SEMA News - November 2009

 By Annie Kang

Day-Long Event Shows SEMA-Member Companies How to Utilize Free Tools for Website Optimization

Attendees at the recent SEMA Internet Symposium, presented by the Street Performance Council (SPC), left the Pasadena Convention Center in Pasadena, California, equipped with tools for creating and implementing an online marketing strategy that will keep their businesses moving forward in today’s technologically advancing climate.

The SPC Internet Symposium was established in 2007 to emphasize the importance of Internet marketing to SEMA-member companies.

“If the Internet can push the U.S. Postal Service to insolvency, what can it do to your business if you are not properly prepared?” asked SPC Chairman Eric Breslow.

The day-long event included four sessions presented by industry experts. In keeping with today’s lean times, the sessions focused on gaining high-tech results without the requisite high-cost bill.




Search-Engine Optimization: Tech Speak for Helping Your Customers Find You Online
Speaker: Brian Offenberger, CEO, Aftermarketer Club

	Brian Offenberger, CEO, Aftermarketer Club.

In his presentation, Offenberger revealed that search-engine optimization (SEO) is the best way to help your customers find you using online search tools such as Google and Yahoo. Attendees walked away with valuable website tips, the first of which was to index their content.

“Its a little tough for us to achieve maximum results and our objectives if not all of our material is available,” said Offenberger. “Kind of hard if only one-third of my store is online. So make sure your stuff is indexed. There’s an easy way to do it. Go to Google, key in the word ‘site,’ colon and put in your website address. You can do that on Microsoft and AOL and Yahoo. They will show you every page of your website that they are seeing.”

Additional tips included searching friendly web practices, performing frequent content updates, using a blog and social media and ensuring fast site load times.

Offenberger also stressed the importance of tagging content. Tags are short key phrases used to describe content. All audio, video and social media you create should be tagged, since they help search engines display relevant content to searchers.

The value of links to search engines was also highlighted. Links are more likely to boost your rankings if they are one-way (not reciprocal), from a relevant source (website/blog with similar subject matter) and from a quality source (website/blog that is optimized, offers quality content and has inbound links).

 

Your Intellectual Property Rights
Speakers: Sean Chaffin, eBay VERO program manager, eBay Motors; Jeff Van Hoosear, Partner, Knobbe Martens

	Sean Chaffin, eBay VERO Program Manager, eBay Motors.

In this session, Hoosear guided attendees through the process of enforcing their trademarks on popular eCommerce sites, starting with step number one: conducting an internal IP audit. This involves identifying what trademarks, trade names, copyrights, patentable or copyrightable subject matter you possess.

“You have to understand what you have in order to know what you can protect,” said Hoosear.

An internal IP audit includes:

• Domain Name Audit—More than one person is allowed to register domain names or URLs, which can often lead to problems if it isn’t controlled. “I’ve seen estimates as high as one-third where domain names registered go back into the registration pool because they haven’t been properly maintained or registered as they should be, so you need to know what domain names you have,” said Hoosear. 
• Search-Engine Audits—Go to search engines such as Google, Yahoo and MSN. Look primarily at your product names and trademark names and see what comes back. “See who is using your marks, names, URLs or something very similar to that on the Internet to find out what problems you have because you have to understand your problems to treat them appropriately,” said Hoosear. 
• Marketplace Audit—Many companies are already doing this all the time. You’ve got your sales representatives or customers contacting you or inquiring about you or your packaging or your product or company because they are using a similar name, packaging or URL. A marketplace audit gives you guidance to what is out there.
• Trademark Search Audit (U.S. and International)—Periodically do a trademark search audit to see what other marks are out there that are similar that may be taking advantage of you and your goodwill. Don’t forget to do an international search as well.

 

U.S. Intellectual Property Overview—Myth Busting the ACES and PIES Data Standards
Speaker: Gigi Ho, cofounder, Digital Performance

Ho stressed that updating your catalog is an essential part of keeping up with the times.

	Gigi Ho, Co-founder, Digital Performance.

“The data that we are talking about is electronic now,” said Ho. “We’re not talking about the guy at the counter with the catalog rack behind him anymore. This is where the person is going to be looking up information on a computer screen, and there are certain formats that are going to be needed for that computer to be able to make that product data presentable to the person in front of the computer screen.”

Ho revealed the following 12 steps to synchronicity in creating your electronic catalog:

1. Admit that your data files stink.
2. Realize that industry standards can help create order and profit for your company.
3. Make a decision to do something about it. 
4. Make a searching and fearless inventory of all your data silos.
5. Admit to your business partners, customers and company members the nature of your data’s wrongs.
6. Be company-wide-ready to remove these defects of data.
7. Humbly ask your business partners and customers to remove your data’s shortcomings.
8. Make a list of all persons in your company who will be responsible for data.
9. Make sure those persons know and understand the industry standards and requirements of your customers, and appoint them as Data Lords and Ladies.
10. Continue to take inventory of your data silos.
11. Seek the current and future trends of data requirements and key contacts through seminars, webinars, conferences and trade shows.
12. Having had an awakening as the result of these steps; carry this message forward to others; and continue to practice these principles for even greater profit.

 

Video Killed the Radio Star: It’s Still True Today
Moderator: John Naderi, executive editor, StreetFire.net
Speakers: Famous Rhodes, director of eBay Motors, eBay Motors; Chris Duke, Motorz TV; James Lawrence, PowerTV; Josh
Biggers, Stillen

	From left: Josh Biggers, STILLEN; James Lawrence, PowerTV; Chris Duke, MOTORZ TV; Famous Rhodes, Director of eBay Motors, eBay Motors; John Naderi, Executive Editor, StreetFire.net.

This packed presentation demonstrated how you can create your own killer video to bring your products to life in an entertaining yet affordable way.

Duke revealed strategies on keeping video production costs down. He stated that most of the audience would not need a professional camcorder and that a consumer device would be sufficient.

“Don’t worry about spending $6,000 on a huge camera,” Duke said. “You don’t really need it.”

He advised selecting a camera based on what kind of video you intend to produce.

“Think about where your video is going to go,” Duke said. “It’s probably going to end up on YouTube, streetfire.net or any other video-sharing sites. Do you need the high quality of broadcast television? If you don’t, don’t worry about it. You can use a flip camera or anything really as long as it’s HD. If you are doing product information, you definitely want to go HD.”

Today’s Essential Biz Tools: Sell More, Do More With Less You
Speaker: Luanne Brown, president and CEO, eTool Developers LLC

Brown introduced attendees to the concept and importance of the Web 2.0 revolution.

	Luanne Brown, President & CEO, eTool Developers LLC.

Brown stated that Web 2.0 resulted in the creation of social networking sites, blogs, wikis, chat rooms, Twitter and tagging, all of  which ultimately help you run and market your business on the web. Google, eBay and Amazon are prime examples of Web 2.0 companies.

“The web is like the big equalizer,” said Brown. “You can be as big as anybody on the Internet if you do it right. It’s very easy to use. That’s kind of what changed with Web 2.0. Someone who is not a developer can use these tools without having to have special knowledge.”

Brown also highlighted Google as an essential business tool.

“Google and all the tools that Google has to offer are extremely cost effective,” Brown said. “If you go to Google.com/landing/searchtips, you’ll find all these different search tips and different ways that you can use their search engine. If you click on iGoogle and set up a Gmail e-mail account, you can use most of these tools for free.”

