SEMA News—June 2021

LEGISLATIVE AND TECHNICAL AFFAIRS

Law and Order

By Stuart Gosswein

FEDERAL UPDATE

SEMA Challenges EPA Position on Race Parts: SEMA filed an amicus brief in a lawsuit between the U.S. Environmental Protection Agency (EPA) and Gear Box Z. Inc., arguing against the EPA’s contention that the Clean Air Act (CAA) does not allow a motor vehicle to be converted into a racing vehicle used solely for competition. The EPA first pursued this controversial interpretation of the CAA as part of a 2015 draft rulemaking, but it quickly withdrew the provision following a huge, SEMA-led public outcry. In the GBZ litigation, however, the EPA again maintains that once a vehicle has been certified as a street vehicle, it cannot be converted into a racing vehicle even if that vehicle is trailered to the track and is never driven on public roads. In its brief, SEMA argued that the CAA does not apply to certified vehicles used exclusively on the track. SEMA noted that “the agency’s interpretation breaks from the plain language of the CAA, the legislative history, and EPA’s regulations and guidance.” The EPA responded to SEMA’s amicus brief, taking the position that its enforcement is limited to defeat devices (illegal parts installed on highway vehicles). The U.S. District Court for Arizona ruled that there was sufficient evidence in the case to issue a temporary restraining order against GBZ for future sales pending a court trial. The court declined to consider the motor-vehicle-conversion issue raised by SEMA, ruling that the issue was moot since GBZ presented no conclusive evidence its products were sold exclusively for competition.

RPM Act: SEMA is working with lawmakers in the U.S. Congress to reintroduce and pass the Recognizing the Protection of Motorsports Act (RPM Act)—bipartisan legislation to clarify that it is legal to make emissions-related changes to convert a street vehicle into a dedicated race car. It also confirms that it is legal to produce, market and install racing equipment. Since it was first introduced in 2016, the legislation has been subject to committee hearings and inclusion in a 2020 energy bill passed by the House but never taken up by the Senate. Congress must pass the RPM Act to counter EPA overreach and provide certainty to racers and motorsports parts businesses

Trade Show Participant Tax Credit: SEMA-supported legislation was introduced in the U.S. Congress that would provide tax credits to cover 50% of the expenses associated with exhibiting at or attending trade shows and conventions in the United States between January 1, 2021, and December 31, 2024. The Hospitality and Commerce Job Recovery Act would help businesses that participate in trade shows and the millions of men and women employed in the tourism industry. The legislation has been referred to the House and Senate committees that oversee tax policy.

Economic Support for Racetracks: SEMA and PRI (Performance Racing Industry) have formed a coalition in partnership with 17 organizations representing recreation, sports and amusement live venues that have experienced significant revenue declines during the COVID-19 pandemic. The coalition is working with Congress to create a federal program to provide financial grants to racetracks and other live-entertainment businesses impacted by state and local attendance restrictions during the pandemic.

Disaster Loan Payment Deferments: The U.S. Small Business Administration (SBA) has extended deferment periods for all disaster loans until 2022, including the COVID-19 Economic Injury Disaster Loan (EIDL) program. For all SBA disaster loans made in 2020, the first payment due date is 24 months from the date of the note (extended from 12 months). For all SBA disaster loans made in 2021, the first payment due date is 18 months from the date of the note (extended from 12 months). The SBA also granted an additional 12-month deferment of principal and interest payments for existing disaster loans approved prior to 2020 and in effect on March 1, 2020. This is the third deferral extension for those loans. The SBA has approved more than $200 billion in COVID-19 EIDL loans to more than 3.7 million small businesses and non-profit organizations.

Definition of Independent Contractor: The Biden administration is withdrawing the independent contractor rule issued in the closing days of the Trump administration. The U.S. Department of Labor (DOL) questioned whether the rule fully aligned with the Fair Labor Standards Act, court rulings, and application of the economic realities test. At issue is an attempt to clarify when an individual is an independent contractor rather than a company employee. Factors include defining the economic independence of the contractor, such as control over the work and the opportunity for profit or loss. The withdrawal means that the issue reverts to previous DOL positions on the topic, which do not override laws enacted by California or any other states or local jurisdictions.

STATE UPDATE

Arizona—License Plates: The Arizona House of Representatives passed SEMA-supported legislation to create new legacy license plates replicating examples from the state’s past to be available for display on all vehicles. The plates would cost $25. Currently, authentic vintage plates may be displayed only on vehicles that are eligible for either classic-car or historic-vehicle plates upon authorization from the DMV. The bill awaits consideration by the Senate Transportation and Technology Committee.

Hawaii—Exhaust Noise: The Hawaii Senate passed SEMA-supported legislation that would allow the use, sale, alteration or installation of car mufflers that meet a 95-decibel noise limit. Under the current law, no person can sell, alter or install a muffler that will noticeably increase a vehicle’s noise. The bill currently awaits consideration by the House Committees on Transportation and Judiciary.

Idaho—Custom Vehicles: The Idaho Senate Transportation Committee passed SEMA-supported legislation to add a vehicle registration classification for custom vehicles. The bill defines a custom vehicle as a replica vehicle that is at least 30 years old and is designed and manufactured to resemble a vehicle that would qualify for classic license plates. Current law permits specialty designations only for motor vehicles registered as classics, old-timers or street rods. As with current specialty designations, a unique license plate would be created for custom vehicles and would allow the display of a single rear-mounted plate. The bill awaits consideration by the full Senate.

Idaho—License Plates: The Idaho House of Representatives passed SEMA-supported legislation that would allow all vehicles that were not originally equipped with a bracket, device or other means to display and secure a front license plate to display a single license plate on the rear of the vehicle. Current law permits the display of a single rear-mounted plate only for motor vehicles registered as classics, old-timers or street rods. The bill awaits consideration in the Senate Transportation Committee.

Illinois—License Plates: The Illinois House of Representatives introduced legislation to allow the display of only a single, rear-mounted license plate for all passenger vehicles. Under current law, vehicles must display two license plates. The bill currently awaits consideration in the House Transportation, Vehicles & Safety Committee.

Iowa—License Plates: The Iowa Senate passed SEMA-supported legislation that would allow certain vehicles to display a single license plate on the rear of the vehicle, including those registered as antiques or any vehicle that would require modification to accommodate a front plate. Current law permits the display of a single plate only for motor vehicles that are model-year ’48 or older as well as reconstructed or specially constructed vehicles built to resemble vehicles that are model-year ’48 or older. The bill currently awaits consideration by the House Transportation Committee.

Mississippi—Vehicle Titling: The Mississippi Senate passed SEMA-supported legislation that would allow for the titling of vehicles that are at least 30 years old and are missing documents on oath of ownership. Under current law, there is no such exemption from proper documentation for title applications for older vehicles. The bill currently awaits consideration in the House Ways and Means Committee.

South Dakota—Collector Car Appreciation Week: The South Dakota Senate issued a SEMA-supported resolution commemorating the last week of August as Collector Car Appreciation Week in the state. This action builds on last year’s recognition of Collector Car Appreciation Day and is intended to coincide with the state’s popular collector-car shows.

