Posts Tagged ‘ATV’

Major Management Changes at CFMOTO

October 8, 2010

CFMOTO, the Chinese powersports company, has made several top level management changes to its U.S. subsidiary based in suburban Minneapolis, according to sources close to the company. The changes include beefing up the management team with outside professionals and a shift in responsibility for Lev Mirman, the former president of the U.S. operation, CFMOTO Powersports.

Mirman retains his equity position with about a 10% ownership of the U.S. operation. Under the new setup, Mirman will focus on legal and regulatory concerns involving CARB, DOT and EPA.

The company declined to discuss the changes in any detail when I contacted the CFMOTO office today.

The new management team is designed to increase efficiencies, and help the company expand its product portfolio into new areas beyond its ATV, scooter and motorcycle products, sources told me. CFMOTO has about 200 U.S. dealers, down from a high of about 215, but it has been adding dealers this year, the company said.

CFMOTO is one of the few Chinese manufacturers that has established its own subsidiary in the U.S., similar to the Japanese models in which the manufacture manages its own brand through its own manufacturing and distribution channel.  Most other Chinese and Taiwanese companies simply hire independent importer/distributor companies to handle their products in this market.

CFMOTO’s parent company,  ChunFeng Holding Group, Ltd., was established in 1989. The group has eight wholly-owned subsidiaries engaged in manufacturing of liquid cooled engines, scooters, motorcycles, vehicle parts and accessories, and investments. The largest engine it manufactures is a 500cc unit, and the smallest is 50cc. JD

Contact me with news tips and story ideas at
jdelmont@dealernews.com or 952/893-6876.

Surging Mower Sales: Good News for Powersports?

June 14, 2010

Joe Delmont

Now, that’s a good question.

If a homeowner is willing to pop for a $10,000 deluxe lawn mower, does that mean he’s likely to spend a similar amount for a motorcycle or a SxS vehicle this year? Or does it mean that the purchase of one fancy motor machine is enough for now? I don’t have the answer, but I just the fact that consumers are spending 10,000 bucks for a machine with more power and features than they need— really an unnecessary purchase— seems to bode well for our industry. It could be another positive sign of sales improvement over the next few months.

The Wall Street Journal today reports that after double digit decreases for the past two years, U.S. shipments of riding mowers are expected to climb more than six percent over the next two years. At John Deere, for example, sales are “far exceeding” forecasts, according to the story.

We’re not talking basic grass cutters here; the machines that sell have iPod compartments, chrome hub caps, comfortable seats, plenty of power and agility and sell for more than $10,000. “It goes well beyond cupholders,” notes a representative of the popular Cub Cadet brand.

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Italian Motorcycle/ATV Show Opens in China

June 10, 2010

Friday is Kick-Off Day in Beijing, China, for an innovative new international motorcycle and ATV show and conference driven by—hold on here— the Italian motorcycle industry. “EICMA China—The Motorcycle Show,” runs Friday through Sunday, June 13,2010. It’s the first ever show for EICMA outside of Italy. EICMA is best known for putting on the the world’s largest motorcycle show every November in Milano, Italy, when several hundred thousand consumers and trade representatives walk the floors looking at the latest machines and accessories.

The trade fair and conference being held at the National Agricultural Exhibition Centre of Beijing is an alliance of EICMA and two major Chinese partners: the Chinese Chamber of Commerce for Motorcycle (CCCM) and Genertec Advertising& Exhibition Co.Ltd. The goals of the event are to show foreign products to the Chinese market and to bring together representatives of several countries to discuss powersports issues relating to motorcycles and ATVs.

On the motorcycle side, the 6.5 hour China International Motorcycle Industry Summit will focus on emissions and on building the Chinese market for motorcycles. A motorcycle ban was instituted in Beijing in 1985 and expanded has been expanded to more than 170 cities in China. It’s estimated that the ban reduced sales by 4 million units annually.

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Feds Investigate Chinese IPR Theft

May 7, 2010

Hearing Scheduled for June 15, 2010.
It’s an Opportunity To Tell Your Story.

Another federal agency has joined the battle on Chinese manufacturers who are selling illegal goods in the U.S. First, the Consumer Product Safety Commission (CPSC) took aim at Chinese with its child safety provisions, then the EPA (Environmental Protection Agency) began grabbing containers of Chinese powersports products as they entered U.S. ports looking for emissions violations.

Now the U.S. International Trade Commission (USITC) has launched an investigation into the effects of intellectual property rights (IPR) infringement on the U.S. economy and U.S. jobs. The investigation was requested by the Senate Finance Committee.

The investigation will study violations of copyrights, patents, trademarks, and design registrations.

