News | Specialty Equipment Market Association (SEMA)

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

New Car-Care Techniques and Technologies Promote the Rise of Shine


	In addition to clay for removing contaminants, waterless car washes and microfiber for cleaning and polishing, advanced chemistry has led to innovations in protectants. Meguiar’s, for instance, has created a chemical “hydrophobic” action that literally pushes water off the surface of the car. Courtesy of Meguiar’s

Barry Meguiar’s family has been in the car-care business for 109 years, and he’s personally headed up the company that carries the family name for more than four decades. As the president of Meguiar’s Inc., he’s seen the economic roller coaster trundle up and down many times before, but he’s never seen anything like the last couple of years. Despite the fact that his company not only weathered the storm but actually prospered, posting a double-digit gain in 2009 alone, he said that this recession battered the car-care industry like none other in his lifetime.

“In every other case when we’ve had a downturn, our category—appearance car care chemicals—has had amazing growth,” he said. “People felt that they had to take care of the car they owned because they couldn’t afford a new one. A lot of new customers came into the category, and the market grew. That didn’t happen this time. It was clearly a deeper recession than we’d seen before. It hit people harder and scared them to death. They were wondering if they could even keep their cars and their homes.”

Indeed, the downturn created a shakeout in the category itself, both through consolidation and from the demise of some of the smaller “boutique” and private-label companies in the car-care market. Those who remain have also seen changes. Adam Bateman, marketing manager for Wizards Products, said that the economy altered people’s priorities. They became more conscious of value and more discriminating about not only stretching their dollars, but also about how products performed, he said. They started reading product labels, looking for good product descriptions and directions about how to properly use car-care products.

Craig Burnett, lead chemist for Mothers Polishes-Waxes-Cleaners, said that enthusiasts as well as general consumers are demanding higher-quality products that are easy to use and provide excellent appearance and durability results. A broader range of products and techniques are often needed to care for the new finishes and materials that the automakers have developed.


	Consumers are looking for easy-to-use, quality products to maintain vehicles that they are keeping longer than originally intended. Courtesy of Mothers Polishes-Waxes-Cleaners

Jason Linkswiler, global business manager for the car-care group at 3M, pointed out that some consumers have become more hands-on with their vehicles. “With the recession, folks are trying to do some of their minor repair and care projects themselves rather than taking their cars to a shop,” he said. “They’re looking to do that at home for a lower cost but still get high-quality results. If you’ve been to an auto retailer lately, you may have noticed an expansion in the number of do-it-yourself kits. We’re designing and launching kits around headlight restoration, scratch removal and other areas. All are under the theme of helping customers do the projects themselves using simple tools and processes.”

In some cases, the stagnation in new-vehicle sales has actually helped the car-care category, said Randall Wemmer, president and CEO of Hi-Lustre Products Inc. Wemmer believes that the increase in basic and preventive maintenance his company has seen has resulted from people holding on to their cars longer.

“People are investing more time and money to maintain the car’s appearance,” he said. “Regular washing and detailing has become a standard. It’s simple: If you take care of your car, its value and longevity will be increased.”

Meguiar said that his own company’s extraordinary growth is the result of its marketing emphasis on “car guys”—a term he uses to encompass both male and female automotive enthusiasts.

“They’re passionate about cars,” he said, “and they use the car hobby as a respite from what’s going on in the rest of the world. The car hobby and car events are a bit of an oasis. There’s a lot of bad news out there, but not at a car show. It’s just smiling faces and people sharing their passion.”

New technologies will also spur car-care rejuvenation, the experts said. Both Wemmer and Meguiar cited changes in the paints used on new vehicles in the 21st century as catalysts for changes in car-care products. Wemmer also cited clay for removing contamination, waterless car washes and microfiber for cleaning and polishing as significant new-product developments.


	The industry must continually provide products that consumers can trust, that really work and that are backed with a wealth of information, said industry veteran Barry Meguiar. Courtesy of Meguiar’s

“Modern paints are very hard,” Wemmer said, “so using a diminishing abrasive that puts its own deep scratch into the surface before it breaks down can create real problems. Hi-Lustre’s polishing compounds use finer abrasives and can cut just as fast as harsher abrasives but are more controllable. This makes using a rotary polisher, especially when combined with foam and softer wool pads, much safer and easier and puts the advantage of the rotary’s speed in range of any technician willing to learn proper technique.”

Bateman said that waterborne paint use has become more mainstream and is even mandated in some states, so manufacturers have had to adapt their existing product lines or create entirely new lines to be compatible with waterborne finishes. Meguiar said that laws regulating volatile organic compounds (VOCs) and carcinogens have changed the make-up of the products that can be used to care for paint finishes.

“There has been regulatory pressure not just on those of us who supply packaged goods, but also those who supply the ingredients, raw materials and chemicals to us,” Meguiar said. “We’ve gone way beyond regulations in decreasing VOCs. In fact, we have developed products that are VOC-free.”

Burnett said that hard chrome plating has also diminished considerably in the past few years. Most “chrome” now is a lightweight plastic with a chrome-like finish or a plastic chrome-look cladding.

“Chrome plating is less prevalent due to environmental pressures as well as weight-reduction measures, since chrome is traditionally done on heavy steel components such as bumpers,” Burnett said. “Consumers shouldn’t use aggressive polishes and cleaners on these finishes, and it’s important that they are identified as chromed plastic and are treated as such.”

That type of education can help revive the car-care category, said Jill Subera, a marketing analyst for 3M. “Making sure that consumers understand what they’re purchasing and educating them about new projects they can try is essential,” she said. “Retailers should be extending and expanding the do-it-yourself market. As consumers remain price-conscious, they’ll continue to walk into those retailers but not know what to purchase or how to do something.”

Linkswiler and Burnett said that drill-powered polishing and restoration systems offer one such do-it-yourself innovation. “3M has created a whole new category centered around a phased process that uses a household drill to bring the user’s headlights back to new condition,” Linkswiler said, and Burnett noted that the Mothers PowerBall line can help do-it-yourselfers polish everything from oxidized plastic headlights to billet wheels or a custom paint job.


