Last month Yamaha said it would ask for 10 percent of its employees nationwide to take voluntary early retirement “to ensure the company’s health and competitive ability.â€ Takashi Kajikawa, president and CEO, Yamaha Motor Co. Ltd., says in an open letter to investors that move is one of several the company needs to make.
â€œThe economic crisis grew beyond anything we could have anticipated, compelling us to revise our business plan,â€ Kajikawa says. â€œLike so many companies hit hard by the economic nosedive, we are now challenged to maximize our core capabilities just to survive.â€
Kajikawa says the credit crunch and rising interest rates are taking their toll on results for Yamahaâ€™s fiscal year ended Dec. 31. The companyâ€™s mainstay businesses â€“ motorcycles, marine products and recreational vehicles in North America and Europe â€“ are off significantly, and motorcycle and robot sales in Indonesia, China, Thailand and Latin America, favorable until very recently, now also are experiencing a rapid decrease in demand due to a developing.
â€œIn view of the extremely severe economic conditions, we must concentrate on two priorities this year: maximizing profits, and undergoing extensive cost-cutting,â€ Kajikawa says. â€œSome may think these are too obvious to mention, but in the current economic climate, I believe we have to get back to basics and work to streamline our entire corporate structure.
â€œOn the expenditure side, we must eliminate any expense that is not absolutely necessary. We have to be sure of the objective and cost-effectiveness of every expenditure, focusing on minimizing costs for those items that are necessary.