China trip eye-opening for dealers

‘Over the top’ all-access best describes CFMOTO Pioneer Club in Hangzhou

In what became a roving 20-group of sorts — first aboard an afternoon cruise of the famously beautiful West Lake in Hangzhou, then while learning about the silk trade, and finally in the back alleyways of Shanghai — the CFMOTO Pioneer Club Dealer Meeting in China provided more than a dozen U.S. dealers with a trip of a lifetime.

The cordial group of dealers, many meeting for the first time as part of the trip, shared business ideas and experiences with each other on planes, buses and tourist sites — and at the CFMOTO factory. But all of them were confident in at least one aspect of the future: they’ve found a gem of an OEM in China, and they’re ready to pass on the brand’s strengths to their customers.

“This trip was over the top,” said David Wiles, co-owner of South Bay Motorsports in Chula Vista, Calif. “Where will the owner of a factory dine with you each night, and bring you after dinner drinks to your table?”

Wiles, whose mammoth San Diego-area dealership also sells Ducati, Triumph, Honda, Yamaha, Kawasaki, Suzuki, Polaris, Victory, Can-Am and Sea-Doo, was not alone in his praise for the hospitality and access provided by CFMOTO owner Mr. Lai.

Tracey Harmon, for instance, had visited the factory once before in 2012, but as a prospective dealer. So when the former single-line Polaris dealer took on the Chinese brand in March 2013, he had a late start on the 2013 sales season. Didn’t matter. Harmon, general manager at Alaska Power Sports in Anchorage, claimed the brand’s No. 1 dealer award in only nine months of sales.

Factory wows ’em

For dealers like Harmon, being welcomed to the factory prior to signing on spoke volumes. When he and the others arrived, they once again found the 1.6 million square foot manufacturing facility in top form. Marble floors and a grand showroom-type design featuring its entire product lineup of motorcycles, scooters, ATVs and side-by-sides greet visitors. Bikes with 125cc displacement engines and a sport boat, all for the Chinese market, also had dealers talking.

The Grand Hall, an exquisite meeting room adorned with more marble and equally appointed audio and video technology, was much more resplendent than the dealers in attendance had expected. Six plants — two-wheel assembly, four-wheel assembly, machining, engine
manufacturing, painting and frame — were abuzz with activity. It’s all the result of more than 30 years of manufacturing success, thanks initially to Mr. Lai’s production of the country’s first liquid-cooled engine for the scooter market. The company now employs 1,300, including
120 engineers who design engines ranging from 125cc to 800cc. More new products are on the horizon. No other OEM in the world, one executive described, offers such a robust engine platform.

As one dealer aptly described, “This is a powersports manufacturer that happens to be located in China, not a Chinese manufacturer. There’s a difference.”

And when they saw the new trail-ready ZForce 800EX side-by-side and its $10,499 MSRP greeting them as part of the 2014 lineup, they were giddy with delight: “We could sell these all day long,” another said.

Doug Lister, owner of Planet Power Toys in Lindon, Utah, took full advantage of the chance to see the factory and ask questions about any topics he could muster.

“The factory was even more impressive than I had expected,” said Lister, who sells other Chinese brands among his mix of products that includes new and pre-owned boats and pre-owned RVs, scooters and side-by-sides. “The fact that the motors are built completely by CF, and not just assembled from parts acquired from various factories, as is the case with major competitors, is valuable information. You cannot walk away from this trip and not understand that CF is a first class operation, not only their production facilities but in the manner they attended to us, as dealers.”

Lister found the “superior profit margins” and “excellent spare parts availability” from the U.S. office in Plymouth, Minn., as other brand assets.

“And the models projected for 2015 will make the mix even better.”

Action-packed adventure

The itinerary for the honored dealers began and ended with a day-and-a-half of travel as part of a six-day trip, so there was little time for rest upon touching down in Shanghai. Dealers were bussed to Hangzhou, located 120 miles southwest of Shanghai and home to the CFMOTO factory since 1989.

Dealers were welcomed with a daylong trip to see the tourist sights of Hangzhou, beginning with a cruise to experience the natural beauty of West Lake and its gardens. A stop followed at the China National Silk Museum before dealers worked on their bartering skills at the pedestrian mall along Hefang St., where many dealers sampled peanut cake, purchased green tea and took photos with the laughing Buddha sculpture.

