Yamaha Motor Co. said Wednesday that it is in the final stages of discussions with Ford Motor Corp. on jointly setting up a company in the Unites States to manufacture and market stern-drive engines for large and midsize pleasure boats.
Toyota Motor Corp., which provides engines for Yamaha's domestic marine products, is also expected to participate, Yamaha President Takehiko Hasegawa said.
Yamaha and Ford are still hammering out the details of the new venture, which is expected to be established sometime this spring, Hasegawa said. The project will be Ford's first foray into the marine market, he said.
In 1999, 120,000 stern-drive engines for large and midsize power boats were sold in the United States, accounting for some 60 percent of the global market, while about 7,000 were sold in Japan, Yamaha said.
Yamaha and Ford began their talks last year on the assumption that the market will probably expand, Hasegawa said.
The Yamaha-Ford relationship dates to 1985, when Yamaha began providing engines for Ford cars.
Yamaha-Toyota racing
Yamaha Motor Co. said Wednesday it will cooperate with Toyota Motor Corp. in motor sports by providing new engines for sports cars and training race-car drivers.
Toyota, which has a Formula One racing team that will compete from next year, increased its stake in Yamaha last year so the major supplier of automobile engines can help it develop high-performance F-1 racing engines.
Yamaha, which is also set to produce another environment-friendly engine for Toyota's cars, said it will also support Toyota's operation of Fuji International Speedway Co.
Toyota is to complete moves to obtain a majority stake in Fuji International Speedway this year so it can host F-1 races at the track in the future in a bid to attract young people to the sport and its own cars.