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FOCUS – Mini Quad and Kart News

ETON PREPARES FOR 2005
Based in Spartanburg, S.C., Eton America, LLC spent the past year adding 20,000 sq. ft. of additional warehouse space to its facility, arranged an agreement to offer a private label financing program, and most recently added four new small displacement quads to its line-up.
Steve Murph, vice president of Eton America, says sales are up for the company, and says a part of Eton’s recent success comes from its use of online technology.
“Everyone carries product, but the secret to our success is Etonamerica.com,” Murph told Powersports Business. “We have all of our parts, unit registration, warranty, ad slicks, etc., online. In a word, we are ‘paperless’.”
Murph says working in a real-time online environment has significantly improved operations; he says the company’s fill rate is 98%; parts are shipped same-day if ordered before 2:30pm EST; and warranties are processed within three days of filing.
Eton America is a unit of E-ton, owned by manufacturer Ji-ee. Specializing in manufacturing engine components and assemblies for some of the world’s largest vehicle OEMs – Honda, Yamaha, Mazda, Nissan, Isuzu, Renault, Cummins, among them – Ji-ee has facilities in both Taiwan and China. After years of entering the U.S. through an independent importer/distributor, Ji-ee set up its Eton America, LLC subsidiary to better serve the U.S. with parts ordering and warranty claims processing.
Eton America’s financing and leasing program, announced Sept. 15, is offered through Sparta Commercial Services, a New York-based independent financial services group. The offering will run via a customized financial services website built by Sparta exclusively for the nearly 700 E-TON dealers throughout the U.S.
“As outstanding as our growth has been over the last several years, we fully expect that this private-label program provided by Sparta will increase our sales dramatically,” said Eton’s Doug Mahan. Mahan said Eton expects consumers to be happy with the offering once they see the low interest rates offered through the program. Traditionally, most consumers would either purchase the product with a high interest-rate credit card or pay cash, he said.
For 2005, Eton released the Viper Jr. 40E, Viper 70, Viper 90Reverse and Viper 150R. These are offered in addition to the Viper Jr, Viper 50M, Viper 90 and 150cc Yukon II. Murph says the company now is planning to introduce a 250cc quad for next summer, and working to offer four-stroke engines on all of its 2006 models.
“We feel our units have been well received by the market simply because we listen to the needs of the customers,” Murph said. “The smaller ATVs have features such as remote start and remote kill; the larger units like the Yukon II have a tow hitch and electrical outlets for aftermarket accessories.”
Concerns?
“I can say that the low cost Chinese imports, particularly those sold in the Big Box stores such as PEP Boys, have affected some our dealers,” Murph offered. “I think that the chain stores have increased market awareness, which is good. However, they are setting a perceived price for the product that is not realistic for a quality product that is supported by a professional staff.”
For more information, visit www.etonamerica.com.

SPARTA ALSO DEALS WITH CMSI
Sparta Commercial Services (SRTA), the financial services group dealing with Eton, also signed a private label financing deal with CMSI, the importer of TN’G, Flying Tiger and Lambretta brands.
The CMSI financing program, announced Sept. 24, will serve a network of 200 dealers, allowing them to process all transactions online, receive credit decisions, download contracts ready for the customer’s signature, and provide an on-going customer database for dealers which will support their own marketing and promotional efforts.
“The light vehicle segment of the powersports market is the fastest growing, and Sparta is pleased to be bringing these quality brands into the fold, offering the kind of consumer financing options that only the bigger names have enjoyed thus far,” said Anthony Havens, CEO of Sparta.
Billing itself as the exclusive manufacturer and distributor of TN’G, Flying Tiger, and Lambretta vehicles, CMSI is based in Preston, Wash. It can be found on the Web at www.classicmotorcycle.com.

KYMCO INTRODUCES FINANCING, TOO
STR, Inc. – Motorsports Division (dba KYMCO USA) is a third vehicle supplier signed on to offer private label financing options through Sparta Commercial Services.
Based in Inman, S.C., KYMCO USA’s KYMCO Credit Services program, will enable customers to finance their purchases directly through any participating KYMCO dealer. Participating KYMCO USA dealers submit credit applications online, which are reviewed within minutes and, when approved, funded within 48 hours.
KYMCO Credit will lease or finance both new and used scooters, ATVs, and Venox model motorcycles up to 3 years old. Installment financing is available as the KYMCO Credit Sport-Loan. For customers who prefer leasing, KYMCO Credit offers a Purchase-Plus Program with lower payments early-on and a pre-set buy-out amount at the conclusion of the lease, which can be financed at that time. The Purchase-Plus Program is also referred to as a “lease-to-own” arrangement.

