SV-RCL-023-014 – Incorrectly Installed Accessory Chain Kits – Zero Motorcycles

SEOCONTENT-START

OMB Control No.: 2127-0004 Part 573 Safety Recall Report 23E-074 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Zero Motorcycles Inc. Submission Date : OCT 03, 2023 NHTSA Recall No. : 23E-074 Manufacturer Recall No. : SV-RCL-023-014 Manufacturer Information : Manufacturer Name : Zero Motorcycles Inc. Address : 380 El Pueblo Road Scotts Valley CA 95066 Company phone : 831-438-3500 Population : Number of potentially involved : 306 Estimated percentage with defect : 100 % Equipment Information : Brand / Trade 1 : Zero Motorcycles Model : Accessory Chain Kits Part No. : 10-08127 and 10-0814 Size : NR Function : Accessory Descriptive Information : Zero Motorcycles aftermarket final drive chain-kit with incorrect Instruction Sheet for non-factory replacement of Original Equipment final drive belt-system on SDS and XMX Zero motorcycle platform models with splined-shaft motors. Potential safety defect caused by following incorrect instruction sheet included in Subject Chain-Kits. Production Dates : OCT 28, 2016 – OCT 03, 2023 Description of Defect : Description of the Defect : The Instruction Sheet included with Subject Chain-Kits includes incorrect instructions that, if followed, may lead to the compromise of the retention compound of the motor shaft’s target magnet. FMVSS 1 : NR FMVSS 2 : NR Description of the Safety Risk : Should the retention compound of the motor shaft’s target magnet be compromised by following the incorrect instructions provided in the Instruction Sheet of a Subject Chain-Kit, the target magnet could subsequently move, leading to unexpected response of the motor, including a potential switch to reverse, which could cause a crash. Description of the Cause : Instructions provided with the Subject Chain-Kits did not call out sufficient heating time to break down the retention compound used for the bolt that Part 573 Safety Recall Report 23E-074 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 retains the original belt sprocket to the motor shaft. These instructions also incorrectly called out the use of an impact driver to remove this sprocket bolt. Insufficient breakdown of the sprocket bolt’s retention compound combined with the use of an impact driver may lead to excessive impact loads imparted to the motor shaft, which could lead to compromising the retention compound for the target magnet that is also on this shaft. Identification of Any Warning that can Occur : If the motor shaft’s target magnet moves, depending on the degree of movement, the unexpected response could manifest itself as a reduction in power and/or less predictable acceleration / hesitation in power delivery. Involved Components : Component Name : Original Instruction Sheet included / made availab Component Description : Chain Kit iSheet – Splined Shaft – NA ENG Component Part Number : 87-00075 Supplier Identification : Component Manufacturer Name : NR Address : NR NR Country : NR Chronology : 8/22/23: Zero notified of 3 warranty cases by single dealership on 2 MY21 and 1 MY23 FX motorcycles experiencing unexpected drive direction change upon recent installation of Zero Subject Chain-Kits. Quality issues Stop Ship of these kits. 8/22/23: Zero CS notified by customer of MY23 FX of accident reported to have taken place 8/21 due to unexpected drive direction change. No injuries reported. Zero determines this motorcycle also has Subject Chain-Kit recently installed by same dealership. 8/23/23: Product Integrity Team Zero (PITZ) meets to review concern. Action items issued. 8/25/23: PITZ decides to send Zero employee to dealership where the 3 warranty MCs are available for inspection. 