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Even if Chrysler faces an uncertain future with its new owner, the market for Chrysler specialty-equipment parts is plenty healthy.

Between April 19-May 18, Chrysler enthusiasts spent $1,017,530 on specialty parts 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 interior components (in that order) proved the most popular categories
with Chrysler – not only Mopar – fans, the three categories alone generating $451,687.

Grilles, moldings and trim, and mirrors were the most sold exterior items – grilles alone accounting for $102,853, most of them for the 300C – while headlights, taillights and Xenon lamps comprised the lighting category’s most coveted items.

The most popular interior items include floor mats and carpets, trim pieces, and switches and controls.

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.  

According to Brenda Priddy & Company, the long-anticipated "Blue Devil" Corvette—also referred to as the SS—is in its final tuning stages and was just caught sporting a bright red paint job. This much-anticipated model will be the hottest Corvette ever and will be pitted against such super-sports cars as the Porsche Carrera GT and Ferraris.

Five Axis has announced that its new brand, Five Axis Designs, will be available to Scion enthusiasts through Scion’s OPTOMIZE accessories catalog. On offer is the four-piece lip kit for the 2007 xB, consisting of polyurethane front lip, rear skirt and side rockers.

The kit is available nationwide through Scion’s dealer network, and Scion will offer installation services and a limited lifetime warranty. A kit for the new xD model, as well as interior and exterior accessories, will follow later this summer.

"Scion is all about customization and innovation,” said Steve Hatanaka, Scion Accessories Manager. “Our partnership with Five Axis allows us to broaden our accessory line up and satisfy the demands of our core enthusiasts Troy [Sumitomo, Five Axis president] and his team are certainly at the leading edge of what Scion personalization can look like.”

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The U.S. Senate Commerce Committee unanimously approved a bill (S 694) designed to protect children from injuries or deaths in non-traffic vehicle incidents. The measure directs the National Highway Traffic Safety Administration (NHTSA) to require new vehicles be equipped with a means of alerting the driver if a child is behind the vehicle when it is being backed-up. The specialty-equipment aftermarket has been at the forefront of offering cameras and sensors to address the issue. The legislation now moves to the Senate floor for consideration. A similar bill (HR 1216) has been introduced in the House of Representatives.

It is estimated that at least 1,100 children have died in back-over incidents since 2000. Some vehicles, such as SUVs, are particularly vulnerable to blind spots. Under the legislation, the NHTSA would be directed to expand the scope of Federal Motor Vehicle Safety Standard No. 111 (Rearview Mirrors) to establish performance requirements that would effectively mandate installation of cameras or sensors on new cars. The bill would also direct the NHTSA to consider requiring power windows and panels to automatically reverse direction if there is an obstruction in the path, such as a child’s head or arm.

If the agency decides this is impractical or unnecessary, the NHTSA would be required to explain how it came to that conclusion. Additionally, starting in model year 2011, all cars with an automatic transmission would have to have a brake-shift interlock to help prevent vehicle roll-away. The driver is then required to apply the brake in order shift the vehicle out of park. For more information, contact Stuart Gosswein at stuartg@sema.org.

THE CAR: NASCAR made it official May 22, announcing its Car of Tomorrow (COT) will be come “the car” beginning next season. The CoT will be utilized in all Nextel Cup Series races next year. Originally, the sanctioning body had planned a gradual roll out for the CoT, which did not see it being used in every race until 2009.

IN THE COURTS: A judge ruled in favor of AT&T, issuing a preliminary injunction allowing the company to use its logos on the No. 31 Cingular Chevy of Jeff Burton and Richard Childress Racing in the Nextel Cup Series. NASCAR and Sprint-Nextel had sought to keep AT&T, which recently purchased Cingular, from displaying its logos on the car because of the exclusivity clause in Sprint-Nextel’s contract to sponsor the series. Cingular was allowed to remain in the series because it was involved prior to Sprint-Nextel’s commitment.

STREAK OVER: Indiana sprint-car driver Jon Stanbrough won six consecutive races at five different tracks during a two-week period, including a triumph in the Tony Hulman Classic at Terre Haute, Indiana. The streak ended May 20 at Kokomo Speedway when Dave Darland claimed the victory.

BACK ON TRACK: Champ Car World Series driver Paul Tracy is expected back on the track when the series resumes June 10 at Portland International Raceway. Tracy has been out of action since he was injured at Long Beach, California, in April.

TESTER: Three-time defending Champ Car World Series title winner Sebastien Bourdais tested for the second time with the Scuderia Toro Rosso Formula One team. He is expected to test again in June for a potential seat with the team in 2008.

PARTNERSHIP: Richard Childress Racing and Dale Earnhardt Inc. have formed a partnership to create Earnhardt-Childress Racing Technologies, which will build engines for both NASCAR race teams and sell powerplants to other teams as well.

NO. 1: NASCAR Nextel Cup Series point-leader Jeff Gordon remains on top of the National Speed Sport News Power Rankings.

SUBSCRIBE: National Speed Sport News has been published weekly since 1934. To subscribe to National Speed Sport News, click on the following link for a special industry rate: http://www.nationalspeedsportnews.com/subscribe.html?pid=NQ%2BVfhkepT4%3D.

NEWS NUGGETS

ESPN2 ANNOUNCES NEW TV SCHEDULE FOR O’REILLY THUNDER VALLEY NATIONALS: ESPN2 and ESPN2 HD will provide same-day coverage of qualifying and eliminations for the rescheduled O'Reilly NHRA Thunder Valley Nationals presented by Q at Bristol Dragway, July 6–8. Qualifying will be televised from 4 to 6 p.m. (ET) Saturday, July 7, and final eliminations will air from 7 to 9 p.m. (ET) Sunday, July 8. NHRA Race Day will air at 11 a.m. (ET) on July 8, to set the stage for that day's eliminations.

KING DEMON CROWN FIELD TO BE SET AT TOPEKA: With the rescheduling of the O'Reilly NHRA Thunder Valley Nationals at Bristol Dragway to July 6–8, points accumulation for the 2007 NHRA King Demon Crown bonus event for Pro Stock drivers has been shortened to 22 events. The O'Reilly NHRA Summer Nationals at Heartland Park, in Topeka, Kansas, June 1–3, is the last event where Pro Stock drivers can earn points for the lucrative event.

The King Demon Crown, which features the eight best Pro Stock teams from the last year, pays $50,000 to the winner. The popular race-within-a-race bonus event will be contested June 9 at the Torco Racing Fuels NHRA Route 66 Nationals at spectacular Route 66 Raceway near Chicago. The current top eight drivers include: Greg Anderson, Jason Line, Allen Johnson, Dave Connolly, Kurt Johnson, Mike Edwards, Greg Stanfield and V Gaines. Jim Yates and Richie Stevens, ninth and 10th respectively, need quick qualifying performances at Heartland Park, in Topeka, Kansas, to have a shot at making the eight-car lineup.

NHRA ANNOUNCES BUELL WEIGHT ADJUSTMENT IN PSM: Following a review of recent performances in the Pro Stock Motorcycle category, NHRA has announced that the minimum weight for all Buell-powered motorcycles will be increased by 10 pounds, from 615 to 625 (minimum weights include the rider). The increase is part of NHRA's ongoing efforts at maintaining competition within the category. The change is effective June 7, 2007, at the Torco Racing Fuels Route 66 NHRA Nationals at Route 66 Raceway, which is the next stop on the POWERade tour for Pro Stock Motorcycle. Harley Davidson V-Rod (160 CID) and Suzuki (101 CID) remain at 615 pounds.

JON OBERHOFER NAMED CREW CHIEF FOR DOUG KALITTA: Longtime Team Kalitta co-crew chief Jon Oberhofer will take over the reins as crew chief of the Mac Tools Top Fuel dragster driven by veteran Doug Kalitta. Oberhofer has relinquished his duties as co-crew chief of the Zantrex-3 Top Fuel dragster driven by Dave Grubnic. Connie Kalitta will retain his title as crew chief on the Zantrex-3 entry.

