SEMA News - February 2010

	SEMA Chairman Rick Rollins (left) and PWA President Donnie Eatherly (right) recognize PWA Persons of the Year Chris Thomson (second from left) and Adrian Murray.

Every year, the Performance Warehouse Association (PWA) announces its Manufacturer and Person of the Year awards at the SEMA Show. This year, PWA selected a duo in each category, naming Airaid Filter Company’s Chris Thomson and Adrian Murray of Painless Performance its Persons of the Year. PWA also recognized Airaid and K&N Engineering as its Manufacturers of the Year. The award winners shared their gratitude with the industry that helped them achieve their recognition.

“K&N is honored to have been voted Manufacturer of the Year by the members of the Performance Warehouse Association,” said Steve Rogers, president and CEO of K&N Engineering. “There are many great manufacturers in our industry, and it is a great accomplishment to be identified as one of the best. The last few years have been challenging for our industry, and we have tried to be a good supplier and listen to our customers. We’ve continued to expand our product line while making improvements in quality, shipping performance and customer service. K&N has continued to work to generate business for our dealers with one of the most extensive marketing and advertising programs in the industry. In 2009, we made more than 1 million consumer referrals to local K&N brick-and-mortar dealers. This award is the result of the work and dedication of the entire K&N team as well as the support of our suppliers, distributors and retail dealers. We thank PWA for this award.”

Adrian Murray, president of Painless Performance, said that he was “…deeply honored to have been recognized as Person of the Year by the Performance Warehouse Association and also to share this honor with my good friend, Chris Thomson. I am very mindful of the fact that it takes a lot of people in the background doing very great things in order for me to receive this type of recognition. We have a superb team at Painless who never hesitate to go the extra mile and put forth that extra effort to ensure the success of the company; they make my job very easy. To the members of PWA—and indeed to all of our customers and friends—thank you for this honor. I will always strive to live up to the ideals and the principles this award represents.”

Chris Thomson accepted both the Person of the Year award and the Manufacturer of the Year award on behalf of Airaid.

“We’d like to thank the members of PWA for this distinguished Manufacturer of the Year Award,” Thomson said. “During these tough economic times, it is an honor to be recognized with this award. We gladly accept it and take it as a challenge to continue performing at the highest level.”

About his Person of the Year award Thomson added: “Thank you members of the PWA for this true honor. I was proud to be considered alongside my friends Rick Sparks and Adrian Murray, both of whom I admire greatly. I also want to thank my boss and friend John Levitz and everyone at Airaid for their everyday support of my efforts, and most of all, my wife Kathie and daughters Kristin and Emily for their understanding of the passion and time that I put into my job.”

 

SEI Manufacturer Product Library—The One-Stop Info Shop to Close the Sale at the Counter

Join SEMA’s Manufacturer Product Library (MPL) to take advantage of a no-cost resource that will promote your brand and your products.

What Is it? Located at SEMA.org, the MPL is a repository of manufacturers’ marketing, product and training materials. Presented in searchable databases, the MPL will help retailers/resellers become more familiar with your product and brand while giving them the tools they need to close the sale immediately. Examples of marketing materials include product-demonstration videos, warranty information, product images, sales brochures, installation instructions and others.

What’s the Cost? SEMA-member manufacturers can participate in this program at no charge.

What’s the Benefit? Reach a greater number of jobbers, warehouse distributors and enthusiasts through this online product-information program. Reduce your printed material costs by uploading your marketing and support materials to the library. Get the information quickly to the people who need it the most, and help them close sales on your products faster! Contact SEI at 913/851-3355 or SEIinfo@sema.org to get started today.

 

Linda Vaughn: SBN Recognizes First Lady of Motorsports

The SEMA Businesswomen’s Network (SBN) presented a Lifetime Achievement Award to Linda Vaughn, a founding member of the SBN, at the annual SEMA Speed Networking Breakfast—Powered by the SBN, in recognition of Vaughn’s lifelong participation and exceptional achievements within the automotive aftermarket.

Vaughn may well be the most traveled ambassador of motorsports in the United States, visiting more racetracks, race events and race honorariums than anyone in the sport. She is in demand because generations of people—men and women—have searched her out in a crowd, and she has a singular way of bringing focus to a worthwhile product, cause or person. This was never more apparent than during her tour of military bases in Vietnam, when she accompanied Don Garlits and Richard Petty to encourage the troops overseas.

Vaughn began her career as a beauty queen in 1961, and she carried the title of Miss Pontiac the following year. She used her assets—wit, intelligence and a natural curiosity and love of motorsports—to nudge into a mostly male domain and became a valued spokesperson and representative of one of the largest aftermarket companies in the United States. For years, Vaughn was Ms. Hurst Golden Shifter, working side by side with the parent company and the top executives of Mr. Gasket Company to promote one of its most valued brands. She was part beauty and part brains, and in the ’60s, this was a perfect formula for getting attention and paving a road for women to participate in all aspects of the aftermarket. She was successful because of her drive to be a part of this industry in a big way, and she was not content to rest on her laurels as a beauty queen.

Vaughn has endured and changed, but she has always remained a staunch supporter of the vitality of motorsports in all of its forms, and she has been an endearing friend to the people whom she has met along the way. Jim Feeman, director of the International Motorsports Hall of Fame in Talladega, Alabama, once commented, “Lots of people consider Linda to be the First Lady of Racing. She is the only female non-racer who continually gets votes to be inducted into the Motorsports Hall of Fame.”

