During Chrysler’s “What’s New” media preview last month, global product development chief Frank Klegon shook things up by announcing the automaker is exploring a four-cylinder diesel for North America, according to a recent article by Diesel Forecast.

Klegon didn’t provide more details, dangling the question of whether Chrysler, in the midst of an ownership transition, will pull one vehicle from its stable of European diesels or look outside the box with an all-new engine. 

James Weidenbach, who manages diesel applications and powertrain platform engineering at Chrysler, noted that “there’s a clear recognition inside (Chrysler) of the importance of diesel in the United States. We need to figure out a way to convince the American public of that alternative.”

Weidenbach hinted that Chrysler in fact will look to Europe for a U.S. diesel. “From a development side, it’s much easier to use an existing product than to engineer from scratch,” he says.

Chrysler’s overseas four cylinders include the 2.2L on the PT Cruiser, and the 2.0L in the Sebring and Avenger. That 2.0L is built by Volkswagen, which will introduce a 50-state diesel 2.0L next year on its Jetta TDI and will not require after-treatment fluid, such as urea, to meet emissions standards.

Chrysler’s European diesel lineup also includes the 300 Sedan and Touring 3.0L V6, Voyager and Grand Voyager (Town & Country) 2.8L four-cylinder. “It gives us a lot of flexibility,” Weidenbach says. “The offerings we have now give us the ability to go lots of different directions.”

Weidenbach has a good grounding in what Americans may want, or may not want, having shepherded the 2.8L four-cylinder Jeep Liberty to market. The vehicle first went on sale in 2005 and was discontinued in 2006. Rated at 160 hp and 295 lb-ft of torque, the common rail diesel was compared with the 210 hp and 235 lb-ft on the 3.7L gasoline V6 Liberty. At the time, some critics were disappointed the diesel Jeep did not have superior towing capacity to the gasoline equivalent 5,000-lb. benchmark.

Still, Weidenbach has no regrets about the Liberty CRD market or road performance. “The Liberty sold three times more than we anticipated,” he says. “It was truly a test case.”

For now, Chrysler is returning to the upscale market with the 3.0L V6 diesel engine on the Jeep Grand Cherokee, priced at $38,475. The Grand Cherokee is a 3.0L common rail turbo diesel with 215 hp, 376 lb.-ft. of torque with 7,400 lbs. of towing capacity.

Weidenbach notes improvements in electronics are likely to yield the greatest engine efficiencies and refinement. He cites the example of pilot injection, which opens the fuel-injection nozzle to allow a tiny amount of fuel before the main injection in an effort to decrease engine knock. “We’re metering down to a cubic millimeter of fuel,” he says. “That’s pretty good, but I think you need to get down to half a millimeter.”

Source: Anderson, Scott. (July, 2007). “Chrysler Mulls European Lineup for U.S. Diesel Entry.” Diesel Forecast. Retrieved August 3, 2007 from www.dieselforecast.com. 

Hybrid vehicles are on course to achieve record sales in 2007, increasing by 35% compared with 2006, according to the “J.D. Power and Associates 2007 U.S. Hybrid Vehicle Forecast Second Quarter Update.”

According to Ward’s Auto, an estimated 185,913 hybrid vehicles were sold in the U.S. market through the first half of 2007, accounting for 12.8% of the total U.S. new light-vehicle market through June. While sales of hybrid vehicles are projected to decline slightly in the second half of the year, J.D. Power and Associates says that the market is still on track to sell 345,000 hybrids in 2007—a 35% increase from the 256,000 hybrids sold in 2006.

“High gas prices during the first half of 2007, coupled with automakers lowering the price premium for most hybrid models, have given the hybrid market a boost,” said Mike Omotoso, senior manager of global powertrain forecasting for J.D. Power and Associates.

The Toyota Prius continues to be the most popular hybrid model, selling 94,503 units through June 2007 and representing 50.8% of all new hybrid vehicles sold in the U.S. market in 2007. Prius sales were bolstered earlier this year when Toyota began offering incentives up to $2,000 to entice customers.

“Toyota realized that they had to offer incentives for the Prius to offset the decrease in the federal tax break, which decreased from more than $3,000 in 2006 to less than $1,000 in 2007,” said Omotoso. “The incentives helped Toyota maintain a strong sales pace for the Prius.”