Oberhofer, a 38-year-old resident of Ypsilanti, Michigan, began his tenure at Kalitta Motorsports in 1991 working as a crewmember on the Top Fueler driven by Connie's son and two-time Top Fuel world champion (1994-1995), Scott. He worked his way up through the Team Kalitta organization to take over as clutch specialist in 1998 on the dragster driven by then rookie and soon thereafter Auto Club of Southern California Road to the Future Award winner Doug, Connie's nephew. He was promoted to crew chief of the Grubnic-driven rail in 2004, where he has served in that position since, guiding the team to two NHRA national event victories (2005, Topeka, Kansas; and 2006, Gainesville, Florida).

“This is a great opportunity for me and hopefully for our whole team,” Oberhofer said. “I'm going to miss working with the guys over on Grubnic's car, but they're in good hands. I've learned so much from Connie already, and I know that will continue in my new position. “I'm very grateful to him for everything he has done for me and my career in drag racing. More than anything right now, the Mac Tools car needs leadership, just like the Zantrex-3 car needs focus. I think the way we've approached this change will provide those things. I'm looking forward to working with Doug again and with all the guys on the Mac Tools team.”

COMING ATTRACTIONS

O’REILLY NHRA SUMMER  NATIONALS (AND NHRA SPORT COMPACT NATIONALS), TOPEKA, KANSAS, HEARTLAND PARK TOPEKA, JUNE 1–3: The ninth race of the NHRA POWERade season, this marks the beginning of the turn for home in the 17-event “regular season” portion of the NHRA POWERade Countdown to the Championship. Drivers will begin jockeying for one of the top eight spots that will guarantee them a place in the second stage, the Countdown to 4.

NORTHEAST NHRA SPORT COMPACT NATIONALS, ATCO, NEW JERSEY, ATCO RACEWAY, JUNE 9–10: Defending champions at the popular stop on the Sport Compact circuit are: Brad Personett (Pro RWD), Bryan Jimenez (Pro FWD), Jorge Lazcano (Modified), Ron Lummus (Hot Rod) and Norris Prayoonto (Honda Tuning Magazine All Motor).

TORCO RACING FUELS NHRA ROUTE 66 NATIONALS, JOLIET, ILLINOIS, ROUTE 66 RACEWAY, JUNE 7–10: NHRA legend John Force holds the track record here (4.665 seconds) and he has won three of his NHRA-record 122 races at the spectacular raceway, which hosted its first NHRA POWERade Series race in 1998. This race also features the eight best Pro Stock cars from the last year, racing for the $50,000 winner’s share in the NHRA King Demon Crown bonus event.

INSIDE THE NUMBERS

1: One time behind the wheel of a Funny Car was all it took for NHRA Pro Stock Motorcycle competitor Eddie Krawiec to know that being enclosed in front of a 7,000-horsepower engine was not for him. Instead, he decided to go with the wide open spaces that his 190-mph Screamin’ Eagle Vance & Hines Harley-Davidson gives him.

“I have always known that a Funny Car is something I would never drive,” Krawiec said. “I don't do well in tight spaces. I sat in a Funny Car once, and the second they put the body down, I wanted out.”

DRIVERS TELL ALL

MUCH-NEEDED VICTORY FOR TROXEL: Melanie Troxel ended a 13-month absence from the winner’s circle by winning the Top Fuel title at the O’Reilly NHRA Midwest Nationals at Gateway International Raceway near St. Louis. Troxel, one of eight women to earn a professional category victory in NHRA history, and one of six females to win in Top Fuel, says the victory couldn’t have come at a better time.

She moved to fifth in the points standings, and bettered her chances of holding on to one of the top eight spots as the NHRA POWERade Countdown to the Championship moves closer to the Countdown to Eight cut-off point (August 19, Reading, Pennsylvania).

“It takes a huge amount of pressure off of us to make it to that winner's circle again,” said Troxel of her third career Top Fuel win. “We moved up four spots in the points and are less than a round out of third [four points], so we're definitely in the hunt. With Bristol being rescheduled, we ended up with an extra couple of weeks before our next event. The way I look at it, that's a couple more weeks for me to enjoy being the most recent NHRA race winner.”

The Modified Automotive Group, a division of PRIMEDIA Inc., promoted Peter Tarach to editor-in-chief, and Paul Murphy to associate publisher of Modified magazine. Tarach began his career with Modified magazine in 2004 as the technical editor, and was promoted to East Coast editor in 2006. Murphy has been in the advertising industry since 1994 and has held several senior positions with major publishing companies before joining the Modified Automotive Group in 2003.

Norio Karashima, president and CEO of Yokohama Tire Corp. and president of Yokohama Corp. of America, was promoted to managing corporate officer. Karashima became president of Yokohama Tire Corp. and an officer of the Yokohama Rubber Company in 2004.

DENSO Sales California promoted Frank Cisek to senior manager from manager. Cisek is responsible for the aftermarket, DENSO brand, heavy duty and Latin America sales departments.

MEDCO named Scott Anderson director of marketing for the company’s mobile tool division. Anderson joins MEDCO from SK Tools where he was senior product manager and a member of its executive committee.

Keystone Automotive Operations Inc. signed an agreement to become the series title sponsor of the NMRA Ford Nationals and the Official Performance Parts Supplier of the NMRA and the NMCA Muscle Car Nationals. Keystone joins forces with ProMedia Events, producers of street-legal motorsports shows in the United States. 

Power Slot hired John Marshall as director of sales. Marshall is based in the company's Rockford, Illinois, regional branch. Marshall has more than 11 years of sales management experience. He held national account positions at K&N Engineering and Auto Meter.

The latest news from SEMA councils and committees:

Manufacturers' Representatives Council (MRC)

MRC members are encouraged to make plans now to attend the SEMA/MRC 6th Annual Rep Conference, September 26–27, at Pointe South Mountain Resort in Phoenix, Arizona. The two-day event will feature an Interactive Town Hall & Dinner covering the topic: “What Is Expected of an Agency or Manufacturer’s Rep Servicing Satellite Warehouse Locations?”

Panelists will include Chris Thomson (Airaid), Bob Arnold (Professional Products), Jim Gedney (Pace Edwards), Larry Montante (Keystone Automotive), Nick Gramelspacher (Meyer Distribtuing), and Donnie Eatherly (P&E Distributors). Jim Spoonhower, SEMA vice president of market research, will facilitate.

The following day will include rep meetings and roundtable discussions. To register, click here.

To learn more about the MRC, visit www.sema.org/mrc or contact Jan Desma at jand@sema.org.

• Melvin Benzaquen, Classic Restoration Enterprises Inc.
• Todd Bidwell, Parts Unlimited Inc. (Incumbent) 
• Ken DeVries, Trader National Publishing 
• Steven Moskowitz, Antique Automobile Club of America Inc.
• Roger Niehaus, Auto Custom Carpets Inc. (Incumbent)
• Sandy Patterson, Primedia (Incumbent)
• Curt Patterson, AMAA (Incumbent) 
• Jim Vinarski, Carlisle Productions Inc. (Incumbent) 
• Mark Vogt, Classic Industries/OER
  

• Del Austin - Street Thunder magazine (Incumbent)
• Tommy Daniels - Yearwood Speed & Custom (Incumbent) 
• Dick Dixon - Automotive Education Alliance Inc. 
• Mike Kinney - Las Vegas Rod & Custom 
• Rick Love - Vintage Air Inc. (Incumbent) 
• Bob Millard - Championship Auto Shows 
• Ross Ortman - Dakota Digital Inc. (Incumbent) 
• Brian Reese - Comp Performance Group 
• Eric Saltrick - Steele Rubber Products 
• Janeen Webb - Primedia
  

• The DVD: "Why Paint Colors Vary?" This valuable resource is now available. TORA members now have a valuable new tool that will help educate consumers about the challenges of the paint color-matching process. Available for dealers and installers to play in their waiting areas, the video is presented in a professional format and brings a consistent message on why paint colors vary. The TORA "Why Paint Colors Vary?" DVD is available to TORA council members free of charge (or $49.95 for non-TORA members). Other tools available from TORA are the CHMSL and altered-height CDs. For details or to place an order, contact Staci Perricone at 909/396-0289, ext. 104, or e-mail stacip@sema.org.

