Posts Tagged ‘SVIA’

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

Second EICMA-China Show Set for July 2011

November 4, 2010

Seen as an exchange of commerce at the global level

MILAN (Wednesday, Nov. 3, 2010)— The second annual EICMA-China motorcycle show has been scheduled for July 2-4,2011, at the China National Convention Center in Beijing, show organizers said here today.

Plans for the show were announced at a press conference conducted by the event’s planners: CIME (China Italy Motorcycle Exhibition), a joint venture of EICMA, the China Chamber of Commerce for Motorcycles (CCCMA) and the Genertec International Advertising & Exhibition Company.

This year’s show was held last July in Beijing and drew 130 exhibitors and about 45,000 attendees. More than 200 exhibitors are expected to participate in next year’s show, said CCCM’s Bingnan Chen.

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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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Brett Smith Named Head of Baja Motorsports

January 28, 2010

Former Custom V-twin Executive Leads Chinese Importer/Distributor

Brett Smith, former president of S&S Cycle, one of the leading names in American motorcycles, has been named head of  Baja Motorsports‘ U.S. operations. Smith currently is traveling in China where he is visiting Baja factories and component suppliers.

Brett Smith

I’ll be providing more information on this major move when Smith returns to the U.S. and gets settled into his new position. In the meantime, here is information on Smith and Baja in a Q&A session that I developed with Smith.

Baja Motorsports is based in Tempe, Ariz., where it operates a 70,000 sq. ft. parts, service and warehouse/office facility. It sells Chinese-made powersports equipment primarily through big box retailers such as Pep Boys. Service is provided through a network of some 1,000 independent service shops in North America.

Baja was launched in 2004 by Richard Godfrey, president and CEO, Jennifer Andrew, vice president of operations/CFO, and Ryan Daugherty, vice president of sales and marketing. In the first year, Baja posted sales of $6.5 million.

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CPSC Ban Blocks Kid’s ATV Training

May 13, 2009

The CPSC ban that prevents the sale of ATVs made for kids 12 and under is causing a number of unintended problems, not the least of which is that THERE IS VIRTUALLY NO RIDER TRAINING AVAILABLE for youths.

The Specialty Vehicle Institute of America (SVIA) and the Motorcycle Industry Council (MIC) noted today (May 13, 2009) that trainers and machines no longer are available.

This affects individuals and groups such as the 4-H.

Here’s the problem with this: Kids can’t purchase appropriately sized machines so there is an inclination to ride larger, more powerful, machines designed for adults. And now they can’t even get rider training to help them in this dangerous situation.

The CPSC’s ban stems from the poorly-written Consumer Product Safety Improvement Act (CPSIA) enacted last year.

Amendments to the law are needed to clarify the confusing safety issues/enforcement spelled out in the law. JD

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


Latest CPSC Action Simply Is Not The Answer

May 5, 2009

Two-Year Stay of Enforcement Doesn’t Solve Problem

Congress Should Fix Poorly-Written CPSIA Law


joedelmont

Joe Delmont

The CPSC’s recent promise not to enforce for two years a legal ban on the sale of kid’s ATVs, dirt bikes and snowmobiles and related parts, garments and accessories just doesn’t cut it. I’m sorry, but the move is woefully inadequate.

The vote Friday by commissioners Nancy Nord and Thomas Moore is simply the latest step in this silly dance between Congress and the Consumer Product Safety Commission. The awkward two-step is called the Consumer Product Safety Improvement Act (CPSIA) that was passed last year.

The dreadful legislative effort bans the sale of toys designed for children ages 12 younger that fail to meet several safety standards. The lead limit is 600 parts per million in parts that are accessible to children. The ban became effective Feb. 10, 2009.

Congress says the law gives the CPSC authority to grant exclusions where appropriate— in the case of brake cables, for example. The CPSC responds by calling the law poorly written, and says it is unenforceable.

Retailers and manufacturers from many industries are caught in the middle.

Today, the situation is in a shambles. Some powersports manufacturers are selling products that have been modified or reclassified for youngsters aged (more…)

ATV Ban Could Cost $1 Billion This Year

February 24, 2009

That’s About $3 Million Every Day the Ban Continues

Here’s a nice round number that the CPSC (Consumer Product Safety Commission) might want to think about when it considers whether or not to drop the ban on kid’s ATVs and motorcycles: $1 billion.