In 1988, SEMA honored Vaughn’s lifetime achievements with a special citation during its “Salute to the American Automotive Performance & Motorsports Industry” program in Washington, D.C. She is a respected member of the SEMA Hall of Fame and is beloved by many all over the world.

 

Fast Facts

	John Passante

Automotive aftermarket executive, trainer and inspirational speaker John Passante has joined Brenton Productions Inc. as executive vice president. He will continue his role as president of The Organizational Development Group Inc. as he assists Brenton Productions in its production of automotive series for national TV networks. Prior to this appointment, Passante was senior vice president for CarQuest, senior vice president of human resources for Moog Automotive and senior director worldwide human resources for Delphi Products and Service Solutions. Brenton Productions Inc., Swansea, MA; 800/572-7798.

Vortex Splash Guards Technologies Inc., developers and patent holders of what the company says is the world’s first aerodynamic (air routing) mud guards, has recently designed a memorandum of understanding with Papp Plastics to manufacture and distribute to the OEM accounts. Vortex said that, in addition to stealth styling, the technology affords fuel savings and other performance advantages over existing designs. Vortex partnered with Hopkins Manufacturing in 2007 to service the aftermarket. Hopkins has had great success garnering sales through retailers, such as O’Reilly Auto Parts and a recent launch with Pep Boys. Hopkins Manufacturing, Emporia, KS; 620/342-7320.

	Heath Breedlove

Heath Breedlove joined Beck/Arnley as its new vice president of retail and program group sales. In this position, Breedlove calls on and facilitates sales growth with program groups and retailer customers. Prior to joining Beck/Arnley, Breedlove served as regional director of store sales for General Parts Inc., where he managed sales activities for more than 20 CarQuest Auto Parts stores’ corporate sales.

Tire Group International opened a new sales office in Houston, Texas. The new office is headed by Tom Wilbur, who joined the company with more than 12 years of experience in the tire industry.

JATO Dynamics appointed David Di Girolamo business development manager for the retail sector. Before joining JATO, Di Girolamo was instrumental in the development and management of performance improvement programs for dealers and importers globally, including Volkswagen group, Peugeot and Toyota.

Jotto Desk and Snugtop announced a new distribution agreement allowing Snugtop to offer the Jotto-Cargo Slide line of cargo-management products through its dealer network in conjunction with Snugtop products. The agreement fills a distribution gap for Jotto-Cargo Slide on the West Coast while providing new sales opportunities for existing Snugtop dealers. Jotto Desk, Rogers, AR; 479/936-8059. Snugtop, Long Beach, CA; 562/432-5454.

Philips Automotive Lighting North America, a division of Royal Philips Electronics, appointed Dave Illes as its senior sales manager for the North American automotive aftermarket. He will be responsible for all sales channels and customers in the United States, Canada and Mexico. Prior to joining Philips, Illes spent 10 years with Tenneco Inc., working in both Canada and the United States in a variety of sales management and operations roles.

	Rollin Hansen

Rollin Hansen of Auto Tech and Body in Roselle, Illinois, was named the Tech-Net Professional Auto Service/ASE Master Automotive Technician of the Year for 2009. Hansen will receive more than $20,000 worth of prizes, including an all-expense-paid trip for two to the ASE board meeting, where he will be presented with a trophy and a gold ring.

The American International Automobile Dealers Association announced a new affinity partnership with Financial Transaction Services to provide dealer members with exclusive pricing on end-to-end payment processing solutions for credit, debit, electronic benefit transfer, gift card/loyalty, biometric authentication and automated clearinghouse check processing. American International Automobile Dealers Association, Alexandria, VA; 703/519-7800.

Continental Tire and Hoosier Racing Tire announced a strategic alliance that will allow both companies to drive new growth prospects and technologies and have the potential to transform a variety of motorsports platforms. The alliance will consist of Continental and Hoosier partnering for advanced performance solutions and motorsports integration. A team of industry veterans will be the driving force behind the collaborative marketing, product development and implementation process. Both companies will invest substantially into resources for the marketing, business development and delivery of specific products. Continental Tire, Charlotte, NC; 704/583-3900.

	John Hagan

Toyo Tire U.S.A. Corp. hired John Hagan as senior director of sales operations. A 20-year veteran of the tire industry, Hagan will have full responsibility for the management of all Toyo Tire U.S.A. Corp.’s sales operations while reporting directly to the company’s president and CEO, Yasushi Takagi. Hagan’s tire industry experience includes serving as vice president of original-equipment sales for Pirelli Tire. Toyo Tire U.S.A. Corp. also hired Glen D. Watson as sales manager for the region that includes Alabama, Mississippi and Tennessee. Watson previously worked for Toyo Tires from 1996–2001 in regional sales. Most recently, he worked for ABSCO Fireplace & Patio, providing retail support and training and serving as a retail coordinator. Toyo Tire U.S.A. Corp., Cypress, CA; 714/236-2080.

R. L. Polk & Co. has renewed its corporate sponsorship of Global Automotive Aftermarket Symposium (GAAS) for the 2010 event, set for Tuesday, May 18, and Wednesday, May 19, at the Hyatt Regency O’Hare near Chicago. Under the agreement, R. L. Polk & Co. will present its prestigious Polk Inventory Efficiency Awards at GAAS 2010, marking the sixth year for the awards, which recognize and reward outstanding aftermarket companies for process improvements relative to inventory efficiency. R. L. Polk & Co., Southfield, MI; 248/728-7000.

