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Yamaha Motor Monthly Newsletter The F250F Outboard Motor Spotlight: Outboard Motors May 15, 2013 (Issue No. 5) Yamaha Motor Monthly Newsletter 1

Outboard Motors Reliability and Durability Trusted Worldwide This P-3 (1961) model mounted on a wooden boat was used primarily in Japan s coastal fishing industry, where fishermen affectionately dubbed it Yamaha s yellow hat. The photo shows a bride and her parents on the way to her wedding ceremony, a scene of Japanese life 50 years ago. The history of Yamaha outboard motors began with the development of the first model P-7 released back in 1960. Since then, Yamaha has continued to apply its core competence in small engine technology to develop a growing line of marine products while also pioneering and expanding new markets for them. As the result of these efforts over half a century, today s Yamaha outboard motor lineup is comprised of 2 hp to 350 hp 4-stroke models and 2 hp to 250 hp 2-stroke models, and they are used and loved by customers in some 180 countries and territories worldwide. This month we introduce our outboard motors, from the beginnings and evolution of the business to the historic 10 million unit mark in cumulative production they reached in April 2013. Yamaha s yellow hats afloat on the nation s fishing grounds Yamaha Motor Co., Ltd. was established in 1955 as an independent motorcycle manufacturer spun off from its parent company Nippon Gakki Co., Ltd. (now Yamaha Corporation), and it was only two years later that the new company began to develop outboard motors as a second product line to follow its motorcycles. As his engineers set about the task of developing an outboard motor for the first time, the company s founder and president, Genichi Kawakami, set down some conditions for them. Among them, the engine had to be air-cooled, share as many parts as possible with the company s first motorcycle, the YA-1 (125cc) and also be able to run on either gasoline or kerosene. The reason for Kawakami s insistence on an air-cooled engine was the frequent breakdowns he had experienced with a water-cooled, American-brand outboard that he owned. As for the requirement that it Yamaha Motor Monthly Newsletter 2

The first Yamaha outboard motor was the P-7 (1960). It mounted an air-cooled, 2-stroke 123cc engine and was designed to power the wooden boats of the day. be able to run on kerosene, he believed that if they were going to get commercial fishermen to use this new outboard motor, it had to be able to run on this cheaper fuel. Then in July 1960, after about two years of research and development, Yamaha Motor s outboard motor business took its first steps with the market launch its first outboard, the P-7. The following year, 1961, saw the release of Yamaha s second outboard motor, the 3 hp P-3. It went on to become a big hit and quickly win the new outboard maker widespread recognition in Japan. The P-3 was designed and engineered with the specific purpose of competing with the 3 hp model of an existing maker that was popular in Japan s fishing villages at the time. In particular, the P-3 won a strong reputation for its great engine starting performance and easy operation, and gained a large following primarily among users in the fishery industry. In developing this model, the Yamaha engineers conducted regional activities and grassroots efforts, touring the fishing communities themselves to talk and listen to the fishermen and outboard dealers in order to reflect what they heard in the new product. In an interesting side story about the P-3, the designer in charge of its fuel tank design was a woman, which was rare in Japan at the time, and her distinctive design prompted fishermen in Eastern Japan to affectionately nickname the P-3 Yamaha s yellow hat. Records tell us about the proud amazement of the Yamaha engineers at the time seeing how the coastal fishing grounds that had been dominated by the red-topped model of the existing maker had turned yellow with Yamaha hats within a year of the P-3 s release. Energizing regional fishery through business for societal value The process of listening to the voices in the market and learning the needs of the users firsthand that proved so successful in the development of the hit model P-3 has been repeated every time the product lineup has expanded and every time Yamaha has entered a new market. Today, Yamaha outboard motors are used throughout the world, but the variations of boat hull shapes, uses, and climatic and water conditions of each region are almost limitless. Yamaha s efforts to offer the best possible answer to the needs of each region with repeated market-oriented fine tuning to the specs has resulted in approximately 1,200 different variations of Yamaha outboards being sold at dealerships around the world today. And there is more to the story than the way Yamaha designs and builds its products. Whenever Yamaha has sought to develop a new market, we have gone to work with uniquely Yamaha development processes. In Africa for example, working in cooperation with U.N. agencies and the governments in each country, Yamaha staff and our local distributors have gone to fishing villages to help develop their local fishery by providing instruction in modern fishing methods, as well as how to process and preserve their catches. The first aim is the development of the area s fishery, and that in turn leads to the creation of new demand for Yamaha products while also fulfilling our The Fishery Journal, a Yamaha Motor periodical publication of tabloid size, introduced Japanese fishery of the day. Translated into several languages, it continues to contribute to the development of fisheries around the world today. Yamaha Motor Monthly Newsletter 3

