$3,000,000 Paid by Yamaha Motor Corporation, USA and South Seas Cycle Exchange, Inc.

This page updated May 19, 2010

YAMAHA MOTOR CORPORATION, U.S.A. AND SOUTH SEAS CYCLE EXCHANGE, INC. CASE SETTLES FOR $ 3,000,000

The Mobile Source Enforcement Section, in conjunction with the Office of Legal Affairs and Office of the Attorney General for the State of California, have entered into a court approved Settlement Agreement in the amount of $3,000,000 with Yamaha Motor Corporation, U.S.A. (Yamaha U.S.A.) located in Cypress, California and South Seas Cycle, Inc. (South Seas) located in Honolulu, Hawaii.

This case involved the importation or delivery of non-California certified motorcycles to California residents that were subsequently registered or sold in California, which is prohibited by Health and Safety Code sections 43150 et seq. and Business and Professions Code Sections 17200 and 17500.

Under the terms of the agreement, Yamaha U.S.A. paid approximately $1.2 million to the Air Pollution Control Fund, approximately $500,000 to fund a Supplemental Environmental Project (SEP) to test the impact of ethanol fuel blends on evaporative and exhaust emissions from off-road gasoline engines, and approximately $300,000 to the Office of the Attorney General for attorneys' fees. Yamaha U.S.A. and South Seas are also enjoined and restrained from violating Health and Safety Code section 43150, et seq. for a period of ten years. The agreement does not constitute an admission of violation of any law or regulation.

In addition to the monetary penalties, Yamaha Motor Corporation, U.S.A. and South Seas Cycle Exchange, Inc. administered a vehicle purchase program to buy back and either destroy or remove any California motorcycles that were identified by the Air Resources Board in this case as not having been certified for use or registration in California.  The buy back program cost approximately $1,000,000.


Case Settlements

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