Product reviews are a popular place for future consumers to read information about quality, performance and value. Reviews can sway the opinion of potential consumers to a certain product based on other people’s opinions. According to SEMA’s 2007 Automotive Lifestyles Survey, the following are the top five ways consumers gather information prior to purchasing specialty equipment:

Thanks to clean diesel technology and the need to improve fuel mileage, diesels are being seen in a different light. SEMA’s 2004/2005 Diesel Market Study predicted that due to the need for greater fuel mileage, diesel market share would increase to 15% by 2014. Bosch, a major supplier within the diesel automotive industry, estimates that the North American market for light-diesel vehicles will reach 15% of new-vehicle sales by 2015.

When consumers understand the advantages of today's clean diesel power, it turns conventional thinking about diesel on its head, says Gale Banks, CEO of Gale Banks Engineering. Banks is also a major player in the fight against diesels that don't burn all of their fuel in the combustion process. When a truck doesn't burn all the fuel, the result is a large amount of black smoke that comes from the tailpipe. This is usually a result of trying to increase power output without proper research and development. Consumers who do this reaffirm the idea that diesels are not a clean alternative to gasoline fuel.

"With clean diesel power, drivers can have approximately 30% better fuel economy and 50% more torque, as well as reduce emissions by up to 25%, when compared to gasoline-powered passenger car engines," Banks explains. "With clean diesel, no longer are fuel economy and performance mutually exclusive."

SEMA continues in its quest to assist manufacturers of diesel performance parts in seeking regulatory compliance for these type of products, as it does for those producing emissions-related components for gasoline-fueled vehicles.

For more original SEMA market research, visit www.sema.org/research.

As two of the more visible and instantly gratifying specialty-equipment products that consumers install on their vehicles, custom wheels and performance tires are rapidly expanding beyond the hot rod and racing market and into the mainstream aftermarket population.

"During my tenure in the wheel business, I've seen wheels go from a niche mostly for extreme performance markets all the way to where it is now,” said Kelly Austin, chairman of SEMA’s Wheel & Tire Council (WTC) and vice president MKW Alloy Inc. “Currently, custom wheels are almost as popular as iPods or cell phones. It's transcended to people we would not normally consider as enthusiasts. House moms, nannies and grandparents are all cruising the town on custom wheels to look cool.”

Retail sales for custom wheels have increased from $1.265 billion in 1991 to more than $4.5 billion last year, a jump of 257%. The rise in the production and sale of custom wheels can partly be attributed to the increasing variety of wheel types and specifications, as well as the expansion of available distribution channels.

Custom wheel manufacturers, sellers and installers have to contend with at least five specifications: wheel diameter, bolt circle (pattern), rim width, backspacing and offset.  In addition, custom wheels can be produced in various combinations of types and/or materials: one-piece, two-piece, three-piece, cast, forged, billet, steel, wire, aluminum, alloy and composite. Surface treatments range from polished metal to gold plating.

The custom wheel industry has expressed some concerns regarding a current trend of new vehicles that come with styled wheels. The percentage of cars produced with custom wheels has grown from 40.3% in 1996 to 66.5% in 2006, and light trucks have gone from 70.9% to 72.2% during the same timeframe.

Despite this trend, the custom wheel market is growing. In fact, the vehicle manufacturers have in some ways fueled the acceptance and growth of custom wheels; The sight of styled wheels on new vehicles can lend acceptability to aftermarket custom wheels.  Also, OEMs work with limitations that prevent them from offering the most current and leading designs.

“The reason you buy custom wheels is to make your vehicle different from everyone else’s,” said Paul Moritz, SEMA’s WTC council relations. “Even when people buy vehicles that come with aluminum or styled wheels, there are still those who want something different from the person down the street with the same vehicle.” 

Even with all the custom wheels being offered on production vehicles, a study performed by AutoPacific determined that approximately a third of all new-vehicle buyers intend to modify their vehicle by adding custom wheels. The percentage changes based on the type of vehicle being purchased.

“Even though the economy may look hard at the moment, the custom wheels market share with the American culture still grows and it offers opportunities for those that do it right," said Austin.

Specialty/performance tires often follow the custom-wheel market. When consumers upgrade the wheels on a vehicle, there is an inclination to do the same for the tires.  With the addition of consumers who look for specific performance tires separate from the wheels on their vehicle, the market for performance tires is slightly larger than the custom wheel market.