Texas—License Plates: The Texas House of Representatives introduced legislation to require the display of only a single, rear-mounted license plate for all passenger vehicles, with an additional $50 annual fee. Under current law, vehicles must display two license plates. The bill currently awaits consideration in the House Transportation Committee.

Vermont—License Plates and Window Tint: The Vermont House of Representatives introduced SEMA-supported legislation to require the display of only a single, rear-mounted license plate for all passenger vehicles with a registered weight of 10,000 lbs. or less. The bill would also allow window shading or tinting material on the side and vent windows to the left and right side of the driver. Under current law, vehicles must display two license plates, and window shading or tinting material is only permitted for medical reasons. The bill awaits con­sideration in the House Committee on Transportation.

Virginia—Imported Vehicles: The Virginia legislature passed SEMA-
supported legislation to allow the DMV to issue a title for an imported foreign-market vehicle manufactured at least 25 years ago. Current law allows for a negotiable title to be issued only to such vehicles manufactured prior to 1968. The bill currently awaits consideration by Governor Ralph Northam.

West Virginia—Antique Vehicles: The West Virginia House of Delegates introduced SEMA-supported legislation to create an “antique fleet” plate program whereby the owner of five or more antique vehicles would be able to use a single registration plate. Currently, antique license plates are available for vehicles that are older than 25 years and are owned solely as collector’s items. The bill currently awaits consideration in the House Technology and Infrastructure Committee.

West Virginia—Motorsports: The West Virginia Senate introduced SEMA-supported legislation to aid and incentivize the construction of motorsports complexes. The bill was introduced in the previous legislative session but failed to pass prior to the adjournment of the session. The bill currently awaits consideration in the Senate Economic Development Committee. n

OHV Access at Oceano Dunes: SEMA is vigorously opposing efforts by the California Coastal Commission to abolish off-roading at California’s Oceano Dunes State Vehicular Recreation Area (SVRA). The Commission voted to phase out off-highway vehicle (OHV) access within three years. The commission is citing environmental concerns despite decades of OHV access. Oceano Dunes is managed by California State Parks and is the only park that allows OHV access to the state’s Pacific coast. It has been enjoyed by outdoor enthusiasts from across the country for decades under a permit first issued by the commission in 1982. The commission’s unilateral action to remove OHV recreation will likely lead to a lawsuit, since it conflicts with a separate action by State Parks to establish a long-range management plan for the area to include OHV access. State Parks is reviewing public comments on its proposed management plan. SEMA will continue to support OHV access to Oceano Dunes.

SEMA News—June 2021

EDUCATION

Artificial Intelligence, Electric Vehicles…and Flying Cars?

From The Drawing Board to The Dealer Showroom, the Future of Propulsion Is (Almost) Here

By Douglas McColloch

If there’s a topic that’s a greater subject of controversy in the automotive world at present than future tech, one would be hard-pressed to name it. By “future tech,” we’re referring to the increased production and popularity of electric and alternative-fuel vehicles; the explosive growth of advanced driver-assistance systems (ADAS) over the past decade and a half; how both of those market trends are influencing consumer behavior and driving the development of semi- and even fully autonomous vehicle (AV) propulsion systems; and how these developments will potentially impact the specialty-equipment aftermarket in the not-too-distant future.

A recent SEMA Education webinar titled “A.I., Electric Cars, Flying Cars and Other Unicorns” took a deep dive into the subject of future vehicle propulsion systems. Hosted by SEMA Director of Market Research Gavin Knapp, the webinar looked at electric and other alternative-fuel systems and the state of autonomous vehicle technology and their potential impacts on OE chassis and powertrain development for the next decade and beyond. What follows is a brief summation of the webinar.

EVs: Peas in the Ocean, but Growing in Number

To gain some perspective, Knapp first provided the lay of the land.

“There are more than 280 million vehicles on the road in the United States, and that’s just passenger cars and light trucks,” he said. “Obviously, there’s a lot more vehicles, large and small, than those worldwide. There are five times that many vehicles on the road, and newer vehicles dominate the road, right? We know that vehicles are now lasting 10 to 12 years.”

He also noted increased sales volumes for SUVs and CUVs over traditional cars as another trend to bear in mind.

On the other hand, he said, new cars are essentially computers on wheels, and the manufacturers are so reliant upon computerization now that “we’ve probably all heard in recent days about the microchip shortage that’s having OEMs shutter their plants and stop their assembly lines because they’re missing out on that little chip.”

“Because of that,” Knapp continued, “there are whole new branches of the auto ecosystem that are popping up—not just micro-electronics but also software and, of course, cybersecurity. Those are things that are really taking off within automotive and are going to flow through everything that happens with new cars moving forward.”

While electric vehicles (EVs) still constitute a minuscule market share of all new-vehicle sales, their numbers are expected to grow—and grow rapidly—in the coming years. A recent survey by global marketing firm IHS Markit found that new EV registrations in the United States had tripled during the period of December 2017 to December 2020. Based on that trend, the firm forecasted a market share of 3.5% by the end of 2021 and 10% by the end of 2025. While nearly 80% of all current EV registrations are of Tesla models, the proliferation of new platforms—including ever-popular pickups—from a growing number of automakers suggests a promising rate of growth in the segment in the years beyond.

“Ultimately, we expect the plug-in or the electric vehicle to take over,” Knapp said. “At this point, you’re starting from zero with electrics, but they are growing. That is a path the OEMs are going down. We’ve got GM, Ford, Volkswagen, Jaguar, Land Rover and Volvo all coming out with plans to spend multibillions of dollars to convert their fleets to electric over the next 15 years, so this is absolutely a path that’s happening, but it’s not going to happen tomorrow.”

In that vein, Knapp reminded that “even if we stopped making gas vehicles today and only made electrics, it would take us 20 years to replace all the gas vehicles on the road. And that’s not happening anyway, because the infrastructure is not there, especially for the batteries or for the companies to even be able to make that many electric vehicles right now. So even in an aggressive scenario, we’d be looking at fewer than half of the gas vehicles off the road in 20 years.”

Contextualizing further, Knapp noted that “even if you look at the peak sales of the Tesla Model 3 a couple of years ago, you’re still talking about half of what the [annual] sales of a Toyota Camry are.”

If the Market’s so Small, Why Care at All?

As the variety of EVs expands beyond the purely utilitarian, their appeal to enthusiasts is likely to increase and in fact has already begun. Knapp used Tesla as a case study.

“They focused on the high-end upscale market, and they pushed performance as one of their selling points, as one of their brand offerings. If you don’t believe it, find somebody with a Model S and have them launch it. It’s a kick. And then, of course, the thing will park itself afterward.

“So expect to see a lot more push from those companies on the performance side and the enthusiast side as we go forward with new models—and not just giving you the Prius-type vehicles that we’ve seen in the past.

“Look at the Ford Mustang Mach-E that’s just been released. It will do 0–60 in 3.5 sec. That’s going to be more than enough performance for the general public and even for those who think of themselves as enthusiasts. The Mach-E also tops out at 300 mi. of range on a full charge, so that gets electric vehicles into that normal gas-car threshold. That alleviates a lot of the ‘range anxiety’ issues that came from earlier vehicles.”