• PRO members: Join your colleagues at the 15th annual PRO Project-Planning Meeting, Thursday–Friday, June 7–8, at the Crowne Plaza Detroit Metro Hotel. This is your opportunity to take a stake in your council's future by taking advantage of an agenda that includes group brainstorming sessions, breakout group discussions and action planning for future council projects. The event also includes and exclusive reception at the Henry Ford Estate, complete with a private tour of the automaker's elegant mansion. To RSVP, e-mail to Summer Wright at summerw@sema.org by May 18. For hotel and airline reservations, contact Manya at Manya.P@travelstoreusa.com or 949/930-9268.

• The 2007 SEMA Internet Symposium, developed by the SEMA Sport-Compact Council (SCC), is being held to demystify the complex world of the Internet, explain what it means to the automotive specialty-equipment industry and provide SEMA members with the tools needed to tap into the $760-million specialty-equipment online marketplace.
  
  Scheduled for Saturday, July 28, in Irvine, California, the one-day event will focus on intriguing e-commerce issues that directly relate to the automotive aftermarket. The agenda includes a historical look at the evolution of the Internet, a comprehensive  explanation of search-word optimization and pay-for-click advertising, definitions for common terms and acronyms, what’s in store for the future, how all this affects intellectual property rights (IPR) and what legal rights to protecting your brand identity are available…and much more.
  
  “The Internet has revolutionized the automotive aftermarket and how business is conducted,” said SCC Chair-Elect Eric Breslow, of Power Slot/Power Performance Group. “The Internet Symposium is going to teach SEMA members what they need to know to stay on the Internet forefront. As e-commerce becomes more and more prolific, this information will be a necessity to conduct business in what has become a technology-dependent age.”
  
  Organizers are quick to point out that the SEMA Internet Symposium is the only one of its kind to speak directly to the performance aftermarket and address the industry’s unique needs.
  
  “Many in the automotive specialty-equipment industry do not fully understand the capabilities of the Internet,” said SCC member Tracie Nuñez, who says that 80% of companies in the automotive industry are not fully utilizing the business potential that the Internet offers. “Companies that do not have a website or those who are not utilizing the Internet will benefit from the Internet Symposium the most. However, even those who do have websites, or those who are pretty comfortable navigating the web, will discover new tricks and strategies, and learn how they can be more productive.”
  
  Companies that outsource their web-design work are strongly encouraged to attend the event. “You’ll learn how to identify shortcomings from your vendors and ensure that they are providing you with the right products and services at the right prices,” said Breslow.
  
  The event is $25 for SEMA members (includes lunch); non-SEMA members can sign up for $225. Space is limited. Visit www.sema.org/scc to register or to obtain more details
  

• Tracie Nuñez, Advanced Clutch Technology, was elected chairman-elect of the SCC. Nuñez will start her role on July 1 when current chairman-elect, Eric Breslow, Power Slot/Power Performance Group, takes over as SCC chairman.

• Get expert advice on a business-related problem. The SEMA Mentoring program, powered by the SBN, is available to all employees of SEMA-member companies. Ask a one-time question or be matched with an established leader. Visit www.sema.org/mentoring for details.

• Did you know that the annual SEMA Show Silent Auction, hosted by the SEMA Young Executives Network, raised more than $70,000 for the SEMA Scholarship Fund in 2006? If you are interested in donating an item or becoming involved in the 2007 Silent Auction, please visit our website at www.sema.org/yen.
  
  
• Did you know that YEN has more than 500 members networking in the industry and is the largest SEMA committee? If you are employed by a SEMA-member company and are under the age of 39, then you can join the YEN for free. If you are interested in becoming part of the team, visit the YEN website at www.sema.org/yen.
  
  
• Bianca Hennings, Window Canvas, was selected for the YEN Silent Auction Task Force Chairman. Hennings will assume the position when the current chairman, Dave Williams, Rampage Products, finishes his term with the YEN Select Committee in July. The SEMA Silent Auction, that is managed by the YEN, has raised more than $100,000 for the SEMA Scholarship Fund in the past three years. If you are interested in participating in the SEMA Silent Auction on any level, visit www.sema.org/yen for additional information.
  

• Did you know that YEN sponsors networking events and mixers at most of the major trade shows and conferences? If you are interested in becoming a member of the SEMA Young Executive's Network, please visit our website at www.sema.org/yen.

• Becoming involved in SEMA at an early age will help you work your way to the top. Did you know that current SEMA Chairman of the Board, Mitch Williams, was once a member of YEN? If you are interested in becoming a YEN member, visit our website at www.sema.org/yen.

• Lance Packard, Painless Performance, was elected YEN chairman-elect. Packard will assume the position when current chair-elect, Laurel Dasher, Uni-Marketing LLC, takes over as YEN chairman on July 1.

• Did you know that the YEN has a Member of the Month Spotlight on the SEMA website and that anyone can be nominated? To view previous selections or to make a nomination, visit our website at www.sema.org/yen.

Entries are still being accepted for the 2007 Tire Review Top Shop Award presented by Hennessy Industries, a new program that seeks to honor the "best of the best" independent tire dealers in the United States and Canada.

The Top Shop Grand Prize winner will receive a Coats APX90 tire changer, a $1,500 cash prize, airfare and hotel for two (2 nights/3 days) to the 2007 SEMA Show, a feature story on their business in the October issue of Tire Review and a specially designed trophy to display in the store.

Three finalists will each receive a Coats 1250 tire/wheel balancer, a $500 cash prize, a feature story on the dealership in the October issue and a specially designed plaque.

The Top Shop Award was created to highlight independent tire dealers who epitomize attributes we stress in every issue of Tire Review: exemplary customer service and retention, training and education, merchandising and promotion, professional standards and conduct, appearance, business management, community involvement and growth and achievement.

Dealers can nominate their own businesses, or others can nominate tire dealer businesses. Those making the nomination simply provide basic information about the dealership and write a short (300-word maximum) essay explaining why that dealership should be considered.

From there, all entrants are reviewed and a group of semi-finalists selected. Those semi-finalists will be asked to provide additional information for judging. A panel of judges, including industry professionals and a member of the Tire Review staff, will select four finalists and, ultimately, the 2007 Top Shop Award winner.

Deadline for entries is July 15. Download an entry form at www.TireReview.com by clicking on the Top Shop banner ad in the middle of the homepage.

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

>> SEMA Webinar: 10 Steps to Your SEMA Show Plan That Will Guarantee ROI and Success, June 10
>> 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-members 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 enable the employee to participate in webinars, access free market research, join SEMA committees and more. The newest classified listings posted under Positions Available include:

• Marketing Associate/Customer Service Support, Norwalk, California
• Truck Suspension Sales Tech, Costa Mesa, California    
• Regional Sales Manager - New Business Development, Sarasota, Florida    
• Sale/Inside, Huntington Beach, California
• Tech Editor and Media Contact, El Paso, Texas
• Sales, Las Vegas, Texas
  

The links below represent SEMA’s councils and committees, groups dedicated to specific market niches and professional groups within the specialty-equipment industry. For more each council and committee, click the link below, or e-mail member@sema.org to request more information.

SEMA Council and Committees

Restoration: Automotive Restoration Market Organization (ARMO)
Hot Rod: Hot Rod Industry Alliance (HRIA)
Light-Truck Accessories: Light-Truck Accessory Alliance (TORA)
Manufacturers’ Reps: Manufacturers’ Rep Council (MRC)
Motorsports: Motorsports Parts Manufacturers Council (MPMC)
Restyling: Professional Restylers Organization (PRO)
Sport Compact: Sport Compact Council (SCC)
Wheels and Tires: Wheel and Tire Council (WTC)
Businesswomen: SEMA Businesswomen’s Network (SBN)
Young Executives: SEMA Young Executives Network (YEN) 

According to information from The NPD Group, a consumer and retail information company, marketers of vehicle appearance products (i.e. car care) could see a boost in business this spring. The firm reports 12% of consumers surveyed last fall indicated they would spend more money on vehicle appearance this year; only 4% said they would spend less.