	Phil and Jeremy Gerber

Phil and Jeremy Gerber of the Roadster Shop were presented with the Goodguys Trendsetter award at the 2009 SEMA Show. The award is presented annually to rising young talents in the realm of rod and custom car building. Past recipients of the Goodguys Trendsetter Award include Chip Foose, Troy Trepanier, Alan Johnson, Eric Peratt, Tim Strange, Dave Lane, Zane Cullen, Dean Livermore, Jesse Greening, Troy Ladd and J.F. Launier. Roadster Shop, Mundelein, IL; 847/742-1932.

Wyers Products Group Inc. recently entered into a marketing agreement with Pilot Automotive Inc. of City of Industry, California, to exclusively distribute Trimax Products to selected retailers and automotive chain stores. Pilot Automotive Inc., City of Industry, CA; 626/937-6988.

 

SEMA News - February 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.

 

 

Land Rover LRX

When it Hits: Land Rover’s bold LRX concept is inching closer to production, said Priddy. It will be unveiled next year and begin sales in 2011.

What Priddy Says: Priddy’s network of photographers caught this mule testing at Nürburgring and wearing an LR2 body with a shortened rear end and revised front fascia. Expected to carry the Range Rover badge, the LRX will likely draw power from two engine options: a 3.2L gasoline inline-six and a 2.2L four-cylinder turbodiesel. As previewed by the concept, Land Rover may also offer a hybrid 2.0L turbodiesel. The production model should be taller than the concept, allowing for more headroom, and come in three- and five-door variants.

 

Chevrolet Camaro Convertible

When it Hits: In a late-November press release for the 2011 Buick Regal, GM quietly slipped in a sentence noting that production of the 2012 Chevrolet Camaro convertible would begin in its Oshawa, Ontario, plant in the first quarter of 2011.

What Priddy Says: Priddy said her sources have narrowed the production date down to February 2011. On cue, her shooters captured this drop-top prototype in Michigan, slipping through a gate before dusk. While this is good news for Camaro enthusiasts, the bad news is that they’ll have to wait another 14 months to get one.

 

 

 

 

Mercedes-Benz C-Class

When it Hits: The updated C-Class will go on sale in 2010, just months before the all-new BMW 3 Series and the Audi A4.

What Priddy Says: Changes to Mercedes-Benz’s bestseller include new headlights, a new front bumper and a new bonnet. The rear is expected to feature a new set of lights and some modifications to the bumper. Some engine upgrades will be offered, while the interior should receive minor changes, too.

 

 

 

 

 

Volkswagen Jetta

When it Hits: Production is expected to start in the fourth quarter of 2010, making this updated VW Jetta a 2011 model when it crosses the border.

What Priddy Says: Internally known as NCS—or New Compact Sedan—this updated Jetta will be built on a re-engineered, fifth-generation Jetta platform. Publications have also referred to it as the Jetta VI. While the Jetta name will likely be carried over and assembly will continue to take place at the Volkswagen plant in Puebla, Mexico, the new model will be slightly longer and a bit wider. Volkswagen plans to sell 160,000 units annually, as it hopes to convert some potential Corolla and Civic buyers with the Jetta’s lower base price. Although cost-cutting measures may be obvious as compared to the current Jetta, there is speculation that an AWD option may be offered.

 

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

SEMA News - February 2010 

While the SEMA Show is a trade-only gathering that is not open to the general public, enthusiasts and consumers are able to get a glimpse of what happens at the annual event thanks to the many editors and reporters who attend. SEMA Shows in the past have included more than 2,400 registered media, many representing consumer publications, mainstream magazines and general television programs.

Local media in Las Vegas, Nevada, were out in full force for the 2009 SEMA Show, along with reporters from major daily newspapers. Take a look at just a sampling of the coverage that resulted.

 

Las Vegas Review Journal, November 4, 2009 The photograph taken on the opening day of the Show covered about a third of the business section’s front page and included a caption noting that more than 100,000 people were in town for the convention.
Chicago Tribune, November 8, 2009 Sunday’s “Rides” section featured five of the hottest vehicles at the SEMA Show, including a 2010 Camaro customized by Droptop Customs. The reporter noted that the designer “…beat Chevy to the soft-top, originally slated for 2012 but likely delayed by issues with a supplier.”
The Detroit News, November 12, 2009 Several publications reported on the many Camaros at the 2009 SEMA Show. Here, the Detroit News declared the 2010 Camaro the SEMA Show’s Car of the Year and reported on some of the notable versions that were on display.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMA News - February 2010

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 (Saskatchewan)

Raised Vehicles: The province of Saskatchewan is postponing the adoption of a raised-vehicle policy and will instead participate in the Canadian Council of Motor Transport Administrators (CCMTA) Excessively Raised Vehicle Working Group. The CCMTA convened the working group with a mandate to develop a national best practice for the regulation of raised vehicles. In August 2009, SEMA submitted technical comments to a regulatory proposal issued by Saskatchewan Government Insurance (SGI) to regulate raised vehicles in the province. SGI operates the province’s driver’s licensing and vehicle registration system. SGI regulators claimed that the number of raised vehicles imported into and operating in Saskatchewan had increased, prompting inquiries from the general public, raised-vehicle owners, off-road enthusiasts, vehicle inspection stations and law enforcement with requests to clarify the existing regulations and standards for raised vehicles. Under the proposed policy, all aftermarket raised vehicles operated on Saskatchewan highways would be subject to a raised-vehicle inspection after January 1, 2011. The policy would be rolled out in two phases to mitigate the impact on existing raised-vehicle owners and provide time to train and inform the public, inspection stations and law enforcement. Regulators were considering requiring owners to carry a “Letter of Authorization” issued by the province in order to operate a raised vehicle. The letter would signify that the vehicle had passed inspection and would be shown to law enforcement during roadside stops to demonstrate compliance with the applicable frame-height limit.