The ITC  will  publish its findings in two reports. The first will provide a description of the types of reported IPR infringement and China’s related policies on procurement of “indigenous innovation” which could limit the sale of U.S. products within China. This could be of special interest to U.S. companies such as Polaris and Harley-Davidson as they attempt to expand into the Chinese consumer markets.

The second report could be much more explosive. It will describe the size and scope of IPR infringement by Chinese companies and the effect of these actions on U.S. jobs and on the sales and profits of U.S. companies. In addition to Polaris, Harley and Arctic Cat, among others, these companies include U.S. operations of Japanese companies such as Honda, Kawasaki, Suzuki and Yamaha, according to an ITC official.

Depending upon how broadly the ITC wants to define U.S. companies, it could include most powersports companies doing business here, including OEMs such as BRP, KTM, Piaggio and Triumph, as well as aftermarket companies.

The report on types of IPR infringement is due by Nov. 19, 2010, and the second— on the impact of these infringements— is due May 2, 2011.

In requesting the investigation, Committee Chairman Max Baucus (D-Mont.) wrote that more than 80 percent of goods seized at U.S. ports for IPR infringements came from China. He also noted that intellectual property accounts for more than 40 percent of U.S. economic growth.

As part of the investigation, the USITC will hold a public hearing  on June 15, 2010. Written comments also will be accepted. All written submissions, except for confidential business information, will be available for public inspection.

I’ve been hearing for years about how Chinese manufacturers steal designs and produce replicas of popular machines and PG&A items made by U.S.,  Japanese and other manufacturers. Now is your chance to step forward and describe how your products have been illegally copied and how you have been financially injured.

If you’re concerned about dealing with the ITC but want to tell your story, contact me. I can get your information to the ITC.

Here is important information if you wish to submit comments to the ITC:

DATES
June 1, 2010: Deadline for filing requests to appear at the public hearing.
June 3, 2010: Deadline for filing pre-hearing briefs and statements.
June 15, 2010: Public hearing.
June 22, 2010: Deadline for filing post-hearing briefs and statements.
July 9, 2010: Deadline for filing all other written submissions.
Nov. 19, 2010: First report due to the Senate Finance Committee.
May 2, 2011: Second report due to the Senate Finance Committee.

ADDRESSES
All Commission offices, including the Commission’s hearing rooms, are located in the United States International Trade Commission Building
500 E Street SW, Washington, DC.
All written submissions should be addressed to the Secretary, United States International Trade Commission, 500 E Street SW, Washington, DC 20436.

The public record for this investigation may be viewed here.

ADDITIONAL INFORMATION
Project Leaders: Katherine Linton (katherine.linton@usitc.gov or 202-205-3393) and Alexander Hammer (alexander.hammer@usitc.gov or 202-205-3271) or Deputy Project Leader Jeremy Wise (jeremy.wise@usitc.gov or 202-205-3190).
Analyst, John Kitzmiller (John.Kitzmiller@usitc.gov or 202-205-3387).  JD

Contact me with news tips or story ideas at
jdelmont@dealernews.com or 952/893-6876.

Goldenvale Executives Admit Fraud

May 7, 2010

Two top executives of Goldenvale, Inc., one of the leading us importers of Chinese ATVs and other powersports equipment, reportedly have admitted falsifying emissions data on some of their motorcycles and ATVs but didn’t get any jail time as part of a plea bargaining deal.

Goldenvale owner Kening N. Ma to four counts of grand theft and Shirley Hyunae Ji, Goldenvale vice president,pleaded no contest to one count of grand theft, according to dailybulletin.com. The pair are scheduled to be sentenced to three years probation on July 20.

The two were arrested in March as reported by Dealernews. The executives of the company based in Ontario, Calif., were charged in a 70-count complaint with using fake certificates issued by the California Resources Board (CARB), among other offenses.

Goldenvale, which also operates a facility in Dallas, imports ATVs, dirtbikes, scooters and karts. The equipment was sold through a dealer network under the Roketa brand. JD

Contact me with news tips and story ideas
at jdelmont@dealernews.com or 952/893-6876.

Officials: Importer Used Fake CARB Certificates

March 15, 2010

One of Largest U.S. Importers of Chinese Machines Is Charged

Two top executives of one of the largest importers of Chinese and Taiwanese powersports equipment in the U.S. have been charged by California authorities with selling vehicles that did not meet that state’s emission standards, according to the complaint obtained by Dealernews.

