SEMA News - October 2010

	Proceeds from the sale of the WD-40/SEMA Cares Mustang will go to Childhelp and Victory Junction Gang Camp children’s charities.

SEMA Cares and WD-40 Partner With Barrett-Jackson on Mustang GT Charity Build

SEMA Cares and WD-40 are partnering with Barrett-Jackson and leading aftermarket manufacturers to build a custom ’11 Ford Mustang GT for the 2010 SEMA Show.

The vehicle, dubbed the WD-40/SEMA Cares Mustang, features a 5.0L V8 engine and paint reminiscent of WD-40’s blue-and-yellow can. It will travel the West Coast before being auctioned at the Barrett-Jackson Classic Car Show and Auction on January 17–23, 2011, in Scottsdale, Arizona.

All proceeds from the vehicle’s sale will go to Childhelp and Victory Junction Gang Camp children’s charities.  

 

	Mark Reuss, president of General Motors North America, will help kick-off the 2010 SEMA Show by delivering the inaugural SEMA Vehicle Technology keynote address.

GM President Mark Reuss to Deliver First SEMA Show Vehicle Technology Keynote

Kick-off the 2010 SEMA Show by attending the inaugural SEMA Vehicle Technology keynote address featuring Mark Reuss, president of General Motors North America. As an automotive enthusiast and long-time SEMA advocate, Reuss will open the Vehicle Technology Briefing Program on Tuesday, November 2, from 9:00 a.m.–12:00 p.m., in the Las Vegas Hilton.

Reuss will discuss how GM’s transformation is leading the reinvention of the automobile and how advanced technologies are impacting the performance industry today and creating new business opportunities for
SEMA members.

A panel discussion with industry leaders, including Peter Diamandis (X Prize Foundation), Scott Atherton (American Le Mans Series), Azhar Hussain (TTXGP eGrandPrix), Imtiaz Haque (Clemson University-ICAR), Patrick Reininger (R.L. Polk & Co.) and Bryan Krulikowski (Morpace) will follow the keynote presentation.

Space is limited. Tickets are free, and SEMA Show attendees can make reservations by visiting here. The deadline to register is Friday, October 15, 2010.

 

SEMA Show Exhibitor Invite Program Offers Secure, Confidential Method to Reach Buyers

	Exhibitor Invites enables SEMA Show exhibitors to create customized e-mail campaigns.

Looking for another way to connect with buyers? A free, new tool called Exhibitor Invites enables 2010 SEMA Show exhibitors to create their own customized e-mail campaigns, allowing them to send up to three e-mails to an unlimited number of buyers and prospects. Program features include:

• Discounts, incentives, company information and new-product announcements.
• Upload buyer and prospect files to Exhibitor Invites’ bonded and licensed third-party e-mail service, Global IntelliSystems. Each list is 100% secure and will not be shared with anyone (not even SEMA).
• Company name, logo, booth number and customized message are included as part of the three separate HTML e-mails. Exhibitors approve the message and schedule, while SEMA pays for the whole thing.
• Boost awareness about each exhibitor’s company and help ensure that all key customers and prospects attend the 2010 SEMA Show and stop by the exhibitor’s booth.

The exhibitor who generates the greatest number of qualified buyers by October 1, 2010, receives $25,000 worth of on-site signage for the SEMA Show. To get started, visit here.

Contact an Exhibitor Invites specialist at 866/771-6290 x1764 with any questions about using the Exhibitor Invites program. If you have any problems using the system, send an e-mail to services@exhibitorinvites.com.

 

	“My Show Planner” enables SEMA Show attendees to create day-by-day calendar listings of the seminars and special events they want to attend.

Daily SEMA Show Planner:Hit the Show Floor With a Game Plan

To make the most of your time at the 2010 SEMA Show, use “My Show Planner” to create and save a personalized itinerary for the Show.

My Show Planner enables all registered attendees and exhibitors to prepare for the SEMA Show experience by creating a day-by-day calendar listing of the seminars and special events they plan to attend. You can map out the exhibitors you need to meet and add any meetings or activities you have planned during the week. In addition, you can save your itinerary and come back at any time to add, delete or modify the information.

For additional details on My Show Planner, visit www.SEMAShow.com.

 

Fast Facts

Autogeek was selected as the presenting sponsor of Masters Entertainment Group’s newest TV series, “Motorhead Garage,” featuring Sam Memmolo and Dave Bowman, formerly of “Shadetree Mechanic” and “Two Guys Garage.” In addition to its sponsorship, Autogeek will also provide several features for auto enthusiasts that offer step-by-step instructions on keeping vehicles looking their best. Masters Entertainment Group, Bristol, TN;
423/968-7736.

WyoTech named Jorge Gutierrez president of the WyoTech–Daytona campus, located in Ormond Beach, Florida. Prior to joining WyoTech, Gutierrez was the campus president at Universal Technical Institute in Norwood, Massachusetts, where he managed more than 100 employees and served more than 1,000 students in a large automotive, industrial and diesel training facility. WyoTech, Laramie, WY; 307/742-3776.

	Bradley Garwood

Firestone Industrial Products Co. hired Bradley Garwood as the company’s new heavy-duty aftermarket distribution sales representative for the northeast region. Garwood is responsible for all sales distribution and account-management operations. Prior to his appointment at Firestone Industrial, Garwood spent six years at Pioneer Automotive Technologies. Firestone Industrial Products Co., Indianapolis, IN; 317/575-7000.

King Shock Technology launched a new website at www.kingshocks.com. Designed by Mad Media, the site is loaded with technical specifications, news, lifestyle articles, photos and videos, and it also features the latest news and stories about King Shocks drivers, worldwide events and new-product developments. King Shock Technology, Garden Grove, CA; 714/530-8701.

The Advanstar Automotive Group named long-time editorial director Larry Silvey editorial director emeritus. Silvey is leaving Advanstar to become the new chair of the automotive aftermarket management program at Northwood University in Midland, Michigan. Silvey will continue to be affiliated with Advanstar Automotive, writing a monthly column on aftermarket topics and serving as a member of the organization’s editorial advisory board. Web Director Michael Willins will take over Silvey’s responsibilities. Willins is the former publisher and editor-in-chief of Automotive Body Repair News and a former senior editor of Aftermarket Business. Advanstar Automotive, Woodland Hills, CA; 818/593-5000.

