Thu, 03/22/2012 - 09:33
  SEMA News February 2012
  Boost your branding efforts by participating in the 2012 SEMA News Product and Catalog Showcase featured in the June issue of SEMA News.

Generate buzz for your products and services by participating in the 2012 SEMA News Product and Catalog Showcase featured in the June issue of SEMA News.

The offer builds on the success of the 2011 Product & Catalog Showcase, and the association provides more boost to your branding efforts by keeping the participation price the same as last year.

The Product and Catalog Showcase remains one of the most cost-effective ways to advertise in the SEMA News magazine, helping members reach more customers specific to the specialty-equipment market.

Provide a four-color image of your new product or your catalog cover, along with about 75 words of text, and we'll build a 1/6-page ad for you. The cost is $250. Space is limited, so don't delay. View the online version of the 2011 SEMA News Product & Catalog Showcase, featured in the November 2011 issue of SEMA News.

To get started, contact Motor Media at 818-248-4449 or e-mail sales@motormediainc.com.

Thu, 03/22/2012 - 09:29

SEMA Member News—March/April 2012

SBN Gear Up Girls Event Greets Heart Wrenchers’ Club and More

member news, aftermarket jobs, auto careers jobs, auto industry jobs, automotive service and repair
The Heart Wrenchers began with just a few young women working toward dismantling the current gender stereotypes in the automotive industry, but it soon turned into a group of almost 20 active and enthusiastic club members.
Julia Johnson is a woman after my own heart and one of many trailblazers and difference makers in our industry. She always loved cars but was kind of intimidated by them, so she put her interest aside until she received a class schedule from Skyline College of San Bruno, California. Intrigued, she enrolled in the automotive aftermarket program there, received enthusiastic support from her teachers because of her passion for the industry and is now an instructor for the program herself. Her mission is to let women know that they’re equally as capable as men in the automotive industry and that a car’s inner workings aren’t as complicated as they seem.

“While a highly trained technician can make up to $100,000 a year, you don’t have to turn a wrench for a living,” Johnson said. “There are high-paying jobs in product design, engineering, marketing, management and more that move way beyond the shop floor.”

Johnson was instrumental in creating an all-women’s club called the Heart Wrenchers at her college. Beginning with just a few young women working toward dismantling the current gender stereotypes in the automotive industry, it soon turned into a group of almost 20 active and enthusiastic club members. Not only do they work on projects to benefit their own club, but they also implement initiatives giving back to their community. One program provides automotive services that help low-income families make sure that they have a dependable car. Another organizes area workshops helping Girl Scouts to earn their automotive badges. A third provides support of a scholarship fund for the women in the Skyline Automotive program.

“The women who started the club are intelligent, young, motivated, strong-willed and overcoming individual hardships to succeed,” said Heart Wrenchers member Maureen Moscoso. “Our goal is to give back to the community and be role models to other young women who may be afraid of attempting careers in the automotive industry.”

Johnson attended her first SEMA Show as a recipient of the Car Care Council Women’s Board Scholarship a few years ago and was able to bring seven of the Heart Wrenchers with her to the 2011 Show in November. They attended the SEMA Businesswomen’s Network’s (SBN’s) first-ever Gear Up Girls networking event.

“The SEMA Show was an amazing experience because we got the chance to see the inside of the automotive industry,” said Heart Wrenchers President Audrey Ingalls. “There were a lot of fun things to see and do, but the SBN’s Gear Up Girl networking event and the student internship program made it educational and beneficial for us. We got to meet powerful women in the industry who shared their experiences and advice, and we got to share with them and the other students there what we are all about. We look forward to building a strong relationship with the SBN and going to future SEMA Shows.”

As a 26-year industry veteran, I was awed by the Gear Up Girls event. In addition to the Heart Wrenchers, there were 21 additional young women from 12 different high schools and colleges in attendance. It was awesome to meet these ladies who are part of the future of our industry. Once we heard from them, all of us seasoned veterans cheered them on, gave them advice and exchanged cards with a promise that we would be available at any time for any form of mentorship they needed.

