Learn how much money you can save on shipping through the SEMA Freight Savings Plan by participating in the SEMA Freight Savings Program webcast today (Thursday, May 3) at 10 a.m. (PST). 

By using the collective strength of the association’s membership to secure substantial discounts with specific carriers, SEMA members save an average of $2,000 on shipping costs. Carriers include: FedEx Express, Fed Ex Ground and FedEx Freight, Roadway, Central Freight Lines and New Penn Motor.

For information on how to participate, visit www.sema.org/webinars.

All SEMA webinars are recorded, making it possible for members to view the presentation and listen to the audio recordings at a later date. Past webinar topics include:

MAP and Resale Price Policies (AKA Colgate Policies)
Presented by Barbara Sicalides
To download the audio and video portion of the webinar, click here.
To download the PowerPoint presentation as a PDF file, click here.

How to Deliver World-Class Parts Service (Jobber)
Presented by Gary Naples
To download the handout as a PDF file, click here.
To download the audio and video portion of the webinar, click here.
To download the PowerPoint presentation as a PDF file, click here.

SEMA State of the Association
Presented by Chris Kersting, SEMA President and CEO, and Mitch Williams, SEMA Chairman of the Board
To download the audio and video portion of the webinar, click here.
To download the PowerPoint presentation as a PDF file, click here.

Facts About Installer Certification
Presented by Ellen McKoy, SEMA Senior Director, Dealer Relations
To download the audio and video portion of the webinar, click here.
To download the PowerPoint presentation as a PDF file, click here.

How Manufacturers Can Communicate More Effectively With Distributors and Customers
Presented by Walter Vaughan, Steele Rubber Products and compiled by Scott O'Toole, Motor State Distributing
To download the audio and video portion of the webinar, click here.
To download the PowerPoint presentation as a PDF file, click here.

Management Strategies for the Most Challenging Situations
Presented by Tom Shay, Profits+Plus Inc.
To download the audio and video portion of the webinar, click here.
To download the PowerPoint presentation as a PDF file, click here.

More webinar presentations and recordings are available at www.sema.org/webinars.

At the recent 2007 Global Automotive Conference in Louisville, Kentucky, John Waraniak, SEMA vice president of Vehicle Technology and Phil Martens, president of ArvinMeritor's light vehicle systems, gave a compelling overview of the OEM and aftermarket industries. Their comments referenced and built on several of the keynote remarks made by Robert Lutz, vice chairman, global product development at General Motors.

According to Waraniak, one comment of particular interest was made by Lutz when he stated that two of the top growth areas that GM is focusing on for increased revenue are electronic services (such as OnStar) and parts and accessories.

When an automaker with the reach of General Motors singles out specialty equipment as one of its primary growth revenue streams, we can only imagine the opportunities this holds for industry's innovators.

Offering customers unique products through new-car dealerships is a powerful combination that can increase exposure and profits for accessory companies, and deliver a uniquely outfitted vehicle to consumers. To take your first steps toward establishing a relationship with new-car dealerships and the tools available to do so, read “The Best of Both Worlds” by clicking here.

Advanstar Communications will be the Gold Sponsor of the SEMA Installation Banquet & Gala Fundraiser to be held at the Hyatt Regency in Irvine, California, on July 27.

The SEMA Installation Banquet & Gala Fundraiser is where outgoing Board members are recognized for their service, newly elected Board members are introduced and the newest selections for the SEMA Hall of Fame are announced. The event includes charitable fundraising activities, and proceeds from the gala will be contributed to two very worthy causes—Childhelp and the Petty Victory Junction Gang Camp.

One of the fundraising activities held in conjunction with the annual banquet is the silent auction. The Silent Auction features a multitude of one-of-a-kind collectibles and memorabilia. Proceeds from the auction benefit Childhelp and Victory Junction Gang Camp.

Items that have already been graciously donated include a two-night stay for two couples at the Cibolo Creek Ranch in Texas, as well as passes to the Barrett-Jackson Auction.   

To donate an item for the Silent Auction, click here for a PDF form.

Click here for more information on the Installation Banquet & Gala Fundraiser.

New York Assemblyman Bill Reilich is the new chairman of the State Automotive Enthusiast Leadership Caucus. The Caucus is supported by SEMA. Reilich succeeds Montana Senator John Brueggeman who served in that capacity since the Caucus’ inception in 2005.

The Caucus is a bipartisan group of state lawmakers whose common thread is a love for automobiles. To date, almost 200 state legislators from California to New York have joined the group. The Caucus serves to raise the motor vehicle hobby’s profile in state legislatures across the country, and in the public's eyes. Many of these lawmakers seek to preserve and expand the hobby by improving existing motor-vehicle statutes and regulations.

Assemblyman Reilich immediately demonstrated his desire to get involved in keeping the laws in New York fair and hobby-friendly when he joined the Caucus in 2006. Reilich helped defeat a bill to effectively ban the use of brush and grille guards on New York public roads.

"Assemblyman Reilich understood that this proposed ban relied heavily on unsubstantiated claims that grille guards obstruct airbag sensors," said SEMA Vice President, Government Affairs Steve McDonald. "The public is already safe-guarded since it is illegal to sell or install a product that would take a vehicle out of compliance with a federal safety standard, in this case, fully operational airbag sensors. Our friend Bill Reilich is leading the charge in the New York Legislature to ensure that hobbyists can enjoy the extra margin of safety and styling provided by grille guards.”

Reilich has recently taken a seat on the New York Assembly's Transportation Committee in order to help protect the rights of motor-vehicle enthusiasts. In 2007, he introduced SEMA-model legislation to create a vehicle titling and registration classification for street rods and custom vehicles, including kit cars and replicas. In addition, his current advocacy efforts are sensitive to the needs of small businesses, the catalyst for the U.S. economic engine.

Despite his busy legislative schedule, Reilich still finds time to fit in all the "car stuff," having recently added a '81 T-Bird to his collection. He can often be found working on and refining his '57 Chevy.

“As a New York State Legislator, I have been diligent in my efforts to protect the interests of automobile enthusiasts in my state,” Reilich said. “When researching bills dealing with vehicle modification, I am careful to share with my colleagues the whole and accurate picture regarding proposed legislation. Those that don't share our love of the automobile are often unaware of the unintended effect of many of the bills. That is the role of the State Automotive Enthusiast Leadership Caucus, and I welcome this chance to serve as chairman. As its past leader, Senator Brueggeman has set the bar very high. Together the Caucus will continue to ensure the voices of the auto enthusiasts are heard nationwide.”

To view the entire list of State Automotive Enthusiast Leadership Caucus members, visit www.semasan.com/main/main.aspx?id=61681. To learn more about the group, contact Steve McDonald at stevem@sema.org, 202/783-6007.

SEMA’s Automotive Restoration Market Organization (ARMO) is currently leading the other councils in raising funds to benefit childrens' charities. 

ARMO and the Hot Rod Industry Alliance (HRIA) are leading the momentum behind the inaugural SEMA Charity Golf Tournament, and they’ve challenged other councils to follow suit.

Tee up to help Childhelp and Victory Junction Gang Camp’s charitable activities by contacting your council chairman or chairwoman (see below). You can elect to play on your council’s team or you can form your own team. Teams include:

Automotive Restoration Market Organization (ARMO)

Ernie Silvers, Egge Machine Co. Inc.
Jim Barber, Classic Automotive Restoration Specialties Inc.  
Alex Tainsh, SoffSeal
Todd Bidwell, Parts Unlimited Inc.

