Posts Tagged ‘CPSC’

Business Seminar Helps Chinese Manufacturers

February 21, 2011

Panelists’ Message: U.S. Consumers Want Quality and Value

INDIANAPOLIS (Feb. 21, 2011)— Chinese manufacturers Sunday received several tips on how to successfully sell powersports vehicles and equipment in the United States. The seminar here was put on by the Motorcycle Industry Council (MIC) and Advanstar Communications for Chinese exhibitors before a packed house at this year’s Dealer Expo.

Attendees heard from government and industry experts about what it takes to successfully sell powersports equipment in the U.S. market. Presenters included representatives of Sargent’s Motorsports Groups, the Consumer Product Safety Commission and Dealernews magazine. The program, entitled, How To Successfully Sell Powersports Vehicles in the United States, was moderated by Paul Vitrano, executive vice president of the Specialty Vehicle Institute of America (SVIA).

The key messages delivered by panelists were:

  • QUALITY PAYS. Attendees were told that American consumers value quality over cost and that they are willing to pay more for a better product.
  • OBEY THE RULES. Panelists, especially representatives of the CPSC, emphasized the importance of following U.S. government rules and regulations. “Government agencies balance their responsibilities of helping businesses with protecting consumers,” Vitrano said, “and they lean toward protecting consumers.” Penalties for breaking the rules are stiff and expensive, attendees were told.

Joe Delmont, contributing editor for Dealernews, told the audience that it’s important to build a brand, not simply try to export products to the U.S. under many different names to be sold by many different distributors. “That’s a prescription for failure,” he said.

Delmont, who provided a checklist of things to consider in looking at the U.S. market, told the audience that to gain 5% market share in a specific segment for a new China brand might take three years and cost as much as $300 million.

CPSC representatives Tanya Topka and Justin Jirgl described in detail the process of working with the agency that has been set up under the 2008 Consumer Product Safety Improvement Act (CPSIA). A key regulation developed by the CPSC under the law calls for action plans to be approved by the agency before a company’s ATVs may be sold in the U.S.

Gary Sargent, Sr., and Gary Sargent, Jr., have been selling and servicing powersports equipment in their Portland, OR. dealership for more than seven years. They emphasized the importance of building quality machines and backing them with quality parts.

Gary Jr., who runs the dealership’s service operation, told attendees that he prefers to use more expensive, quality parts on a repair job and be confident that it won’t fail.

“I want satisfied customers,” he said, “not unhappy customers who come back because a part failed.”   JD

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Will CPSC Database Cause Problems for Business?

December 17, 2010

Database of Consumer Complaints May Have Insufficient Safeguards

The Consumer Product Safety Commission (CPSC) is a federal agency charged with protecting the safety of consumers. However, as we’ve learned over the past year, it often does so with a misdirected dedication and zeal that causes unintended harm to small businesses. Case in point: The so-called “lead laws” that prevent the sale of ATVs and dirt bikes to kids age 12 and under.

Now, there’s another big project that could create more unintended problems for small businesses in the powersports industry— both retailers and manufacturers. It’s called the Consumer Product Safety Information Database, and it’s slated to go live in March, only about three months away.

While the majority of CPSC commissioners said the impact of the database on small businesses would be minimal, others disagree. Here’s CPSC Commissioner Nancy Nord, who voted against the final rule: “The majority makes the bald and unsupported assertion that this rule will have no impact on small business,…. This conclusion ignores examples we have in the agency of companies harmed by unfounded complaints made against products later determined not to be unsafe.”

The CPSC is nearly set to roll with this project— it recently voted 3-2 to publish the final rule in the Federal Register on Dec. 9, 2010; the rule becomes effective Jan. 10, 2011.

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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.

MIC Exec To Address Congressional Committee

April 29, 2010

Legislative Solution To Lead Ban Is Sought

Paul Vitrano, an MIC executive and the face of the motorcycle industry in battling Washington’s misguided ban of lead in toys,  plans to tell a congressional committee this morning why the ban doesn’t work and how it can be fixed.

Paul Vitrano

Vitrano, general counsel of the Motorcycle Industry Council (MIC), is scheduled to address the House Energy and Commerce Committee, Subcommittee on Commerce, Trade and Consumer Protection at 10 am ET. He’ll be talking about the need to amend the Consumer Product Safety Improvement Act (CPSIA) that became law in August 2008.

You can listen to a live audio webcast of the hearing by visiting the House Energy and Commerce Committee website: http://energycommerce.house.gov.

The CPSIA is enforced by the Consumer Product Safety Commission (CPSC), and has virtually eliminated the sale of ATVs and dirt bikes designed for children under age 12. This enforcement has resulted in the unforeseen consequences of children riding adult-sized ATVs—a potentially fatal situation— as well as the needless loss of millions of dollars in business for the struggling U.S. powesports industry.