Brown also emphasized the importance of selecting Internet marketing tools based on the nature of your business needs.

“The tool that you need to use is based on who you are and what the function is that you are trying to perform,” she said. She pointed out that you need to ask yourself which of the three categories you fall into: business owner, marketing director or auto technician. If you were a business owner, your research would focus on your customers and competition. If you were an auto technician, your research would focus on new products and installation information.

How to Measure Online Buyer Acquisitions & Sales
Speaker: Allen Horwitz, vice president of sales and marketing, Submit Express

	Allen Horwitz, VP Sales & Marketing, Submit Express.

Horwitz stated that your website needs to have four key elements in order to successfully measure your online buyer acquisitions and sales: 

• Relevant Content—“Whatever you are selling, promoting or whatever the purpose of your website, it has to have content that is relevant to the audience you are trying to address,” said Horwitz.
• Targeted Traffic—“The number of people viewing your site is irrelevant if the people coming to the site arrived looking for something else,” he said. “The traffic that is generated has to be people looking for something that you want to sell or something that you want to promote.”
• Traffic Conversion—“A conversion is defined as having a visitor to your site taking an action that is part of a process that you define. So it doesn’t mean a sale necessarily, but that you bring a user to yoursite through a process that you want them to do. It could be filling out a lead form; it could be purchasing something; it could be referring to another page; it could be filling out a contact form; or it could be picking up a telephone and dialing a number. All of those things could be defined as a conversion, and a conversion is something different for everyone in this room.”
• Customer Retention—“If you can make your website compelling enough that visitors come back again in the future, that they remember you, that they like you and that they potentially even become your fan, that is the difference between being successful and being virally successful and, ultimately, very wealthy.”

Ask the Experts: What Should You Do With a $10,000 Internet Marketing Budget
Moderator: Eric Breslow, Breslow Foundation
Panel: Oliver Rathlein, director sales and marketing, Eibach Springs Inc.; Tyler Tanaka, marketing manager, Turbonetics; Mike Morita, vice president of marketing, Pro-Motion Distributing; Brian Hafer, vice president, US Auto Parts; Justin Choi, president, CIE Studios

	Eric Breslow, Breslow Foundation; Brian Hafer, Vice President, US Auto Parts; Mike Morita, Vice President Marketing, Pro-Motion Distributing; Tyler Tanaka, Marketing Manager, Turbonetics; Oliver Rathlein, Director Sales & Marketing, Eibach Springs Inc.; Justin Choi, President, CIE Studios.

A panel of experts was on hand to share personal business knowledge and to answer questions from the audience.

Tanaka recommended the Hootsuite.com, Cotweet.com and Tweetdeck.com websites to filter and manage Twitter accounts. He also answered an audience question on how his business responds to negative online postings.

“If I find out about it, we try and address it,” he said. “We look at it ,and we evaluate what’s going on. The activity that we get on forums is generally firefighting. People are a thousand times more likely to complain than they are to give praise. We get in and say ‘Hey, this is Tyler from Turbonetics. What can we do? Was it our fault?’ We try and get in right away. We don’t let it sit.”

“This was an amazing final session for the 2009 Internet Symposium,” said Breslow. “A panel of marketing directors from iconic SEMA-member companies sharing their secrets to success on the Internet—it’s this kind of camaraderie, even with potential competitors in the audience, that makes this industry special. The audience was so riveted by the panel that we went almost an hour over.”  

SEMA News - November 2009 

By Yvonne Wang

The Chinese Specialty-Equipment Market

A brand-new 2009 Jeep Wrangler Rubicon costs $70,000 USD in China. The same vehicle averages only about $25,000 USD in the United States. Mr. Lai, director of sales and marketing for Hangzhou Xin-Works, indicated that the Jeep Wrangler is the new revolution for the off-road market in China. Typical Wrangler customers easily add an additional $15,000 USD in customization, according to this distributor in Hangzhou, 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. The distributor chosen for this month’s international insight into China is Hangzhou Xin-Works, also known as X Jeep 4WD. Hangzhou Xin-Works is a distributor, installer/retailer and importer of off-road specialty products. The company was established in 2003 and currently employs 16 people. 

SEMA News spoke with Mr. Lai, director of sales and marketing for Hangzhou Xin-Works. Lai said that the firm services more than 50 small retail/installation and beauty shops across China, each of which uses foreign direct import brands. The company currently distributes AEV, Warn, Hella, Thule, Cooper, IPF, Optima, Milemarker and Sure Power brands. Its best-selling products include AEV Jeep Wrangler JK and TJ suspensions, AEV 17-inch Pintler wheels, Hella headlights and Thule luggage racks.


SEMA News: What are the most popular modifications among your retail customers and enthusiasts?
Hangzhou Xin-Works: The most popular categories of modifications among retail customers are 2- to 4-inch suspension kits. Anything above 4 inches would not be suitable for the Chinese market.

SN: How has the market changed from two years ago to now?
HXW: Two to three years ago, the Jeep Cherokee was very popular for customization. Enthusiasts would spend approximately $4,000 USD on adding front and rear guards, luggage racks, headlights and some exterior restyling. The Jeep Cherokee trend is now declining, and the Jeep Wrangler is the rising star in our industry.

SN: Please describe your typical customer and how much enthusiasts spend on average.
HXW: The range of customers varies depending on what vehicles they purchase. For example, a Toyota Land Cruiser customer usually spends $1,500–$2,000 USD on customization. One level above that would be a Toyota FJ Cruiser customer who spends $7,000–$9,000. The highest level would be Jeep Wrangler customers, who will spend a minimum of $15,000–$25,000 on customizing their vehicles with the most well-known imported brands.

SN: What are the most modified vehicles in your installation centers?
HXW: The most modified vehicles we see at our shops are the Jeep Wrangler Sahara and Rubicon, Toyota FJ Cruiser, Mitsubishi Pajero and Jeep Cherokee, Liberty and Compass.

SN: What percentage of your business consists of imported foreign parts and accessories?
HXW: About 80% of our business is predominately imported foreign brands, which are distributed among our network of retail shops across China. We also utilize the Internet and have become a supplier to many online retailers as well.

SN: Are you looking for new products? If so, what are the products your company is looking to import into China?
HXW: Yes, we are always looking for Jeep-application products made by U.S. manufacturers. We are especially interested in Jeep lift kits and shocks. Currently, only 30% of our products are imported directly from the United States. We are definitely looking to increase this percentage with specialty products suitable for Chinese enthusiasts.

SN: What suggestions do you have for our member companies looking to sell into China?
HXW: It would be useful if technical installation guides can be translated into Chinese and to establish a warehousing facility in China in the future.  

SEMA News - November 2009 

By Yvonne Wang

The Chinese Specialty-Equipment Market

A brand-new 2009 Jeep Wrangler Rubicon costs $70,000 USD in China. The same vehicle averages only about $25,000 USD in the United States. Mr. Lai, director of sales and marketing for Hangzhou Xin-Works, indicated that the Jeep Wrangler is the new revolution for the off-road market in China. Typical Wrangler customers easily add an additional $15,000 USD in customization, according to this distributor in Hangzhou, 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. The distributor chosen for this month’s international insight into China is Hangzhou Xin-Works, also known as X Jeep 4WD. Hangzhou Xin-Works is a distributor, installer/retailer and importer of off-road specialty products. The company was established in 2003 and currently employs 16 people. 