	Education is a key element in stimulating growth in the car-care category, such as offering tips and giving confidence to do-it-yourselfers who are hesitant about taking a drill-powered buffer to their headlights or their clear coat. Courtesy of 3M

The Internet plays a key role in disseminating information about those new systems. Subera pointed out that one of the top 10 automotive searches on eHow.com is a tutorial on removing scratches from automotive finishes. “If you do web searches on sites such as YouTube.com, you’ll see that people are searching for ‘how-to’ information,” she said. “Video content has become very important, offering tips to do-it-yourselfers and giving confidence to people who are hesitant about taking a drill-powered buffer to their headlights or their clear coat.”

Wemmer also pointed to the Internet as a marketing tool, making it easier to sell products. “The Internet is a global store, open 24/7, growing by leaps and bounds every day,” he said. “And because of Internet forums, people from all over the world can share information about products and techniques. This has resulted in a more educated group of technicians and customers.”

That type of marketing opportunity, which spans cultural and socioeconomic boundaries as well as international borders, has led Meguiar’s, 3M and other major players in the car-care arena to extend their reach to Europe, Asia and the rest of
the world.

“It’s no longer just focused on the United States,” Linkswiler said. “People from all over the world are participating in car-care Internet forums, and we see significant global interest to distribute and sell 3M car care products. Because of our global infrastructure, we can react quickly to meet and support such demands with our local teams. We are observing an influx of product innovation from other parts of the world that will be entering the United States in the next few years. With globalization, there will be tremendous opportunities to develop new car-care products and services for our global partners.”

The challenge for the industry is to keep up with those developments, said Meguiar. “The industry and its retailers need to look at not just what will boost sales right now but what will help in the long term,” he counseled. “That means products you can trust, that really work and that are backed with a wealth of information. The global growth of the car hobby is the most exciting news that I know of. Supporting car guys around the world should be one of our highest priorities.”

Claim Your Space for the Future

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

We’ve just come from the first SEMA Show Exhibitor Summit, held May 25–27 at the Las Vegas Convention Center, and the feedback we’ve gathered has been tremendous. The goal of the Summit was to inform attendees about how to maximize each exhibitor’s presence, save money on Show expenses, demonstrate how social media can extend any exhibitor’s marketing reach and increase traffic—and sales—at every booth. The SEMA Board of Directors, the SEMA Show committee and the association staff committed themselves to innovation and improvement for each aspect of the SEMA Show, ensuring that every exhibitor’s investment delivers the greatest possible value. If you weren’t able to attend, here are just a couple of the programs we highlighted to help exhibitors get ready for the 2010 SEMA Show:

Exhibitor and Buyer Matchmaking: Eligible exhibitors can effectively and efficiently connect with buyers before, during and after the SEMA Show through the use of an online Matchmaking service. The program makes it easy to identify prospective business partners and allows both buyers and sellers to communicate with one another while maintaining complete confidentiality. All registered personnel for eligible exhibiting companies may take part in the Matchmaking service. For complete details, contact Alan Dicker via e-mail or by phone at 909/978-6722.

New Products Showcase: Placing a new product in the Showcase at the SEMA Show is almost like exhibiting at a second booth. Buyers and media search the new-product entries for items that they will highlight during the coming year. Electronic scanners that are provided to each buyer and media attendee have made it even simpler for them to gather information about exhibitor products—including a high-resolution photo and company contact information—and every item displayed in the New Products Showcase receives continuing coverage in SEMA News magazine as well as on a digital archive website, where media download information and images throughout the year.

Enthusiast Opinions and Social Media: The Enthusiast Opinion Leader Research Project that was introduced at the 2009 SEMA Show will be expanded at the 2010 event. Through the program, the nation’s most active and influential automotive enthusiasts help industry professionals identify future trends by providing firsthand feedback on the products and vehicles debuting at the SEMA Show.

We were able to provide exhibitors and attendees with immediate and in-depth feedback about their preferences, attitudes and outlook toward our industry and its products using the program in 2009. In addition to completing surveys, the participants used social media, such as Twitter, Facebook, Flickr and YouTube, to share their feedback on products, vehicles and trends from the Show. To learn more about the SEMA Show Enthusiast Opinion Leader Research Project, contact Megan McKernan at meganm@sema.org.

The SEMA Show Exhibitor Summit will be held again in advance of the 2011 SEMA Show, and I encourage every member of the association to attend. Through the programs outlined above and the dozens of others delivered at the Show, the greatest opportunities for building business lie ahead. The next step is to ensure that your company forges its plans to exhibit in 2010 and build its industry awareness. While we are still months away from SEMA Show week—November 2–5 this year—the advance exhibitor registrations are running well ahead of last year’s figures and are surpassing even the 2008 trends. Be sure that your company is there to capitalize on the surge.

—Christopher J. Kersting, CAE
President and CEO, SEMA

SEMA Secures U.S. Senate Resolution Designating July 9 as “Collector Car Appreciation Day”

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

Lawmakers Acknowledge Importance of Collection and Restoration of Historic and Classic Cars

The United States Senate passed Senate Resolution 513 (S. Res. 513) at the request of the SEMA and the
Automotive Restoration Market Organization (ARMO), designating July 9, 2010, as Collector Car Appreciation Day. The resolution was the result of an effort undertaken by ARMO as a means to raise awareness of the vital role automotive restoration and collection plays in American society.

S. Res. 513 was sponsored by Congressional Automotive Performance and Motorsports Caucus members Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC). Senators Tester and Burr have been strong advocates for the automotive hobby in Washington, and S. Res. 513 reaffirms their understanding of the cultural importance of collector cars. The caucus is an informal, non-partisan group that pays tribute to America’s ever-growing love affair with the car and motorsports. The caucus recognizes the integral role collector cars have played in fostering our nation’s appreciation for motorsports.

The resolution was the result of an effort undertaken by SEMA and its councils as a means to raise awareness of the vital role automotive restoration and collection plays in American society. Restoration businesses help to save our nation’s heritage while providing well-paying, high-skill jobs nationwide.

SEMA Vice President of Government Affairs Steve McDonald said, “We greatly appreciate the U.S. Senate’s recognition of the important role classic car restoration serves in our country. As Americans gather at car cruises and other events in conjunction with Collector Car Appreciation Day on July 9, these vital contributions will be honored and preserved.”

In recognition of the day, collectors and enthusiasts will be hosting events across the country. “Individuals, car clubs and businesses affiliated with ARMO are proud to be recognized as leaders in today’s economy,” said Jim Barber, ARMO chairman. “Car cruises, club gatherings and other educational events will be scheduled for July 9 nationwide. ARMO is looking forward to assisting with these events and is appreciative of this special acknowledgment by the Senate.”