Vitrano plans to testify that the CPSC has acknowledged the ban could result in children 12 years of age and younger riding larger and faster adult-size vehicles, a known safety risk. The  CPSC’s own studies show almost 90% of youth injuries and fatalities occur on adult-size ATVs, according to the MIC.

“The real risk to children comes from banning youth models, not from the lead in certain components,” says Vitrano.

Proposed legislation that could permanently stop the ban will be discussed at the hearing. “The only permanent solution is a legislative solution,” says Vitrano.

Vitrano says he plans to “urge the committee to provide as much clarity as possible in developing a legislative solution so that the CPSC is left with no doubt about Congress’ intent to ensure the continued availability of youth model motorized recreational vehicles.” JD

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

Proposed Rules Could Severely Restrict UTV Use

March 4, 2010

We have until March 15 to comment on these
CPSC rules that could virtually ban UTVs.

Have you commented yet? If not, you should.

Here are the details.

The CPSC’s proposed mandatory standards spell out how off-road vehicles must be designed, manufactured and used by riders. Meanwhile, at the same time that the CPSC is pushing its rules, the industry has been developing its own voluntary standards.

Paul Vitrano

If you think government mandated standards will benefit our industry, then you don’t have to do anything. If, however, you think perhaps the industry can produce more effective standards, now is the time to step up and make your thoughts known.

A unit of the MIC, the Recreational Off-Highway Vehicle Association (ROHVA), has created new tools for riders and dealers to easily submit comments. You can do it at http://www.rohva.org/anpr.

The sample letters urge CPSC to work with ROHVA to implement voluntary standards and to promote the safety rules for ROVs, also called SXS or UTV units. The page also contains explanations of ROHVA’s position on ROV standards and links to important documents.

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StoptheBan Movement Grows. Please Participate

February 17, 2010

Duane Taylor, director of federal affairs for the Motorcycle Industry Council, packages up the more than 4,000 letters urging the CPSC to drop its ban on youth ATVs and motorcycles. The letters were collected at the recent Dealer Expo in Indianapolis and will be delivered to the Consumer Product Safety Commission in Washington, D.C. In addition to the letters, more than 175,000 email messages were sent to Congrerss in one week urging that the ban be dropped. For more information, visit http://www.stopthebannow.com or click here. Please make your feelings known; your participation is vital.

MIC Battles Excessive Government Regulation

February 12, 2010

Proposed CPSC Regs Could Effectively Ban SXS Vehicles

The Motorcycle Industry Council (MIC) is gearing up to address new and existing federal regulations this year that pose a threat to the powersports industry, said Paul Vitrano, MIC general counsel, in a speech to the annual meeting of the MIC today.

Paul Vitrano

He noted that the U.S. powersports industry is still fighting the CPSC ban on the sale of youth ATVs and motorcycles that do not meet lead requirements spelled out in the Consumer Product Safety Improvement Act (CPSIA) of 2008. At the same time, he said the CPSC is developing regulations that would  “effectively ban” off-highway, side-by-side recreational vehicles (ROV).

“The time is now to stop the (lead-based) ban once and for all,” he said. Noting that the CPSC has asked Congress for the flexibility to lift the ban on youth ATVs and motorcycles, and that there are indications that Congress is willing to solve “the unintended consequences of this well-intentioned, but ill-conceived law,” Vitrano told the audience that Congress has to amend the CPSIA to “exempt or permit exclusions” for ATVs and motorcycles.

Vitrano urged the gathering to take advantage of the MIC’s extensive multi-media campaign at the Dealer Expo to contact their congressmen in Washington. “We need your help to drive your dealers, employees, and customers to stopthebannow.com, so they can send a message to Congress,” he said.

Meanwhile, CPSC has proposed such strict new requirements on SXS vehicles that they could “effectively ban ROVs as we currently know them,” said Vitrano. “We need to convince the CPSC not to adopt design restrictive mandatory standards,” he said, “but rather work with industry to maintain… voluntary standards and to address behavior that is causing crashes and injuries.”

The powersports industry, through its Recreational Off-Highway Vehicle Association (ROVA), an affiliate of the MIC, has developed a voluntary safety standard for ROVs, according to Vitrano. “Even though the data is clear that over 90% of people who are seriously injured on UTVs violated at least one safety rule,” the CPSC still proposed restrictive mandatory federal standards on this segment of machines, Vitrano said.