SEMA News spoke with Mr. Lai, director of sales and marketing for Hangzhou Xin-Works. Lai said that the firm services more than 50 small retail/installation and beauty shops across China, each of which uses foreign direct import brands. The company currently distributes AEV, Warn, Hella, Thule, Cooper, IPF, Optima, Milemarker and Sure Power brands. Its best-selling products include AEV Jeep Wrangler JK and TJ suspensions, AEV 17-inch Pintler wheels, Hella headlights and Thule luggage racks.


SEMA News: What are the most popular modifications among your retail customers and enthusiasts?
Hangzhou Xin-Works: The most popular categories of modifications among retail customers are 2- to 4-inch suspension kits. Anything above 4 inches would not be suitable for the Chinese market.

SN: How has the market changed from two years ago to now?
HXW: Two to three years ago, the Jeep Cherokee was very popular for customization. Enthusiasts would spend approximately $4,000 USD on adding front and rear guards, luggage racks, headlights and some exterior restyling. The Jeep Cherokee trend is now declining, and the Jeep Wrangler is the rising star in our industry.

SN: Please describe your typical customer and how much enthusiasts spend on average.
HXW: The range of customers varies depending on what vehicles they purchase. For example, a Toyota Land Cruiser customer usually spends $1,500–$2,000 USD on customization. One level above that would be a Toyota FJ Cruiser customer who spends $7,000–$9,000. The highest level would be Jeep Wrangler customers, who will spend a minimum of $15,000–$25,000 on customizing their vehicles with the most well-known imported brands.

SN: What are the most modified vehicles in your installation centers?
HXW: The most modified vehicles we see at our shops are the Jeep Wrangler Sahara and Rubicon, Toyota FJ Cruiser, Mitsubishi Pajero and Jeep Cherokee, Liberty and Compass.

SN: What percentage of your business consists of imported foreign parts and accessories?
HXW: About 80% of our business is predominately imported foreign brands, which are distributed among our network of retail shops across China. We also utilize the Internet and have become a supplier to many online retailers as well.

SN: Are you looking for new products? If so, what are the products your company is looking to import into China?
HXW: Yes, we are always looking for Jeep-application products made by U.S. manufacturers. We are especially interested in Jeep lift kits and shocks. Currently, only 30% of our products are imported directly from the United States. We are definitely looking to increase this percentage with specialty products suitable for Chinese enthusiasts.

SN: What suggestions do you have for our member companies looking to sell into China?
HXW: It would be useful if technical installation guides can be translated into Chinese and to establish a warehousing facility in China in the future.  

SEMA News - November 2009 

By Yvonne Wang

The Chinese Specialty-Equipment Market

A brand-new 2009 Jeep Wrangler Rubicon costs $70,000 USD in China. The same vehicle averages only about $25,000 USD in the United States. Mr. Lai, director of sales and marketing for Hangzhou Xin-Works, indicated that the Jeep Wrangler is the new revolution for the off-road market in China. Typical Wrangler customers easily add an additional $15,000 USD in customization, according to this distributor in Hangzhou, 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. The distributor chosen for this month’s international insight into China is Hangzhou Xin-Works, also known as X Jeep 4WD. Hangzhou Xin-Works is a distributor, installer/retailer and importer of off-road specialty products. The company was established in 2003 and currently employs 16 people. 

SEMA News spoke with Mr. Lai, director of sales and marketing for Hangzhou Xin-Works. Lai said that the firm services more than 50 small retail/installation and beauty shops across China, each of which uses foreign direct import brands. The company currently distributes AEV, Warn, Hella, Thule, Cooper, IPF, Optima, Milemarker and Sure Power brands. Its best-selling products include AEV Jeep Wrangler JK and TJ suspensions, AEV 17-inch Pintler wheels, Hella headlights and Thule luggage racks.


SEMA News: What are the most popular modifications among your retail customers and enthusiasts?
Hangzhou Xin-Works: The most popular categories of modifications among retail customers are 2- to 4-inch suspension kits. Anything above 4 inches would not be suitable for the Chinese market.

SN: How has the market changed from two years ago to now?
HXW: Two to three years ago, the Jeep Cherokee was very popular for customization. Enthusiasts would spend approximately $4,000 USD on adding front and rear guards, luggage racks, headlights and some exterior restyling. The Jeep Cherokee trend is now declining, and the Jeep Wrangler is the rising star in our industry.

SN: Please describe your typical customer and how much enthusiasts spend on average.
HXW: The range of customers varies depending on what vehicles they purchase. For example, a Toyota Land Cruiser customer usually spends $1,500–$2,000 USD on customization. One level above that would be a Toyota FJ Cruiser customer who spends $7,000–$9,000. The highest level would be Jeep Wrangler customers, who will spend a minimum of $15,000–$25,000 on customizing their vehicles with the most well-known imported brands.

SN: What are the most modified vehicles in your installation centers?
HXW: The most modified vehicles we see at our shops are the Jeep Wrangler Sahara and Rubicon, Toyota FJ Cruiser, Mitsubishi Pajero and Jeep Cherokee, Liberty and Compass.

SN: What percentage of your business consists of imported foreign parts and accessories?
HXW: About 80% of our business is predominately imported foreign brands, which are distributed among our network of retail shops across China. We also utilize the Internet and have become a supplier to many online retailers as well.

SN: Are you looking for new products? If so, what are the products your company is looking to import into China?
HXW: Yes, we are always looking for Jeep-application products made by U.S. manufacturers. We are especially interested in Jeep lift kits and shocks. Currently, only 30% of our products are imported directly from the United States. We are definitely looking to increase this percentage with specialty products suitable for Chinese enthusiasts.

SN: What suggestions do you have for our member companies looking to sell into China?
HXW: It would be useful if technical installation guides can be translated into Chinese and to establish a warehousing facility in China in the future.  

SEMA News - November 2009 

By Yvonne Wang

The Chinese Specialty-Equipment Market

A brand-new 2009 Jeep Wrangler Rubicon costs $70,000 USD in China. The same vehicle averages only about $25,000 USD in the United States. Mr. Lai, director of sales and marketing for Hangzhou Xin-Works, indicated that the Jeep Wrangler is the new revolution for the off-road market in China. Typical Wrangler customers easily add an additional $15,000 USD in customization, according to this distributor in Hangzhou, 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. The distributor chosen for this month’s international insight into China is Hangzhou Xin-Works, also known as X Jeep 4WD. Hangzhou Xin-Works is a distributor, installer/retailer and importer of off-road specialty products. The company was established in 2003 and currently employs 16 people. 

SEMA News spoke with Mr. Lai, director of sales and marketing for Hangzhou Xin-Works. Lai said that the firm services more than 50 small retail/installation and beauty shops across China, each of which uses foreign direct import brands. The company currently distributes AEV, Warn, Hella, Thule, Cooper, IPF, Optima, Milemarker and Sure Power brands. Its best-selling products include AEV Jeep Wrangler JK and TJ suspensions, AEV 17-inch Pintler wheels, Hella headlights and Thule luggage racks.


