Yamaha to cut 2009 Japan motorcycle output-Nikkei

NEW YORK, Feb 25 (Reuters) - Yamaha Motor Co Ltd will cut Japanese motorcycle output by 24 percent in 2009 to the lowest level in about four decades as demand drops and inventories build, the financial daily Nikkei said in its Thursday edition.

The paper said production this year should be slightly over 260,000 units.

It said Yamaha has already decided to shut its main assembly plant in Shizuoka Prefecture and the parts plants that feed it for 10 days in February and March to reduce output by 13,000 motorcycles, and it plans to negotiate with labor unions for more work stoppages in the second calendar quarter of 2009.

Nikkei said domestic inventories have risen as demand has dwindled during the economy's downturn, and inventories of motorcycles made for foreign markets have exploded. "Stockpiles of U.S.-bound products are up 50 percent from normal, while inventories of goods for Europe have ballooned to twice the usual levels," the paper said.

It said Yamaha hopes its production cuts will bring inventories back into line by year-end.

Nikkei said Yamaha business segments making products aimed at industrialized countries, including outboard motors, are expected to produce operating losses of over 50 billion yen ($514.1 million) in 2009.

It said Yamaha will consolidate engine operations and materials procurement to try to improve profitability. ($1=97.2636 yen) (Reporting by Gerald E. McCormick; editing by Richard Chang)