Ford is going small and Honda is thinking big. Perhaps no duality better illustrates the state of the American automobile industry, as auto executives gathered last week at the Management Briefing Seminars, hosted by the Center for Automotive Research in Traverse City, Michigan, to discuss a market changing faster than anyone expected.

Ford President of the Americas Mark Fields is betting that his company can turn double-digit profits on small-car sales in the United States by adding successful European models to the domestic lineup and ramping up production on a global small-car platform. "We are very much playing to win in small cars," Fields told the Detroit News.

Fields believes American consumers are willing to pay more for small cars that offer high levels of quality and comfort, as well as "cutting-edge" features that younger consumers demand. The fact that buyers are demanding small cars again is no longer news. The Detroit News reports that in May, 50% of all vehicle sales were four-cylinder models—the first time in U.S. history that has happened.

Meanwhile, Toyota announced that its next-generation Prius will debut at the 2009 Detroit Auto Show. Bob Carter, Toyota group vice president and general manager for the Toyota division at Toyota Motor Sales USA, also noted that Lexus would also offer a hybrid with a different design than the Prius. Consumers want more hybrids, more four-cylinders and "vehicles that exceed 30 miles per gallon," Carter told the conference.

Honda likewise plans to introduce a new five-door, five-passenger hybrid by April 2009 priced below the Prius and current Civic Hybrid. Both automakers are acutely aware of the shift away from trucks, but both believe in the long-term potential of the market.

American Honda Executive Vice President Dick Colliver told the conference that his company sees the market shifting back to larger vehicles once consumers adjust to higher fuel prices—even declaring that the "shock from oil prices is over."

Toyota's Carter notes that the large-truck market may fall as low as 1.4 million units this year, down from 2.15 million last year, reports Bloomberg.com. Even at 1.4 million, Carter says, it can't be ignored. Toyota adjustments include converting an Indiana plant slated to produce Tundras to now producing Highlanders.

Carter maintains that the U.S. truck market is still one of the most viable, largest segments on the industry. "We are confident in the long-term viability of the fullsize truck market," he says.

Chrysler remains unconvinced, however. According to The New York Times, the automaker believes the SUV era is over and announced that it was converting a plant used to produce Jeep Grand Cherokees.

Consumer Expectation Outpacing Auto Industry's Delivery
At the Management Briefing Seminars, IBM released a report showing that the auto industry is several steps behind the needs of increasingly sophisticated consumers. The IBM Automotive 2020 Study, based on global collaboration with 125 auto industry leaders, says consumers are demanding more information and entertainment from their vehicles.

They also want increased safety, economy and environmental responsibility, spurring the development of cars and trucks that use electronics to provide greater assistance with navigation and active safety (systems that monitor and react to changing road conditions).

The specialty-equipment industry will appreciate the sentiments behind one of the report's five imperatives: simplify complexity. As vehicles become more connected and intelligent, the electronics and embedded software become more complex. IBM recommends that OEMs establish common processes and standards to encourage innovation from traditional and non-traditional (read: specialty-equipment) suppliers to be rapidly integrated.

As automakers refocus their attention away from trucks and onto smaller cars, they face the dual challenge of manufacturing cars for consumers demanding more choice and personalization options.

“The auto industry is shifting away from a small number of high-volume, big-hit models and one-size-fits-all products, and moving toward a larger number of low-volume niches and smaller segments of customized products,” says John Waraniak, SEMA vice president of vehicle technology, who also chaired a seminar dedicated to specialty-equipment customization and spoke on a panel discussing the future of "connected" vehicles.

“These are SEMA’s roots, as well as the future and strength of SEMA companies," he adds. "Small is the new big, and SEMA is a lot of small to midsize companies with big ideas.”

For more information about SEMA's vehicle technology programs and Technical Briefing Seminars, please visit www.sema.org/tbs. 

Ford's press conference from the 2007 SEMA Show.

Exhibitors are invited to announce newsworthy information by conducting a press conference during the 2008 SEMA Show.

To schedule a press conference, exhibitors must submit Media Conference Applications by Friday, August 29, 2008. Media conferences are scheduled in advance by SEMA staff to avoid conflicts. Due to limited time slots, all media conference topics must be pre-qualified by SEMA. Exhibitors are not authorized to hold media conferences outside of the official schedule or off-site during Show hours.

To download the Media Conference Application, visit www.SEMAShow.com/mediaconference.

The Professional Restylers Organization (PRO) offers a new business manual to deliver innovative and practical solutions to improve restyling businesses.

The PRO Business Development Guidebook: The Nuts and Bolts of Running a Successful Restyling Business provides chapter-by-chapter strategies for running a successful business, including developing a comprehensive business plan, understanding the basics of finance, tips for making quality and service the hallmarks of your business and training skilled employees, among other advice. 

“The PRO Business Development Guidebook was created to serve as an expert reference manual to help restyling companies stay ahead of the competition in today’s ever-changing marketplace,” said Ellen McKoy, SEMA senior director of dealer relations. “It provides step-by-step advice in excellent detail, such as guidelines for drafting business plans and templates for financial forecasting, so business owners can really use the information in their daily operations.” 