corporate mission of offering new excitement and a more fulfilling life for people all over the world. As attention focuses today on BOP business, this Yamaha market development style has increasingly won recognition as a model for business for societal value. Furthermore, Yamaha works proactively to make sure that our products continue to be used longer and in the best condition possible. There is presently a network of Yamaha distributors in all of the countries of Africa (except Somalia and South Sudan), and from a very early stage we have focused efforts on the education of mechanics to provide quality technical service. Much time and effort has been spent over the years to develop the infrastructure and train the personnel to provide good service wherever Yamaha products are sold. Yamaha s training program for marine mechanics in Africa began early in the 1970s. In addition to local instruction worldwide, technicians are invited to the training center in Japan to acquire higher-level skills and knowledge. Establishing the Yamaha brand in the North American market Thanks to the trust won through the company s grassroots market-oriented approach to product development and service, Yamaha outboards were already in use on waters around the world in the 1970s. However, the one exception was North America, the world s largest outboard market and one with a history and course of its own. In fact, through a limited joint-venture agreement signed with U.S. maker Brunswick Corporation in 1973, many Yamaha outboards were being exported to the American market, but they were being sold under Brunswick s Mariner brand name, and it remained a big dream and objective to market Yamaha outboards there under the Yamaha brand name. The chance to pursue that dream came in 1983, the year after the joint venture agreement with Brunswick ended, and the initial venue would be that year s International Marine Trade Exhibition and Convention (IMTEC) in Chicago, one of the world s largest marine product trade shows. There, an impressive Yamaha booth displayed a lineup of 20 Yamaha brand outboards ranging from 2 to 220 hp and At the 1983 IMTEC marine trade show in Chicago, one of the largest in the world, Yamaha displayed 20 outboard models to pave the way for the start of sales of Yamaha outboards in the US market for the first time under the Yamaha brand name. included the newly developed V4 and V6 models. The next year, 1984, finally brought the long-awaited launch of the Yamaha outboard brand in the North American market. In America, the success of our motorcycles had already won the Yamaha brand name a reputation for reliability, so it didn t take long at all for that same reputation to extend to Yamaha s outboard motors. Over 10 million outboards in cumulative production A milestone built on global trust Over a long history, the technological development of outboard motors has made dramatic advancements, and the global issue of preserving the natural environment has been very influential in this progression. Things began with the implementation of the world s first emissions regulations for marine engines in 1992, prompted by pollution of the waters of Lake Constance (Bodensee), which borders Germany, Austria and Switzerland. Amid the growing worldwide concern for environmental issues, Yamaha was among Yamaha Motor Monthly Newsletter 4

the first to begin concerted R&D efforts for developing environment-friendly outboard technologies. After Yamaha s F9.9 4-stroke model became the world s first outboard motor to carry a label of approval under these new outboard emissions standards, development of more revolutionary environmental technologies was swiftly accelerated. Later, the setting of marine engine emissions standards by the U.S. Environmental Protection Agency (1998) and California s C.A.R.B. marine engine emissions standards (2001) were met immediately with a growing lineup of new Yamaha 4-stroke models and major advances in performance in order to clear these standards. Today, even in the bass fishing boat category where acceleration and speed are top priorities and 2-stroke models are the mainstream, many anglers are now choosing Yamaha s VMAX 4-stroke models to power their boats. However, there are still many customers around the world who prefer the simpler structure of 2-stroke models. In the same way as its 4-strokes, Yamaha set about developing revolutionary environmental technologies for 2-strokes, pioneered by its HPDI (High Pressure Direct Injection) series models to clear emission standards beginning with the release of the HPDI-Z2000 in 1999. With these unique technologies, Yamaha has worked to offer solid choices for both 4- and 2-stroke models that meet the needs of diverse markets around the world. Total world demand for outboard motors stood at approximately 759,000 units in 2012 (Yamaha survey). Of this, Yamaha outboard wholesales accounted for 322,000 units, a share representing more than 40%. Supported by customers in some 180 countries and territories worldwide who use and love them for their reliability and durability, Yamaha outboard motors achieved another historic milestone when cumulative production reached the 10 million unit mark in April 2013. On April 4, 2013, cumulative production of Yamaha outboard motors reached the 10 million unit mark. A celebratory ceremony was held at the factory in Japan. Yamaha Motor Monthly Newsletter 5

Message from the Editor All outboard motors manufactured by the Yamaha Motor group are designed around the concepts of being lightweight, compact, highly reliable and durable. Throughout over 50 years of history, these concepts have been continuously refined and built into all models of the Yamaha outboard lineup; from the standpoint of environmental friendliness in the 4-stroke models popular primarily in the developed markets to the durability and highly economical 2-strokes preferred by many users in the emerging and developing markets. These central ideals permeate each and every model in the lineup, and whenever I see Yamaha outboards on waters around the world, it makes me glad and proud to see how years of grassroots market-oriented efforts in each locality have won such strong support for the brand. Historically, the first outboard motor was reportedly invented in America early in the 20 th century. And there is an interesting episode related. Apparently, the motivation of the inventor, Ole Evinrude, was to find a way to get his boat across the lake fast enough that he could bring back ice cream to his sweetheart on the island they were picnicking on without it melting. When we think of how outboard motors are bringing the enjoyment of marine leisure and enriching the lives of so many people today, 100 years after that romantic episode, I can t help but feel that you can never underestimate the power of love! Yuriko Senga Corporate PR Group, Public Relations & Advertising Division, Yamaha Motor Co., Ltd. 2500 Shingai, Iwata, Shizuoka, 438-8501 Japan TEL. 0538-32-1145 FAX. 0538-37-4250 E-mail: ymcglobalpr@yamaha-motor.co.jp *Prior to any use of the article(s) and photographs contained within this newsletter, please contact us. Yamaha Motor Monthly Newsletter 6