Dennis Overholser, chairman of SEMA’s Hot Rod Industry Alliance (HRIA) said that HRIA’s commitment to preserving and promoting the automotive restoration industry through its projects and education programs is well represented by the resolution. “We are pleased that our elected officials have acknowledged our positive presence in local communities,” he said.

“I look forward to working with other business owners, collectors and enthusiasts to make the inaugural Collector Car Appreciation Day a success nationwide.”

A variety of events are currently being scheduled to commemorate America’s time-tested love affair with the automobile as part of Collector Car Appreciation Day. For a listing of events, please contact Jim Skelly, SEMA council director, at 909/978-6690 or jimsk@sema.org.

SEMA Secures U.S. Senate Resolution Designating July 9 as “Collector Car Appreciation Day”

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

Lawmakers Acknowledge Importance of Collection and Restoration of Historic and Classic Cars

The 2010 SEMA Installation Banquet & Gala Fundraiser

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

Leadership Days Celebrate the Spirit of the Industry


	The Pinewood Drag Races feature miniature race cars built by children from Childhelp and Victory Junction Gang Camp and then sponsored by participants through their donations to the charities.

It’s almost that time of the year again when SEMA recognizes the efforts of its Board of Directors at the SEMA Installation Banquet & Gala Fundraiser. As the outgoing Board members are honored for their service, the newly elected directors are presented and welcomed by SEMA members. The event, to be held Friday, July 23, 2010, at the Pasadena Convention Center in Pasadena, California, is the culmination of SEMA Leadership Days—three days filled with activities that celebrate the spirit of the industry and its members.

Pinewood Drag Races

The Pinewood Drag Races—where miniature race cars are built for the stock class by children from Childhelp and Victory Junction Gang Camp and then sponsored by participants through their donations to the charities—are one of several SEMA summer fundraising events, which also include the Show ’N Shine car show and the Installation Banquet & Gala Fundraiser. Participants who sponsor a child’s car will be designated as the team owner and race under the child’s name. Proceeds from the activities benefit Childhelp and Victory Junction Gang Camp charities. Childhelp is an organization that assists abused and neglected children and Victory Junction Gang Camp provides life-changing camping experiences to disabled and chronically ill children.

Participants can also enter their own derby cars. The drag races will take place from 9:00 a.m.–4:00 p.m. and feature three classes: stock, modified and unlimited. The finals will take place shortly before the banquet begins. Enter the race here.

The race will also feature an auction of pinewood cars painted by the kids from the charities to resemble the cars of their favorite NASCAR, IRL or NHRA drivers. Each derby car will be autographed by both the child and driver, providing an exclusive item for auction. “The Starting Lineup” auction will take place online at www.sema.org and at the Installation Banquet & Gala Fundraiser.

“This is our fourth year of SEMA Cares benefitting the kids of Childhelp and Victory Junction Gang Camp as the industry honors SEMA Board members and new SEMA Hall of Fame inductees,” said Joel Ayres, SEMA Cares Committee chairman. “This would not be possible without the generosity of SEMA members volunteering their time, finances and talent. This will be our third year for the Pinewood drag races and our second year for the SEMA Show ’N Shine car show. Last year, we raised more than $170,000 thanks to the generosity of WD-40 and many other SEMA companies and individuals.”

Recognizing the SEMA Board of Directors

The Installation Banquet & Gala Fundraiser recognizes the dedicated service of the SEMA Board of Directors—a wholly volunteer group of talented individuals who are elected by the membership to lead the association in its efforts. As the outgoing directors are thanked, those who have been newly elected to serve the association are welcomed.

The 2010 SEMA Hall of Fame inductees—Richard “Dick” McMullen of McMullen Advertising, Chuck Schwartz of ConvExx and Van Woodell of Weathers Auto Supply—will also be celebrated at the gala. The inductees will be honored for their dedication, service and devotion to their businesses and the industry.

Chip Foose Returns


	Chip Foose, award-winning automotive designer and fabricator and star of TLC’s “Overhaulin’,” will return as grand marshal of the SEMA Show ’N Shine car show.

Chip Foose, award-winning automotive designer and fabricator and star of TLC’s “Overhaulin’,” will return as grand marshal of the second-annual SEMA Show ’N Shine public car show on Saturday, July 24, from 10:00 a.m.–4:00 p.m. at the Pasadena Convention Center.

Held in connection with the SEMA Installation Banquet & Gala Fundraiser and the SEMA Pinewood Drag Races, the Show ‘N Shine car show will draw some of the best local enthusiast cars, trucks and classics, with all proceeds benefiting children’s charities Childhelp and Victory Junction. More than 200 vehicles packed the Pasadena Convention Center last year.

Foose, a California native and an integral part of its car culture for the past decade, began working for his father’s automotive company as a boy and, at age 31, became the youngest member inducted into the Hot Rod Hall of Fame in 1997. He established his company, Foose Design, a year later.

“I was thrilled to be a part of the inaugural SEMA Show ‘N Shine last year and am even more excited to return for 2010,” Foose said. “SEMA is an important organization for car enthusiasts and industry people like myself, and I’m proud to take part and work in supporting children’s charities through this event.”

Foose’s design talent will be displayed at the show through his personal vehicles and those he’s worked on, including a ’59 Bel Air, among others. Last year, Foose brought a ’56 Ford F-100 pickup, the ’02 Ford T-Bird “Speedbird” that starred in “Rides,” and his Foose Coupe.

“It’s fantastic to have Chip Foose back again this year,” Ayres said. “Last year, I watched as Chip paused from an interview to draw a car on the T-shirt of one of the children from Childhelp. The young boy later exclaimed it was the best day of his life. Chip’s celebrity status was a major reason for the success of our inaugural show, and we were pleased to hear his generous offer to once again help the children of Childhelp and Victory Junction Gang Camp.”

According to Show ’N Shine organizer Mike Spagnola of Street Scene Equipment, Foose is an industry icon, one that any automotive enthusiast will recognize. “He’s one of the most down-to-earth automotive celebrities I’ve ever met, and we’re thrilled that he’s accepted an invitation to join us once again.”

Street Performance Council Business Technology Conference


	The Street Performance Council (SPC) Business Technology Conference, on July 23, 2010, at the Pasadena Convention Center in Pasadena, California, will feature keynote speakers covering topics focused on the newest trends and strategies for conducting business in the digital age.