Early spring data indicates that consumers may be following through on their promises. Based upon NPD’s Early Indicator Report on sales through the auto-parts channel, dollar sales for appearance products and accessories were more than 17% higher in the month of March 2007 versus the same month in 2006.

“Traditionally, the spring season brings consumers outside and into the driveway for some much needed car care” said David Portalatin, director of industry analysis for the NPD Group. He adds, “The growth we’ve seen so far is especially encouraging, given that winter has lingered in many parts of the country a bit later than usual.”

Portalatin sees an opportunity for a broader impact beyond just appearance. He stated, “Marketers of aftermarket products and services should consider how they can leverage this opportunity to drive sales in many categories. They should look for ways to take advantage of any lift in consumer traffic that may be generated by automotive spring cleaning. For example, think about bundling and cross-promoting maintenance and/or repair-related categories to help consumers take care of their cars inside and out.”

NPD’s Car Care Trac adds insight into the appearance-product consumer to help automotive products manufacturers and retailers make the most of this marketplace opportunity. The data shows that although vehicle appearance is a concern for drivers across the demographic spectrum, consumers ages 18–24 are a bit more likely to purchase appearance products. This segment is quite image-conscious, and this attitude extends to their vehicles, especially this time of year. In addition, higher-income consumers are also more likely to buy appearance products. These consumer segments may hold the key to unlocking big sales this spring.

Having the right brands will also be an important factor, according to the NPD Group. When asked how they would respond if their preferred appearance-product brand was not available, one out of four consumers said they would not make the purchase at that time. One in five would go to a different store to find their preferred brand. Consumers also cited ease of use as playing a role in their brand choice. In fact, the average do-it-yourself consumer is 37% more likely to say “ease of use” was a reason for choosing a particular brand.

Although favorite brands and ease of use are driving forces in vehicle-appearance purchases, nearly half of the do-it-yourself appearance-product consumers make their purchases impulsively. These consumers are 47% more likely to decide to buy products once they have gone into the store, heightening the importance of in-store placement, promotion and appealing packaging.

Source: The NPD Group, Inc. (May 2, 2007). “NPD Reports Consumers Will Spend More On Vehicle Appearance This Year.” The NPD Group, Inc. press release.

Without a doubt, safety and security features and services are becoming an increasingly important part of automakers' arsenal as they try to differentiate themselves from the competition and woo more customers into their fold, according to a recent TechnoMetrica Market Intelligence article. In a recent newsletter, TechnoMetrica states that the trend of adding more features and services to today’s vehicles is not confined to safety and security. Information and entertainment are also key areas that are growing each day with things like DVD players, Bluetooth technology, satellite radio, navigation systems, ports and gaming consoles becoming more and more common.

TechnoMetrica’s research shows that consumers really want all these add-ons. However, they qualify that by adding that, not everything making its way into today’s vehicles are equally desirable. Consumers place heavier importance on features and services that have a concrete, directly practical use. Because of this penchant for practicality, navigational aides and safety or security services score highly among most Americans.

Items at the bottom of the list include things that have little directly applicable practical value for drivers—gaming consoles come to mind here.

But that’s not to say a market for in-vehicle gaming consoles doesn’t exist. It does. Especially among those who chauffer their children around a lot on long trips where anything that keeps the kids occupied is a blessing for weary drivers. Below are TechnoMetrica’s estimated penetration rates for selected in-vehicle features and devices:

• DVD Player–23%
• Satellite Radio–12%
• Navigation Systems/Features–10%
• Safety/Security Services–10%
• Ports for Multimedia Devices–10%
• High Definition Radio–7%
• Bluetooth Technology–5%
• Gaming Console–4%

Source: TechnoMetrica Market Intelligence. “Developing Trends.” AutoView newsletter.

The future of filters appears to be heading in a good direction, according to a new study from The Freedonia Group, Inc. A recent Aftermarket Business article states that filter shipments are projected to advance 3.2% annually through 2011 to $10.9 billion. Gains will be driven by ongoing sales in the aftermarket, which accounts for the vast majority of demand. Advances will also be spurred by pending changes in environmental regulations, particularly those involving cleaner air and a reduction in diesel engine emissions. Manufacturers’ increasing interest in reclaiming production inputs from process water and investing in water-recycling processes to reduce costs will also drive demand for filters.

Additionally, advances will be aided by an increasing penetration of newer products, particularly motor-vehicle cabin air filters, many varieties of home air and water filters and the development of a significant aftermarket within these segments. These and other trends are presented in “Filters” a new study from The Freedonia Group, a Cleveland-based industry research firm.

Shipments of air filters are expected to post the strongest growth through 2011, driven primarily by changes in environmental regulations and gains in the consumer market. The internal-combustion engine and related filter segment (oil, air intake, fuel and cabin air) is a relatively mature product group that is expected to post more modest gains but will benefit from the ongoing development of new types of diesel-engine filters and a growing aftermarket for cabin air filters.

The motor-vehicle market will continue to account for the largest portion of total demand, with a 24% share in 2011, despite below average growth, the company reports. The high volume of these oil, fuel and air-intake filters sold as original equipment and in the aftermarket more than offsets their relatively low unit prices.

Demand for filters in the other transportation equipment and utilities markets is projected to post the strongest gains, powered by current and pending regulations and concerns about the quality of air and portable water supplies. Demand for filters used in diesel-powered off-road equipment will also post strong gains, primarily stemming from pending regulatory changes.

“Filters” is available from The Freedonia Group, Inc. For more information, contact Corinne Gangloff at 440/684-9600, pr@freedoniagroup.com or visit www.freedoniagroup.com.

Source: “Sales Not being Filtered Out in Product’s Future.” Aftermarket Business. Retrieved May 18 from www.aftermarketbusiness.com.

The benefits of strategic planning are many, but the planning process itself has its own rewards, according to a recent article by Dan Beaulieu, president of D.B. Management Group LLC. The excerpt of his article below describes how companies can benefit by taking the time to develop a strategic marketing plan:

Does your company have a strategic business plan? How about a formal marketing plan? Does your team sit down together at least once a year and hack out how you did this year and what you plan to do next year?

How often do you really sit down with your team and talk about the future? Chances are you spend most of your time together talking about running your daily operations. But how often do you put these issues on hold and talk about your business, your future and your vision?

This is the one key factor that differentiates the good companies from the great companies. If you don’t take the time to reflect on where you’ve been and plan on where you are going, then you are not doing your job, says Mr. Beaulieu. Your team will never be solidly united and your company will never be great.

Planning does not have to be tedious; it can be a lot of fun. During the planning process, your team members will discuss their visions for your company. Try to get your staff to open up to focus on what is going on outside of your company; that is what really matters. Try to get them to focus on what current and potential customers want. Make the sessions as open and productive as possible. Make sure that you allow a decent amount of time for this exercise and that you are completely isolated, ideally at an off-site location.

All of your first reports should participate in these sessions, even HR and accounting. They have ideas, and they need to be part of the future as well. The sales manager should bring input from the sales team. As the number-one customer advocate, the sales manager needs to bring the customer to the table.

To make sure that the discussion goes in the right direction, Mr. Beaulieu likes to use a series of questions about the company. What kind of business are you in? Why should people do business with you? Also ask about your products—today and in the future—and about your competition. These questions, when answered intelligently (a short-answer essay test, not a true and false test),  will generate the basis for your strategic sales and marketing plan.

Here are some of the benefits you will derive from this exercise, besides having a good plan for the future:

• You will unite your team.
• You will have a common vision. By developing this plan together, everyone will feel ownership of the plan and the direction the company is taking. Do all of your disagreeing in private, and once your team emerges from the planning sessions, it will be one team, one plan, one vision.
• You will have woven the flag for the entire company to follow. People follow messages and ideas rather than money and other incentives.
• You will have a well defined company. You will know with clear insight where you’ve been and, most importantly, where you are going.
• You will know your message and be able to communicate to the rest of the team, your sales reps, your customers and your marketplace.
• You will have a great way to measure your progress. Part of developing a good plan is setting goals and then measuring performance against those goals. You will have put in place a successful process that you can use over and over again, year after year. Mr. Beaulieu is a proponent of the idea of having quarterly updates to check on how things are going against the plan you developed.