	David Richardson

Directed Electronics appointed David Richardson to the new position of director of auto dealer sales. Richardson has more than 30 years of professional experience holding senior management positions with leading automotive businesses, including AutoNation, EDS, General Motors, Johnson Controls and Toyota.

Gary Jurick was named the new vice president and general manager of Roush Performance. He was previously the director of Roush Performance product development, where he headed up the engineering, testing and validation areas of vehicle and parts programs. Jurick has 21 years of experience at Roush.

Martin & Co. Advertising hired Brian Zembrycki as marketing and administrative assistant to president and owner Zan Martin. Zembrycki has 28 years of experience in the automotive aftermarket, serving in numerous management capacities, specializing primarily in the racing sector. Martin & Co. Advertising, Whites Creek, TN; 615/876-1822.

G-Force Racing announced that it has a permanent business office location in the Charlotte Motor Speedway's main office building. Don Stodola, executive account manager, has relocated to the new office from the G-Force corporate building located in the Atlanta area. The office at the speedway was originally established in 2009 for the research and development of new opportunities with local, area and national competitors and regional businesses. G-Force Racing, Roswell, GA; 770/998-8855.

	Tom Varrone

Tom Varrone of Phoenix, Arizona, was named the 2010 Educator of the Year during the North American Council of Automotive Teachers (NACAT) Conference. Each year, Mitchell 1 recognizes one of the nation’s top teachers for excellence in automotive repair instruction. Varrone was presented with a check for $500 and a recognition certificate. He also receives a one-year, complimentary subscription to Mitchell 1’s OnDemand5.com for the school where he teaches. Varrone leads the BMW Service Technician Education Program (STEP) and the BMW FastTrack program at the Universal Technical Institute, Phoenix campus. Mitchell 1, Poway, CA; 858/391-5000.

The Sports Car Club of America (SCCA) named Mobil 1 as the “Official Oil of the SCCA.” All SCCA members will receive a 20% discount on purchases at www.mobilracingstore.com as part of the agreement, and competitors using Mobil 1 products are eligible for a sizable contingency program at the 2010 SCCA National Championship Runoffs Presented by Subway at Road America. SCCA, Topeka, KS; 785/357-7222.

The team at A.R.E. is providing Tim Samaras, star of “Storm Chasers” on the Discovery Channel, the ultimate tornado-chasing truck—the A.R.E. Twistex Probe. The Twistex Probe is a ’08 GMC Sierra 3500 outfitted with A.R.E.’s Deluxe Commercial Unit (DCU) Series truck cap and numerous aftermarket accessories designed to increase the vehicle’s functionality in severe weather. A.R.E. also retrofitted the DCU truck cap with side toolboxes to fit Samaras’ smaller probes and customized it to accommodate a 1,500-lb. Tommy Gate Lift Gate on the rear of the truck. Footage from the A.R.E. Twistex Probe on tornado-chasing missions will be featured in Season 4 of “Storm Chasers,” which premieres this fall on Discovery Channel. A.R.E., Massillon, OH; 330/830-7800.

Northwood University has selected Brandon Postema as the chair and James Hannah as vice chair for the Northwood University International Auto Show (NUIAS). The 47th NUIAS, hosted by students of the university, is set for October 15–17, at the school’s campus in Midland, Michigan. The theme for this year’s show is “Electrify the Drive: Sparking a Global Revolution.” More information is available at www.northwood.edu/autoshow. Northwood University, Midland, MI. 

JR Motorsports founder Everett Sather has announced that the company was sold to Brock and Kristin Rude. Brock Rude, a 28-year veteran of the automotive aftermarket, is the company’s new president and CEO, and he will oversee the day-to-day operation of the company’s locations in Ankeny and Boone, Iowa. Kristin Rude will assist in those capacities.

U.S. Auto Parts has signed a definitive stock purchase agreement to acquire Whitney Automotive Group for the purchase price of $27.5 million and assumption of approximately $11 million in trade-related and other payables. Whitney Automotive Group is expected to have $110–$120 million in revenues under U.S. Auto Parts ownership in 2010. Whitney Automotive Group owns a $10 million state-of-the-art distribution center located in Illinois, which holds approximately $15 million of owned inventory and was custom-built for B2C distribution of auto parts. The acquisition would allow U.S. Auto Parts to complete a three-distribution center network. U.S. Auto Parts expects the integration of the companies to be completed in 2011. U.S. Auto Parts, Carson, CA; 310/719-8666. 

Toyo Tire U.S.A. Corp. added Bert Butler and Kenny Frederick to the company’s sales team. Butler has more than 20 years of sales and marketing experience in the tire industry. He is responsible for sales efforts in the District of Columbia, Maryland, North Carolina and Virginia. Frederick, who has been in the tire industry for 23 years, resides in Houston and is responsible for customers in South Texas. Toyo Tire U.S.A. Corp., 714/236-2080.

Roush Yates Performance Products announced a partnership with valvetrain component manufacturer Del West, making Roush Yates Performance Products the sole distributor of Del West products to all markets in the United States. Roush Yates will use Del West components in the engines built at the facilities in Mooresville, North Carolina, and will sell the products from its Roush Yates Performance Products store. Roush Yates Performance Products, Mooresville, NC; 704/662-6982. 

The 1in8 Motorsports Foundation of Cary, North Carolina, hired Penelope Lepisto as administrative director. Lepisto’s main responsibility is to hire event planners nationally and internationally to develop and execute events that raise money and awareness for the importance of early cancer detection.

Prestolite Performance, manufacturer of brands including Lakewood, Mr. Gasket, Hays, Accel and Mallory, has acquired the business of QuickTime Inc., a leading manufacturer of lightweight bellhousings and racing accessories. QuickTime’s manufacturing and research and development will continue to be based in its current headquarters of Oskaloosa, Iowa, while sales, service and administration will integrate and transfer to Prestolite Performance’s Cleveland headquarters by the end of the year. Prestolite Performance, Cleveland, OH; 216/688-8300.

