Yamaha Motor Co. Ltd. quadrupled its forecast Tuesday to a full-year loss of ¥182 billion as the recession cuts sales in North America and Europe.
The world's second-largest motorcycle maker had previously forecast a net loss of ¥42 billion. The company lost ¥74.7 billion in the six months to June.
Yamaha cut its sales forecast by 12 percent because rising unemployment and falling wages have reduced demand for Royal Star cruising bikes.
The company cut its forecast for motorcycle sales in North America this year by 35 percent to 102,000 bikes and estimates it will sell 282,000 in Europe, 8 percent less than earlier forecast.
"Consumers are fearful and not spending on motorcycles in the U.S. and Europe," said Yuuki Sakurai, chief executive officer of Fukoku Capital Management Inc. "Even if the economy recovers, it won't be at the same level as two years ago."
Yamaha Motor gets about 41 percent of its sales from Europe and North America.
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