Two days of factory tours and meetings with product specialists and other executives followed before the dealers embarked on a trip to Shanghai that began with lunch atop the Oriental Pearl TV Tower and its photo-friendly glass-enclosed observation deck. More shopping and a visit to the Bund along the Huangpu River followed, before the most interesting shopping of all occurred at the Yuyuan Bazaar, where dealers could be found making transactions in the back alleys. The Lo Bo Lang restaurant, in the center of the shopping area, provided an ideal end to week. And just to say they did it, many dealers hopped aboard the magnetic levitation train to the Shanghai airport for their last hurrah, reaching speeds of more than 300 kph.

And while the week brought plenty of memories for the group, the access to the CFMOTO factory and its employees left an indelible mark on most.

“I was very impressed with the factory. In comparison to the other factory tours I have been on, this was as modern and clean and well run as I have ever seen,” said Steve Ertle, owner of Tejas Motorsports, which also carries California Side Car, KTM, KYMCO, Suzuki and Yamaha. “I really appreciate CFMOTO and Mr. Lai wanting to improve his business by taking our suggestions and criticism. It would appear that they have landed on a North American sweet spot in the sport UTV class. I think their product is perfect for us not having Polaris and maintaining margin is important to them to keep good dealers. I am very excited for the future with CFMOTO. It feels like we have gotten in at just the right time and we will be able to ride the wave up for a change.”

Steve Buttorff, owner of Buttorff’s Yamaha/Kawasaki in Hartleton, Pa., has been in business since 1971. The trip allowed him to get a first-hand look at the engineering that goes into the manufacturing process at the factory.

“I was overwhelmed with the hospitality we received from CFMOTO and Mr. Lai,” he said. “It was a trip I will never forget. I was very impressed with the factory. It misspells many of the stories and rumors you hear about what to expect at Chinese factories. We got a chance to be right there on the cutting edge with the product engineers with suggestions on problem solving and improvements. And from what I could see they were eager to hear from us. I think they are on the right track with future product and for me they are spot-on when it comes to off-road.”

Matt Maschmann, general manager of Maxim Honda Yamaha in Allen, Texas, made some lasting memories in Hangzhou and Shanghai, but the 42 CNC machines before his eyes in the factory simply won him over.

“The factory was over the top!” Maschmann said. “I was very impressed with how they built everything in the factory. The assembly lines were impressive; the testing of every motor after it is built; the dyno after the unit is completed — it was just amazing. They run a very clean assembly. Everything was spotless.

“And it is nice to see the people behind the product. CFMOTO creates an entirely new price point — Japanese brands are outpricing themselves. I can see there is quality here and the manufacturer allows a nice profit margin for us. CFMOTO has a wonderful future in the United States, and I am very proud to be a part of it. The CFMOTO line compliments and fills in the gaps of products I don’t have, such as a sport side-by-side, once again at a great price and profit margin. I really feel like CFMOTO is going to be a major player in the U.S. in the near future, and I’m very excited to have them.”

Bob Plourde, owner of Plourde & Plourde, Inc., of Caribou, Maine, took honors for the most flight delays and for securing the most roundabout manner of finally arriving in China. He said he would do it again as he aims to grow his dealership lineup that includes Harley-Davidson, Arctic Cat and Ski-Doo.

“I really enjoyed it. We were treated like kings,” he said. “The long trip was worth it to me. I got to see the dedication the people had for the company, and how hard they were working to make their company successful. They were able to transfer their energy there to myself.”

Harmon joined Mike Ratz, owner of Logan Motorcycles Sales in Logan, W. Va., as veteran attendees. They were both making their second trip to the factory.

“We all had a great time with the CFMOTO family. They are so friendly and warm they make us feel like we’re a part of their family,” Ratz said. “I was so glad to see the friends I made in 2012 and hang out with them again. It’s the only company I deal with that allows me to sit down and share dinner and drinks with the owner. Mr. Lai is always glad to see us and give us a warm welcome. I have been on a lot of dealer outings in my 50-plus years in this business, and this has to be the best one ever. I can’t wait to go back. What a treat to be able to try all of the native dishes in China!”

Harmon, who joined the 2012 No. 1 dealers Wayne and Randy Bedeaux in giving separate speeches about their success with the brand, expects to be selling 1,000 CFMOTO units per year by 2019.

“Our dealership benefits from CFMOTO by giving our customers a choice — that choice being a quality product for a reasonable price,” he said. “The wide breadth of the future product lineup is going to be great for our business. What’s not to like about a 400cc ATV? A 650cc cross bike? A four-seat UTV and Z8? These are all high demand products in our market. And CFMOTO’s commitment to build these machines speaks volumes about their commitment to our industry.”