April 08 Hot Flashes

CONTENTS

Home

Products/Services

Mfg/Distributors

Industry Catalogs

People Profiles

Articles

In The Pros' Words

April 08 Hot Flashes

Creditors Going After American IronHorse The Star-Telegram wrote, “A group of disgruntled creditors have petitioned to have Fort-Worth (TX) based American IronHorse Motorcycles forced into involuntary bankruptcy for failing to make any payments since January.” Chief Executive R.B. “Buck” Hendrickson declined to comment on the filing, the paper explained, but he said Fort Worth investors are negotiating to buy the V-Twin custom bike manufacturer. In February, IronHorse Chairman Dwayne Moyers informed the company’s note holders that it had ceased production and was unlikely to resume until the assets were sold to a new investor, the Star-Telegram added. “Moyers also said that IronHorse was in breach of its credit agreement with Textron Financial Corp., a unit of Textron Corp.,” the paper stated. Troy Phillips, the Dallas attorney reportedly representing the individual creditors, told the Star-Telegram his clients had invested in notes ranging from $30,000 to $120,000 that could later be converted into stock; however, these notes were due Dec. 31, 2006, but when IronHorse failed to pay them off, the company instead paid default interest at a rate of 14 percent until this January. “My clients want to force a reorganization or a liquidation supervised by the court – and not at the whim of Textron,” Phillips explained.

Honda To Halt U.S. Motorcycle Production Honda of America Manufacturing, Inc., reported it plans to discontinue motorcycle production at its oldest U.S. plant in spring 2009, stated Business First of Columbus. It explained that the company, a part of American Honda Motor Co., will stop production at the 450 employee Marysville Motorcycle Plant, the company’s only North American motorcycle producer. “The plant’s employees, part of a 13,000 worker base at the company’s five production plants in Central Ohio, will be moved to other operations as motorcycle production is shifted to a new plant in Kumamoto, Japan,” Business First explained. Honda reportedly hasn’t finalized plans for how it will discontinue operations and its decision to end motorcycle production in the U.S. is said to come with a stronger focus on bolstering its North American auto production operations, with two auto plants under construction in Indiana and Canada.

Zeus Helmets Cancels N.A. Operations Zeus Helmets spokesperson Dave Floto stated, “I regret to inform you that due to declining economic conditions, Gao-Jin Industrial/ Zeus Helmets have cancelled all North American operations … We will no longer be producing helmets for the North American market.” Floto asked that any future inquiries be sent to David Ng at david@zeus-helmets.com. “We would like to take this opportunity to thank all our distributors and OEM customers for their support over the past few years,” he said, adding, “I would also like to send my personal thank you to each of you for your help and support for the past two years.”

Legislation Helps States Target Motorcycle Helmet Use “U.S. Transportation Secretary Mary Peters sent legislation to Congress seeking greater flexibility for states to target one of the leading causes of motorcycle deaths across the nation – riding without a helmet,” informed PressMediaWire.com. Peters is an avid motorcyclist and credits her helmet and riding gear for saving her life during a 2005 motorcycle crash, the site explained, adding, the legislation would allow states to use federal motorcycle safety funding to promote the use of motorcycle helmets. Currently, states are limited to using the funds for motorcycle safety training and awareness programs only, PressMediaWire.com said. “The National Highway Traffic Safety Administration estimates that motorcycle helmets not only saved the lives of 1,658 motorcyclists in 2006, but that 752 additional lives could have been saved if all motorcyclists had worn helmets,” the site told us.

AMA Concerned About Threat To Training Funds American Motorcyclist Association Vice President of Government Relations Ed Moreland expressed concerns after U.S. Transportation Secretary Mary Peters urged Congress to allow states to divert federal money in order to promote the use of motorcycle helmets. “Diverting federal motorcycle safety funds to promote helmet use could harm rider training courses and motorcycle awareness programs that are already underfunded in many states,” Moreland said, adding, “This step is a direct raid on funds that were appropriated by Congress to address specific safety concerns of the motorcyclists’ rights community. Furthermore, the use of motorcycle helmets is already advocated in existing motorcycle safety initiatives.” Moreland told us Peters’ proposal could contradict sections of transportation bills passed in 1998 and 2005 that ban the use of federal motorcycle safety funds to lobby state legislatures in favor of mandatory helmet laws and could effectively reverse those bans. The AMA is said to strongly advocate the voluntary use of helmets by adults, but does not oppose laws requiring helmet use by minors.