Performance tires were first introduced into the U.S. marketplace around 1977. Since then, they have had substantial increases up until 2006 when performance tires still generated an impressive $4.4 billion in retail sales.

To read the full report on the custom wheels and performance tires market, visit http://www.sema.org/main/semaorghome.aspx?id=58439.

For more original SEMA market research, visit www.sema.org/research.

The European Commission is expected to propose later this week new rules affecting new-car advertising in the 27 nations that make up the European Union. The executive branch of the European Union is likely to require a minimum of 20% of the space of new-vehicle advertising be devoted to information on fuel economy and C02 emissions. The regulations would cover any magazine, television and billboard advertising or point-of-sale displays in showrooms.

The new requirements, mirrored after measures imposed on cigarette producers, is being pushed by the Commission and a number of members of the Parliament citing a “dissatisfaction” with car assemblers compliance with more general guidelines, in place since 1999, which 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."

The German media has come out against the proposal and German car manufacturers are expected to oppose it as well. French and Italian car manufacturers, which generally make cars that are smaller, lighter and use less gas than the German-made cars, have not yet stated an opinion.

For information on the SEMA International Relations Program, click here or e-mail Linda Spencer at lindas@sema.org.

The European Commission is expected to shortly propose tire noise standards which are rumored to include a cut in tire noise of five or six decibels. The European Automobile Manufacturers' Association and the European Tyre & Rubber Manufacturers' Association (ETRMA) have both come out against the proposal. The Commission is also expected to come out momentarily, in the same document, with limits on “rolling resistance” of tires setting maximum levels of friction levels between the tire and the road surface as additional measures to cut carbon emissions.

The ETRMA is on record stating that a reduction of more than two to three decibels is not technically feasible. The association has also said that the Commission has not supplied impact assessments to justify the costs. Following the release of the proposal, it will be considered by the European Parliament and the Council of Ministers.

For information on the SEMA International Relations Program, click here or e-mail Linda Spencer at lindas@sema.org.

SEMA Show exhibitors and attendees! Start developing your Show game plan now. The floor plan for the 2008 SEMA Show is now available to view online. With 1,700 exhibitors already committed, space is running out, but there is still time to reserve your real estate. Exhibitors who contact ConvExx by Monday, May 19, are still eligible for space selection in their respective year of seniority.

To view the floor plan online, click here.

Exhibitors will also be happy to know that Freeman, official general service contractor of the SEMA Show, is keeping fees for material handling the same as 2007 Show rates. Additionally, there are no material handling charges for exhibitors that have a maximum of 1,000 lbs. of freight—an increase of 500 lbs. from the 2007 Show.

Other improvements to the Show include a redesign of the Truck and Tire & Wheel sections, making it easier for buyers to work the Show and find all exhibitors.

To purchase booth space online, click here.

Questions? Contact the SEMA Show department at 702/450-7662.

For more about the SEMA Show, please visit www.SEMAShow.com.

 
Emcee Dave McClelland hosts proceedings at the 2007 SEMA Installation Banquet & Gala Fundraiser.

The annual SEMA Installation Banquet & Gala Fundraiser serves to not only thank the association's outgoing Board members and welcome those newly elected, but also to announce the newest inductees into the SEMA Hall of Fame. This year's inductees are Raymond Bleiweis, Ben Nighthorse Campbell, Corky Coker and Robert Cook—an elite group of industry innovators and pioneers who have played a key role in the automotive specialty-equipment market.

This year's event is further underscored by a program of charitable fundraising activities that includes a golf tournament, the Pinewood Drag Race and a silent auction.

Proceeds from all fundraising benefits SEMA's two chosen charities, Childhelp and Victory Junction Gang Camp. Childhelp aids victims of child abuse and originally began receiving support from wheel manufacturers in 1994 and now garners significant contributions from a wide range of industry businesses.

Victory Junction Gang Camp, founded in 2004 by Kyle and Pattie Petty in honor of their son Adam, has received support from the Light-Truck Accessory Alliance and others in the industry. Victory Junction uses camping experiences in its racing-themed facilities to enrich the lives of children who suffer from chronic medical conditions or illnesses.

The golf tournament begins at 7:00 a.m. on Friday, July 25, at the Strawberry Farms Golf Club in Irvine, California. SEMA council members are among those refining their game to challenge for the Council Cup Perpetual Trophy, a friendly competition among councils to prove who has the better hackers.