Ohio

Street Rods/Customs: 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 continues to be considered by the Ohio House Transportation and Infrastructure Committee. 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 a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble.

Massachusetts

Street Rods/Customs: SEMA is working with state legislators, regulators and vehicle hobbyists on a compromise to SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles. 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 production vehicles they most closely resemble. In late 2008, a similar measure was vetoed by Governor Deval Patrick.

 

SEMA Federal Update

Health Care: The U.S. Senate is debating its version of health care reform legislation, following passage of a bill by the House of Representatives. The Senate legislation contains a number of elements recommended by SEMA as priorities in a letter sent last August to President Obama, including an exemption for most small businesses from employer mandates; a reliance on the private-sector insurance system; and small-business access to regional or nationwide purchasing pools. However, as introduced, the Senate legislation fails to tackle the market reforms necessary to eliminate wasteful spending. It also threatens the viability of private-sector plans with a government-run program. SEMA is joining with other trade associations comprising the Small Business Coalition for Affordable Healthcare to support amendments that will better control health care costs rather than impose new burdens on businesses. Providing access to the estimated 27 million small-business owners, employees and dependents who are now uninsured remains a SEMA priority.

Federal Lighting Standard: The National Highway Traffic Safety Administration (NHTSA) again postponed the effective date for the revised lighting standard, Federal Motor Vehicle Safety Standard No. 108, from December 1, 2009, to December 1, 2012. According to the NHTSA, the agency wants the extra time to confirm that there were no substantive changes included when the agency published the reorganized and simplified standard in 2007. The revised standard was originally scheduled to take effect in 2008. The lighting standard has been amended many times since it was first adopted in 1967 in order to address technological advances and enhance safety. As a consequence, the previous regulation was unnecessarily complex and difficult to understand. Early compliance to the revised standard is permitted.

Ethanol-15: The U.S. Environmental Protection Agency (EPA) delayed until mid-2010 a decision on whether to permit the ethanol content of gasoline to increase to 15% (from 10%). The original deadline was December 2009. The EPA indicated that it would likely accept the new level if tests confirm that the blend would not cause damage to cars. The EPA noted that it might limit use only in cars of the 2001 and later model years, since initial tests suggest that newer cars may better accommodate the fuel. The EPA needs additional time for durability testing regarding the long-term effects on vehicle components and emissions control systems. If the application is limited to model-year 2001 and newer cars, gasoline retailers would have to supply varying ethanol blends and relabel pumps, and drivers of older cars would need to be cautioned not to misfuel. Last year, SEMA submitted comments to the EPA opposing the 15% ethanol content, citing concerns that the additional content could harm automobile parts of all ages, including special-interest collector and historic vehicles. A number of other organizations expressed similar concerns.

Tax Write-Offs: Lawmakers expanded a provision enacted last year that allows small businesses (gross receipts of $15 million or less) to extend the net operating loss (NOL) carryback period from two to five years for tax years beginning in or ending in 2008. Under the new law, all businesses can now take advantage of the NOL carryback provision. The law allows companies to apply losses sustained in recent years against taxes on profits paid in earlier years. Businesses may offset 50% of the available income from the fifth year and 100% of all income in the remaining four carryback years. All businesses may carry back net operating losses for up to five years for losses incurred either in 2008 or 2009 but not both (at the option of the taxpayer). Small businesses that have already elected to carry back 2008 may also elect to carry back losses from 2009.

SEMA News - February 2010

By Joe Dysart

Protecting Your Business From the FTC Crackdown on Social Media

	The FTC is cracking down on clandestine blogger endorsements.

The Federal Trade Commission (FTC) has a stern warning for businesses secretly using bloggers and others in social media to endorse products and services: We’re coming after you. In a move that has generated a backlash as big as the blogosphere itself, the agency has put the word on the street that, as of December 1, it will be looking to haul into court the most flagrant users of cloaked endorsers.

“Social media is here to stay, and we have enough respect for advertising on the Internet and the important role of the blogosphere as a marketplace for public opinion to hold it to the same standard we apply to advertising in any other medium,” said Mary K. Engle, director of the FTC’s Division of Advertising Practices.

Not surprisingly, violent pushback to the new FTC guidelines was nearly immediate in the blogosphere, as cries of “Big Brother,” “Nineteen Eighty-Four,” and “government muzzling of free speech” sprang up like many dandelions. Jeff Jarvis, one of the medium’s most prominent spokespeople, posted on his blog, “For the FTC to go after bloggers and social media—as they explicitly do—is the same as sending a government goon into Denny’s to listen to the conversations in the corner booth and demand that you disclose that your Uncle Vinnie owns the pizzeria whose product you endorsed.” And Randall Rothenberg, CEO of the Interactive Advertising Bureau (IAB), responded with unbridled indignation, dismissing the new FTC guidelines as “constitutionally dubious,” and castigating the agency as being draconian.

