May 16, 2005 – Distributor Report

DELPHI PLANS $100 MILLION MOTORCYCLE BUSINESS
Delphi Corp. says it anticipates its motorcycle business to make $100 million in revenue in 2005, an increase of more than 30% compared to 2004.
Delphi supplies motorcycle manufacturers around the world, including Harley-Davidson, with a wide range of products, from ignition and exhaust systems to fuel injection and sensors.
“Our motorcycle OEM customers are increasingly turning to Delphi for more support because we’ve proven over time that we deliver outstanding technology, service and value,” said Dave Wohleen, Delphi vice chairman.
Wohleen said Delphi’s motorcycle business is an important part of Delphi’s new markets strategy.
“We continue to broaden the range of non-automotive applications that can benefit from our leveraging Delphi’s long heritage of leading automotive technologies, global manufacturing and engineering capabilities,” Wohleen said. “Our expanding presence in the motorcycle industry is another indication of Delphi’s growing success in supplying adjacent markets.”
Delphi currently supplies motorcycle manufacturers from facilities in Piracicaba, Brazil; Kokomo, Indiana; Flint, Mich.; Guragon, India; Shanghai, China; and Ciudad Juarez, Mexico.

CYCLE COUNTRY WRAPS UP SIMONSEN DEAL
Cycle Country Accessories Corp., Milford, Iowa, formally acquired Simonsen Iron Works on April 29. Terms of the deal were not disclosed.
Simonsen Iron Works, based in Spencer, Iowa, is a fourth generation family-run custom manufacturer in business since 1906. The services they provide include laser and plasma cutting, turret punching, tube bending, CNC machining, powder coating and more. Simonsen has worked with Cycle Country for 25 years.
“This is a special day for the employees, customers, and communities of Cycle Country and Simonsen Iron Works,” said Ron Hickman, President and CEO of Cycle Country Accessories Corporation. “Combining efforts of these two home-town, made-in-America companies will provide a more efficient process and product from which everyone can benefit.”

SHOWA EARMARKS FUNDS FOR INCREASED CAPACITY
Showa Corp., an affiliate of Japan’s Honda Motor Co. Ltd., plans to increase capital investments during the next three years to $254.8 million, a 35% increase from the previous three-year period. The company says the increased outlay is an attempt to meet growing demand for motorcycle parts in China, Indonesia and other Asian countries.
Showa’s consolidated sales rose 6.4% to 233.5 billion yen in the year ended March 31. The company posted a 21.4% hike in net profit to 9.2 billion yen for the year.
Motorcycle parts sales generated 30% of Showa’s total sales in fiscal 2004 and were up 9.7% from sales in the previous year. Showa’s automotive segment accounted for 68% of the company’s total sales in fiscal 2004, up 5.4%.
Showa says 13.6 billion yen of the capital investment will be spent in Japan while 13.4 billion yen will be earmarked for operations abroad – particularly on motorcycle parts production in China and Indonesia, where the annual output capacity will be raised to an amount sufficient for 3.5 million two-wheelers, up from 3 million at present.

MITSUBA TO EXPAND IN BRAZIL
Mitsuba Corp., a supplier to Honda Motor Co. Ltd., says it plans to relocate its motorcycle parts plant in the Brazilian city of Manaus in preparation for increased production from the powersports vehicle manufacturer.
Honda has more than an 80% share of the motorcycle market in Brazil. The vehicle manufacturer projects production to grow to 1 million units in 2005.
Mitsuba’s Brazilian unit has been supplying electrical and electronic parts to Honda’s motorcycle production facility. Mitsuba posted 1.05 billion yen in motorbike parts sales in Brazil in 2004. Company officials there say they expect sales to rise by about 10% in 2005.
Mitsuba plans to spend about $1.9 million to build the new production facility, reported Asia Pulse newswire. Production at the new plant is set to begin by year-end.

SUPERTRAPP PROMOTION OFFERS DEALERS YAFFE BIKE
One lucky dealer of SuperTrapp brand products will be the owner of a custom-made Paul Yaffe Original “super bike” by the end of the year.
SuperTrapp Industries, Inc., a Cleveland-based performance exhaust manufacturer, says the SuperTrapp, Super Bike, Super Prize contest is open to all U.S. dealers of SuperTrapp V-Twin systems and will run until December 31, 2005.
After selling a qualifying V-Twin system, dealers must register at www.supertrapp.com/superbike for the chance to win. The Web site gives instructions about how to enter the system(s) sold and lists all qualifying SuperTrapp V-Twin systems. The winner will be drawn at the Dealer Expo in Indianapolis in February.
In addition to their signature tunable disc diffuser exhaust systems, SuperTrapp manufacturers the Kerker brand of exhaust systems.