SEMA News: What are the most popular modifications among your retail customers and enthusiasts?
Hangzhou Xin-Works: The most popular categories of modifications among retail customers are 2- to 4-inch suspension kits. Anything above 4 inches would not be suitable for the Chinese market.

SN: How has the market changed from two years ago to now?
HXW: Two to three years ago, the Jeep Cherokee was very popular for customization. Enthusiasts would spend approximately $4,000 USD on adding front and rear guards, luggage racks, headlights and some exterior restyling. The Jeep Cherokee trend is now declining, and the Jeep Wrangler is the rising star in our industry.

SN: Please describe your typical customer and how much enthusiasts spend on average.
HXW: The range of customers varies depending on what vehicles they purchase. For example, a Toyota Land Cruiser customer usually spends $1,500–$2,000 USD on customization. One level above that would be a Toyota FJ Cruiser customer who spends $7,000–$9,000. The highest level would be Jeep Wrangler customers, who will spend a minimum of $15,000–$25,000 on customizing their vehicles with the most well-known imported brands.

SN: What are the most modified vehicles in your installation centers?
HXW: The most modified vehicles we see at our shops are the Jeep Wrangler Sahara and Rubicon, Toyota FJ Cruiser, Mitsubishi Pajero and Jeep Cherokee, Liberty and Compass.

SN: What percentage of your business consists of imported foreign parts and accessories?
HXW: About 80% of our business is predominately imported foreign brands, which are distributed among our network of retail shops across China. We also utilize the Internet and have become a supplier to many online retailers as well.

SN: Are you looking for new products? If so, what are the products your company is looking to import into China?
HXW: Yes, we are always looking for Jeep-application products made by U.S. manufacturers. We are especially interested in Jeep lift kits and shocks. Currently, only 30% of our products are imported directly from the United States. We are definitely looking to increase this percentage with specialty products suitable for Chinese enthusiasts.

SN: What suggestions do you have for our member companies looking to sell into China?
HXW: It would be useful if technical installation guides can be translated into Chinese and to establish a warehousing facility in China in the future.  

SEMA News - November 2009 

By Yvonne Wang

The Chinese Specialty-Equipment Market

A brand-new 2009 Jeep Wrangler Rubicon costs $70,000 USD in China. The same vehicle averages only about $25,000 USD in the United States. Mr. Lai, director of sales and marketing for Hangzhou Xin-Works, indicated that the Jeep Wrangler is the new revolution for the off-road market in China. Typical Wrangler customers easily add an additional $15,000 USD in customization, according to this distributor in Hangzhou, 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. The distributor chosen for this month’s international insight into China is Hangzhou Xin-Works, also known as X Jeep 4WD. Hangzhou Xin-Works is a distributor, installer/retailer and importer of off-road specialty products. The company was established in 2003 and currently employs 16 people. 

SEMA News spoke with Mr. Lai, director of sales and marketing for Hangzhou Xin-Works. Lai said that the firm services more than 50 small retail/installation and beauty shops across China, each of which uses foreign direct import brands. The company currently distributes AEV, Warn, Hella, Thule, Cooper, IPF, Optima, Milemarker and Sure Power brands. Its best-selling products include AEV Jeep Wrangler JK and TJ suspensions, AEV 17-inch Pintler wheels, Hella headlights and Thule luggage racks.


SEMA News: What are the most popular modifications among your retail customers and enthusiasts?
Hangzhou Xin-Works: The most popular categories of modifications among retail customers are 2- to 4-inch suspension kits. Anything above 4 inches would not be suitable for the Chinese market.

SN: How has the market changed from two years ago to now?
HXW: Two to three years ago, the Jeep Cherokee was very popular for customization. Enthusiasts would spend approximately $4,000 USD on adding front and rear guards, luggage racks, headlights and some exterior restyling. The Jeep Cherokee trend is now declining, and the Jeep Wrangler is the rising star in our industry.

SN: Please describe your typical customer and how much enthusiasts spend on average.
HXW: The range of customers varies depending on what vehicles they purchase. For example, a Toyota Land Cruiser customer usually spends $1,500–$2,000 USD on customization. One level above that would be a Toyota FJ Cruiser customer who spends $7,000–$9,000. The highest level would be Jeep Wrangler customers, who will spend a minimum of $15,000–$25,000 on customizing their vehicles with the most well-known imported brands.

SN: What are the most modified vehicles in your installation centers?
HXW: The most modified vehicles we see at our shops are the Jeep Wrangler Sahara and Rubicon, Toyota FJ Cruiser, Mitsubishi Pajero and Jeep Cherokee, Liberty and Compass.

SN: What percentage of your business consists of imported foreign parts and accessories?
HXW: About 80% of our business is predominately imported foreign brands, which are distributed among our network of retail shops across China. We also utilize the Internet and have become a supplier to many online retailers as well.

SN: Are you looking for new products? If so, what are the products your company is looking to import into China?
HXW: Yes, we are always looking for Jeep-application products made by U.S. manufacturers. We are especially interested in Jeep lift kits and shocks. Currently, only 30% of our products are imported directly from the United States. We are definitely looking to increase this percentage with specialty products suitable for Chinese enthusiasts.

SN: What suggestions do you have for our member companies looking to sell into China?
HXW: It would be useful if technical installation guides can be translated into Chinese and to establish a warehousing facility in China in the future.  

SEMA News - November 2009 

By Yvonne Wang

The Chinese Specialty-Equipment Market

A brand-new 2009 Jeep Wrangler Rubicon costs $70,000 USD in China. The same vehicle averages only about $25,000 USD in the United States. Mr. Lai, director of sales and marketing for Hangzhou Xin-Works, indicated that the Jeep Wrangler is the new revolution for the off-road market in China. Typical Wrangler customers easily add an additional $15,000 USD in customization, according to this distributor in Hangzhou, 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. The distributor chosen for this month’s international insight into China is Hangzhou Xin-Works, also known as X Jeep 4WD. Hangzhou Xin-Works is a distributor, installer/retailer and importer of off-road specialty products. The company was established in 2003 and currently employs 16 people. 

SEMA News spoke with Mr. Lai, director of sales and marketing for Hangzhou Xin-Works. Lai said that the firm services more than 50 small retail/installation and beauty shops across China, each of which uses foreign direct import brands. The company currently distributes AEV, Warn, Hella, Thule, Cooper, IPF, Optima, Milemarker and Sure Power brands. Its best-selling products include AEV Jeep Wrangler JK and TJ suspensions, AEV 17-inch Pintler wheels, Hella headlights and Thule luggage racks.


SEMA News: What are the most popular modifications among your retail customers and enthusiasts?
Hangzhou Xin-Works: The most popular categories of modifications among retail customers are 2- to 4-inch suspension kits. Anything above 4 inches would not be suitable for the Chinese market.

SN: How has the market changed from two years ago to now?
HXW: Two to three years ago, the Jeep Cherokee was very popular for customization. Enthusiasts would spend approximately $4,000 USD on adding front and rear guards, luggage racks, headlights and some exterior restyling. The Jeep Cherokee trend is now declining, and the Jeep Wrangler is the rising star in our industry.