SEMA Businesswomen's Network (SBN)

Luanne Brown, eTool Developers
S. Kellie Colf, Eaton Detroit Spring
Tammy Holland, Competition Cams Inc.
Don Colf, Eaton Detroit Spring 

Young Executives Network (YEN)

Jason Bruce, Street Scene Equipment
Laurel Dasher, Uni-Marketing LLC
Lance Packard, Painless Performance Products
Tim Watts, Superlift Suspension Systems 

Even if you don’t play, it’s easy to support your favorite council by making a charitable pledge online. Click here to pledge anywhere from $10–$100 or the amount of your choice.

Slots in the golf tourney are also available by becoming an event sponsor, ranging from the Bronze Sponsor level ($1,500 includes two tournament entries) up to the Title Sponsor ($25,000 includes eight tournament entries).

The golf tournament is scheduled for July 27 at Strawberry Farms Golf Club in Irvine, California, with the SEMA Installation Banquet & Gala Fundraiser to follow in the evening at the nearby Hyatt Regency Irvine.

For more information on the inaugural SEMA Charity Golf Tournament or the SEMA Installation Banquet & Gala Fundraiser, please contact Arlene Wood at arlenew@sema.org or 909/396-0289, ext. 110.

Council Chairs:

ARMO
Ernie Silvers, Egge Machine Company Inc.
ernie@egge.com

HRIA
David Stutts, Hot Rod Air Inc.
dstutts@hotrodair.com

TORA
Todd Yeoman, American Technology
yeomant@atcomp.com

MRC
John Iannotte, N.A. Williams Co. Performance
jiannotte@nawilliams.com

MPMC
Lisa Chissus, Flex-a-lite
lisa.chissus@flex-a-lite.com

PRO
B.J. Leanse, Big Country
bleanse@aol.com

SCC
Jason Sakurai, Roadhouse Marketing
roadhouse@skybest.com

WTC
George Finch, American Racing Equipment
gfinch@americanracing.com

SBN
Luanne Brown, eTool Developers
luannebrown@etooldevelopers.com

YEN
Jason Bruce, Street Scene Equipment
jasonbruce@streetscene.com

BUSINESS SPOTLIGHT—CUSTOMIZE YOUR REAR ENTERTAINMENT OPTIONS

http://www.sbtv.com/?cid=61&segid=1057

With the introduction of the new Lamborghini Murciélago Superleggera, we wanted to check on the most popular parts in the Italian exotic league.

Between March 29–April 27, Ferrari, Lamborghini and Maserati enthusiasts spent $267,000 on parts and accessories via online auction, according to data from Terapeak, a developer of market-focused research software that monitors online sales and auctions (numbers rounded to the nearest hundred).

Ferrari fans spent the most—$162,000—perhaps due to the car’s relative high volume among this class. Lambo enthusiasts spent $72,700, while Maserati faithful accounted for $32,300 (more than 10% of it spent on the Biturbo model from the '80s).

Not surprisingly, exterior parts dominated sales, Ferrari and Maserati owners favored car covers and mirrors and Lambo owners leaned toward body-kit components. Exterior accessories comprised $64,000 of total sales.

Among interior parts—the next most popular category at $17,400—steering wheels, shift knobs and shift boots were most coveted across the board.

Not surprisingly, decals and emblems did a brisk trade—Ferrari insignia alone comprising $4,500 of total sales.

Terapeak's Motors P&A Research provides sellers with access to in-depth research on the past year of online auction data and allows users to get in-depth research reports on the competition and themselves. More at www.terapeak.com/motors. 

Accessories Can Rev Dealer Profits

Editor’s Note: SEMA commissioned Hedges & Company to complete a research project on behalf of its membership on auto dealership participation and interests at the SEMA Show. This article is a summary of various results from that project.

Dealership consolidation and shrinking profit margins have created an extremely competitive business environment for auto dealers. Even the parts and service department—often relied on as a mainstay of strong revenue for many dealers—is showing signs of dwindling income as better-built cars last longer and need fewer repairs. In search of ways to boost new-vehicle sales and generate revenue, more and more dealers are turning to specialty-equipment parts and accessories.

Attendance data from the 2006 SEMA Show points to growing dealer interest in specialty-equipment products. The number of dealerships attending the 2006 Show increased by 10% from the previous year even though the number of dealerships decreased during that time. More than 4,500 vehicle dealers representing approximately 2,500 dealerships attended the Show. The number of international auto dealers increased by 28% and included attendees from 61 countries and U.S. territories.

“There are several factors drawing more dealers to the SEMA Show,” said Ellen McKoy, SEMA senior director of dealer relations. “One is the fact that dealers are looking for new revenue streams and innovative ways to merchandise their vehicles. They are also looking for new ways to market their dealerships and attract customers they may not have traditionally attracted in the past.”

Peter MacGillivray, SEMA vice president of marketing and communications, said growing auto dealer participation in the Show is just the beginning of a trend that will benefit traditional SEMA member companies.

“It appears that we have a perfect alignment of opportunities right now, and it’s exciting to see some of this gaining momentum,” MacGillivray said. “There is consumer demand and heightened awareness of the products from this industry that are available for brand-new cars, trucks and SUVs. There is also a need at the dealer level for a new revenue stream, and there is the product and installation expertise of traditional SEMA-member companies that can meet both those needs. There is no industry that is better suited to address the accessory and personalization needs of consumers than traditional SEMA-member companies.”

Products Dealers Are Interested In

Not surprisingly, accessories was the top product category auto dealers attending the SEMA Show were interested in. Research showed that 69% of all dealers at the 2006 Show expressed interest in accessories. Wheels and tires was the second-highest category at 43%, and performance parts and accessories was third at 38%.

Accessories, safety equipment, sport compact and specialty equipment were the only categories to see an increase in dealer interest from the previous year. Sport compact had the largest increase in interest, going from 15% of dealers at the 2005 Show to 22% in 2006. Accessories and safety equipment both grew by 3%, and specialty equipment rose by 1%.

Restyling/ground effects was the product category that saw the biggest decline in dealer interest. At the 2005 Show, 26% of dealers expressed interest in the category, and only 15% selected it in 2006.

Product interest by region mirrored the Show’s list of top four products: accessories, wheels and tires, performance parts/accessories and audio, security and mobile electronics. However further analysis of product interests by region shows some unique preferences.

The Southern region showed a stronger interest in wheels and tires and audio, security and mobile electronics than the other three regions, with 52% of the dealers selecting wheels and tires and 42% selecting the electronics category.

Dealers from the Eastern region had more interest in paint, body & equipment (29%) and sport-compact (29%) products than their regional neighbors.

Safety equipment, paint, body & equipment and engine/engine parts were important product categories for dealers from the Midwest. These dealers showed less interest in performance parts and accessories, off-road parts and accessories and replacement parts than those from other regions.

Dealers from the Western region favored engine parts, safety equipment and specialty equipment. They had less of an interest in body shop service/repair and paint, body & equipment than other attendees.

A look at the product interests of auto dealers from the three countries with the highest attendance—Canada, Japan and Venezuela—again showed accessories as the product category attendees were most interested in. Canada’s interest mirrored that of attendees from the United States. Its top choices included wheels and tires and performance parts and accessories. Japan’s other top choices were wheels and tires and audio, security and mobile electronics. Venezuela’s choices were racing products, safety equipment and truck parts/accessories.

Advantage of Aftermarket Accessories

The concept of customizing a vehicle to fit the style and personality of its owner is familiar to the specialty-equipment market and easily understood by the companies that helped build the industry. Accessories allow consumers to put their own identity on a factory car or truck and create a vehicle that is a unique expression of themselves.

For auto dealers, accessorization can provide a new revenue stream that attracts customers to their showrooms and distinguishes them from their competition.