Additionally, tax incentives such as those found in California can help bring down the prices of EVs to a more affordable range. The Mustang Mach-E “starts at $42,000, but there are still government incentives that could bring that down. If you’re in California, it can bring it down as much as $10,000,” Knapp observed. “That puts it into a pretty normal range, even though the cost of producing electrics is generally higher because of the battery technology.”

Challenges and Opportunities

While the future looks rosy for EVs, there are still some logistical roadblocks that will need to be cleared before they find wider acceptance among the general public. The first and most noticeable is charging time. Using the Mach-E as a benchmark, Knapp laid down a timeline.

“Using the supplied standard charger that you can plug into a 120-volt outlet, Ford estimates that it takes 95 hours to completely charge the vehicle—that’s four full days to charge,” he said. “So if you charge overnight, you can get 30 mi. of range. That’s probably good enough for your commute, but if you use it every day, you’re never going to get the thing fully charged.

“If you have access to a 240-volt outlet, you can get the charging time down to 15 hours, or a dedicated charger gets the charging time down to 11 hours—an overnight charge scenario. But a lot of people don’t have access to 240-volt outlets, especially if they live in apartments. If you live in some other building that requires you to park in a lot or on the street, charging options are not going to be good for you right now—and maybe charging at home is not an option at all.”

While public charging options have increased exponentially over the past decade with more than 16,000 charging stations nationwide now, Knapp noted that the number pales compared with the more than 120,000 gas stations in the United States.

“If you look at the map, the bigger issue is that there’s a lot of areas where there are no public charging stations,” he said. “Those empty areas are definitely a problem if we’re talking about widespread use of the vehicle and if you want to drive across the country.”

Even with those limitations, Knapp counseled against the aftermarket selling EVs short.

“You’ve looked at these issues facing electric cars and may be thinking, ‘Well, it’s only because of the hippies and the government that they’re doing this,’” he said. “I have to tell you, this is really largely about money and capitalism.”

Using Lordstown Motors as an example, Knapp laid down the bottom-line benefits to electrification.

“Lordstown Motors thinks its truck’s big benefit is that it has four electric motors, each one mounted at a wheel,” he explained. “There are no axles, no drivelines, no transmission and none of the thousands of other moving parts that need to be assembled in a typical gas-engine vehicle.

“If you’re a manufacturer, you have to look at that and say, ‘Wow, I can use fewer vendors. I can stock fewer parts. I can manufacture fewer parts, and I can very much simplify my assembly-line process by going down this type of path.’ I guarantee you that the OEMs are looking at that and saying, ‘We’ll invest now, but we will save a lot of money down the line once these electric vehicles come online.’”

Investors have also made it abundantly clear that they see electrification as the automotive wave of the future.

“Tesla sells a few hundred thousand cars per year, and yet they have a market cap of more than $600 billion,” Knapp explained. “The nearest other car company is Toyota at $200 billion—and Toyota sells 10 million cars a year—yet Tesla is still worth three times more. You look at GM, Ford—eight times multiple, 13 times multiple in terms of market cap, so when these companies are going into the electric vehicle market, they’re not just doing it to satisfy gas regulations, and they’re not just doing it to be green—they’re chasing the money.

“Even companies like Rivian, which hasn’t even delivered vehicles, is seeing multibillion-dollar investments and a $20 billion valuation. Some other companies you may not even have heard of have multibillion-dollar valuations. So keep that in mind when you’re thinking, ‘Oh, it’s just about going green, it’s just about government regulations.’ It’s about money, and if you follow the money, that is one of the reasons why I believe that electric is here to stay.”

Potential for the Aftermarket

While the short-term crossover appeal to the specialty-equipment market may be small—1% of the overall market, Knapp estimated—the popularity of EVs will continue to grow as more OE manufacturers produce vehicles such as the Mach-E that are tailored to the performance enthusiast sector.

“They’re going to try to get enthusiasts on board to become their advocates for electric power,” he said. And the future of this market trend may very well be now.

“The place this is most likely to start, and what might be the tipping point to entice enthusiasts and to bring our industry on board, is all of the new electric trucks that have been announced,” Knapp surmised. “Look at GM. It took the name of the poster child for fuel-economy excess, the Hummer, and made an electric truck out of it. You’ve got the Tesla Cyber Truck and the Lordstown trucks that are coming out and, of course, the Jeep Wrangler 4xe that’s coming out.

“So while people are used to seeing the Prius types, companies are changing their tack, and they are going after the high end and the enthusiast community with electric vehicles, which means they’re coming after our space” [emphasis added].

Formula Drift and Ultra 4 racer Vaughn Gittin Jr. explained the enthusiast appeal of electrification in a recent interview with SEMA News.

“I’m a Mustang guy to my core, but the acceleration [in the Mach-E] is unbelievable,” he said. “Because of the low center of gravity, the handling is something like you’ve never felt in an internal-combustion car except for supercars. The battery is in between the axles, inches from the ground, and the car just turns. It feels unbelievable. I’ve been swayed, and my increased love and passion for electric and these technologies is a result of that.”

AVs: Driving the More Distant Future

As with EVs, the market share for autonomous vehicles is expected to rise throughout the decade as more OE players and startups alike get involved in the segment, offering more makes and models for a greater variety of tasks and applications. A 2020 study by market research firm Market Digits forecasted substantial growth in market size for the sector, from $35 billion in global revenue in 2021 to $856 billion by 2027, with a compound annual growth rate of 58% during the period. While applications for passenger cars will remain limited for the near future, the study identified transportation (buses, cabs, etc.) and national defense as two promising industry growth sectors in the short term.

While many ADAS technologies that enable a degree of autonomous vehicle operation have already been adapted across the market—collision avoidance, automated brake assist, adaptive cruise control and self-park assist, to name a few—the realization of fully autonomous operation for OE production cars is still in the more distant future.

“I think GM had promised that we’re going to have a fleet of 50,000 autonomous vehicles on the road within the next four years,” Knapp recalled. “That was five years ago. It hasn’t happened.”

Still, as with EVs, the investment community, the OE manufacturers and the Silicon Valley tech companies have made it clear that they see autonomous vehicle technology as a viable growth market going forward.

“The biggest names in technology—companies with lots of money, such as Google, Microsoft, Apple and Amazon—are putting multi-billion dollar investments behind autonomous vehicles,” Knapp said. “Recent investments in [GM-backed] Cruise and [Google-owned] Waymo have shown them at valuations of $30 billion—and those are companies that have not produced any cars and, frankly, are quite a way from producing any road-going cars. But again, the money is following that technology.”

And the manufacturers are putting their platforms to the test. In California alone, Knapp noted, there are 63 companies that have permits to test AVs on public roads. Last year, 650 AV test vehicles reported mileage of almost two million combined miles.

Even with its current drawbacks, there are specific applications where AV technology could be employed before it becomes production-vehicle ready.