“We offered to bring in bloggers, social media executives and others from among our membership and work with you to develop practical guidelines and self-regulatory mechanisms that would protect consumers from real harm, while assuring that independent opinion in digital media isn’t stifled,” Rothenberg wrote in an open letter to the FTC. “But commission staff did not follow up with us on our offer, held no public hearings on the proposed guides and ultimately dismissed our concerns.”

According to the FTC, the impetus for the new guidelines has been an ever-increasing prevalence of company endorsers—paid either in cash or in free products and services or both—who masquerade as unbiased, “everyday” consumer reviewers in all sorts of social media forums. Specifically, Engle pointed to a Proctor & Gamble social media blitz campaign in which, she said, 400,000 moms were given free products in exchange for their cheery reviews of the same in blogs and on Twitter.

Other flagrant cases, according to Engle, included a blog reviewer who received free use of an automobile—along with free gas for a year—in exchange for an endorsement, as well as bloggers who received luxurious vacations in exchange for their supposedly unbiased endorsements of a consumer electronics product.

“Our concern is with the advertisers who pay consumers to talk up their products and make it look like independent consumer opinion,” Engle said.

While IAB agrees that brazen misrepresentation in web reviewing needs to be reigned in, what really sticks in the organization’s craw is that the FTC drew a stark distinction in its new guidelines between traditional journalists and new-media bloggers. Essentially, the agency ruled that while any blogger who receives a free product or service must explicitly reveal that fact—even if the subsequent review is negative—traditional journalists will not be held to the same standard. The FTC’s reasoning? The public has long known that journalists often receive free books, theater and movie tickets and the like from companies in hopes that those products or services will be reviewed.

“What concerns us the most in these revisions is that the Internet—the cheapest, most widely accessible communications medium ever invented—would have less freedom than other media,” Rothenberg said. “These revisions are punitive to the online world.”

Given the firestorm the FTC has ignited, the tussle over what’s fair and what’s not seems destined to continue for some time. In the interim, here’s how to protect your business based on the facts on the ground right now:

Get Your Attorney to Go Over the Guidelines: The FTC has posted a complete copy of its updated “Guides Concerning the Use of Endorsements and Testimonials in Advertising” online. If you’ve ever used a blogger to endorse your company—or you plan to—this is the first stop for you and your counsel.

Assuage the Fears of Your Bloggers: While there was undoubtedly white-knuckle fear among thousands of bloggers and other social media posters when the FTC guidelines first dropped, the agency has since assured the blogosphere that its primary mission is to go after the companies who hire them. According to Richard Cleland, the FTC’s assistant director of the Division of Advertising Practices, the agency also sees as remote the prospect of seeking up to $11,000 fines through the courts for social media reviewers who fail to reveal company ties. Instead, the FTC will first write a series of warning letters to the offenders.

Cease and Desist: If your company does secretly have bloggers singing your praises or twittering away on your behalf, now would be a good time to stop. Despite the backlash, the FTC has all intentions of moving ahead with its mission to clean up the web. There’s no reason to make your company become a poster child for the FTC’s crusade.

Be Sure to Identify All Paid Research: For years, companies have been commissioning research that casts themselves or their industry in a positive light, ostensibly offering businesses and consumers an unbiased, third-party perspective. Some companies freely admit to financing such studies. Others do not. Under the new FTC guidelines, all companies must explicitly state that they have paid for such research, especially if it’s used for marketing and promotion purposes.

Disclose the Nature of All Celebrity Endorsements: The FTC is tired of celebrities who make service or product endorsements for a company without disclosing their commercial relationship with the firm. Essentially, the agency wants that relationship made explicit. When safeguarding against this provision, ask your attorney to clarify the FTC’s definition of celebrity. Not everyone has the bankroll for Paris Hilton, but they still may be using a local former football great as a hawker.

 

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: www.joedysart.com

 

 

 

 

SEMA News - February 2010

SEMA Publishes Guide on How Land-Use Laws Can Limit Off-Roading

Being knowledgeable on issues that affect your customers is good business. On that topic, one of the biggest challenges impacting off-road enthusiasts is the closure of public lands to motorized recreation.

“There are still lots of roads, trails and dunes to traverse, but closure signs are being posted across the country, from North Carolina to California,” said Stuart Gosswein, SEMA’s senior director of federal government affairs. “That’s why we are alerting our member companies to the problem. As companies and consumers become aware of legislative and regulatory actions to restrict off-highway vehicle (OHV) access, they will be in a position to confront unnecessarily restrictive land-use policies.”

Land-use policies developed in Washington, D.C., and elsewhere have a dramatic impact on the availability of off-road trails. Because these laws and regulations are complex, SEMA has created a “Guide to Land-Use Policies & Off-Road Recreation” to help decode the Washington lingo.

The guide provides a broad overview of major laws that restrict access, such as the Wilderness and Endangered Species Acts as well as federal agencies that manage public lands and private organizations that support the hobby. It also includes SEMA position statements that act as guideposts for legislative and regulatory advocacy.

SEMA supports public land decisions that are reasonable and enjoy local community support. Land designated as wilderness would be an example of a decision that has critical consequences, since the designation automatically bans motorized vehicles.

“Wilderness legislation can have a direct impact on your customers,” explained Ethan Landesman, director of the SEMA Action Network. “Imagine a hobbyist installing a suspension kit, off-road lights or a brush guard to enjoy trails in Utah’s Great Basin, Grand Staircase-Escalante, Moab-La Sal Canyons or San Rafael Swell. Now imagine Congress passing a wilderness bill to close more than 9 million acres in Utah to OHV use. Where will your customers turn to go enjoy their hobby? The guide contains information that will help you protect this family-friendly activity.”