Despite the entry of nine new hybrid vehicle models in the market in 2007—seven of which are expected to go on sale between July and December—the Prius is projected to continue as the sales leader among hybrid vehicles during the next few years.

Competition in the hybrid segment is projected to intensify further in the coming years. According to the J.D. Power and Associates report, there will be as many as 65 hybrid models—28 cars and 37 light trucks in the market by 2010, with sales expected to reach nearly 775,000 units, or 4.6% of the total U.S. new light-vehicle market.

“While consideration for hybrids is falling, interest in hybrids is still strong among consumers, and projections indicate steady growth for this segment in the coming years,” said Omotoso. “Bringing additional hybrid models to the market will serve to fuel that interest.”

Source: J.D. Power and Associates. (August 2, 2007). “J.D. Power and Associates Reports: Hybrid Vehicle Sales on Pace to Reach Record Sales in 2007.” J.D. Power and Associates press release courtesy of PR Newswire.

Volkswagen of America, Inc. has set a new record with its Touareg V10 TDI driven by Ryan Arciero at the 2007 Pikes Peak International Hill Climb (PPIHC) Race to the Clouds race—a 12.4-mile course. Arciero’s time of 13:17:70 was officially declared the new record holder for the alternative fuel diesel truck high performance showroom stock division. The previous record for this division was set in 2000 with a time of 13:34:63.

“It’s a great honor to be recognized as the record holder at a historic race like Pikes Peak,” said Arciero. “The Touareg V10 TDI is the perfect vehicle for this race, giving the driver an abundance of torque, traction and stability. That’s a highly effective combination for the short straights, 156 corners and switchbacks of this race.”

Volkswagen raced three diesel-powered Touaregs in the High Performance Showroom Stock division at the 2007 PPIHC. Second-place driver Mark Miller’s official time of 13:25:24 was also good enough to break the seven-year-old division record for diesel vehicles by over nine seconds.

As consumers learn more about diesel’s capability to race and win races, interest in diesels grows. Audi recently said that since it has raced in the 24 Hours of Le Mans, it has noticed increases in sales. For two years in a row, the Audi R10 TDI has won Le Mans, publicity that is sure to boost diesel’s image in the minds of consumers.

Source: Volkswagen of America, Inc. (July 30, 2007). “Volkswagen Touareg V10 TDI Sets New Record at the 85th Pikes Peak International Hill Climb.” Volkswagen of America, Inc. press release courtesy of PR Newswire; SEMA Research & Information Center.

On the web, content is king—or it should be. If you want people to visit, stick around, and come back to your small business’ website, give them substance, says a recent article by the National Federation of Independent Businesses.

The appearance of your website is still important in helping establish professionalism and credibility. But the information and other substantive material you provide matters most.

Several studies have backed up this common-sense notion. One study, from the Poynter Institute and Stanford University, showed that, unlike with newspapers and magazines, people who read web news sites typically focus on the text first, looking at photos and graphics afterward. People on the Internet operate in “Internet time” or in other words, fast. They don’t linger over web pages as they would a newspaper or magazine when drinking a cup of coffee.

Another study, by Forrester Research, showed that what people value most on a website is “direct paths to the content I am looking for.” Next was “proper labeling of menu items.” After this, people most valued “great search.”

People reading websites, for the most part, seek substance over style and usefulness over flash. They want to get what they want quickly. Here are some ways to make this happen:

1) Readers should know immediately upon accessing your site why they should stick around and what’s in it for them. Instead of relying strictly on fancy graphics and animations, which often slow visitors down, use meaningful headlines, subheads and menus and other links. Headlines, links and similar labeling text are better when clear rather than merely clever.

2) Make background information about yourself or your organization available from the home page, if appropriate. Discerning readers will look for this to help determine the authority and legitimacy of your content. If you include advertising, separate it from the informational content to avoid compromising your objectivity.

3) If your site consists of more than a few pages, provide a site map or index that displays all the interior links for those who want to get their bearings from the outset. Providing navigational buttons to the site’s major sections at the bottom or edge of internal pages helps people stay oriented. An internal search engine lets them hone in on what they’re after from the get-go.