Members of PRO and TORA, the Truck and Off-Road Alliance, also a SEMA council, may purchase copies of The PRO Business Development Guidebook at the introductory price of $49.95. The non-member price is $149.95.

Additional business tools available from the PRO Council include the PRO Sales Training Manual: A Restyler’s Guide to Selling Dealer-Direct, a manual for developing profit-generating accessory programs; Vehicle Accessorization: The Fast Track to Greater Profits, a sales training DVD and companion brochure; and the Owner Information Packet, a two-part glovebox insert for consumers to store product warranties, accessory operating instructions and more.

For more information on any of these products, call SEMA at 909/396-0289, ext. 103, or visit www.sema.org/pro.

The best way to maximize your SEMA Show investment is by being prepared. Tune in to SEMA's webinar on Thursday, August 28, to learn tips on how to avoid common exhibitor pitfalls and ways to effectively market your company and products at the 2008 SEMA Show. SEMA Show management veteran Chuck Schwartz, chairman of ConvExx, will show you how to properly brand your exhibiting product and control your exhibiting costs. This valuable session will streamline your Show plan and help first-time exhibitors and SEMA Show veterans save time and money.

Title: "25 Common Mistakes Made by SEMA Show Exhibitors"
When: Thursday, August 28, 10:00 a.m.–11:00 a.m. (PST)
Presenter: Chuck Schwartz, CEM, Chairman, ConvExx

To register now for this webinar, click here.

And don't forget to mark your calendar for the October 2nd webinar, "United States and the World Economy: Will it Shift Forward?" presented by William Strauss, senior economist and economic advisor, Federal Reserve Bank of Chicago. Strauss has been with the Chicago Federal Reserve Bank since 1982 and his primary responsibilities include analyzing the current performance of both the Midwest economy and the manufacturing sector for use in monetary policy. During William’s presentation you will get a better understanding of the current state of the U.S. economy, its future outlook and primary risks facing the overall health of the system.

SEMA's Webinar Program
The SEMA webinar program brings the world-class business seminars featured during the SEMA Show right to your desktop. Different business-building sessions are constantly added to the program, offering members the latest insight and practices from today’s leading speakers.

All SEMA webinars are conducted live and are open to all employees of SEMA-member companies free of charge. To participate, all you need is a computer with Internet access and a telephone. All previous SEMA webinars are available for download by clicking here. To view upcoming presentations that you can attend via telephone and Internet, click here.

Filler for eNews

Filler for eNews

Automotive spy photog Brenda Priddy says this heavily dressed SUV/wagon-looking thing is Acura's unnamed sport crossover for 2010.

"In typical Acura fashion, early prototypes are often tested only after dark, and this was no exception." Priddy says. Contrary to the camouflaged disguise, Priddy says sources tell her that the vehicle will have more coupe-like styling. She also believes the CUV may ride on the same chassis as the newly debuted 2009 TL and would probably indicate very similar V6 powertrains.

Filler for eNews

Secretary of the Interior Dirk Kempthorne issued a proposal to allow a federal agency to approve a commercial development project (road, power plant, homes, etc.) if it determines on its own that the project will only have an indirect effect on a threatened or endangered species. 

Under current law, all federal agencies must first consult the U.S. Fish and Wildlife Service or the National Oceanic and Atmospheric Administration if there is the potential to impact an endangered species. This has lead to a review process that can last months or years and then be subject to lawsuits. 

There is general consensus in Congress that the Endangered Species Act (ESA) needs to be updated since more money has been spent on ESA lawsuits than in protecting plants and animals. Simultaneously, SEMA contends that the ESA has been responsible for closing millions of acres of land without accomplishing its mission of protecting species. The issue is of consequence to SEMA members that market products for use on off-highway vehicles since OHV access has been denied to roads and trails in ESA-protected areas. 

Lawmakers have been unable to agree on a common approach for legislative changes so the Bush Administration is seeking ways to accomplish these goals, if possible, through regulations. For example, the proposed rule would limit the ability of the government to use the ESA as a tool for regulating climate change (eg., linking reduced habitat to greenhouse gas emissions from a power plant).  A final rule is expected to be issued by the end of 2008.

For additional information, contact Stuart Gosswein at stuartg@sema.org.

Nearly 2.1 million acres of land in central Utah would be open to off-highway vehicles (OHVs) and energy development under a proposed resource management plan issued by the federal government. The land is controlled by the U.S. Bureau of Land Management’s (BLM) Richfield office and located in Sanpete, Sevier, Wayne, Piute, Garfield and Kane Counties. Among other actions, the plan would permit substantially increased OHV use in the Factory Butte badlands area, which has been subject to restricted access due to concerns about endangered plants. 

The BLM is in the process of issuing six separate land-use plans that will determine how 11 million acres of agency-controlled Utah lands are managed over the next 10–15 years. Plans covering the Moab and Kanab regions have already been drafted, while plans for Monticello, Price and Vernal are still being prepared. All plans are subject to public comment.

Land access is an important issue to SEMA since many members produce equipment for the off-road community. SEMA supports rational land-management decisions that provide balanced protection with opportunities for quality recreation experiences. Click here to view the Richfield resource management plan.

For additional information, contact Stuart Gosswein at stuartg@sema.org.