The danger to off-road hobbyists is not imaginary. Last Spring, Congress passed and President Obama signed into law the Omnibus Public Land Management Act, which designated more than 2 million acres of wilderness in nine states. It included areas in and around Joshua Tree National Park and the Eastern Sierras in California, Owyhee-Bruneau Canyonlands in Idaho, Mt. Hood in Oregon and Zion National Park in Utah.

In October, the U.S. Forest Service permanently closed the popular 29-mile Upper Tellico River OHV trail system in North Carolina, citing erosion concerns. SEMA and a number of OHV organizations and enthusiasts had urged the Forest Service to take a more measured response instead of simply closing the off-road recreation area.

Congress is now considering the Northern Rockies Ecosystem Protection Act. The bill would set a precedent by using the term “bioregion” as justification for converting 24 million acres in Idaho, Montana, Wyoming, Oregon and Washington into wilderness. SEMA has cautioned lawmakers that there are a myriad of bioregions across America, and it is too simplistic to create one massive ecosystem devoid of motorized activities.

While many bills and regulations are well-intended, they are also over-reaching in scope. For example, they do not “cherry-stem” existing roads and trails within the wilderness or create an alternative designation to allow some motorized recreation opportunities where appropriate. The initiatives don’t acknowledge that many hobbyist groups and clubs help clean and maintain trails on their own time and using their own dollars, thereby preserving the environment and ensuring that future generations can also enjoy the same natural splendor.

Understanding the issues and the players is the first step toward working on behalf of the millions of Americans who want responsible access to public lands or the accompanying economic benefits, whether for companies that market products or local communities that depend upon tourism. Advocacy may include contacting your elected representatives on specific legislation, passing along information to your friends and business partners, and networking with your customers, local car clubs and OHV organizations.

 

 

SEMA News - February 2010

By Yvonne Wang

The Chinese Specialty-Equipment Market

	Liu Yan, CEO/founder of V-Man Tuning (left) poses with Ben Mizban, CEO of California-based T-Rex Grille at a networking session during the 2009 SEMA Familiarization trip to China.

SEMA News is interviewing top distributors/retailers in China in a series of monthly articles to introduce the larger players in the evolving specialty-equipment market in China to the magazine’s readers. For this month’s international insight into China, SEMA spoke with the founder and CEO of V-Man Tuning, Liu Yan. V-Man Tuning is an off-road distributor and installer that was established in 2004 and currently employs 55 people, including 11 installers. The company specializes in performance parts for a wide variety of off-road vehicles. The brands V-Man distributes include TRD, Fox Racing and King Suspensions.

SEMA News: What is the most popular product being installed among retail customers and enthusiasts in your region?

Liu Yan: Eighty percent of the customers at V-Man Tuning purchase suspension shocks for their off-road vehicles. Titanium front and rear bumpers and grille guards are also gaining in popularity. There is a growing demand for U.S.-manufactured off-road accessories, such as overhead consoles, tool and equipment boxes, rear cargo storage items and high-quality interior accessories that make lengthy adventure trips more convenient and comfortable.

SN: How has the market changed over the past two years?

LY: Consumer demand has significantly increased. Consumers are more aware of brands and have increased their knowledge of the parts and accessories available to improve their vehicles’ performance and functionality.

SN: Who are your typical customers? How much are enthusiasts spending on average?

LY: The amount of money a “typical customer” at V-Man Tuning spends varies widely—anywhere from 20,000–250,000 RMB [Renminbi, Chinese currency] ($3,000–$36,700 USD). The customer who spends $3,000 USD typically puts on exterior accessories, such as front and rear bumper guards and a pair of off-road lights. A customer who spends more than $36,000 USD at V-Man usually modifies the exterior with front and rear guards, tire carriers, roof racks, winch mounts, off-road wheels and tires and chrome or grille inserts. Additionally, that customer would also accessorize the vehicle with a lift kit, such as shocks, stabilizers and steering accessories, and seek engine-performance upgrades, such as superchargers, computer chips and module monitors.

SN: What are the most frequently modified vehicles in your installation center?

LY: The most modified vehicle at V-Man Tuning is the Toyota FJ Cruiser, followed by the Jeep Wrangler and Jeep Cherokee. Also among the vehicles V-Man customizes are the Land Cruiser 80 and Land Cruiser 120, Nissan Paladin, Isuzu Rodeo and Mitsubishi Pajero.

SN: What percentage of the products you sell are imported?

LY: Fifty percent of the products are imported from the United States or Australia, with the remainder of the products domestically manufactured. Most of the products from overseas are performance and handling upgrades, including lift kits, shocks, struts and entire suspensions and accessories. The parts manufactured domestically include exterior restyling products made of steel, aluminum alloy and titanium alloy.

SN: Are you looking for new products? If so, what is your company looking to import into China?

LY: V-Man is seeking engine performance products for Jeep Wranglers and Cherokees and Toyota FJ Cruisers and Land Cruisers. Some examples of U.S.-supplied products the firm is looking for are performance chips, modules, tuner gauges and all engine switches and wiring accessories.

SN: What kind of suggestions do you have for our member companies that are looking to sell into China?