4) It’s usually better to keep text brief. Break up long passages into multiple pages. Many people don’t scroll down web pages, focusing instead on the first screen of text. If your text is longer than one screen, use the inverted pyramid style of newspaper writing, putting your most important information first and later elaborating.

5) Tell the whole story. The web makes in-depth elaboration possible by having fewer space restrictions than any other medium. People may feel cheated if you leave out important information.

6) Text should be accurate, complete and interesting. Check for spelling and grammatical errors, broken links and other mistakes that can undermine your credibility.

7) Include a “last updated” or similar message. If you’re not finished with a page or section, don’t link to it and apologize with an “under construction” sign. It’s far better to link to pages after you’ve completed them, preventing frustration when readers click for content they can’t access.

8) Finally, periodically re-evaluate the quality of your content. Make sure the information is still current, accurate and complete. Test links, both internal and external, to ensure they’re still working.

Source: Goldsborough, Reid. (July 26, 2007). “Beefing Up Your Web Site Content.” The National Federation of Independent Businesses. Retrieved on August 2, 2007 on www.nfib.com.

How you handle the business when you get it is at least as important as bringing it in, in the first place. If you don’t deliver a positive experience, meaning that you deliver all you promised and then some, customers are going to be disappointed, according to a recent article by Larry Mersereau, small business consultant, speaker and author in the field of marketing and promotion.
 
He notes that disappointed customers can do a number of things:

1) "They can complain. This is the ideal situation. I know, nobody likes complaints. But at least this type of customer is going to give you an opportunity to make things right. Suck it up and do what’s right. If your sales person lied or if your promises are a bit exaggerated and they’re calling you on it, fix the problem or cheerfully refund their money."

2) "Maybe they won’t complain, but they’ll tell their friends. (See, wouldn’t you rather be the one they complain to?) Most people won’t complain. They’re embarrassed, or afraid you’ll bite or whatever. They won’t tell you they have a problem, but they’ll ruin your reputation every chance they get. They can cost you a lot of potential sales, and you won’t even know it’s going on."

3) "They may just quietly go away. That’s better than telling their friends. But you lose any chance of getting future business from this customer. And face it, it takes a lot to get someone to buy from you the first time. It doesn’t take much to get a happy customer to buy from you the second time. Making sure you deliver the first time makes long-term growth a lot easier."

4) "Some sue. I’m sure you saw the story about the judge that sued his dry-cleaner for millions of dollars because they lost a pair of his pants temporarily. They found the pants, but the judge still sued. Frivolous as the lawsuit was, the dry-cleaner had to spend thousands of dollars defending themselves. If you pretend every customer is looking for an opportunity to sue, maybe you’ll be more careful about what you promise and how you deliver."

Part of your overall business growth strategy, Merserearu comments, has got to be getting more business from people who are already buying from you. People who have already done business with you are the best source for future business. They know you, know how to find you, how to do business with you, and they’ve had a positive experience with you.

According to Merserearu, every new sale is the beginning of a relationship—one that can be hugely profitable for you in the long term...if you handle the first transaction well. Deliver all you promise and then some. Next time they need what you sell, they’ll know exactly where they prefer to buy.

Source: Larry Mersereau (July 31, 2007). “Deliver what you Promise? Bringing In More Business.” (electronic newsletter)

Advanced nanotech batteries are becoming a driving force in making electric cars go farther and faster between charges, up to five times farther than today’s conventional batteries, according to ZAP and Advanced Battery Technologies, Inc. With this in mind, the two companies recently announced the opening of a joint development office in Beijing, China, to expand their research, manufacturing and marketing of advanced batteries for electric cars using the latest in nanotechnology.

Advanced Battery Technologies is incorporating the latest in nanotechnology to create a new generation of lithium-polymer batteries with a higher energy density while improving the performance, life expectancy and safety.

Lithium ion batteries have been a leading technology in electric cars for years. While the technology has been proven in smaller formats, it's been found to be less stable in larger formats. Because they are inert, nanoparticles do not sulfate in reaction with the chemistry of lithium-polymer batteries, unlike conventional graphite electrode materials. This innovation provides a more stable battery system, allowing larger-format lithium batteries with a safer, more robust chemistry.