The Atturo Tire Corp. has entered an exclusive distribution agreement with RC Comercio for Atturo’s UHP brand. RC Comercio is now doing business as Atturo Pneus Brazil. According to Atturo, Brazil as a key market for the company and will serve as a regional indicator for the brand’s potential in South and Central America. Atturo Tire Corp., Bland, MO; 573/943-6947.

Mobileye Inc. has signed a retail distribution agreement with Car Toys through which Mobileye’s aftermarket accident-avoidance systems will be made available for purchase through the retailer’s fleet distribution channel as well as its 51 locations in metropolitan areas across the western United States. Mobileye Inc., Southfield, MI; 248/351-2683.

Rick Carey has joined Sports Car Digest as auction editor. He will provide overall market insight and pre- and post-auction reports with perspective gained from nearly two decades of following the collector-car market. Carey is one of the first people to report on the collector-car market, and he has one of the largest databases of auction transactions. He has contributed to AutoWeek and Classic & Sports Car and is a member of the International Motor Press Association and the Society of Automotive Historians. Sports Car Digest, Charlotte, NC; 704/469-6352.

On October 1, 2010, the Investech Audio Group will relaunch the Audiobahn brand in the mobile electronics industry. The company stated that products sold under the Audiobahn brand will include amplifiers, subwoofers, tweeters, speakers, capacitors, processors, enclosures and more, and the return to the market will be accompanied by newly revamped products and special promotions. To celebrate the re-launch, Audiobahn announced a pre-launch website, which counts down to the official launch on October 1.

Hurst Performance has added the Hurst Garage to its headquarters in Southern California. The new addition will offer tailored customization options installed by Hurst Garage technicians to current-model Camaro, Mustang and Challenger owners. The same Hurst technicians who design, test and build the limited-edition Performance Series vehicles are responsible for the work done at the Hurst Garage. More information is available on the Hurst Performance website. Hurst Performance, Irvine, CA; 949/261-5500.

Motorz TV has announced that the Sears Blue Tool Crew will be the exclusive provider of tools that host Chris Duke will use, review and discuss on the show and online. In July, the company began a giveaway from the Sears Blue Tool Crew at the Motorz TV website.

Intro-Tech Automotive Inc. recently partnered with Direct Communications Inc. (DCi) to provide the entire Intro-tech offering through DCi’s All-Channels electronic cataloging service. The electronic catalog is now available in a variety of electronic catalog formats (including AAIA Industry Standard formats of ACES and PIES) and is also available to 7,000-plus jobbers through DCi’s CatalogRack.com service. Intro-Tech Automotive Inc., Chino, CA; 714/635-3007. DCi, Des Moines, IA; 515/276-0442. 

SEMA News - October 2010

The images and information provided in “Spy Photos” are supplied by the spy shooters at Brenda Priddy & Co. “Spy Photos” are included each week in SEMA eNews, the association’s electronic newsletter. To receive your copy of SEMA eNews, e-mail enews@sema.org. 

 

2013 Cadillac ATS

When It Hits: Sedan production for the ATS is expected to start in July 2012, followed by a coupe in July 2013. 

What Priddy Says: While this mule looks like a standard Cadillac CTS sedan, the decoy body is actually riding on GM’s new Alpha chassis. The ATS has been described as a smaller version of the CTS and may be meant to be a true competitor to the BMW 3-Series.  

 

2011 Bentley Continental GT 

When It Hits: Watch for this new Bentley to debut at the Paris Motor Show this fall.

What Priddy Says: The latest look at the Continental GT reveals the possibility of new headlights, a front bumper and front fenders for a dramatic new front-end look.

 

2011 Dodge Avenger 

When It Hits: Production of the 2011 Avenger is set to start in November at the plant in Sterling Heights, Michigan.

What Priddy Says: The Avenger will get the new 3.6L Pentastar V6 mated to a six-speed automatic transmission, with the possible addition of Multi-Air technology (a variable-valve-timing innovation from parent company Fiat) in later models. The base 2.4L four-cylinder has also been retuned for more efficiency. 

  

2012 Ford Taurus SHO

When It Hits: Current rumors indicate that an updated version of the Taurus SHO will debut in 2012. 

What Priddy Says: Designers want the SHO to have a distinctive look that separates it from other Taurus offerings, and they’ll start with a “freshening” for the 2012 model year. Priddy’s sources also expect the SHO’s 365hp 3.5L EcoBoost engine to be tweaked a bit, possibly even to the neighborhood of 400 hp.

 

 

SEMA News - October 2010

Utilizing an Array of Free or Low-cost Resources to Become a Strategic Exporter

By Linda Spencer

		International buyer registration is running ahead of the number at last year’s SEMA Show, which welcomed more than 20,000 international buyers from more than 100 companies. SEMA hosts a variety of programs designed to link exhibitors and international buyers, including an International Happy Hour and online matchmaking program.

The U.S. government estimates that less than 1% of U.S. small businesses currently export, even though there’s huge demand for high-quality, American-made products. SEMA members as a group appear to fare better as a percentage of those that engage in exporting, yet many SEMA-member products are finding their way into overseas markets, often through their U.S.-based warehouse distributors or in response to ad hoc requests from overseas customers and in the absence of a deliberate policy on how to maximize their bottom line through a deliberate effort. “My guess would be that about 75% of SEMA-member manufacturers’ products wind up overseas somehow,” said Wade Kawasaki, president of Exports International. “I think a very small portion—perhaps 20%—have an integrated strategic plan on how that is done and how to expand or structure upon what
they have.”

Given that exporting is an important but underutilized tool to help U.S. companies better weather the current prolonged economic downturn, the U.S. government recently announced a new initiative to assist firms. On March 11, 2010, President Obama signed Executive Order 12870, the National Export Initiative. It includes an increase in the budget of the U.S. Department of Commerce’s International Trade Administration in order to expand the number of trade experts available to serve as advocates for U.S. companies. The initiative includes a number of goals, including increasing the number of small and medium enterprises (SMEs) exporting to more than one market by more than 50% and increasing the presence of U.S. SMEs in emerging markets, such as Brazil, China and India. U.S. Department of Commerce staff noted that these resources had yet to be added as of August and, in fact, key posts—including the U.S. Commercial Service in China—have seen an actual reduction in staff. (SEMA News will include an interview with the Department of Commerce in an upcoming issue. The interview will highlight the progress of this initiative.)

