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Yamaha, South Seas Cycle Exchange part of court-approved settlement

January 8, 2008
Filed under Features

Yamaha Motor Corp., U.S.A. and South Seas Cycle Exchange Inc. have entered into a court-approved settlement agreement for $2 million with the state of California, the California Air Resources Board reported Dec. 26.

The agreement does not constitute an admission of violation of any law or regulation.

Yamaha U.S.A. is based in Cypress, Calif.; South Seas in Honolulu.

The case involved importation or delivery of non-California certified motorcycles to California residents that were later registered or sold in California, something that is prohibited by state law, according to the California Air Resources Board.

Under the terms of the agreement, Yamaha U.S.A. agreed to pay approximately $1.2 million to the Air Pollution Control Fund, approximately $500,000 to fund a Supplemental Environmental Project to test the impact of ethanol fuel blends on evaporative and exhaust emissions from off-road engines and approximately $300,000 to California’s attorney general’s office for attorneys’ fees. Yamaha U.S.A. and South Seas are also restrained from violating the non-California certified motorcycle law for 10 years.

In addition to the fine, Yamaha U.S.A. and South Seas will initiate a vehicle purchase program to buy back and either destroy or remove from California motorcycles that have been identified by the Air Resources Board as not having been certified for use or registration in California.

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