SN: Please describe your typical customer and how much enthusiasts spend on average.
HXW: The range of customers varies depending on what vehicles they purchase. For example, a Toyota Land Cruiser customer usually spends $1,500–$2,000 USD on customization. One level above that would be a Toyota FJ Cruiser customer who spends $7,000–$9,000. The highest level would be Jeep Wrangler customers, who will spend a minimum of $15,000–$25,000 on customizing their vehicles with the most well-known imported brands.

SN: What are the most modified vehicles in your installation centers?
HXW: The most modified vehicles we see at our shops are the Jeep Wrangler Sahara and Rubicon, Toyota FJ Cruiser, Mitsubishi Pajero and Jeep Cherokee, Liberty and Compass.

SN: What percentage of your business consists of imported foreign parts and accessories?
HXW: About 80% of our business is predominately imported foreign brands, which are distributed among our network of retail shops across China. We also utilize the Internet and have become a supplier to many online retailers as well.

SN: Are you looking for new products? If so, what are the products your company is looking to import into China?
HXW: Yes, we are always looking for Jeep-application products made by U.S. manufacturers. We are especially interested in Jeep lift kits and shocks. Currently, only 30% of our products are imported directly from the United States. We are definitely looking to increase this percentage with specialty products suitable for Chinese enthusiasts.

SN: What suggestions do you have for our member companies looking to sell into China?
HXW: It would be useful if technical installation guides can be translated into Chinese and to establish a warehousing facility in China in the future.  

SEMA News - November 2009 

By Linda Spencer

Developments in Key Global Markets

This is the latest periodic roundup of legislative/regulatory developments in key global markets. This edition includes updates from Europe, Australia and the global harmonization body looking at creating uniform standards for a range of products—including automotive aftermarket products—under the auspices of the United Nations. SEMA members may contact Linda Spencer for more information on any of these issues.

European Officials Send Message to National Governments: Stop Hindering Intra-European Trade of Goods

European officials have recently implemented new laws to ensure that the 27 countries comprising the European Union allow the sale and use of specialty-equipment products and other manufactured goods. If the products are legally sold in one member state, they must also be allowed to be sold within the borders of the others. EC No. 764/2008, as it is officially known, is expected to have the largest impact on countries that have the greatest government oversight over the industry, such as Germany and Spain, which require much more extensive testing, and in those countries that have outright banned many or nearly all specialty-equipment products, such as France and Italy.

The new stipulations are designed to combat the common practice of government officials banning or limiting the use of a product through national laws—or, more typically, technical guidelines or other semi-official documents—from intra-Europe trade. The regulations now clearly state that “…a member state may not prohibit the sale on its territory of products which are lawfully marketed in another member state, even where those products were manufactured in accordance with technical rules different from those to which domestic products are subject.”

In an important test case, a U.K. carbon wheel company, DYMAG, which has numerous customers in the Netherlands and the United Kingdom, sold some of its motorcycle wheels to a German consumer in Ludwigsburg, southern Germany. State officials refused to provide the consumer with a license to drive the motorcycle due to the presence of these wheels. DYMAG fought the case, and an administrative court issued a ruling on July 9 of this year in support of the consumer, noting that the state had not provided proof that the product was dangerous and thus should be banned. The court said, in part, “The long-lasting, unproblematic and accident-free use in Great Britain and the Netherlands in public road traffic and at international motorcycle racing makes such proof unlikely.” State officials are appealing the ruling.

Unfair Advantage Alleged: Aluminum Wheels From China Under Investigation in Europe

The European Commission (EC) has opened an investigation into the possible dumping of aluminum road wheels into the European market by Chinese manufacturers. The petition was brought by the Association of European Wheel Manufacturers, which claims that the wheels are being sold at below-market prices. The EC is required to make a decision with 15 months of the August publication of the start of the investigation in the Official Journal of the European Union.

Half-way There: U.K. Scrappage Program to Continue, But No Plans to Extend Beyond Original Deadline

British officials have indicated that there are no plans to extend the car-scrapping scheme that will run until early next year unless the ₤300 million ($495 million USD) that has been allocated is spent. Currently, about half of the funds have been spent, with motorists receiving ₤2,000 ($3,312 USD) to trade in cars more than 10 years old for new models.
 
German Scrappage Program Ends, But Not Before Costing Government Nearly $7.5 Billion USD

In Germany, the popular program in which the government provided subsidies of €2,500 ($3,590 USD) to scrap old cars to buy new vehicles has ended with a total €5 billion ($7.47 billion USD) paid out to nearly 2 million applicants, The German automobile association VDA has forecasted that new-car registrations in Germany will total more than 3.5 million units this year but decline in 2010.

European Commission Delays Tobacco-Style Labeling for Car Manufacturers

The EC has delayed—for at least a year—the development of a proposal to require that a minimum of 20% of the space for new-vehicle advertising be devoted to information on fuel economy and C02 emissions. The regulations would cover any magazine, television or billboard advertising or point-of-sale displays in showrooms. The proposal was originally planned to be considered this year, but the development of these warning labels has been pushed back until 2010.

The new requirements, mirrored after measures imposed on cigarette producers, is being pushed by the EC and a number of members of the Parliament, citing a “dissatisfaction” with car assemblers’ compliance with more general guidelines in place since 1999 that call on them to include information [regarding fuel economy and C02 emissions] that is “easily legible and no less pronounced than the main part of the advertising message” and “easily understood, even when read briefly.”

Meanwhile, the EC has urged the car industry to sign a European code of good practices on car marketing and advertising.

Don’t Tell, Don’t Ask: Chip Tuning Being Approved in Germany, But Legality Remains Murky

The legality of chip tuning remains murky in Germany following a notice by the German government that, effective immediately, they are prohibited from approving engine-management software (chip tuning) modifications. The government has cited lack of knowledge on the effects these modifications have on exhaust emissions as well as other vehicle systems, such as braking and steering. Despite this edict, engine-management systems are being approved by some technical services using the same tests that are currently used for general engine tuning (such as tests for headers, valves and engine swaps). However, other testing facilities are declining to test these products because no clear procedure has been defined for them and issued certificates might eventually end up being rescinded for that reason.

The German specialty-equipment association, VDAT, has asked the German Transport Ministry to clarify the situation and to provide the industry with the specific test requirements. They have not yet heard back from the government.

Selling Into Germany—Recyclable Packaging a Requirement

As of January 2009, all new packaging sold in Germany must be registered with an officially recognized German recycler or risk a fine of €50,000 ($77,855 USD). The obligation to enroll in a recycling system (to reclaim retail packaging) rests with the originator of the packaged merchandise (i.e., the party that first brings the merchandise-filled packaging into circulation). The government has a list of approved companies with which firms may contract. For small-volume shippers, the annual fees for so-called “dual-system” companies appear to start at about €75 ($90 USD).

As a basic rule, anyone introducing packaging materials to be discarded by the end user will be required to participate. The importer, not the manufacturer, is generally responsible for meeting the recycling and packaging requirements. Yet U.S. companies will likely face a new hurdle in selling into the market, as importers will be liable for all products they carry. Importers of overseas products are typically offering to register the packaging, though the cost of that registration is typically passed onto the manufacturer.