Kening N. Ma, president and owner, and Shirley Hyunae Ji, vice president, of Goldenvale, Inc., were charged last week in a 70-count complaint. The complaint, filed in San Bernardino, Calif., Superior Court, charges the two executives and “another person or persons” with selling motor vehicles that had not been certified by the California Air Resources Board (CARB) to consumers and dealers in California.

The complaint charges the executives with multiple felony counts of grand theft of personal property (more than $400), possession of false certificates, and money laundering involving more than $448,000.

The complaint said that Ma had, and used, certificates known to be “false, altered, forged, and counterfeited.”

According to industry estimates, Goldenvale was one of the top two or three importers and retailers of Chinese and Taiwanese powersports equipment during the last several years.

Goldenvale is a diversified importer that operates facilities in Ontario, Calif, and Dallas, Texas. It imports several powersports machines, including ATVs, dirtbikes, scooters and karts. The powersports units were sold online and through a network of dealers under the Roketa brand.

The company also imported many other items, ranging from artwork and blankets, to  toys and cooking utensils.

Specific sales figures are not available from the closely held company, but import data and industry analysts believe that Goldenvale imported nearly 80,000 units in 2008. But that number dropped off sharply to only about 2,000 units last year as the company attempted to deal with a large unsold inventory of machines.

The company had big years in 2006, according to industry estimates, when it retailed nearly 50,000 ATVs, and again in 2008 when it retailed almost 50,000 scooters. Those numbers put Goldenvale in the top three importers/distributors of Chinese/Taiwanese ATVs in 2006 and scooters in 2008.

Last week’s arrests were the result of an investigation that took several years, dating back as far as 2005, according to court records. The investigation was a joint effort of CARB and the San Bernardino’s district attorney’s office.  JD

Contact me with story ideas and news tips at 952/893-6876 or
at jdelmont@dealernews.com.

Importers of Chinese Motorcycles, ATVs Arrested

March 14, 2010

Pair Charged With 70 Felonies; Certification Violations

Two top executives at Goldenvale Inc., a diversified California importer of powersports products, have been arrested and charged with illegally importing motorcycles, ATVs and other vehicles from China and selling the units in California without proper state certification.

Goldenvale president and owner Kening N. Ma and vice president Shirley Hyunae Ji were charged in a 70-count criminal complaint that includes conspiracy to commit theft, grand theft, and money laundering.

The pair were arrested last week, according to a published report in the San Bernardinto Sun newspaper.

The powersports products sold under the Roketa brand also include scooters, go-karts and other gas and electric-powered vehicles.  The company, which operates facilities in Ontario, Calif., and Dallas, Texas, also imports items ranging from artwork and blankets to toys and cooking utensils. The company imported fewer than 2,000 powersports units last year, according to industry estimates.

The powersports units were sold on-line and through a national dealer network.

Prosecutors said dozens of victims purchased vehicles from Goldenvale that were not certified by the California Air Resources Board (CARB), the newspaper reported. The amount paid by victims ranged from several hundred dollars up to $4,000 for each vehicle, prosecutors said.

The vehicles are illegal to operate in California if they do not have CARB certification.

Ma and Ji are named in a complaint filed in San Bernardino Superior Court. Ma faces one count of conspiracy, 33 counts of grand theft, 30 counts of possessing a false or blank vehicle registration and six counts of money laundering, according to court records.

Ji is named in the counts alleging conspiracy, grand theft and money laundering.

The certificates of origin allow consumers to register their vehicles with the California Department of Motor Vehicles.

In this case, the certificates of origin show a manufacturer name that did not manufacture the vehicles, according to the newspaper. The vehicles also were never certified by CAB, according to the newspaper report.

These arrests culminated a multi-year investigation of illegal activities, according to one CARB official.  JD

Contact me with story ideas or news tips. You may reach me at
952/893-6876 or jdelmont@dealernews.com

Are Consumers Getting Ready To Buy Bikes?

March 3, 2010

Pent Up Demand May Be Stronger Than We Thought.
Is a Bike Rebate Program Necessary?

Is there enough pent up demand to push consumers into buying a bike this spring? Maybe so, based on what happened with the government’s appliance stimulus program this month in Minnesota and Iowa.

But it may take an exciting promotion from OEMs to prime the pump.

In the last 18 months, consumers have been busy paying down credit cards and building up savings accounts. The savings rate has been the fastest in a decade. And January was a record 16th consecutive month of declining credit card debt; it dropped $1.7 billion to $864.4 billion, according to the Federal Reserve.

Now consumers may be ready to take a break from that fiscal conservatism and spend a bit of money.

Look at what happened in Minnesota and Iowa this month:  The two states ran through almost $8 million in government appliance rebate programs in less than a day.

