Chrysler reported last week that its Five Star dealers had sold a record 10,204 certified pre-owned vehicles in August, a 5% increase from August 2006 sales. Jeep models were the overall winner for the month, with sales surging 19%, while Chrysler brand sales dipped 3%. Dodge brand sales climbed 3%, including a model favored by musclecar and customization fans: the Magnum.

The Magnum sold 26% better this past August compared to a year ago—good news for the air intake, exhaust and lighting companies that make parts specific to this muscle wagon. According to SEMA research obtained via CarDomain.com, the top five modifications preferred by Magnum enthusiasts are tires (19.7%), air intake (14.2%), exhaust (12.9%), wheels (10.9%) and lighting (8.4%).

Enthusiasts have spent an average of $984,500 a month since July on transmission and transmission components via online auction sales, on track to outpace average sales for the first and second quarters. In Q1, transmissions and components averaged $993,800 a month, then dipped 3% in Q2, according to data from Terapeak, a developer of market-focused research software that monitors online sales and auctions.

For the months of July and August, sales are up 2.1% over Q2.

Parts for manual transmissions have outsold those for automatics nearly every month this year, on average up 8% over slushbox components.

Shifters and flywheels/flexplates are up over the last 90 days, compared to the three months prior. From June 10—September 7, shifters are up 14% against sales for the March 12—June 9 period. Flywheels and flexplates are up 27% for the same period.

Conversely, transmission rebuild kits took a big drop in the most recent three-month period, down almost 50% compared to the prior period. Clutches and clutch parts are also down, 16% compared to earlier this year.

Do online sales tell us anything about how parts move across countertops from brick-and-mortar retailers? Maybe.

Patti Freeman Evans, a senior analyst who monitors the retail industry for JupiterResearch, explains that while online sales are only a fraction of actual retail transactions, the Internet is a key influencer in buying decisions.

"We see online retail plateauing at 10%—15% of total retail down the road-about double the penetration that catalogs ever got," Evans says.

She notes that as online commerce sites continue to develop more sophisticated tools to make purchasing easier and safer, some consumers will shift more of their wallet online.

"But that growth will really be organic, not dramatic. We look to the Internet to remain a highly influential channel for retailers to affect customer purchasing regardless of what channel the actual transaction occurs in."

Terapeak Motors P&A Research provides sellers with access to comprehensive research on the past year of online auction data and allows users to get in-depth research reports on the competition and themselves. More at www.terapeak.com/motors.

The majority of early-registered international buyers for the 2007 SEMA Show are from wholesale and distributor-type businesses. Other business categories with a high number of registered international attendees for the show include Accessories & Installation Centers, Auto Parts Retailers and Automobile Dealerships.

The large number of registrations from international wholesalers and distributors is an increase from 2006, when Accessories & Installation Centers and Auto Parts Retailers tied as the top business segments from which international attendees reported they belonged to.

For the second consecutive year, Accessories was the leading product category that most international buyers reported an interest in, with nearly 60% reporting interest in the category in 2005 and 2006. Other product categories of interest to registered attendees include Tires & Wheels, Performance Parts & Equipment, Safety Equipment, Engines/Engine parts and Truck Parts & Accessories.

International attendance at the SEMA Show has increased nearly 30% since 2004 and nearly one out of every five attendees at the 2006 Show came from outside the United States. The majority of international buyers attending the 2006 Show came from businesses that had been in existence for over 11 years, 66% reported annual sales of over $5 million, and 80% said they did at least some wholesale business.

Reflecting growing worldwide interest in the specialty-equipment market, registration of international buyers for the 2007 SEMA Show is off to a record-breaking start. Advanced, international-buyer registrations already match last year's overall attendance with 18% of all registered buyers coming from outside the United States.

International participation in the Show has increased nearly 30% since 2004 when one in seven buyers were international attendees. At the current rate of registration, international attendance at the 2007 Show will increase to one-in-five buyers.

Attendees from more than 100 countries are expected to attend this year's Show. Canada had the largest number of attendees in 2006 and is showing the largest percentage increase in early registered buyers. The number of registered attendees from Mexico is also showing an increase over last year.