“Where we will see a lot more movement in the short term is with the special-use cases, such as a people mover,” Knapp said. “Basically, it’s a low-speed vehicle. It’s limited to a very specific area, like a parking lot at a university or a business park, and its object is to function like a small bus. People get on, get to where they’re going and get off. You’ve probably also seen those little drone autonomous delivery vehicles. They are coming too.

“Another area that seems to be a big push, which may be a little scary, is in long-haul trucking—basically the biggest vehicles on the road. It’s another area where people are predicting that autonomous driving may come early, at least for the highway portion of the route.”

Tesla, for one, is in the late testing stages of a Class 8 semi truck that is slated to enter production for preorder buyers later this year.

And Those Flying Cars?

For the foreseeable future, flying cars remain as they have been since they were envisioned in the ’40s and ’50s—an aspirational vehicle that’s still more embedded in theory than reality.

“We’re just not there yet,” Knapp admitted. “The space we’re in right now, there’s a lot of companies that are pushing out prototypes, who are pushing out hopes to do that, but most of the things coming out would be more like personal helicopters or large-scale drones. I think most companies are angling more for a commuter taxi type of setup rather than being actual cars that you drive and fly yourself. But while we’re not quite there yet, maybe someday we’ll have flying cars.”

About SEMA Education

Accessing SEMA’s industry-leading education curriculum is easier than ever. With dozens of live and on-demand offerings—and more live-streaming during the year—SEMA Virtual Education includes comprehensive presentations and insightful discussions and videos that teach, inform and entertain automotive specialty-equipment professionals. Builders, engineers, marketers and sales staff can all become better educated and prepared for success through SEMA’s Virtual Education. Visit www.sema.org/virtual-education to learn more.

SEMA News—June 2021

BUSINESS

Is There Something in the Air?

EPA Enforcement, Compliance and What You Need to Know

By Daniel Ingber

There is something in the air and it smells like a shakedown. Ever since the Volkswagen diesel scandal broke six years ago, it seems like the government has set its sights on the automotive specialty aftermarket. You can’t open the newspaper without reading about another enforcement action or settlement.

Last year the Environmental Protection Agency (EPA) specifically said it was prioritizing “stopping aftermarket defeat devices for vehicles and engines” that override required emissions controls. No one expects things to get any better under the new administration.

Manufacturers, distributors and retailers alike are living in fear of a dreaded Notice of Violation or agents knocking on their door. Manufacturers and resellers of aftermarket performance tuners or parts for vehicle engine or exhaust systems are asking questions: What do I need to do to be left alone to run my business? How do I comply with the law when the rules seem to be changing all the time? How do I sell parts for race cars without the government coming after me? What can I do to help my company and the industry?

This article will answer these and other questions. Although this article is not intended as legal advice (after all, every company, enforcement action and situation is unique, and you should always consult your own lawyer), it does contain some legal talk. So bear with me here—I promise it won’t be so bad—and it may just help your company better navigate the tricky waters of emissions compliance.

The Legal Starting Point

Under the law, an aftermarket-part manufacturer cannot manufacture or sell products which defeat or tamper with the anti-pollution mechanisms of a vehicle. It will come as no surprise that the State of California was the first jurisdiction to establish emissions requirements for new automobiles—the California Air Resources Board (CARB) was formed in 1967, which pre-dated establishment of the Federal Air Quality Act of 1967. The Federal Clean Air Act (CAA) was passed in 1970, with major revisions in 1977 and 1990. Together, California and federal emissions law provides the legal framework for aftermarket compliance.

Manufacturers can demonstrate compliance with both federal and California law by receiving a CARB Executive Order (EO). Although the California Vehicle Code prohibits the sale of any part that alters or modifies a vehicle’s pollution-
control system, a part is exempt from this prohibition if it receives a CARB EO verifying a vehicle remains emissions-compliant with the part installed. As detailed below, one must submit an application to CARB and sometimes undertake lab testing to receive an EO for the part. A CARB EO is a golden ticket—neither EPA nor CARB will enforce against a part that has a CARB EO.

Clear as mud, right? Well, we haven’t even begun to talk about parts sold for race cars.

The Racing Angle

From the Clean Air Act’s inception, parts sold to convert street vehicles to vehicles used exclusively on the track fell outside the scope of the law. Of course, this makes perfect sense—a street vehicle converted for race use only (having attributes such as a roll bar, racing tune, etc.) and trailered to the track is no different than a purpose-built race car, and purpose-built race cars unambiguously fall outside of EPA jurisdiction.

In 2015, however, the EPA threw a wrench in the works, sneaking an interpretation into its rulemaking on an unrelated issue that would prohibit street-car to race-car conversions. That new interpretation would thereby prohibit the sale of parts that take a street vehicle out of compliance even if it became a track-use-only vehicle. Although the EPA quickly withdrew that official interpretation after a SEMA-led uproar—which included a White House petition that garnered more than 100,000 signatures—the EPA continues to stick to its guns. In fact, the agency has reiterated its position in recent enforcement litigation.

The EPA’s unreasonable interpretation of the Clean Air Act has sent a chill through the aftermarket and has manufacturers, distributors and retailers who sell parts for converted race cars looking over their shoulders. Even parts manufacturers who sell parts for dedicated, purpose-built race cars are worried that if their products find their way onto an outlaw street vehicle, they will be subject to enforcement. This is no way to treat a sector of the American economy that employs hundreds of thousands of people, generates billions of dollars in economic activity, and serves the needs of countless enthusiasts throughout the nation.

That’s why Congress needs to pass the Recognizing the Protection of Motorsports Act (RPM Act) ASAP. If you have been engaged with SEMA for the last few years, you probably already know what the RPM Act is. Still, here’s a refresher: The RPM Act reverses the EPA’s interpretation that the Clean Air Act does not allow a motor vehicle designed for street use to be converted into a dedicated race car.

Converting street vehicles into dedicated race vehicles is an American tradition dating back decades and has negligible environmental impact. The RPM Act will provide the racing community with certainty and confidence in the face of an EPA interpretation of the Clean Air Act that threatens to devastate an American pastime and eliminate jobs in our communities. That is why Congress must pass the RPM Act—now! Visit www.sema.org/rpmact.

Compliance Issues

For products intended to be installed on highway vehicles, the surest way to protect yourself from EPA/CARB enforcement is to obtain a CARB EO. Any product that affects airflow into or out of the engine, impacts the containment or delivery of fuel, or affects the functionality of an emissions control system or device must demonstrate emissions compliance to be considered legal for street use. This includes (but is not limited to) intake systems, exhaust components, tuning products, intercoolers, turbos and superchargers.

An application for a CARB EO is made with a test lab, which can test and evaluate the product, submit the application, and advocate for the product with CARB staff. To obtain a CARB EO, a manufacturer must submit an application that describes the product, its function and the range of vehicle fitment. Depending on the product’s complexity and potential impact, either an engineering evaluation or laboratory testing will be needed to demonstrate compliance. Testing requirements vary based on the type of product being tested. For example, superchargers and tuners must undergo more extensive testing than headers or air intake systems. The SEMA Garage operates a recognized testing facility, making it a viable option for member companies (see “Safeguarding Your Business,” p. 46).