In addition to adding to a company’s bottom line, selling products to markets beyond one’s home country can have a number of other benefits. Numerous studies have shown that exporters outperform non-exporters in terms of wages, productivity and innovation. The Organization for Economic Co-operation and Development concurs, noting in a 2009 report that internationalization benefits small- and medium-size firms through “greater access to new markets, improved resource utilization and productivity, and increased exposure to international best practices, knowledge and technology via the pressures—competitive, yet also creative—of the international trading environment.”

SEMA members that are currently active exporters know that being successful takes a commitment of time, money and resources—all of which are in short supply. It’s a struggle for most firms to develop a strategic plan that involves everything from identifying which international markets provide the greatest potential in terms of product mix, vehicles on the road, industry-friendly laws regarding customization, a consumer base with the means and interest to personalize their vehicles and manageable tariff rates. They also have to develop the ability to connect with reliable and capable overseas distributors as well as determine the costs that factor in shipping, any necessary product alteration and researching the competition in the market.

SEMA offers members various resources to help with these tasks, including market research, distributor databases, networking events at the SEMA Show and abroad. The overseas events include venues in China, the Middle East, Mexico and Europe.

“SCT finds distributors and dealers in a variety of ways” said Rick Trudo, president of SCT, a SEMA Show exhibitor and longtime SEMA member. “The SEMA Show is one source. In 2009, 29% of the visitors to SCT’s booth were international.” Among them were a Russian distributor and a Russian dealer, each of whom bought $40,000 worth of tuning software from SCT.

SEMA creates networking opportunities for member companies with distributors in key markets around the world. Pictured here importers, retailers and wholesalers from around China discuss the developments of the market in that country.

Other resources are provided by the U.S. government—the federal government spends $235 million annually to assist U.S. businesses in selling abroad. All 50 U.S. states also offer services, often including financial assistance to firms within their borders. A recent survey of state export services said that grants to small- and medium-size businesses were among the resources state funds provided and that “some states provide grants or payments to SMEs to help defray the costs of the U.S. Commercial Service’s fee-based export promotion services, such as attending international trade shows and trade missions and export training.”

Derek Chen is the director of foreign operations and the director of motorsports development for the international trade division of North Carolina’s Department of Commerce. His primary responsibilities involve assisting with North Carolina’s export of automotive and defense products. In addition, Chen oversees the operation of the state’s six foreign offices, which report to him.

“It is important that we continue to grow the North Carolina economy by expanding our companies’ goods and services into foreign markets,” he said. “By increasing their output, our North Carolina companies create jobs, keep the jobs they have, pay higher wages and enjoy increased stability, and the state enjoys increased tax revenue. Together, these benefits provide one of the more attractive and enduring solutions to our state’s economic woes while securing our state’s future in the global marketplace.”

Roehrig Engineering Inc. originally started as a supplier of automotive testing equipment to the racing industries and has worked with the North Carolina trade staff.

“We have worked with the international trade division since 2001, at which time we were just entering into the exporting market,” said Kim Rash, CFO of Roehrig Engineering. “Since that time the trade division has been instrumental in growing our business. Sales have increased by 110%. International sales contributed to 40% of the 2008 income and 60% in 2009. This increase in international activity would not have been possible without the help of the international trade division. Our staff is very grateful for the opportunity to serve international markets as well as the support and guidance needed to retain our employees in North Carolina and our four international reps.”

Roehrig Engineering currently sells in 47 different countries. Rash noted a few of the services the company has received from the North Carolina staff, including promoting the company’s products to potential customers; providing information regarding legal and accounting services; assisting Roehrig in understanding the process for clearing customs on a country-by-country basis; suggesting and sponsoring seminars regarding finance, shipping, insurance needs and business practices in foreign countries; and assisting with language translations and travel arrangements.

“Needless to say, the North Carolina Department of Commerce has been a valuable resource for our company and has provided priceless information that helped us diversify into the international markets,” Rash said.

Exporting is worth exploring. Those companies whose products are proven export-viable with some initial overseas success should consider elevating and integrating the goal of increasing overseas sales with a commitment throughout the firm and using the upcoming SEMA Show to begin networking with the more than 20,000 international buyers expected in Las Vegas.
“I believe many, many more SEMA exporters would find great success in selling outside the United State,” said Kawasaki, a veteran exporter. “They just need to put more thought behind the process.”

For more information about how to jumpstart your export success, contact Linda Spencer via e-mail. She can help you capitalize on the SEMA Show programs aimed at bringing together exhibitors and international buyers as well as obtain distributor lists, information on overseas trade shows and relevant laws, regulations and tariffs.

 

 

SEMA News - October 2010

LEGISLATIVE and TECHNICAL AFFAIRS

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

CANADA

Leaded Fuel: Environment Canada issued a SEMA-supported final rule to indefinitely extend an exemption allowing the use of leaded gasoline in competition motor vehicles. The exemption has been renewed several times since it was first established in 1996. SEMA had previously opposed efforts to permanently terminate the exemption and effectively ban racing vehicles using leaded fuel. The new rule recognizes the relationship between the Canadian and U.S. racing industries and adopts a consistent environmental approach to leaded fuel use. Environment Canada will conduct a five-year review and revisit the exemption issue if necessary based on science, technology and fuel replacement developments. Meanwhile, the agency will work with the racing industry to encourage a voluntary reduction or phase-out of leaded racing fuel.