8/30/23: PITZ reviews report of 8/29 inspection. All 3 show signs of target magnet movement due to retaining compound compromise. Team continues activities to determine root cause. 9/5/23: Review of Subject Chain-Kit Instruction Sheet leads PITZ to call for internal audit as well as onsite audit of dealership’s procedure. Part 573 Safety Recall Report 23E-074 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 9/15/23: PITZ reviews internal and 9/13 dealership audits, leading to suspect insufficient heat application to sprocket retention bolt on motor shaft could lead to excessive impact-driver use to remove this bolt, which could then lead to potential compromise of target magnet retention compound also on this shaft. Test requested to explore this potential root cause. 9/22/23: PITZ concludes results of impact test do indicate potential compromise. PITZ also informed of 5 more cases in warranty system appear to indicate same condition post non-factory installation of Subject Chain-Kits. 9/26/23: PITZ reviews all data and agrees to make recommendation to management. Team also reviews available data on mileage post chain-kit installation prior to manifestation of condition, with values ranging from 20 to 1,771mi, and concludes condition would manifest in no more than 5,000mi post installation. Final Chronology contained in Manufacturer Comments below. Description of Remedy : Description of Remedy Program : Zero Motorcycles dealers will be instructed to assess the mileage on each motorcycle with a Subject Chain-Kit. If they can assess that the chain-kit has a minimum of 5,000 vehicle miles without experience of any throttle response concerns, there will be no need to perform any corrective action. However, if the chain-kit has fewer than 5,000 vehicle miles, or the chainkit mileage cannot be determined, or the vehicle has experienced any throttle response concerns, the dealer will perform the required service that ensures proper target magnet retention to the motor shaft. Dealers will then submit a warranty claim for the parts and labor related to this service. If a customer has experienced a concern related to this condition outside of the warranty period, Zero Motorcycles will reimburse their corresponding out-of-pocket prior expenses. For unsold/uninstalled Subject Chain-kits in dealer inventory, the remedy will be a new replacement Instruction Sheet with the correct procedure that eliminates the potential to compromise the target magnet’s retention compound. How Remedy Component Differs from Recalled Component : The correct/remedy Instruction Sheet calls out a minimum of 4 minutes heating applied to the motor sprocket retaining bolt to break down its retention compound and the use of a hand-tool to remove it. The incorrect/recalled Instruction Sheet calls out 1 minute of heating and the use of an impact driver to remove the motor sprocket retention bolt. Identify How/When Recall Condition was Corrected in Production : Since this concerns the non-factory service facility removal of the Original Equipment belt sprocket from the motor shaft for installation of the Zero Subject Chain-Kit sprocket, this is not a production concern. Recall Schedule : Description of Recall Schedule : Zero Motorcycles expects to notify its dealer network no later than the week of 10/23/2023 and motorcycle owners no later than the week of 10/30/2023. Part 573 Safety Recall Report 23E-074 Page 4 The information contained in this report was submitted pursuant to 49 CFR §573 Planned Dealer Notification Date : OCT 24, 2023 – OCT 25, 2023 Planned Owner Notification Date : OCT 30, 2023 – OCT 31, 2023 Purchaser Information : The following manufacturers purchased this defective/noncompliant equipment for possible use or installation in new motor vehicles or new items of motor vehicle equipment: Name : NR Address : NR NR Country : NR Company Phone : NR * NR – Not Reported