Both Show ’N Shine and the Pinewood Drag Races are part of the 2010 SEMA Leadership Days. Other activities include the Street Performance Council (SPC) Business Technology Conference, to be held July 23, 2010, at the Pasadena Convention Center from 9:00 a.m.–5:00 p.m. Automotive specialty-equipment market industry leaders and digital technology experts will convene for the day-long conference, which will include panel discussions and keynote speakers covering topics focused on the newest trends and strategies for conducting business in the digital age.

“Technology has revolutionized how business is conducted, and our member companies are having to change the way they operate,” said Tom Myroniak, SEMA vice president of marketing and member services. “This conference will help participants understand and address the potential opportunities and challenges associated with doing business with new media.”

Developed by the Street Performance Council, the event has become a premier business development forum that gives participants a competitive advantage through insight on and implementation of effective digital and social media strategies. Addressing the most current challenges and tools, attendees will leave with an understanding of the business opportunities that exist with new media. They will also learn about proven strategies and best practices from experts in the fields of digital marketing, social media, business development and eCommerce.

The sessions will include everything from market research in the digital age and reaching customers on forums/blogs to social media for your business and getting people to read your e-mails.

The 2010 SEMA Leadership Days will include individual and collective council meetings, Board of Directors’ functions and town hall meeting and the annual Business Technology Conference. For complete details, visit here. For more information about the Pinewood Drag Race or any of the other activities that will be held in conjunction with the SEMA Installation Banquet & Gala Fundraiser, contact Lisa Moreno at 909/978-6684 or via e-mail at lisam@sema.org.

TV Tommy and the Snake

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

By Drew Hardin

Photo Courtesy Source Interlink Media Archives

Don “The Snake” Prudhomme announced his retirement in January, closing the book on a stellar drag-racing career that spanned nearly five decades.

In his 32 seasons as a driver, Prudhomme earned four consecutive Funny Car championships, 49 Top Fuel victories and two nearly undefeated seasons with his U.S. Army-sponsored Monza Funny Cars in 1975 and 1976. After getting out from behind the wheel in 1994, Prudhomme went on to spend 15 years as a race team owner, bringing his total championship tally to six and his national event win count to 112.

Harder to quantify in exact numbers is the impact Prudhomme had on drag racing as a business when he and Tom McEwen inked a then-groundbreaking sponsorship deal with Mattel in 1970. Not only did they pave the way for countless cross-promotional marketing and sponsorship opportunities to come, but their “Snake vs. Mongoose” match races generated tremendous excitement among racing fans. Plus, thousands of kids were introduced to the sport thanks to the HotWheels diecast versions of Prudhomme’s and McEwen’s Mopar Funny Cars.

All of this was ahead of Prudhomme when this photo was taken in 1961. Hot Rod magazine was writing a profile of “TV” Tommy Ivo (in the bow tie) and his monstrous four-engine dragster, and Petersen Publishing Company photographer Eric Rickman shot Ivo and Prudhomme on the set of Ivo’s television show, “Margie.” At the time, Prudhomme had put a successful car-painting career on hold to tour with Ivo as he campaigned this and other dragsters around the country.

It wouldn’t be long, though, before Prudhomme struck out on his own. Driving a dragster he bought from Ivo, he earned his first big win at the Bakersfield Top Fuel & Gas Meet in 1962.

I-CAR to Offer Hands-On Demonstrations at the 2010 SEMA Show

Thu, 07/01/2010 - 11:20

SEMA News - July 2010


	I-Car will exhibit at the SEMA Show in 2010 for the first time and will provide several hands-on technical demonstrations on the Show floor.

I-CAR to Offer Hands-On Demonstrations at the 2010 SEMA Show

I-CAR, the Inter-Industry Conference on Auto Repair, will exhibit at the 2010 SEMA Show, marking the first time that the nonprofit training organization has appeared at the Show as an exhibitor.

In addition to participating as an exhibitor, I-CAR will provide several hands-on technical demonstrations on the Show floor designed to provide attendees with information about some of the most current issues in vehicle technology and important considerations for collision repair.

“I-CAR is pleased to be part of the 2010 SEMA Show and reach out to this audience with information about collision repair,” said John Edelen, I-CAR president and CEO.

“With the rapid rate of change in vehicle technology and design, the need to stay current on repair processes is more important than ever. For us, the SEMA audience represents individuals who are keenly aware of emerging technology in the automotive industry, and I-CAR is committed to providing the most current collision-repair training opportunities that will meet their needs.”

Oklahoma High School Students Take Top Engine-Builder Title


	Team MSD–Eastern Oklahoma County Tech Center from Choctaw, Oklahoma, took first place in the “Hot Rodders of Tomorrow Engine Challenge” Division 4 Championship in May.

Painless Performance held its first “Hot Rodders of Tomorrow Engine Challenge” Division 4 Championship in May at the Tarrant County College in Fort Worth, Texas. Team MSD–Eastern Oklahoma County Tech Center from Choctaw, Oklahoma, took first place with a time of 60 minutes and 15 seconds.

A total of eight high school auto tech teams participated. The teams are made up of invited auto technology classes from local high schools. Each team consists of five students and the instructor/coach. The individual schools set standards and guidelines for involvement.

The event itself resembles the teardown between rounds at a drag race. The engines are identically prepared small-block Chevys, and students must properly disassemble the engine using only hand tools, utilizing proper detorque and disassembly procedures. The teams then reassemble the engines once again with correct assembly procedures and torque specs. The team with the fastest time, including penalty minutes, wins.

Team MSD–Eastern Oklahoma County Tech Center will represent Division 4 at the national championship, dubbed “Showdown at SEMA,” at the 2010 SEMA Show. It will compete against Division 2 winner (Team ARP) East Ridge High School from Chattanooga, Tennessee; Division 3 winner (Team PRW) Fremd High School from Palatine, Illinois; Division 7 winner (Team Edelbrock) North Orange County ROP from Anaheim, California; Division 8 winner (Lane Automotive Car Show); plus a wildcard team (the best second-place team nationwide). The current wildcard is from Division 7, (Team Autometer) Loara High School from Anaheim, California.

Exhibitors Reaffirm Value of the SEMA Show as Industry Rebounds


	Many exhibitors have committed to returning to the 2010 SEMA Show after sitting out last year, mostly due to a poor economy.