STATE UPDATE

Massachusetts Street Rods/Custom Vehicles: A version of SEMA-model legislation to create a vehicle registration classification for street rods, custom vehicles, replicas and specially constructed vehicles was passed by the Massachusetts House and Senate. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. Replica vehicles are defined as assembled by a non-manufacturer from new or used parts that replicate an earlier year, make and model vehicle. Specially constructed vehicles are those reconstructed or assembled by a non-manufacturer from new or used parts that have an exterior that does not replicate or resemble any other manufactured vehicle. The bill allows a replica vehicle to be assigned a certificate of title bearing both the year in which the vehicle was built and the make, model and year of the vehicle intended to be replicated. The measure also provides that specially constructed and replica vehicles that are registered on or before a certain date would be exempt from emissions inspection requirements. Specially constructed and replica vehicles registered after that date would be subject to emissions control requirements based on the model year and configuration of the engine installed, whether the engine is an original equipment manufacturer’s production engine, rebuilt engine or crate engine.

Ohio Street Rods/Custom Vehicles: SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles remains pending in the Ohio Legislature. The House Transportation Committee unanimously passed the bill earlier this year. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows kit cars and replica vehicles to be assigned certificates of title bearing the same model year designations as the bodies of the vehicles they were constructed to resemble. The measure also includes street rods and customs in the historical motor vehicle definition for the purpose of holding these vehicles only to the equipment standards specified by law during the model year listed on the title of the vehicle. The bill will now be sent to the floor for a vote by the full House.

Federal Update

Bank Loans and Bonus Depreciation: The U.S. Senate was unable to agree on a SEMA-supported bill to provide smaller banks with access to $30 billion in funds intended to be loaned to small businesses. The Senate may reconsider the measure later this year. Besides pumping $30 billion into the banking system for loans, the Senate bill would also extend the bonus depreciation through 2010. In 2008 and 2009, all businesses were permitted to immediately write off 50% of the cost of new equipment (“bonus depreciation”). The depreciation expired at the end of 2009. SEMA contends that the depreciation write-off encourages companies to invest in newer, more-efficient equipment and spurs sales and creates jobs. In addition, the bill would expand and extend the Section 179 program, allowing companies to write off up to $500,000 in capital expenditures in tax years 2010 and 2011, double the current limit for 2010. The legislation needs a “super majority” of 60 Senate votes for passage. No Republicans have supported the bill to date, voicing concerns about procedural issues and the fact that the $30 billion would come from unspent money in the Troubled Assets Relief Program (TARP). SEMA is working with the National Federation of Independent Business and National Association of Manufacturers in support of the legislation.

Internal Revenue Service 1099 Forms: SEMA urged Congress to repeal a requirement that taxpayers with business income issue 1099 forms to all vendors from whom they buy more than $600 of goods or services in any year, beginning in 2012. Under current law, most corporations are exempt from receiving 1099s. The requirement is expected to raise $17 billion over 10 years by identifying potential sources of unreported income. SEMA is working with a coalition of other associations to enact legislation to repeal the rule. Unless overturned, the rule threatens to impose enormous burdens on small businesses as they attempt to track and report a wide range of payments to contractors, vendors and others. 

Debit Card Swipe Fees: SEMA and 54 other trade associations asked Congress to limit the amount credit card companies can charge merchants when processing payments. Congress addressed some but not all swipe fees when it enacted the new financial reform law. Under the old system, the merchant pays an average of a 2%–4% transaction fee every time a card is used. The fees are automatically divided between the merchant’s bank, cardholder’s bank and network that processes the transactions. As a result of the new financial reform law, the Federal Reserve now has the authority to ensure that debit card transaction fees are “reasonable and proportional to the actual cost incurred” when processing a transaction. However, the Federal Reserve’s power is limited to the fees charged or received by the issuing institution (bank). Credit card fees charged by a payment network, such as MasterCard or Visa, will be generally free from regulation. Merchants are allowed to offer discounts for one form of payment over another (cash or check vs. debit or credit). 

National Manufacturing Strategy: The U.S. House of Representatives approved the “National Manufacturing Strategy Act,” which would make manufacturing a top priority for Congress and the Obama Administration. The SEMA-supported legislation is intended to promote government policies to foster economic growth, increase employment and productivity and expand exports for the nation’s manufacturing sector. The legislation would establish a public-private advisory board to make policy recommendations to the president on how to achieve short- and long-term goals and report its findings to Congress. The board would include representatives from various federal agencies, two state governors, private-sector members with experience in managing companies, supply chain providers and labor organizations. Topics for consideration would include competitiveness, stability, sustainability, trade balance and job creation in a global economy. The board would be challenged to outline specific action items to achieve its goals and recommendations. SEMA is urging the Senate to approve the bill.  

 

SEMA News - October 2010

A Conversation With Ed Tonkin, Chairman of the National Automobile Dealers Association

By Chad Simon

	”The addition of a successfully run specialty-equipment/accessories department has the real potential to increase sales and profitability as well as customer retention and loyalty,” said National Automobile Dealers Association Chairman Ed Tonkin.

Recently SEMA News caught up with National Automobile Dealers Association (NADA) Chairman Ed Tonkin. Tonkin, a multifranchise dealer in Portland, Oregon, discussed the opportunities specialty-equipment sales represent for dealerships as well as the SEMA Dealer Day taking place at this year’s SEMA Show.

SEMA News: We are seeing an increased level of interest from new-car dealerships looking to get involved in selling specialty-equipment accessories. What role do you see accessory sales playing for dealerships going forward?

Ed Tonkin: Sales of specialty-equipment accessories represent a $27-billion-a-year market, and it’s growing. This provides a tremendous opportunity for franchised dealers to expand their business operations and better meet the needs of their customers who shop for vehicle accessories. Consumers are increasingly interested in vehicle personalization. More and more dealers are offering specialty-equipment accessories, creating a new and important business opportunity for their dealerships.

SN: What are some of the benefits accessory sales programs represent for new-car dealers?

ET: The nation’s new-car and -truck dealers continue to make major investments in their dealerships to improve sales, service and customer satisfaction. The addition of a successfully run specialty-equipment/accessories department has the real potential to increase sales and profitability as well as customer retention and loyalty. Franchised dealers also invest heavily in technical training offered by their manufacturers. As a result, no one knows your vehicle better than your dealer. And no one is better able to advise on how any modifications might impact vehicle performance and warranty coverage.

SN: What advice would you give to dealers looking to integrate specialty-equipment accessory sales into their dealerships?

