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Yamaha And CFMOTO Forge New Partnership In China

In a significant development for the motorcycle manufacturing industry, Yamaha has made an official announcement regarding a planned change of ownership of Chongqing Jianshe Mechanical and Electric Co., Ltd. (CJMEC), a current partner in the Yamaha motorcycle manufacturing joint venture in China, known as Zhuzhou Jianshe Yamaha Motor Co., Ltd. (ZJYM). This change is scheduled to take place in November 2023.

Under the terms of the agreement, ZJYM’s equity interest will be transferred to ZHEJIANG CFMOTO POWER CO., LTD. (CFMOTO).
The new entity resulting from this transition will be named Zhuzhou CF Yamaha Motor Co., Ltd. (ZCYM). Currently, ZCYM boasts a workforce of approximately 500 employees.

The ownership distribution in ZCYM will be as follows: CFMOTO will hold a 50 percent share, Yamaha will maintain a 44.23 percent share, and the remaining 5.77 percent will be held by Tair Yea Limited.

Yamaha views China as one of its crucial production and sales bases and considers this change in ownership as part of its strategy to enhance competitiveness. The company intends to engage in discussions with CFMOTO to determine the future direction of their joint venture with the goal of further elevating their competitive edge within the market.

This development not only has implications for Yamaha but also signifies a significant shift within the global motorcycle industry. CFMOTO, which already maintains a close working alliance with KTM, will now further solidify its position within the industry through this alliance with Yamaha.

The collaboration between CFMOTO and Yamaha is expected to have a positive impact on the industry landscape, with potential benefits for both companies and motorcycle enthusiasts worldwide.

As November 2023 approaches, all eyes will be on Zhuzhou CF Yamaha Motor Co., Ltd. (ZCYM), as it sets out on this new chapter in its journey, with the hopes of continued success in the ever-evolving motorcycle market. Stay tuned for further updates on this development and its implications in the coming months.

MV Agusta CEO Talks KTM Partnership

MV Agusta is back on the rise since being purchased by Russian entrepreneur, Timur Sardarov in 2019.

KTM AG signs a multi-year deal with MV Agusta to distribute the Schiranna motorcycles in North America.
KTM purchased 25.1% stake in MV Agusta.
KTM to distribute MV Agusta motorcycle and vice versa.

Despite immediately facing serious struggles including the global pandemic, supply and resource shortages and the recent Ukraine-Russia conflict, MV Agusta has been making great strides.

However, the focus now is not just surviving but also ensuring that the MV Agusta brand continue to thrive in the motorcycle market.

In order to do so, the Italian moniker recently agreed to a strategic partnership with Pierer Mobility Group’s KTM.

In a recent interview with Motorcycle.com, Sardarov explained the reason behind the big move.

“And so that’s why for me to partner up with a big business, with a big industrial partner like KTM–it makes my life easier.

“I want to focus on developing the business, on making the company better and more efficient–but it’s very hard to do this when you’re constantly thinking about whether we should ship our wheels from China by plane or by boat!,” he said.

MV Agusta and KTM announced a new distribution deal back in September before it was confirmed a month later that KTM AG has owned a 25.1 per cent stake in MV Agusta.

Interestingly, two KTM senior management team members also joined MV Agusta’s board of directors as a result from the partnership.

“We’re going to develop a network together, so it’s going to be either multi-brand dealers, or standalone dealers, depending on the country, but it’s definitely going to mean better dealers overall.

“I hope some of our existing dealers will stay with us, because many of them have invested heavily in MV, and I’m really grateful to them for doing so, and I will make sure that they are still part of our family.

“But some other dealers simply haven’t performed, so we’ll be letting them go,” added Sardarov.