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www.PowersportsBusiness.com NEWS Powersports Business • April 8, 2014 • 5 4 • April 8, 2014 • Powersports Business NEWS www.PowersportsBusiness.com A Chinese powersports company and its related U.S. distributor have agreed to recall and replace fuel tanks that will better con- trol gasoline vapors in approximately 1,000 vehicles and take other steps to control pol- lution stemming from the illegal import of more than 12,000 recreational vehicles and highway motorcycles. These motor vehicles were manufactured in China and imported without the required cer- tification indicating that emissions would meet federal standards. CFMOTO Powersports, Inc., (a successor to CFMOTO America, Inc.) based in Plym- outh, Minn., and Zhejiang CFMOTO Power Co., Ltd., and Chunfeng Holding Group Co., Ltd., both based in China, will pay a combined civil penalty of $725,000. "Enforcing emission standards is a critical way we protect clean air for all Americans," said Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assur- ance. "The upgrades and changes required by today's settlement will help reduce harmful air pollution that can cause respiratory illnesses, aggravate asthma and lead to smog." In the settlement approved by the Agency's Environmental Appeals Board, EPA alleges that more than 12,000 highway motorcycles and recreational vehicles imported by the companies between 2007 and 2013 were not certified by EPA, as required by the Clean Air Act (CAA), to meet applicable federal emis- sion standards. Of these, EPA found that 993 vehicles had fuel tanks that did not operate properly to con- trol evaporative emissions, or gasoline vapors, and that approximately 1,400 vehicles were imported without proper emission control information labels. In addition to the penalty, the companies must institute a Recall and Fuel Tank Replace- ment Program to replace all uncertified fuel tanks with certified ones to prevent any excess gasoline vapors. The companies must also cor- rect the emission control information labels for those vehicles that are still within the con- trol of the companies. EPA discovered the alleged violations through joint inspections conducted with the U.S. Department of Homeland Security's Bureau of Customs and Border Protection and through a review of importation docu- ments and other information provided by the companies. CFMOTO Powersports, Inc. is a Minnesota corporation that holds certificates of confor- mity and that imports highway motorcycles and recreational vehicles manufactured by Zhejiang CFMoto Power Co., Ltd. and Chun- Feng Holding Group Co. Ltd., both Chinese companies. CFMOTO America, Inc. is a now- dissolved Michigan corporation that was the predecessor to CFMOTO Powersports, Inc. EPA filed an administrative complaint against CFMOTO Powersports in April 2013 and reached agreement on the settlement through an alternative dispute resolution process. PSB aftermarket," Larson said. Oftentimes Fox tries new ideas in the after- market segment, and the OEMs add the shocks to their models after seeing them in action. Customers are also welcome to send their Fox shocks that come factory back to Fox for upgrades, instead of having to buy a new set. In both aftermarket and the OEM side, the Powersports segment is performing well. Side-by-sides, not surprisingly, have been the biggest drivers of the growth. And though the bicycle division is Fox's biggest, the company sees the most opportunity in motorized vehicles. "We think between Off-Road and Power - sports, which we called powered vehicles, we think that has the most potential for growth in the future," Larson said. PSB Diagrams showing each step of assembly are seen on screens throughout the line. A sign reading "Everyone is an inspector" reminds employees of Fox's Watsonville, Calif., factory to pay close attention to each piece they're assembling. EPA fines CFMOTO $725,000 for illegal import of ATVs, bikes KTM REPORTS RECORD SALES YEAR IN 2013 KTM achieved its highest sales numbers in 2013, with 123,859 bikes sold worldwide, including those sold by Bajaj, KTM's partner in India. Unit sales were up 15.6 percent in 2013, helping the company achieve a turnover of €716.4 million. Among the highlights for KTM in 2013 were the launch of the 1190 Adventure and the 390 Duke. KTM also earned market share of 8.5 percent in Europe, despite a declining motorcycle market on that continent. For 2013, EBIT increased 49.5 percent to €54.9 million. EBIT margin grew to 7.7 per- cent, up from 6.0 percent in 2012. The OEM also increased headcount by 147, for a total for 1,849 employees by the end of 2013. In 2014, KTM expects further increases in sales and turnover, as well as an increase in market share. The OEM plans to invest €68 million on new development projects and the expansion of buildings and capacity. The production capacity at KTM headquarters in Mattighofen, Austria, is planned to increase to more than 100,000 units this year. BMW FEB. SALES RISE 18 PERCENT BMW Motorrad posted record sales in Febru- ary with 8,098 motorcycles delivered to cus- tomers worldwide, an increase of 18.3 percent over the year-ago month. Deliveries for January and February totaled 13,536, an increase of 16 percent. "Following the successful start into the new year we have achieved a significant plus of 18.3 percent in sales in February. With a total of 8,098 vehicles sold, this February is the fourth record-selling February in company history in succession. Worldwide demand was satisfy- ingly high," reported Heiner Faust, director of sales and marketing at BMW Motorrad. The R 1200 GS remains BMW's best- selling motorcycle, followed by the R 1200 GS Adventure and the R 1200 RT. In mid-March, the R NineT and the S 1000 R were slated to join BMW's lineup. Faust added, "Expectations for the season are optimistic based on our customers' positive reactions and due to the successful sales fig- ures of the first two months of the year." COLORADO DEALERSHIP SOLD TO INDUSTRY VETERAN HyMark Motorsports in Pueblo West, Colo., has been sold to Chuck Golinvaux, formerly a partner at a South Dakota dealership. Jack and Connie Thompson had owned HyMark