ET: Dealers who are thinking about integrating a specialty-equipment/accessories department should attend the Dealer Day program at the SEMA Show. This is a rare opportunity for dealers and their managers to learn from dealers who are operating successful accessory programs. In addition, NADA University offers an online training program, “Accessorizing Your Way to Additional Profits,” that lets you hear directly from many of these dealers who openly share the pitfalls and best practices of their experiences. [For more information, visit www.SEMAShow.com/dealerday.]

SN: Similarly, what advice would you offer to specialty-equipment companies looking to get involved with auto dealerships?

ET: There are still many concerns over vehicle warranties and liability issues when it comes to the specialty-equipment market. First and foremost, dealerships need to have confidence in companies they choose to do business with. These companies must be reputable, reliable and equally concerned about customer satisfaction and a long-term relationship.

SN: NADA is co-sponsoring the 2010 Dealer Day conference at the SEMA Show. What can dealers expect to learn from the program?

ET: We’ve developed Dealer Day at the SEMA Show specifically to address accessory sales opportunities for dealers. The half-day program will provide participants with the tools and resources they need to expand or build an accessory department. Participants will also receive the free online course, “Accessorizing Your Way to Additional Profits,” from NADA University’s Learning Hub. Dealers who attended last year had a lot of good things to say about the program. They said they walked away with information they could put to immediate use, and they made some good contacts and learned the “how to” needed to get started. What better way to learn than from your peers? And what better place to see all the latest accessories from the equipment manufacturers?

 

SEMA News - October 2010

A Conversation With Ed Tonkin, Chairman of the National Automobile Dealers Association

By Chad Simon

	”The addition of a successfully run specialty-equipment/accessories department has the real potential to increase sales and profitability as well as customer retention and loyalty,” said National Automobile Dealers Association Chairman Ed Tonkin.

Recently SEMA News caught up with National Automobile Dealers Association (NADA) Chairman Ed Tonkin. Tonkin, a multifranchise dealer in Portland, Oregon, discussed the opportunities specialty-equipment sales represent for dealerships as well as the SEMA Dealer Day taking place at this year’s SEMA Show.

SEMA News: We are seeing an increased level of interest from new-car dealerships looking to get involved in selling specialty-equipment accessories. What role do you see accessory sales playing for dealerships going forward?

Ed Tonkin: Sales of specialty-equipment accessories represent a $27-billion-a-year market, and it’s growing. This provides a tremendous opportunity for franchised dealers to expand their business operations and better meet the needs of their customers who shop for vehicle accessories. Consumers are increasingly interested in vehicle personalization. More and more dealers are offering specialty-equipment accessories, creating a new and important business opportunity for their dealerships.

SN: What are some of the benefits accessory sales programs represent for new-car dealers?

ET: The nation’s new-car and -truck dealers continue to make major investments in their dealerships to improve sales, service and customer satisfaction. The addition of a successfully run specialty-equipment/accessories department has the real potential to increase sales and profitability as well as customer retention and loyalty. Franchised dealers also invest heavily in technical training offered by their manufacturers. As a result, no one knows your vehicle better than your dealer. And no one is better able to advise on how any modifications might impact vehicle performance and warranty coverage.

SN: What advice would you give to dealers looking to integrate specialty-equipment accessory sales into their dealerships?

ET: Dealers who are thinking about integrating a specialty-equipment/accessories department should attend the Dealer Day program at the SEMA Show. This is a rare opportunity for dealers and their managers to learn from dealers who are operating successful accessory programs. In addition, NADA University offers an online training program, “Accessorizing Your Way to Additional Profits,” that lets you hear directly from many of these dealers who openly share the pitfalls and best practices of their experiences. [For more information, visit www.SEMAShow.com/dealerday.]

SN: Similarly, what advice would you offer to specialty-equipment companies looking to get involved with auto dealerships?

ET: There are still many concerns over vehicle warranties and liability issues when it comes to the specialty-equipment market. First and foremost, dealerships need to have confidence in companies they choose to do business with. These companies must be reputable, reliable and equally concerned about customer satisfaction and a long-term relationship.

SN: NADA is co-sponsoring the 2010 Dealer Day conference at the SEMA Show. What can dealers expect to learn from the program?

ET: We’ve developed Dealer Day at the SEMA Show specifically to address accessory sales opportunities for dealers. The half-day program will provide participants with the tools and resources they need to expand or build an accessory department. Participants will also receive the free online course, “Accessorizing Your Way to Additional Profits,” from NADA University’s Learning Hub. Dealers who attended last year had a lot of good things to say about the program. They said they walked away with information they could put to immediate use, and they made some good contacts and learned the “how to” needed to get started. What better way to learn than from your peers? And what better place to see all the latest accessories from the equipment manufacturers?

 

SEMA News - October 2010

100+ Products to Be Unveiled at the 2010 SEMA Show

The SEMA Show is all about innovation and creativity. For a taste of what’s coming at the 2010 event, check out the more than 100 new products previewed here. To see more than 1,500 on display, head to the New Products Showcase at the Las Vegas Convention Center on November 2–5, 2010. 

View a PDF of more than 100 New Products.

 

SEMA News - October 2010

100+ Products to Be Unveiled at the 2010 SEMA Show

The SEMA Show is all about innovation and creativity. For a taste of what’s coming at the 2010 event, check out the more than 100 new products previewed here. To see more than 1,500 on display, head to the New Products Showcase at the Las Vegas Convention Center on November 2–5, 2010. 

View a PDF of more than 100 New Products.

 

SEMA News - October 2010

While the SEMA Show is a B2B event, getting consumer feedback and knowing what they think about what happens at the Show can be valuable. Fortunately, there are several automotive sites that attend and report on the SEMA Show, making it possible for consumers to stay informed about the new products and trends debuting at the Show. It also gives industry professionals an opportunity to read what consumers think about these new products and trends.

Below, are a few key websites that actively report on the SEMA Show and will provide your company with a chance to read consumers’ reactions. These sites should be included on your list of required reading.

 

Hub Garage www.hubgarage.com  HubGarage is a giant enthusiast community containing automotive-related news, blogs, photos and forums related to the automotive aftermarket. The site is designed to allow car people to showcase their passions for cars.