“We always try to point out to dealers the advantage of seeking products from our industry,” said McKoy. “The factories offer some very nice and attractive products, but the automakers are limited by what they can do to create product diversity and appeal to an individual’s tastes or lifestyle. That limits a dealer’s ability to stand out from the competition. Our industry, on the other hand, is notable for its product diversity and quality, innovation, speed to market and an array of product choices not available from the OEMs. Couple this with our industry’s ability to provide installation and marketing expertise, and you have a win-win proposition for both dealers and our industry.”

Proof of the industry’s innovation is seen at the New Products Showcase featured each year at the SEMA Show. At the 2006 Show, 1,634 new products were introduced from 515 companies. Of those, 252 were interior and exterior accessory products and 372 were performance–racing- and performance-street-related products.

MacGillivray pointed to the strength of traditional SEMA-member companies in understanding the market and meeting consumer needs. “It’s difficult for any company the size of the OEMs to have their finger on the pulse of what is going on at the grassroots level like our members have,” he said. “Our industry fills that role, and there is no group that can better meet the consumers’ needs.”

Dealers Bring Buying Clout

Dealers participating in the 2006 SEMA Show were there to do more than just kick tires. They had purchasing- and decision-making power. When it came to making the buying decision, 65% of the dealers at the Show were the decision makers for their businesses, and another 27% made buying recommendations. Combined, 92% of the auto dealers at the Show had the ability to make buying decisions or recommendations for their company.

Dealers provided the following information about their businesses: Nearly half (49%) were from single-location dealerships, and 24% reported having between two to 10 locations. The largest group (45%) of those attending reported sales of $5 million or less, and 10% had sales of $51 million or more.

Most of the dealers were experienced business owners; 58% reported that they had been in business for 11 or more years. The next highest segment was newer dealers that had been in business for two years or less, which comprised 17% of the attendees.

Whether for a small urban-based auto dealer or large suburban auto mall, McKoy said an accessory program could benefit dealerships of all types and sizes. Small operations that don’t have the volume or ability to offer special financing incentives or discounts can use accessories to gain a competitive foothold in a marketplace.

“One of the advantages of accessorizing is it allows a dealer to create an inventory of vehicles that are unique and distinctive and can’t be found on another car dealer’s lot within however many miles you want to drive,” said McKoy. “Smaller dealers can distinguish themselves from their larger counterparts by offering a special package that is unique to their dealership.”

An example of how a dealer can use accessories to create a unique product is by developing a special-edition package. Working with a local restyler, the dealership could create a special accessories and installation package that consumers can get only through them. This special-edition package offers the dealers a number of advantages, including drawing more traffic into the showroom, attracting a different demographic and giving the dealer the reputation of having products that can’t be found anywhere else.

Larger dealerships that routinely sell lots of cars do it through special discounts or incentives that reduce their profit margins. “Many dealers are looking for ways to boost their profit margin and sell more vehicles. They are also looking to entice more buyers to their showrooms and turn over inventory faster. Accessories can help them accomplish these objectives,” stated McKoy.

Teaming Up for Success

Growing auto dealer interest in specialty-equipment accessories, parts and installation expertise offers SEMA-member companies more opportunities to expand their businesses in this emerging market segment. Both dealers and specialty-equipment companies will benefit by working together.

SEMA members can benefit by finding ways to work with dealers to help them understand the value of accessorization. They can show them why it’s to their advantage to team up with specialty-equipment accessory providers who know and understand the business and can help them create a profitable and successful accessories program.

“There are programs offered through SEMA’s Professional Restylers Organization (PRO) council that give installers some very useful tools on how to do business selling directly to dealers,” said McKoy. “It’s to their benefit to take advantage of these tools.”

McKoy cautions auto dealers to not take on too much too soon, however. “Working with a local restyler or installer can be very helpful,” she said. “It takes a while to get the knowledge and resources to really do this well. When looking to launch an accessory program or expand on a fledgling program, it’s very valuable to tap into the expertise of a local restyler or installer—someone who knows the market, knows the trends, goes to the trade shows, has the vendor relationships and can provide just-in-time delivery. Those are tremendous assets that dealers can and should utilize,” said McKoy.

Show Attendance Makes the Sale

Dealer attendance at the SEMA Show gives them a better understanding of the industry and lets them see firsthand the accessories, parts and services aftermarket companies can provide.

“Going to the Show gives auto dealers direct knowledge about the industry,” said McKoy. “It lets them see that there is an OEM presence there, which lends a great deal of credibility to the relationship between our industry and what we do to improve vehicle sales for the automakers and dealers.”

Attending the Show gives the dealer a sense of the scope, the excitement and the value the specialty-equipment market can add to a business. McKoy encouraged accessory providers to invite their dealers to the Show and make a point of showing them around. “It sure is a lot easier to make a sale to a customer who is excited and gets it than to someone who is ho-hum,” she said. “I have yet to meet a dealer who has gone to the SEMA Show who hasn’t gone home saying: ‘Wow, I had no idea,’ or, if they’re a veteran and they’ve been before, ‘Wow, I’ve got so many great ideas I don’t know how I can implement them all.’ I can’t encourage dealers enough to go to the Show to learn about the industry and see how it can benefit their business and, ultimately, our industry as well,” said McKoy.

 Julie Hedges is a principal with Hedges & Company, a SEMA-member market research and marketing company. She can be reached at 330/474-1650 or www.hedgescompany.com.

4Wheel Parts, Colorado Springs, Colorado

It’s clear that the folks at 4Wheel Parts had layout in mind when they set up their store. Introducing a few small changes will give the facility polish, making it more visually stimulating to the customer.

I’ve said it before and I’ll say it again, break up the checkered floor. It is visual noise that distracts from the product the store is trying to sell. This can be easily done by using carpet runners that lead the customer throughout the store. Runners also indicate areas you want your customer to stop and take notice.

The store has a nice neutral base color. I’d continue this to the ceiling, covering the blue stripes. Use the new space for uniform signage above the display panels. The signage should be a simple font and should indicate the product being featured.

Be intentional with the merchandising tools provided by the vendors you feature. Spread these branded displays out evenly throughout the store, which will provide additional focal points while not being too overwhelming. I like the wheel display. Try placing it against a solid background. This will make the details of the wheels stand out more.

Another option I’d consider is changing the lighting. Florescent lighting has a tendency to be too harsh in a retail environment. Installing a simple track-lighting system will really warm up your space and make your merchandise pop. I’d also be curious to know what lies beneath the ceiling panels. It’s possible that they may be hiding unique architectural details such as beams or pipes. If you decided to remove the panels and paint the exposed space a uniform neutral color, this would give your store a more open feel. If you choose this route, replace the florescent lighting at the same time.

Remember, most merchandising appeals to your customer’s subconscious, so changes are often subtle but effective. Less is more. If a display is too complicated, chances are it is ineffective also.

Break up the checkered floor. This can be easily done by using carpet runners that lead the customer throughout the store. Runners also indicate areas you want your customer to stop and take notice.	Be intentional with the merchandising tools provided by the vendors you feature. Spread these branded displays out evenly throughout the store, which will provide additional focal points while not being too overwhelming.
I like the wheel display. Try placing it against a solid background. This will make the details of your wheels stand out even more.	Another option I’d consider is changing the lighting. Florescent lighting has a tendency to be too harsh in a retail environment. Installing a simple track-lighting system will really warm up your space and make your merchandise pop.

Design Help

Want to find out how simple changes to your store layout can increase sales and motivate your customers to buy and spend more? Submit photos of your store to editors@sema.org. Be sure the images are 300 dpi JPEGs, and be sure to include your name, company name, address, phone number, e-mail address and website URL (if applicable). Please include the words “Store Layout” on the e-mail subject line.

