Wednesday, July 14, 2010

Addressing the Powersports Problems of 2010

Addressing the industry problems of 2010

- I have gotten a flood of emails the last few days from dealers with issues with distributors, co-ops not being paid, distributors not paying for returned bikes, warranty lawsuits, lemon laws being broken, I can’t comment on half these problems, but what I will say is we will help you the dealership any way we can.

The best analogy I can give is when the building is on fire some people run and there are others that run inside to put out the flames. My video comment on this situation:

I want our dealers to know that even if we're not United Motors, Tank, Roketa or any of the companies responsible for the issues they are having we are still here to help to the best of our abilities. I field at least two to three calls a week from dealers or consumers wanting a warranty paid on a United Motors scooters. We have nothing to do with this unfortunately in states with strict lemon laws the dealers if not able to find parts or repair the unit like in Arizona are forced to give the consumer a new vehicle or their money back. 2009 saw so many distributors and dealers close that this problem has become a daily occurrence in our field of work for on-road vehicles. We strive to help the dealers out and get those riders back on the road and to help you The Dealer avoid any issues of this nature that might arise because a distributor left the marketplace.

I have watched this year as some companies have done everything possible to avoid any responsibility and not only sunk some of their dealers, but helped make the situation worse by selling retail or opening online stores for parts. Some discounted bikes after selling them at full cost to dealers. I'm human like everyone else so you see two types of players out there the guys running away and the guys running into the fire to help dealers, to expand, to grow and to make the most of the situation. So at the end of the day you can say why would you want to count a pile of United Motors parts? and if for no other reason you do it because that's what the market needs.

I have also commented and complimented industry leaders who have in a way thought me the proper way to do things. CF-MOTO USA has done an amazing job of looking for alternative ways to help their dealer network. I think people are overly critical without knowing the challenges a new upstart faces especially in a market where store credit lines and GE lines are continuously being cut. So this company has done the impossible and actually expanded the line in a downmarket. The fact that they keep sending out trucks, doing events, helping dealers with open houses makes it a brand that is still pushing. That's what dealers need in this market when others are retreating Lev, Kevin, Ivan, and everyone at CF MOTO USA keep pushing and dealers need to be aware of that.

I actually have to complement Erica Price for the suggestion last month of helping buy back older clothing from stocking dealers to help them stay profitable. We started this for stocking Armadillo dealers and I have to say they have been happy and many of them retail both Armadillo and Corazzo at the same time – one line working hand in hand with the other. Part of the reason is because of ideas like hers. Everyone at Kymco USA who not only worked overtime to help dealers out, but have dedicated their own personal time to travel (Look at the Scoot to Texas Promotion at Amerivespa,) this company has helped increase sales when sales are down. Literally everyone at that company Joe, Bruce, Rick even the CEO has made an effort to help their dealers survive the downturn and I can’t express how impressive that has been. I know Honda and Yamaha are the companies you should aspire to be, but Kymco gets an “A+” for effort in 2009 and 2010.

Life isn’t a smooth ride, it’s meant to be a rollercoaster and I have seen this all before. I have literally watched half a dealer network get wiped out after the tragedy of September 11, 2001. I have also seen the market surge with an influx of fly-by-night profit seekers during the boom of 2007. So this business goes in cycles. I might not have been around the moped explosion back in the 70s, but I will say history tens to repeat itself so we are due for an increase in sales thanks to oil. – Look at the Lloyds of London report from yesterday on the fact that gas prices and insurance companies are hedging themselves for the next oil surge. So hang in there sales are coming.

Regarding recent tragic events in the business we will do everything possible to find the cross compatibility for SYM and Carter parts. I have no doubt the company will come back stronger than ever in 2011. SYM is the second largest maker of scooters in Taiwan and they have a vested interest in the US market. They are ten times the size of other known Taiwanese brands in the US so they have the funds and the ability to come back. Carter makes an excellent gokart and our aftermarket parts are here to help.

We just acquired the Daelim Motors parts and will be working the entire month of July to add these to our sites and to help the dealers out there that are in need of support for the brand. I have no doubt that the US economy will come back, that gas prices are bound to go back up in 2011 and the dealers that remain will make a huge profit. Our way of life is unsustainable and Americans need to embrace motorcycling and alternative vehicles as part of the solution. MRP would like to be part of this general solution with parts from gas to emerging electric scooter brands.

We are working hard every single day of the week to add Diamo, Italjet, QJ, Keeway, Andretti, Benelli, Cubik, UM, parts to our website. We add to 20 to 40 parts per day, since January 2010 we have added over 6,000

new items to our website. Nobody in the USA has the number of SKUs MRP now has. So support your local dealer since our company is DEALER ONLY. We will drop ship for them so SUPPORT YOUR LOCAL DEALER.

We are the ONLY wholesale ONLY distributor in the USA and our goal is for you to get back on the road. So please follow the link to the repair manuals with part numbers, if you can’t find the part send us a picture, we will help you as best we can.




MRP distributes OEM parts for TNG (CMSI), select models of CF Moto, Daelim Motors Korea ( parts should appear on website by mid July) Malaguti of Italy ( Keeway Southeast (Keeway, Vento, QJ, Andretti, Yamati models), CPI Taiwan, Powersports Factory Brands PSF, Diamo, Cubik (matches OEM Vento part numbers), as well as QJ and ZNEN (who manufacture bikes for a variety of scooter importers) such as FlyScooters, Lance, BMS, Qlink models that were ZNEN corresponding to matching TNG parts.

On our site you can find parts for ZNEN, FLYSCOOTERS, LANCE POWERSPORTS, DIAMO, QJ, VENTO ( Yes Vento is out of business) United Motors ( these guys left the market as well ) Tank, GY6, QMB139, we have parts for CFMOTO, Linhai, GY6 QMI152/157 QMJ152/157 4-stroke engines, 250cc 4-stroke CN250 water-cooled 172mm engines, 50cc 4-stroke QMB139 engines. This engine is used on virtually all 49cc/50cc 4-stroke Chinese and Taiwanese scooters, 2-stroke 1PE40QMB Minarelli based engine, EUROPEAN LIQUID COOLED JOG Benelli, Malaguti, Italjet Minarelli LC - Like Aprilia, we also have Parts for scooters with 50cc 2-stroke D1E41QMB02, D1E41QMB, H1E41QMB and 1E41QMB model engines. This motor is used on many popular Chinese scooters including the Qingqi QMQT50-B2, Genuine Scooter parts for Genuine dealers you name it we have.

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