 

AutoBlog www.autoblog.com Written by fulltime professional journalists, Autoblog.com offers daily weblogs and podcast news and commentary about automobiles and the automotive industry. It is part of the Weblogs Inc. network of media sites, which is owned by AOL, and it is another top-read enthusiast automotive blog site.

 

Automotive Forums of Internet Brands www.internetbrands.com  Internet Brands is the owner of dozens of popular blog and forum enthusiast web communities, with each site targeting a specific vehicle. Just about every make and model is covered here.

 

Jalopnik www.jalopnik.com Jalopnik is a newsblog site focused on cars, car culture and the automotive industry. It is among the top-read automotive blogs on the Internet geared toward enthusiasts.

 

Automotive.com www.automotive.com A portal site owned by Source Interlink Media, Automotive.com is a community of many of the most popular titles in the industry, including Motor Trend, Hot Rod, Lowrider and more that includes daily features, enthusiast forums and blogs by expert writers.

SEMA News - October 2010

Setups That Draw Customers and Promote Sales

By Steve Campbell

This series of SEMA News stories is based on the idea of using reliable and repeatable methods to ensure business success. In coming issues, we will delve into a range of topics aimed at developing Best Practices through knowledge, motivation and skills.  

	Signage should be hung high whenever possible to allow maximum view from throughout the store. Signs should also be produced in a clear, simple font for easy reading.

Retail stores should be well-organized and use clear, easily understood signage so that shoppers can find the products they are looking for while also being led to special offers and promotional items. But unless you have vast experience in the design of retail spaces, it’s undoubtedly best to work with a consultant in setting up your store for maximum accessibility and the resultant sales.  Just as you would hire an architect to design a building—relying on the professional’s expertise in not only planning and structural engineering, but also materials, colors and textures—so too should all but the most experienced retailer seek the services of a display consultant. At the same time, everyone involved with the store should be involved in its design, observing some basic tenets that are used in every efficient layout.

“All employees should work as a team to set-up and fully understand the dynamics of the space,” said Mike Staples, president and owner of Naythons Display. “From time to time, employee meetings should also be held to see what is working and what needs improvement.”

High on the list of best practices is determining the focus, qualities and brand distinction of the store. Decide what makes it unique, better or different from the competition. These characteristics can be carried through in the creation of the displays.

“Enticing customers to buy is a multileveled task,” said Tony Camilletti, executive vice president of Design Fabrications. “Customers need to have confidence in a store’s quality, value and proficiency. Decide what first impression the owner wants to give his or her customers. The best prices? The best service? The cleanest store? The most knowledgeable people? Determine what the brand stands for.”

Once the desired characteristics have been decided upon, the physical qualities of the displays should be based on those criteria. Customers must begin to understand the store’s value proposition—why they should make a purchase or use the store’s services—as soon as they come into view of the first sign or window.

There are a couple of different approaches to window displays. Camilletti believes that window displays are the “billboard”
of a retail store, and the goal is to capture the attention of a passer-by. If you can’t understand what the window display is trying to tell you during a two-second blink, he said, it needs to be simplified and made more impactful.

Staples also touted the importance of the front window, but his emphasis is on allowing potential customers a clear view of what’s inside. “Upfront product displays or promotional signage can block the interior of the store and cause visual confusion,” he said. “Instead, I suggest using five- or six-foot grid panels set back inside the store roughly five feet from the window and installing halogen fixtures inside the store above the window. That way, store fixtures can be displayed in bulk. The potential customer can walk in and shop off the racks, and the rest of the store and categories are clearly visible.

It’s also a good idea to leave some lights on at the rear of the store. They’re good for nighttime window-shopping and, more importantly, give local law enforcement a good view of the store.”

	Endcap displays off a central aisle can be used not only to promote sale or specialty items but also to lead customers to similar products in the perpendicular aisles. Ambient lighting, usually from florescent fixtures, should provide broad, even illumination.

Bob Radcliffe Jr., president of Display Dynamics Inc., echoed Camilletti’s point about the brief opportunity a store has to capture attention. “Potential customers are frequently moving briskly outside of a store,” he said, “and this means that copy and signage should use strong, iconic imagery that can be easily digested. The featured products should be those that are popular and unique to your store.”

Radcliffe also suggested that, except in the smallest of retail spaces, there should be a “decompression zone” as customers enter the store—a place where you’re not trying to sell goods or services but are instead allowing customers to acclimate to the inside of the store as they come in from the heat or noise or other distractions outside.

“There is nothing better to slow people down and get them adjusted to a shopping environment than face-to-face interaction,” he said, “even if it’s just the counterperson saying hello when the customer enters. But it needs to be appropriate for the environment. If yours is a store where customers are hurrying in and out, where they’re driven to get to a particular part of the store, you don’t want to distract them from their mission.”

In that instance, said Camilletti, some stores have begun to build brand loyalty and appreciation among rushed shoppers by placing such “destination products” near the front entrance for easy access. If harried customers aren’t a problem, however, the store’s floorplan and signage should promote bringing them farther in and pointing them toward specific areas where special offers and sale items are located.

“High-demand and replenishment products are typically positioned toward the rear of a store to encourage customers to browse through more merchandise on their way to getting what they want,” Camilletti said. “But if a product is on sale or is part of a promotion, celebrate it with an endcap display or a prominent palette near the entrance. Guiding customers to destination areas within a store is easily accomplished with creative use of interior décor, graphics and other signing elements to create attention and focus on desired product displays.”

Merchants should be aware of the items that are most-often purchased and central to their value proposition, Radcliffe said, and those items should be promoted with coupons and specials. “Clear graphics and signage should be posted throughout the store for easy shopper navigation, usually by aisle,” he advised. “If there are items that require assistance because they are complicated or SKU intensive, they should be positioned near a register or a customer-service staff member.”

In larger stores, Radcliffe said, the most popular floor plan is called the “racetrack,” which is characterized by a large central aisle that circles the store. Perpendicular aisles that branch off the racetrack provide end caps for promotional and new-product merchandising, and those products should reflect the category of products that are found down that particular aisle.

