Initial production of the first design started prior to another round of EPA regulations. At the beginning, the company tried retrofitting the previous design in order to bring the motors up to the new standards. These modifications were not carefully engineered or designed and caused significant engine failures, most notably the powerhead failure. This eventually resulted in a recall of that generation of motors. The losses on these motors, the loss of reputation and the surge of competition from Japan and Mercury pushed the company into bankruptcy in 2000.