Motorsports, selling Polaris ATVs and side-by-sides and KTM on- and off-road motorcycles for more than a decade. "After 12 years in this ever-changing indus- try we call the powersports business, we felt it was time to step aside and enjoy life, and make way for an energetic new owner to take the store to the next level," the Thompsons said in a news release. Golinvaux has more than 20 years of expe- rience in the automotive industry with an additional 13 years in powersports. After his business partner at a Black Hills-area Honda- Yamaha dealership retired, Golinvaux began looking for a new venture. "There were a number of 'wants' on my list, the first of which was a Polaris franchise. I am excited about the direction of Polaris, especially in the last five or six years. Getting KTM in the package was an unexpected bonus. Both brands are two of the more aggressive in the industry today, and they appear to have the corporate will to continually push the envelope in their respective segments," he said. "I also prefer the intermountain west, so the Pueblo- Colorado Springs area fits that requirement perfectly. Ours is a great region for the products we carry to demonstrate their competitive strengths. To our south and east, we are domi- nated primarily by the farm and ranch utility user, while to the north and west we possess a strong recreational rider customer base. "Jack and Connie are leaving behind a solid business reputation on which we can build our future. There is a lengthy list of loyal custom- ers to ensure the continued long-term success of HyMark Motorsports." JOHN DEERE LAUNCHES 2014 GATOR UPDATES The 2014 John Deere Gator line-up features updates that enhance the quality and improve the utility experience in the field, on the trails or around the jobsite. Using customer feed- back and market-driven research to improve the lineup, the updates focus on operator side retention, winch enhancements and specific performance tweaks to each model category. "The growth of the John Deere utility vehicle portfolio allows us to collect customer feedback from trails, farms, jobsites and other applications where the Gators are used," said David Gigandet, John Deere marketing man- ager, Gator utility vehicles. "Understanding what our customers need and want allows us to build a better utility vehicle year after year." Operator Side Retention (OSR) is now standard on all Operator Protective Structure (OPS) equipped Gator utility vehicles. A net OSR is part of the base configuration for the HPX, XUV heavy-duty, and mid-duty models. Stylized poly doors can be ordered in lieu of nets for certain models. The nets allow for easy one-handed operation, provide great visibility and allow for accessible ingress and egress from the utility vehicle. The stylized poly doors feature automotive style handles, color- matched panels and a 90 degree opening for easy entry and exit. A new Warn ProVantage 3,500 or 4,500 lb. winch increases pulling capacity up to 1,500 additional pounds over previous models to provide the reliability and grunt needed when tackling the trails or work around the land. The heavy-duty line of XUVs (625i, 825i, 855D) features digital display and operator station updates. The new digital display now includes a glow plug indicator light (diesel), a flashing water temperature icon and a power steering indicator (if equipped). New illuminated dash switches provide better nighttime visibility. An ag management solutions system (AMS) integration kit is also available for the heavy-duty models. This kit allows a customer to mount a StarFire receiver and GS display (both sold separately) to the Gator to assist with boundary mapping, flagging field obsta- cles and soil sampling. The highlight of the mid-duty line of XUVs (550, 550 S4) is an improved braking system that delivers 26 percent reduction in brake pedal effort and improved operator feedback while maintaining superior braking performance. All Gator XUVs are available in Realtree Hardwoods HD Camo, olive and black or John Deere green and yellow color schemes. There are also more than 100 factory and dealer-installed attachments available for customization. POLARIS CONSIDERS ENTERING MORE SOUTH ASIAN MARKETS Polaris India told the Press Trust of India that it's looking into entering more south Asian mar- kets, including Nepal, Bangladesh and Sri Lanka. Pankaj Dubey, managing director of Polaris India, said the OEM is looking to partner with distributors and dealers in those three countries in the coming year. Polaris India, a wholly-owned subsidiary of Polaris Industries Inc., has been operating in India for almost three years. In addition to seeking out more international markets, Polaris India is also in sales talks with government organiza- tions, including the Indian Army. GASGAS READY TO STEP ON THE GASGAS GasGas Motos of Spain is in the process of changing its business model as it tries to ramp up sales of its enduro and trials bikes in the U.S. The company will renew its commitment to the U.S. market by forming a U.S. subsidiary. In the interim, GasGas has appointed Jim Snell of Rising Sun Imports and Mark Berg of Gofast- ers Offroad to facilitate the company's opera- tions in the U.S. Snell has more than 20 years of experience with the brand. Berg has a dealership in Ortonville, Minn., and has been a part of the GasGas dealer network since 2007. Meanwhile, GasGas named Rod Overstreet as national sales manager. Overstreet, an off-road enthusiast, has 30 years of industry experience. "I am very honored in accepting this posi- tion and look forward to working Mark Berg, Jim Snell and the GasGas factory as we take the brand onto the next step here in the U.S. With the recent financial support of the Spanish gov- ernment, our partners in Israel, and now the exciting news of adding a quality line of 4-stroke motorcycles for 2015, the sky is the limit as to what we can accomplish," he said. PSB HOT NEWS CONTINUED FROM PAGE 3 The new 1190 Adventure contributed to KTM's record sales year in 2013. John Deere's heavy-duty line of XUVs, including the 825i, received a digital display and operator station updates for 2014. P01x07-PSB5-News.indd 5 3/27/14 10:46 AM