LY: V-Man customers often take extensive off-road trips—including a 10,000-km trip to Tibet—and thus there exists a need for durable products. U.S. companies can gain a better understanding of the market by communicating with Chinese enthusiasts and by participating in the large-scale off-road events that take place throughout China. U.S. companies should also pay attention to the differences in the gasoline in the market, which could affect the use of performance products. For example, there have been repeated problems with a high-quality supercharger which, after a few road trips, would have problems with the engine starter, and the emergency engine light would turn on. These problems do not appear under the same circumstances when the product is utilized in the United States. The problem may be caused by the petrol gas that is used in China, which differs from that found in the United States. In addition, the struts on a suspension kit will wear out quicker than in the United States due to the harsh road conditions and lack of road structure in China.

Contact information for V-Man Tuning is available on SEMA's International homepage, as is a SEMA report on the Chinese specialty-equipment market. Members may also contact Yvonne Wang at yvonnew@sema.org for more information.

 

 

SEMA News - February 2010

By Linda Spencer

Businesses Unite to Oppose Onslaught of Newly Proposed Industry-Threatening Regulations

Suspension and bull-bar products, which make up 50% of all product sales in the 4WD parts and accessories market, were identified as the products most often under attack by the Australian government. Courtesy 4x4 Australia

SEMA News recently talked with Stuart Charity, executive director of the nearly 30-year-old Australian Automotive Aftermarket Association (AAAA), and Ben Bartlett, the AAAA’s national membership manager, about the Australian specialty-equipment market amid increasingly positive news that Australia is well on its way to an economic recovery. There are indications that the automotive industry there has begun to rebound, and the Federal Chamber of Automotive Industries reported growing vehicle sales—with particularly strong SUV sales—and overall sales for the year are expected to reach up to 900,000 in 2009. Spurred by tax rebates for business purchases of vehicles and increased purchasing as growing confidence by consumers increases, the sales gap will be much less than feared just several months ago, although the total isn’t expected to reach the record-setting 1.05 million achieved in 2007.

The AAAA has stepped up its support of the $950 (AU) million specialty-equipment market in recent years with the launch of the Performance, Racing & Tuning Council (PRTC) in late 2005 and the Australian 4WD Industry Council a year later. AAAA represents the overall Australian automotive aftermarket, including the repair and replacement industry as well as firms in the specialty-equipment segment. The group decided to undertake an effort to collect data through council-specific surveys to better understand the scope, interests and needs of the various sectors. Nearly 300 companies participated in two surveys.

Government crackdowns on the specialty-equipment market were seen as the biggest threat by members of the PRTC, with 79% of respondents identifying governmental restrictions on their sectors as the largest hurdle to their industry’s health. Firms in the performance, tuning and racing sector reported that local and state government agencies had focused most of their attacks on some of the fastest-growing and healthiest niches—engine and exhaust modifications. These modifications, along with brake and clutch upgrades, topped the highest growth products within this sector.

SEMA News recently talked with Stuart Charity, executive director of the nearly 30-year-old Australian Automotive Aftermarket Association (AAAA), and Ben Bartlett, the AAAA’s national membership manager, about the Australian specialty-equipment market amid increasingly positive news that Australia is well on its way to an economic recovery.

The survey sponsored by the Australian 4WD Industry Council also revealed that government crackdowns are of great concern and that these initiatives are once again directed at the heart of the market. Suspension and bull-bar products, which make up 50% of all product sales in the 4WD parts and accessories market, were identified as the products most often under attack by the government. For example, Australian officials have proposed adopting the European Directive (2005/66/EC), which would ban so-called rigid bull bars. The AAAA believes that it is not possible to design and manufacture any form of effective and commercially viable bull bars that would meet the EU standard and that it would be irresponsible for the Australian government to implement similar restrictions on bull bars. The Australian Transport Safety Bureau is on record as stating that “…there is a dearth of scientifically based studies of the effect of bull bars on road safety.”

The industry has also raised concerns about the challenges faced by suspension manufacturers who are confronted with not only limits in terms of ride height but also the impact of suspension modifications on vehicles equipped with electronic stability control (ESC). The Australian Motor Vehicle Certification Board Working Party proposed a ban on suspension modifications if the vehicle is fitted with a standard electronic stability control (ESC) or an equivalent system. The AAAA has been able to halt the implementation of this provision, made without consultation with the industry, and has elicited a promise that the industry would be involved in any future deliberations affecting member products. Due to these growing legal threats, the AAAA is reportedly increasing its industry advocacy with state, local and national officials.

“We believe that taking a proactive stance on these issues, supported by evidence-based research and testing and working collaboratively with other stake-holder groups, is and will continue to exert significant pressure on the regulators and their ministers,” the group said. Indeed, Charity reported some early successes with ministers in three Australian states overruling their departments and ordering a complete review of ill-conceived and illogical regulation that would have threatened entire sectors of the independent aftermarket in Australia.

Given the rising legal barriers to the sales of customizing products, AAAA-member companies and Australian enthusiasts will no doubt seek continued strong leadership from the AAAA in gaining access to government working panels to provide input and technical advice as well as to educate government officials on the importance of the specialty market in generating Australian tax revenues, job creation and on the overall economy.

 

 

 

SEMA News - February 2010

By Drew Hardin

Photo Courtesy Source Interlink Media Archives

 

Roger Penske gave up a successful racing career to open his first car dealership in 1965, but that didn’t keep him away from the track. He began Penske Racing that same year, and one of his earliest acquisitions was this ’66 Corvette coupe. The car had been used by Chevrolet to develop the L88 engine program, and Penske struck a deal with Zora Arkus-Duntov—who quietly worked around GM’s ban on factory racing support—to buy the car for competition. Penske sent a young West Coast racer named Dick Guldstrand to Detroit to drive the Corvette back to Penske’s operation in Pennsylvania.