Make sure that you stick to your plan, but keep it flexible. Try to develop a plan every year. The first year will be the toughest, but the second and third years will be the most dangerous with the temptation to get lured into the “ditto” mindset. This will happen when you start hearing yourself or your teammates say things like, “We covered that pretty well last year; there is really no reason to cover that again this year.”

Treat every year as a new year. Build on the previous year’s plan, but please do not dilute the quality of your brainstorming session this year because “we already did this last year.” Give this a try this year.

Mr. Beaulieu is a marketing expert who helps companies boost sales with targeted strategies, tactics and communication plans. After working as a top sales executive for three major fabrication companies, he now heads up D.B. Management Group. For more, visit www.dbmpcb.com.  

Source: Beaulieu, Dan. “Benefit from Sales and Marketing Plan!” www.dbmpcb.com.

Automakers aren’t the only companies taking a keen interest in plug-in hybrid-electric vehicles (PHEVs). Electric utilities are realizing development of such technology could bolster their bottom line, as well, according to a recent WardsAuto.com article.

Although PHEVs offer promising fuel efficiency, they face a number of hurdles before being introduced to the marketplace. Arguably, the most significant challenge is the way the nation’s energy grids will handle the additional power needed to recharge large numbers of plug-in vehicles.

GridPoint Inc., a Washington-based energy-management company, says it has the solution and is working with both utility companies and automakers to make PHEVs viable. Established in 2003, GridPoint’s first order of business was the creation of a standalone power unit called GridPoint Central to be used by utility customers to monitor their energy use. Similar in size to a standard refrigerator, customers can track their energy consumption through the GridPoint unit or via a dedicated website.

“You can log on to our site and see your usage for the month,” Brian Golden, GridPoint’s vice president-product strategy, told Ward’s Auto. “You can see the number of kilowatt hours used and their dollar value.” For example, he says, “You could see that you spent $140 running your air conditioner last month and change your operating characteristics to save money.”

A system that allows fine-tuning of household energy use would appear a perfect fit for PHEVs, which require massive amounts of electricity to recharge their batteries. Golden says a PHEV owner could program GridPoint Central to recharge his vehicle during off-peak hours when electricity is cheap. Or, if necessary, the owner could override the program, allowing for charging during peak hours, albeit at a greater cost.

The way it would work, Golden explains, is the GridPoint Central unit would be owned by the electrical utilities and rented to customers for about $20 per month, with an additional $10 monthly fee for the online monitoring service. Customers would be required to sign a contract with the utility company that allows for greater control over the individual’s energy use by optimizing the flow of power for more uniform electricity output. The peaks and valleys of everyday energy consumption would be leveled out, and energy that normally goes to waste during off hours would be used to charge PHEVs. As part of the deal, the utility would pay customers about $5 a month to access power stored in a stationary PHEV’s batteries when needed during peak hours, minimizing the chance of a grid overload, Golden says.

Because PHEVs run on both gasoline and electric power, in the unlikely case a vehicle’s batteries were drained completely by the utility, the owner still could drive the car with minimal inconvenience. Golden says, theoretically, a PHEV owner could operate his vehicle on electric power without ever paying a dime by programming the GridPoint Central system to sell power borrowed from the vehicle’s batteries for more than the customer’s original cost. For example, if a vehicle was to recharge itself at night at a cost of $0.08 per kW/hour, its owner could sell back the power to the electric utility at $0.50 per kW/hour.

“You could get all your fuel paid for the lifetime of the car,” Golden says. “That’s why you need an intelligent platform to manage this.”

With the technology in place to interact with electric utilities, Golden says his company now is working with several automakers to overcome some major roadblocks before PHEVs can be recharged through the GridPoint system. These include how to instruct the vehicle to discharge its energy and the way in which it would do so. “We’re working with automakers on the discharging. It’s not something (PHEVs) were originally designed for,” Golden says. “Also, how do you get power back to the electrical grid? Maybe through the same plug, but we’re not sure yet.” Golden predicts PHEVs will be on the road in about three years, and GridPoint should be able to interact with them seamlessly in about five years.

But while Golden’s company is confident all the bases are covered, some auto-industry insiders are not so sure. Susan Cischke, senior vice president of sustainability, environment and safety engineering at Ford Motor Co., says she is not convinced the nation’s electric grid will be able to handle the additional loads created by a proliferation of PHEVs. “Having lived (in southeast Michigan) a couple of summers ago when the (regional) grid went down, I don’t know if it’s ready,” she tells Ward’s Auto. “I do agree there’s a real opportunity to take advantage of off-peak power, but I think that more study would need to be done.”

Another concern of Cischke’s and others is the advancement of hybrid-battery technology.

Today’s hybrid-electric vehicles use nickel-metal-hydride batteries, which are durable but don’t hold enough energy to be viable for use in PHEVs. Many automakers say the solution is lithium-ion batteries, but they cost much more and are not as durable. As such, capable energy-storage devices are needed before PHEVs can be readied for production, Cischke says. The cost to accelerate the development of lithium-ion batteries currently rests largely with the auto industry and a handful of battery producers. A new business model likely will have to be implemented to speed along development, perhaps through government subsidies, Cischke says. Another alternative is to have the power companies own the batteries, she says.

“At one time, the phone company used to own all the phones, so maybe there’s a different model out there,” she says. “The model we know today may be different (in the future), it may be one in between.”

While acknowledging the obstacles, Cischke admits GridPoint’s business model is intriguing. Considering that much of the criticism surrounding the use of E85, a blend of 15% gasoline and 85% ethanol, is the lack of a public refueling infrastructure, GridPoint’s PHEV plan has the necessary electrical grid already in place. “I definitely want to talk to (GridPoint),” Cischke says. “I think we have to expand our view of alliances and partnerships to accommodate a full range of transportation options.”

Source: Pope, Byron. (May 14, 2007) “GridPoint Readies PHEV Battery-Charging System.” WardsAuto.com. Retrieved May 17, 2007 from www.wardsauto.com.

As automotive tire-pressure monitoring system (TPMS) mandates come into effect, Texas Instruments Incorporated and Transense Technologies PLC have developed what they say is the automotive industry’s first targeted piezo-electric surface acoustic wave (SAW) sensor based system for TPMS applications. According to a recent Texas Instruments press release, the sensor units operate wirelessly, require no power source and are typically 11 millimeters x 3 millimeters in size and less than 2 grams in weight.
 
By using the company’s new sensor in tire-pressure monitoring systems, braking distances and the risk of accidents due to tire under inflation or failure are reduced, TI says. The company also says that fuel efficiency is also enhanced by up to 10% through properly inflated tires.

SAW sensors utilize a radio frequency electric field to generate an acoustic wave which spreads over the piezo-electric substrate surface, transforming back to an electric field and re-transmitting for measurement. Texas Instruments says these new sensors utilize “32-bit DSP performance and high integration of the F28x digital signal controllers” in order to perform essential real-time data handling, calculation and reporting functions. The F28x device calculates the spectrum of the SAW impulse response, finds the frequency of natural oscillations of the SAW sensor and can handle additional tasks, such as system communication via the on-chip CAN BUS, for instance. A radio-frequency application-specific IC (ASIC) dual-channel controls radio-frequency transmission and reception.

Most existing TPMS are direct active systems utilizing a silicon micro-electro-mechanical system (MEMS)-based sensor inside each tire powered by a battery. Pressure and temperature information is transmitted by radio from each of the wheels to an electronic control unit (ECU) and displayed as either a number or a warning indicator. Batteries inside tires add weight, have limited life and cannot be replaced. With 1.2 billion tires sold annually, this waste represents an increasing environmental hazard.

The passive SAW sensor incorporates a three element die within a small gastight capsule. Pressure is transmitted via a diaphragm to deform the die and mechanically strain one of the elements, while all three elements see thermal strains. The sensor is interrogated by an radio-frequency signal—no battery is required—first exciting, then transmitting the three resonant SAW frequencies from which independent pressure and temperature are subsequently determined.

