SEMA staff hosted a Focus Panel at the Old Bridge Township Raceway Park in Englishtown, New Jersey, in May to learn about consumer behavior. With the NHRA Springnationals and the D1GP both holding events during the same weekend, the venue attracted enthusiasts from the drag racing and drifting crowds and provided an opportunity for consumers and industry professionals to discuss important topics circulating through our industry. From opinions on product development to consumer-manufacturer communication, the event was a valuable learning tool for people on both sides of the isle. Below is a sample of selected topics that were discussed during the focus panel.




What was your first engine modification?

Not surprisingly, the most common modification enthusiasts chose to modify first was the air intake system. More than 75% of the panel claimed to have done so. They held the view that changing the air intake was the best bang-for-the-buck choice and easily increased performance with little effort.

In what category will you spend the majority of your money in the next 12 months?

Given that participants from the panel were pulled from racing environments, their responses were customary for performance enthusiasts. Engine performance parts were the clearly the favorite since 75% of enthusiasts stated to target this area for improvement in the coming year. Drag racers and drifters alike value power, but the discussion also noted that suspension parts are critical for those people involved with drifting.

How much money have your spent in the past 12 months modifying your car?

Panelists indicated that their financial situations do dictate how deeply involved they can become in their hobby. Nevertheless, they spend a considerable amount of their money on car parts and services. Roughly 26% of the group said they spent between $1,000 and $2,500 in the past year. The more advanced people, 38% of the group, claimed to have dropped $5,000 to $10,000 last year. Finally, the group comprised of the most dedicated racers, they ran up bills well above $10,000 for the year. These estimates might be higher than the typical consumer when you factor in their level of participation, but the reality is that the segment is still full of passionate and committed people.

Price vs. Quality? How much is "good enough?"

Panelists were asked where they drew the line regarding part costs and quality. The purpose was to determine how important price was in their buying decisions and to learn if quality is the primary factor, regardless of costs. Half of the panel stated that when they shop for new parts they only buy the best. This significant perspective illustrates that consumers have grown tired of substandard or faulty parts and are willing to pursue the best products on the market. The caveat is that they then use the Internet to track down lower prices on the parts they have decided to buy. Only 13% claimed to look for the lowest price possible without considering quality. The subsequent discussion highlighted that most people were more interested in getting the right part the first time rather than replacing a lesser-quality part down the road.

Having a presence online

The most important bit of information revealed during the discussions was that companies must interact with consumers directly. Through websites, forums and social communities, your company must be willing to spend time where consumers spend a considerable amount of their time: online. To be competitive in this market each company must build and maintain an online presence. Advertisements, web banners and other forms of traditional marketing have lost some of their bite. Also, explicit advertising or product preaching within forums can turn the mood sour quickly. Instead, consumers would rather have direct dialog with someone representing a company for help, problem solving or other suggestions.

Another motivation to get online is for reputation monitoring. Consumers have replaced clubs and word-of-mouth information with online forums. A brand's image can be made or broken by the opinions of anonymous forum members, and companies need to be vigilant over the information that is tagged to their brand. If misinformation or concerns become public, you need to be active to support and represent yourself in a positive light. In a way, this is a new brand of customer service that you should adopt.

The Focus Panel's are supported by SEMA's Sport Compact Council (SCC) and are open to SEMA members as a valuable informational tool. They are held periodically throughout the year at various venues around the nation. For more information or to become involved please contact Paul Moritz at paulm@sema.org.

U.S. consumers still love big vehicles, and even though gasoline prices are averaging $3.20 a gallon across the nation, they will probably continue to buy big vehicles, according to a recent article in The Detroit News. However, the article states that the overall U.S. market could drop slightly as some consumers wait until gas prices drop before making a new-vehicle purchase. The article quotes Jesse Toprak, senior analyst for the Edmunds.com auto website, as saying that "it really didn't seem like the gas prices had a direct impact in May," as he analyzed sales data for the first three weeks of the month. "It seemed like people almost got used to it," Toprak notes. Because of rebates and other incentives, light-truck sales will likely increase compared to May 2006 sales, based on analysis of the first three weeks of new-vehicle sales this month.

The article notes that people tend to buy more fuel-efficient vehicles when gasoline prices get higher, but 0% financing and cash rebates have kept SUV and pickup sales afloat. Consumers rationalize that the money saved will go to paying for the added fuel expense. Ford and GM sales are expected to experience double-digit drops this month, but these declines are expected to result from cuts in rental company sales. On the other hand, analysts expect Chrysler sales to jump 7% in May. Analysts also predict small declines for Honda, Nissan and Toyota.

