Yamaha to End Side-by-Side Production in Newnan

Yamaha Motor Manufacturing Corporation will end side-by-side production at its Newnan plant, affecting about 100 full-time positions as the company restructures the facility around other product lines.

A side-by-side is a small off-road vehicle with a steering wheel and seats arranged next to one another, unlike an all-terrain vehicle, or ATV, which is typically ridden with the driver straddling the seat. Side-by-sides are used for recreation, trail riding, farming, ranch work, emergency response, and other utility purposes.

Yamaha will stop producing side-by-sides in Newnan on August 4. Temporary staffing levels will also be reduced, according to information provided by Yamaha ahead of the company’s announcement.

Yamaha officials stressed that the Newnan plant is not closing and that the company is not leaving Coweta County.

“We’re not going to stop what we’re doing,” said Kristin Webb, YMMC manager of communications and corporate social responsibility. “We will still remain one of Yamaha’s largest manufacturers, still being the largest one in the United States.”

The Newnan facility currently employs nearly 1,700 people. Webb said the workforce will fall to just under 1,600 following the changes.

The broader restructuring will affect approximately 300 positions globally, including an estimated 200 full-time roles across the United States and Japan, as well as changes to temporary staffing and the reassignment of some employees.

Changing demand for side-by-sides

Yamaha said the decision was driven by evolving customer demand, declining sales in some side-by-side categories, and increased supply-chain and production costs.

The company is not exiting the side-by-side business. Instead, it plans to focus future development on the growing multi-purpose segment.

Scott Newby, who handles ATV and side-by-side communications for Yamaha Motor Corporation, said demand has declined in the recreational and sport categories that had been a major focus for the company.

“With the future side-by-side that we will have, we’re going to focus more on that multi-purpose segment after this, and that is a very growing category right now within the side-by-side business,” Newby said.

Yamaha has not yet announced where its future side-by-sides will be manufactured. Newby said the company expects to release more information about its future plans within approximately a month.

Some of the employees affected in Newnan currently work on the side-by-side production line.

“We realize this was a very difficult decision,” Webb said. “It’s impacting 100 people, and those decisions aren’t made easy.”

She added that Yamaha recognizes the effect the job losses will have on employees, their families, and the larger community.

“We still want to remain committed and treat each individual with dignity, respect, and compassion,” Webb said.

Yamaha said affected employees will receive resources and support during the transition.

New focus for Newnan production

The company plans to shift Newnan’s manufacturing, engineering, and management resources toward ATVs, golf cars, and personal watercraft.

Yamaha currently produces ATVs and golf cars on the same manufacturing line. Under the planned reconfiguration, each product will have its own line, Webb said.

That change is expected to simplify production for employees and allow Yamaha to increase ATV output.

Newby said the ATV category is performing well and that dealers have requested more vehicles than the Newnan plant has been able to produce at its current capacity.

“With these changes, that will allow us to increase our production, which means that we can meet more of that retail demand and dealer demand too,” Newby said.

The company is investing an additional $4 million in the Newnan plant as part of the transformation.

The investment will include a new facility layout, modernized manufacturing equipment, advanced technology, workplace safety improvements, facility upgrades, and expanded production capabilities.

Webb said the new layout should also make production safer and easier for employees who currently must learn to work with more than one product on a shared line.

Yamaha has not committed to rehiring any of the affected employees once the facility changes are complete. When asked whether positions could eventually return as production expands, Webb said that was possible but could not be predicted.

“I just know what we’re doing today and tomorrow,” she said.

Nearly 40 years in Coweta County

YMMC opened its Newnan facility in 1986 and began production in 1988. Side-by-side production began at the Newnan plant in September 2002.

The facility has grown into one of Coweta County’s largest private employers and remains Yamaha’s largest manufacturing operation in the United States.

According to Yamaha, YMMC has paid more than $40 million in taxes since establishing its Newnan operation.

The company also reports that more than $1 million has been donated to local schools, nonprofit organizations, civic initiatives, and community programs.

Those contributions have included STEM camps, the Coweta Grand Prix, disaster relief and recovery following the 2021 EF4 tornado, volunteer projects, and local economic development efforts.

Approximately 30% of Yamaha’s American suppliers are located in Georgia, with several based in the metro Atlanta area, according to the company.

“For us, it’s about helping to strengthen the local economy, our community partnerships, and we want to continue with that investment,” Webb said.

She said Yamaha wanted local residents to understand that the reduction in jobs and end of side-by-side production do not signal a departure from Newnan.

“The most important thing is we’re not closing,” Webb said. “We’re not going anywhere.”