Lead Law Haults Sales of Youth Recreational Vehicles!

Lead law throttles youth powersports
Posted 2/16/2009 11:14 PM
http://www.usatoday.com/news/nation/2009-02-16-motorcycleban_N.htm?loc=interstitialskip

IRVINE, Calif. — A new federal law aimed at protecting children from lead in toys has also forced a nationwide halt in sales of off-road motorcycles and recreational vehicles built for young riders, killing off a multimillion-dollar industry that was thriving despite the recession.
Thousands of powersports dealers were told to halt sales of vehicles designed for children 12 and younger because of new lead restrictions in an act of Congress that took effect Feb. 10.

Even used vehicle sales are banned by law passed in response to lead found in toys imported from China.

"We're out of business as far as the youth market goes," says Rick Rizzon, owner of Rizzon Cycle in Middlesex, N.J. "It's crazy."

With the motor vehicle industry already hurting from recession, he said the ban means a 20% drop in sales of youth off-road motorcycles and the parts business for bikes already sold.

Martyak
The ban hits California especially hard. Off-roading is hugely popular among families in the state and several state parks are devoted to dirt riding.

Kevin Matty, finance director at Temecula Motorsports in Temecula, Calif., (where the desert is a big draw for dirt bikers) estimates the ban will wipe out half of his business sales.

"I thought it was a joke," Matty said, until the manufacturers told him he had to take the youth vehicles off the showroom floor.

Economic repercussions

Passed by Congress after a series of reports concerning toys made in China with lead, the law bans sale of products aimed at children if they contain more than 600 parts per million of lead, says Joseph Martyak, chief of staff to the acting chairman of the U.S. Consumer Product Safety Commission.

Lead is found in steel and other metal alloys in the frame, motor and multiple other parts, said Paul Vitrano, general counsel for the Motorcycle Industry Council. The lead strengthens the metals and resists corrosion.

Supporters of the law hailed its passage in August.

Rep. John Conyers, D-Mich., a bill co-sponsor, said at the time that supporting the law "is a vote for industry accountability, regulatory integrity, and most importantly, child safety."

Martyak said the wording of the law left the commission no choice but to enforce the ban on youth cycles and ATVs even with no evidence children would ingest or absorb the items. The industry has petitioned the commission for an exemption.

The ban will have repercussions economically.

The Motorcycle Industry Council estimates nearly 100,000 youth bikes were sold in the USA in 2008, though some were aimed at kids 13 and older and not covered by the ban. Dealernews, an industry trade publication, estimates that the value of inventory at U.S. dealers that can no longer be sold probably exceeds $100 million.

Beyond current inventory, Kawasaki spokeswoman Jan Plessner said the company has "millions and millions of dollars" worth of parts now in the product pipeline to dealers that cannot be sold.

Most cycles and ATVs are made overseas, but there are tens of thousands of jobs attached to the industry here. More than 13,000 powersports dealers sell products in the United States, according to the Motorcycle Industry Council, employing an estimated 124,000 people. Vitrano says the industry estimates the retail market value for all off-road cycles and ATVs is $14.5 billion a year, including sales, service, parts, accessories and payroll.

'Are you kidding?'

Children appeared perplexed by the ban.

"Are you kidding? This is silly," says Zack Bartell, 12, who was taking a dirt-bike riding lesson at School for Dirt's track next to Kawasaki Motors' U.S. headquarters here. "There's no way I'm going to stick a motorcycle part in my mouth."

The 12-and-under market is a huge focus for the industry because it believes children who ride will grow up to be adult riders and consumers as well. It builds bikes with single-cylinder motors as small as 50cc that fit children.

Children as young as Karsyn Boyd, who said she was "6 and a quarter," were riding with ease after an hour or so of instruction, carving figure eights, traversing hills and cutting around orange cones.

Vitrano says the ban will have a perverse effect: Rather than no longer riding, kids who can't get a cycle their size may hop on a bike made for older children or adults — one inappropriate and dangerous for a smaller child.

Terry Dempsey, sales manager at Long Beach Motorsports in Long Beach, Calif., said he sold $120,000 worth of youth bikes last year, plus more in parts, service and accessories.

"We're already down 30% (from recession), and now we just lost another 10% to 15% of our customer base," Dempsey says.

The economy notwithstanding, enthusiasts say the ban needlessly kills a family-oriented sport where children ride with their moms and dads and, like other sports, can induce children to behave.

"I know if I keep my grades up, I can keep riding," says Zack, who started riding at age 5.

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Good Afternoon...forget the good, as our country has descended into lunacy.

I have spent most of the day on two conference calls relative to the subject line above, and I must say I am rather concerned about the fate of our sport and industry. Not to mention our local communities for the further loss of jobs and $$ that our industry brings in each year. It is certainly that dire..believe me.

