I have been involved in the OEM business my entire sales & marketing career & these agreements are created to maximize profits for both companies. Drop Merger from your vocabulary Merger is when Company A acquires Company B they downsize & merge to become 1 company & 1 brand. Yamaha & AC have agreed to a simple OEM agreement for period of time. Since all OEM agreements are solution oriented for the enduser, you the snowmobiler, to bring the best marriage of technologies in a final integrated product in this case a snowmobile. The Viper & its variations adds a new 2014 model to the Yamaha line up. No Yamaha model went away although it is possible in my mind in the future to obsolete the Nytro & the Vector if the Viper is very successful. Then again no way to know what Yamaha already has in their R&D pipeline so just conjecture on my behalf. OEM agreements can change & evolve overtime as the enduser drives the market which in turn maximizes profitability for both OEM principles. What is happening in this case is Yamaha is sharing their state of the art 4s engine technology with AC & AC in turn is sharing their chassis technology with Yamaha & the integrated Yamaha product is the Viper. Personally to me the Viper looks hot, has excellent chassis & engine technology & should be an excellent 135hp 4s sled. AC has not released their 2014 line up so we don't know how AC has applied Yamaha engines but should be an excellent sled as well. This where we are now plain & simple so don't go jumping to any conclusions that either of these companies are in trouble in any way this OEM agreement was signed to increase market share for both entities so lose your paranoia the spiders are NOT on the wall. With all the automobile industry people on this website please feel free to expand & explain OEM Agreements as they are so widely used in your industry & the vendors that sell you assembly equipment. I hope this helps many of you to better understand OEM Agreements & their purpose for you the enduser.
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Time To Explain An OEM Agreement!
- Thread starter whitedust
- Start date
Consider that John Deere uses Kawasaki engines in their lawn and garden tractors, and Yanmar engines in many of their smaller utility tractors, and no one thinks John Deere is going belly up. I have two Deeres with yanmar diesels and both the tractors and engines are bulletproof. OEM agreement indeed.
Consider that John Deere uses Kawasaki engines in their lawn and garden tractors, and Yanmar engines in many of their smaller utility tractors, and no one thinks John Deere is going belly up. I have two Deeres with yanmar diesels and both the tractors and engines are bulletproof. OEM agreement indeed.
It doesn't get much better than a Yanmar
motor_slut
New member
This is the same as Ram trucks with Cummins engines, Polaris with TEAM clutches, Ohlins - Fox- Walker Evans shocks, and numerous other cooperative business partnerships.
D
Deleted member 10829
Guest
This is the same as Ram trucks with Cummins engines, Polaris with TEAM clutches, Ohlins - Fox- Walker Evans shocks, and numerous other cooperative business partnerships.
Not quite the same. It would be if Cummins made trucks or TEAM made snowmobilies. There is a huge difference. Now if it was a Chevy engine in a Ram truck, then it would be the same.
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lenny
Guest
I have been involved in the OEM business my entire sales & marketing career & these agreements are created to maximize profits for both companies. Drop Merger from your vocabulary Merger is when Company A acquires Company B they downsize & merge to become 1 company & 1 brand. Yamaha & AC have agreed to a simple OEM agreement for period of time. Since all OEM agreements are solution oriented for the enduser, you the snowmobiler, to bring the best marriage of technologies in a final integrated product in this case a snowmobile. The Viper & its variations adds a new 2014 model to the Yamaha line up. No Yamaha model went away although it is possible in my mind in the future to obsolete the Nytro & the Vector if the Viper is very successful. Then again no way to know what Yamaha already has in their R&D pipeline so just conjecture on my behalf. OEM agreements can change & evolve overtime as the enduser drives the market which in turn maximizes profitability for both OEM principles. What is happening in this case is Yamaha is sharing their state of the art 4s engine technology with AC & AC in turn is sharing their chassis technology with Yamaha & the integrated Yamaha product is the Viper. Personally to me the Viper looks hot, has excellent chassis & engine technology & should be an excellent 135hp 4s sled. AC has not released their 2014 line up so we don't know how AC has applied Yamaha engines but should be an excellent sled as well. This where we are now plain & simple so don't go jumping to any conclusions that either of these companies are in trouble in any way this OEM agreement was signed to increase market share for both entities so lose your paranoia the spiders are NOT on the wall. With all the automobile industry people on this website please feel free to expand & explain OEM Agreements as they are so widely used in your industry & the vendors that sell you assembly equipment. I hope this helps many of you to better understand OEM Agreements & their purpose for you the enduser.
