IRVINE, Calif. — The new lead rule that banned the sale of many youth all-terrain vehicles and motorcycles could lead to a $1 billion annual loss for the industry, predicts the Motorcycle Industry Council (MIC).
The projected loss is based on a 2008 estimated value of the retail marketplace for ATVs and off-highway motorcycles affected by the ban, which is intended for youths 12 and under. The figure includes retail sales of new and used vehicles, parts and accessories, dealer servicing, vehicle financing charges and other segments.
The MIC projects the estimated value of the youth ATVs and off-highway motorcycle categories to exceed $1.5 billion. Powersports companies have stopped selling affected youth products with lead content in excess of the limits identified in the Consumer Product Safety Improvement Act (CPSIA) of 2008 that went into effect on February 10.
Passed last August, the CPSIA was prompted by numerous high-profile recalls of children’s toys and other items. In its language, the CPSIA identified certain parts of a mini bike as having lead in excess of 600 parts per million, which the new law prohibits. The law’s lead restriction effectively bans all 85cc, 70cc, 65cc and 50cc displacement mini bikes.
“The potential losses for the powersports industry are massive at a time when this country cannot afford additional economic losses,” said Paul Vitrano, general counsel for MIC and Specialty Vehicle Institute of America (SVIA). “With these vehicles sitting in warehouses instead of on showroom floors, the related sales of most protective gear, accessories, and parts and services are virtually non-existent. Thousands of small businesses across America are impacted by this ban.”
The MIC and SVIA have spearheaded a letter-writing campaign in conjunction with Rep. Tom Self of Missouri, the American Motorcyclist Association, The BlueRibbon Coalition, and Americans for Responsible Recreational Access. They are calling for the exclusion of youth off-highway vehicles from the CPSIA ban.
They believe that the lead-content provisions of the act, which were originally aimed at toys that can be mouthed by children, were never intended to apply to youth ATVs and motorcycles.
Most of the components making up youth powersports products are in compliance. But some parts unavoidably contain small quantities of lead in excess of the CPSIA limits, such as the valve stems on the tires, aluminum in some brake components, and the terminals on the batteries