K&N OFFERS 2005 CATALOG
K&N Engineering recently released their 2005 Powersports Catalog. With more than 70 pages, the catalog is packed with technical information about K&N products, loads of color photos and a complete listing of powersports applications, covering nearly everything from cruisers to off-road and watersports to snowmobiles.
Copies of the 2005 K&N Powersports Catalog can be ordered directly from K&N or picked up at one of the many races, shows and events K&N displays at throughout the year. 2005 K&N Powersports catalogs can also be ordered on the web at www.knpowersports.com or by calling K&N’s customer service department at 800/858-3333.

VP RACING ADDS STAFF
VP Racing Fuels, Inc., Newark, Del., has named Steve Fales as Sales Representative and Technical Specialist.
Fales will join the Sales & Technical Support Staff in VP’s Atlantic region, which includes Delaware, Maryland, Virginia, West Virginia, Pennsylvania, New Jersey, New York, Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, Maine, Eastern Ohio, Ontario, Quebec and the Atlantic Maritimes.
Fales’ father began racing powerboats in the 1950s, eventually bringing Steve and Steve’s brother into the racing fold in the early 1980s. The three raced with the American Powerboat Association (APBA), National Outboard Association (NOA) and American Outboard Federation (AOF), winning a combined 57 World, National, North American and Eastern Divisional championships among them, as well as setting three world Straightaway Kilo records.
This success in racing led the family to found Powermist Racing Products in 1986, where Steve served as owner and manager for 14 years, as well as master blender of race fuels for 5 years. In 1994, he spent a 7-month sabbatical doing extensive research on race fuels and applications, after which he took over Powermist’s distribution center operations in New England. In 2000, Fales left Powermist to spend one year in technical sales with Land & Sea Dynomometers, Inc., after which he joined New England Race Fuels in 2001 as Technical/Sales Representative.

UNIVERSAL TRAILER OFFERS FINANCING THROUGH GE
Universal Trailer Corporation, Cincinnati, Ohio, says it will partner with GE Consumer Finance’s Retail Sales Finance unit to offer a new private label credit card program.
Universal Trailer’s Haulmark brand is among the most popular of enclosed cargo, motor sports and custom specialty trailers. The company will offer the Universal Trailer Credit Card through its network of more than 600 dealers beginning this month.
“One of our goals is to provide consumer value by making their life easier,” said Scott Bennett, Chief Financial Officer of Universal Trailer. “With the Universal Trailer consumer credit card, not only do we build brand equity, we also make it easier for new and returning customers to finance their trailers, specialty items and accessories.”
Universal estimates that more than 250,000 enclosed specialty trailers and 276,000 open flatbed trailers were sold in the United States last year. The company’s trailer products — sold under the Haulmark, Exiss and Sooner brands — range in price from under $3,000 to
over $100,000.
Retail Sales Finance, based in Kettering, Ohio, is part of GE Consumer Finance and provides private label credit card programs, marketing, installment lending and financial services for national and regional retailers in key industries: outdoor equipment, powersports, home improvement, automotive/recreational vehicles, consumer electronics and appliances, furniture, floor covering, jewelry and health care.
GE Consumer Finance, based in Stamford, Conn., offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans and credit insurance.

BMW OEM PARTS CATALOG NOW ONLINE
A&S BMW Motorcycles, Roseville, Calif., has launched an online illustrated parts catalog for OEM BMW motorcycle parts.
The site, www.ascycles.com/illustrated_
parts_catalog_main.asp, covers all U.S. models from 1970 to present.
A&S has been selling and servicing BMW motorcycles since 1988. It opened its online store in 1999. The dealer claims to be the leading BMW Motorcycle dealer in the world in terms of unit sales, and says it has the most visited BMW dealer Web site on the Internet.
Before A&S offered this on-line microfiche application, BMW motorcycle owners and non-franchised shops had limited options to look up OEM parts.
For more information, visit A&S’ main Web page, www.ascycles.com, or call 800/689-9893.