ANASTASIA RESIGNS FROM TWS USA
Rod Anastasia resigned as vice president of TWS USA, Inc., master importer of European LEM Motor mini cycles and mini quads, on July 1.
“Several opportunities, both personally and professionally, have come my way that I have no choice but to take advantage of, and unfortunately I cannot do that and still give the required effort and time needed to TWS and LEM,” Anastasia said. “I sincerely appreciate all of the support, effort, and enthusiasm the industry, the market, and my companies, have given to our products, and myself, in my time working here over the last four and a half years. It has truly been a great honor and achievement to bring LEM Motor to the forefront of the performance mini cycle market place.
TWS USA recently received a prototype of the 2005 LEM LX2F 50, a race unit also planned as a 90cc version for next year. For additional information about TWS USA, Inc. or LEM product, call 909/477-6614

ORVUSA OFFERS ACCESSORIES
Based in Cerritos, Calif., ORVUSA distributes the Boss brand off-road suspension kart.
Alex Chen of ORVUSA says the company has a line of accessories to equip to units, including gear for camping, hunting, fishing, canoe/kayaking and rock climbing.
“Our concept is to provide the outdoor sportsman with a functional yet compact vehicle that can take them and their gear with safety and dependability to places they may otherwise have difficulty reaching, and with minimal environmental impact,” Chen said.
ORVUSA says it offers dealers protected territory, a comprehensive warranty program, direct access to technical support via the Web or by phone, a complete stock of parts and accessories, special tier pricing, and national Advertising. For more information, visit www.orvusa.com.

OFF-ROAD ON ELECTRICITY
Child too young for a gas-powered quad? Interested in a niche product? Looking for a job? The Thunderbolt is an electric youth ATV available through Kearns Power Sports of West Bend, Wisc., a company also searching for dealer and manufacturer’s reps to join the team. “This product fills a niche in the youth ATV market,” says Steve Kearns, company owner. “These ATVs are an easy way to get kids excited about riding.”
Thunderbolt is powered by two 12-volt gel cell batteries and is capable of running up to 160 minutes on a single charge. The bike has an all steel construction disc brake, front dual shocks and a single rear shock. Safety features include an indicator flag, a single pulse strobe with LEDs, enclosed floorboards and an on/off switch requiring a key.
Of course, Kearns Power Sports also has more traditional 50cc youth quads – the two-stroke Matrix and four-stroke Stealth. Safety is engineered into these units with a speed limiter allowing the adult to match power to a child’s skill level, a tethered walk-behind cut-off switch, and a remote cut-off switch with a 250-foot range.
Kearns says profit margins with his vehicles ranges from 33% to 48% based on the model and volume discount. Suffested retail prices are $699 for the Thunderbolt, $999 for the Matrix and $1,099 for the Stealth. All three models come in a choice of five colors.
For more information, visit www.kearnspowersports.com

KOLPIN OFFERS YOUTH QUADS
For readers who may have missed the news, Officials at Wisconsin-based Kolpin Outdoors, Inc., a manufacturer and marketer of powersports and outdoor accessories, launched a new business unit to sell two small displacement Kolpin branded quads and the company’s ATV-related products.
Sold at Gander Mountain locations, the ATVs — 50cc and 90cc youth models — are to be marketed through a newly created company, Kolpin Powersports, Inc. Beginning in January 2005, Kolpin Powersports also will be charged with handling all Kolpin branded ATV Accessories.
Kolpin officials say the two companies — Kolpin Outdoors and Kolpin Powersports — share common ownership, but have no legal or subsidiary relationship. Both are located in Fox Lake, Wisc., but function out of separate facilities.
Kolpin Powersports currently has six employees on the payroll. The leadership team includes President Tom Lutes, Vice President of Sales Jim Schoenberger and Vice President of Product Development Doug Kortbein.
Sourced from Taiwan, the Kolpin 50cc (MSRP $1,599) and 90cc models (MSRP $1,799) are powered by two-stroke engines and feature speed restrictors, a safety/training tether, an extra large brake and whip flag.
“I think the primary reason we initiated this new venture stemmed from seeing consumer buying preferences,” Lutes told Powersports Business. “I believe we’re in the early phases seeing consumers electing to purchase their powersports products through what I’d call nontraditional retail outlets — not the traditional independent powersports dealers, but the larger retailer, big-box, mass-merchant type format.”
The Kolpin brand is already well-established in large outdoor and sporting goods stores, and Lutes said he believes the brand name will lend itself successfully to ATV product.
“We do believe we have the brand to take advantage of that consumer preference and to be successful,” he said. “Gander Mountain has been one of our top customers in the ATV accessory business, and so that’s why they are our primary retail outlet for the ATVs.”
The Kolpin ATVs will be sold alongside Arctic Cat quads at Gander Mountain. While Arctic only sells its product through the dozen or so Gander Mountain locations with full shop capabilities, Kolpin’s plan is to retail from 75 Gander stores.
“Gander has full shop capabilities at some of their powersports stores. They will provide the parts and service, and Kolpin will carry out service also, plus offer a full line of replacement parts, and back up the warranty in a way very similar to OEM type products,” Lutes said.
While Kolpin officials see retailing from Gander Mountain locations a good first step, Lutes said the plan is to introduce distribution to other retailers in 2005.
“Our product plan with this ATV inititaive is to go upstream with larger displacement size units in the adult category and to expand distribution to other outlets,” he said. “Throughout the rest of the year, and in 2005, you’ll see additional announcements regarding that expansion.”
For more information on Kolpin’s new Youth ATVs, call 877/956-5746 or visit www.kolpinpowersports.com.

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