Statistics prove that women have nearly a 50% influence on automobile purchase decisions and greatly impact the purchase decisions of aftermarket products. It is critical that we always have a voice and a leadership role in guiding the direction of SEMA. So gear up, girls! Get ready for a great ride and a wonderful place to call home!

Thu, 03/22/2012 - 09:29

SEMA Member News—March/April 2012

SBN Gear Up Girls Event Greets Heart Wrenchers’ Club and More

member news, aftermarket jobs, auto careers jobs, auto industry jobs, automotive service and repair
The Heart Wrenchers began with just a few young women working toward dismantling the current gender stereotypes in the automotive industry, but it soon turned into a group of almost 20 active and enthusiastic club members.
Julia Johnson is a woman after my own heart and one of many trailblazers and difference makers in our industry. She always loved cars but was kind of intimidated by them, so she put her interest aside until she received a class schedule from Skyline College of San Bruno, California. Intrigued, she enrolled in the automotive aftermarket program there, received enthusiastic support from her teachers because of her passion for the industry and is now an instructor for the program herself. Her mission is to let women know that they’re equally as capable as men in the automotive industry and that a car’s inner workings aren’t as complicated as they seem.

“While a highly trained technician can make up to $100,000 a year, you don’t have to turn a wrench for a living,” Johnson said. “There are high-paying jobs in product design, engineering, marketing, management and more that move way beyond the shop floor.”

Johnson was instrumental in creating an all-women’s club called the Heart Wrenchers at her college. Beginning with just a few young women working toward dismantling the current gender stereotypes in the automotive industry, it soon turned into a group of almost 20 active and enthusiastic club members. Not only do they work on projects to benefit their own club, but they also implement initiatives giving back to their community. One program provides automotive services that help low-income families make sure that they have a dependable car. Another organizes area workshops helping Girl Scouts to earn their automotive badges. A third provides support of a scholarship fund for the women in the Skyline Automotive program.

“The women who started the club are intelligent, young, motivated, strong-willed and overcoming individual hardships to succeed,” said Heart Wrenchers member Maureen Moscoso. “Our goal is to give back to the community and be role models to other young women who may be afraid of attempting careers in the automotive industry.”

Johnson attended her first SEMA Show as a recipient of the Car Care Council Women’s Board Scholarship a few years ago and was able to bring seven of the Heart Wrenchers with her to the 2011 Show in November. They attended the SEMA Businesswomen’s Network’s (SBN’s) first-ever Gear Up Girls networking event.

“The SEMA Show was an amazing experience because we got the chance to see the inside of the automotive industry,” said Heart Wrenchers President Audrey Ingalls. “There were a lot of fun things to see and do, but the SBN’s Gear Up Girl networking event and the student internship program made it educational and beneficial for us. We got to meet powerful women in the industry who shared their experiences and advice, and we got to share with them and the other students there what we are all about. We look forward to building a strong relationship with the SBN and going to future SEMA Shows.”

As a 26-year industry veteran, I was awed by the Gear Up Girls event. In addition to the Heart Wrenchers, there were 21 additional young women from 12 different high schools and colleges in attendance. It was awesome to meet these ladies who are part of the future of our industry. Once we heard from them, all of us seasoned veterans cheered them on, gave them advice and exchanged cards with a promise that we would be available at any time for any form of mentorship they needed.

Statistics prove that women have nearly a 50% influence on automobile purchase decisions and greatly impact the purchase decisions of aftermarket products. It is critical that we always have a voice and a leadership role in guiding the direction of SEMA. So gear up, girls! Get ready for a great ride and a wonderful place to call home!

Thu, 03/22/2012 - 08:54
Thousands of photos from the 2011 SEMA Show are available for view and download at www.semaphotos.com. There are several categories of photos to choose from, including Show products, project vehicles, celebrities and more.

