PowerSports Business

July 10, 2017

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The U.S. Consumer Product Safety Com- mission (CPSC) in June announced that Kawasaki Heavy Industries, Ltd., of Japan; Kawasaki Motors Corp., U.S.A., of Foothill Ranch, California; and Kawasaki Motors Manufacturing Corp., U.S.A., of Lincoln, Nebraska, have agreed to pay a $5.2 million civil penalty. The penalty settles charges that Kawasaki failed to immediately report to the CPSC that its 2012-16 model year Teryx4 750, Teryx4 800 and Teryx 800 recreational off-highway vehicles contained a defect that could create a substantial product hazard or that the ROVs created an unreasonable risk of serious injury or death. The CPSC also alleged that Kawasaki knowingly made a material misrepresentation to the CPSC staff by underreporting the num- ber of Teryx4 750 floorboard incidents and failing to report any incidents regarding the Teryx4 800 or Teryx 800. Between April 2012 and July 2014, Kawa- saki received more than 400 reports of Teryx4 750 floorboards cracking or breaking during normal operation due to impact with, or pen- etration by, debris from outside the vehicle. Three of these incidents resulted in injuries to consumers, including one serious injury. In addition, between July 2013 and August 2015, Kawasaki received more than 150 reports of Teryx4 800 or Teryx 800 floorboards crack- ing or breaking during normal operation. Three of these incidents resulted in injuries to con- sumers, including two serious injuries. Kawa- saki failed to immediately notify the CPSC of the defect or risk posed by the ROVs, as required by federal law. When Kawasaki ultimately filed its full report with the CPSC, it reported a single inci- dent and an unspecified number of injuries. The full report did not identify the more than 400 similar incidents involving Teryx floor- boards about which Kawasaki had actual or presumed knowledge or any incidents involv- ing the Teryx4 800 or Teryx 800. By omitting this information, Kawasaki made a material misrepresentation to CPSC staff, impeding CPSC staff's investigation into the hazard posed by the firm's ROVs and Kawa- saki's proposed repair, and hampered the staff's ability to accurately communicate the preva- lence of the hazard to the public. In July 2014, Kawasaki recalled 11,000 ROVs and then expanded the recall by 19,500 in December 2015. The recalled Teryx ROVs were sold at Kawasaki retailers nationwide from October 2011 to December 2015 for between $13,400 and $16,300. In addition to paying the $5.2 million civil penalty, Kawasaki will maintain a compliance program to ensure compliance with the Con- sumer Product Safety Act (CPSA). Kawasaki will also maintain a related system of internal controls and procedures. Kawasaki's settlement of this matter does not constitute an admission by Kawasaki, or a determination by the commission, that Kawa- saki violated the CPSA. The penalty agreement has been accepted provisionally by the commission by a 4 to 1 vote. Kawasaki complied with all applicable require- ments and furnished all requested information to the CPSC accurately and in a timely man- ner. Yoshi Tamura, president of Kawasaki Motors Corp., U.S.A., stated: "Kawasaki is dedicated to the safety of our customers and the quality of our products. We agreed to this settlement solely in order to avoid the time and expense of a lengthy dispute, and to be able to focus on our commitment to consumer satis- faction and safety." PSB Kawasaki fined $5.2 million by CPSC www.PowersportsBusiness.com NEWS Powersports Business • July 10, 2017 • 9 BRP in June added a new member to its Man- agement Committee following a reorganization of its product management structure. B e r n a r d G u y h a s been named senior vice- president, Global Prod- uct Strategy. Reporting to José Boisjoli, president and CEO, Guy will lead product orientation for all BRP vehicles under the Ski-Doo, Lynx, Sea-Doo and Can-Am brands. " W e c o n t i n u e t o build on our strategic priorities to support our growth and strengthen our leading position in the powersport industry," said Boisjoli. "With the goal of maximizing our impact on the mar- ket, I am creating the new function of Global Product Strategy to better manage our global product portfolio, capitalize on the synergies between our platforms and product lines, and increase our return on investment." Guy has been with the company for 30 years and has held several roles across many sectors, such as engineering, business development, product planning, as well as sales and market- ing. Since 2014, he was vice-president and regional general manager responsible for all BRP powersports businesses in North America. "I am pleased to welcome Bernard to the management team," added Boisjoli, "as I know he will bring a strong strategic and business perspective in future product orientation deci- sions and in global product portfolio manage- ment to achieve the best returns on our product capital investments." PSB BRP promotes Guy to senior VP position BERNARD GUY

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