According to the U.S. Department of Transportation (DOT), up to 27% of passenger cars and 33% of light trucks operate with under inflated tires, resulting in an estimated 23,000 crashes and 535 fatalities each year. As part of the November-2000-enacted Transportation, Recall Enhancement, Accountability and Documentation (TREAD) Act—which affects all light motor vehicles registered after September 1, 2007—TPMS technology must alert drivers of significant under-inflation of their tires.

Source: Texas Instruments Incorporated. (May 14, 2007). “First Automotive Surface Acoustic Wave (SAW) Sensor Coupled With TI Controller Enhances Fuel Efficiency and Safety.” Texas Instruments Incorporated press release courtesy of PR Newswire.

Despite the sale of Chrysler group by DaimlerChrysler, powertrain analysts at CSM Worldwide expect the restructured Chrysler to remain highly competitive in the powertrain arena well into the next decade. According to a recent CSM Worldwide press release, Chrysler has been aggressively procuring designs and outsourcing powertrain production from its global partners. The link that will be maintained with Daimler AG will be a key element of this strategy.

“Decisions regarding the long-term supply of Chrysler engines and transmissions have already been made,” said Eric Fedewa, vice president of global powertrain forecasts at CSM. “Moving forward, Chrysler will increasingly outsource its powertrain programs, both design and assembly, to outside suppliers and strategic partners.”

As an example: of the engines Chrysler assembles, 42% are purchased designs while almost 35% of its transmissions are purchased designs. By 2013, according to CSM’s forecast, the company will increase design purchasing to 77% for engines and 68% for transmissions. This practice allows access to innovative technologies from suppliers, which is vital for product differentiation and maintaining a competitive edge.

Products from Chrysler’s powertrain strategy include the new line of four-cylinder engines developed in a joint venture with Hyundai and Mitsubishi, the high-tech Phoenix V6 coming in 2010 as a replacement to the current lineup of V6s, and the Two-Mode hybrid transmission co-developed with General Motors and BMW.

A recent AutoWeek article delves further into what to expect from Chrysler as far as product lineup. By the time Cerberus Capital Management’s $7.45 billion purchase of Chrysler finalizes in the third quarter of this year, the 2008 Dodge Challenger will be less than a year from introduction. The article also reports that “well-received Chrysler concepts from the past two years should be in line for the production green light.” 

Chrysler expects to continue to invest in future products as planned, and the new owners of the car company intend to follow Chrysler CEO Tom LaSorda’s lead while investing even more into future products. The company’s future vehicle-production plan includes 20 new vehicles and 13 major facelifts for its current lineup by the end of 2009, despite reducing the company’s platforms from 12 to seven. More specifically, Chrysler plans to bring out its fifth-generation Chrysler minivan later this year, the Chrysler Sebring-/Dodge Avenger-based crossovers and the next-generation Ram pickup.

Cut from the portfolio will be the Dodge Durango and Chrysler Aspen once the plant that produces the slow-selling big SUVs is shut down in late 2009. The company has partnered up with China’s Chery Automobiles to bring out a production version of the Dodge Hornet mini-car (middle picture below). Chery will likely join forces with Chrysler to bring out the production version of the Dodge Demon roadster as well (bottom picture below). Chrysler is also considering production of its well-received Chrysler Imperial concept (top picture below), which the company says could spark further interest in the Chrysler brand.
 


Sources: CSM Worldwide. (May 15, 2007). “CSM Powertrain Analysis: Chrysle’s Powertrain Lineup Will Remain Strong Through Partnerships.” CSM Worldwide press release courtesy of PR Newswire; Gritzinger, Bob. (May 15, 2007). Imperial Dreams: Chrysler Sale Could Bode Well for Future Product. AutoWeek. Retrieved May 18, 2007 from www.autoweek.com.

SEMA members cited rising operating costs as the number-one obstacle facing their businesses, according to a SEMA research. Part of these operating costs include money spent on energy, and a recent study showed that businesses in general are faced with similar challenges imposed by rising energy costs. Results from a survey of North American business leaders indicate they expect energy prices to continue to rise, and plan to invest in energy efficiency measures to help fight rising costs, according to a recent Johnson Controls press release.

The Johnson Controls Energy Efficiency Indicator research commissioned by the company identified individuals from a wide range of facilities and locations who were decision-makers for energy-management issues within organizations. They asked how these managers were responding to rising energy costs, defined as electricity and natural-gas costs. Members from the International Facility Management Association were included as survey respondents. 

Just over half (52%) of the executives surveyed say that costs savings are either entirely or somewhat the driver for their decision to invest in energy-efficiency measures. Thirty-five percent say cost savings and environmental responsibility are equal motivators, while only 13% cite environmental concern as the greater motivator.

The executives appear to have reached a consensus that energy costs will continue to rise in the near future. Seventy-nine percent say they believe that electricity and natural-gas prices will increase significantly during the next 12 months, with an average price hike of 13.25% expected.

Consistent with the rising energy cost forecast, 62% say their companies are paying more attention to energy efficiency today than five years ago. As a result, they are acting on it. Almost 57% expect to make energy-efficiency improvements using their capital budgets in the next 12 months, spending an average of 8% of those budgets. In addition, 64% anticipate using their operating budgets, allocating 6% to energy-efficiency improvements.

Despite the pain of rising energy costs, executives are generally limiting their investments to more conservative energy-management solutions. Of respondents who have already made energy-efficiency investments:

• 70% educated staff and other facility users on how to be more efficient
• 67% switched to energy efficient lighting
• 60% adjusted HVAC controls
• 46% installed lighting sensors

Commercial buildings consume about 40% of natural gas and 60% of the electricity generated in the United States. So it’s not surprising that three-quarters of executives with companies that are building or planning to build new facilities, or are launching retrofits in the next year, say that energy efficiency will be a priority in the design of those projects.

When it comes to energy-supply-related matters, 36% have negotiated energy contracts with suppliers. Only 14% are putting energy-price hedging strategies in place. In addition, 11% currently have a stated carbon-reduction goal.

“This survey provides a valuable snapshot of how organizations are reacting to rising energy prices, and I think we’re going to see even more attention paid to this in the future,” said C. David Myers, president of the Johnson Controls Building Efficiency business. “There’s a growing realization of the role commercial and industrial facilities play in energy consumption, and the role they can play in making the economy more energy efficient.”

Whatever the motivation for making energy-efficiency investments, companies have by and large not relaxed their payback requirements for such measures (i.e. time for return on investment). About two thirds of companies (64%) have a maximum payback period of between two and five years. Overall, only 18% of those surveyed say their companies would allow a longer payback period today than five years ago. About 45% say the required payback period has not changed compared with five years ago.

Executives responsible for larger facilities (500,000 square feet or more) are an exception, according to Johnson Controls. They spend a bigger part of their budgets on energy, are planning to invest more of their budgets on energy-efficiency measures and will tolerate a longer payback period. A summary of the survey findings are presented below.



Source: Johnson Controls (May 17, 2007). “New Research Shows Businesses Investing in Energy Efficiency Measures to Combat Rising Energy Costs.” Johnson Controls press release courtesy of PR Newswire.

Rising gasoline prices have some owners of large and midsize trucks trading to smaller vehicles, according to J.D. Power and Associates, which uses real-time retail transaction data from its Power Information Network (PIN) to gather figures. In a recent press release, it said gasoline prices have surged more than $.20 in recent weeks to a record nationwide average of $3.10 per gallon, surpassing the previous record of $3.07 per gallon set in September 2005, according to the U.S. Energy Information Administration (EIA). As gas prices rise, owner loyalty in the large pickup and midsize and large utility-vehicle segments drops, according to PIN data gathered between February and April 2007. Owner loyalty is measured by the percentage of owners in any given segment who trade for another vehicle in the same segment.

“We’re seeing a broad, long-term—but gradual—movement to smaller vehicles,” says Tom Libby, senior director of industry analysis at PIN. “For example, during periods of high gas prices over the past two years, we’ve seen movement from larger to smaller SUVs. However, the total SUV pie remains largely intact.”
 