State Files Lawsuit Against Motorcycle Dealership Ohio Attorney General Marc Dann has filed a complaint against motorcycle dealership Andrew’s Cycles of Salem, alleging the store failed to sell vehicles at advertised prices by adding costs revealed to consumers, reported the Salem News. In the complaint, Dann accused the dealership of violating the Consumer Sales Practices Act and the Advertisement and Sale of Motor Vehicles Rule by “advertising prices for motor vehicles which did not include all costs except taxes, title and registration fees and documentary charges,” the News explained. The complaint also reportedly accused Andrew’s Cycles of adding freight, assembly or dealer service charges to advertised purchase prices, failing to disclose if a vehicle is used and failing to provide customers with an itemized list of services provided for in the service charge. “The court document also listed a violation of the Motor Vehicle Dealers, Auction Owners and Salespersons Act for allegedly failing to ‘disclose, on the contract, whether the mileage appearing on the odometer of the motor vehicle at the time of the sale is accurate’,” the News said, adding, “The complaint asked the court to stop Andrew’s Cycles from violating the Consumer Sales Practices Act, to make the business reimburse all customers who may have been wrongfully charged for the added costs, to fine the business at least $25,000 and make the business maintain five years worth of business records.”

Lane Trial Delayed The DUI manslaughter trial for celebrity motorcycle builder Billy Lane has once again been delayed, stated WFtv.com (FL). The site explained Lane, 38, is accused of driving drunk when he crashed into and killed Gerald Morelock, 56, in September 2006. “The defense requested more time, because it’s still waiting on results of blood samples sent for retesting,” it told us. Toxicology tests reportedly showed Lane’s blood alcohol level was 0.192 percent, at the time of the accident, which is more than twice the legal limit of 0.08. The judge hopes to set a trail date at the next hearing in April, WFtv.com added.

Ducati Receives Buyout Offer Italian motorcycle maker Ducati’s board has deemed a proposed buyout offer from main shareholders to be ‘positive’, said Reuters.com. “Shareholders Investindustrial, BS Investimenti and Canadian pension fund Hospitals of Ontario plan to launch a 390.8 million euro ($579 million) offer for the 70 percent of the company they do not own,” the site stated. “The forecast offer by the key shareholders was evaluated positively in terms of price, which seems reasonable, as well as for conditions,” said Ducati, adding, however, it needs to examine a formal proposal and valuations given by advisers. Ducati has reportedly hired Mediobanca as its financial advisor.

Canadian Judge Rules Against Sikh Motorcyclist Baljinder Badesha has lost his court battle with Ontario’s helmet law after Ontario Court Justice James Blacklock ruled that while the impact of Badesha’s religious rights were more than just ‘trivial’, that consideration was overwhelmed by the ‘undue hardship’ helmetless motorcycle riders would put on the province due to safety concerns and health-care costs, reported The Canadian Press. “The evidence before me shows that to ride a motorcycle helmetless involves the imposition of significant extra risks related to safety,” Blacklock said. According to the paper, Badesha, a devout Sikh, was given a $110 ticket in September 2005 for riding his motorcycle without a helmet; however, Badesha says his religion forbids him from covering his turban and he shouldn’t be made to choose between his faith and his bike. Badesha’s fight was championed by the Ontario Human Rights Commission, which challenged the constitutional validity of the province’s Highway Traffic Act, The Canadian Press explained, adding, members of the Sikh community protested the court’s decision, pointing to other Canadian jurisdictions, such as Manitoba and British Columbia, where Sikhs are exempt from provincial helmet laws. Justice Blacklock said Badesha has 30 days to pay the fine, however, Badesha is reportedly considering an appeal.	`

Motorcycle Shop Owner Charged With Arson Access North Georgia reported South Hall motorcycle shop owner Phillip Hall, 41, of Gainesville, has been charged with two counts of arson after a fire last month destroyed his store and damaged an adjoining shop. Hall County firefighters reportedly responded to a fire at Professional V-Twin in January and after the fire was extinguished, an investigation into the fire’s origins indicated it had been intentionally set. Investigators identified Alan Kilgore, 53, as the person responsible for actually setting the fire and they also developed evidence that indicated that he was hired by Hall to burn down the business, added Access North Georgia. The paper told us Hall has been charged with two counts of first degree arson, reckless conduct and tampering with evidence; Kilgore was also arrested and charged with two counts of first degree arson.

Passings

Chet “OEP” Burozski, Jr. Chester “Chet” Anthony Burozski, Jr. (OEP), 44, of Pittsboro, IN, passed away in Feb. 29, 2008 in Daytona Beach, FL, announced spokesperson Rick Raus. Burozski was a marketing director in the motorcycle industry, most recently with carburetor manufacturer PSI, and a lifelong motorcycle rider, Raus explained. Burozski is reportedly survived by his son, Adam, his mother, sister, nieces and nephews. The family has asked that donations be made to the Adam Burozski Trust Fund, 1358 Hooper Ave., Toms River, NJ 08753.