These smaller, nanoparticles also create a greater surface area—up to 100 times greater—allowing a faster, shorter-distance transmission of electrons in and out of the battery, adding to the energy density while increasing the charge and discharge rate for improved performance. The more stable battery chemistry also adds to the life expectancy of the battery, with an estimated cycle life of more than 1,000 charges, more than double that of conventional batteries.

What this means for electric cars is three to five times greater performance in terms of range and speed, as well as faster charge times, in some cases, as little as 10 minutes.

Source: ZAP, Advanced Battery Technologies, Inc. (August 2, 2007). “ZAP, Advanced Battery Technologies, Inc. Join Forces to Commercialize Nanotech Batteries for Electric Cars.” ZAP, Advanced Battery Technologies, Inc. press release courtesy of PR Newswire.

Tesla Motors, a manufacturer of high-performance electric cars, says it has passed a significant milestone by passing the 500 mark in 2008 model-year Roadster reservations. “We are currently planning to produce 800 of the first model-year Roadsters," said Darryl Siry, vice president of sales, marketing and service at Tesla Motors. "The fact that more than 560 are already accounted for demonstrates the tremendous demand for the 2008 Tesla Roadster.”

Many Tesla Roadster customers already own hybrid gasoline cars and have purchased the Roadster to get the best of styling, performance and efficiency, Telsa says, claiming it twice as energy-efficient as the Prius.

“One common misconception is that because of the high-performance aspects of the car, it must not be as efficient as hybrid models on the market, such as a Prius,” notes Siry, “This is actually not true. Because of the unique all-electric design, the Roadster offers supercar performance yet is twice as energy-efficient as the Prius. For customers who want to make a strong statement about energy efficiency, the Roadster offers the opportunity to have the best of both worlds.”

“We have also had a number of recent buyers tell us that they were in the market for a performance car like a Porsche 911 or BMW M6 when they learned of the Tesla Roadster. These customers are choosing the Roadster over traditional sports car platforms with an understanding that the power delivery and handling dynamics of the Tesla Roadster are second to none.”

Early customers have also pointed to the historical value of the first model-year Roadster. “The first model year of any significant new platform tends to carry with it the thought that it may one day become a collectible," Siry adds. "Certainly, with an all-new model from an all-new American car company and a revolutionary all-electric powertrain, there are a lot of customers interested in the 2008 Roadster as an instant classic with historical value.”

The Tesla Roadster, a stylish, high-performance, 100% electric sports car, accelerates to 60 mph in about four seconds and has a range of more than 200 miles on a single charge. According to the company’s website, the roadster achieves a gasoline equivalent of 135 mpg and costs less than $0.02 per mile to drive (based on the EPA conversion factor). Tesla Motors expects to start shipping Roadsters to customers this fall.

Source: Telsa Motors. (June 23, 2007). “Tesla Motors Surpasses 500th 2008 Roadster Reservation.” Telsa Motors press release.

SEMA members and SEMA Show exhibitors are entitled to a free listing in the 2007–2008 SEMA International Buyers Guide, an annual buyer's guide distributed to every international buyer at the SEMA Show. The guide is also shipped to every U.S. Embassy and distributed at automotive trade shows worldwide.

The deadline to take advantage of this free listing is September 5. A copy of the form is available online at www.semashow.com/ibg

Questions? Contact Linda Spencer at lindas@sema.org.  

 

Block out the times on your calendar now for this week's webcast double-header, kicking off with tips on how to best "do the Show," followed by Barbara Sicalides' look at the implications of the Supreme Court's recent ruling on minimum resale price agreements.

"Don't Say 'Next Year I'll Do The Show Better.
JUST DO IT NOW—We'll Show You How!"
Tuesday, August 7, 2007
10 a.m. (PST)

Because a large portion of your annual marketing budget is allocated to the SEMA Show, it's important to capitalize on your investment. Discover how to accomplish your goals and achieve overwhelming success on August 7, at 10 a.m. (PDT) when Chuck Schwartz, CEM of ConvExx presents "Don't Say 'Next Year I'll Do the Show Better!' JUST DO IT NOW—We'll Show You How!"

