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US Investigating Japan for dumping boat engines on US

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Old 02-23-2004, 03:17 PM
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TulsaLarry
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Default US Investigating Japan for dumping boat engines on US

02/23 12:51P
WASHINGTON (Dow Jones)--The U.S. International Trade Commission on Monday
ruled in favor of continuing dumping investigations regarding pleasure boat
engines from Japan.
The commission voted unanimously that there was a reasonable indication that
the Japanese imports were sold below fair values, thus injuring U.S. outboard
engine industry.
The investigation will now move to the Commerce Department, which will
determine in coming months whether preliminary antidumping duties should be
levied on the Japanese products.
The petition was filed earlier this year by Mercury Marine Inc., a division
of Brunswick Corp. (BC) of Lake Forest, Ill.
Mercury alleges that Japanese makers, such as Yamaha Marine Group, a
subsidiary of Yamaha Motor Corp. (7272.TO), expanded their market share to 56%
in 2002 from 43% two years earlier by underpricing their products.
Japan exported nearly 150,000 engine units to the U.S. in the first nine
months of 2003, up 14% from the same period a year earlier, Mercury said.
The company employs more than 3,500 people in Wisconsin, Mercury said in its
petition.
-By Takeshi Takeuchi, Dow Jones Newswires; 202-862-9285;
[email protected]

(END) Dow Jones Newswires
02-23-04 1251ET
 
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Old 02-23-2004, 03:23 PM
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TulsaLarry
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KENNESAW, Ga., Feb. 23 /PRNewswire/ -- The United States International
Trade Commission (ITC) today voted to continue the investigation into the
allegation by Mercury Marine, a division of Brunswick Corporation, that
outboard engines from Japan are being sold at unfair prices and injuring the
domestic producers. The ITC vote came at the end of a preliminary
investigation to determine whether there is sufficient evidence of injury to
continue with the investigation. Because the threshold for this determination
is very low, Yamaha was not surprised. Indeed, it is very unusual for the ITC
not to continue an investigation at this stage.
Yamaha participated in the ITC's staff conference held on January 29 and
submitted voluminous information demonstrating that Mercury's problems stem
from its reputation for poor quality and its failure to build and market a
full line-up of four-stroke outboard engines. Yamaha also documented that the
low price leader in the market is a U.S. manufacturer not Yamaha or other
Japanese producers. These points were also made at the staff conference by
four industry leading boat manufacturers in the United States: Genmar, Godfrey
Marine, Grady White and Maverick Boat Company. Four independent dealers from
across the country confirmed that the same problems are affecting Mercury in
the repower market.
Commenting on the ITC decision, Yamaha Marine Group President Phil Dyskow
said: "This early decision simply reflects the low threshold imposed on the
ITC for continuing the case not the realities of the marketplace. Mercury's
problems were created by Mercury not by Yamaha or other Japanese producers.
Its attempt to get the U.S. Government to protect it from competition will do
nothing to address these problems. We believe that the full investigation, as
disruptive as it may be for the entire marine industry, will not support
Mercury's allegations."
The investigation will now proceed at the Department of Commerce which will
examine whether the Japanese producers are selling in the United States at
prices which constitute "dumping." If the Department finds dumping, then the
investigation will go back to the ITC for a final injury determination, one in
which Mercury will actually have to demonstrate injury. According to Dyskow:
"With the continued strong support from dealers and boatbuilders, we don't see
how the ITC could find in Mercury's favor in the final investigation. We
remain confident that the final result will be a good one for Yamaha and the
entire marine industry."

SOURCE Yamaha Marine
/CONTACT: Mike Walker, +1-800-248-9687, for Yamaha Marine/


(END) Dow Jones Newswires
02-23-04 1255ET
 
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Old 02-23-2004, 03:34 PM
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Quote:
Originally posted by TulsaLarry
...submitted voluminous information demonstrating that Mercury's problems stem from its reputation for poor quality and its failure to build and market a full line-up of four-stroke outboard engines...These points were also made at the staff conference by four industry leading boat manufacturers in the United States: Genmar, Godfrey Marine, Grady White and Maverick Boat Company. Four independent dealers from across the country confirmed that the same problems are affecting Mercury in the repower market.
Commenting on the ITC decision, Yamaha Marine Group President Phil Dyskow said: "...Mercury's problems were created by Mercury not by Yamaha or other Japanese producers. Its attempt to get the U.S. Government to protect it from competition will do nothing to address these problems... According to Dyskow: "With the continued strong support from dealers and boatbuilders, we don't see how the ITC could find in Mercury's favor in the final investigation....
Nothing like running to Daddy when things aren't going your way.

Classic case of getting lazy in the face of no (perceived) competition. Among independent boatbuilders (i.e. not owned or under contract to Mercury) Volvo Penta sold more stern drives than Mercury last year....
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Old 02-23-2004, 05:20 PM
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Hey MERCURY, time to STEP UP and make a BETTER product at a BETTER price! This is the SAME thing that happened with the Japanese auto makers. It forced the BIG 3 to make BETTER products at BETTER prices! Hey Mercury, remember US? We are the CUSTOMER!
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Old 02-23-2004, 05:31 PM
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Quote:
Originally posted by Shane
Hey MERCURY, time to STEP UP and make a BETTER product at a BETTER price! This is the SAME thing that happened with the Japanese auto makers. It forced the BIG 3 to make BETTER products at BETTER prices! Hey Mercury, remember US? We are the CUSTOMER!
Ummm....when do the US auto makers plan on doing that?
 
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Old 02-23-2004, 07:27 PM
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when do the US auto makers plan on doing that?
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Old 02-23-2004, 07:30 PM
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Yeah... why is it a #6 outdrive costs more than a new car?
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Old 02-23-2004, 07:46 PM
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Only because people are willing to pay it to them.
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Old 02-23-2004, 07:46 PM
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This is a perfect case of a traditional American manufacturer resting on their laurels and trying to hide from the competition. Amazing how capitalism and free markets expose weakness.

Either do it better, cheaper and faster than the other guy or face the consequences. If you can't do that, you better have the best, most innovative product out there.
 
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Old 02-23-2004, 08:02 PM
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I love Merc but they are in serious need of some competition in the High Performance market. I agree with Reed... #6's are just too expensive and with Ron... Because we keep paying for them..

At this point though, there is no competition so you kinda have to go with Merc.. It happened to them with the fishing OB's and will happen in the HP market if they don't step up.
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