Despite expected near-future declines for new-vehicle sales, Global Insight predicts 2008 new-vehicle sales will rebound. Light-vehicle sales will rebound next year after dipping to 16.2 million in 2007. They say that U.S. new-vehicle sales will not hit the 17-million level last seen in 2001 until 2010. By 2012, sales will climb to 17.7 million. According to Global Insight's forecast, the Detroit three will lose seven points of market share between now and 2012. Imports, on the other hand, will gain market share as they rise from 3.7-million units sold this year to 4.4 million in 2012, according to their forecast. Finally, Global Insight says they expect oil prices to stay above $60 a barrel over the next five years, which will affect the overall mix of vehicles sold each year.

Sources: Krisher, Tom. (May 25, 2007). "Americans Still Buying Bigger Models." The Detroit News/Automotivedigest.com. Retrieved May 31, 2007 from www.automotivedigest.com; James B. Treece. (May 23, 2007). "Forecaster: Sales Will Bounce back; Detroit 3 Might Not." Automotive News. Retrieved May 31, 2007 from www.autonews.com.

With U.S. regulators looking to revise fuel-economy standards amid concerns for energy security and greenhouse gas (GHG) emissions, the combined annual diesel and hybrid gasoline vehicle sales in the United States will be $2.7 million by 2012, according to a recent press release by Ricardo, a strategic consulting firm for the automotive industry.

At present, hybrid gasoline technology appears to be the preferred route in the United States, partially due to its attraction as a visible badge of green awareness amongst higher income purchasers, says Ricardo. Many OEMs plan to launch hybrid products in the next few years, but the company notes that this technology faces substantial manufacturing-cost penalties, which are unlikely to be eroded, even in mass production. Ricardo further comments that diesel has a clear cost advantage over hybrid, even when fitted with the type of complex exhaust after-treatment technologies necessary to meet future, more stringent emissions regulations.

Diesel already dominates in Europe, Ricardo reports, and the conditions may now be right for a big acceleration in diesel sales in the North American market. Ricardo forecasts that combined diesel and hybrid gasoline will represent 15% of the U.S. light-vehicle market by 2012, with sales of diesels outstripping gasoline hybrids by 1.5 million units versus 1.2 million. 

According to American Automobile Association (AAA) data, there are now 4.8 million diesel cars on U.S. roads, and J.D. Power and Associates predicts diesel vehicles will reach 10% of U.S. sales by 2015, triple that of 2005 levels. The gap between diesel and gasoline prices has not been as wide in a decade.

The national average reached $3.21 for a gallon of gas as of May 25-up nearly 33% from the same time last year, according to U.S. Energy Information Administration (EIA). Ultra-low sulfur diesel (ULSD) stands at $2.80 a gallon, according to the EIA. ULSD, which contains 15 sulfur parts per million or less, has only been available nationwide since October so there is no direct comparative. However, average prices for all highway diesels are down almost 9% versus last year.

The ongoing pattern for diesel prices is exactly the converse of gasoline. Typically attuned to the winter supply and demand of the home-heating oil market, diesel prices usually taper as summer approaches and increase during the fall. Meanwhile, gasoline continues to surge as vacation season begins, and oil companies say their refinery infrastructure is still hobbled from the hurricane destruction of nearly two years ago.

The Washington, D.C.-based Diesel Technology Forum (DTF) took the opportunity to issue a press release noting the 40%-plus pricing disparity. Coupled with the 20%-40% fuel-economy efficiencies inherent with diesel powertrains over gasoline, the state of diesel prices is all the more reason for consumers to switch to oil burners, the advocacy group contends.

"We're basically back to where we were a decade ago," said Allen Schaeffer, executive director of the diesel advocacy group told Diesel Forecast. But as surging worldwide demand for all petroleum remains a constant in the equation of fuel prices, Schaeffer does not expect the diesel-favored trend to last. "I would not be surprised to see this dynamic go back the other way...that's just been the typical patterns for the last few years," he said.

ULSD prices have grown in 2007, but at a modest 13% since the start of the year. According to the EIA, the average per-gallon price for ULSD was $2.51 in February, rising to $2.68 in March and $2.85 in April.