Listen in as Schwartz shares case studies of SEMA Show exhibitors that have found success, and how you can capitalize on their winning strategies. Prepare yourself for the 2007 SEMA Show; start by creating a winning game plan today.

What the U.S. Supreme Court's Leegin Decision Means for Minimum Resale Price Agreements
Friday, August 10, 2007
10 a.m. (PDT)

The U.S. Supreme Court decided to upset 100 years of case law related to agreement to set minimum retail or resale prices. Learn the legal and practical significance of this decision and how it can affect your business. This week's presenter is Barbara T. Sicalides of Pepper Hamilton, LLP, Vice Chair of the firm's Commercial Litigation Practice Group. Her practice covers antitrust litigation and counseling, distribution disputes/arrangements, class actions, securities and other general litigation.

SEMA webinars are web-based seminars that can be accessed anywhere through the Internet and a telephone. In addition, all SEMA webinars are available for download, offering an extra level of convenience for those who may have missed the original broadcast. Check out all of the past webinar topics and sessions at www.sema.org/webinar.

More than 600 members of the industry joined the SEMA Installation Banquet & Gala Fundraiser in Irvine, California, July 27, to honor 2007 inductees Russ Deane, Ron Funfar and Nate Shelton, and to raise nearly $200,000 for children's charities Childhelp and Victory Junction Gang Camp. They also came to thank nine members for their service to the SEMA Board of Directors, as well as welcome 10 new members to the Board.

The event kicked off at 8:30 a.m. with a shotgun start to the charity golf tournament as SEMA councils fielded foursomes and squared off in the first Council Cup - Cash for Kids challenge. Tyler Tanaka (Turbonetics), DC Chavez (AEM), Kurt Miller and Mike Webster (Advanstar Communications) of the Sport Compact Council turned in the best council performance on the greens.

"Carl Sheffer and the SEMA staff organized a wonderful golf tournament that I was proud to be a part of," Tanaka, who also won "Closest to the Pin" and "Longest Drive" honors, said. "Not only was the competition fierce, but the camaraderie and enthusiasm before, during and after the event was electric. The tourney was extremely well run, the prizes and gifts more than expected, and I hope to be lucky enough to play again next time. My hat's off for such a worthwhile and enjoyable event."

Congratulations to all of the councils; they and their supporters raised more than $8,000 in charity contributions.

The SEMA Installation Banquet & Gala Fundraiser supported by DUB Magazine and Hot Wheels, presented by Advanstar and Alcoa, evening program began at 6 p.m. with a silent and live auction, the highlight of both including bids for a 2008 Harley-Davidson Softail Fatboy. The winning bid of $26,500 was placed by Bianca Hennings of Window Canvas.

A rousing version of the "Star-Spangled Banner," performed by 10-year-old Taylor Longbrake, opened the dinner and program that followed, led by emcee Dave McClelland, and honored the Hall of Fame inductees and featured thoughts from outgoing SEMA Chairman Mitch Williams and incoming Chairman Jim Cozzie.

SEMA thanks all for the extraordinary volunteer effort, and encourages all who would like to volunteer for next year's event to contact Special Events Administrator Lisa Moreno at lisam@sema.org.

SEMA thanks outgoing Board Members...
-Joel Ayres, Leer/Truck Accessories
-Paul "Scooter" Brothers, Competition Cams Inc.
-Craig Chatt, DCi
-Anne Graves, SECO Performance Centers
-Kathy Bybee Hartzell
-Chuck Lombardo, California Street Rods
-Dennis Overholser, Painless Performance
-Steve Swanson, Hushmat
-Bob West, Westin Automotive Products

...and welcomes its incoming Board Members
-Rick Rollins, Superchips Inc
-Gale Banks, Gale Banks Engineering
-Donnie Eatherly, P&E Distributors
-Larry Erickson, Ford Strategic Design Studio
-Tony Napoli, Jr., American Speed Centers
-Mike Spagnola, Street Scene Equipment
-David Stutts, Hot Rod Air Inc.
-Van Woodell, Weathers Auto Supply
-Jeep Worthan, Auto Meter
-David Wrobleski, Jim Wrobleski & Co. Inc.