I would have to agree and would like to add an observation. Products are always being refined and evolving. The sled market with it's motors regulated by the EPA force these manufacturers to comply with emission regulation. AC has been able to pass right over a butt load of hassle and just buy proven reliable 4 stroke power,, I understand they have been doing this already but with a new class (600)seems like a rather smart move IMO. I believe Yamaha seen the same potential in the cat chassis and passed right over all the R&D to develope a new one on their own coin, another potentially smart financial move. Many have been waiting for a long time to see something new from Yammi but feel unsettled because they just bought in and probably the same with cat people with Yammi power plants. That is something those unsettled will have to work out because it's a done deal. I for one am excited to see this as I like both AC and Yammi best of the 4. The really cool thing here is that if this joint venture is successful Poo and Doo will feel the competition at a greater level so in fact it's a win win for all because we are in a new era and the competition bar has just been raised. The fact is AC has a great chassis and Yamaha has great motors, not saying AC motors are crap or Yamaha's chassis are crap but we are see the best of both worlds,,,IMO. I think Yamaha will benefit more so than Cat because this is huge news to broaden the market considerably in the somewhat lagging heavy full line up of 4 strokers. Cat will no doubt benefit, maybe more than I believe because the Yammi 3 hole is a nice pulling non turbo right out the box,,I have one and love it! Remember, evolution is key, give it time and we'll see even more great stuff in all 4, this is just a mile stone for these 2 right now but look out, the other 2 will step it up, hopefully sooner than later
I believe all 4 are highly competitive and all have their places and loyal customers, that my friends is a good thing!
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Well said Whitedust. I have not read to much yet on the cat/Yamaha situation on sled sites, but i can imagine that there is a lot of whining. The people with green blood will hate it, as will the people with blue blood.
Personally, i think it is an awesome move. Now, if i could just get the Rev chassis with the Yammy Sx700R motor in it, I would be happy. LOL.
Personally, i think it is an awesome move. Now, if i could just get the Rev chassis with the Yammy Sx700R motor in it, I would be happy. LOL.
SnowScreamer
New member
The same thing that is happening with Arctic Cat and Yamaha already happened with Suzuki and Kawasaki. Suzuki and Kawasaki had an agreement to build dirt bikes for each other in the mid 2000's and they put there money and engineering staff together to design a 250cc four stroke motocross bike (rmz-250, kx250). At that time Yamaha and Honda already had highly competitive four stroke race bikes. For a couple years the dirt bike lines for both companies almost mirrored each other. But then that contract ended and product lines changed once again. For companies that don't hold large market share it is a way to help each other out to get over engineering and manufacturing hurdles. There does seem to be a lot of positive remarks about the new Yami. Four stroke reliability and MPG's with a killer chassis will always be a winner no matter what clothes its wearing.
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lenny
Guest
Not quite the same. It would be if Cummins made trucks or TEAM made snowmobilies. There is a huge difference. Now if it was a Chevy engine in a Ram truck, then it would be the same.
Personally I think it's a little broader than that. AC and Yammi wanted something the other had, both at the same time. Dodge wanted Cummings but cumming does just Cummings .but yet doge gets great motors and Cummings gets sales. So again it's a win win in the business arena for both. I believe that's the broader sense of this comparison,does that make any sense?
outrageous
New member
Whitedust; Very well put. This is simply two manufacturers that will be sharing technology and hoping to gain market share by this agreement. Geez, to hear some of these guys talk, you would think next years sleds would be called Catmahas or Yamacats. People just don't understand what the cost is to develope a completly new sled design and engine package, then retool the factory for this build, all new marketing concepts, and then build just a few thousand a year and try to recapture your investment ony to have people complaining in a couple of years that a new design is again needed.
Very well put Whitedust.I have a GM SUV with an in line 5 Saab tractor motor in it. The wife had a Saab 92x that was 90% Subaru . If they can keep the consumer happy,and make money,they are going to build it. Just think of the r/d $the two are saving. At the end of the day it's about profit margin,so you and I make $ as shareholders. Show me the $
D
Deleted member 10829
Guest
Personally I think it's a little broader than that. AC and Yammi wanted something the other had, both at the same time. Dodge wanted Cummings but cumming does just Cummings .but yet doge gets great motors and Cummings gets sales. So again it's a win win in the business arena for both. I believe that's the broader sense of this comparison,does that make any sense?
I know what you are saying Lenny, but it's a much different deal when both companies are an OEM in the same market. It's one thing for Dodge to get a Cummins engine and completely different if they used a Chevy or Ford engine. Cummins is not a truck OEM. See what I'm saying?
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lenny
Guest
I see what your saying now. I had a 98 Mazda B2500 which had a Ford Motor, The Pontiac Vibe is in with a Toyota somthing,, I thinkI know what you are saying Lenny, but it's a much different deal when both companies are an OEM in the same market. It's one thing for Dodge to get a Cummins engine and completely different if they used a Chevy or Ford engine. Cummins is not a truck OEM. See what I'm saying?
Essential Understanding.
To me it is essential to understand the Yamaha /AC business relationship nobody bought or sold the farm. It is a simple OEM relationship involving engines & chassis technology for a term of 5 years but I'm not sure about the term as OEM Agreements are easily extended at anytime. Also OEM agreements are outlines with lawyers involved on both sides but doing business together becomes a common sense approach to problems that come up on a daily bases. You put your best people in place that can get the job done in any environment no place for non flexible people. These OEM support people are highly trusted by the OEM & become a strategic partner in AR&D of the OEM. Both OEMs are wanting to know how to best apply their technologies & when they start sky blue dreaming it becomes a momet to behold as both sides step back & say "WOW you can do that"! To me Yamaha 4s engines in AC snowmobiles is a no brainer OEM Agreement for both Yamaha & AC & something both companies are accustom & will last many many years. The chassis OEM technology exchange is very exciting & a new frontier for snowmobiles. To me you get both Yamaha & AC exchanging R&D chassis information & you will get very unique, durable & exceptional handling snowmobiles. In a few years you could be asking yourself why didn't Polaris & Skidoo get together? Especially regarding etec 2s engines as Polaris has been struggling with DI 2s trying to get around doo patents & Polaris does not participate in 4s. What a natural match for Doo & Poo for incremental sales & we the endusers all win!
