That is a horrible run of circumstances. Usually there is more to a story but I believe what you say is true.
First step is contact Kymco USA Scooters, ATVs, UXV, Upcoming Events, Latest News and Press - KYMCO USA
http://www.kymcousa.com/Fill them in with EVERY detail. Second contact your state attorney generals office for more info on their "lemon Laws". At least you will be educated, and armed if needed. Contact the dealer, and ask him for the COMPLETE service record of the bike. Do NOT take anything less than the COMPLETE history. Inform him of steps one, and two. Make it clear you are not begrudging him or his shop (even if you are, and most likely should) you are simply aiming to resolve the issue since he will not/can not take the time to due so.
There are one out of several thousand bikes or bike/poor dealer combos that will end up like this. Don't worry. Every one I have seen has had a happy(albeit) drawn out ending. Stay on top of this. Do something to keep the ball rolling EVERYDAY. Do not wait for a return call. Be persistent but polite. Kymco USA is your main focus. They brought the bike here. They assigned your dealer. They are ultimately responsible for making this right.
Email EVERYDAY. Call for mr. head of usa sales EVERYDAY. Ask for status EVERYDAY. Miss a day, and you go back to the beginning of the line. You will get a replacement bike. Kymco has growing pains but is a responsible company.
EVERYDAY! EVERYDAY! EVERYDAY> Your new mantra? I have to contact Kymco.