Todd Jacobsen is CEO of Utility Inc., a leading-edge design firm pioneering highly creative retail and environmental solutions. Located in Seattle, Washington, Todd can be reached at 206/467-8070 or via e-mail at toddj@utilityinc.com.

From the spy shooters at Brenda Priddy & Company comes these glimpses of the Lamborghini Murciélago Superleggera.

Here’s what the company had to say:

“Even pushing a reported near-700 hp, our camera crew caught up with this Lamborghini Murciélago Superleggera (so-called "superlight") near the Nurburgring earlier today.

“Lots of carbon fiber, plastic panels and even some traditional glass being replaced by clear plastic, and of course lots of money, make up this soon-to-be entry into the super car arena from Lamborghini.

“We are expecting an official announcement at the upcoming Frankfurt Motor Show.”

As SEMA has reported in the past, the National Highway Traffic Safety Administration (NHTSA) is targeting high-intensity discharge (HID) conversion kits for enforcement actions. 

The NHTSA has concluded that it is impossible to produce HID conversion kits (converting a halogen system to HID) that would be compliant with the federal lighting standard, Federal Motor Vehicle Safety Standard (FMVSS) No. 108. The noncompliant kits frequently include a HID bulb, a ballast, an igniter, a relay and wiring harness adapters. The NHTSA believes this equipment presents a safety risk to the public since the kits can be expected to produce excessive glare to oncoming motorists. In one investigation, the NHTSA found that an HID conversion headlamp exceeded the maximum allowable candlepower by over 800%.

Halogen equipment uses an electrical current to heat a metal wire coil filament to incandescence, while the HID conversion kit’s light source incorporates a discharge arc to produce light. HIDs require a ballast for operation. Under FMVSS No. 108’s Section S7.7 (replaceable light sources), each replaceable light source for headlamps must be designed to conform to the dimensions and electrical specifications for the headlamp source it is intended to replace. For example, if an HID kit is marketed as replacing an H1 light source, then it must match the H1’s wire coil filament size and location, the electrical connector size and location and the ballast design for use with an H1 light source (which is impossible since there is no ballast). Consequently, companies that are manufacturing HID light sources (e.g., D1S, D1R, D2S, D2R, 9500, etc…) with incandescent light source bases (e.g., H1, H3, H7, H8, H9, H11, H13, HB1, HB2, HB3, HB4, HB5, etc…) should be aware that this light source design would not be one that conforms to FMVSS No. 108, and could not be imported and sold in the United States without violating Federal law. (The importer is treated as the manufacturer and subject to the same fines and penalties that apply to a domestic manufacturer.)

The NHTSA has also determined that a commonly used disclaimer “for off-road use only” has no legal meaning and is not recognized by the agency as the manufacturer, importer and retailer are not in a position to control use once a product has been sold. Any equipment offered for sale which is covered by FMVSS No. 108 (headlamps, taillamps, side markers, etc.) must comply with the standard. 

On a related topic, the NHTSA has also stepped up enforcement against restyled combination lamps that are missing required functions existing on the original-equipment lamps. This would include replacement front- or rear-combination lighting equipment that do not have a required reflector, amber or red light, “DOT” marking or mismarked wattage. The issue is the same: any equipment offered for sale which is covered by FMVSS No. 108 must comply with the standard. 

SEMA published an article in the October 2006 edition of SEMA News which provides more information on how lighting equipment is regulated by both the federal and state government: http://sema.org/main/semaorghome.aspx?id=55913. SEMA is working with the NHTSA to ensure that the aftermarket lighting industry’s perspective is heard and, simultaneously, to remind its members to obey the current rules of the road. In this fashion, our SEMA members can offer a full range of cutting-edge, compliant motor-vehicle lighting products. For more information, contact Steve McDonald at stevem@sema.org.

A version of SEMA-model legislation to create a registration category for replica motor vehicles was approved by the Nevada State Assembly. Under the bill, replicas are defined as vehicles manufactured after 1968 to resemble vehicles manufactured before 1968. Replicas would be exempted from all emissions-inspection requirements. Registration as a replica vehicle would be open to 100 such vehicles each year and use would be limited to occasional transportation and other hobby-related activities. Titles for these vehicles would list both the year of assembly and the model year that the body of the vehicle replicates. The bill will next be considered by the Nevada Senate. For details, contact Steve McDonald at stevem@sema.org.

SEMA-supported legislation that would clarify that owners must pay only a minimal one-time registration fee for collector motor vehicles was approved by the Montana State Legislature and signed by the governor into law. Under Montana law, collector vehicles must be more than 30 years old and not used for general transportation. For details, contact Steve McDonald at stevem@sema.org.

Dates and locations for several upcoming SEMA-sponsored shows and activities have been announced. Details are:

>> SEMA Webinar: SEMA Freight Savings Program, May 3, 10 a.m. (PST)
>> Sacramento Legislative Rally, May, 23, Sacramento
>> Aftermarket eForum, Hyatt Regency O'Hare, July 16–18, Chicago
>> SEMA Installation Banquet & Gala Fundraiser, July 27, Irvine, California
>> MRC Rep Conference, September 26–27, Phoenix
>> SEMA Show, October 30–November 2, Las Vegas

For association-related travel, contact Manya Petropaki (manya.p@travelstoreusa.com) at Travel Store USA, 949/930-9268.

SEMA-member companies have posted several new listings for job opportunities at www.sema.org/classifieds. Working for a SEMA-member company has many advantages. In addition to working for a company that supports and contributes to the success of the overall industry, being employed by a SEMA-member company enables the employee to participate in webinars, access free market research, join SEMA committees and more. The newest classified listings posted under Positions Available include:

• Warehouse Manager, Irvine, California
• Corporate Sales Representative, Irwindale California,
• Sales, Novi, Michigan
• Technical Support, Mooresville, North Carolina
• Sales, Mooresville, North Carolina
• R&D Technician/Designer, San Clemente, California

SEMA members: Have a job opening that you need filled? Members are invited to post classified ads at www.sema.org/classifieds free of charge. Categories include Position Available, Positions Wanted, Rep Opportunities, WD Opportunities, For Sale, Items Wanted, Business Opportunities and Internships. Visit the site for details.  

• 2006
  - Rick Rollins, Superchips
  
• 2005
  - Paul “Scooter” Brothers, Competition Cams Inc. 
  
• 2004
  - Bob Keller, Turbonetics
  - Jim Wirth, Wirth & Wirth Advertising
  
• 2003
  - Brian Appelgate, B&M Racing & Performance
  - Bob Vandergriff, Hedman Headers
  
• 2002
  - Arnold Kuhns, SFI Foundation 
  - Ray Lipper, Centerline Wheels 
  
• 2001
  - Jim McFarland, Hypertech Inc.
  
• 2000
  - P.G. “Red” Roberts, McLeod Industries

To see all of the SEMA Hall of Fame members from 1969–2006, visit www.sema.org/main/semaorghome.aspx?id=56032.

Although only a very small percentage of the 1.3 billion Chinese citizens own cars, the number is growing. In 2006, automobile output and sales grew by over 25%, topping 7.20 million vehicles last year, according a recent CCID Consulting press release. The Chinese consulting firm states that China has become the second largest auto consumer and the third largest auto producer in the world.

The consulting firm also says that China’s automobile market’s maturing trend is reflected in four aspects: In terms of market structure, thanks to a new consumer tax policy, the demand for passenger cars in China has been greatly stimulated. Passenger cars are taking up an increasing proportion of the market, rising to 72% in 2006 from 69% in 2005.

