Although Yamaha has been working with Jianche to produce several models in China since 1992, the company plans to form a joint venture with CFMoto.
CFMOTO verified the news in a press statement, and at this point, only regulatory inspections remain.
Zhuzhou CF Yamaha Motor C., LTD. (ZCYM) is the formal name of the cooperation, which will launch in November. According to the announcement, it would have 500 workers and be owned by CFMoto (50%), Yamaha Motor (44.23%), and Tair Lea LTD (5.77%). It also indicates that the joint venture’s headquarters would be in Zhuzhou City, Hunan Province, China, and that “Production and sale of motorcycles” will be the venture’s core commercial activity.
The whole press announcement states: CFMOTO and Yamaha have formed a joint venture in Zhuzhou, China. The new corporation will operate under the acronym ZCYM, which stands for Zhuzhou CF Yamaha Motor.
The formation of this joint venture is conditional on obtaining all necessary approvals under applicable competition and other laws and regulations. To increase competitiveness, CFMOTO and Yamaha will keep talking about where they want to take their joint venture.
As seen by the models it produced for Yamaha under the licensing arrangement, dance specialized in small-engine bikes and scooters with engine displacements of 125cc or less. Yamaha may expand its Chinese manufacturing business beyond its current focus on small-capacity motorcycles due to its partnership with CFMOTO, yet this is unclear.
The Chinese company is well-versed in manufacturing ATVs and side-by-sides, so it’s feasible that Yamaha may outsource part of its ATVs and manufacturing to them in the future.