That’s one estimate of the impact on the powersports industry if the ban were to last throughout 2009. It was put together by the Motorcycle Industry Council (MIC), the industry trade group based in Irvine, Calif.

“The potential losses for the powersports industry are massive at a time when this country cannot afford additional economic losses,” says Paul Vitrano, general counsel for MIC and its partner organization the SVIA (Specialty Vehicle Institute of America). “With these vehicles sitting in warehouses instead of on showroom floors, the related sales of most protective gear, accessories, and parts and services are virtually non-existent. Thousands of small businesses across America are impacted by this ban.”

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CPSC Blocks MIC Lead Content Petition

February 17, 2009

The Consumer Product Safety Commission (CPSC) has denied the motorcycle industry’s request for temporary relief from the lead content rule covering children’s toys that became effective Feb. 10, 2009, saying it didn’t have authority to grant that relief.

The petitions filed by the Motorcycle Industry Council (MIC) and the Specialty Vehicle Institute of America (SVIA) sought temporary exclusions that would have provided an opportunity for powersports companies to clear out inventories that do not meet the new standards.  The CPSC now will consider the MIC/SVIA submissions as it finalizes its rule-making for granting permanent exclusions (more…)

My Guess: CPSC Will OK Sale of Kid’s ATVs

February 5, 2009

Dropping Kid’s Quads Doesn’t Help Anybody.

Agency Wants To Provide Relief

After closely following the growing industry frenzy over the possibility that we won’t be able to sell kid’s ATVs  after Tuesday, I’ve come to one inescapable conclusion:

The CPSC is not going to prevent the sale of kid’s ATVs next week.

There’s a whole fistful of reasons why the big agency isn’t going to shut down sales of ATVs to kids. And there are enough loopholes and exceptions in this poorly written law for the commissioners to wriggle through, if they wish to do so.

But here’s the bottom line:  It’s more dangerous for kids to ride adult size machines than to ride smaller machines containing lead that could hurt them if they eat the stuff. Like chewing on a battery terminal or a steel frame or a valve stem.

Which is more likely: A kid chomping on a battery cable, or a small child rolling an adult size ATV? Isn’t that a no-brainer?

So, even though the Consumer Product Safety Commission (CPSC) can’t change the Feb. 10, 2009, deadline— only Congress can do that— I’m betting that you see the commissioners take action that avoids halting sales next Tuesday. You might see that action as soon as tomorrow.

Last evening, a CPSC spokesman avoided making a flat out statement that sales of kid’s quads would be permitted next week, but he came pretty close. 

“The availability of youth model ATVs is critically important to CPSC,” Scott Wolfson told me. “We are an agency that has investigated numerous deaths of young riders who jumped on adult size ATVs.  We want to protect against these tragedies by having appropriately sized youth models that are available for parents to purchase for their children.”

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MIC/SVIA Lead Fight Against CPSIA Lead Rule

February 4, 2009

Join Other Manufacturers In Seeking Deadline Change

The MIC is moving aggressively to convince the safety police in Washington that manufacturers and retailers need some real breathing room regarding the high visibility “lead content” rule as it applies to products made for kids.

We’re talking here about the implementation of the Consumer Product Safety Improvement Act (CPSIA) that became law last August. The law prohibits, for sale to children, products that contain excessive amounts of lead after Feb. 10, 2009.

There are two provisions in the law, one covering lead paint and the second covering lead content in the total product. The content provision is especially difficult because it applies to items such as steel frames, valve stems, batteries and cables, etc.

Last week, the MIC and its sister organization, the Specialty Vehicle Institute of America (SVIA), wrote to the CPSC explaining that the agency should exempt certain materials from the law. “Because small amounts of lead are unavoidable,” wrote Paul Vitrano, executive vice president and general counsel of the SVIA, “the (member) companies will need relief from the CPSIA requirements in order to continue to sell these products on and after Feb. 10, 2009.” CPSIA refers to the law itself, the Consumer Product Safety Improvement Act.

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