A new category of display and project vehicles featured at the Show are included each week in SEMA eNews. This week's selection includes Chargers, Challengers, Magnums, Vipers and more from Dodge.

To see all of the photos available, visit www.semaphotos.com.
Thu, 03/22/2012 - 08:39

future vehicles, spy photos, car spy shots, Volkswagen XL1

No concept here—These photos delivered by the team at Brenda Priddy & Co. show a pre-production Volkswagen XL1 ripping through ice conducting cold weather testing.

In January, Volkswagen confirmed that it would build a limited number of the long-awaited 1L car—likely to be named the XL1—and here are some first spy shots that prove VW is serious about the timeline. The XL1 was the third iteration of the Volkswagen 1L car, first shown in concept guise at the 2011 Qatar Motor Show. The two older concept cars had been shown to the public in 2002 and 2009 (then called L1).

Priddy says that these pictures clearly show the production version and the concept that had been previously shown. According to VW, when the XL1 hits the road in 2013 it will be capable of achieving a combined fuel consumption of approximately 1 liter (.26 gallons) per 62 miles—or 235 mpg!

Like the L1, the XL1 uses a two-cylinder turbo-diesel. Displacing 800 cc, it is rated at 47 hp and 121 Nm of torque, and transmits power to the rear wheels through a seven-speed DSG transmission. The electric motor pitches in with 27 hp and 100 Nm of torque, and can work in parallel with the diesel or drive the car independent of it.

The concept-car XL1 had a curb weight of 795 kg and a drag coefficient of 0.186. Just 23.2% of the car (184 kg) is made out of either steel or iron; the drivetrain weighs 227 kg.

The XL1's length and width are similar to the Volkswagen Polo, with a length of 3,970 mm and width of 1,682 mm. However, the car is much lower with a height of only 1,184 mm, and has a coupe-like roofline, reducing interior volume. The design incorporates gullwing doors, with the interior seating layout using a staggered side-by-side arrangement similar to a Smart Fortwo, rather than the previous versions' tandem seating. Performance credentials include a governed top speed of 74.6 mph, with 0 to 50 mph in 32 seconds.

future vehicles, spy photos, car spy shots, Volkswagen XL1

Photo: Brenda Priddy & Co.

Thu, 03/22/2012 - 08:39

future vehicles, spy photos, car spy shots, Volkswagen XL1

No concept here—These photos delivered by the team at Brenda Priddy & Co. show a pre-production Volkswagen XL1 ripping through ice conducting cold weather testing.

In January, Volkswagen confirmed that it would build a limited number of the long-awaited 1L car—likely to be named the XL1—and here are some first spy shots that prove VW is serious about the timeline. The XL1 was the third iteration of the Volkswagen 1L car, first shown in concept guise at the 2011 Qatar Motor Show. The two older concept cars had been shown to the public in 2002 and 2009 (then called L1).

Priddy says that these pictures clearly show the production version and the concept that had been previously shown. According to VW, when the XL1 hits the road in 2013 it will be capable of achieving a combined fuel consumption of approximately 1 liter (.26 gallons) per 62 miles—or 235 mpg!

Like the L1, the XL1 uses a two-cylinder turbo-diesel. Displacing 800 cc, it is rated at 47 hp and 121 Nm of torque, and transmits power to the rear wheels through a seven-speed DSG transmission. The electric motor pitches in with 27 hp and 100 Nm of torque, and can work in parallel with the diesel or drive the car independent of it.

The concept-car XL1 had a curb weight of 795 kg and a drag coefficient of 0.186. Just 23.2% of the car (184 kg) is made out of either steel or iron; the drivetrain weighs 227 kg.