Federal Compliance

A CARB EO is required under the law to sell an emissions-related part in California. At the federal level, the Clean Air Act prevents the modification of vehicles with products that impact emissions unless the vehicle remains compliant (just like California). Under EPA policy, the manufacturer of an emissions-related product must have a “reasonable basis” to market the product as compliant.

The EPA’s testing guidelines were prohibitively onerous until the agency issued its new Tampering Policy (Nov. 23, 2020). The agency has now identified three ways a company can demonstrate a reasonable basis for concluding that the specialty part is compliant: 1) having an CARB EO; 2) having applied for a CARB EO; or 3) performing equivalent independent emissions tests. The SEMA Garage is currently developing services that will help manufacturers test their parts and produce data establishing reasonable-basis compliance. Although California would still require a CARB EO, reasonable-basis testing should help companies bring products to market faster than seeking a CARB EO (or while waiting for California to issue the EO).

EPA Civil Enforcement

How does the EPA “find” you? Enforcement staff regularly review aftermarket manufacturer, distributor and retailer websites and social-media content to identify products that may take a vehicle out of compliance with applicable clean-air standards. Marketplace competitors also provide tips and information. Investigators will look at claims made about performance enhancement and any listed limitations on the use of the product to identify potentially illegal products.

EPA enforcement investigations can be overly aggressive and very disruptive (or even destructive) to businesses. As an example, Susan Peachtree (all names have been changed to protect the innocent) owns a successful warehouse distribution company that sells thousands of products—from suspension accessories to superchargers to tuners—through its website and catalog. Peachtree’s EPA enforcement ordeal began with an unannounced visit. (Peachtree, knowing her rights, declined to grant the agents access to her facility.) She then received the dreaded “208 letter”—an official Request for Information under § 208(a) of the Clean Air Act which authorizes the EPA to investigate.

“I was in a state of shock when I received this letter,” said Peachtree. “It was 20 pages long and demanded information on hundreds of products—including SKUs, pricing information, advertising information, technical information… The scope was breathtaking—anything affecting OBD, exhaust, catalysts… The list goes on and on.”

Peachtree wisely hired an attorney to immediately begin negotiations with the EPA regarding the range of the request. Together they tried to persuade the EPA investigator that the list of parts being targeted, and the time period covered, were too broad and onerous. Because fines could be in excess of $3,750 per violation (now $4,819 per violation), the EPA was threatening Peachtree with a multi-million-dollar penalty. “Basically, the EPA was threatening to destroy my business,” she said, “a business I have spent my entire life building.”

“Most of the parts on the EPA’s list were completely benign,” her attorney told me, “and for months the investigator would not even discuss the issue. It was clear to me that the investigator did not truly understand the parts or the industry, and simply wanted to threaten my client with as high of a fine as possible.” The EPA continued to pepper Peachtree with invasive requests about revenue and finances. “I was living with a cloud over my head,” she recalled. “I was losing a lot of sleep.”

Finally, after a year and a half—and a lot of back and forth between Susan’s attorney and the EPA—the EPA settled the case for a low six-figure sum (representing a fraction of the initial settlement amount proposed by the EPA) and an agreement limiting the parts that Peachtree could sell. Between the fines, attorneys’ fees and the enforcement ordeal, her business barely weathered the storm. “I am lucky that I am still in business,” she said, “but the whole process left a very bad taste in my mouth.”

Mark Binkens (a pseudonym to protect his clients), an attorney who defends clients in EPA and CARB enforcement actions, summed it up this way: “This is how they do it. They threaten exorbitant fines that no company can ever pay. They wear you down with onerous information requests, ask for financial documents to establish your breaking point, and finally offer a settlement just shy of that breaking point. No one can afford to take them to court because attorneys’ fees add up so quickly and fines are so high that it isn’t worth the risk. It’s a shakedown.”

Binkens added an ominous observation regarding the EPA’s actions: “Through the process the EPA also gains access to all of your suppliers, manufacturers, customers and shops you are doing business with.”

Unannounced Visits

Some SEMA-member companies have even reported unscheduled worksite visits by EPA enforcement personnel. EPA employees have been informing the companies they visit that they are carrying out investigations and have typically provide business cards to identify themselves. However, the enforcement teams usually provided little or no other paperwork connected with, or explaining the purpose of the visit.

If EPA or CARB does investigate your business, SEMA strongly advises you to work with an attorney to respond. Initial missteps during an investigation can have long-lasting consequences. If an EPA or a CARB official visits your facility unannounced, company personnel should respond in a business-like manner. It is appropriate to request official identification and a business card. Let the officials know that company policy requires employees to first confer with top management and legal counsel before granting any access. Ask the official to provide a written request for the information being sought. Then call your lawyer. In addition, SEMA staff are available to assist member companies in understanding the investigative process and can provide a list of attorneys experienced in this area of law.

This article has covered a lot of ground and a number of complex issues. The bottom line is that emissions compliance is something that the EPA takes seriously. The agency has stepped up its enforcement. But now, hopefully, you’re up to speed and educated in the legal, compliance and enforcement basics that can help protect your business from the knock at the door.

Safeguarding Your Business

How can you protect yourself against EPA/CARB enforcement? Below are things to think about.

My Company Manufactures or Sells Parts for Street Vehicles

• Obtain a CARB EO for any part that affects airflow into or out of the engine, impacts the containment or delivery of fuel or affects the functionality of an emissions control system (such as air intake systems, exhaust components, tuning product, intercoolers, turbos and superchargers). You can work with the SEMA Garage to design, develop, and test your part to obtain a CARB EO.
• If the part is not a performance or engine product (such as an aftermarket spoiler, rims, etc.), you can manufacture and sell it without worrying about EPA/CARB enforcement.
• A part can’t legally be sold for, or installed on, a street vehicle if the part can’t be engineered or designed in a way that maintains the function of a vehicle’s original pollution-control system (for example, DPF delete devices, racing tuners or cold air intake that increases emissions).

My Company Manufactures or Sells Parts for Competition Vehicles

• The Clean Air Act does not apply to parts manufactured and sold for street vehicles that have been modified to be track-only vehicles, but the EPA says otherwise. Help pass the RPM Act and save our race cars!
• In the meantime, know your customer. Document as much as you can that the vehicles you are manufacturing or selling for are race vehicles and have attributes such as roll bars, belong to a race team, or don’t have license plates.
• Ensure the number of units manufactured or sold supports sales that are for race-use-only vehicles.
• Do not rely on “For Race Use Only” labelling alone; it will not protect you from EPA enforcement.
• If you manufacture or sell parts for purpose-built race vehicles, the EPA probably won’t target you. Still, it’s possible, if highly unlikely, that if one of your parts ends up on a street vehicle the EPA will come knocking. “Trust us” isn’t good enough from the EPA: help pass the RPM Act.
• Be cognizant of your advertisements and social-media content. A viral video of a non-Clean-Air-Act-complaint vehicle doing burnouts on the street or a truck off-roading and belching out black smoke is an evidentiary “gift” to enforcers.

