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The Honolulu Advertiser
Posted on: Friday, January 25, 2008

Honolulu dealer, Yamaha to pay California $2 million

Advertiser Staff

Yamaha Motor Corp. USA and South Seas Cycle Exchange of Honolulu will pay $2 million to the California Air Resources Board to settle a 2005 lawsuit over the importation of 400 motorcycles that failed to meet California emissions standards.

The ARB's long-running investigation, which began in 2002, found that Yamaha USA, headquartered in Cypress, Calif., imported more than 400 illegal motorcycles, registered them to Yamaha USA in California, obtained state license plates and eventually sold some of them to state residents, according to a news release from the California agency. In most cases, these were 1999-2002 models that were in great demand and difficult to purchase in California. One dealer imported more than 200 and sold all of them to California residents.

While other dealers in the case settled earlier with the ARB, both Yamaha USA and South Seas Cycle Exchange refused until recently, the ARB said.