The XL1's length and width are similar to the Volkswagen Polo, with a length of 3,970 mm and width of 1,682 mm. However, the car is much lower with a height of only 1,184 mm, and has a coupe-like roofline, reducing interior volume. The design incorporates gullwing doors, with the interior seating layout using a staggered side-by-side arrangement similar to a Smart Fortwo, rather than the previous versions' tandem seating. Performance credentials include a governed top speed of 74.6 mph, with 0 to 50 mph in 32 seconds.

future vehicles, spy photos, car spy shots, Volkswagen XL1

Photo: Brenda Priddy & Co.

Thu, 03/15/2012 - 16:29

future vehicles, car spy photos, spy photos

While these photos submitted by Brenda Priddy & Co. feature the Euro-spec three-door Fiesta, the team reports that the entire lineup will soon undergo a freshening.

Priddy anticipates the ’13 models to be updated in front, including new LED headlamps. The new Fiesta will also carry styling cues pulled from the Fiesta-based EcoSport Crossover.

The shooters do not expect any changes in the back; however, engine options may increase when the vehicle debuts.  

future vehicles, spy photos, car spy shots

Photos: Brenda Priddy & Co.

Thu, 03/15/2012 - 16:29

future vehicles, car spy photos, spy photos

While these photos submitted by Brenda Priddy & Co. feature the Euro-spec three-door Fiesta, the team reports that the entire lineup will soon undergo a freshening.

Priddy anticipates the ’13 models to be updated in front, including new LED headlamps. The new Fiesta will also carry styling cues pulled from the Fiesta-based EcoSport Crossover.

The shooters do not expect any changes in the back; however, engine options may increase when the vehicle debuts.  

future vehicles, spy photos, car spy shots

Photos: Brenda Priddy & Co.

Thu, 03/15/2012 - 16:22

SEMA News—March 2012

EVENTS
By Linda Spencer

Brazil

A Market on the Rise

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Brazilian trade and consumer shows are well attended and growing, and organizers are increasingly seeking to showcase customizing options.
   
Brazil has long been on a short list of automotive specialty-equipment markets that SEMA is tracking as having the potential to develop into one of the world’s most important. Brazil first came onto the association’s radar screen due its position as the largest market in South America as well as a citizenry known for an obsession with cars, trucks and motorsports.
SEMA executives traveled to Brazil first in 2005, and so it is time now to provide an update on a number of factors that they were exploring back then as well as market changes. In a two-article series, we will look at the factors most typically used by exporters in determining which markets to target. In this first article, we will address:

• Local interest in and passion for customizing
• Size of the population
• Vehicle sales and the number of vehicles on the road
• Disposable income, discretionary dollars and other economic factors
• Perception of U.S. products

In the follow-up article next month, we will look at:

• Laws regarding customization
• Tariff rates and costs associated with getting U.S.-manufactured products to Brazilian customers
• Distribution system

The Passion

As in the U.S., motorsports has a firm place in the hearts of Brazilian citizens, and its racers have achieved world-champion status. Brazil has produced three Formula One world champions, including Emerson Fittipaldi, Nelson Piquet and Ayrton Senna. The Brazilian Grand Prix has been on the Formula One calendar since 1972, with the São Paulo Interlagos venue on the fall schedule. Brazil is also home to Indianapolis 500 winners Fittipaldi, Hélio Castroneves and Gil de Ferran.

Televised events are increasingly popular, with “Stock Car Brasil” and “Fórmula Truck” being broadcasted nationally. Drag racing is also popular and exists throughout Brazil in many cities in the countryside of Sao Paulo such as Limeira, Artur Nogueira, Campinas and Piracicaba as well as in big cities such as Fortaleza, Recife, Rio De Janeiro, Belo Horizonte, Londrina, Santa Catarina and Vitoria.

“There are about 500 professional racers who invest a lot of money in their cars and travels to races,” said Edu Bernasconi, editorial director of Fullpower magazine. “Amateur races are also becoming very popular nationwide. Every state with a racetrack is organizing races to take the kids off the streets. In 2012, we’re helping some state federations to hold races at regional racetracks.”