Italian Companies Seek Allowance of German-Approved Products

Italy currently bans all specialty-equipment products unless an EU-wide or global harmonized standard exists for the product. So-called harmonized or common laws exist for a limited number of products, including exhaust systems, trailer couplings, lighting devices, automotive-related electronic products, brake linings, mirrors and bull bars, but no such multilateral regulations or laws govern the vast majority of optical and performance-enhancing products. The only other exception is if the product has been approved by the vehicle manufacturers. The industry in Italy has appealed to the government to allow aftermarket products and has offered to support legislation that allows products that have German approval to be allowed into Italy. As Italy does not have a domestic network of testing agencies, the industry is urging the government to allow consumers to obtain approvals according to German regulations from German testing agencies located throughout the world, including in Italy. The government is requiring a product-by-product phase-in, with wheels being among the first products that are likely to be approved through the system before the end of this year.

French Insurance Inspectors the New Specialty-Equipment Experts?

A new national law in France, entitled Procédure Véhicule Endommagé, authorized insurance industry personnel to conduct inspections to determine whether vehicles that have been involved in an accident are still road-worthy. Buried in this law was language that the insurance industry should also note the presence of aftermarket specialty products and whether the products conform with relevant laws. The local specialty-equipment association, FICAT, protested this provision, noting that these private-sector employees are not equipped to judge the legality of specialty products and might simply declare them banned. The government has tentatively agreed to remove specialty products from the scope of the law, but the industry remains vigilant until the changes are made official.

Dollars/Euros/Pounds But No Sense: Proposal Being Discussed to Extend Coverage of UNECE Harmonized Wheel Standard to Cover Specialty Wheels

Several representatives on the harmonization panel have called for the scope of the current United Nations Economic Commission for Europe (UNECE) wheel regulation (UNECE 124) to be extended to specialty wheels that, as spelled out in the document, are known as other-than-OE-sized wheels. There is speculation that countries such as Germany, which currently have one of the only wheel tests for specialty wheels throughout Europe, will oppose such a measure because they will lose their monopoly. Other countries that have a network of indigenous testing services but lack a wheel regulation might support such a measure in an effort to create some business for these entities.

UNECE 90 spells out the proposed standards for brakes to be applicable throughout Europe and for all other countries that have agreed to abide by the rules of this global body (including South Korea, Japan and Australia). The regulation deals only with replacement brakes and is silent on specialty brakes.

A Break for Specialty Brakes: ETO-Sponsored Clarification on UNECE Harmonized Rules on Brakes Moving Forward

NECE 90 spells out the proposed standards for brakes to be applicable throughout Europe and for all other countries that have agreed to abide by the rules of this global body (including South Korea, Japan and Australia). The regulation deals only with replacement brakes and is silent on specialty brakes. The European Tuning Organization (ETO) has sought to clarify that specialty brakes, though not mentioned in this regulation, are still permitted in Europe. This step was necessary as many European countries are apt to consider the lack of a specific measure on specialty brakes within this document as the equivalent of a ban on such products. The panel appears favorable to supporting the pan-European association, of which SEMA is a member.

The Hoon Squad: New South Wales Suspension Restrictions Narrowly Averted

Proposed suspension restrictions in the Australian state of New South Wales (NSW) have been put on hold at least temporarily thanks to a vigorous campaign mounted by the Australian Automotive Aftermarket Association (AAAA) and local industry. In July, NSW Transport Minister for Roads Michael Daley had proposed a maximum height change—raising or lowering modifications—to 5 centimeters (2 inches) and require these changes to undergo an “engineering inspection.” Local industry protested, led by AAAA, and the minister has now agreed to convene an advisory group (including industry) that can formulate some recommendations.

A press release from Daley’s office announced the proposed new restrictions on July 16, 2009, noting that the changes were being made to deter “car hoons.” Hoon is a local derogatory term used in Australia to refer to young people who drive “loud” cars and are “prone to street racing.” In the press release, entitled “Tough New Rules for Car Hoons,” the Minister stated: “I don’t want to see young hoons putting their lives or the lives of others at risk just because they think their car looks better 15 centimeters closer to the ground. These hoons may think their car looks cool, but as far as I’m concerned, anything more than a 5-centimeter change in a car’s suspension is dangerous and doesn’t belong on our roads.”

The AAAA is seeking “self certification” of suspension modifications of +/-5 centimeters without the need for an authorized engineer to sign off on such vehicles. Currently, throughout most of Australia, vehicles can be raised or lowered by up to 5 centimeters (2 inches) without approval and by up to 15 centimeters (5.9 inches) with authorized engineering approval. This would be similar to laws that exist elsewhere in Australia.

Lack of Testing Facilities and Vague Regulations Put Following Industry Complaints on Hold

The Australian state of Western Australia (WA) proposed new oversight over vehicles with engine modifications. With no input from industry, the WA Department of Transport introduced a regulation (Bulletin IB-124A) requiring special emissions testing for all vehicles that have been “significantly modified.” No definition of “significantly modified” was provided in the regulation.

The Australian Automotive Aftermarket Association has been at the forefront of industry efforts to seek a halt to these new regulations, which were drafted without the benefit of input from the industry. In the latest developments, the government has called for a delay in order to convene a panel that includes industry experts to acknowledge that the new requirements were not well thought-out and, in any case, that they did not have a structure in place. It turns out that there is currently only one testing facility in the entire state accredited to carrying out IM240 testing.  

SEMA News - November 2009 

By Linda Spencer

Developments in Key Global Markets

This is the latest periodic roundup of legislative/regulatory developments in key global markets. This edition includes updates from Europe, Australia and the global harmonization body looking at creating uniform standards for a range of products—including automotive aftermarket products—under the auspices of the United Nations. SEMA members may contact Linda Spencer for more information on any of these issues.

European Officials Send Message to National Governments: Stop Hindering Intra-European Trade of Goods

European officials have recently implemented new laws to ensure that the 27 countries comprising the European Union allow the sale and use of specialty-equipment products and other manufactured goods. If the products are legally sold in one member state, they must also be allowed to be sold within the borders of the others. EC No. 764/2008, as it is officially known, is expected to have the largest impact on countries that have the greatest government oversight over the industry, such as Germany and Spain, which require much more extensive testing, and in those countries that have outright banned many or nearly all specialty-equipment products, such as France and Italy.

The new stipulations are designed to combat the common practice of government officials banning or limiting the use of a product through national laws—or, more typically, technical guidelines or other semi-official documents—from intra-Europe trade. The regulations now clearly state that “…a member state may not prohibit the sale on its territory of products which are lawfully marketed in another member state, even where those products were manufactured in accordance with technical rules different from those to which domestic products are subject.”

In an important test case, a U.K. carbon wheel company, DYMAG, which has numerous customers in the Netherlands and the United Kingdom, sold some of its motorcycle wheels to a German consumer in Ludwigsburg, southern Germany. State officials refused to provide the consumer with a license to drive the motorcycle due to the presence of these wheels. DYMAG fought the case, and an administrative court issued a ruling on July 9 of this year in support of the consumer, noting that the state had not provided proof that the product was dangerous and thus should be banned. The court said, in part, “The long-lasting, unproblematic and accident-free use in Great Britain and the Netherlands in public road traffic and at international motorcycle racing makes such proof unlikely.” State officials are appealing the ruling.

Unfair Advantage Alleged: Aluminum Wheels From China Under Investigation in Europe

The European Commission (EC) has opened an investigation into the possible dumping of aluminum road wheels into the European market by Chinese manufacturers. The petition was brought by the Association of European Wheel Manufacturers, which claims that the wheels are being sold at below-market prices. The EC is required to make a decision with 15 months of the August publication of the start of the investigation in the Official Journal of the European Union.

