Yamaha Rumor - 75% Production decrease in 2018

sjb

Member
Heard a rumor that Yamaha will be reducing their 2018 snowmobile build by 75%. Can anyone corroborate this rumor? My fear this is the beginning of the end of Yamaha snowmobiles. The partnership with AC might have been the start. What I was told this was due to lack of profit on the machines. While I will say I am bit partial to Yamaha, I don't want to see any of the 4 manufactures step down. Kip or others - have you heard the same?
 

euphoric1

Well-known member
I also had heard a similar rumor, not that I regularly purchase new sleds but wonder if things like that will be seen across the entire industry as I'm sure the past few winders have been very damaging to the manufacturers. I'm sure just like the business I'm in manufacturers want growth every year and with dealers sitting with inventory and manufacturers wanting,needing or expecting orders what are dealers supposed to do? look how far and few and in between dealers have be come in areas where dealers once dotted the landscape, and for a lot of people who can afford new sleds this day and age especially when the only option to be able to use them is to travel. I'm not complaining or trying to paint doom and gloom but worry that it will be more than just Yamaha making cuts. I know when a certain manufacturer comes around here in spring fro snow order it wont be much because I'm not sticking my head out as a dealer anymore, winter has become too much of a gamble and I'm sure the manufacturers base their production on early season orders and how well do you think they will be after this winter. Poor winters not good for the entire industry no matter what aspect of it you are in. lets hope its not true and not a domino effect.
 

skidont

Member
I my opinion besides the low snow years is the fact that sleds are way over priced , this is also an affect of building sleds with stuff we don't really need to enjoy the sport , just my opinion . ski-doo's 600 sports are pretty nice rides at a good price for example
 

Hoosier

Well-known member
Is Textron cutting them off? Not being sarcastic but I can't imagine they build and sell many sleds themselves as it is.
 
G

G

Guest
Most of the original hard core guys are gone. They are either dead or in Arizona or Florida. These were the ones that bought a new sled every year no matter what. Our own group of 15 is down to two. Younger people have other interests. Yes, the recent snow conditions have not helped. As far as overpriced I don't buy that. New prices are relative to everything else. A new pickup can cost as much as $85000. A person can still go out and buy a 5 year old sled for cheap and have a pretty good ride. The 'sport' is not what it used to be. Millenials think we are a bunch of cavemen. You can be sure the mfgrs are trying to look into the future. From a money standpoint I couldn't blame any single one of them for quitting. But I think the Yami rumor is BS.
 

gary_in_neenah

Super Moderator
Staff member
Just for grins and giggles I did a search and found this comment on a Snowest forum....

I heard Yamaha has two more years of making snowmobiles and then likely to get out of it completely. Reason for this is the bad economy and poor sales.

Date on the post was October of 2011
 

ICT Sledder

Active member
Wouldn't be surprising. Yamaha is a very distant #4 in the industry, sales-wise, and with Cat taking over so much of their production I'm sure their margin on each of those sleds is considerably lower than on one produced in-house by the other three manufacturers. Not like Cat is building the Yamaha sleds for cost and just handing them over to Yamaha. Less meat on the bone for them.

As for the retail prices on new sleds, just buy hold-overs at (give or take) 20% off MSRP. That's what we've done for the last 15-20 years. Unless something has suddenly changed since the last one we bought a couple of years ago...
 
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old abe

Well-known member
True or not, who knows??? One thing is for sure, Textron will be a big part of any future Yami sled business. Yamaha has not got a very good hand of cards to play in this game now days. Textron made this situation even worse for Yami. I don't like the fact of losing another brand of sleds. Just not good for the sport, or the sled buyer. A year ago at about this time, a very long time Poo dealer I know told me that Yami had only 2 years left, and they would be gone from the snomo bus. He had just returned from a snowmobiling trip with some high up business people who are supposed to be in the know. We have all heard this rumor before.
 