With reports circulating that the economy may be on the rebound, many exhibitors are returning to the 2010 SEMA Show after sitting out last year. The recession played an overwhelmingly large role in reasons why these companies were absent in 2009.

The high-profile exhibitors returning this year include Rancho/Dynomax, Hella Inc., Brembo North America, Superlift Suspension Systems, Exedy Global Parts Corp. and PaceSetter Performance Products. We caught up with representatives from some of the returning companies, and this is what they had to say about the value of exhibiting at the SEMA Show and why they are returning after sitting out in 2009:

“Our reason for sitting out of the 2009 SEMA Show was purely economical. The 2010 Show will be our 20th anniversary, and SEMA has been a great Show for Auburn Gear. It gives us the opportunity to display new products, network within the industry, meet new potential warehouse distributors and visit with a number of distributors that have supported Auburn Gear for many years. We are seeing a slow turnaround in our aftermarket sales. The industry we all serve is one that is very resilient; our customers have always found a way to buy products for their cars and trucks.”
—Ralph Traycoff
Sales Manager, Auburn Gear Inc.

“Last year, both Tokico and Hitachi Automotive experienced business hardships due to the economic climate. This year, we are returning to the SEMA Show just to stay in the game. Although we’re not out of the woods just yet, our booth will be scaled back a bit but without limiting our products on display.”
—Sam van den Berg
Senior Manager of Information Technology and Trade Show Committee, HITACHI Automotive Products Inc. (USA)

“Our thought process in regards to attending the SEMA Show has always been weighted more toward the benefit from attending rather than the economic conditions. I think that, regardless of the state of the economy, the SEMA Show is the best avenue to show new products, meet with existing customers, find prospective customers and learn more about your competitors. Our goal at the 2010 SEMA Show is to showcase new products, which is why we are attending. The additional benefit this year is that we see business is on an upturn, so we feel attendance will be great and attitudes will be positive.”
—Randy Malowski
Director of Sales & Marketing, Fia Inc.

“We sat out last year for a few different reasons: 1) We had a pessimistic view of the market; 2) we were developing new products, but they were not ready yet; and 3) we were focused on other projects. We decided to come back this year because we were pleased to see the high level of participants. We do see economic progress going forward this year.”
—PJ Harvey
President, PJH Brands

“We decided to participate in the SEMA Show this year because we believe there will be a significant economic improvement worldwide in the coming years, especially in the automotive industry, and people will start to spend their money again more freely.”
—Rungarun Bunvitaya
CS Section Manager, Maxliner

“Last year, Eastwood did not attend the SEMA Show simply because the economy was down and we were looking for ways to reduce expenses and also thought Show attendance would be down. This year, Eastwood will attend the Show because business has been picking up, and we are looking to expand our business-to-business sales. There has been a lot of interest by other retailers looking to expand their product lines. The Show gives us exposure and an opportunity to meet with retailers, both domestic and international, who are looking to add new products to their existing lines.”
—Steve Hurter
Inside Sales Manager, Eastwood Company

“The SEMA Show really seems to draw more of the buyers, WDs and bigger jobbers. Coming up on our second quarter, we are seeing an increase in sales to WDs and jobbers. It appears consumers are starting to feel better about the economy, which leads them to invest more in the care of their vehicles.”
—Merrick Browne
CEO, Forever Car Care Products

The 2010 SEMA Show is set for November 2–5, in Las Vegas. More information on the 2010 SEMA Show is available here.

Fast Facts


	Gavin Monn

Gavin Monn was appointed president and CEO of BOGE America Inc. In his new role, Monn is responsible for leading, managing and developing North American business for BOGE. He previously spent nearly two decades working within the compressed-air industry for an international manufacturer and gained extensive experience on three continents, managing and developing both sales and aftermarket businesses. BOGE America Inc., Powder Spring, GA; 770/874-1570.

JATO Dynamics hired David Hirst to the new position of global marketing director. Hirst will sit on the board of directors and take on full responsibility for managing marketing communications, product development, business development, strategic solutions and customer services. He joins JATO from Capgemini UK PLC, a subsidiary of the global Capgemini Group, where he held the position of marketing director for its United Kingdom consulting and technology services businesses.

Granville Dennison has joined the Truck Accessories Group as national fleet and commercial sales manager. Dennison previously served in sales and executive management with Sterling Corp. and Fontaine Truck. Truck Accessories Group also appointed Bob Hill sales manager for Truck Accessories Group Midwest. Hill’s career in sales and operational management includes his previous position with marine retailing giant Marinemax Inc. of Clearwater, Florida. Hill also held key sales management positions with Bombardier Recreational Products and the Kubota Corp. Truck Accessories Group, Elkhart, IN; 574/522-5337.

Philips Automotive Lighting North America, a division of Royal Philips Electronics, named Dennis Samfilippo general manager in March, replacing David Davoudi, who was appointed to head up Philips Consumer Luminaries North America, a newly established business unit of Royal Philips Electronics, based in Elgin, Illinois. Samfilippo has more than 20 years of automotive and distribution industry experience in various positions. He will be based out of Philips Automotive Lighting North America corporate headquarters in Farmington Hills, Michigan.


	*Jennifer Walter*

Cie Studios appointed Jennifer Walter vice president of production. Based in Baltimore, Maryland, Walter heads the company’s Baltimore and Long Beach, California, offices. She has been with Cie Studios for more than 10 years and has helped develop next-generation interactive solutions for Scion, Pioneer Electronics, Nitto Tire, DreamWorks and more. Cie Studios, Long Beach, CA; 562/285-0505.

After months of testing and tweaking, driver Gary White and the team at Titan Motorsports set out on a quest to join the exclusive Mickey Thompson 3 Second Club with its Scion tC. After two passes at the ADRL Georgia Drags in May were hampered by technical letdowns, the team received the solid run it was hoping for on its final run and saw the scoreboard light up with a time of 3.996 seconds at 182.45 mph, officially landing Team Titan in the coveted Mickey Thompson 3 Second Club. Not only did the team solidify its position as running one of the fastest imports in the country, but it was also the first ever to make a 3-second pass on 10.5-inch tires. Titan Motorsports, Orlando, FL; 407/277-8423.

SpeedFactory was selected to be the exclusive distributor for BBS’s new flow-formed CH-R road wheel for all Chrysler and Dodge applications. The prototype CH-R road wheel for Chrysler/Dodge applications was first introduced to the U.S. market when it appeared in Mopar Alley at the 2009 SEMA Show on SpeedFactory’s 700hp “SF700R” Challenger. BBS of America, Braselton, GA; 770/967-9848.