To me it is essential to understand the Yamaha /AC business relationship nobody bought or sold the farm. It is a simple OEM relationship involving engines & chassis technology for a term of 5 years but I'm not sure about the term as OEM Agreements are easily extended at anytime. Also OEM agreements are outlines with lawyers involved on both sides but doing business together becomes a common sense approach to problems that come up on a daily bases. You put your best people in place that can get the job done in any environment no place for non flexible people. These OEM support people are highly trusted by the OEM & become a strategic partner in AR&D of the OEM. Both OEMs are wanting to know how to best apply their technologies & when they start sky blue dreaming it becomes a momet to behold as both sides step back & say "WOW you can do that"! To me Yamaha 4s engines in AC snowmobiles is a no brainer OEM Agreement for both Yamaha & AC & something both companies are accustom & will last many many years. The chassis OEM technology exchange is very exciting & a new frontier for snowmobiles. To me you get both Yamaha & AC exchanging R&D chassis information & you will get very unique, durable & exceptional handling snowmobiles. In a few years you could be asking yourself why didn't Polaris & Skidoo get together? Especially regarding etec 2s engines as Polaris has been struggling with DI 2s trying to get around doo patents & Polaris does not participate in 4s. What a natural match for Doo & Poo for incremental sales & we the endusers all win!
G
G
Guest
This whole deal probably took years to put together. This is not some knee jerk reaction by either Yammi or AC. For many years Yammi guys have wanted a package like this. Totally different suspension and extreme weight loss. Now there is much whining and bitching on TY that AC is getting the better end of this deal and Yammi sold out. I'm sure both of them covered their butts now and in the future. The more I look at all the posts on all the sites the more I am liking the Viper. The latest I have heard is that YES you can extend the warranty for three years and there might even be a way to get it to five. If this is true I am going to buy one. A blue and white LTX SE. Bye bye heavy pig Apex. It would be nice to ride a sled again rather than have the sled ride you. Both AC and Yammi have too much at stake here to botch the effort. I hope. If Hitler is worried I am taking that for a good sign.
polarisrider1
New member
To me it is essential to understand the Yamaha /AC business relationship nobody bought or sold the farm. It is a simple OEM relationship involving engines & chassis technology for a term of 5 years but I'm not sure about the term as OEM Agreements are easily extended at anytime. Also OEM agreements are outlines with lawyers involved on both sides but doing business together becomes a common sense approach to problems that come up on a daily bases. You put your best people in place that can get the job done in any environment no place for non flexible people. These OEM support people are highly trusted by the OEM & become a strategic partner in AR&D of the OEM. Both OEMs are wanting to know how to best apply their technologies & when they start sky blue dreaming it becomes a momet to behold as both sides step back & say "WOW you can do that"! To me Yamaha 4s engines in AC snowmobiles is a no brainer OEM Agreement for both Yamaha & AC & something both companies are accustom & will last many many years. The chassis OEM technology exchange is very exciting & a new frontier for snowmobiles. To me you get both Yamaha & AC exchanging R&D chassis information & you will get very unique, durable & exceptional handling snowmobiles. In a few years you could be asking yourself why didn't Polaris & Skidoo get together? Especially regarding etec 2s engines as Polaris has been struggling with DI 2s trying to get around doo patents & Polaris does not participate in 4s. What a natural match for Doo & Poo for incremental sales & we the endusers all win!
When pigs fly on a doo poo deal. Doo is a mega company, making trains and planes is their mainstay. Poo is sitting well also with there motorcycle lines and side by sides. (Miitary contracts,etc.) Cat and yami are out to die without putting great engines in light sleds. Who would Yami turn to to sell motors. Anybody remember AMC? Nova tail lights, ford engines,dodge misc. All to make crap cars to keep the gov. Off the big 3 so they could not be accused of a monopoly.
When pigs fly on a doo poo deal. Doo is a mega company, making trains and planes is their mainstay. Poo is sitting well also with there motorcycle lines and side by sides. (Miitary contracts,etc.) Cat and yami are out to die without putting great engines in light sleds. Who would Yami turn to to sell motors. Anybody remember AMC? Nova tail lights, ford engines,dodge misc. All to make crap cars to keep the gov. Off the big 3 so they could not be accused of a monopoly.
I see I hit your Polaris knee jerk reaction on what could be. Ahh this brand thing do or die seems scary to me. I like leading edge tech & using what is best seems like a better way to me. I'm very excited to see how this all works out & all good to me until proven that the OEM Agreement did not work. So many OEM Agreements work so very well & it is likely the Yamaha AC Agreement will be a winner too.