for the same or less amount and your position is essential
2) Get another job that pays more
3) start your own business and get rich on the backs of other workers that you can under pay while getting rich off the profits of their efforts
4) quit and let the government take care of you
If a company now has "normal profits" this year, that is a well run company, because unless governement contracts are involved, gross sales are likely down substantially.
Contractors in my area are "buying" work now. The are bidding jobs at a guaranteed loss, but at a loss less than not having the cash flow at all to cover fixed costs and to keep employees on the payroll. This can only last so long.
My volume is down 50%, margins down 20%, you have to cut expenses to survive....and you are absolutely right, people are buying work now to keep their better employees working.....like it or hate it, the current administration, as well as some of the last are/were anti business, until they cut taxes on small businesses, the economy will continue to plunder....they say the recession is over, and that this is a jobless recovery, I'm sorry, in my book a jobless recovery means your just stuck in the recession.....
Yes 2009 has been better than forcast but many think this is only a bubble in an otherwise long downtrend. I am one of those people. This time next year there may be very few boat mfg.'s left in business. I hope I am wrong. Warren Buffet is buying and he knows allot more than I do so maybe the worst is over but I don't know any financial analyst that believe that. One of the top hedge fund mgr's predicted 5 months ago that the Dow would move up until mid fall and then plummet to 3500. I think there is a good chance he will be right looking at the charts. I think much of this country's economy has been based on people keeping themselves deep in debt. With credit tight it will be impossible for people to spend as they have in the past. We have lived for years with an artificially inflated economy run on debt. If people have to start paying as they go, the spending will never again be what it was. Long term that is good but it could take many years to recover from the initial shock to the economy. Just my opinion and worth what you paid for it
It may not seem right but approx 500,000 people per month wish they still had a job and the 15,000,000 total unemployed would like their old job back at a lower wage. Stop pissing and moaning, it could be worse.
I wouldn't be upset if upper management would of had to take the same cut in pay.
I wouldn't be upset if upper management would of had to take the same cut in pay.
When we did paycuts at my company, it was across the board, as a matter of fact, myself, my business partner, and the two other managers took a higher cut in pay....lead by example......I would never expect an employee to take a cut, If I were not willing to take an equal or higher cut....does it suck...yes....but it's what is necessary and the right thing to do.
Yes 2009 has been better than forcast but many think this is only a bubble in an otherwise long downtrend. I am one of those people. This time next year there may be very few boat mfg.'s left in business. I hope I am wrong. Warren Buffet is buying and he knows allot more than I do so maybe the worst is over but I don't know any financial analyst that believe that. One of the top hedge fund mgr's predicted 5 months ago that the Dow would move up until mid fall and then plummet to 3500. I think there is a good chance he will be right looking at the charts. I think much of this country's economy has been based on people keeping themselves deep in debt. With credit tight it will be impossible for people to spend as they have in the past. We have lived for years with an artificially inflated economy run on debt. If people have to start paying as they go, the spending will never again be what it was. Long term that is good but it could take many years to recover from the initial shock to the economy. Just my opinion and worth what you paid for it
Unfortunately, I 100% agree with you....and I think yamaha has the picture...it's going to be a long road, we still have the commercial real estate market's to deal with. the banks supporting those companies will fail, the dollar is continuing to fall, there is no demand for oil, yet the price is spiking because of the value of the dollar, because we did so many irresponsible bailouts (both administrations).....I would not want to be in the boating industry right now.....it's bad enough just seeing what you've worked for being eatin away......
What is infuriating is when the corporate elite think that they aren't in any way responsible and in fact are due a much larger salary increase (not decrease) this year because the job has gotten more demanding.
BS. Let them take cuts with the rest of us. Let them suffer along on a mere million dollars a year. Let them prove they deserve the money by doing something brilliant rather just being entitled.
That's not the way america works unfortunately.
Just look at wall street. Screw the pooch for billions, get bailed out, and take a huge salary increase with bonuses to boot because you are too valuable to lose.
Ahuh.
Screw em and the lambo they rode in on.
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Terry Jason 35, Yanmar 370 hp, Lots of fun at a leisurely pace
Yamaha Restructuring? 
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