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Rivals Honda, Yamaha to partner on scooters in Japan

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Honda Motor's Kumamoto factory   © Reuters

TOKYO -- Japan's Honda Motor and Yamaha Motor will join forces in motorcycle production and development, a move that will see Honda manufacturing scooters for its biggest rival in a shrinking domestic market.

Their fight for Japanese dominance in the years around 1980 turned so bitter it became known as the HY War. The two companies released several dozen models a year between them during that time, heavily discounted to try to capture market share. Both were saddled with unsold inventories as a result.

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