United Motors Goes Out of Business
Powersports vehicle supplier United Motors of America (UM) has gone out of business.
A source tells me UM officially closed its doors Feb. 1. The company’s website – umamerica.com – is down and the phones have been disconnected. Plus, it’s alleged finance firm GE took possession of most, if not all, of the vehicles that were in the company’s warehouse.
Led by the Villegas family out of Colombia, UM spent the past 13 years distributing motorcycles, scooters and ATVs from a 36,000 sq. ft. facility near Miami, Fla.
The Villegas originally were assembling Jincheng motorcycles in Colombia when, in 1995, brothers Jose and Juan ventured to the U.S. to launch Jincheng USA. However, in 2001, the company’s name changed to United Motors USA when the Villegas discontinued buying from Jincheng and the Chinese company moved its distribution to the now-defunct Panda USA.
Since then, UM imported product from several suppliers, including scooters from Wangye, dirtbikes from CPI, and scooters and ATVs from Qian Jiang. Sales were relatively mediocre until 2005, when the Villegas inked a supply deal with Korea's S&T Motors - the manufacturer and owner of the Hyosung brand - whereby S&T would ship to UM motorcycles with the UM logo.
The partnership proved valuable to UM, which attracted a few hundred dealers with its product line-up and soon was selling more motorcycles in the U.S. than Hyosung Motors USA.
What ultimately caused UM’s house of cards to fall? I’m still investigating, but a friend says he recently heard Hyosung’s CEO say UM hasn’t been meeting the terms of the supply agreement because of their lack of available funds – yet another clue as to why GE allegedly cleared out the company’s warehouse of vehicles.
Another interesting piece to the puzzle: the continued existence of UM Global, a company in China that operates as “a registered brand of the United Motors Group” and distributes product to countries like Venezuela, Peru, Argentina, Dominican Republic, Panama, Costa Rica, Nicaragua, Honduras, El Salvador and Guatemala.
UM was supplying product to about 150 dealers when it closed last week.
Categories: ATV,powersports,United Motors,scooter,2010,motorcycle,Hyosung,Florida
Tags: ATV Hyosung powersports United Motors scooter 2010 motorcycle Florida
We have parts for the UM Scooters www.mrp-speed.com if anyone needs help with them. QJ 50cc and 150cc for the Xpeed models.
Reply to this
One of the key factors of UM going under is due to their piss-poor support after the sale and their 2nd rate dealer network and they were always quick to blame Hyosung for their problems and thats just NOT true!...all they cared about was selling units and had no clue how to poperly support the dealers or customers after the sale and I know SEVERAL people who would attest to that...
Had UM been more careful in selecting QUALITY dealers and actually taken care of them when they needed parts and/or warranty support they would have probably survived...
UM was really hurting the Hyosung brand...hopefully now with these jokers out of the picture Hyosungs reputation will continue to improve....I think UM's management would be better suited to something in the fast food industry...perhaps asking "would you like fries with that?" at the local McDonalds...that is if they could actually graduate from "Hamburger University".
GOOD RIDDANCE UM!!
Reply to this
not sure where exactly you live but that is not the case for all of UM. My husband was a regional manager for UM and had an A type dealer group. Not the mom and pop type dealerbase. My husband busted his ass for his dealers. It was unfortunate that the inner workings of UM couldn't do the same. UM outsold Hyosung USA for several years as the product was high quality product at an affordable price. So don't go pissing on everyone involved in the UM name until you know all the facts, mister would you like fries with that. Lets see you get out there and see what kind of dealerbase you could put together. Really shouldn't puke your BS all over people unless you have facts to back it up and obviously you don't.
Reply to this
Do you know or can you ask your husband where I can find parts for my 2003 united motors renegade motorcycle. I need a tachometer, oil filter. Please help, I can't seem to find parts.
Reply to this
I would be willing to put money on the fact that part of their downfall came from their poor quality products and their horrific service. My husband and I are in pocession of a Matrix that doesn't run, is under warrenty, and we're still paying for.