My Company Is a Distributor or Retailer

• Enforcement activities have targeted warehouse distributors, jobbers and some retail outlets because they are visibly marketing a variety of products and may not be as knowledgeable as the manufacturer about EOs and certification obligations.
• Ask your suppliers if their parts have CARB EOs and question them about a part’s legality.
• Advertise parts appropriately (for example, don’t show a license-plated vehicle on an advertisement for a race-use part) and be wary of claims made on websites (such as horsepower gains, etc.).
• Be mindful that based on the number of parts a distributor sells, fines can be extremely high.

Emissions Testing at the SEMA Garage

The SEMA Garage is available to assist with CARB EOs. It includes a CARB-recognized emissions laboratory for testing products at an affordable cost. The lab capabilities cover all tests (except evaporative testing when necessary) that may be required by CARB for the purposes of obtaining an EO for both gasoline and diesel vehicles. For more information on the SEMA Garage Compliance Center, go to www.semagarage.com or contact the staff at 909-978-6728 or garage@sema.org.

Additional Resources

• SEMA Government Affairs & SEMA PAC
• RPM Act
• SEMA Action Network (SAN)

 

Clean-Air Compliance

How SEMA Is Helping the Industry

By Daniel Ingber

Compliance Testing and Education

The SEMA Garage is available to help SEMA-member auto parts manufacturers with part design and demonstrate that a vehicle will remain emissions-compliant when the product is installed. The Garage’s Compliance Center includes experts and resources available to help members navigate the process, including evaluation of your product and recommendations for compliance procedures, assistance with the CARB EO process, interaction with CARB staff on your behalf, and review and evaluation of test data. SEMA also works closely with CARB and California lawmakers to ensure that testing procedures are fair and that EO applications are processed quickly.

SEMA also works with the EPA to assist our members in complying with the law. The EPA’s recent Tampering Policy, which will allow for more streamlined federal compliance, was a product of SEMA’s collaboration with EPA. SEMA also educates the EPA to dispel myths about the industry and to assist the EPA in setting enforcement priorities that do not unfairly target the aftermarket.

SEMA’s education programs help members comply with a complicated regulatory and enforcement landscape. SEMA’s February webinar on the EPA’s new Tampering Policy has been viewed more than 3,000 times (a SEMA record!), and the association has website resources on topics ranging from replica cars and vehicle titling/registration laws to state sales tax and Prop 65. Check SEMA eNews for new webinars and programs, and if you attend the SEMA Show this year, make sure to attend these two seminars: “Creating and Implementing an Effective Compliance Program to Manage EPA and CARB Risks,” and “Emissions Compliance: What You Need to Know,” which will include a panel of experts talking about EPA/CARB compliance and enforcement.

Fighting EPA Overreach

SEMA is leading the fight against the EPA’s overaggressive legal interpretations and enforcement tactics in the courts, the legislatures and the regulatory agencies. SEMA is determined to pass the RPM Act to correct the EPA’s misinterpretation of the Clean Air Act and allow racers to modify street cars into racing machines. SEMA also challenged the EPA in federal court on the assertion that a motor vehicle cannot be converted into a full-time race car. While the court did not address the issue directly, it did offer positive statements regarding the government’s burden of proof in such cases. Absent passage of the RPM Act or the EPA changing its position, this first-of-its-kind legal challenge is likely not the last.

SEMA is also leading the fight against overaggressive EPA enforcement. SEMA is asking the Office of Management and Budget, which oversees the regulatory process, to review and rein in the EPA’s use of unannounced site visits, government agents making overbroad or threatening statements, onerous demands for information, extortionate settlement demands, and other fear tactics employed by the EPA. SEMA will continue to oppose EPA overreach and protect the industry.

SEMA is committed to helping its members comply with the law and to influence the legal and regulatory compliance environment in a way that allows the industry to thrive. Through the SEMA Garage and Compliance Center, education programs, and working directly with the regulators and lawmakers, SEMA is easing the way for industry compliance.

Get Involved!

Being engaged with the government is an essential part of doing business as an aftermarket company. If you are a SEMA member, join the SEMA PAC and help SEMA throw its weight around Washington. Want to host a member of Congress at your company workplace? Let us know—SEMA helps arrange site visits. You can also represent the aftermarket and meet your lawmakers in person at the 2022 SEMA Washington Rally next May in D.C. Finally, every auto enthusiast should join the SEMA Action Network (SAN) to receive information about everything that affects enthusiasts and the industry, from the RPM Act to single license plate laws to military vehicle registration. The SAN is free, open to anyone, and a powerful tool to tell lawmakers what you think.

Additional Resources

• RPM Act
• SEMA Government Affairs & SEMA PAC
• SEMA Action Network (SAN)
• Washington Rally

SEMA News—June 2021

INDUSTRY NEWS

 Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

’22 Bronco Warthog Hybrid This may be a prototype of the upcoming Bronco Warthog. Unlike the prototype spied last year, the one seen here has a set of orange cables on the undercarriage. The cables appear to be high-voltage lines typically used in carrying currents in hybrid- electric configurations. The model features a single-tip exhaust outlet (possibly for EPA testing). By comparison, the prototype spied last year without the orange cables featured a dual-tip, single exhaust outlet. Both of these are telltales that this prototype could be a Bronco Warthog Hybrid.
’23 Ford Mustang AWD   Here’s a first look at a very early mule for the next-generation (S650) Ford Mustang. Clearly based on the current S550 Mustang GT, the prototype is wearing light checkered camouflage on the front end, along with a smorgasbord of parts from various current Mustang variants: The lower splitter and side skirts are from the new Mach 1, and the dual-tip dual exhaust is an option on the GT and EcoBoost models. The most intriguing part is the execution of the rear brakes. While the regular Mustang GT features a small rear caliper mounted at the back of the rotor, this mule places a much larger caliper on the forward end of its rotor, with a small parking brake on the back of it. A set of cables entering the cabin from each wheel suggests data-collection practices.
’21 F-150 Raptor Here’s the ’21 Ford F-150 Raptor riding on 35-in. tires with new rims, with a first look at the optional graphics package. At the front, the package features a set of thick, black graphics in the shape of lines on the hood, accompanied by a set of thin white lines. The black graphics transition into dots as they reach the rear end of the hood. Things get a bit more interesting on the side of the box, where the thick black lines give way to a sparser pattern. The box also features the letters FP (with what appears to be a QR code tucked inside the P) for Ford Performance, as well as the U.S. flag and the number 03 to designate the third generation of the F-150 Raptor.

SEMA News—June 2021

INDUSTRY NEWS

Fast Facts

NASCAR announced that Eric Ryan was named to the position of vice president of communications. Ryan will provide leadership across strategic initiatives and day-to-day operations of the sanctioning body’s communications and public relations work in his new role. Based in Daytona Beach, Florida, Ryan will report to Chief Communications and Social Responsibility Officer Eric Nyquist. Working across Fortune 100 companies and some of the world’s most respected brands, Ryan has managed teams responsible for integrated internal and external communication initiatives across numerous corporate functions.