As for consumption, consumers have gradually become more practical when making decisions. This plays a pivotal role in pushing forward continuous product improvement, continuous marketing innovations and the formation of overall competitive advantages.

As for policies, China has successively introduced a defective automobile recall system and new policies encouraging independent innovations and continued development of energy-saving and environment-friendly automobiles. These policies have indirectly pushed forward the maturity of the automobile market.

CCID Consulting believes that the “multi-polarization” of the global automobile industry will lead to a healthy development of the Chinese automobile market.

In 2006, foreign capital grew fast in China. All multinational groups have invested and built their second or third factories in China. Joint venture enterprises saw a big increase in their automobile sales. The elegant appearance and high oil consumption of U.S. brands, the excellent technology of German brands, and the high configurations and low oil consumption of Japanese and Korean brands have left deep impressions on people.

Domestic automakers in China have long adopted a strategy of “technology for market” to cooperate with foreign enterprises in an effort to improve their competitiveness. In fact, the year 2006 also saw China’s national brands start to step up their efforts. Different from the past, Chery, Geely and BYD Auto won more market recognition. FAW, Shanghai Automotive Industry Corporation (SAIC), ChangAn and Brilliance Auto also introduced their own new models and won considerable market recognition. In 2006, sales of national brands accounted for 26% of the total automobile sales in China, up 6% over 2005.

The table below provides a closer look at the top-selling vehicles in China in 2006, as well as how those vehicles’ sales compare over the past five years.

According to Linda Spencer, SEMA's director of international relations, "Small cars are growing in popularity with cars with an engine size of less than 1.6L comprising 60% of car sales. Rising oil prices, crowded conditions and an easing on temporary travel restrictions on cars with smaller engines on selected Shanghai congested roads has led to an increase in small cars. But luxury brands are also doing well. Mercedes had a reported 64% growth in January over the previous year, and Audi rose 32.5%. GM is also enjoying booming sales of its luxury brands such as the Cadillac STS."  

Spencer continued, "The Chinese passenger car market is just in its infancy with just 0.73% of the population owning a car in that market. As China’s regional income disparities level out and a steadily growing middle class emerges with income to buy both personal vehicles and accessories, vehicle sales will further rise. In the first two months of 2007, sales of passenger cars rose 33%. GM was the brand leader, pulling ahead of VW."

To sum up the performance of China’s automobile market in 2006, technological progress, price marketing and the improved quality of services contributed to a great increase in customer loyalty among repeat car buyers, but Chinese customers are most often buying their first car. The “multi-polarization” of the global automobile industry intensified market competition in China. It will also lead to the healthy development of the Chinese market.

CCID Consulting forecasts that China’s automobile market will grow steadily in the future, but market competition will intensify.

Changes in market demand due to policy and social factors resulted in the following characteristics in consumption behavior in the automobile market in 2006: more private consumption of automobile, small automobile displacement and low oil consumption. Changes on automobile appearance fashion will continue to 2007–2009. As for product supply, sales volume in China’s automobile market will grow by over 10%, 2007–2009. By 2009, sales volume is expected to top 10 million.
 

For more information on the Chinese and other global specialty-equipment markets visit www.sema.org/international

Sources: CCID Consulting Co., Ltd. (April 20, 2007). “CCID Consulting Says the Sales Volume of China's Automobiles Will Reach 10 Million in 2009.” Press release courtesy of PR Newswire; SEMA

Global warming and energy security worries are pushing more consumers to check out clean diesel vehicles, but buyer sticker shock and higher maintenance costs could push back against diesel growth in the United States, according to some industry observers who attended the Society of Automotive Engineers (SAE) World Congress. A recent article posted on Dieselforecast.com highlights a recent diesel panel discussion hosted at the latest SAE event.

According to the Dieselforecast.com article, all speakers answered “yes” to the panel’s theme: “Is the light-duty diesel ready for prime time” in the United States? But a few harbored doubts as to whether America can or should catch up with Europe and if U.S. consumers will be willing to change their habits in order to go diesel. About half of new vehicles in Europe are diesel-powered, compared with just 3% of the total vehicle fleet in the United States.

The rollout of ultra-low sulfur diesel (USLD) since October has been “a big success” said Christopher Grundler, deputy director at the Environmental Protection Agency’s (EPA) Office of Transportation and Air Quality.

According to the article, Grundler said about 90% of all USLD fuel refined in the United States, more than the federal 80% requirement, contains less than 15 sulfur parts per million. The EPA recently issued preliminary guidelines for manufacturers of diesel engines, including requiring vehicles come equipped with onboard system to alert drivers when urea or ammonia after treatments run low.

“This is very different than other emissions-control technologies that we’ve dealt with in the past,” Grundler said. “It frankly places a bigger burden on the user to be a part of the emissions-compliance solution.”

Manufacturers need to educate consumers on these other maintenance requirements that will go with operating a diesel, said Robert Lee, vice president powertrain product engineering at DaimlerChrysler AG. But Lee has reason to be hopeful about consumer interest.

He presented data from J.D. Power and Associates, as well as internal DCX data that showed 14%–17% of potential American buyers (depending on the type of vehicle, such as cars versus SUVs) said they were very interested in purchasing a diesel. Meanwhile 34%–39% responded as somewhat interested. 

“Our challenge is to look at this and try to find ways to get consumers to accurately perceive what the diesel engine is doing in today’s modern environment,” Lee said.

Lee added that three factors could contribute to the growth of diesels in this country: consistency or commonality in global emissions standards; diesel and gasoline price parity; and the necessary growth of biofuels, such as biodiesel, to offset potential shortages of USLD.

For Chrysler Group, Europe has been the training ground for diesel technology. Lee touted a list of 11 DCX models, including the Grand Cherokee, offered in Europe as diesels.

“As you think about this list, you might have a shopping list to think about for the future in the United States,” Lee said.

The University of Michigan Transportation Research Institute study asked 100 industry, academic, government and non-government powertrain experts to estimate clean diesel penetration in total North American production. Today, diesel cars represent less than half of 1%, but in 2015 the experts expect it to be 15% and hit 18% by 2020. Meanwhile, 6% of light trucks are diesel-powered but are expected to reach 25% in 2015 and 28% years later, according to the study.

But Jim Williams, senior downstream manager for the American Petroleum Institute, raised doubts the United States can approach those levels, even by 2030.

“The United States has some flexibility to change that mix, but it is not something you can do quickly or cheaply,” he said.

Williams estimates it costs between $500 million–$1 billion to convert a refinery from primarily gasoline to diesel production, and a five- to 10-year lead time to do so.

“This growth in diesel has been heavily influenced by tax incentives for the fuel, so much so that Europe is now importing diesel and exporting gasoline,” Williams said, noting that when Hurricane Katrina and Rita destroyed several Gulf Coast refineries, Europe was a major exporter to the United States. “Europe is complementing the U.S. gasoline supply rather than competing for energy needs,” Williams said.

On the maintenance side of the diesel issue, there was more optimistic news to be had. Tony Molla, vice president of communications for the National Institute for Automotive Service Excellence, was bullish about the current dealer and aftermarket maintenance infrastructure. For diesel to grow, however, more certified technicians will be needed to take over for the high numbers of technicians set to retire. Currently, most trade schools focus solely on heavy-duty diesel instruction, Molla said.

“The biggest challenge and opportunity we have is developing a curriculum for light-duty diesels,” Molla said. “The concern is while the infrastructure exists, we do not know if we’ll have the numbers of individuals we need to meet the (future) needs.”

The relatively high costs for selective catalyst reduction after treatment systems and the technicians to service them, is all the more reason for manufacturers to focus on engine efficiency, added James Eberhardt, chief scientist for the Office of FreedomCAR and Vehicle Technologies (FCVT) at the U.S. Department of Energy.