"The influx of diesels in North America is not going to be tomorrow," said Paul Lacy, powertrain analyst with Global Insight. "So there's some pressure on how much of that the refiners are going to have to absorb. The problem is from (the oil companies' perspective) is you can't go backwards in the refinery process. You can go from diesel to gasoline but you can't go from gasoline to diesel."

Some oil giants are responding, including Marathon Oil Corp., which announced in April it would construct a $3.2-billion addition to its largest refinery in Garyville, Louisiana. That facility currently processes twice as much gas as diesel. However, when the edition is complete in late 2009, Marathon said it expects to produce equal amounts of diesel and gas. 

Fred Rozell, a retail gasoline/diesel analyst for the Oil Price Information Service-a petroleum industry pricing news and information firm that supplies data to AAA, said the seesaw effect of gas versus diesel prices will even out as production does. "I think eventually the majority of the U.S. (auto) fleet is going to be running on diesel," said Rozell, who is even more bullish on diesel's market penetration than JD Power and Associates. "The transition where half the vehicles are running on diesel and half on gasoline is going to be difficult."

And when will that transition hit? "It's going to be a long period, over the next 10 years," Rozell said.  One more federal requirement may play a role in spiking diesel prices later this year. June 1 is the deadline for refineries to begin shipping low-sulfur diesel for off-road vehicles, such as construction and farm vehicles and machinery. That grade of diesel will reduce sulfur levels from 2,500-3,500 parts per million sulfur to 500 parts per million. The Environmental Protection Agency (EPA) requires off-road fuel to be available for sale by October.

"You've got that clamp coming down on the off-road group as well, and I think that's going to be a driver in bringing diesel prices back up," DTF's Schaeffer said. All of the pricing pressures could weigh on diesel-intending consumers, who usually pay $1,000 premium for diesel powertrain light-duty vehicles over their gasoline counterparts. "How fast you re-accrue that investment is directly dependent on fuel prices," Schaeffer said. "The circumstance you worry about is a $.50 gap (favoring gasoline)."


Sources: Ricardo (May 24, 2007). "Diesels Set to Out-Strip Hybrids in Accelerating U.S. Growth." Ricardo press release courtesy of PR Newswire; Scott Anderson. (May 2007). Diesel, "Gas Price Gap Widens." Dieselforecast.com. Retrieved May 31, 2007 from www.dieselforecast.com.

The following is a short excerpt from the "2007 Trends and Forecasts Quarterly Update-Q1."

Did your sales grow last year, and was this growth on par with the rest of the specialty-equipment industry? What products are hot sellers, and what are the major obstacles specialty-equipment companies face running their businesses? Although you probably know the answers to these questions as they pertain to your own company, benchmarking how your business performs compared to others in the specialty-equipment industry is another valuable tool to gauge your company's performance. SEMA recently asked its members these questions as part of its annual SEMA-member survey, which tracks industry trends from the perspectives of those entrenched in the specialty-equipment industry.

According to the latest data, 36% of SEMA members indicated that their company's sales grew "moderately more," while 17% said that sales improved "greatly more" in 2006 compared to 2005. And while two out of three SEMA members surveyed indicated that they experienced growth in new customers last year, approximately three-quarters of the respondents said that growth in supplier costs was part of doing business in 2006.

Responses from the SEMA-member survey suggest that operating costs and cash flow seem to hinder businesses the most, followed by the current state of the economy and counterfeit/knock-off products. While each of these obstacles represent several business issues, it's important for business owners and managers to look at these numbers in comparison to their own businesses. This will provide some insight into areas most in need of attention and/or improvement, thus helping overall business growth.

Appearance and vehicle-body accessories top the list of products sold by SEMA members. The accessories and appearance market segment of specialty equipment has grown substantially over the years to reach $6.94 billion at the manufacturer level in 2005. Part of the reason for this growth comes from the fact that automotive customization has grown in popularity among mainstream automobile buyers. Recent SEMA research showed that over the first three months of this year, nearly one out every 10 (9%) consumers surveyed planned to purchase accessory and appearance products. This translates to slightly more than 10 million U.S. households planning to purchase some type of appearance accessory for their cars or trucks. 