The market for restoration, classic cars, musclecars and hot rods is also growing more popular. Discovery Channel’s “American Hot Rod” was well received in Brazil and, said Bernasconi, “Good painting for old cars and newly imported wheel brands have shown consumers that it’s possible to get a unique car. And this uniqueness is easier to get with an old car. Manufacturers of steering wheels, columns and pedals might do well coming into and supplying this segment of the market.”

Bernasconi said that restoration is currently popular and that cars from the past are cooler than ever. He added that musclecars as well as old European vehicles are all the rage, and sales of current-model musclecars have grown so popular that Chevrolet has finally launched the Camaro officially in Brazil. Chevrolet cars had previously been sold by independent dealers.

This car-passionate country publishes numerous tuner, hot rod, off-road, racing and car-collector publications. Below is a sampling of these magazines, all of which were represented in recent years on the SEMA Show’s Global Media Awards panel. They include:

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Racing is popular in Brazil on many different levels, from Formula 1 on down to a local amateur level. Many of the vehicles available in Brazil are equivalent to North American models, and the “Made in America” mark is considered a sign of quality and innovative design.
   
Autoesporte
www.autoesporte.com.br

Automotivo
www.revistaautomotivo.com.br

Car Stereo
www.carstereo.com.br/carstereo

Car Stereo Professional
www.carstereo.com.br

Fullpower
www.revistafullpower.com.br

Hot Rods
www.revistahotrods.com.br/hotrods

Super Speed
www.revistasuperspeed.com.br/superspeed

USAC
www.usac.com.br

Brazilian trade and consumer shows are well attended, and the most well known is the consumer show X-treme Motorsports, a biennial event held in Sao Paulo that is now in its sixth edition and is reminiscent of the first SEMA Shows. Indeed, the show’s organizers are looking for the event to grow and increasingly showcase customizing options.

“Our main goal is to grow the show to 150 companies in the 2013 edition,” said Bernasconi, who is the founder of X-treme Motorsports.

Population

With a inhabitants totalling nearly 200 million, Brazil boasts the largest population in the southern hemisphere and is now ranked fifth in the world. In this country that is nearly the size of the U.S., the majority of the inhabitants live in the south-central area, which includes Sâo Paulo and Rio de Janeiro. Sâo Paulo is one of the largest cities in the world, with 20 million people living within the greater metropolitan area.

The Vehicle Market

With 3.4 million passenger vehicles sold in 2011, Brazil is now the fourth-biggest car market in the world. It overtook Germany in 2010, and many envision Brazil increasing this strong growth and overtaking Japan to claim the world’s third-largest market within three to five years. More and more Brazilians want the transportation freedom that comes with owning a vehicle as they experience rising prosperity. This extraordinary growth may continue, as sales reflect currently unmet demand and the ratio of people to vehicles increases from the current one vehicle for every seven people and closes the gap with the U.S., which has one vehicle for every two citizens. JD Powers predicts annual sales will double to six million in 2018.

Disposable Income

Consumers need disposable income to purchase specialty parts and grow the tuning market in Brazil. Fueled by low unemployment rates (currently a new historic low of 5.8%) and a fast-growing economy, all indications point to an improvement in the purchasing power of Brazilians. The number of people entering the middle class is surging, and continued progress is expected in the short term. Between 2003 and 2009, 35 million people became part of the middle class in Brazil, and 20 million more are expected to attain that distinction by 2014, further reducing the historic yawn between the nation’s rich and poor.

“What is happening in Brazil is very different from what is happening in other BRICs [Brazil, Russia, India and China] in the sense that what is booming in Brazil is the bottom of the income distribution,” said analyst Marcelo Cortes Neri, chief economist of Centro de Politicas Sociais at the Getulio Vargas Foundation. “Consumer demand for cars as well as all consumer items such electronics and luxuries is increasing at a fast clip.”