Registration for the 2007 Show opened 15 weeks earlier than in previous years to give attendees more time to plan for the Show. SEMA provides several services and business opportunities specifically for international visitors. Online registration is available in seven languages: English, Spanish, French, German, Japanese, Chinese and Portuguese. At the Show, a special Center for International Commerce provides a wide-range of business services and education programs.

For more information on SEMA's international programs, click here.

"Correlating Parts Service to Customer Wants and Needs"

Thursday, Sept. 13, 2007, 10 a.m. (PST)

Good customer care is critical to having a profitable business. Tune in to next week's SEMA webinar, "Correlating Parts Service to Customer Wants and Needs," presented by Gary Naples of Freelance Associates, to learn how to develop a winning tactic that will help transform one-time buyers into repeat customers, and repeat customers into loyal advocates of your business.

How to Participate

During the webinar, you will be able to interact and ask questions via phone or computer. Simply follow these steps:

View the presentation during the webinar by clicking here the day of the webinar.

- Connect to the audio portion of the webinar by calling toll-free to 866/637-2754, pin 1542.

All SEMA webinars are recorded, and the audio and video portions of past webinars are available for download. Recent sessions include information about minimum pricing agreements, trade show tips, product data and more. Check out all the sessions available for download at www.sema.org/webinar.

SEMA-opposed legislation (AB 616) that threatened to require annual smog-check inspections for vehicles 15 years old and older has been rejected by the Senate Appropriations Committee, after having been approved previously by the full California Assembly and the Senate Transportation Committee. The bill also would have required that funds generated through the additional inspection fees be deposited into an account which would be used to scrap older cars. The bill is dead for the year. 

“SEMA members, car clubs and individual hobbyists across the state loudly and forcefully objected to passage of this bill,” said SEMA Vice President of Government Affairs Steve McDonald. “Ultimately, the lawmakers in Sacramento heard their message.”

SEMA and its grassroots lobbying organization, the SEMA Action Network (SAN), opposed the bill for several reasons: 

• AB 616 ignored the minimal impact vintage cars have on air quality. 
• AB 616 ignored the fact that vehicles 15 years old and older still constitute a small portion of the overall vehicle population and are a poor source from which to look for emissions reduction.
• AB 616 ignored the fact that classic vehicles are overwhelmingly well-maintained and infrequently driven. 
• AB 616 would have increased costs by creating an annual inspection fee for owners of these vehicles. 
• AB 616 represented another attempt to scapegoat older cars.
• AB 616 would have dramatically impacted the ability of fixed- and low-income motorists from owning and driving their older vehicles.

“We are especially indebted to those legislators who opposed the bill because it would have placed an undue burden upon car owners simply because their vehicle is older than an arbitrary date set in law,” McDonald added. For details, contact Steve McDonald at stevem@sema.org.

The deadline for exhibitors to update their company listings for the printed version of the 2007 SEMA Show Directory is this Friday, Sept. 7. To update your listing, click here. Note: Changes made after September 7 will be reflected in the online directory only. 

For complete information about the 2007 SEMA Show, visit www.SEMAShow.com.

Dick Berggren, seen here with SEMA Chairman-Elect Rick Rollins (left) and SEMA Hall of Fame inductee Ron Funfar (right), will host the New Product Awards Breakfast held at the 2007 SEMA Show.

Dick Berggren, well-known racer, NASCAR-on-FOX TV personality and founder of Speedway Illustrated magazine, will kick off opening day of the 2007 SEMA Show as the featured speaker of the New Product Awards Breakfast.

Held at 7:30 a.m. on Tuesday, Oct. 30, the New Product Awards Breakfast is where the hottest and best new products are announced. Awards are presented in 11 categories, including performance-street, performance-racing, off-road/4-wheel-drive, street rod/custom car, mobile electronics and more. All showgoers are invited to attend the event, which includes a sit-down breakfast and stories from Berggren himself. As a former sprint car, Super Modified and stock car driver who won 26 events, Berggren brings a unique perspective and keen insight into the racing world.

Tickets to the breakfast are free, but space is limited. To secure a ticket, visit www.SEMAShow.com or contact Lisa Moreno at lisam@sema.org.

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