Mar. 31, 2008 – Hot News
March 31, 2008
Filed under News
Sale of National Distributor Global Complete
National distributor Global Motorsport Group, along with all of its U.S. operations, has been successfully sold to a Korean motorcycle and automobile parts manufacturer.
The manufacturer, Dae-IL USA, had a relationship with Custom Chrome dating back to 1982.
The sale includes Custom Chrome, Motorcycle Stuff, the company’s Jammer divisions as well as the stock of Custom Chrome Europe.
The distributor had previously been owned by Cerberus Capital Management, which became majority owners of the company in January 2006.
“Today, GMG becomes a new company built on long-lasting relationships, family and friendships that will last forever,” Sung Moon Kim, chairman of Dae-IL USA and new owner of Global Motorsport Group, said on the day the sale completion was announced.
Kim says Dae-IL will provide the necessary investment to achieve the high levels of industry fill rates.
Dae-IL USA builds parts for cars and motorcycles for companies such as General Motors, Daewoo, Mitsubishi, Polaris, Hyundai and Kia Motors, among others, according to a Global press release. Dae-IL USA has in the past supplied Custom Chrome with transmission parts and later, the RevTech four-speed transmission. Today that high-performance line has grown to include RevTech engines, transmissions and clutches.
Nace Panzica, one of the original founders of Custom Chrome and current Dae-IL USA president, is now the CEO of Global.
While addressing employees, Panzica said he intends to restore the company’s core competencies in customer service and innovative proprietary product lines and return the company to its position as an industry leader.
Panzica also discussed his confidence in Motorcycle Stuff and Custom Chrome Europe.
“Through challenging circumstances, (Custom Chrome Europe) has remained an outstanding performer and clearly Motorcycle Stuff represents a tremendous opportunity in the metric market,” said Panzica.
Distributor Wins $45 Million Lawsuit vs. Manufacturer
A U.S. powersports distributor has won a $45.6 million verdict against a Taiwanese manufacturer in federal court.
A U.S. District Court judge for the Northern District of Texas said the Taiwanese manufacturer, Dinli Metal Industrial Co., breached a distribution agreement with Dinli USA. The judge ruled the manufacturer failed to follow through on promises made to the distributor in providing warranty parts and providing vehicles that passed regulatory standards, including EPA, DOT and CARB standards. In fact, since January 2006, no Dinli Metal products have met EPA, DOT or CARB standards, and the manufacturer has failed to provide proof of such certification, according to the federal court’s ruling.
The court also ruled Dinli Metal failed to accurately describe the seriousness of a wrongful death lawsuit that was brought against the manufacturer near the time of the distribution agreement. The lawsuit involving a defective Dinli Metal ATV product resulted in a $3 million verdict against the manufacturer.
A press release from Dinli USA said Dinli Metal has not appealed the federal court’s ruling. The press release also said while collection of the judgment is uncertain, Dinli USA still holds exclusive distribution rights for any products made by Dinli Metal for the U.S. market.
Dinli Metal manufactures products for its own brand as well as other brand names. For more information on Dinli Metal, go to www.dinliglobal.com.
Transportation Secretary Seeks Helmet-Use Lobbying
On March 6, U.S. Transportation Secretary Mary Peters reaffirmed her desire to lobby states for mandatory helmet-use laws in testimony before the U.S. Senate Appropriations Committee Transportation Subcommittee according to a statement March 12 from the American Motorcyclist Association.
Peters’ testimony follows letters she sent in February to U.S. House and Senate leaders urging Congress to allow states to divert federal money away from motorcycle safety training and awareness programs and instead push for mandated helmet use.
Under federal law, the U.S. Transportation Department is barred from lobbying for or against specific state laws.
“I support giving the information to states so that they can act on those laws,” Peters testified.
Maui Dealership Changes Hands
Maui Motorcycles was purchased in March by dealership owner Ron Perry. The Maui store has been renamed to Cycle World Maui. Perry’s daughter, Tiffany, is the store’s new general manager.
Tiffany Perry, who worked previously at Honda World in Salt Lake City, is seeking to become dealer principal within five years, according to a press release.
The Maui store now has a larger showroom area for its Honda, Yamaha nd Suzuki inventory. Tiffany Perry also has incorporated new service bays and tools for the technicians. psb