Half-way There: U.K. Scrappage Program to Continue, But No Plans to Extend Beyond Original Deadline

British officials have indicated that there are no plans to extend the car-scrapping scheme that will run until early next year unless the ₤300 million ($495 million USD) that has been allocated is spent. Currently, about half of the funds have been spent, with motorists receiving ₤2,000 ($3,312 USD) to trade in cars more than 10 years old for new models.
 
German Scrappage Program Ends, But Not Before Costing Government Nearly $7.5 Billion USD

In Germany, the popular program in which the government provided subsidies of €2,500 ($3,590 USD) to scrap old cars to buy new vehicles has ended with a total €5 billion ($7.47 billion USD) paid out to nearly 2 million applicants, The German automobile association VDA has forecasted that new-car registrations in Germany will total more than 3.5 million units this year but decline in 2010.

European Commission Delays Tobacco-Style Labeling for Car Manufacturers

The EC has delayed—for at least a year—the development of a proposal to require that a minimum of 20% of the space for new-vehicle advertising be devoted to information on fuel economy and C02 emissions. The regulations would cover any magazine, television or billboard advertising or point-of-sale displays in showrooms. The proposal was originally planned to be considered this year, but the development of these warning labels has been pushed back until 2010.

The new requirements, mirrored after measures imposed on cigarette producers, is being pushed by the EC and a number of members of the Parliament, citing a “dissatisfaction” with car assemblers’ compliance with more general guidelines in place since 1999 that call on them to include information [regarding fuel economy and C02 emissions] that is “easily legible and no less pronounced than the main part of the advertising message” and “easily understood, even when read briefly.”

Meanwhile, the EC has urged the car industry to sign a European code of good practices on car marketing and advertising.

Don’t Tell, Don’t Ask: Chip Tuning Being Approved in Germany, But Legality Remains Murky

The legality of chip tuning remains murky in Germany following a notice by the German government that, effective immediately, they are prohibited from approving engine-management software (chip tuning) modifications. The government has cited lack of knowledge on the effects these modifications have on exhaust emissions as well as other vehicle systems, such as braking and steering. Despite this edict, engine-management systems are being approved by some technical services using the same tests that are currently used for general engine tuning (such as tests for headers, valves and engine swaps). However, other testing facilities are declining to test these products because no clear procedure has been defined for them and issued certificates might eventually end up being rescinded for that reason.

The German specialty-equipment association, VDAT, has asked the German Transport Ministry to clarify the situation and to provide the industry with the specific test requirements. They have not yet heard back from the government.

Selling Into Germany—Recyclable Packaging a Requirement

As of January 2009, all new packaging sold in Germany must be registered with an officially recognized German recycler or risk a fine of €50,000 ($77,855 USD). The obligation to enroll in a recycling system (to reclaim retail packaging) rests with the originator of the packaged merchandise (i.e., the party that first brings the merchandise-filled packaging into circulation). The government has a list of approved companies with which firms may contract. For small-volume shippers, the annual fees for so-called “dual-system” companies appear to start at about €75 ($90 USD).

As a basic rule, anyone introducing packaging materials to be discarded by the end user will be required to participate. The importer, not the manufacturer, is generally responsible for meeting the recycling and packaging requirements. Yet U.S. companies will likely face a new hurdle in selling into the market, as importers will be liable for all products they carry. Importers of overseas products are typically offering to register the packaging, though the cost of that registration is typically passed onto the manufacturer.

Italian Companies Seek Allowance of German-Approved Products

Italy currently bans all specialty-equipment products unless an EU-wide or global harmonized standard exists for the product. So-called harmonized or common laws exist for a limited number of products, including exhaust systems, trailer couplings, lighting devices, automotive-related electronic products, brake linings, mirrors and bull bars, but no such multilateral regulations or laws govern the vast majority of optical and performance-enhancing products. The only other exception is if the product has been approved by the vehicle manufacturers. The industry in Italy has appealed to the government to allow aftermarket products and has offered to support legislation that allows products that have German approval to be allowed into Italy. As Italy does not have a domestic network of testing agencies, the industry is urging the government to allow consumers to obtain approvals according to German regulations from German testing agencies located throughout the world, including in Italy. The government is requiring a product-by-product phase-in, with wheels being among the first products that are likely to be approved through the system before the end of this year.

French Insurance Inspectors the New Specialty-Equipment Experts?

A new national law in France, entitled Procédure Véhicule Endommagé, authorized insurance industry personnel to conduct inspections to determine whether vehicles that have been involved in an accident are still road-worthy. Buried in this law was language that the insurance industry should also note the presence of aftermarket specialty products and whether the products conform with relevant laws. The local specialty-equipment association, FICAT, protested this provision, noting that these private-sector employees are not equipped to judge the legality of specialty products and might simply declare them banned. The government has tentatively agreed to remove specialty products from the scope of the law, but the industry remains vigilant until the changes are made official.

Dollars/Euros/Pounds But No Sense: Proposal Being Discussed to Extend Coverage of UNECE Harmonized Wheel Standard to Cover Specialty Wheels

Several representatives on the harmonization panel have called for the scope of the current United Nations Economic Commission for Europe (UNECE) wheel regulation (UNECE 124) to be extended to specialty wheels that, as spelled out in the document, are known as other-than-OE-sized wheels. There is speculation that countries such as Germany, which currently have one of the only wheel tests for specialty wheels throughout Europe, will oppose such a measure because they will lose their monopoly. Other countries that have a network of indigenous testing services but lack a wheel regulation might support such a measure in an effort to create some business for these entities.

UNECE 90 spells out the proposed standards for brakes to be applicable throughout Europe and for all other countries that have agreed to abide by the rules of this global body (including South Korea, Japan and Australia). The regulation deals only with replacement brakes and is silent on specialty brakes.

A Break for Specialty Brakes: ETO-Sponsored Clarification on UNECE Harmonized Rules on Brakes Moving Forward

NECE 90 spells out the proposed standards for brakes to be applicable throughout Europe and for all other countries that have agreed to abide by the rules of this global body (including South Korea, Japan and Australia). The regulation deals only with replacement brakes and is silent on specialty brakes. The European Tuning Organization (ETO) has sought to clarify that specialty brakes, though not mentioned in this regulation, are still permitted in Europe. This step was necessary as many European countries are apt to consider the lack of a specific measure on specialty brakes within this document as the equivalent of a ban on such products. The panel appears favorable to supporting the pan-European association, of which SEMA is a member.

The Hoon Squad: New South Wales Suspension Restrictions Narrowly Averted

Proposed suspension restrictions in the Australian state of New South Wales (NSW) have been put on hold at least temporarily thanks to a vigorous campaign mounted by the Australian Automotive Aftermarket Association (AAAA) and local industry. In July, NSW Transport Minister for Roads Michael Daley had proposed a maximum height change—raising or lowering modifications—to 5 centimeters (2 inches) and require these changes to undergo an “engineering inspection.” Local industry protested, led by AAAA, and the minister has now agreed to convene an advisory group (including industry) that can formulate some recommendations.

