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In my exasperation with Zero refusing to cover the cost of my motor replacement under warranty, I had a look at the definition of a safety defect here in the UK:

"A safety related defect is a failure due to design and/or construction, which is likely to affect the safe operation of the product without prior warning to the user and may pose a significant risk to the driver, occupants and others. This defect will be common to a number of products that have been sold for use in the United Kingdom"

While Zero has never offered an explanation to me of what caused the glitch, in my opinion the design of the motor meets this definition.  What is unclear is what percentage of motors are affected by the glitch, and how many other than me are affected by this problem (especially here in the UK).  While it appears that most motor replacements (with the exception of my own) have so far be covered under warranty, I wouldn't be surprised if more of us have to pay for these replacements now that the warranty periods have expired and the motors continue to age.

The UK standards agency has so far rejected my submission for a recall because DVSA "do not have similar reports of motor failure affecting those or other machines."  That being said, please let me and DVSA know if the glitch continue to be an occasional problem for you in the UK.

I'm not sure if anyone in other jurisdictions have considered this approach.

I have asked my self the same question and I would say it is somewhere between the two.  Past 60 mph, it seems to still be accelerating well, but approaching 67 and 68 mph, it appears to taper off quite quickly.  The s/w was updated along with the motor, so it could be limited somehow, either intentionally or unintentionally.

Flexydude: great to hear that you finally got it back.  Were you able to get it up to a good speed?  I too noted the loud whine from the motor at lower speeds, but didn't have any problems with the regen.
I was told that a software update was done with the new motor. We'll see if it needs bug fixes.

Mike: thanks, they did seal the battery pack for me.

This is my bike, which I brought with me from Canada to the UK last summer.  I'm spending 3 years here in the UK for my work.  The bike had been used as a demo bike and I bought it in Ottawa with 2000 miles on the odometer just before moving.  Unfortunately, I have suffered from the 'glitch' ever since.  Following installation of the 2 recalls last fall, Zero told me that my motor needed to be replaced.  Despite only 2500 miles on the odometer, Zero charged me 900GBP plus labour for the motor, which they describe as 'more than reasonable.'  I don't agree.

I picked my bike up yesterday and drove it the 98 miles home to Lincoln.  I found it to be a bit louder, but otherwise behaved very well.  The performance seemed to be slower, which is hard to quantify, except at top speed.  In both Eco and Sport mode, I couldn't get it over 70mph on level ground (full throttle).  As Zero have told me next to nothing about the motor, other than being a newly developed for the 2012 bike, based on the 2013 hybrid design, I don't know if this as expected.  Seeing as the bike is rated to 88mph, I see this as a major fault or deficiency.  I'll ride it a bit more today and ask Streetbike to inquire with Zero.

I have reported the problems with the motor as a safety recall to VOSA.  No response from them yet.  Seeing as their first two recalls didn't resolve this safety defect, I don't see why a 3rd recall shouldn't be issued for the motor.  I would also like to get an article in Green Car Reports or a motorcycle magazine about Zero's lack of support of their problematic old bikes, but even with the good work that some people have done on this forum, I think it would be hard to provide accurate statistics on what percentage of the 2012s have the glitch and require a motor replacement.

Wesley

Like mikeisted, I bought my 2012 S in the middle of last year from a dealer.  It had been used as a demo bike and only had 2000 miles on it.  Because it was 2 years old the warranty had just expired.
Within my first 100 miles I started getting the power loss glitch, possibly because I was riding it and leaving it out in the rain for the first time.  The firmware update and a new BMS board under recall reduced the impact of the power loss but didn't stop it.
After another 3 weeks at Streebike here in the UK and dozens of e-mails to Zero, I have finally conceded to Zero's "more than reasonable" offer (their words; definitely not mine!) to discount the price of the new motor and new MBB board by 25%.  I haven't had a positive experience with Zero, despite Aaron Cheatham, Zero's "Director of Customer Experience" <aaron@zeromotorcycles.com> indicating that we would be able to come to an agreeable resolution.  The most insulting part is Zero's argument that the bike's previous use as a demo and having been ridden in Canada will reduce its life.  Like that justifies it failing at less than 2500 miles!
$2100 later, the only silver lining is that Zero say they have very recently redesigned the 2012 motor.  They are providing me with a hybrid motor based on the 2013 design.  If they did their job correctly this time, the motor won't fail before its 1 year part warranty is up!  At this point, I'm not holding my breath.