It's a good thing Texas is a big state...they're gonna need all that room
for landfills if they keep shipping in all of that slit-eyed junk.
"
www.sunlsucks.com"
sunl.com> wrote in message
news:19gst25h4co54k4jehibnd456b2mob6p1q@4ax.com...>
>
> Dallas is hub for Chinese-made bikes
>
> 09:16 AM CST on Sunday, February 18, 2007
>
> By KATHERINE YUNG / The Dallas Morning News
> kyung@
dallasnews.com
>
> Chinese motorcycle, scooter and all-terrain-vehicle manufacturers looking
to
> break into the U.S. market have turned Dallas into their American hub.
>
> A dozen distributors have opened sales offices and warehouses around the
area
> over the last few years. Most employ only a handful of workers, but
they're
> rapidly adding hundreds of dealers.
>
> May Zhou, a Chinese immigrant who settled in the Dallas area, started one
of the
> biggest sellers, Sunl Group Inc. in Irving. But the majority are from
mainland
> China, with several from Taiwan.
>
> ATVs and scooters account for the bulk of these companies' small but
growing
> revenues.
>
> "My target is to expand sales and get more market share," said Peter Xie,
the
> executive manager of Dallas-based American Lifan Industry Inc., a
subsidiary of
> Chongqing Lifan Industry Group, one of China's biggest motorcycle
exporters.
>
> Whether these distributors thrive or fail in the fiercely competitive U.S.
> market could provide clues as to how Chinese automakers will fare.
>
> That's because motorcycles have traditionally been a steppingstone to the
sale
> of new cars, as demonstrated by the Japanese companies Honda Motor Co. and
> Suzuki Motor Corp.
>
> American Lifan's parent company already manufactures automobiles and plans
to
> export them to the U.S.
>
> Chinese motorcycles have a poor reputation for quality, but no one is
counting
> them out. The Japanese companies that dominate the market - Honda, Suzuki,
> Yamaha and Kawasaki - overcame quality problems decades ago, winning
prestigious
> motorcycle races such as the Isle of Man.
>
> "It's very easy to forget how the Japanese entered the U.S. market," said
Panos
> Kouvelis, a professor of operations and manufacturing management at
Washington
> University's Olin School of Business. "They were not good quality. We used
to
> joke about 'Made in Japan.' "
>
> Chinese companies have already seized control of the market for small ATVs
from
> the Japanese.
>
> And China has become a powerful force in the motorcycle industry, too,
producing
> and exporting more bikes than any other nation. The world's most populous
> country has more than 100 manufacturers.
>
> In the U.S., they're keeping a low profile. Most distributors only
advertise
> their products in industry publications.
>
> In the classic pattern of immigrants following other immigrants to a
foreign
> country, the companies trailed each other to Dallas, attracted by the
city's
> location and low costs.
>
> "This area is in the middle of the U.S., so it's good for shipping," said
Bill
> Zhu, vice president of Chuanl Motorcycle Co. Inc., which operates a
showroom and
> warehouse in Dallas staffed by eight employees.
>
> Though imports of motorcycles and parts from China are growing, they
totaled
> only $330.5 million in 2005, compared with almost $3 billion from Japan.
That's
> because Chinese manufacturers mostly sell motorcycles with small engines,
a
> disadvantage in the power-thirsty U.S. market.
>
> Irresistable market
>
> Despite formidable Japanese competition, these companies can't resist the
lure
> of the U.S.
>
> American consumers snapped up more than a million motorcycles and scooters
for
> the third year in a row in 2005, according to the Motorcycle Industry
Council.
>
> Sales have risen every year since 1993, a performance likely to continue,
thanks
> to fears of high gas prices.
>
> "As long as you do the right things here, you are going to survive and
grow,"
> said Michael Yuen, vice president of Kinroad LP, a Carrollton distributor
with
> 300 dealers.
>
> But with so many entrants, some industry players expect to see
consolidation in
> the years ahead.