The light-truck market is the largest market segment of specialty-equipment parts and accessories sold in the United States. In 2005, sales at the retail level reached $11.72. The rise in popularity of pickups, SUVs and CUVs has created growing demand for products to customize these vehicles. Results of the SEMA-member survey showed that nearly one out of four (24%) receive the greatest amount of sales revenue by selling products for this market. These companies, as well as most of the SEMA members surveyed, agreed that 2007 will be a year of growth. Roughly 70% of those surveyed said that they expect at least some positive growth this year.

The "2007 SEMA Trends and Forecasts Quarterly Update-Q1" is filled with valuable statistics showing SEMA-member benchmark data, sales trends for various vehicle segments and more. SEMA members can receive a complimentary copy of this update by downloading it from www.sema.org/research or by contacting Shirley Presecan at shirleyp@sema.org.

Source: SEMA Research & Information Center

BMW has recently announced that it will begin production of the long-awaited 3-Series CUV, according to a recent AutoWeek.com article.  It is expected to be labeled as the F3 when it hits dealerships sometime in 2010, BMW says, and will likely target Honda CR-V and Toyota RAV4 buyers. 



The F3 crossover will sit on a modified version of the existing 3-series platform and share various BMW X3 components, such as the new FlexRay system that will provide the network for the CUV's driver-aid and safety features. BMW says that its new crossover will come optional with its xDrive four-wheel-drive system along with top-end versions being powered by a 3.0L, 300-hp, twin-turbocharged V6 engine.

The automaker says that its decision to give the F3 the green light came from recognizing that CUV sales have been growing in both European and U.S. markets. Autoweek quotes a BMW insider as saying that the company has "looked carefully at prevailing market trends, and there appears to be a clear shift away from old-style [multi] purpose vehicles. By combining the high seating position of a SUV with the space afforded by a traditional stationwagon, crossovers appear to be providing a clear alternative to buyers."

Source: Greg Kable. (May 21, 2007). "F3 Gets a Go: BMW Greenlights 3-Series-based Crossover." AutoWeek.com. Retrieved May 31, 2007 from www.autoweek.com.

Outsourcing is the process of having certain services that could be, or have been, provided internally performed on a continuing basis by companies or individuals outside your organization. It's long been common in manufacturing for companies to depend on external suppliers to provide them with components made to their specifications. Most business decisions favoring outsourcing are made for economic reasons, according to a recent article from the National Federation of Independent Businesses (NFIB). It notes that if a product or service can be obtained externally for less cost than providing it internally, outsourcing may be a preferred alternative as long as the external source meets the company's quality requirements.

Sometimes the economic decisions favoring outsourcing are driven by volume restrictions. Consider, for example, a service requiring specialized expertise but potentially consuming only a few hours per week. There may be nowhere near enough volume to justify recruiting specially qualified staff, so outsourcing may be the more practical-and ultimately less costly-alternative. Numerous potential outsourcing decisions may hinge upon the presence or absence of particular skills or capabilities in the manner just described. To cite another frequently encountered example, many organizations outsource the administration of their workers' compensation programs because the complexity of the system is most effectively addressed by individuals who specialize in workers' comp issues.

The pluses of outsourcing include:

• Outsourcing is used to tap the knowledge and resources of specialists. It can conserve the time of regular employees so they can focus on needs more relevant to the company's purposes; that is, it redirects resources to more productive and strategically more important work.
• Outsourcing can sometimes reduce administrative costs.
• Outsourcing can be instrumental in preserving confidentiality. For example, the administration of an employee assistance program (EAP) is usually outsourced so that no company employees are privy to personal information about other employees.
• It can compensate for overload or help eliminate backlogs.
• Outsourcing can, at times, facilitate budget reductions.

Any number of people may offer multiple reasons why outsourcing's use in facilitating budget reductions is anything but a plus. In most companies, the majority of employees equate outsourcing with budget cuts and thus with staff reductions. That is, outsourcing's greatest minus is that it's perceived by many as primarily intended to reduce labor costs and thus eliminate employees.

It's no secret to anyone working in American business today that many jobs have been lost as a result of shifting activity to largely foreign areas where labor costs are lower than in this country. Under increasing competitive pressure, companies quickly learned that they could save money by going to outside suppliers for everything from raw materials to finished products to customer service. Indeed, entire industries have essentially outsourced themselves. Consider, for example, textiles: At one time, the New England states comprised a center of textile manufacturing, but as competition intensified and costs continued to rise, many of the textile manufacturers fled to the Southern states from where they later jumped again, mostly to foreign countries.

