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ARB proposed regulation’s impact on a smaller OEM The Ariens Company.

ARB proposed regulation’s impact on a smaller OEM The Ariens Company. The Ariens Company. Manufacturer of high end consumer lawn and garden products under the Ariens name. Ariens snow blowers. Commercial products under the Gravely name.

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ARB proposed regulation’s impact on a smaller OEM The Ariens Company.

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  1. ARB proposed regulation’s impact on a smaller OEMThe Ariens Company. The Outdoor Power Equipment Institute 341 South Patrick Street • Alexandria, VA 22314 • 703-549-7600 • 703-549-7604 FAX • www.opei.org

  2. The Ariens Company • Manufacturer of high end consumer lawn and garden products under the Ariens name. • Ariens snow blowers. • Commercial products under the Gravely name. • Majority of the products use non integrated, class II engines. Ariens is purchasing the fuel tank and muffler and mounts them to the product. • Aftermarket component supplier, under the Stens name The Outdoor Power Equipment Institute 341 South Patrick Street • Alexandria, VA 22314 • 703-549-7600 • 703-549-7604 FAX • www.opei.org

  3. Smaller OEM’s Challenges • A smaller OEM faces additional issues in complying with the proposed regulation. • Fewer available resources. • Small California market share (less than 1% of US market). • Same or more cost to meet regulations as a larger company. The Outdoor Power Equipment Institute 341 South Patrick Street • Alexandria, VA 22314 • 703-549-7600 • 703-549-7604 FAX • www.opei.org

  4. Challenges (cont.) • Longer lead-time with vendors who cater first to the large OEM’s. • Higher cost because of the smaller volume. • Because of the cost of compliance coupled with small volume, it may becomes economically unfeasible to supply product to California. • This puts the smaller OEM in competitive disadvantage because it can not supply a full line of products to their California customers and lose their total business. The Outdoor Power Equipment Institute 341 South Patrick Street • Alexandria, VA 22314 • 703-549-7600 • 703-549-7604 FAX • www.opei.org

  5. Example – Tank modification for New Fuel Cap • Ariens has 15 different fuel tanks they provide on their class II products. • The number of tanks is driven by customer demand • All have the same fuel caps • We would have to redesign, modify, test verify and certify all the changes. • This makes the change economically prohibitive The Outdoor Power Equipment Institute 341 South Patrick Street • Alexandria, VA 22314 • 703-549-7600 • 703-549-7604 FAX • www.opei.org

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