**************************************************************************************************************

OMB Control No.: 2127-0004 Part 573 Safety Recall Report 23E-074 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Zero Motorcycles Inc. Submission Date : OCT 11, 2023 NHTSA Recall No. : 23E-074 Manufacturer Recall No. : SV-RCL-023-014 Manufacturer Information : Manufacturer Name : Zero Motorcycles Inc. Address : 380 El Pueblo Road Scotts Valley CA 95066 Company phone : 831-438-3500 Population : Number of potentially involved : 306 Estimated percentage with defect : 100 % Equipment Information : Brand / Trade 1 : Zero Motorcycles Model : Accessory Chain Kits Part No. : 10-08127 & 10-08140 Size : NR Function : Accessory Descriptive Information : Zero Motorcycles aftermarket final drive chain-kit with incorrect Instruction Sheet for non-factory replacement of Original Equipment final drive belt-system on SDS and XMX Zero motorcycle platform models with splined-shaft motors. Potential safety defect caused by following incorrect instruction sheet included in Subject Chain-Kits. Production Dates : OCT 28, 2016 – OCT 03, 2023 Description of Defect : Description of the Defect : The Instruction Sheet included with Subject Chain-Kits includes incorrect instructions that, if followed, may lead to the compromise of the retention compound of the motor shaft’s target magnet. FMVSS 1 : NR FMVSS 2 : NR Description of the Safety Risk : Should the retention compound of the motor shaft’s target magnet be compromised by following the incorrect instructions provided in the Instruction Sheet of a Subject Chain-Kit, the target magnet could subsequently move, leading to unexpected response of the motor, including a potential switch to reverse, which could cause a crash. Description of the Cause : Instructions provided with the Subject Chain-Kits did not call out sufficient heating time to break down the retention compound used for the bolt that Part 573 Safety Recall Report 23E-074 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 retains the original belt sprocket to the motor shaft. These instructions also incorrectly called out the use of an impact driver to remove this sprocket bolt. Insufficient breakdown of the sprocket bolt’s retention compound combined with the use of an impact driver may lead to excessive impact loads imparted to the motor shaft, which could lead to compromising the retention compound for the target magnet that is also on this shaft. Identification of Any Warning that can Occur : If the motor shaft’s target magnet moves, depending on the degree of movement, the unexpected response could manifest itself as a reduction in power and/or less predictable acceleration / hesitation in power delivery. Involved Components : Component Name : Original Instruction Sheet included / made availab Component Description : Chain Kit iSheet – Splined Shaft – NA ENG Component Part Number : 87-00075 Supplier Identification : Component Manufacturer Name : NR Address : NR NR Country : NR Chronology : 8/22/23: Zero notified of 3 warranty cases by single dealership on 2 MY21 and 1 MY23 FX motorcycles experiencing unexpected drive direction change upon recent installation of Zero Subject Chain-Kits. Quality issues Stop Ship of these kits. 8/22/23: Zero CS notified by customer of MY23 FX of accident reported to have taken place 8/21 due to unexpected drive direction change. No injuries reported. Zero determines this motorcycle also has Subject Chain-Kit recently installed by same dealership. 8/23/23: Product Integrity Team Zero (PITZ) meets to review concern. Action items issued. 8/25/23: PITZ decides to send Zero employee to dealership where the 3 warranty MCs are available for inspection. 8/30/23: PITZ reviews report of 8/29 inspection. All 3 show signs of target magnet movement due to retaining compound compromise. Team continues activities to determine root cause. 9/5/23: Review of Subject Chain-Kit Instruction Sheet leads PITZ to call for internal audit as well as onsite audit of dealership’s procedure. Part 573 Safety Recall Report 23E-074 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 9/15/23: PITZ reviews internal and 9/13 dealership audits, leading to suspect insufficient heat application to sprocket retention bolt on motor shaft could lead to excessive impact-driver use to remove this bolt, which could then lead to potential compromise of target magnet retention compound also on this shaft. Test requested to explore this potential root cause. 9/22/23: PITZ concludes results of impact test do indicate potential compromise. PITZ also informed of 5 more cases in warranty system appear to indicate same condition post non-factory installation of Subject Chain-Kits. 9/26/23: PITZ reviews all data and agrees to make recommendation to management. Team also reviews available data on mileage post chain-kit installation prior to manifestation of condition, with values ranging from 20 to 1,771mi, and concludes condition would manifest in no more than 5,000mi post installation. Final Chronology contained in Manufacturer Comments below. Description of Remedy : Description of Remedy Program : Zero Motorcycles dealers will be instructed to assess the mileage on each motorcycle with a Subject Chain-Kit. If they can assess that the chain-kit has a minimum of 5,000 vehicle miles without experience of any throttle response concerns, there will be no need to perform any corrective action. However, if the chain-kit has fewer than 5,000 vehicle miles, or the chainkit mileage cannot be determined, or the vehicle has experienced any throttle response concerns, the dealer will perform the required service that ensures proper target magnet retention to the motor shaft. Dealers will then submit a warranty claim for the parts and labor related to this service. If a customer has experienced a concern related to this condition outside of the warranty period, Zero Motorcycles will reimburse their corresponding out-of-pocket prior expenses. For unsold/uninstalled Subject Chain-kits in dealer inventory, the remedy will be a new replacement Instruction Sheet with the correct procedure that eliminates the potential to compromise the target magnet’s retention compound. How Remedy Component Differs from Recalled Component : The correct/remedy Instruction Sheet calls out a minimum of 4 minutes heating applied to the motor sprocket retaining bolt to break down its retention compound and the use of a hand-tool to remove it. The incorrect/recalled Instruction Sheet calls out 1 minute of heating and the use of an impact driver to remove the motor sprocket retention bolt. Identify How/When Recall Condition was Corrected in Production : Since this concerns the non-factory service facility removal of the Original Equipment belt sprocket from the motor shaft for installation of the Zero Subject Chain-Kit sprocket, this is not a production concern. Recall Schedule : Description of Recall Schedule : Zero Motorcycles expects to notify its dealer network no later than the week of 10/23/2023 and motorcycle owners no later than the week of 10/30/2023. Part 573 Safety Recall Report 23E-074 Page 4 The information contained in this report was submitted pursuant to 49 CFR §573 Planned Dealer Notification Date : OCT 24, 2023 – OCT 25, 2023 Planned Owner Notification Date : OCT 30, 2023 – OCT 31, 2023 Purchaser Information : The following manufacturers purchased this defective/noncompliant equipment for possible use or installation in new motor vehicles or new items of motor vehicle equipment: Name : NR Address : NR NR Country : NR Company Phone : NR * NR – Not Reported