	Slatgrid wire floor racks accommodate shelves, hooks, baskets and dozens of other display hardware, making them extremely versatile. The hardware is also compatible with slatwall, which allows the dealer to easily re-merchandise walls and floors.

“Small retailers probably won’t use a racetrack because it takes quite a bit of square footage,” he said. “If you owned a smaller store, you might use an aisle of shelving perpendicular to the entrance and well below ceiling height—such as in Bed, Bath & Beyond. The shelving is about four or five feet tall so that customers can see farther into the store as they enter, and it is stocked with featured items.”

Signage also plays a crucial role in guiding customers through the store. Camilletti said that effective floor displays need to be signed with an explanation of the nature of the display (promotional, sale, clearance, close-out, new introduction, etc.), the unique benefits or features of the product and the price. These types of floor displays should not require customer assistance from service personnel.

Staples recommended steel shelving for floor displays, especially for heavier merchandise on shelves and for blister-packed goods on peg hooks. “Many dealers are unaware that steel shelving can be special ordered in custom finishes such as black, gray, red or other colors,” he said. “And slatgrid floor racks are another good alternative. They are wire racks that accommodate shelves, hooks, baskets and dozens of other display hardware, making them extremely versatile. But the most important feature of this type of rack is that the hardware is compatible with the wall-mounted slatwall, which allows the dealer to easily re-merchandise walls and floors. And speaking of merchandising, don’t stock product directly on the floor. Use an endcap or a skid. And don’t under-stock or leave shelves partially empty because that indicates a lack of merchandising momentum. If necessary, mitigate this issue by reducing the number of racks and opening up the aisles.”

Slatwall is normally used for perimeter wall displays, Staples said. It comes in a variety of finishes or can be ordered raw and painted as desired. It can also be ordered with aluminum inserts for increased strength and a better look. Steel slatwall, a frequent upgrade over wood, may be particularly useful in an automotive environment.

“The swirl finish on steel is the most popular,” Staples said, “but slatwall should not be used for the entire wall. It’s best to break it up here and there with another system, such as wall-mounted steel shelving. Slatwall connector extrusions can also be used to create angled protrusions. This is a good way to organize brands or categories.”

Camilletti also recommended taking advantage of height on walls when possible. “Try to create a wall display that is visible from a distance and that will draw an inquisitive shopper,” he said. “Use merchandise with brighter, distinctive colors or finishes near the top or at eye level, working with darker colors toward the lower levels. Also consider the use of blade signs that protrude perpendicularly from the wall, attaching to the fixture shelving.”

Staples recommended that most signage also be hung high so that it is visible from various areas of the floor, and he advised using a plain font that is easy to read. Be careful, too, that hanging signs are heavy enough not to sway easily, which could set off motion detectors after hours.

Stores should focus on four levels of interior graphics and signage, Camilletti said. The first might include graphic elements that express the character or brand identity of the store or tell something about the company’s history, legacy or founders.
“These elements typically fill the perimeter wall space above the fixtures or hang in areas that don’t interfere with merchandise displays,” he said.

	This slatgrid pinwheel free-standing rack is mounted on casters, allowing it to be repositioned for even greater versatility. The hardware can be swapped out with the other grid and slat systems.

Next are the directional or way-finding signs that help customers find the location of general destination areas, departments or services from the instant they enter the store. “These signs are typically mounted to walls directly above perimeter fixtures and hang throughout the store,” he said.

Subcategory and informational signs drill into the details of product categories within a department and provide information about the products, such as descriptions, benefits, unique qualities and pricing. “These signs typically are attached to the top and shelf edges of inline fixtures and endcaps,” he explained.

And, finally, temporary promotional signs should be used to announce special promotions, sales, events and seasonal themes.

Radcliffe pointed out that consumers consider good retailers to be “trusted advisors” who will introduce them to the latest products and services. He said that they also count on favorite stores to provide project merchandising, where retailers bring complementary products together in a featured area and, incidentally, inspire incremental sales. For instance, an oil change display might include protective floor mats, funnels and a selection of oils along with cleaning rags, filter wrenches or other accessories needed for the project.

Lighting can also be used to showcase specific products and should include plenty of ambient or overall lighting to ensure that customers are able to read labels and packaging.

“Ambient lighting is typically provided by florescent lamps that illuminate the whole retail space,” Staples said. “Accent lighting is usually halogen lamps used to illuminate specific products or brands. Most retail spaces are offered with inexpensive fluorescent lighting, but try to negotiate energy-saving cool white fluorescent bulbs. Also, the diffusers—the panels covering the bulbs—will probably be an inexpensive dimple design that simply disperses lighting randomly. Try working six-inch parabolic diffusers into your budget—the ones with the six-inch squares that allow the lighting to shine directly down on the merchandise.”

Camilletti also included “task lighting” in his list of must-haves. These are lamps placed over the checkout and service areas or counters to ensure adequate lighting for customers and service personnel during a transaction or consultation. He recommended consulting with a local electrical engineer or lighting specialist to discuss the specific needs of any store environment, including desired energy consumption and budget.

Radcliffe added another type of “consultation” for retail store owners: visiting the competition. “Leave your store and walk into your competitor’s store with an objective eye,” he suggested. “Spend time looking around. Compare your competitor’s operation to your own—and do it objectively! Go with a checklist of things you’d like to improve on. You’ll usually find that your competitors are doing something well, which is what keeps them in business. They’ve got some relationship to their customers that works. You need to uncover that.”

He added that polling and rewarding customers can also provide great insights on ways to improve your business. “If you notice customers who have been in your store a few times, ask them to take a brief survey or answer a checklist of four or five questions,” he suggested. “Offer them a 5% or 10% coupon on their next purchase or a free popular product. People love to be asked what they think. Suddenly, they feel like they matter. It also makes the relationship more personal.”
Above all else, keep your store contemporary, Staples counseled. Change your display layout as merchandise changes. Put dead products on sale; don’t let them sit on the shelf. “Give your store a new look by moving displays into different positions or purchasing some inexpensive grids or other displays to provide a look of renovation,” he said.

Proper product display is the lifeblood of a retail store. Organization and attention to detail are what make the cash register ring.