“To the extent that you can do more in the cylinder, in the combustion process, maintain the highest efficiency you can achieve and cut the amount demanded from the exhaust after treatment, we think that is the highest-priority research area,” Eberhardt said, noting concerns about the changing nature of the molecular composition of fuels.

Source: Anderson, Scott. (April, 2007). “Challenges in Converting Diesel Curious into Buyers.” Retrieved April 26, 2007 from www.dieselforecast.com.

AutoWeek reports that microcars are destined to achieve sales of only 100,000 units per year through 2013. In a recent article, AutoWeek reveals that CSM Worldwide, an automotive forecasting and market intelligence firm, predicts that U.S. consumers will shy away from cars that are smaller than subcompacts such as the Honda Fit and Chevrolet Aveo.

Automakers are anticipating a spurt in demand resulting from increasing fuel prices, which is giving rise to the release of DaimlerChrysler’s Smart ForTwo in 2008, and a possible GM production microcar in 2010 emerging from their recently unveiled three microcars concepts. Nevertheless, according to the article, CSM believes that sales of microcars—cars measuring less than 150 inches long—will dwarf that of subcompacts, which are expected to rise from an estimated 300,000 in 2007 to more than 550,000 in 2013. The reason: consumers will still reap the benefits of excellent fuel economy by having a bigger vehicle overall, comments Dave Terebessy, a CSM analyst.

However, high interest for the upcoming Smart ForTwo, indicated by the sheer number of visitors to the Smart website, demonstrates that there is a lot of “pent-up demand” for this microcar, states Ken Kettenbeil, Smart's director of communications. GM is also making sure that consumers embrace its concept microcars prior to going to production. Not only did the automaker put extra care into designing its concepts—each measuring 141 inches long—by giving them flared fenders for a bigger appearance, they are allowing interested consumers to control the fate of these microcars by having them vote for their favorite one on www.vote4chevrolet.com.

In the end, it may be up to car dealers to push these microcars and resist the urge to upsell to larger and more profitable cars, comments Jim Hall, vice president of the AutoPacific consulting firm.

Source: Kranz, Rick. (April 23, 2007). “Small Cars, Small Profits: Will Americans Embrace the Microcar Trend?” AutoWeek. Retrieved April 26, 2007 from www.autoweek.com.

A recent AutoWeek.com article reported that Jim Farley, now group vice president and general manager of the Lexus Division, said that Toyota Tundra buyers are more demanding when it comes to choosing the model with the trim, color and features that fits their needs versus buyers of the previous generation Tundra.

Like current buyers of domestic trucks, Tundra shoppers no longer accept whatever version happens to be on the dealer lots, Farley notes. Buyers of this redesigned truck are now adopting the need for personalization that domestic truck buyers have had for years. This could leave opportunities for specialty-equipment companies to jump in and offer the parts and accessories that the now more finicky Tundra buyers are demanding. The picture below shows an example of a customized 2007 Toyota Tundra that Ground Force displayed at the 2006 SEMA Show.

Farley told Automotive News that Tundra customers now ask for off-road packages with black leather interiors, for example, which translates to a built-to-order mentality that Tundra buyers of the past lacked. This is, in part, due to Toyota releasing 31 Tundra model configurations—nearly double compared to the 16 models offered for the previous generation. Also, Tundra buyers have more accessory options at the dealerships than in previous years, including several specialty-equipment company brands of truck-bed accessories and work-truck equipment.

With the new Tundra being bigger and more powerful than before—and Toyota making consumers aware of this with its aggressive marketing campaign—and now coming with more available dealer options, it may now be joining the ranks of the domestic trucks in the minds of consumers contemplating their next truck purchase.

Sources: Connely, Mary. (April, 23, 2007). “It’s All in the Mix: Toyota Dealers Have a Hard Time Finding the Exact Tundra Customers Want.” AutoWeek. Retrieved April 26, 2007 from www.autoweek.com; SEMA Research and Information Center.

U.S. demand for diesel engines and related aftermarket parts is forecasted to increase 3.8% annually through 2011 to $20 billion, a sign of the industry’s continued strength since coming off a high 2006 sales level.

According to The Freedonia Group, an industry market-research firm, diesel engine demand was artificially stimulated in 2006 by a boost in the key heavy-duty truck market as fleets sought to buy ahead of 2007 emissions-regulation changes. These changes will add both significant cost and uncertainty since first-year engines using new technologies may not be as robust in terms of reliability and durability. These and other trends are presented in “Diesel Engines to 2011,” Freedonia Group’s latest study on the diesel market.

The motor-vehicle market accounts for more than 70% of diesel engine demand. Heavy-duty trucks comprise the largest segment in this market, but the best opportunities will be found in the light-duty truck segment. Demand for diesel engines and parts in light-duty trucks will expand at a robust 9.6% annual rate, according to the report.

Although a much smaller market, passenger cars will also fare very well. Diesel engine-powered light vehicles currently account for less than 3% of new-car sales in the United States, so there is opportunity for a significant increase in penetration rates.

Off-highway diesel engines will experience a slowing but still robust demand through 2011 as new Tier-4 off-highway diesel-emissions regulations phase in between 2008 and 2015. These reductions, with particulate and oxides of nitrogen emissions mandated to be further reduced by about 90%, will likely be achieved through the use of control technologies such as advanced exhaust gas after-treatment.

The report also notes that shipments of diesel engine products from U.S. manufacturing sites will grow 2.3% annually through 2011 to $18.8 billion, driven by rising exports, which will benefit from the weakness of the dollar. Gains will be supported by technological enhancements and newer generations of diesel engines that meet government emissions standards. Shipments will be constrained by the continued shift of production to lower-cost regions, which will also increase the net trade deficit in diesel engines.

The report is available from The Freedonia Group. For more information, visit www.freedoniagroup.com.

Source: The Freedonia Group. (March, 2007). “Diesel Engines to 2011.” Retrieved April 27, 2007 from www.freedoniagroup.com. 

The Chevrolet Corvette is getting yet another boost in performance and luxury. The changes made to the 2008 Corvette come three years after the introduction of the current sixth-generation body style.  According to a recent AutoWeek article, the Corvette is getting “a boost in performance, more luxury features and, most likely, a higher price.”

The changes to the Corvette for the 2008 model year “are aimed at keeping the Corvette ahead of the performance-car pack amid stiffening competition,” according to Corvette’s assistant chief engineer John Rydzewski.

The new LS3 engine will be a 6.2L aluminum pushrod V8 boasting 430 hp, and replaces the 400hp 6.0L LS2. An optional two-mode exhaust system kicks up horsepower to 436. The Z06 model will also return for 2008 with 505 hp.

Even with increased horsepower, fuel economy remains the same: 18 mpg in the city and 28 mpg on the highway. Emissions are actually lower, which moves the new engine into a cleaner Environmental Protection Agency (EPA) certification category.

The 2008 Corvette goes from 0–60 mph in 4.3 seconds and has a top speed of 190 mph. The manual and automatic transmissions have also been upgraded. According to GM, the six-speed manual will offer more positive gear changes, and the paddle-shifted automatic has new hardware and a new controller that delivers faster shifts. The production of the 2008 Corvette is slated to begin in late July of this year, with sales expected to start in August.

The Corvette has always provided a great opportunity for SEMA members to make aftermarket parts, whether style or performance-related. One example of such a company is Callaway Cars. The company introduced its C16 Cabrio at the 2007 New York Auto Show. 