**************************************************************************************************************

Dealer Operator/ General Manager Sales New Vehicles Sales Used Vehicles Business Manager (F&I) Service Parts & Accessories Administration Date: October 24, 2023 Source: Zero Motorcycles Customer Service Department If you have any questions, please contact the Customer Service Team. In the Americas: 888-RUN-ZERO (888-786-9376) Ext 2 In the EMEA region: +31 (0) 72 5112014 1 SV-RCL-023-014 10-08127 and 10-08140 Aftermarket Chain Kits NHTSA Campaign Number: SV-RCL-023-014 Purpose Zero Motorcycles has determined that aftermarket chain kits 10-08127 and 10-08140 had installation instructions that were incorrect. These instructions could lead to the compromise of the retention compound of the motor shaft’s target magnet. In the interest of motor vehicle safety and customer satisfaction, Zero Motorcycles has elected to initiate a voluntary Equipment Recall (Campaign 23E-074) to remedy this issue. The remedy is to have Zero Motorcycles dealers inspect and replace the motor with a new motor sprocket pre-installed, by Zero, on affected motorcycles (chain kit installed). It is a violation of Federal law for you to deliver any new motorcycle in your inventory that is affected by this recall until the remedy is completed. You may sell an affected motorcycle, but you may not deliver it prior to the remedy being completed. In addition, Zero Motorcycles urges each dealer to repair any previously owned motorcycles that are in its inventory prior to resale to a consumer. Applicable Models Out of the 306 wholesaled Subject Chain-Kits, any that were installed by non-factory service facilities (dealers / customers) and followed the incorrect instructions are potentially involved. Owner Notification In accordance with Federal regulations administered by NHTSA, Zero Motorcycles will contact registered owners of affected motorcycles, notifying them of this equipment condition and instructing them to contact their dealer for the associated remedy. Zero will also try to contact these customers via email. To protect the safety of our riders, it is our mutual responsibility to ensure the recall rework is performed on all affected motorcycles. Therefore, we strongly encourage you to reach out to your customers to make sure that they are aware of this program. You are also required by law to perform the recall service on all affected new motorcycles, with chain kit, in your inventory, which you installed, prior to delivery to your customers, and we urge you to perform the recall service on any previously owned motorcycles, with chain kit, which you installed, in your inventory. If you are aware of any unregistered owners of this affected motorcycle population, please advise us of their names, addresses and VINs, so that we may contact them, as required by Federal law. If you are not sure that this safety recall has been performed on a particular motorcycle, please contact Zero Motorcycles Customer Service for verification. Dealer Operator/ General Manager Sales New Vehicles Sales Used Vehicles Business Manager (F&I) Service Parts & Accessories Administration Date: October 24, 2023 Source: Zero Motorcycles Customer Service Department If you have any questions, please contact the Customer Service Team. In the Americas: 888-RUN-ZERO (888-786-9376) Ext 2 In the EMEA region: +31 (0) 72 5112014 2 SV-RCL-023-014 Procedure Refer to the appropriate Service Manual if motor replacement is required. Timing and Reimbursement To receive reimbursement for the work performed and any parts used under this service campaign, the dealer must submit a Warranty Claim for the replacement costs incurred that includes the following information: • Fault Summary: Chain Kit Installation Recall • Fault Area: 3000-Motor • Fault Code: 9904-Service Bulletin Recall • Service Bulletin / Recall: SV-RCL-023-014 Chain Kit Installation Recall • Warranty Claim Type: Service Bulletin/Recall See example below for full details. Zero Motorcycles believes that the time that should be allotted to this work is 3.0 hours. We do not reimburse any costs related to towing or loaner/temporary replacement motorcycles/vehicles. Dealer Operator/ General Manager Sales New Vehicles Sales Used Vehicles Business Manager (F&I) Service Parts & Accessories Administration Date: October 24, 2023 Source: Zero Motorcycles Customer Service Department If you have any questions, please contact the Customer Service Team. In the Americas: 888-RUN-ZERO (888-786-9376) Ext 2 In the EMEA region: +31 (0) 72 5112014 3 SV-RCL-023-014

**************************************************************************************************************

**************************************************************************************************************

**************************************************************************************************************

SEOCONTENT-END