SEMA News—January 2021

INDUSTRY NEWS

By Douglas McColloch

SEMA Grant
The 2020 MDCP Award will provide SEMA with additional opportunities to offer sponsored overseas trade missions to promising markets such as the United Arab Emirates, Australia and China.

SEMA Receives Grant to Help Manufacturers Boost Export Sales

SEMA was presented with a 2020 Market Development Cooperator Program (MDCP) Award, which will allow SEMA to expand its programs to assist its member manufacturers in exporting products to growing international markets.

The award marks the third time SEMA has received an MDCP grant. Presented by the Department of Commerce’s International Trade Administration, the MDCP Award includes financial and technical assistance to help U.S. companies compete in international markets. SEMA uses the award to introduce new initiatives that address trade barriers hindering American specialty-equipment companies’ ability to sell overseas.

“International sales provide SEMA members and the automotive specialty-equipment market with valuable opportunities to grow and expand their sales,” said Linda Spencer, SEMA senior director of international and government affairs. “Having the financial and technical support of the International Trade Administration will significantly aid in providing the industry with the programs and services that will allow it to be successful. We’re excited to be able to utilize the grant and introduce meaningful new programs.”

For more information about MDCP, visit www.trade.gov/mdcp. For more information about SEMA’s international programs, visit www.sema.org/international.

Industry Indicators
The auto sector has recovered 74% of the jobs lost during the months of April and May, far outpacing the U.S. manufacturing sector, according to the latest “SEMA Industry Indicators” report.
SEMA Industry Indicators: Auto Sector Sees Strong Growth as U.S. Economy Continues Its Recovery

The U.S. economy continues to recover what was lost in the early months of the pandemic. Much of the pent-up demand from April and May has likely been satisfied, and now the economy settles into a period of smaller month-over-month growth as it works to regain what was lost in those early months.

The auto sector, one of the hardest hit early in the pandemic, has experienced one of the better recoveries so far. It has recovered 74% of the jobs lost during April and May, compared to just 47% for overall American manufacturing. New-vehicle sales are on track to reach just over 14 million units in 2020—18% below 2019 levels but 60% higher than in April.

Consumer confidence is down but remains higher than the lows seen during the recession from 2007–2009. The end of stimulus and pandemic unemployment payments are currently headwinds against that confidence, but consumers will gain more assurance and increase their spending as the virus situation improves.

Want more information on the trends affecting the specialty-equipment industry? Download the September 2020 “SEMA Industry Indicators” report—available for free at www.sema.org/research.

Hummer
Said to be capable of 1,000 hp and 0–60-mph acceleration in 3 seconds, the all-new GMC Hummer EV will begin production in late 2021 at GMC’s Lordstown, Ohio, assembly plant.
GM Announces Plan for ’22 Hummer EV Launch

A number of exciting new high-performance vehicles aimed at the enthusiast market are in the pipeline, including GM’s innovative electric GMC Hummer EV, recently scheduled for production as a ’22 model.

Enabled by a GM-designed three-motor e4WD system and advanced selectable driving modes, the ’22 GMC Hummer EV will be the first full-electric vehicle in GMC’s portfolio and is powered by GM’s new Ultium battery system. The battery cells will be produced as part of a joint venture with LG Chem at a new facility in Lordstown, Ohio.

Initial production begins in late 2021 at GM’s Factory Zero Detroit-Hamtramck Assembly Center—a nearly 40-year-old facility repurposed and retooled with a $2.2-billion investment devoted to electric vehicle production. Future production vehicles out of the factory will offer zero emissions.

At launch, the Hummer EV will be offered exclusively in an Edition 1 model, featuring a full range of off-road-driving technologies that will include an Extreme Off-Road Package. The truck is said to be able to produce 1,000 hp and offer a 350-mi. cruising range.

CARB
The SEMA Garage includes a laboratory where members can have their products tested at an affordable cost. The lab capabilities cover all tests (except EVAP) that may be required by CARB for the purposes of obtaining an EO for either gasoline or diesel vehicles.
California Air Resources Board Issues Enforcement Advisory for Noncompliant Performance Aftermarket Parts

The California Air Resources Board (CARB) has issued an enforcement advisory to help the public understand how California law and regulations apply to the sale of emissions-related equipment that enhance highway and off-road vehicle performance. The document does not make any changes to the regulations or how California law is applied. Rather, it serves as a reminder of the law and how it is enforced by CARB. The advisory notes that:

  • CARB enforces against any manufacturer, wholesaler, distributor, dealer, installer, retailer and/or repair shop that offers for sale or sells an uncertified vehicle, an illegally modified vehicle, or an illegal part, or that installs an illegal part on an emissions-controlled vehicle operated on a public highway.
  • CARB has authority to enforce against individual vehicle owners who have violated the law by tampering with, modifying or installing illegal parts on public-highway vehicles.
  • Penalties may range up to $37,500 per violation.
  • CARB has provided detailed examples of industry practices that demonstrate compliance.

The law applies to emissions-related performance equipment that can be installed on any public-highway vehicle, which includes a car, truck, on- and off-highway motorcycle and other on- and off-road recreational vehicles.

For more information, visit www.semagarage.com.

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