>
> "In the next three to five years, there will be a shakeout in this
industry just
> like there was for the Japanese," said Jeff Boudreaux, Sunl's chief
operations
> officer, who compared today's competitive environment to "being pecked to
death
> by ducks."
>
> U.S. regulations
>
> One factor that could limit competition arose last year when new
Environmental
> Protection Agency rules for imported motorcycles, ATVs and scooters went
into
> effect. To obtain the EPA certifications, vehicles must undergo costly
testing,
> which has deterred some Chinese manufacturers from entering the U.S.
market.
>
> Companies that meet the regulations hope to entice American buyers by
offering
> extremely low prices. Some dealers sell Chinese motorcycles for $2,000 or
less.
>
> But the cut-rate prices have come at the expense of quality. There are
dozens of
> stories on the Internet from consumers who can't find parts to repair
their
> Chinese motorcycles, which broke down almost as soon as they were driven.
>
> Repairing reputation
>
> Bad experiences with Chinese-made ATVs and scooters have also sullied
their
> reputation. The Better Business Bureau of Metropolitan Dallas has received
more
> than 180 complaints against Best Price ATVs, an online distributor in
Farmers
> Branch that has also done business under the names Freedom Scooters and
BMX
> Imports.
>
> The complaints ranged from delivery of damaged merchandise to difficulties
> getting refunds. Best Price did not return telephone calls seeking
comment.
>
> Another distributor, Dinli LP, which once operated out of Dallas, is
appealing a
> $3 million verdict against it. A Philadelphia jury found the Taiwanese
company
> liable for the death of a 31-year-old man who broke one of his legs when
his
> Dinli ATV overturned after the right handle grip slipped off the
handlebar. He
> died from a pulmonary embolism caused by his leg injury.
>
> Quality concerns have become so serious that some dealers refuse to sell
> Chinese-made products.
>
> "They are substandard," said Leslie Porterfield, owner of High Five
Cycles, one
> of the largest dealers of used motorcycles, scooters, ATVs and dirt bikes
in
> Dallas. "There's no way to fix them."
>
> Others are willing to take the risks.
>
> "A lot of it is junk, but you can pick out the companies that back their
bikes
> up," said Hank Hankamer, who owns the Scooter Shop Inc. in Dallas.
>
> He started selling American Lifan scooters, dirt bikes and motorcycles two
> months ago and hasn't run into any problems getting spare parts. He tells
buyers
> who shy away from anything made in China to go online to find out more
about the
> Lifan brand.
>
> "They have been in China for a long time," he said.
>
> Building the brand
>
> Some major Chinese distributors are trying to improve their quality and
service,
> eager to build valuable brand names.
>
> American Lifan sells motorcycles only through dealers that have a repair
> facility with at least one mechanic, Mr. Xie said.
>
> Rival Qlink LP gives two-year warranties on its street bikes.
>
> "We really want to change people's image about Chinese products," said
Johnny
> Tai, sales manager for the Taiwanese distributor based in Grapevine.
"Americans
> like inexpensive products, but they don't want junk."
>
> And at Sunl, executives want to ensure that customers never run into
problems
> ordering spare parts. They have stocked the company's enormous warehouse
in
> Irving with enough ignition switches, throttles and other parts to fill
several
> aisles.
>
> The 5-year-old company, named after the word sunlight, is also reducing
the size
> of its dealer group to include only those that can offer high levels of
customer
> service.
>
> With these efforts, the Chinese may eventually close the quality gap with
the
> Japanese. Some experts say the Chinese will grab significant market share
> because of their lower prices.
>
> "You have to look five and 10 years down the road," said the Olin School's
Mr.
> Kouvelis. "It's a global market."
> NEW WHEELS IN TOWN
>
> Here are some of the distributors of Chinese-made motorcycles, scooters
and
> all-terrain vehicles that have opened their headquarters in the Dallas
area in
