So the story is half over and here's the update. This is the most important part as far as other KYMCO owners are concerned. So the first thing I did was to call the dealer I bought it from and explain the situation. He said he would turn it in as a warranty claim but it was up to KYMCO to cover it. A day and a half later he called me back and said that KYMCO would not cover it. He explained it was pretty much black and white for him. If they wouldn't cover it there was nothing they could do. He did however give me a name and phone number of the person he talked with and said I was free to contact him to plead my case. I did that and left the gentleman a message. He called back the same day and we discussed it. I let him know that I was very upset about this but I wasn't about to yell at him for this but don't let my calm demeanor give the impression that I'm OK with what happened. I gave him my concerns, history and what I felt was the issues. Now here comes the important part. I gave him my VIN number and he looked up the history on the scooter. The exhaust is only covered under the first year warranty which he explained had expired just a few weeks ago. So the black and white of it is that it would not be covered as the warranty is expired. He then went on to explain that he could do a "Goodwill Adjustment" and actually cover the item but in those cases he needs to report to Taiwan Corp. the reasoning behind it and show supporting evidence of why they gave away parts that were not under warranty. In this case he pointed out the regulate intervals indicated in the Owners Manual that bolts and nuts need to be tightened. He then said he contacted my dealer to see what RO's (repair orders) they had on file for my scooter. They had none as I do all of the maintenance myself, keeping meticulous logs and receipts. He said that my records would not be recognized and that all maintenance needs to be performed by a certified mechanic if they are going to be doing a goodwill adjustment. I explained how my dealer is 50 miles away and his solution was that I needed to make appointments on Saturdays and ride it up there for that. He understood my situation but based on my evidence he couldn't do anything for me. I guess I really couldn't expect the guy to roll over and just take care of the situation. You could tell from the conversation that this wasn't his first rodeo with a consumer complaint. With the way he explained it, there are avenues that could have helped me but though my actions (self maint.) I voided those (my words not his).
He was cordial in his conversation and we actually talked about me getting a bigger scooter. Which took us in another direction in the conversation which I will post elsewhere.
Upon further examination last night, I believe the top bolt is stripped out. My next step is to try and see if the pipe can be welded back together, then find a bolt/nut combination that will go all the way through the bolt hole. Loctite and lock washers on both ends of the bolt/nut combination. Maybe even a double nut. A coworker told me about aircraft bolts that have some sort of wire through the head of the bolt that locks it into place. I may investigate that also. Good day everyone.