

JMC Motors has entered into an agreement to distribute Joyner vehicles in North, Central and South America. As part of our new agreement, we have worked with the manufacturer to develop a detailed program to improve the quality of the new vehicles. As a part of that program we have a placed a representative inside the factory to maintain the quality of the product.
We are in the process of building a parts inventory in order to improve the timeliness of parts deliveries, which we know has not in the past always been satisfactory. We have a fully staffed technical resources group that can assist you in diagnosing problems and ordering the correct parts. We are working hard to build our products, service and company so that you can rely on us as a partner in your new JMC vehicle. We understand that an off-road, recreational vehicle is only as good as the company and dealer network that stands behind it, and we are committed 100% to you and your off-road vehicle enjoyment.
JMC Motors would like to take this opportunity to make an important announcement regarding our just completed agreement to add HSUN UTV’s to our product portfolio and bring you up to date on events with Joyner.
JMC Motors is pleased to announce that it has become distribu tor of HSUN UTVs. In addition to the Joyner product line, we will be offering a full line of HSUN UTVs including the HS 500, HS 700, HS 702 A and HS 800. The HS 800 competes head to head with the Polaris RZR while priced thousands of dollars be low Polaris’ retail price points. Each HSUN vehicle comes with a one year warranty on the engine, drive train, certain electrical components and 6 month warranty on all other components.
HSUN began in 1988 as a motorcycle manufacturer. Today HSUN has over 2500 employees and their ATV/UTV production lines have a combined capacity of 250-300 vehicles per day with customers in over 100 countries around the world. HSUN is a well capitalized Chinese manufacturer with significant develop ment resources. HSUN began producing and distributing UTV products in 2008. All of the HSUN UTV products were up graded to EPA certified EFI designs beginning in 2010. HSUN produces their own engines, transmissions (CVT), frames, sheet metal parts and plastic components giving them a distinct advan tage in providing service parts support and availability. JMC Motors visited the HSUN UTV facilities in June 2010 and found their products to be well designed, high quality with excellent fit and finish. HSUN is an impressive manufacturer with a product line that fits well with the larger, wider and more specialized Joyner products. We believe HSUN is a good fit for JMC and our dealers.
JMC will maintain a full HSUN parts inventory as well as an inventory of HSUN vehicles at its Chandler Arizona warehouse. HSUN product information is attached and we will be contacting you to book your first orders within the next week.
Joyner related news is less positive. At the beginning of 2010, Joyner China was left holding a large amount of unpaid receiv ables due to the collapse of Team Joyner USA. Joyner China has worked hard to fight through credit issues with their suppli ers and continue operations while awaiting completion of JMC’s efforts to obtain updated 2010 EPA certifications of Joyner prod ucts. The 1100cc engine family was successfully re-certified in July and JMC is awaiting formal final approval of that submis sion, but as a result of problems with other Chinese recreational vehicle manufacturers, the EPA has begun a much stricter ap proval and enforcement process for all EPA certifications.
The consequences of these EPA process and procedure changes have had a two-fold effect on Joyner products. The first is that JMC must now certify all engine models independently because engine family certification approvals are no longer being issued. With Joyner’s support, JMC will begin the three month certifica tion process for the 800cc engine once JMC receives a test vehi cle from Joyner. The second consequence caused by stricter EPA approval and enforcement practices is the delay in the for mal final approval of the 1100cc certification already completed and submitted by JMC Motors. The 1100cc EPA certification delay has forced Joyner China and JMC Motors to also delay shipments of 1100cc vehicles. These two effects combine to further challenge Joyner China financially. JMC Motors is con fident Joyner China will successfully work it way through these challenges in short order, but at the current moment normal busi ness activities with Joyner China are very difficult. We under stand the importance of continuing to support you and your cus tomers with a reliable supply of Joyner parts. Joyner China is continuing to provide parts shipments as best they can and JMC is working to supplement those shipments. JMC Motors is working closely with Joyner China during this challenging period. We will keep you updated on Joyner China’s progress in resolving their financial difficulties.
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