The short version of our story: We bought the Matrix as my husband's primary transportation for his short commute to and from work. The scooter was never in perfect working condition for more than a month or two at a time since the day we bought it (new, mind you). Every time we filed a warrenty claim, it sat at the dealer for around a month, with around two months being our record. Issues were anything from a body piece falling off to a major mechanical problem. In January, the engine siezed, we took it to the dealer with several claims on warrenty, only to have it sit there for a month before the dealer called and told us to come get it because UM had "vanished". Mind you, this was the only dealer left in the area and was an hour away. When we purchased the Matrix, there were three dealers in the area. Gee, I wonder why they stoped selling UM products?
Every time we took it to the dealer, they had at leats 2 other Matrixs' sitting waiting for parts, as well. So, am I surprised they went under? Not at all. And I'd love if they'd take away the piece of junk sitting in our garage that my husband now has to pay out of pocket to fix.
Reply to this
I'm both sorry to hear this, and not. Sorry because I think Hyosung makes great bikes at a good price, and not because I've read about some shady business practices these guys were doing, tarnishing the hard won reputation of Hyosung. Hyosung was probably right to pull the plug on them...
I run a Hyosung parts web site, and I just got an email yesterday from a UM dealer in NY who was totally cold cocked by this. He has been trying to call them for a month, and the line is just dead. No word to the dealers at all, just stop answering the phone. I assume they're going to just burn all their warranty registrations. Rotten, rotten behavior - I hope these guys never try and sell in the US again.
Anyway, if you have a 250/650 UM bike (not scooter/ATV) and are having trouble locating parts...your bike should be 100% compatible with an equivalent Hyosung model. Our shop has the best selection and best prices on Reply to this
I was wandering if anyone has advice aobut what to do about open warranties? I own a UM bike and am a bit worried that now i don't know what to do if i need to make a claim. If anyone has any advice or info please post it and let everyone know.
Reply to this
1) Look out for a class action lawsuit.
2) Buy a good tool set and download a service manual.
3)
Reply to this
How will we be informed if there is a class action lawsuit? I feel that we all have be screwed by UM.
Reply to this
I am in the same boat as far as the warranty issue goes. In fact I didn't find out about UM running off until I took my bike in. The dealer I have is a good one, they took a big hit from this already but they are going to get my bike back on the road for me.
BTW I found this page while I was looking for anyone having a class action law suit. lol
Reply to this
I am trying to find parts for a UM DTF 50
Reply to this
We are working very hard to find replacement parts for these machines, like all the other dealers UM left us out to dry. We do have and can get parts for several machines including the DTF50, 90, 110 and engine parts for the 200CC models. We also can get most all of the parts for any of the scooters. I hope this helps any out there who do have these machines. www.alpha-sports.com
Reply to this
I bought a new UM XSpeed 50 for my children to use to get back and forth to work back in 2006. The dealer told me not to use the alarm system that came on it. The scooter immediately began having a problem with starting. The electric start would not work. Then the kick start wouldn't get any results. Bike went to dealer in Murfreesboro, TN twice where it sat for over a month. We would get it back and the bike would quit starting again within a couple of weeks. Moved to Chattanooga and had the bike in for same problem at a dealer in Ooltewah where it once again spent a couple of weeks. Got it back. Still wouldn't start properly. Now it won't start at all. Then I find out that the company has closed its doors. Not surprised. UM products were crap. I just wished the dealer had told me so. I would have gladly spent more money on a reliable product. Now I have a very large paperweight sitting in my garage.
Reply to this
well at least they are consistent! my paperweight had the warranty voided since it was in the shop the first 5 months after i purchased it and was unable to have the oil changed every other month. no lemon law for motorcycles in Florida so a Class action Lawsuit sounds like a good idea to me.
Reply to this
UMs SUCK! V2C 650s JUNK!! The dealer I bought mine from, quit carrying them about 2 months after my purchase. They sited quality control issues, parts availability and warranty issues. Yep, they were right on. Replaced the 6th battery, 2 gas tanks that leaked, and issues with the gauge cluster. The only thing they did under warranty was the gas tanki...ONCE. Now I owe $7000 on a bike that is a fire hazard. ROTTEN BASTARDS!! If there is a lawsuit, I'll be the FIRST to sign against them.
Reply to this