A special "Council Package" price of $2,000 (a $300 discount) is available for Council Cup competitors. The package includes four rounds of golf at the tournament and dinner for four at the annual gala banquet and charity auction, to be held that evening at the Irvine Hyatt Hotel. At least one active council member must participate in the golf tournament foursome to be eligible for this special pricing offer.

Any foursome consisting of two or more active council members will automatically be entered in the Council Cup Challenge representing their council (be sure to indicate on your registration form which council you are representing). The package includes four rounds of golf at the tournament and dinner for four at the Installation Banquet & Gala Fundraiser, to be held that evening at the Irvine Hyatt Hotel.

To register for the golf tournament, click here for the registration form.

The Installation Banquet & Gala Fundraiser will also feature the inaugural SEMA Pinewood Drag Race Sponsored by Fellers and DUB Publishing. The checkered flag will drop prior to the SEMA Hall of Fame recognition and fundraising activities. According to Race Director Mike Spagnola, the inaugural event will feature three race classes: Stock, Modified and Unlimited.

Those interested in building a Pinewood Drag Race car with the children from Childhelp can join SEMA for a special trip to The Village of Childhelp West in Beaumont, California, where participants can help the kids sand, paint and assemble cars that will run in the Pinewood Drag Race. Contact Mike Spagnola at mike@streetsceneeq.com for details.

For further information about the race and its rules, click here.

Finally, SEMA will host a live and silent auction prior to the Banquet, with auction items ranging from sports memorabilia (Brett Favre has autographed a football for the occasion) to a 2006 Victory motorcycle owned and donated by Kyle Petty. Stay tuned to SEMA eNews for a full listing of items in future issues. 

Tickets and details for the SEMA Installation Banquet & Gala Fundraiser, including schedule of activities, golf tournament entries and auction donation forms, are available at www.sema.org/gala or by contacting Lisa Moreno at lisam@sema.org or 909/396-0289, ext. 105.

Donations to the Silent Auction include:

Brett Favre-autographed Wilson football, donated by Rick Rollins



Greer-Black Dragster 1:6 detailed replica

Proposals for the Lexus Project Vehicle Program are due by next Thursday, May 22.

• Company background
• Detailed description of objective of project vehicle—market segment appeal
• List of upgrades and partnered sources
• Proposed list of intended trade shows and events, advertising, website, catalogs where the vehicle will be promoted
• Your thoughts on where your project vehicle might achieve print or online coverage
• Examples of past project vehicles, including newspaper and magazine coverage
• Date vehicle will be required
• Color rendering illustrating front, side and interior color/graphic scheme
  

Platinum Equity, a Beverly Hills, California-based private equity group, announced the integration of American Racing and Wheel Pros, two distributors of high-performance wheels and tires to the automotive aftermarket.

According to a company statement released May 9, the combined company will offer a comprehensive portfolio of wheel products, including the full lineup of existing American Racing and Wheel Pros products.

“This is an incredibly powerful combination that unites two of the best names in the business,” said Rob Joubran, partner at Platinum Equity. “The pedigree of these two companies is unparalleled. Bringing them together under one roof will provide customers one-stop access to the best brands in the industry.”

Randy White, a former American Racing executive who co-founded Wheel Pros in 1994, has been named chief executive officer of the new company. Jody Groce, also a co-founder of Wheel Pros, has been named president.

“This merger brings together two leading companies that deliver world-class products and services,” White said. “Together, we have more than two dozen brands and programs serving 25,000 customers in over 30 countries on six continents.”

“Our customers will now have access to a single provider with an exceptional inventory of in-demand wheel products, a larger and more capable distribution network, and a diversity of product choices that represent the best-known wheel brands in the industry,” he said.

The integrated distribution company will operate under the Wheel Pros name in the United States, and as American Racing overseas. It will continue to distribute product brands currently offered by the two companies.

Platinum Equity acquired American Racing, the largest manufacturer and distributor of high-performance aftermarket automotive wheels in North America in July 2005. The firm acquired Wheel Pros, a leading competitor in the space, in March 2008.

Source: Platinum Equity press release via www.platinumequity.com/site/action/news.

The SEMA family of 7,065 member companies sends its well wishes to “Speedy” Bill Smith, currently recovering from triple-bypass heart surgery in Lincoln, Nebraska.

In a letter to his employees at Speedway Motors, Smith said that when he was admitted to the emergency room on April 8, “I knew I was in the right place when my doctor arrived wearing Simpson racing shoes and had on a Bell Helmet T-shirt under his medical coat.”

Smith requests that no flowers or cards be sent.