	Tom Medley

Tom Medley, father of the “Stroker McGurk” hot-rod cartoon, co-founder of the Street Rod Nationals and former publisher of Rod & Custom magazine, will be honored as the “Hot Rod Hero” of the Goodguys 24th West Coast Nationals, August 27–29, at the Pleasanton Fairgrounds in Pleasanton, California. Medley joined Hot Rod magazine on its third issue in 1948 as “humor editor.” He was instrumental in creating Hot Rod’s success, juggling cartooning, photography, how-to articles, advertising sales and design. In the mid-’60s, he took over as publisher of Rod & Custom, steering the book’s editorial direction toward street rods and “vintage tin”—thus ushering in the modern era of street rodding.

Spectre Performance hired Tim Inglee as national sales manager to lead the company’s automotive aftermarket sales efforts across the country. Inglee has worked in the automotive sector for 35 years, selling both hard parts and accessories. His most recent posts include national sales manager for Global Accessories Inc. and vice president of sales for Wolf Automotive. Spectre Performance, Ontario, CA; 909/673-9800.

Comp Cams brought back its Engine Builder Duel for the 2010 Hot Rod Power Tour. Two teams squared-off during the contest to see who could completely assemble and run a small-block Chevy engine in the shortest amount of time. The contest took place at three different locations during the tour: Bowling Green, Kentucky (Tuesday, June 8); Chattanooga, Tennessee (Wednesday, June 9); and Birmingham, Alabama (Thursday, June 10).

Bestop Inc. launched a promotion that will send one lucky authorized dealer to Las Vegas for the 2010 SEMA Show. The package includes airfare for two to Las Vegas, two nights’ accommodation, admission to the 2010 SEMA Show and dinner and a night out with Bestop. All Bestop authorized dealers will be sent a brief survey for their chance to enter and win. The offer is valid through August 30, and the drawing for the winner will be held on September 7. Bestop Inc., Broomfield, CO; 800/845-3567.

Pioneer's Sound Build-Off

Pioneer Electronics (USA) Inc. announced that Cartronics is the winner of the fourth annual Pioneer Sound Build-Off competition. Cartronics’ 2010 Chevy Carmaro prevailed over 11 other retail competitors from across the nation who utilized Pioneer’s high-end Stage 4 car audio components. Cartronics won the grand prize of $10,000 and the title of 2010 Pioneer Sound Build-Off Champion. Pioneer Electronics (USA) Inc., Long Beach, CA;
310/952-2000.

Holley Performance Products announced that its 2010 Holley LS Fest is scheduled for September 10–12 at Beech Bend Raceway Park in Bowling Green, Kentucky. The Holley LS Fest is a celebration of everything and anything powered by the GM LS engine. Activities planned include a drag race, autocross, 0-60-0 speed stop challenge and a show ‘n’ shine. More information on the event, including class rules, online registration and updates, will be posted on www.holleylsfest.com. Holley Performance Products, Bowling Green, KY; 270/782-2900.

The Automotive Aftermarket Industry Association (AAIA) elected Robert Egan, AAP, as chairman of the AAIA Board of Directors for 2010–2011. Egan is vice president for North America global aftermarket of Federal-Mogul, headquartered in Southfield, Michigan. For the past three years, Egan has been heavily involved with AAIA and served on the show committee, board of directors and executive committee. In 2008, he was honored with the Leader of the Year Award from the Automotive Warehouse Distributors Association.

The deadline to register for Standards Testing Laboratories (STL) 2010 Tire Technology seminars at the company’s Massillon, Ohio, headquarters is October 1 for the October 19-21 class. The three-day seminar will feature a technical team of automotive and tire speakers from the engineering, chemistry and engineering mechanics/vehicle dynamics fields. Experts at STL will address topics that will include tire nomenclature, materials, compounding and manufacturing, tire and wheel design and construction, tire testing, evaluation and application. Standards Testing Laboratories, Massillon, OH; 330/833-8548

National Performance Warehouse (NPW) of Miami acquired the wholesale operations of Speed Warehouse of Hayward, California. NPW President/CEO Larry Pacey noted that it was the company’s second acquisition in four years, including the 2008 acquisition of Southern Performance Warehouse in Clearwater, Florida. Speed Warehouse was recognized as SEMA Warehouse Distributor of the Year in 1985, 2000 and 2005. Former Speed Warehouse President Gary Light retains the operations of Vic Hubbard Auto Supply, the retail and installer segment of the original Speed Warehouse business, which was not part of the deal. Pacey said that his company is also considering further acquisitions. National Performance Warehouse, Miami, FL; 305/953-7270. Speed Warehouse, Hayward, CA; 510/786-3555.

Delta Kits Inc. announced that it broke a 26-year sales record for March. The company attributes the 11% increase over the previous sales record to two proprietary Delta Kits products: the MagniBond resin and HLPRO302 headlight restoration system. Delta Kits, Eugene, OR; 541/345-8554.

Federated Auto Parts presented Outstanding Supplier Support Awards to its supplier partners who demonstrated excellent performance in each of five categories in 2009. The awards were presented on April 16 at the company’s annual meeting held in Tampa, Florida. The recipients were East Penn, Order Fill Vendor of the Year; Standard Motor Products, Education/Training Vendor of the Year; Federal-Mogul, Marketing Vendor of the Year; Affinia, Sales Representation Vendor of the Year; and Dorman, Electronic Catalog Vendor of the Year.

Deeza Chassis Parts recently adopted environmentally friendly packaging for all of its products. The company now ships all of its metal parts in anti-corrosive packages to ensure that they remain rust-free during transportation and storage. The moisture-preventative bags help protect against humidity and salt, contain no nitrates or phosphates and are completely biodegradable.

SEMA Spy Photos

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

Mercedes SLK

When It Hits: While no official release has been announced, rumors point to upcoming appearances at the Paris Auto Show or the Geneva Motor Show for the 2011 Mercedes SLK.

What Priddy Says: Updates include more upright and squared front grille, daytime driving lamps, new door handles, the bigger mirrors “standing” on the door and a standard folding metal roof. Power will come from naturally aspirated and turbocharged V6 engines, and a diesel unit is possible, according to Priddy. A 3.5L V6 twin-turbo-making 470hp version could also make its way into an AMG version.