There are many instances in which outsourcing is undeniably good for business while, at the same time, damaging to employee relations. Thus, the decision to outsource could mean reduced cost and increased efficiency at the price of layoffs and employee unrest. Surely there are times when it is wiser to forego modest improvement rather than alienate the workforce. It is just as likely, however, given the economics of business today, that extensive outsourcing may be needed to ensure survival.

As the decision to outsource shouldn't be taken lightly, so too should the selection of an outsource supplier be approached very seriously. In selecting a vendor, you should consider:

• The potential vendor's experience and reputation. If possible, check with some of the vendor's other clients.
• Whether the vendor is equipped to provide computer systems and technology needed to ensure efficient access to all applicable data and reports.
• Whether the vendor has invested in the necessary internal resources needed to support any employee who might be assigned on-site.
• The extent to which the vendor takes responsibility for ongoing training of its staff.
• Whether the vendor has sufficient understanding of your company's organization and culture.

It's probably not possible to explain away all employees' fears and misgivings about outsourcing. Nevertheless, the NFIB notes that thorough and conscientious communication of the necessity for outsourcing can go a long way toward ensuring employee acceptance of the practice.

Source: McConnell, Charles, R. (May 4, 2007). "The Pluses and Minuses of Outsourcing." The National Federation of Independent Businesses. Retrieved May 31, 2007.

What does is take to be successful in business? According to Larry Mersereau-small business consultant, speaker and author in the field of marketing and promotion-a look at successful people tells you that the ability to spot opportunity in these rapidly changing times is one major key. And it's not enough to just see opportunity, he says. It's not even enough to see it and act on it. It's at least equally important to be able to assess whether the opportunity you're looking at is right for you...before you act on it.

You must first have the capabilities necessary to pursue the opportunity. If you don't have the knowledge, facilities, equipment, personnel or capital necessary to go after an opportunity, you have to be smart enough to pass.

The most successful people are really good at spotting opportunity. But they're also really good at recognizing whether they're equipped to pursue them or not.

You also have to look at whether an opportunity fits into your "big picture." What are you trying to accomplish in the long term? You must have a specific kind of customer in mind, and you must have some purpose in serving them.

For example, Larry Mersereau helps business owners and sales professionals bring in more business, and he helps companies bring in more business by getting more from their resellers (business owners and sales professionals). He says that if an opportunity comes along that will help him do that more effectively, and he has the resources he needs to pursue the opportunity, he will be "all over it." If the opportunity pulls him in some other direction...away from his business mission or if he doesn't have everything he needs to do it right, he says that he will pass on it.

Do you have a "big picture?" If you don't, you need to step back and take a look at your business.

And don't forget the "big picture" of where your business or job fits with the rest of your life. Mersereau says that he won't pursue things that might conflict with his personal life, sense of ethics, relationships,  health or religious beliefs.

If your business decisions do not align with your life, you're not going to be very happy. Making money is a good thing. But it's not worth sacrificing what's really important to get it, Mersereau notes.

Source: Larry Mersereau (May 29, 2007). "What Does it Take? Bringing In More Business..."(electronic newsletter).

Frank Homann, Siemens VDO vice president of cockpit modules, "declared the in-vehicle CD player a dead man walking, doomed by a rising tide of portable digital music players, high-tech cell phones and packaging issues" during the SAE International World Congress. According to Ward's Auto, Homann stated that Siemens is working on systems for 2012, which include CD players, but that by 2015 they won't be around.
   
The future of the CD has been affected by the invention of technologies such as the iPod and iPhone. Homann says that "You will see [in-vehicle] cradles in the future; iPhone cradles. And then some of the technology will migrate into the [vehicle]." However, not everyone involved with in-vehicle entertainment agrees. T.C. Wingrove, senior manager of North American Innovation for Visteon Corp. is one of those people. "I don't think the CD player will be gone by 2015 at all" he told Ward's Auto. 
   
Skeptics believe that "stubborn consumers," including "late adopters" and "semi-computer-literate baby boomers" will keep the CD alive for a long time. The CD may eventually disappear like the 8 track, but not by 2015. The Chrysler Group is leading the movement away from the conventional audio-system layout with its MyGig navigation system that uses a computer hard drive to store navigational data instead of an optical disk. MyGig can also store about 100 hours of music, photos and other information. Even with the MyGig, Mike Kane, director for feature innovation and advanced technology strategy for Chrysler, does not see the demise of the CD happening anytime soon. In fact, he believes that "the optical disk is probably around for another 30 years or so."
   