Penske hired Guldstrand, George Wintersteen and Ben Moore to drive the Corvette at the Daytona 24-hour endurance race in February 1966 (then called the Daytona Continental). This pre-race publicity photo, distributed by Firestone, shows Penske examining the Firestone Indy tires used in the race.

Penske’s Vette won the Grand Touring class and finished 12th overall with an average speed of 91.68 mph, despite a nighttime crash that destroyed the car’s nose. The team soldiered on by taping flashlights to the remains of the front fenders to meet the race organizer’s lighting rules.

After the victory at Daytona, Penske had the Corvette painted blue with yellow stripes—the colors of his sponsor Sunoco. The car earned another endurance race win at Sebring in that livery, but Penske wouldn’t race sports cars for much longer. He was soon to meet another young driver, Mark Donohue, who would help take Penske Racing to the top tier of American motorsports.

SEMA News - February 2010

By Annie Kang

New Association Benefit Uses Social Media to Deliver Best of SEMA Show to Specialty-Equipment Community

More than 100 exhibitors agreed to participate in the program by agreeing to have opinion leaders visit their booths.

For the 2009 SEMA Show, the association not only strove to deliver on its proven traditions but also aimed to introduce new avenues for success. The first-ever Enthusiast Opinion Leader Research Program was conceived in order to keep SEMA-member companies in tune with the current behavior of automotive enthusiasts and to increase consumer knowledge on the best that the specialty-equipment industry has to offer.

The Enthusiast Opinion Leader Research Program, which was coordinated in part with Ford Motor Company, the vehicle manufacturer of the 2009 SEMA Show, collected the views and observations of selected automotive enthusiasts deemed “opinion leaders.” These opinion leaders were invited to day two of the 2009 SEMA Show and asked to review new products, vehicles and trends. Thirty opinion leaders were also divided into two focus groups—light-truck and street-performance—to provide an in-depth, qualitative analysis of their views.

“The information that we gathered from the Enthusiast Opinion Leader Research Program will give SEMA-member companies a better understanding of their end users, which will help them make better-informed business decisions,” said Tom Myroniak, SEMA vice president of marketing and market research. “It will also raise the visibility of their products and we hope help them sell more.”

The first assignment for the participants of the Enthusiast Opinion Leader Research Program was to visit the New Products Showcase and post 10 tweets on Twitter.

The opinion leaders’ first task upon arriving at the Show was to visit the New Products Showcase and post a minimum of 10 “tweets” on the social networking website, Twitter.com, about what they found to be the most interesting or marketable products. The participants’ activity led to SEMA hitting the number 10 spot under Twitter’s global trends topics for November 4, 2009. The participants were asked to include a comment on the product, a product ID and a link to a photo with their tweets. The data was then aggregated by SEMA staff and displayed on SEMA’s consumer website, www.enjoythedrive.com. Participants were also encouraged to post feedback on their personal social networking sites.

Upon completion of the initial assignment, the opinion leaders were free to walk the Show floor with a map of suggested areas to visit. They were encouraged to upload comments, photos and videos on Facebook, Flickr, Twitter and YouTube on the trends and vehicles that caught their attention.

“We had 100% participation from the opinion leaders in the New Products Showcase assignment, which indicates that we had a good pool of enthusiasts in the group,” said Myroniak. “The participants behaved as if they had won Willy Wonka’s Golden Ticket. They were extremely grateful and excited at the opportunity to be involved in this new program.”

Posts from opinion leaders and program hopefuls were made on SEMA’s Facebook page leading up to and after the Show. Since the program’s start, the SEMA fanpage has grown from 2,000 to more than 5,000 fans.

The opinion leaders were selected based on their views, attitudes and behavior as it related to their vehicles and to the specialty-equipment industry—specifically, the light-truck/off-road and street-performance segments. The association also looked for individuals with strong social networks and those who actively demonstrated their passion for the industry through social media.

The opinion leaders uploaded comments, photos and videos about standout trends and vehicles that they observed on the Show floor onto Facebook, Flickr, Twitter and YouTube.

SEMA recruited applicants for the program by making announcements on social networking sites, including Facebook, the SEMA Action Network website and various vehicle-enthusiast forums. Within two weeks, SEMA received more than 2,000 applications, from which 800 were selected. The 800 potentials were then asked to partake in an extensive pre-Show survey as a condition for being selected, with 527 of the candidates who completed the survey being finalized as opinion leaders for the program. The pre-Show survey served as another vehicle to obtain information on the buying behavior and demographics of specialty-equipment enthusiasts.

Exhibitors were also encouraged to take part in the project by agreeing to have opinion leaders visit their booths and view their products. More than 100 companies participated.

While the program was conducted on the second day of the SEMA Show, participants were invited to attend the following day free of charge as well. SEMA held a reception and an awards ceremony for the opinion leaders at the end of the day, recognizing the most active and instrumental participants. Door prizes were also distributed.

The Enthusiast Opinion Leader Research Program post-Show report will be available initially to SEMA Show exhibitors and attendees on www.SEMA.org. It will be available to non-Show participating members at a later date. A decision on whether to continue the Enthusiast Research Program for the 2010 SEMA Show will be based on feedback from the report.

For more information on the Enthusiast Opinion Leader Research Program, e-mail research@sema.org.