Honda Odyssey

When It Hits: Priddy says to watch for the new Odyssey to debut this coming fall.

What Priddy Says: This shot of an early preproduction Odyssey was caught by one of Priddy’s readers on his iPhone. Judging by the current look, Honda is keeping the production version very close to the concept, which was on the carpet earlier this year at the 2010 Chicago Auto Show.

Audi RS3

When It Hits: This early mule of Audi’s future pocket-rocket was photographed testing at the Nürburgring. No U.S. release date has been announced.

What Priddy Says: While this test car is wearing an S3 body, Priddy says that the air intakes on either side of the grille appear to be modified and slightly larger. Power should come from Audi’s 2.5L five-cylinder turbocharged engine. Good for 340 hp and 331 lb.-ft. of torque in the TT-RS, Priddy expects the 2.5L to be rated nearly the same in the RS3.

Lexus LFA

When It Hits: Whether or not the LFA will go hybrid remains a mystery. The release date does as well.

What Priddy Says: When the Lexus LFA debuted at the 2009 Tokyo Motor Show with a 4.8L V10, it silenced the rumors that this übercar might be a hybrid. However, while the guise on the prototype is similar to what was spotted two or three years ago, the piece of camo near the A-pillar is intriguing. The camo flap could be some kind of decoy, or it just might be a charging port, not unlike what GM’s plug-in test mules use, Priddy says.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

Accessory Sales at China’s Dealerships

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

By Alysha Webb

Huge Room for Growth


	As margins on new-car sales continue to shrink dealerships are looking for new sources of income. So the future could be bright for the sale at 4S dealerships of parts that enhance appearance, comfort, or performance. Shanghai-based TNS Research International analysis reveals consumers are shifting to more “fun-based” emotional needs for their vehicles rather than the basic transportation, “family caring” or “belonging” needs of just a few years ago.

At the end of 2009, there were more than 13,000 franchised automotive dealers in China. Many of them are so-called 4S dealerships, which indicates that the dealer not only sells new cars but also services vehicles as well as sells spare parts. While an accurate count is not available, two-thirds or more of those 13,000 are likely 4S dealers.

As margins on new-car sales continue to shrink, dealerships are looking for new sources of income, so the future could be bright for the sale at 4S dealerships of parts that enhance appearance, comfort or performance. Not all 4S dealerships in China are allowed to sell non-OE brand accessories, though some ignore the ban. In any case, accessory sales of any kind are still a tiny portion of any Chinese dealership’s revenue stream.

According to a 2009 J.D. Power and Associates study, new-vehicle sales accounted for 56% of dealer revenue. Used-vehicle sales accounted for 23%. Service contributed 23%, and spare parts sales made up 10%. Accessory sales were part of the “Other” category, which contributed only 2% to dealership revenue.

Clearly, there is much room for growth in accessory sales through dealerships in China. First, however, more OEs must allow the sale of aftermarket brands in their dealerships. Just as important, demand must be created by educating Chinese consumers about customization opportunities.

Margins on new-car sales are being squeezed in China’s intensely competitive market. New-car sales margins in China ranged from 2.6% for U.S.-brand vehicles to 4.4% for local brands, according to J.D. Power. Those margins are likely to shrink in coming years as China’s more than 90 brands fight for market share. Dealers are being pushed by the OEs to develop new sources of revenue and may themselves begin to promote high-margin accessory sales as a source of revenue.

To be sure, however, the market for accessories that enhance performance, comfort or appearance is still only a tiny portion of China’s total accessory market. And the demand for such accessories is still small.

“Our best feeling remains that less than 10% of the car owners in China would conduct some kind of tuning or customized equipment upgrade to their vehicle,” said Eric Tai, a former project manager in the automotive sector for TNS Research International in Shanghai.

The total accessories market in China is hard to quantify because of extreme fragmentation. But some estimates put it at more than $14.6 billion annually. All agree that it is growing, spurred by the maturation of China’s automotive market. TNS studies show that consumers are shifting to more fun-based emotional needs for their vehicles rather than the basic transportation, “family caring” or “belonging” needs of just a few years ago, Tai said. As that change occurs, consumers will focus more on vehicle performance and will be more willing to invest in special kits, he said.

Dealerships are well-positioned to take advantage of that growth in demand because dealerships are still the primary source for aftermarket service needs, said Tai. Chinese consumers are wary of buying spare parts from non-authorized sources because of the high number of illegitimate parts on the market, he said.

Some dealerships in China are already selling non-OE brand accessories, whether it is allowed or not. And it is permitted in some parts of the country. A dealer in Dongguan, in south China’s Guangdong province, said that her dealership is permitted to sell both OE and non-OE parts. The non-OE parts are used primarily as gifts to customers because they are so much cheaper than the OE parts, she added.

Some very large dealership groups have set up consolidated accessory procurement offices, and they actively search for non-OE brand products, especially those related to comfort and appearance, said Teng Yong at consultancy A.T. Kearney in Shanghai. Quality and novelty are the two most important selection criteria, he said.

Another factor pointing to a bright future for non-OE brand parts at China’s dealerships is the growth of the second-hand car market. Currently, about three new cars are sold for every used car because China’s passenger car market is so young. In the United States, the opposite is true. But China’s light-vehicle sales grew to 12.96 million units in 2009, a 48% increase compared to the previous year, according to J.D. Power. The light-vehicle market is forecast to grow by close to 10% for the next decade, so the used-car market is bound to grow, too. That will likely help accessory sales, industry experts said. A larger used-car market will offer more opportunities for accessory sales, which the manufacturer has less control over, according to Dale Jones, vice president of Asia Pacific regional accounts at Urban Science.

Education is needed to provide a boost to accessory sales in dealerships, said Tai. The thing that is really limiting market growth is consumer mentality and their lack of knowledge about tuning and customization, he said.

“Parts suppliers should remain in China, as it does have great market potential,” said Tai. “I have no doubt this market will keep growing due to the sheer size of China’s new-car owners.”

Law and Order

Thu, 07/01/2010 - 11:20

SEMA News - July 2010

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 UPDATE

Prince Edward Island

Nitrous Oxide: The province of Prince Edward Island has introduced a bill to permit the installation of nitrous-oxide systems as long as the feed lines are disconnected or the canisters are removed while the vehicle is being operated on a public road. The bill largely mirrors SEMA-model legislation to better protect public road safety while ensuring legitimate off-road uses of nitrous-oxide systems.