As of yesterday, all the OEMs had to pull for sale all new youth minicycles and atvs for those under the age of 13...this under order of the CPSC due to lead content of plastics and certain metals. As of yesterday, a dealer or private individual can no longer provide parts or service, to these affected machines, in which there is a possibility that those same parts may contain lead...no oil changes, plastic, levers, engine cases, etc, etc..goggles, helmets, clothing, knee braces..you name it. You may think that is just for new machines, but it is for everything new and used.

The CPSC also ruled that machines under 85cc are considered toxic to the health of young children.

Effective yesterday, Honda has pulled replacement parts from their service system for these machines pending lead certification...this takes 400 days. KTM, Suzuki, Kawasaki, and Yamaha are doing the same thing. If you have a 1,2,3 year old machine, you won't be able to buy most parts for it very soon.

Yamaha is sending out restrictions to its dealers saying that an 85cc bike can only be sold, and should only be operated by someone over the age of 13.

Now to the fun part for us as a race promoter.

Because the manufacturers are now issuing these guidelines, we as promoters cannot allow a youth under the age of 13 to participate for two reasons.
We are allowing someone to participate in a sanctioned activity on a vehicle that has been determined by the manufacturer and the CPSC to be unsafe for that age level.
We are allowing someone to participate in a sanctioned activity on a vehicle that the CPSC has determined is a toxic substance.
If you think I am joking, consider the following
MX Sports is considering removing youth classes from the Loretta Lynn's program, GNCC, and ATV Nationals...we run all three of these series and I can tell you that these classes make up over 1/3 of our entries and more than half of our attendance.
The AMA will be forced to ban youths under 13 from any AMA amateur or pro competition due to legal ramifications. The same will apply to local districts and sanctioning bodies, as insurance will not be available to cover this exposure. The lifeblood of our sport are these kids..if they cannot participate, they will find something else to do, and we will not get them back. They will not race, watch, or buy products. That means Mom, Dad and older brothers/sisters won't be there either.
Unadilla would most likely not participate in any form of amateur racing..with only half or less of the entries left, it wouldn't be financially possible.
DO I HAVE YOUR ATTENTION YET!

There are two efforts going on right now to get a temporary stay granted by the CPSC for "Off Road Vehicles." The MIC (Motorcycle Industry Council) and Missouri State House Rep Mike Sense(#4 in line in the MO st govt) are both developing grass roots letter campaigns through websites to develop a ground swell of support for this stay. Keep in mind this is only temporary, and unless a Federal injunction or legislation is developed, this isn't going away.

There are several opinions floating around on this subject saying that our thinking is flawed and that only the sale of new units is affected...if that is the case, why are helmet, goggle, sneakers, sunglasses, OEM parts and accessories, and dealer service being pulled for these units???

I will leave you with this..if indeed this is overblown, and we are right that we shouldn't be affected by this, it still doesn't mean that we can't/won't be sued by someone using this logic, and worse yet, convince a jury that the above is true. If it gets that far, you will have spent nearly a million $$ in your own defense, just to prove you were right all along.

IS IT WORTH THAT TO YOU?

I will get you info on the two websites, and I encourage you to beg everyone you know that rides, owns, promotes, or attends an off road sporting event to get everyone they know in the same manner to fill out one of these letters...Every Mom Dad and Kid should individually enter their name. Then they should contact their local representatives too.

Thanks for listening, and please do not think you can't make a difference..contact your local representatives as well..explain the economic impact this will have..educate yourself on this subject as quickly as you can.

Greg Robinson
VP Marketing
Unadillla Motorsports
© 315-725-9537

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SEND A LETTER TO THE U.S. CONGRESS

If you would like us to send a letter to the United States Congress on your behalf, please fill in your name and address (optional) below and we will forward the following email to the Representatives and Senators.


Dear Representatives & Senators,

The Consumer Product Safety Improvement Act (CPSIA) was signed into law on August 14th of last year after receiving broad support from both the House and Senate. I appreciate that this landmark legislation is intended to improve the safety of our nation's consumers and I support the CPSIA's goal of protecting children from harmful substances. However, I am concerned about the potential unintended consequences of the legislation.

One sector particularly affected by the new lead content standards, under section 101(a), is the off-highway vehicle industry. Under the CPSC's interpretation of the CPSIA, engines, brakes, wheels, tires, and suspension parts on these vehicles must be tested and meet the lead standard due to remote concerns over lead exposure to children six years or older. While the law provides some exclusions for inaccessible components and also authorizes the CPSC to grant exemptions under certain conditions, to date the CPSC has not done so for products in the off-highway vehicle industry. This situation has resulted in HUGE inventories of products - which present no health risk to children - to be rendered retroactively illegal, and prohibits the future sale of these products because all available exemptions have yet to be clarified.

Off-highway vehicle recreation is enjoyed by all ages and contributes significantly to the national economy. I thus urge the CPSC to grant the petition for temporary exclusions submitted by the snowmobile, ATV, and off-highway motorcycle industry.

Respectfully,

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