Minnesota consumers were so excited about the retail program launched March 2, that they flooded the state’s dedicated phone lines and swamped its website. More than 25,000 persons signed up for the $5 million program in less than two hours, and by 10 am on the first day, there was a waiting list of 10,000 persons, when the program was shut down. That’s 35,000 persons jumping on the program that offered a $200 rebate on the purchase of an energy efficient major appliance such as a refrigerator.

I really can’t believe that 35,000 Minnesotans suddenly decided they wanted a new refrigerator or washer. I wonder if it’s more a case of WANTING a new appliance, rather than NEEDING one, and using the rebate as an excuse to dig into that fat savings account. And it’s not a freebee,  give-away program.

In Minnesota, a qualifying refrigerator is going to run you more than $1,000, so a consumer is still on the hook for close to $1,000 after sales tax, even with the rebate. Minnesota’s top rebate of $200 was much higher than many other states.

An energy-efficient refrigerator qualified for only a $50 rebate in Georgia, $75 in California and $100 in New York. Nearly $300 million in rebates will be available to consumers across the country through April.

The Minnesota story was much the same in Iowa where its $2.8 million program was exhausted in the first day.

Not all consumers liked the program, though, perhaps an indication of tight cash in some regions. New York had to extend its $18.7 million program and Michigan used up only about half of its $9.5 million in the first month of its program. Because of the state’s weak economy, it’ll take an estimated four months for Michigan consumers to sign up for all of the rebate money.

More Good News

Here are another couple of bright notes for retailers: Most retail sales reports improved in February over February 2009, despite heavy snowstorms for much of the month throughout the country. (Okay, February 2008 wasn’t such a hot month and it didn’t take great numbers to beat it.)

Another positive sign: the pace of home foreclosures slowed in February; it grew only 6% for the year, the smallest annual jump in four years, and was down 2% from January.

If the recent appliance rebate program was any indication, perhaps we’ll see consumers parting with some of those savings dollars and popping for a new bike or ATV soon. Now, wouldn’t that be nice?

I wonder, though, if the OEMs will have to prime the pump a bit to get consumers excited about spending money for a bike they way they were spending for appliances.  JD

Contact me with story ideas and news tips. You can reach me
at 952/893-6876 or joe@powersportsupdate.com.

MIC Promotes Use of Off-Road Vehicles in China

March 2, 2010

Participates In Italian-Chinese Trade Show Talks

When representatives of the Italian motorcycle industry announced last November that they intended to launch a major motorcycle show in  China, this year, it caught the attention of Tim Buche, head of the Motorcycle Industry Council (MIC), the U.S. association of motorcycle, ATV and scooter manufacturers.

“I suggested that there was good value in the MIC facilitating a dialogue on the evolving market for ATVs and similar products in China while I was at the EICMA show last November,” Buche told me last evening. Constantino Ruggiero, managing director of EICMA, agreed. And so the Americans began playing a significant role in putting together this year’s show in China.

EICMA is the huge annual motorcycle show held in Milano, Italy. EICMA is owned and operated by the Italian trade association of motorcycle and bicycle manufacturers and producers of aftermarket parts and accessories (ANCMA). It was founded in 1920 and has more than 170 members. For more information on ANCMA, click here.

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Aprilia Fastest Bike at Pikes Peak … Again

July 30, 2009

The formal results are in: Piloting a 2009 Aprilia SXV550, Davey Durelle was the fastest motorcycle up the hill at the Pikes Peak International Hill Climb on July 19.PikesPeak_logo

The Pikes Peak International Hill Climb, first held in 1916, features a course that climbs 12.42 miles, has 156 turns and starts at 9,390 ft. climbing to over 14,000 ft. Durelle completed the treacherous run in an astounding 11:48.649 minutes. It was his 13th personal victory at the event and the second year in a row he took the title of fastest motorcycle on the mountain.

Durelle finished a split second ahead of Gary Trachy aboard a 2008 KTM SMX. Both raced in the 750cc class.

PikesPeak1Durelle grabbed the hole shot and lead for the first two miles before Trachy made a pass for the lead. Trachy stretched his lead to five seconds before Durelle used the power of the SXV to close the gap in the wide open dirt section and re-passed him for the lead less then a mile from the summit. Durelle and Trachy battled side by side to the top finishing a mere .094 seconds apart – one of the closest finishes in the history of the event.

Davey Durelle is sponsored by Aprilia USA, Dunlop Tire, Arai, Spider Grips, Scotts Performance, Victory Circle Graphixs and Erico Motorsports (a Dealernews Top 100 dealer).

The fastest ATV on the mountain was a 2008 Honda 450 piloted by Michael Coburn with a time of 12:18.858 minutes.