Not every new-vehicle segment has been affected by rising gas prices. For example, PIN findings show that owner loyalty for large and midsize cars, small crossovers and small SUVs has remained relatively unchanged in recent months. Libby notes that all of these trends are consistent with the patterns observed in spring 2006 when gas prices also rose.

Increased demand for smaller vehicles, coupled with higher gas prices, has also given four-cylinder engines a boost in powertrain market share. Four-cylinder engines, as a percentage of total retail sales, has increased from 27.5% in April 2004 to 35.7% in April 2007. While vehicles powered by four-cylinder engines are receiving a lift from rising gas prices, so are new vehicles powered by hybrid-electric engines. Hybrid vehicle sales have shown a strong correlation to gas prices. For more than two years, hybrid sales have increased as gas prices have risen and have decreased as gas prices have fallen. 

 


Additionally, PIN data shows that the retail turn rates—the amount of time a new vehicle spends on a dealership lot before being sold—decreased for both new and used small cars as the price of gas increased. In particular, these retail turn rates suggest that certain parts of the used-vehicle market, such as small cars, compact basic cars and small luxury crossovers, benefit when fuel prices rise. PIN and J.D. Power and Associates data suggest that the small-car market—both new and used—will continue to strengthen as fuel prices escalate.

“The recent strength of the small-vehicle segments—pricing, styling and an increasing number of new models—is receiving an additional boost from high gas prices,” said Bob Schnorbus, chief economist at J.D. Power and Associates. “We’re expecting the small-vehicle segments to continue to grow, regardless of gas prices, but higher gas prices certainly will help these segments relative to others.”

Source: J.D. Power and Associates. (May 16, 2007). “Power Information Network Reports: Rising Gas Prices Begin to Sway New-Vehicle Owners Toward Smaller Versions of Trucks and Utility Vehicles.” J.D. Power and Associates press release courtesy of PR Newswire.

Despite pumped-up production schedules in recent weeks, North American June output will trail last year’s pace by 8.3%, according to a recent WardsAuto.com article. Ward’s Auto forecasts manufacturers will assemble 1,394,600 vehicles next month based on 21 production days, somewhat under the industry’s planned 1,403,000 units. Output in like-2006 totaled 1,521,101 units, with one additional production day.

However, boosted by healthier production rates than seen in the year’s first three months, Ward’s Auto is forecasting second-quarter North American output to surpass first quarter by more than 7.0%, based on a daily build rate, with volume rising from 3,937,354 units to 4,177,072.

While Ford Motor Co.’s Wixom, Michigan, plant will close this month, output of its re-badged Taurus sedan and Taurus X CUV, which are replacing the Ford Five Hundred and Freestyle, will more than offset the lost production. General Motors Corp. is ramping up production of the new 2008 Saturn Vue at its Ramos Arizpe, Mexico, plant and Honda of America Manufacturing Inc. has added more Civic sedans in Canada. These additional builds, along with a bump up in inventories as many automakers prepare for model-year changeovers this summer, will contribute to a stronger second-quarter slate.

Still, compared with prior-year’s production that yielded 4,274,339 units, second-quarter 2007 output will trail the same period in 2006 by 2.3%. Detroit’s Big Three will build fewer vehicles in June than the prior year. Ford output will drop 17.9% to 264,802 units, Chrysler Group’s production will decline 15.1% to 239,190 and General Motors Corp.’s output will fall 14.6% to 391,711.

In keeping with rising sales trends among foreign-based manufacturers, Toyota Motor Manufacturing North America Inc., Nissan North America Inc. and Honda all are forecast to step up production in June. Nissan, now assembling the Versa subcompact in Mexico, is forecasted to increase North American output 23.6% in June over prior-year. Toyota will outpace last year’s 7.4% and Honda will increase its builds 2.9%. Other foreign-based automakers will see a combined 5.0% gain in June.

Capacity utilization also will drop in the month, with North American manufacturers only using a combined 84.1% capacity, compared with 87.5% in like-2006. The largest decline will be in Canada, from last year’s 91.3% to 80.8%. Among the automakers, Chrysler’s capacity usage will see the biggest drop in June, from last year’s 91.6% to 77.3%. The cutback is a reflection of the automaker’s continuing attempt to better align production with demand in order to reduce inventories and return to profitability.

Ward’s Auto is forecasting production in the year’s first half to finish 5.2% behind like-2006, to 8,114,477 total assemblies from prior-year’s 8,561,519.

Source: Elnick, Diane. (May 18, 2007). “June North American Production to Fall Below Last Year’s.” WardsAuto.com. Retrieved May 18, 2007 from www.WardsAuto.com.

California SEMA members  converged on the state capitol in Sacramento to help educate state lawmakers on the importance of the $36.7 billion automotive specialty-equipment industry to the state economy and the impact of government initiatives on the industry's continued viability. The association's first-ever state legislative rally on May 23rd featured SEMA members and California state lawmakers meeting face-to-face on significant state issues, including the governor's proposed universal health-care plan, emissions standards, vehicle scrappage, titling and registration and off-road land access.

"SEMA has been engaged over the years with the California Legislature on a series of industry-specific issues and a range of business concerns impacting the health of the state's specialty-equipment industry," said Steve McDonald, SEMA's vice president of government affairs.  "Our successes in Sacramento would not have been possible without the relationships we have developed with California legislators over the years. By including California SEMA members in these efforts, the Sacramento Legislative Rally helped further increase awareness of our industry by state legislators and signal SEMA's intention to increase its contribution to the debate on significant state issues."    

The SEMA Sacramento Legislative Rally agenda included a breakfast briefing by SEMA government affairs personnel, meetings with lawmakers, regulators and the governor's key staff, in addition to an evening reception. SEMA members were briefed on critical issues by, among others, Governor Schwarzenegger's Deputy Chief of Staff Cynthia Bryant, State Small Business Advocate Marty Keller, Assembly Transportation Committee Chairman Pedro Nava, Assembly Minority Floor Leader Mike Villines, Labor Commissioner Bob Jones and Occupational Safety and Health Standards Board Officer Keith Umemoto.

During the Rally, State Senators Ron Calderon and Dick Ackerman and State Assembly Members Martin Garrick and Nicole Parra joined the State Automotive Enthusiast Leadership Caucus. Supported by the SEMA Government Affairs office, the caucus is a bipartisan group of state lawmakers whose common thread is a love and appreciation for automobiles. Working in state capitals around the country, caucus members have sought to preserve and protect the automotive hobby by seeking the amendment of existing motor-vehicle statutes and creating new programs to safeguard and expand the hobby. These legislators join Senators Dennis Hollingsworth, Tom McClintock, Gloria Negrete McLeod and Assembly Members Mike Duvall, Bonnie Garcia, Bob Huff, Kevin Jeffries, Doug La Malfa, Alberto Torrico and Michael Villines as California members of the caucus. For a full caucus listing in all 50 states, please click here.

SEMA Member Comments:

Joel Ayres, Leer:  "Fantastic job by the SEMA staff. I feel it was a good start to building relationships with the California legislators. The speakers were interesting and informative. By Wednesday night, many additional people in the Sacramento Capitol knew about SEMA and what our industry was doing for California. I feel the next event in Sacramento will be even bigger."

Ken Yoder, RCD Suspension:  "This was a great experience. I was able to talk to the assembly member and senator for the area that my facility is located in. We discussed several issues including worker compensation costs, the health-care plan that the governor has proposed and land-use issues. I was very impressed with the quality and enthusiasm of the lawmakers and regulators that spoke to us at the briefings. Every SEMA member should be involved in this type of an event."

Doug Evans, Primedia:  "I would like to congratulate the SEMA staff on a job well done with the Sacramento Rally. I found the meetings and presentations informative and extremely important. I would urge my fellow SEMA members to get involved in this event in the future as well as the Washington, D.C. rally. California in particular is looking at many pieces of legislation that could be disastrous to our industry. We must be united in our efforts to ensure that any legislation passed recognizes the importance of our livelihood and the thousands of jobs that could be adversely affected by poorly crafted bills that do not have our input."