STATE UPDATE

California

Specially Constructed Vehicles: The California State Assembly approved legislation to increase the registration limit for exempted specially constructed vehicle registrations from 500 to 750 vehicles per year. The Senate will now consider the bill, where it is likely to have a much tougher journey. Current law provides for emissions-system certification and a model-year designation for specially constructed vehicles. Under the law, vehicle owners choose whether a smog-test referee certifies the engine model year or the vehicle model year. To determine model year, inspectors compare the vehicle to those from the era that the vehicle most closely resembles. If there is no close match, it is classified as a ’60 vehicle. Only those emissions controls applicable to the model year and that can be reasonably accommodated by the vehicle are required. The Department of Motor Vehicles provides a new registration to the first 500 specially constructed vehicles per year that meet the criteria.

Small Business: SEMA-member Egge Machine Co. was honored in a ceremony recognizing the contributions of small businesses to the state of California. Egge was chosen to receive the recognition by State Assemblymember Tony Mendoza. Sponsored by the California Small Business Association, “A Salute to Small Business Day” took place at the Sacramento Convention Center on May 25. Founded in 1915, Egge manufactures internal engine components for antique, classic and collector cars as well as engine kits and performance products for domestic cars and trucks built from 1900–1980. Based in Santa Fe Springs, California, Egge supplies the needs of automotive enthusiasts nationwide, providing rare parts for vehicles that have long been out of production.

Louisiana

Inspection Exemption: A SEMA-supported bill to exempt antique vehicles 25 years old and older from the motor-vehicle inspection requirements was passed by the Louisiana House. The bill now moves to the Senate for consideration. Current law only exempts vehicles 40 years old and older. The bill makes the inspection exemption consistent with current state law defining an antique vehicle as a vehicle that is 25 years old or older and used primarily for shows, parades, tours and other special uses and not for general transportation. Vehicles in Louisiana are subject to an annual vehicle inspection, including a safety-equipment inspection and an additional emissions inspection for vehicles registered in selected parishes. The emissions inspection consists of a visual anti-tampering check and a gas-cap integrity check. Vehicles manufactured in 1995 and later are also subject to an on-board diagnostic (OBD-II) emissions check.

New York

Historic Vehicles: SEMA is backing legislation in the New York Assembly to provide that historical-vehicle owners only pay a one-time registration fee of $100 upon initial registration. The bill has been referred to the New York Assembly Transportation Committee for consideration. The reduced registration fee would be available to owners of historical vehicles owned and operated as an exhibition piece or collector’s item and used for club activities, exhibits, tours, parades, occasional transportation and similar uses. Under current New York law, a historical motor vehicle is either a vehicle manufactured more than 25 years ago or one that has unique characteristics and is determined to be of historical, classic or exhibition value. The $100 one-time fee would replace the current annual fee of $28.75.

North Carolina

Street Rods/Custom Vehicles: Jim Barber of SEMA member Classic Automotive Restoration Specialists Inc. has been appointed by the North Carolina DMV to serve on the vehicle classification review committee. The committee was established pursuant to the enactment into law of SEMA-model legislation to create a vehicle registration classification for street rods, replicas and custom vehicles. The new law retains the key components of the SEMA-model bill while relieving vehicle owners of unfair title branding and inspection concerns. The measure provides specific registration and titling classes for street rods and replicas; allows for the use of non-original materials; creates a titling and registration criterion that assigns replica vehicles the same model-year designation as the production vehicle intended to be replicated; and requires that the title of a replica vehicle clearly indicates that the vehicle is a replica and not an original. The committee will review grievances filed by vehicle owners regarding the DMV’s determination of the appropriate vehicle classification for a specially constructed vehicle.

Vermont

Inoperable Vehicles: Legislation to provide an exemption to automotive hobbyists from the restrictions on salvage yards has been approved by the Vermont Legislature. The bill seeks to increase the regulation of salvage yards and automobile graveyards in the state but includes a provision stipulating that hobbyists are not to be confused with the owners of automobile graveyards. The bill defines an “automobile hobbyist” as a person not primarily engaged in the sale of vehicles and parts or dismantling junk vehicles. Further, the definition of “automobile graveyard” does not include an area used by an automobile hobbyist for storage and restoration purposes, provided their activities comply with federal, state and municipal law. The bill now goes to the governor for his signature and enactment
into law.

FEDERAL UPDATE

New Auto Safety Rules: Legislation has been introduced in Congress to strengthen the authority of the National Highway Traffic Safety Administration (NHTSA) and to mandate new auto safety standards. A House subcommittee held a hearing on the bill, which was introduced in response to recent recalls of Toyota vehicles. The legislation would require NHTSA to establish new motor vehicle safety standards related to electronics and unintended accelerations, such as a brake-override requirement. Event data recorders (“black boxes”) would eventually be required on all new vehicles. The maximum amount that could be imposed in civil penalties would be increased. NHTSA would also have more money to fund agency programs, including a new department dedicated to vehicle electronics and emerging technologies.

Small-Business Health Care Tax Credit: Companies that purchase health care insurance and have 25 or fewer employees may claim a tax credit. The credit varies according to size and average wages. The maximum credit of 35% of premiums paid in 2010 is available to small-business employers with 10 or fewer workers who have an average salary of $25,000. The rate will increase to 50% in 2014. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and with the equivalent of between 10 and 25 fulltime workers. The credit took effect on January 1, 2010, and is designed to help small employers that mainly employ low- and moderate-income workers. Firms can claim the credit for 2010 through 2013 and for any two years after that.

Credit Card Swipe Fees: SEMA and other trade associations asked Congress to limit the amount credit card companies can charge merchants when processing payments. Under the current system, the merchant pays a transaction fee every time a card is used, whether for credit or debit. The “swipe” fees can average 2% to 4% for businesses that accept debit/credit cards and amounted to $63 billion in 2008. In a joint letter to the U.S. Senate, the trade associations asked that swipe fee reform be included in a comprehensive financial regulatory reform bill. The trade associations specifically asked that debit card transactions be treated the same as paper checks. The Federal Reserve requires all banks to clear paper checks at par (no exchange fees). The trade associations also urged lawmakers to give the Federal Trade Commission authority to regulate credit card company practices that currently allow the company to forbid merchants from setting credit-card minimums (example: must be over $10), offering discounts for cash payments, passing along the swipe fees to the consumers and similar practices.