Zongshen, MRP Sign Agreement
May 4, 2006
Filed under Uncategorized
Martin Racing Performance (MRP), supplier of racing components for scooters, ATVs and go-karts, has signed a “Cooperation Agreement” with Zongshen America, Inc., a subsidiary of China’s Chongqing Zongshen Motorcycle Group.
The deal will have MRP develop a wide-range of exclusive racing parts and accessories for Zongshen-built vehicles and have MRP offer dealers technical support. MRP also will assist with joint product development, suggesting changes to the Zongshen product line for entry to the U.S. dealer base.
To kick-off the agreement, Zongshen has agreed to provide MRP with its entire U.S. lineup, including its private-label models currently sold in the U.S. to nine other importers.
Zongshen America said the deal was designed to assist the company in entering the North American Market. Both companies are based in Doral, Fla.
“In order to meet the growing needs of the market and to make sure we expand our presence we are actively looking for new ways to keep the dealers satisfied,” said Cavan Chan, President of Zongshen America. “We are receiving a lot of requests from dealers due to the growing demand from customers looking for performance parts, and in China these parts don’t exist, so having MRP as our neighbor in Miami is perfect.”
“We are excited about the potential of this cooperation and the benefits that it represents for both groups,” said Joel Martin, President of MRP. Martin founded MRP in 2004, after changing the scope of his Malaguti USA import and distributorship.
Martin launched Italian-made Malaguti product in the U.S. in 2001 via various co-branded marketing campaigns. By 2003, he had built a retail base of 90 dealers and opened a 15,000 sq. ft. distribution center in Doral, Fla.
One year later, responding to rising costs in Italy, the fall of the U.S. dollar and increased market saturation of low-priced product from Asia, he felt he had to adapt to a changing market and began expanding his offerings to include other vehicle brands and aftermarket parts and accessories. The company name change occurred in May 2004.
Founded in 1992, the Chongqing Zongshen Motorcycle Group is composed of 52 totally-invested or share holding subsidiary companies. With more than 18,000 staff members, Zongshen Group’s total assets exceed $500 million. Zongshen has manufacturing partnerships and agreements in place with Harley Davidson, Honda, Piaggio and several U.S. importers.