QA1 announced the expansion of its MOPAR suspension line with the acquisition of Gerst Tubular Suspension, a manufacturer of coil-over systems for classic Dodge, Plymouth and Chrysler platforms. Gerst has been producing high-end classic MOPAR coil-over systems for nearly a decade. The acquisition pairs Gerst’s popular MOPAR products with QA1’s manufacturing capability and distribution network.

Classic Instruments announced that Scott Avery was added to the team as the company’s performance gauge division manager. “Scott joined our team a little over a year ago and has been a great addition,” said owner John McLeod. “He has really stepped up to get our performance gauge offerings out into the performance world.” The Classic Instruments performance division is responsible for adding nearly 3,800 new parts to the company’s current product offerings.

DPI Off-Road Brands announced the acquisition of J.T.’s Parts & Accessories, manufacturer of Nitro Gear & Axle, which has been awarded three SEMA Global Media Awards for its product line. Customers will benefit from having access to DPI’s complete offering of industry-leading off-road products and one-stop-shop sourcing.

Dynabrade Inc. announced the retirement of President and CEO Hardy Hamann, effective March 31. Hamann served as the 98th president of the Industrial Supply Manufacturers Association (now part of ISA), representing 550 North American Manufacturers in 2002–03. Dynabrade will announce its new company president at a later date.

Several organizational changes were announced by Yokohama Tire Corp. (YTC). Jeff Barna, president of YTC, was promoted to president and CEO of YTC. Shinichi Takimoto, a senior managing officer of The Yokohama Rubber Co. Ltd. (YRC) and current CEO of YTC, will retain his role as chairman of YTC as well as president and CEO of Yokohama Corp. of North America (YCNA), chairman of Yokohama Tire Canada Inc. (YTV), and chairman of Yokohama Tire Mexico S. de R.L. de C.V. (YTMX). Takehisa Morimoto is the new chairman and president of Yokohama Tire Manufacturing Mississippi (YTMM). Tom Kenny, currently senior director of research and development at YDCA, was promoted to vice president of YDCA. Jeremy Kahrs was promoted to senior director of technical services at YDCA.

Following the company’s recent announcement of its acquisition of Cooper Tire, Goodyear announced that Ryan Patterson, currently president of its Asia Pacific business unit, will lead the integration effort as senior vice president for business integration. Nathaniel Madarang, currently managing director of Goodyear China, will succeed Patterson as president of Goodyear Asia Pacific. Prior to his role in Asia Pacific, Patterson was president of Goodyear’s North America consumer business, where he developed the company’s consumer strategy and its focus on high-value segments.

OTC Daihen Inc., a supplier of advanced manual and robotic welding systems, announced the promotion and appointment of Dr. Yasuhiro Kojina as president/CEO. Kojina replaces Shinsuke “Luke” Kadota, who is returning to Japan to become the deputy general manager of sales and marketing for the planning and administration department of the FA Robot Division at Daihen Corp.

Holley will become a public company as part of a definitive merger agreement with Empower Ltd.—a publicly traded special-purpose acquisition company. As a result of the agreement, Holley will become a publicly listed company on the New York Stock Exchange under the new ticker symbol HLLY. Holley President and CEO Tom Tomlinson and the current management team will continue to lead the combined company. Empower’s management team is led by CEO Matt Rubel and President Graham Clempson. Rubel is expected to serve as chairman of the board of directors. Holley is controlled by Sentinel Capital Partners LLC, a private-equity firm that will remain Holley’s largest shareholder upon closing.

The University of Northwestern Ohio (UNOH) announced a new degree in motorsports marketing. UNOH will now educate students to run this multi-billion dollar industry’s marketing side. According to the university, the new program marks the only four-year bachelor-degree program in the country focused on motorsports marketing. With one required internship, students have the chance to work within the motorsports field of their choice, from grassroots racing to the pinnacles of motorsports such as NASCAR, IndyCar and more. For more information, visit www.unoh.edu.

Permatex promoted Eva Pitts to director of sales. In her new role, Pitts will manage Permatex’s traditional and international businesses. Pitts joined Permatex’s parent company, ITW, in 2015 as brand manager for Rain-X wiper blades and appearance products with the car care division in Houston. She was promoted to group brand manager in 2017 and oversaw the launch of Rain-X Silicone AdvantEdge wiper blades. In 2019, Pitts transitioned into operations with the engine repair division, where she served as quality and EHS manager at Permatex’s facility in Solon, Ohio.

The Automotive Aftermarket Charitable Foundation (AACF) announced a new board structure, designed to expand the Foundation’s reach to additional markets and underserved aftermarket segments. Effective immediately, the board will consist of 30 members. Additionally, AACF also announced the appointment of two vice presidents to serve on the realigned executive committee: Luanne Brown, president and CEO of eTool Developers; and Jon Owens, national sales manager for Epicor Software.

SEMA News—June 2021

INDUSTRY NEWS

Industry Indicators: U.S. Economic Outlook Improves as Vaccinations Accelerate

Economic activity improved significantly in the early months of the year, according to the latest edition of “SEMA Industry Indicators.” The rate of vaccinations is accelerating, and the number of COVID-19 cases, while still high, is improving. Additionally, the COVID relief bill likely will push economic growth above forecasts for the back half of 2021 and through much of 2022. All of that paints a much better outlook for the economy as it moves past the pandemic.

Still, there are some potential risks. Inflation is a possibility, and prices in some segments of the economy are moving higher. Supply chains are constrained because of disruption from the virus. Additionally, consumers spent more money on goods over the past year, as many services were closed. Consumers stayed at home and bought items such as electronics and auto parts. As the country opens and restrictions lift, consumers may divert more money to things they haven’t been able to do, potentially slowing growth for certain segments of the economy.

For more information, download the new March “SEMA Industry Indicators” report today, and for a more in-depth, longer-term look at the path of recovery for the industry and the economy, check out the “SEMA Future Trends—January 2021” report at www.sema.org/research.

New Dates, Location Announced for 2021 INA PAACE Automechanika Mexico

New dates and a new location have been announced for the 2021 INA PAACE Automechanika Mexico. After careful consideration, and in light of the ongoing COVID-19 developments in Mexico and globally, this year’s edition will be held December 1–3, 2021, at the San Luis Potosí Convention Center in San Luis Potosí, Mexico.

San Luis Potosí is easily accessible and is an automotive hub for various plants, including both General Motors and BMW, along with more than 250 Tier 1 and Tier 2 suppliers. INA PAACE Automechanika Mexico showcases the latest technology and advancements over the entire spectrum of the automotive aftermarket industry. Registration information will be available in the coming weeks.

For more information, contact the INA PAACE Automechanika Mexico team at www.ina-paace-automechanika-mexico-city.us.messefrankfurt.com/mexico-city/en/contact.html.

SEMA Announces Plans for West Hall at LVCC for the 2021 SEMA Show

SEMA is on track to deliver an exciting in-person SEMA Show at the Las Vegas Convention Center (LVCC) November 2–5, 2021. With exhibits included in the LVCC’s newly constructed West Hall, the entire SEMA Show floorplan will be optimized and offer room for new features and enhancements for an improved overall attendee experience.