A press release from Daley’s office announced the proposed new restrictions on July 16, 2009, noting that the changes were being made to deter “car hoons.” Hoon is a local derogatory term used in Australia to refer to young people who drive “loud” cars and are “prone to street racing.” In the press release, entitled “Tough New Rules for Car Hoons,” the Minister stated: “I don’t want to see young hoons putting their lives or the lives of others at risk just because they think their car looks better 15 centimeters closer to the ground. These hoons may think their car looks cool, but as far as I’m concerned, anything more than a 5-centimeter change in a car’s suspension is dangerous and doesn’t belong on our roads.”

The AAAA is seeking “self certification” of suspension modifications of +/-5 centimeters without the need for an authorized engineer to sign off on such vehicles. Currently, throughout most of Australia, vehicles can be raised or lowered by up to 5 centimeters (2 inches) without approval and by up to 15 centimeters (5.9 inches) with authorized engineering approval. This would be similar to laws that exist elsewhere in Australia.

Lack of Testing Facilities and Vague Regulations Put Following Industry Complaints on Hold

The Australian state of Western Australia (WA) proposed new oversight over vehicles with engine modifications. With no input from industry, the WA Department of Transport introduced a regulation (Bulletin IB-124A) requiring special emissions testing for all vehicles that have been “significantly modified.” No definition of “significantly modified” was provided in the regulation.

The Australian Automotive Aftermarket Association has been at the forefront of industry efforts to seek a halt to these new regulations, which were drafted without the benefit of input from the industry. In the latest developments, the government has called for a delay in order to convene a panel that includes industry experts to acknowledge that the new requirements were not well thought-out and, in any case, that they did not have a structure in place. It turns out that there is currently only one testing facility in the entire state accredited to carrying out IM240 testing.  

SEMA News - November 2009

By Megan McKernan

Custom Wheels and Performance Tires

 

The specialty-equipment market is divided into nine niches. For each of these, there are three segments, one of which is the wheel, tire and suspension category. Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).

For the average consumer, wheels and tires are a matter of function. But for an automotive enthusiast, wheels and tires are also about looks and performance. This is evidenced by the popularity of specialty-equipment products, such as low-profile tires and big rims. Custom wheels are often purchased for the addition they make to the overall look of a vehicle. But that is not always the case. A pickup owner who tows a boat or a race-car trailer is also concerned with the strength of the wheel. He or she will likely pick a forged-aluminum wheel rather than a cast-aluminum or multipiece wheel. Of course, this does not mean that design is ignored. There are awesome-looking forged-aluminum wheels available in the market. A similar scenario holds true for tires as well. Enthusiasts will typically purchase a set of new tires to go along with their custom wheels. And, contrary to what some might think, not all tires are created equal. Some are meant for high-performance driving, others are for off-road use, and still others are made for wet road conditions.

In recent years, the original-equipment manufacturers (OEMs) have ventured into the custom wheel market. Option packages now include wheel upgrades on many vehicles, such as the Chevrolet Silverado and Dodge Ram 1500. Many vehicles have been equipped with performance tires. For example, the Cadillac STS comes standard with tires made for performance driving, and a Chevy Tahoe Z71 off-road package includes off-road tires. In cases such as these, it is more likely that a vehicle owner would simply change the wheels rather than the wheels and tires together.

What SEMA Members Are Saying

One of SEMA’s numerous councils is the Wheel & Tire Council (WTC). Input from council members is very valuable when trying to get a handle on the market. After all, these folks are the ones who live the market every day. According to some WTC members, 2009 is down a bit compared to 2008 but, as most of them mentioned, this was to be expected. Carl Robinson of Mickey Thompson Performance Tires noticed that wheel sales are down, particularly for 4x4 vehicles and lifted trucks. On the other hand, companies such as BMF Wheels, which has introduced new wheel designs, have noticed an increase in sales in the past couple of years. Barry Horlick of Voxx Products Inc. believes that “…sales for calendar year 2009 will actually be slightly better than the previous calendar year,” with the expectation that the last four months of 2009 will be healthier than the first eight.

SEMA members have noticed some trends in the wheel and tire market as well. It seems that 17- to 20-inch wheels remain the most popular. WTC Select Committee member Kelly Austin pointed out that trends often differ across different regions of the United States. He said that it’s best “…to listen to your wholesale customers and attend car shows where your products are sold most.” Horlick noticed an increase in sales of OEM replacement-size wheels as dealers work to jazz up their vehicles to move inventory.

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Robinson. Russ Fuller of Revolution Supply Inc. has seen an increase in demand for wheels and tires for Ford vehicles. And Horlick noted an emphasis on options for “…CUV, passenger and tuner applications rather than for the truck and SUV market.”

In fact, there may be a correlation between wheel purchases and the decrease in sales for trucks and SUVs and subsequent increases seen in the CUV market. The specialty-equipment market has typically ignored the customization of crossover vehicles, but as the popularity of this segment grows, more attention should be focused here.

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Carl Robinson of Mickey Thompson Performance Tires.

Brandon Stotsenburg of Mobile Awareness LLC mentioned the customer’s need for value. Joe Schaefer of Konig Motoring Accessories echoed that sentiment: “Whenever we deal with a tough economy, we always find that people become better shoppers and look to get the most for their money.”

Custom Wheels

One-piece cast wheels represent the majority of custom wheels offered today. These wheels can be painted, polished or chrome plated. Painted wheels—particularly black—are a popular choice among enthusiasts.There are more and more companies offering wheels that look similar to race-car wheels. As mentioned earlier, forged-aluminum wheels are popular for truck owners who tow a lot of weight. Forged wheels are much stronger and more structurally sound than multipiece wheels. Interestingly, multipiece wheels are typically at the higher end of the price spectrum of the custom wheel market. The wheels, often referred to as “bling,” usually fall into this category. SEMA market research reported that custom wheel sales reached $3.8 billion in 2008 in retail sales, down from $4.7 billion in 2007.

Performance Tires

There are various types of performance tires offered in the market today. Tires are made for high-speed driving, racing, snow conditions or off-road use. Enthusiasts with pickups will often replace their stock tires with a set that has a much wider stance. Owners of vehicles such as the Chrysler 300 or Cadillac Escalade will often choose low-profile tires—the type that does not have much rubber between the wheel and tread. Street-performance vehicles will typically be equipped with performance-built tires. In many cases, the tire sizes differ between the front of the vehicle to the back.

Enthusiast Data

Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).

SEMA’s market research department has traditionally surveyed automotive enthusiasts throughout the year to track various buying trends. In the 2008 Automotive Lifestyles Survey, SEMA found that 33% of enthusiasts had purchased custom wheels for their vehicles, while 19% planned to purchase custom wheels in the next 12 months. Twenty-four percent of enthusiasts had purchased plus-size tires, and 36% had purchased performance tires. Eleven percent planned to purchase plus-size tires, while 16% planned to purchase performance tires.

The 2009 SEMA Show will be home to more than 260 wheel and tire companies for four days. The aisles of lower South Hall at the Las Vegas Convention Center will be filled with shiny wheels and tires of all sizes. Attendees will have the opportunity to view the latest trends in the wheel and tire market and be able to talk directly to the companies that design and produce them. Some of the most exciting features of lower South Hall are vehicles equipped with the latest and greatest that wheel and tire manufacturers have to offer.

Wheels and tires might be a necessity, but that does not mean they can’t be cool.