Perception of American-Made Products

The “Made in America” mark is considered a sign of quality and innovation among global consumers. Local enthusiasts are increasingly aware of and deliberately seek U.S.-branded products. TV shows such as TLC’s “Overhaulin’,” MTV’s “Pimp My Ride” and Universal Studio’s The Fast and the Furious films also played a great role in generating interest in American-style tuning. As brand awareness and education among consumers and the trade continues in both markets, U.S. brands are bound to benefit.

Several resources are available to the automotive specialty-equipment companies that are interested in the Brazilian market, including:

• The Brazilian-American Chamber of Commerce

• The U.S. Commercial Service in Brazil

• The Embassy of the United States in São Paulo

• ACEB (the Brazilian Business Trade Association)

• Trends of Doing Business in Brazil in 2011

Next Month: Part 2

For more information about SEMA’s international programs, contact Linda Spencer at lindas@sema.org or visit www.SEMA.org/international.

Thu, 03/15/2012 - 16:22

SEMA News—March 2012

EVENTS
By Linda Spencer

Brazil

A Market on the Rise

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Brazilian trade and consumer shows are well attended and growing, and organizers are increasingly seeking to showcase customizing options.
   
Brazil has long been on a short list of automotive specialty-equipment markets that SEMA is tracking as having the potential to develop into one of the world’s most important. Brazil first came onto the association’s radar screen due its position as the largest market in South America as well as a citizenry known for an obsession with cars, trucks and motorsports.
SEMA executives traveled to Brazil first in 2005, and so it is time now to provide an update on a number of factors that they were exploring back then as well as market changes. In a two-article series, we will look at the factors most typically used by exporters in determining which markets to target. In this first article, we will address:

• Local interest in and passion for customizing
• Size of the population
• Vehicle sales and the number of vehicles on the road
• Disposable income, discretionary dollars and other economic factors
• Perception of U.S. products

In the follow-up article next month, we will look at:

• Laws regarding customization
• Tariff rates and costs associated with getting U.S.-manufactured products to Brazilian customers
• Distribution system

The Passion

As in the U.S., motorsports has a firm place in the hearts of Brazilian citizens, and its racers have achieved world-champion status. Brazil has produced three Formula One world champions, including Emerson Fittipaldi, Nelson Piquet and Ayrton Senna. The Brazilian Grand Prix has been on the Formula One calendar since 1972, with the São Paulo Interlagos venue on the fall schedule. Brazil is also home to Indianapolis 500 winners Fittipaldi, Hélio Castroneves and Gil de Ferran.

Televised events are increasingly popular, with “Stock Car Brasil” and “Fórmula Truck” being broadcasted nationally. Drag racing is also popular and exists throughout Brazil in many cities in the countryside of Sao Paulo such as Limeira, Artur Nogueira, Campinas and Piracicaba as well as in big cities such as Fortaleza, Recife, Rio De Janeiro, Belo Horizonte, Londrina, Santa Catarina and Vitoria.

“There are about 500 professional racers who invest a lot of money in their cars and travels to races,” said Edu Bernasconi, editorial director of Fullpower magazine. “Amateur races are also becoming very popular nationwide. Every state with a racetrack is organizing races to take the kids off the streets. In 2012, we’re helping some state federations to hold races at regional racetracks.”

The market for restoration, classic cars, musclecars and hot rods is also growing more popular. Discovery Channel’s “American Hot Rod” was well received in Brazil and, said Bernasconi, “Good painting for old cars and newly imported wheel brands have shown consumers that it’s possible to get a unique car. And this uniqueness is easier to get with an old car. Manufacturers of steering wheels, columns and pedals might do well coming into and supplying this segment of the market.”

Bernasconi said that restoration is currently popular and that cars from the past are cooler than ever. He added that musclecars as well as old European vehicles are all the rage, and sales of current-model musclecars have grown so popular that Chevrolet has finally launched the Camaro officially in Brazil. Chevrolet cars had previously been sold by independent dealers.