“The industry is eager to reconnect,” said Chris Kersting, SEMA president and CEO. “The return to an in-person SEMA Show gives resellers a chance to engage with an amazing gathering of suppliers, new products, stunning vehicle builds and networking opportunities. We are excited to provide our industry with a world-class marketplace that will help them grow and expand their businesses.”

The LVCC’s new West Hall is a 1.4-million-sq.-ft. facility completed in January during the COVID-19 shutdown. Details on additional resources, including a new online component that focuses on manufacturers, new products, feature vehicles and educational resources, will be announced as they are finalized in the coming weeks. For all the latest developments, see “The In-Person SEMA Show Is Back” on p. 50 of this issue.

Registration Open for SEMA Nordic Trip

Join SEMA on the first SEMA Nordic trip, August 25–29, 2021, in Stockholm, Sweden. Participants will learn the potential for their products in the area’s performance and classic-car paradise. Meet with top trade buyers who enable the half-century-old craze in Sweden and the surrounding countries of Norway, Finland and Denmark to restore and upgrade American classic cars.

The region hosts the headquarters of the European drag-racing championship. Rally racing and drifting also enjoy fan support. A robust sportsman program allows enthusiasts to use their more modestly upgraded rides in numerous competitions. High disposable income, a love of American vehicles and products, and a passion for personalization make this an attractive region.

The SEMA Nordic trip is the fifth region for the popular SEMA Business Development Programs. These low-cost, turnkey overseas events bring together SEMA-member manufacturers and buyers from key global markets. The price of the upcoming trip includes hotels, a tabletop display, meals and networking events. Prices start at $4,500 per company, not including flights to/from the United States. U.S. government grants (federal and state) are available to help defray the cost for qualified companies.

For more information, visit www.sema.org/nordic or contact Linda Spencer at lindas@sema.org.

Compiled by SEMA Editors

S. Torrence, Hight and Hartford Earn Wins at Rain-Delayed MOPAR Express Lane NHRA SpringNationals Presented by Pennzoil

Three-time defending Top Fuel world champ Steve Torrence finally conquered Houston Raceway Park, racing to the victory on Monday at the 34th annual Mopar Express Lane NHRA SpringNationals presented by Pennzoil at Houston Raceway Park. Robert Hight (Funny Car) and Matt Hartford (Pro Stock) also won in their respective categories at the fifth race of the 2021 NHRA Camping World Drag Racing Series season. Eliminations were postponed to Monday due to inclement weather on Sunday.

Torrence pedaled to a 4.001-second pass at 260.06 mph in his 11,000hp Capco Contractors dragster to beat veteran Doug Kalitta in the final round, earning this third win this season and extending his points lead.

In their 70th career meeting in eliminations and ninth time in the final round, it was Hight who got the best of Ron Capps in a matchup of Funny Car heavyweights, with Hight going a 3.916 at 327.19 in his 11,000hp AAA Texas Chevrolet Camaro SS.

In the Pro Stock final, Hartford picked up his first victory of the year in his Total Seal Chevrolet Camaro with a run of 7.660 at 145.11. Final-round opponent Deric Kramer had even more trouble, shaking the tires almost immediately to help hand the victory to Hartford.

The NHRA Camping World Drag Racing Series returns to action June 11-13, with the TascaParts.com NHRA New England Nationals presented by Bandero Premium Tequila at New England Dragway.

Mooresville, North Carolina, Provides $100k in Support of Motorsports

Iredell County Economic Development Corporation (EDC) will launch a technical assistance program called ReVamp to help local motorsports teams and component manufacturers diversify to serve new markets. The program was made possible through partnership and funding from the Town of Mooresville and Industry Expansion Solutions (IES) at North Carolina State University. The ReVamp program will support companies with matching funds up to $10,000 per company for technical support assistance. The Town of Mooresville has provided $100,000 to Iredell EDC to support the ReVamp program, which was launched in response to the changes resulting from the impact of both NASCAR’s Next Gen car and the impact of COVID-19 on the racing industry.

The initiative is modeled on a program previously deployed by IES to help Department of Defense contractors diversify. Two local companies—Roush Yates Engines and MSI Defense— participated.

ReVamp is one of three programs developed by Iredell EDC to respond to the changes happening in the motorsports industry, including ReGen, a series of “lunch and learns” webinars to provide local manufacturers basic tools for diversification and to invite them to the “deeper dive” of ReVamp. Stream 2021, hosted earlier this year, brought together Charlotte region manufacturers to facilitate supplier and procurement opportunities for companies. For more information, visit iredelledc.com/revamp. To register for the webinar, click here.

For more racing news, visit Performance Racing Industry’s (PRI) website.

By Kyle Cheng

The current outlook of the U.S. economy remains positive, with several tailwinds helping to drive the recovery. States have lifted many COVID-19 restrictions as vaccination rates rise and consumers are responding. This, combined with loose federal monetary policy and stimulus payments, is spurring consumer spending.

Retail sales are nearly 18% higher than they were prior to the pandemic in February 2020—further helping the recovery. It will be difficult for retail sales to continue to grow at these historic rates in the coming years and months, as the increased opening of the service economy will likely pull away some of this growth in the later part of 2021.

New-vehicle sales hit record highs in April. However, supply constraints are hurting production levels. The auto sector is racing to keep up with this historic demand, but supply-chain shortages may take some time before fully recovering.

For more information, download the new May “SEMA Industry Indicators” report today at www.sema.org/research.

By Ashley Reyes

As CMO and executive vice president of Redline Detection, Alex Parker has been instrumental in helping the company succeed and grow. In addition to receiving the 2020 SEMA Manufacturer of the Year award, Redline Detection is a leader in diagnostic leak detection technology.

Parker’s unique background in psychology, digital marketing and publishing has helped Redline Detection generate great brand buzz. Get tips and insight on how she’s developed a proven recipe for success during her SEMA Businesswomen’s Network (SBN) Facebook live chat, Wednesday, June 2, at 12:00 p.m. (PDT), on the SBN Facebook page.

Participants will learn how to get a brand noticed, what tools are available to make it simple and what mistakes brands make when pushing messages out. As a Facebook live chat, participants will be able to communicate with Parker live and get their questions answered in real-time.

By Ashley Reyes

SEMA members that manufacture or install products for Advanced Driver Assistance Systems (ADAS)-equipped vehicles are invited to join the SEMA Garage as they kick off a new three-part ADAS webinar series.

Ideal for businesses who manufacturer or install parts that alter a vehicles body, suspension, or wheels and tires, the series will cover ADAS technology, resources, and case studies, information on how ADAS systems work and how they are affected by various vehicle modifications or repairs.

During Part 1 “ADAS Technologies: Real-World Systems & Trends,” taking place June 16, at 11:00 a.m. (PDT), attendees will hear and learn from top industry experts as they provide a high-level look at current ADAS systems' function, technology and trends.

Register for Part 1 – ADAS Technologies: Real-World Systems & Trends.