Engineers have integrated powertrain, brakes and suspension enhancements into the current Corvette platform. The supercharged 6.0L engine boasts 560 hp at 6,200 rpm and 529 lb-ft torque at 4,750 rpm.  An optional performance package increases output to 616 and 582 lb-ft and carries the Vette from 0–60 mph in 3.5 seconds.

Pricing for the C16 Cabrio starts at $128,765. Callaway was able to build this high-powered Corvette from data obtained from SEMA’s Tech Transfer program. The company requested specs for Z06 body panels, engine, transmission, and instrument panels, among other items. When specialty-equipment manufacturers obtain engineering data for new vehicles, such as the 2008 Corvette, it improves the accessory-friendliness of the vehicles. For more information on the Tech Transfer program, contact Oscar Muñoz at Techtransfer@sema.org.

Sources: Truett, Richard. (April, 27, 2007). “2008 Chevrolet Corvette: Faster, More Luxurious and Probably More Expensive.” AutoWeek. Retrieved April 27, 2007 from www.autoweek.com;
Callaway Cars. (March 19, 2007). “Callaway C16 Cabrio Makes World Debut At 2007 New York Auto Show.” Callaway Cars press release.

Good leadership drives the specialty-equipment industry, and business owners that clearly understand their role as leaders could help ensure a long business life ahead of their company. SEMA conducted a webinar earlier this year on leadership, and a presentation of that webinar can be viewed by clicking here. In addition to this valuable resource, a recent article posted on Dave Anderson’s LearntoLead.com discusses how founders of two auto manufacturers undertook their roles as leaders in their respective companies.

The following is a lesson in leadership presented by management expert Peter Drucker. There is a valuable lesson to aspiring “jacks of all trades” and micromanagers that must be heeded in order to maximize one’s own skills, that of your people and your organization overall:

The question, “where do I belong?,” needs to be faced up to and thought through by leaders as soon as their venture shows the first sign of success. But the question can be faced up to much earlier. Indeed, it might be best thought through before the new venture is even started.

That is what Soichiro Honda, founder of Honda Motor Company, did when he decided to open a small business in the darkest days after Japan’s defeat in World War II. Honda did not start his venture until he found the right man to be his partner and run administration, finance, distribution, marketing, sales and personnel since Honda decided from the outset that he belonged in engineering and production and would not run anything else. That decision made the Honda Motor Company.

There is an earlier and even more instructive example, that of Henry Ford. When Ford decided in 1903 to go into business for himself, he did exactly what Honda did 40 years later. Before starting, Ford found the right man to be his partner and to run the areas where he knew he did not belong—administration, finance, distribution, marketing, sales and personnel. Like Honda, Henry Ford knew that he belonged in engineering and manufacturing and was going to confine himself to those two areas.

The man he found, James Couzens, contributed as much as Ford to the success of the company. Many of the best-known policies and practices of the Ford Motor Company for which Henry Ford is often given credit—the famous five-dollar-a-day wage of 1913 or the pioneering distribution and service policies, for example—were Couzens’ ideas and at first resisted by Ford. So effective did Couzens become that Ford grew increasingly jealous of him and forced him out in 1917. The last straw was Couzens’ insistence that the Model T was obsolescent and his proposal to use some of the huge profits of the company to start work on a successor.

The Ford Motor Company grew and prospered to the very day of Couzens’ resignation. Within a few short months thereafter, as soon as Henry Ford had taken every single top-management function into his own hands, forgetting that he had known earlier where he belonged, the Ford Motor Company began its long decline. Henry Ford clung to the Model T for a full 10 years until it had become literally unsalable. And the company’s decline was not reversed until 30 years after Couzens’ departure when, with his grandfather dying, a very young Henry Ford II took over the practically bankrupt business.

This story and others like them beg the question that you must answer as a leader: Where do I belong? Look in the mirror, acknowledge the answer, have the good sense to stay there and build a team to supplement your personal weaknesses. Even if you’re under-capitalized or don’t think you can afford to hire additional personnel, you must ask yourself an even more important question: “Can you really afford to engage in areas where you have little competence?” And what is it costing you not to have people in key places in your organization that can execute their duties with excellence?

Two final questions: “What is the price you and your organization pay when you do have the right people in the right places, doing the right things, but persist in nit-picking them, continually second-guessing them or butting into areas where you have limited insight?”

And number two: “What will be the cost to you when these capable people have had enough of your micromanaging leadership style and leave your organization to go work for a leader who truly knows his or her place and has the good sense to stay there?”

Dave Anderson is an author, columnist, trainer and speaker for sales and leadership and has written several books on enhancing leadership skill.  For more information, visit www.learntolead.com.

Source: Anderson, Dave. (April, 2007). “Know Your Place and Stay There!” Retrieved April 27, 2007 from www.learntolead.com.

FEV Engine Technology Inc. (FEV) recently unveiled a developmental gasoline/E85 turbocharged direct injection (GTDI) engine that also features variable compression ratio (VCR) at the 2007 SAE World Congress. According to a company press release, the engine is being developed in-house, in tandem with several other DI engine projects that FEV is working on with various automakers. The engine boasts power similar to a V8 engine while delivering the fuel economy of a V6 engine and avoids many of the traditional drawbacks associated with the use of alternative fuels that typically have lower energy densities.

“This engine is a look at the future evolution of spark ignition engines as manufacturers seek to set a new standard for both power and fuel efficiency, yet face increasingly stiffer emissions requirements” said Robert Last, vice president of operations and communications for FEV.

“And by mating the GTDI with variable compression ratio capability, it will allow customization of the engine control strategy to adjust for the use of alternative fuels such as E85 that tolerate combustion without knocking at a higher compression ratios.” 

While offering the potential to generate V8 power from a V6 engine, this concept also provides a roughly 20%–25% percent improvement in fuel consumption.

Operation of the engine with a sensor or other means to identify the alcohol content in the fuel stream enables an optimal control strategy for VCR operation. During E85 operation, the engine can be operated at significantly higher compression ratios, with dramatic improvements in either performance or fuel economy, depending how the advantage is employed in the control strategy.

“While it’s still a developmental tool, we believe that we can achieve diesel-like fuel efficiency with a gasoline engine,” said Last. “The GTDI/VCR engine is just one example of advanced technologies that FEV is developing together with its customers that could ultimately reduce our dependence on imported oil.”

The National Renewable Energy Laboratory (NREL, a U.S. Department of Energy laboratory), PPG and other leading automotive suppliers presented research findings on a new glazed automotive windshield at the recent Society of Automotive Engineers (SAE) World Congress. PPG’s Sungate EP automotive glass windshield significantly reduced the transmission of solar energy into a vehicle, keeping the interior cooler and improving fuel economy, according to a PPG Industries press release.

According to the NREL study, Sungate EP glazing can reduce front seat temperatures 27 degrees F (15 C) and air-breath temperatures 16 degrees F (9 C). This reduces air conditioner workload, along with fuel consumption and carbon-dioxide emissions.

Sungate EP automotive glass is an advanced version of the original infrared (IR) reflective Sungate windshield. Previous research showed drivers could save up to 4%, or $66, in annual fuel costs using the Sungate windshield, which is featured on several current Mercedes-Benz and BMW models.

“Sungate windshields reduce the initial workload on a vehicle’s air-conditioning system, which represents the biggest use of power for climate control,” said Mukesh Rustagi, PPG global product market manager. “Because the air conditioner doesn’t have to work as hard, fuel efficiency increases, emissions decrease and consumers experience a cooler vehicle on entry.”

Rustagi said concerns about gasoline prices and global warming have made consumers more conscious of vehicles’ fuel efficiency and emissions output, so he comments that Sungate windshields benefit the environment, consumers’ pocketbooks and automakers trying to satisfy consumer preferences.

