Yamaha Motors is set to raise $812 million in capital in order to pursue development and production of fuel-efficient engines, which includes hybrid and electric models. The focus of this new range of Yamahas seems to be destined for emerging markets, but may include technologies that could trickle into more established markets like the United States. Yamaha plans on raising this money by making 63.25 million more corporate shares publicly available for investment.
The release of this stock will boost Yamaha’s number of total shares outstanding to 22%, the first equity fund raising from the tuning fork brand since May 2007, where it raised ¥40.3 million. The move would create about ¥76.1 billion ($812 million) in additional market capitalization,which is hot on the heels from Yamaha posting a $2.3 billion loss in 2009.
In addition to the new motors and models for developing markets, Yamaha also plans to use the funds for restructuring costs, and making their current offerings more competitive in their respective market segments. The bulk of the raised capital however will be used to develop more fuel-efficient engines for motorcycles and boats, as well as electric motorcycles and motor-assisted bicycles.
The clock is now officially ticking for small electric motorcycle manufacturers before they see Yamaha competing with them domestically and abroad.