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business to
exceeding Honda normal capacity. They invested higher than its internal
cash generation could support and leads the company financial debts
increased steadily. In response to this war, Honda used simple and
innovative counterattack strategy like implemented massive price cuts
and increases in promotional funds and inventories. The rivalry between
both of these companies alarmed U.S manufacturer Harley-Davidson when
there was a massive inventories of Japanese motorcycle worldwide and
they worried this would be dumped in the US market. Harley persuaded
the U.S International Trade Commission (IT) to give their import protection.
In January 1984, Yamahas no longer hold the fort because Yamaha has to
bear losses that were estimated to be 19 million. Yamahas parent
company, Nippon Gakki called for emergency board meeting to figure out
new strategy.