Sungate windshield technology also will help automakers meet the tougher emissions and fuel-economy requirements of the U.S. Environmental Protection Agency’s (EPA) revised Supplemental Federal Test Procedure (SFTP), Rustagi said, without compromising vehicle affordability, safety or performance.

“Consumers are seeking technologies that improve their experience with their vehicles and help them save money and be environmentally responsible,” Rustagi said. “In the J.D. Power & Associates 2006 U.S. Automotive Emerging Technologies Study, nearly three-fourths of respondents were interested in having advanced solar-reflective windshields on their next new vehicles, and the Sungate windshield from PPG helps automakers fulfill that consumer interest.”

Source: PPG Industries. (April 19, 2007). “PPG Automotive Glass Helps Drivers Stay Cool and Save Fuel.” PPG Industries courtesy of PR Newswire.

DuPont, a manufacturer and distributor of chemicals and high-performance materials, is seeking to license a process for making self-supporting conductive films for electrical applications, such as packaging for transporting electrical components and static dissipating laminates for critical workbenches and clean-room environments. According to a brief description of this technology on Yet2.com, the company says that these films can also provide permanent shielding from electromagnetic interference for sensitive electronic devices. According to DuPont, some of the benefits of these films include:

• They can be formed over a support and cast into a three-dimensional self-supporting piece.
• The technology uses fluoropolymers to ensure solvent and harsh chemical resistance.
• The films can be made adhesive using flame treatment.
• The films can be heat-sealed to themselves to form bags.
• The conductive additive of the films is not carbon black, leading to easier processing and more uniform electrical resistance.
• The conductive behavior is not impacted by humidity.

For more information on this and other licensable technologies, visit www.yet2.com.

Source: Yet2.com. “Electrically Conductive Fluoropolymer Films.” Retrieved April 27, 2007 from www.yet2.com.

Dine with top Mexican press and meet with thousands of buyers looking for specialty-equipment products. How? Be an exhibitor at the Mexico City based Salon de SEMA, part of the PAACE Automechanika show. Sign up now to participate in the Salon de SEMA set for July 11–13. For more information on this top opportunity to sell your products in Mexico and Latin America, contact Linda Spencer at lindas@sema.org or visit www.salondesema.com.  

Is your company interested in expanding its business overseas?  SEMA provides member companies with free international reports, statistics, databases of contacts and networking opportunities. Check out what’s available online at www.sema.org/international.

Magazine publisher Primedia said on Monday it will sell its Enthusiast Media division, which includes popular automotive magazines like Motor Trend, Automobile, and Hot Rod, to Source Interlink for $1.2 billion. According to a Reuters report, the all-cash deal is expected to close in the third quarter and will zero out Primedia’s debt.

Source Interlink, based in Bonita Springs, Florida, distributes magazines, CDs, DVDs and other entertainment products to over 110,000 retail locations throughout North America, and is part of billionaire investor Ron Burkle’s private equity firm, Yucaipa Companies.

Primedia’s Enthusiast Media group includes more than 70 magazines and 90 websites. Once completed, the deal will leave Primedia with its Consumer Source business, which publishes free consumer guides.

Sources:
-“Source Interlink to Buy Primedia Unit for $1.2 billion,” Micheal Flaherty, Caroline Humer, Reuters.com, 5/14/07

-“Burkle’s Source Agrees to Buy Primedia Magazine Group,”
Leon Lazaroff, Bloomberg.com, 5/14/07

In a move that had been hinted at for weeks, DaimlerChrysler AG divested itself from the bulk of its investment in Chrysler, handing over an 80.1% share of the company to the New York-based private equity firm Cerberus Capital Management, according to a Bloomberg report.

Cerberus will invest $7.4 billion in a new venture called Chrysler Holding LLC, while Stuttgart, Germany-based DaimlerChrysler will contribute a net $650 million. Industry observers may recognize Cerberus as the same group that offered to invest $3.4 billion in bankrupt auto-parts maker Delphi Corp., a deal that Cerberus is expected to back out of, Bloomberg reports.

"The sale of Chrysler represents a significant milestone in the automotive industry,” notes Carl Sheffer, SEMA vice president, OEM relations. “Never before has an American automotive company been acquired by an investment company with the added caveat of taking the company private.

“It will be interesting to watch how this transaction will impact future product offerings, profitability, dealings with the UAW and dealings with other manufacturers as they move forward. At this time, I don't see any significant impact on the relationships currently in place with SEMA and many of our member companies.”

SEMA members are located in each of the 436 Congressional districts (435 plus District of Columbia).

Nine California districts, as well as Rep. Joe Knollenberg's in Michigan, make it on the top ten list of Congressional districts in terms of number of SEMA members. 

Heading the list is Congressional Automotive Performance and Motorsports Cacucus member Dana Rohrabacher's district with one hundred and twelve SEMA members. For a list of SEMA members in each of the 436 Congressional districts (435 plus District of Columbia) click here. 

For a list of SEMA members by state click here. To identify your Member of Congress click here.  To identify which Members of Congress are in the Congressional Automotive Performance and Motorsports Caucus click here.  

Members Per Representative                                                                                                                                      

Truck Accessories Group has signed on as the first Gold Sponsor of the SEMA Installation Banquet and Gala Fundraiser Supported by DUB magazine, Presented by Advanstar. Truck Accessories Group includes popular brands Leer, Century, Raider, Pace Edwards, and State Wide Aluminum.

The SEMA Installation Banquet & Gala Fundraiser is where outgoing Board members are recognized for their service, newly elected Board members are introduced and the newest selections for the SEMA Hall of Fame are announced. Beginning this year, the event was combined with charitable fundraising activities, and proceeds from the gala will be contributed to two very worthy causes—Childhelp and the Petty Victory Junction Gang Camp.

One of the fundraising activities held in conjunction with the annual banquet is the silent auction. The silent auction features a multitude of one-of-a-kind collectibles and memorabilia.

Items that have already been graciously donated include a two-night stay for two couples at the Cibolo Creek Ranch in Texas, as well as passes to the Barrett-Jackson Auction.  

To donate an item for the silent auction, use the PDF donation form located here.

Click here for more information on the Installation Banquet & Gala Fundraiser.

With a new high-performance Nissan 350Z on the way, offered through the automaker’s NISMO performance division, we take a look at the most popular parts for the standard 350Z and its upmarket sibling, the Infiniti G35.

Between April 11-May 10, 350Z enthusiasts spent $601,282 on parts and accessories while their G35 counterparts shelled out $484,894 via online auction, according to data from Terapeak, a developer of market-focused research software that monitors online sales and auctions.

Exterior goods, lighting and lamps, and wheels and tires (in that order) proved the most popular category with 350Z fans, accounting for $62,491. Antennas, grilles, and wings and spoilers were the most sought-after exterior items, while headlight/taillight covers, xenon lamps, and taillights comprised the lighting category’s most coveted items. Wheels and tires accounted for more than 30 percent ($267,291) of the monthly total.

G35 enthusiasts also like their exterior goods, although in different order. Lighting and lamps was the most favored category, comprising $49,906 of the monthly total, with wheels and tires, and exterior accessories completing the top three categories.

Headlights, side markers and xenon lamps were the most purchased lighting components, while grilles, spoilers and wings, and body kits were the hottest exterior accessories. Wheels and tires nearly mirrored the popularity of those for the 350Z, accounting for $244,176 in sales.

Terapeak's Motors P&A Research provides sellers with access to in-depth research on the past year of online auction data and allows users to get in-depth research reports on the competition and themselves. More at www.terapeak.com/motors.