G

G

Guest
18 is going to be the last year for the Apex. That is for sure. I could see them getting rid of everything now made entirely in Japan and just selling Vipers and Sidewinders and the little 200s made in TRF. Or maybe the other way around. If Textron wants to be done all they would have left would be the Vector and their utility sled. If it came to that then yes, they would be basically done.
 

tsg

Member
Perhaps Kip or another dealer can chime in, or perhaps not if they are worried about these communications and any adverse effects with Yamaha, but I know of at least 4 multi brand dealerships in SE and NE Wisconsin that had their snowmobile "selling" opportunities revoked by Yamaha, due to low sales of their snow product. This occurred in the fall, and Yamaha was good with all from what i heard, about taking product back, not charging depreciation, etc.... From those I know, they spoke highly of Yamaha, parts network and about the product, but not much control if someone does not want to buy their sleds! Also some concerns voiced back that their product line was not diverse enough. Just reporting what I know.
 

harvest1121

Well-known member
Maybe they will have a new snowmobile in 2020 season. Why have so many snowmobiles you have to discount in the pipe line.
 

old abe

Well-known member
Maybe they will have a new snowmobile in 2020 season. Why have so many snowmobiles you have to discount in the pipe line.

If you're waiting for Yamaha to build their own snowmobile, good luck with that!!! Fool me once, but you'll not fool me twice. Been there, done that.
 

kip

Well-known member
For what it's worth here's my two cents. Yamaha will not get out of the business. It costs more money to get out than to stay in and that's a fact. Yes, I believe production will be cut by quite a bit and I agree with it. Sooner or later something has to give with the industry. You cannot keep pushing more and more numbers with 0% interest and huge discounts. It is costing the big 4 millions of profit. I'd rather see less production and I don't think Yamaha will be the only one to do it.
 

boomer

Member
I just saw the latest episode of Snowtrax TV today and they had an interesting interview with the new VP of AC/Textron Snowmobile Division. From what was said in the interview it does not sound like Yamaha will be exiting the snomo biz anytime in the near future and also that the AC/Textron relationship with Yamaha is going to be here awhile with both companies currently working together on future sled development.
 

snoden

Active member
Yamaha Corp just filed for a patent and it looks pretty interesting. All new suspension and chassis but the word "supercharger" was used about 100 times describing the motor. Ya'll can look it up and read it for yourselves, it's in black and white on the US patent dept. website. I'm with Kip on the rumor mill gossip....just plain garbage! I believe the Sidewinder is a huge success for Yamaha and Cat and just the beginning of what's to come.
 

whitedust

Well-known member
Ok.... OEM biz goes like this when time for a new a OEM Agreement. Yamaha wants a deeper discount with a forecast of X units. Textron wants more units to build to offer a deeper discount to Yamaha or will hold the line at X discount. So there is a lot of dialog now as how to get the numbers to work for both companies for the new Agreement term. At the same time Textron doesn't want Yamaha to walk away just no way to make up for that lost revenue and unit build to the AC bottom line. Both companies know there is an over stock of units industry wide due to back to back poor winters plus the overall market is shrinking for many reasons that both companies are keenly aware. Accurate forecasting is a must for both companies bottom line so no BS will fly from either company when it gets down to the real numbers for a new agreement. So what to do?? IMO the only way Textron & Yamaha can grow their mutual biz is to add another product to the agreement and total buildable units. Low hanging fruit for Yamaha is an Apex replacement but won't do much for the AC line up or profitability. So logic tells me a new entry level 4s sled is coming to enhance both the AC and Yamaha productlines. An entry level sled is of little interest to me but I do understand the market and how this will benefit both companies. So that's my take on what is probably happening and yes Yamaha stays in the snowmobile business.
 

eagle1

Well-known member
Can't believe the 75% production decrease......wouldn't even be worth having a lineup next year then.
I know I'm done though. No more new sleds for me. As much as I love it, investment is just not worth the return anymore.
 

pirate

New member
Obviously I don't get to all dealers , but the ones here in N IL and S Wis have a lot of Yamaha sleds sitting going back to even 15's
Maybe its just a supply and demand issue for a year , and by backing production down , they can hope to clear out there backlog .
Then ramp up production some for the better selling models after 18/19 ..
 

1fujifilm

Well-known member
Obviously I don't get to all dealers , but the ones here in N IL and S Wis have a lot of Yamaha sleds sitting going back to even 15's
Maybe its just a supply and demand issue for a year , and by backing production down , they can hope to clear out there backlog .
Then ramp up production some for the better selling models after 18/19 ..

Yup.
18 Vipers near Green Bay are 9.2, No set up etc.
20 months ago 14 Vipers were 7995.
Also, 17 off road racer UTV's are under 15.

Bear
 
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