Newer types of optical disks are expected to be able to store hundreds of songs as compressed audio files.  Furthermore, "digital-rights management issues and the growing popularity of high-definition formats mean DVDs will likely remain the preferred method for viewing movies in vehicles in the foreseeable future, further preserving the optical disk's turf" says Kane.
   
On the other side of the table, Homann is attempting to make a compelling argument for automakers to eliminate CD players altogether. He claims that the elimination of the CD will "save auto makers $20-$40 per vehicle and will free up real estate within the car." The center stack of the dashboard where most CD players are located, is a great place for navigation systems. According to Ward's data, 19.6% of all 2006 cars built in North America for the United States market had MP3 capability, more than eight times greater than in the 2004 model year. During that same period, "the proliferation of CD players slipped to 95.2% from 99.1%." And only 11.7% of cars featured cassette- tape players in 2006, down from 29.6% in 2004. However, 0.8% of U.S. consumers purchased full-length cassette tapes in 2006, and suppliers shipped more than 700,000 cassette-playing automotive head units to customers last year. Nearly 86% of sound recordings still are purchased on full-length CDs, down only 5% from the 2002 peak of 90.5%. Only 6.7% of recordings were purchased as digital downloads in 2006. Data suggests that consumers load music onto their MP3 players from CDs, and the CDs are still played at home and in their cars.
   
The data suggests that the CD will be around for a while. However, it is important to start thinking about the future as technologies begin to be replaced by the latest and greatest. If automakers were to stop including CD players in vehicles, this would be a great opportunity for aftermarket sales of CD players to grow. On the other hand, specialty-equipment manufacturers will need to continue to work with the automakers to develop interfaces that will work with all kinds of entertainment systems, from CD players to navigation systems.

Source: Drew Winter. (May 29, 2007). "Are CD Players Headed for Mass Extinction?" WardsAuto.com. Retrieved May 31, 2007 from www.wardsauto.com.

In the wake of other successful B-segment icons, such as the Scion xB, Honda Fit and Toyota Yaris, Nissan has signaled its plans of transplanting another diminutive Japanese vehicle to the U.S. market—the Cube.
   
Rumors have been circling for months regarding a stateside version of "the other econobox." Larry Dominique, Nissan North American's vice president of product planning, recently confirmed that a new model has been slated. While the current version will not make it to the U.S. market, the 2008-scheduled redesign should bring the Cube here by 2009. Sales for Nissan's larger passenger vehicles have been slow as of late, but the smaller Versa has been a huge success. Through April, 21,208 units have been sold this year, placing it directly behind the class-leading Toyota Yaris. Official images of the next-generation Cube have not been released, but Shiro Nakamura, Nissan's senior vice president and design director, claims the U.S.-market Cube "will look exactly the same as the Japanese model, otherwise there's no meaning." Minor tweaks are expected, but the overall shape should not change significantly. The boxy design worked for the original xB and Honda Element and Nissan believes the same recipe will work for the Cube.
   
Dominique openly shares the company's plan to market the Cube as a "gender-neutral" alternative to the Scion xB, which he states has adopted a "little young, macho-dude car" image. Female buyers should receive a fair amount of marketing when the new iteration arrives, and Nissan hopes to ignite a consumer base like it has in Japan. These types of vehicles are commonly customized by female enthusiasts for their "cute factor."
   
The specialty-equipment industry could take this as another sign of future trends, as it's yet another small car that young buyers can outfit with custom parts. The current Cube has been on the market since 2002 and has already started a buzz on Internet forums in the United States. When the next generation hits U.S. streets, it should not take long for enthusiasts to start personalizing them. Most of the discussions refer to the growing adoption of VIP-style modifications. In short, that means making them luxurious, comfortable and stylish. Here are a few examples of what is presently on the market and the direction consumers might want to take with their Cubes.

Kenstyle (SEMA member)



Impul



Wald



Gialla




Source: Christie Schweinsberg. (May 25, 2007). "Nissan Cube Won't Target Scion xB, Exec Says." WardsAuto.com. Retrieved May 31, 2007 from www.wardsauto.com.