Debbie Lewis, "Hotrod & Restoration":  "The Sacramento Legislative Rally was a great experience. It was well-planned and well-executed by our Washington, D.C., SEMA office. SEMA provided materials prior to the rally, making it easier for participants to be prepared and, in my case have a clearer understanding of our purpose and mission, and how the process works. I met with Senator Dick Ackerman and we signed him up to be part of the State Automotive Enthusiast Leadership Caucus. It was very encouraging to learn firsthand that all we had to do was ask. I look forward to participating in future rallies and carrying the flag to encourage others to do the same."

Ernie Silvers, Egge Machine Co. Inc.:  "All I can say is WOW! The Sacramento Rally had all the power and magic of its big brother, SEMA's DC Rally. Much like a well-organized surgical strike team, SEMA staff was flawless in its ability to arrange and attend multiple meetings with SEMA members and their respective lawmakers. My local assemblyman and senator were both eager to learn more about issues that concern my company, the restoration industry and SEMA. It was productive and time very well spent!"

SEMA is proud to announce Hot Wheels® as a title sponsor for the SEMA Installation Banquet & Gala Fundraiser supported by DUB Magazine and presented by Advanstar.

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. Hot Wheels is donating $25,000 worth of toys for children at both organizations as part of this fundraising effort.

“Hot Wheels has been involved with SEMA for a number of years, and as we approach our 40th Anniversary in 2008, we’re thrilled to help them in their effort to support two great causes,” said Geoff Walker, Vice President of Wheels Marketing, Mattel Brands.  “For 40 years, our cars have always showcased the most extreme examples of vehicle design and customization, and this partnership with SEMA proved to be a perfect fit for us.”

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.

American drivers continue to embrace the notion of customization and personalization, having purchased a record $36.72 billion worth of specialty automotive products in 2006. The number represents a 7% increase over 2005, when sales reached $34.28 billion.

"Today's consumer wants something unique and different," said Jim Spoonhower, vice president of market research for SEMA. "They're buying vehicles that are dependable and reliable, but then they're personalizing those vehicles so that they look distinctive, perform differently, are more comfortable, convenient, safe or just more fun."

SEMA has been actively monitoring the specialty automotive market since 1986. The association reports that the automotive specialty-equipment industry has seen sales grow an average of 7.4% per year during the last 10 years. Meanwhile, the growth of the total automotive aftermarket (which includes repair parts) and the U.S. economy has been much slower (4.4% and 3.2%, respectively).

"What's really exciting is that we're seeing more and more mainstream consumers discovering the benefits of vehicle personalization," said Spoonhower. A 2007 survey found that 25% of American drivers plan to purchase automotive specialty-equipment industry products in the next 90 days.

SEMA also notes that automakers are recognizing the importance of customization. In fact, many automakers collaborate with SEMA on programs that allow members to develop products better, faster and more efficiently than ever before. This trend is resulting in more products and giving consumers greater options.

"The automotive specialty-equipment industry is made up of innovators," Spoonhower continued. "Because many enter the industry as enthusiasts who know and love the hobby, they have a deep understanding of what the end-users will want and need. "As a result, products are resonating with consumers more than ever before."

Industry manufacturers continue to develop an impressive number of new products year after year. The SEMA Show, referred to as the premier automotive accessories trade show in the world, consistently debuts more than 1,000 new products each year. Open exclusively to industry professionals, the annual event will be held October 30–November 2, 2007, in Las Vegas. Details about the Show are available at www.semashow.com.

Comprehensive details on the size of the automotive specialty-equipment market and other industry trends can be found in the June 2007 issue of SEMA News.

Automotive Specialty-Equipment Growth Trend

Year    Retail Sales    Year-Over-Year Change    GDP Change
1996    $17.65 billion                6.0%                      3.7%
1997    $19.33 billion                8.4%                      4.5%
1998    $21.20 billion                9.1%                      4.2%
1999    $23.24 billion                9.4%                      4.5%
2000    $24.86 billion                7.0%                      3.7%
2001    $25.90 billion                3.8%                      0.8%
2002    $26.84 billion                3.1%                      1.6%
2003    $28.91 billion                7.7%                      2.5%
2004    $31.45 billion                8.8%                      3.9%
2005    $34.28 billion                9.2%                      3.2%
2006    $36.72 billion                7.1%                      3.4%

Source: Specialty Equipment Market Association (SEMA)

SEMA Show exhibitors that would like to build a Nissan-based project vehicle are reminded that the deadline to submit project-vehicle proposals to Nissan is Thursday, June 15. Proposals based on all current Nissan models will be accepted. Nissan's 2007 SEMA Show strategy will focus primarily on the 2007 Sentra and the 2008 Altima Coupe.

Complete program information and proposal requirements are available by clicking here. For more information on project-vehicle programs, contact Bill Wolf at billw@sema.org or visit www.sema.org/oem.

SEMA's eight councils and two committees are set to tee off on the greens of the Strawberry Farms Golf Club as part of Council Cup - Cash for Kids, a friendly game of golf to benefit children's charities. All groups will compete in teams of four. The teams are:

Automotive Restoration Market Organization (ARMO)

Ernie Silvers, Egge Machine Co. Inc.
Jim Barber, Classic Automotive Restoration
Dave Mihalko Jr., Restoration Specialties
Alex Tainsh, SoffSeal Inc.

Light-Truck Accessory Alliance (TORA)

Anne Johnson, California Truck Works
Gary Long
Dave Madison
Corky Volp

Professional Restylers Organization (PRO)

Larry Riggle, Webasto Product North America
Kerry Howton, Arizona Sun Tops
Bob West, Westin Automotive Products
John LaBare, Westin Automotive Products

Young Executives Network (YEN)

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

American Technologies and Cap World Team

Ron DiVincenzo
Kelly Kneifl
Charlie Holden
Todd Yeoman

If you want to tee up to help Childhelp and Victory Junction Gang Camp's charitable activities, you can form your own team. If you've already formed a team, please send us the details. For information on the SEMA Charity Golf Tournament, contact Arlene Wood at arlenew@sema.org or 909/396-0289 ext. 110. 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.

The Council Cup is just one event representing SEMA's charitable efforts to benefit two worthwhile organizations that have become favorites of SEMA-member companies—Childhelp and the Victory Junction Gang Camp.

This year, the association included charitable fundraising activities in conjunction with its traditional SEMA Installation Banquet to form the SEMA Installation Banquet & Gala Fundraiser. Proceeds from the gala event will be contributed to two organizations. For information on the event and activities, visit www.sema.org/gala.

Filler for eNews

What constituted a light truck 15 or 20 years ago might qualify as an ultra-light truck today. Little haulers like the '80–'86 Nissan 720 (and the Hardbody successor) seem positively featherweight compared to the Rams and Silverados of today. As the definition of light truck continues to shift, we wanted to look at the specialty parts market for some of the quintessentially American “light” trucks, the ones that gave rise to the name and category.

Maybe the embodiment of light truck, the Chevy S10 still commands an active parts market. Between April 26–May 25, S10 enthusiasts spent $330,000 on largely secondhand specialty parts, chief among them exterior goods, lighting and lamps and interior goods, according to data from Terapeak, a developer of market-focused research software that monitors online sales and auctions.

Exterior parts comprised $78,000 of total sales, the most popular products including mirrors, grilles and bumpers. Taillights, headlights, consoles and switches/controls rounded out some of the other most sought-after items.

Despite Chevy setting the pace in the light-truck category, the Ford Ranger outran it, pulling in $387,600 worth of accessory sales during the same period. Ranger enthusiasts covet the same category of goods, starting with exterior goods ($81,000 worth of grilles, mirrors, tailgates/liftgates, among others), lighting and lamps ($57,000), and $25,000 worth of interior products.

Not to be left out, the Dodge Dakota slots into second place, with its enthusiast base buying up $359,400 worth of product. Not surprisingly, exterior goods topped the list and accounted for $106,400 of total sales (again—grilles, bumpers and mirrors among the most purchased). Lighting and lamp accessories and air intake/fuel-delivery goods rounded out the top three most popular purchase categories.

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. 

Filler for eNews