According to a press release on a PR Web site, “A Federal Judge ruled in favor of U.S. powersports distributor Dinli USA, LLC, awarding $45.6 million in damages against Dinli Metal Industrial Co., Ltd., located in Taichung, Taiwan.” Dinli Metal reportedly failed to appeal the judgment.
In case number 3:06-CV-0787-R, The United States District Court for the Northern District of Texas ruled that Dinli Metal breached its Distribution Agreement, made false representations when negotiating the Distribution Agreement and Asset Purchase Agreement, committed fraud when negotiating the Distribution Agreement and was negligent in the performance of their duties, the release said. It added, “The court specially found that Dinli Metal breached the distribution agreement by a) failing to obtain compliance certifications from the Environmental Protection Agency; b) failing to notify Dinli USA of its inability to deliver products as provided for in the contract; and c) failing to provide warranty parts and services under the contract.”
The release continued by saying the Court found that Dinli Metal’s refusal to satisfy dealer warranty claims for units sold after the closing of the transaction with Dinli USA adversely affected Dinli USA. Dinli Metal reportedly made a number of allegations against Dinli USA. The court ruled in Dinli USA’s favor on all allegations lodged by Dinli Metal, finding that Dinli Metal did not present any genuine issue of material facts regarding its claims against Dinli USA, explained the release.
While collection of judgment is uncertain, Dinli USA still holds exclusive distribution rights for any products made by Dinli Metal Industrial Co., Ltd. for the U.S. market, it added. The release concluded by saying, “Dinli Metal manufacturers products for its own brand as well as other brand names. Dealers should visit Dinli Metal’s Web site at www.dinliglobal.com to familiarize themselves with Dinli Metal’s products. U.S. dealers and distributors are cautioned against obtaining Dinli Metal manufactured products from any source other than Dinli USA.”

YAMAHA RECALLS RHINO UTVS

NewsInferno.com reported Yamaha has recalled its Rhino UTV due to concerns stating that the vehicle’s brakes might fail. According to the Consumer Product Safety Commission (CPSC), the brake caliper on the left front wheel could have been made incorrectly, thus could result in the leaking of the brake fluid. “This can cause a loss of braking and control of the vehicle, posing a serious safety risk to the driver and passenger,” the site explained. It added that the recall covers model year 2008 Rhino YXR450 and YXR700 side-by-side vehicles sold at Yamaha dealers nationwide from October 2007 to March 2008 for between $8,300 and $12,000. “Consumers with a recalled Rhino UTV should stop using them immediately and contact any authorized Yamaha Rhino dealer to schedule a free repair,” NewsInferno.com stated. No injuries have been reported in relation to this brake defect at press time.

Cycle Country Accessories announced it has named Jeff Tetzlaff as the company’s new president after former CEO and President Randy Kempf left in order to pursue other business interests. According to the company, Tetzlaff previously worked as a consultant to Cycle Country and worked at Commerce Street Venture Group for eight years. “Tetzlaff will be elected to the board of directors at the next board meeting,” Cycle Country added.

Arctic Cat, Inc., Chief Financial Officer Timothy Delmore reported the company has “revised its sales and earnings outlook for the fiscal 2008 fourth quarter ended Mar. 31, 2008, on lower than anticipated all-terrain vehicles sales, which the company attributed to three factors: continued weak retail sales, the reduction of a planned, large retail customer order and a parts supply issue.” Additionally, two other unforeseeable events occurred during the quarter, which further impacted the company’s sales, explained Delmore. “One of Arctic Cat’s large multi-store retailers decided to sell ATVs only in its largest footprint stores and, as a result, significantly reduced its planned order for the quarter,” he described, adding, “Arctic Cat also experienced an ATV sourcing issue with a vendor supplying parts for the Prowler utility vehicle … The supply issue was resolved before the end of the fourth quarter, using another supplier.” As a result of these factors, Arctic Cat’s fourth quarter net sales are reportedly estimated to be $167 million to $169 million compared to $172.6 million in the year prior. The company also expects fourth quarter diluted earnings per share to be between breakeven to a net loss of $0.08, said Delmore.

TCS Suspension announced it has merged with Race Tech, Inc., of Corona, CA. “The custom-made suspension systems and shocks will now be available through Race Tech,” stated spokesperson Erica Rios, who added, “Race Tech’s line of Gold Valve Shock kits for ATV models will dramatically expand over the next few months.” Spring kits will be available in double or triple rate springs, depending on the ATV model and setup, while shock systems will be available with or without remote reservoirs, for standard or long travel lengths and with or without the sag control system option, or zero preload system (ZPS), said Rios.