This car-passionate country publishes numerous tuner, hot rod, off-road, racing and car-collector publications. Below is a sampling of these magazines, all of which were represented in recent years on the SEMA Show’s Global Media Awards panel. They include:

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Racing is popular in Brazil on many different levels, from Formula 1 on down to a local amateur level. Many of the vehicles available in Brazil are equivalent to North American models, and the “Made in America” mark is considered a sign of quality and innovative design.
   
Autoesporte
www.autoesporte.com.br

Automotivo
www.revistaautomotivo.com.br

Car Stereo
www.carstereo.com.br/carstereo

Car Stereo Professional
www.carstereo.com.br

Fullpower
www.revistafullpower.com.br

Hot Rods
www.revistahotrods.com.br/hotrods

Super Speed
www.revistasuperspeed.com.br/superspeed

USAC
www.usac.com.br

Brazilian trade and consumer shows are well attended, and the most well known is the consumer show X-treme Motorsports, a biennial event held in Sao Paulo that is now in its sixth edition and is reminiscent of the first SEMA Shows. Indeed, the show’s organizers are looking for the event to grow and increasingly showcase customizing options.

“Our main goal is to grow the show to 150 companies in the 2013 edition,” said Bernasconi, who is the founder of X-treme Motorsports.

Population

With a inhabitants totalling nearly 200 million, Brazil boasts the largest population in the southern hemisphere and is now ranked fifth in the world. In this country that is nearly the size of the U.S., the majority of the inhabitants live in the south-central area, which includes Sâo Paulo and Rio de Janeiro. Sâo Paulo is one of the largest cities in the world, with 20 million people living within the greater metropolitan area.

The Vehicle Market

With 3.4 million passenger vehicles sold in 2011, Brazil is now the fourth-biggest car market in the world. It overtook Germany in 2010, and many envision Brazil increasing this strong growth and overtaking Japan to claim the world’s third-largest market within three to five years. More and more Brazilians want the transportation freedom that comes with owning a vehicle as they experience rising prosperity. This extraordinary growth may continue, as sales reflect currently unmet demand and the ratio of people to vehicles increases from the current one vehicle for every seven people and closes the gap with the U.S., which has one vehicle for every two citizens. JD Powers predicts annual sales will double to six million in 2018.

Disposable Income

Consumers need disposable income to purchase specialty parts and grow the tuning market in Brazil. Fueled by low unemployment rates (currently a new historic low of 5.8%) and a fast-growing economy, all indications point to an improvement in the purchasing power of Brazilians. The number of people entering the middle class is surging, and continued progress is expected in the short term. Between 2003 and 2009, 35 million people became part of the middle class in Brazil, and 20 million more are expected to attain that distinction by 2014, further reducing the historic yawn between the nation’s rich and poor.

“What is happening in Brazil is very different from what is happening in other BRICs [Brazil, Russia, India and China] in the sense that what is booming in Brazil is the bottom of the income distribution,” said analyst Marcelo Cortes Neri, chief economist of Centro de Politicas Sociais at the Getulio Vargas Foundation. “Consumer demand for cars as well as all consumer items such electronics and luxuries is increasing at a fast clip.”

Perception of American-Made Products

The “Made in America” mark is considered a sign of quality and innovation among global consumers. Local enthusiasts are increasingly aware of and deliberately seek U.S.-branded products. TV shows such as TLC’s “Overhaulin’,” MTV’s “Pimp My Ride” and Universal Studio’s The Fast and the Furious films also played a great role in generating interest in American-style tuning. As brand awareness and education among consumers and the trade continues in both markets, U.S. brands are bound to benefit.

Several resources are available to the automotive specialty-equipment companies that are interested in the Brazilian market, including:

• The Brazilian-American Chamber of Commerce

• The U.S. Commercial Service in Brazil

• The Embassy of the United States in São Paulo

• ACEB (the Brazilian Business Trade Association)

• Trends of Doing Business in Brazil in 2011

Next Month: Part 2

For more information about SEMA’s international programs, contact Linda Spencer at lindas@sema.org or visit www.SEMA.org/international.