Vitrano called on SXS stakeholders to send comments to the CPSC before its March 15, 2010, deadline on proposed rulemaking. ROHVA has created a site, rohva.org/anpr, which can be accessed from rohva.org, to help individuals submit comments. The ANPR (Advanced Notice of Proposed Rulemaking) site provides a variety of easy-to-use tools for researching and commenting on the proposed rules. JD

Conact me with news or story ideas at 952/893-6876
or joe@powersportsupdate.com

Join MIC Campaign To Stop the Ban

February 9, 2010

MIC Launches Communications Effort at Dealer Expo

The Motorcycle Industry Council (MIC) again this year is offering a variety of  communication tools at the Dealer Expo so that attendees and exhibitors can urge Washington to drop the existing ban on the sale of youth ATVs and motorcycles.

“There is tremendous momentum for Congress to amend the Consumer Product Safety Improvement Act’s (CPSIA) lead content provisions to exclude youth vehicles,” said Paul Vitrano, MIC general counsel. “We need our voices to be heard now.”

The MIC’s multi-media communication offerings at Indy and on www.stopthebannow.com include:

  • Text. Use your cell phone to send the text message “StoptheBan” or “STB” to 30101. An SMS interface on http://www.stopthebannow.com allows the public to send StoptheBan text messages directly from the website.
  • Letter. You can add your signature to letters urging Congress to amend the CPSIA to exclude youth vehicles. Last year’s campaign generated over 5,000 hand-signed letters at the show.
  • E-mail. Computers are available in the MIC Business Center (Booth # 4508) so you can send e-mails to Washington calling for the ban on youth equipment to be dropped. Last year, more 1 million electronic messages were sent to Congress.
  • Call. A computer station in the MIC Business Center will identify key members of Congress, and a Skype account will enable you to call your congressmen directly from the computer.
  • Video. You can “Send a Video Message to Congress.”  A camera and filming booth will be set up in the MIC Business Center so that Stop the Ban messages can be created, posted online, and forwarded to Congress.

Vitrano said there are three key reasons why youth ATVs and motorcycles should be excluded from the CPSIA’s lead content provisions: (1) the lead content poses no risk to kids; (2) the key to keeping youth safe is having them ride the right size vehicle; and (3) the lead ban hurts the economy.

“MIC calls on Congress to draft legislation as soon as possible to either grant a categorical exemption for these products, as would be provided by H.R. 1587, a pending bill with 56 bi-partisan co-sponsors, or to give the CPSC the flexibility to do so,” Vitrano said.

Visit www.stopthebannow.com for background information, FAQs, and public outreach tools for the Stop The Ban campaign.  JD

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

Dealernewsblog Top 20 Viewed Stories of 2009

December 21, 2009

With 2009 quickly coming to a close, we’d be remiss if we didn’t tackle that trite-but-true end-of-the-year cliche known as the Top Whatever Stories List of (Fill in the year). Some of the time these stories are picked by readers, other times they’re chosen by editors/reporters. At Dealernewsblog we’ll opt for the former, based on the site visitor stats calculated by the good folks at WordPress.

We wish we had the energy and certitude to assemble a bevy of what we feel are the top powersports industry stories of 2009, but we’re kind of fat and lazy after snacking on too many holiday cheese logs, so we’ll leave this up to the cold analytics of the WordPress dashboard. For a more measured and thoughtful approach to the top stories, our own Joe Delmont is assembling a Top 10 list that should be appearing soon (link to come!).

And now, according to our blog stats, here are the Top 20 Dealernewsblog stories that viewers (like you!) clicked on in 2009:

  1. Harley’s Iron 883 – Nightster’s Younger Bro
  2. The Kymco Like — “Classic is one scooter …”
  3. Tragedy for Glen Helen Owner and His Family
  4. It’s Black Tuesday. Some Kid’s ATVs, Bikes Banned
  5. Harley Iron 883, You Are Soon to be Mine (for a while)
  6. Harley-Davidson Iron 883 Review
  7. KTM RC 125 GP Race Bikes for Sale
  8. Vendors That Compete Against Their Own Dealers
  9. 2009 Triumph Bonneville SE — Retro Riding
  10. Moto Guzzi V7 Classic – want one
  11. Top Dealer To Challenge CPSC Lead Content Rule
  12. Ducati Working on Adventure Tourer?
  13. High Fashion Gear for Women Riders? You Betcha
  14. H-D Iron 883 First Peek — On the Road to Review
  15. Dealer Expo Comments; Extra Product Coverage
  16. CPSC’s Recent Action Doesn’t Help Powersports
  17. Second Co-Founder Departs Baja Motorsports
  18. Small Stores Versus Big Stores
  19. New Polaris On-Road Division Raises Questions
  20. Roll Your Own Gear – Joe Rocket’s Hemp Jacket