California SEMA members  converged on the state capitol in Sacramento to help educate state lawmakers on the importance of the $36.7 billion automotive specialty-equipment industry to the state economy and the impact of government initiatives on the industry's continued viability. The association's first-ever state legislative rally on May 23rd featured SEMA members and California state lawmakers meeting face-to-face on significant state issues, including the governor's proposed universal health-care plan, emissions standards, vehicle scrappage, titling and registration and off-road land access.

"SEMA has been engaged over the years with the California Legislature on a series of industry-specific issues and a range of business concerns impacting the health of the state's specialty-equipment industry," said Steve McDonald, SEMA's vice president of government affairs.  "Our successes in Sacramento would not have been possible without the relationships we have developed with California legislators over the years. By including California SEMA members in these efforts, the Sacramento Legislative Rally helped further increase awareness of our industry by state legislators and signal SEMA's intention to increase its contribution to the debate on significant state issues."    

The SEMA Sacramento Legislative Rally agenda included a breakfast briefing by SEMA government affairs personnel, meetings with lawmakers, regulators and the governor's key staff, in addition to an evening reception. SEMA members were briefed on critical issues by, among others, Governor Schwarzenegger's Deputy Chief of Staff Cynthia Bryant, State Small Business Advocate Marty Keller, Assembly Transportation Committee Chairman Pedro Nava, Assembly Minority Floor Leader Mike Villines, Labor Commissioner Bob Jones and Occupational Safety and Health Standards Board Officer Keith Umemoto.

During the Rally, State Senators Ron Calderon and Dick Ackerman and State Assembly Members Martin Garrick and Nicole Parra joined the State Automotive Enthusiast Leadership Caucus. Supported by the SEMA Government Affairs office, the caucus is a bipartisan group of state lawmakers whose common thread is a love and appreciation for automobiles. Working in state capitals around the country, caucus members have sought to preserve and protect the automotive hobby by seeking the amendment of existing motor-vehicle statutes and creating new programs to safeguard and expand the hobby. These legislators join Senators Dennis Hollingsworth, Tom McClintock, Gloria Negrete McLeod and Assembly Members Mike Duvall, Bonnie Garcia, Bob Huff, Kevin Jeffries, Doug La Malfa, Alberto Torrico and Michael Villines as California members of the caucus. For a full caucus listing in all 50 states, please click here.

SEMA Member Comments:

Joel Ayres, Leer:  "Fantastic job by the SEMA staff. I feel it was a good start to building relationships with the California legislators. The speakers were interesting and informative. By Wednesday night, many additional people in the Sacramento Capitol knew about SEMA and what our industry was doing for California. I feel the next event in Sacramento will be even bigger."

Ken Yoder, RCD Suspension:  "This was a great experience. I was able to talk to the assembly member and senator for the area that my facility is located in. We discussed several issues including worker compensation costs, the health-care plan that the governor has proposed and land-use issues. I was very impressed with the quality and enthusiasm of the lawmakers and regulators that spoke to us at the briefings. Every SEMA member should be involved in this type of an event."

Doug Evans, Primedia:  "I would like to congratulate the SEMA staff on a job well done with the Sacramento Rally. I found the meetings and presentations informative and extremely important. I would urge my fellow SEMA members to get involved in this event in the future as well as the Washington, D.C. rally. California in particular is looking at many pieces of legislation that could be disastrous to our industry. We must be united in our efforts to ensure that any legislation passed recognizes the importance of our livelihood and the thousands of jobs that could be adversely affected by poorly crafted bills that do not have our input."

Debbie Lewis, "Hotrod & Restoration":  "The Sacramento Legislative Rally was a great experience. It was well-planned and well-executed by our Washington, D.C., SEMA office. SEMA provided materials prior to the rally, making it easier for participants to be prepared and, in my case have a clearer understanding of our purpose and mission, and how the process works. I met with Senator Dick Ackerman and we signed him up to be part of the State Automotive Enthusiast Leadership Caucus. It was very encouraging to learn firsthand that all we had to do was ask. I look forward to participating in future rallies and carrying the flag to encourage others to do the same."

Ernie Silvers, Egge Machine Co. Inc.:  "All I can say is WOW! The Sacramento Rally had all the power and magic of its big brother, SEMA's DC Rally. Much like a well-organized surgical strike team, SEMA staff was flawless in its ability to arrange and attend multiple meetings with SEMA members and their respective lawmakers. My local assemblyman and senator were both eager to learn more about issues that concern my company, the restoration industry and SEMA. It was productive and time very well spent!"