SEMA News - December 2010

	Media registration for the Motorsports Parts Manufacturers Council Media Trade Conference is open and available online.

Media registration for the MPMC Media Trade Conference to be held January 25–27, 2011, in El Segundo, California, is open and available online at www.SEMA.org.

To register for the conference, which is free and includes lunch each day, visit the SEMA website, click on the “Media Trade Conference” link under the “Events” heading and use the “Register Now” link.

The annual conference features members of SEMA’s Motorsports Parts Manufacturers Council (MPMC). It brings together editorial staff from around the world with the industry’s top performance parts producers for 30-minute, face-to-face meetings.

Media representatives can build new relationships, flesh out editorial calendars and get a first-hand look at technical and new-product material.

More information on the MPMC Media Trade Conference is available by contacting Jim Skelly at jimsk@sema.org.

For additional information regarding press registration, contact Della Domingo at dellad@sema.org.

 

Wheel & Tire Council Conference and Product Showcase

	The WTC Conference and Product Showcase includes panel discussions as well as an exhibit area where companies can display their latest products.

Members of the wheel and tire industry are invited to join the Wheel & Tire Council (WTC) for its inaugural WTC Conference and Product Showcase.

The event’s three panel discussions will focus on best practices to help businesses increase sales and drive traffic, and the product showcase provides an exhibit area for new products where companies can garner valuable feedback prior to going to market.

The conference is set for Wednesday, February 9, 2011, at SEMA’s headquarters in Diamond Bar, California. It will be anchored by the WTC Long-Range Planning meeting—a critical council planning session that sets the agenda for the group’s activities for the year.

The WTC invites wheel and tire professionals to get involved and participate in the meeting by providing concerns and feedback to help determine the direction of the group and its impact on the industry. 

For more information on the event, a breakdown of the day’s agenda or to register as an attendee or exhibitor, visit here.

Learn more about the WTC here.

 

Restyler Training: Sharper Skills for the Showroom and the Bay

	The Technical Skills & Training Conference delivers the tools to help restylers hone their installation and sales skills.

SEMA’s Professional Restylers Organization (PRO) teamed with the WyoTech campus at Blairsville, Pennsylvania, to provide restyling businesses with the tools needed to excel and succeed through the Technical Skills & Training Conference (TSTC). Set for March 28, 2011, from 7:30 a.m.–7:30 p.m., the TSTC features installation workshops, sales-training sessions and hands-on demos to help ensure that your business is firing on all cylinders in the showroom and in the installation bay.

Restylers will gather information that can be used immediately—whether it’s uncovering cross-marketing opportunities, boosting profits through new products or putting to use tactics gleamed from industry insiders.

Participants will also meet and mix with restyling industry leaders during the day and can catch up and socialize with colleagues and peers through the TSTC’s evening reception. 

Visit here for complete details on the event and to register. The cost for PRO members is $25 for the first attendee and $15 for each additional attendee per company. For non-PRO members, the cost is $50 for the first attendee and $30 for each additional attendee per company.

Learn how PRO can benefit your restyling business here.  
 

Get Your Website Revved Up for 2011

	Downloadable sessions that deliver technical and practical strategies for enhancing the effectiveness of websites are available through the SEMA webinar program.

SEMA members looking to get more out of their websites are encouraged to access the professional insight delivered through SEMA’s webinar program. There are sessions available that provide technical and practical strategies that can be immediately put to use.

Looking for assistance on how to measure the effectiveness of your current website? Check out the webinar “5 Tips to Improve Your Website Now” to identify whether customers are finding what they need on your website, how your site is performing and what you can do to make improvements.

If reaching more customers is one of your site’s goals, download “Connect With Customers on Blogs: What You Need to Know” to learn how to use blogs to generate buzz and build brand loyalty.

One of the most enticing factors of SEMA’s webinar program is that it’s free. Whether you are attending a webinar live or downloading a previously conducted session, members can do so free of charge.

In addition to Internet- and website-related sessions, the program features a wealth of sessions in several categories, including marketing and advertising, sales, international and legal and customer service.

Get started here.

 

Fast Facts

Classic Design Concepts appointed Bill North vice president of business development. North is responsible for day-to-day operations, new-business development and corporate programs. North previously held several positions with Webasto, including national sales manager and business development manager. Classic Design Concepts, Novi, MI; 866/624-7997.

Pecca Leather announced that it has relocated to expanded facilities in Downey, California. The new 10,060-sq.-ft. headquarters consists of enlarged office space housing administrative and sales staff as well as 9,000 sq. ft.
dedicated to warehousing inventory and a newly created cut-and-sew operation. According to Jeff Cater, vice president of sales and marketing, these new features enable Pecca to more quickly prototype and design leather kits for new-model vehicles and provide superior custom capabilities. Pecca Leather, Norwalk, CA; 562/623-0781.

	Alex Tanish

Parts Unlimited Inc. (PUI) hired Alex Tainsh as executive vice president. Tainsh is a 28-year industry veteran and founding member of the Automotive Restoration Market Organization (ARMO). He is currently serving as the ARMO chair-elect. For the past 13 years, Tainsh has worked with TrimParts and SoffSeal. Parts Unlimited, La Grange, KY; 800/342-0610. At the ASA Tire Systems’ InfoExpo user conference in Dallas, ASA customers met with experts, enthusiasts, business leaders and innovators from the tire industry to network and learn more about the technology used in their tire dealer businesses. The event included 100 attendees, 15 exhibits and special networking and social events. ASA Tire, Merrimack, NH; 603/889-8700.

Dr. Hans-Joachim Schöpf and Barry Huff were named to the board of directors at Fisker Automotive. Dr. Schöpf has an automotive career spanning 38 years. He held critical positions at Mercedes-Benz, including executive vice president and member of the board of Mercedes Car Group, with links to Chrysler, Mitsubishi and McLaren. Huff has four decades of international financial experience, which includes serving as Deloitte LLP’s vice chairman from 1995–2008.

	Krissy MacLauchlan

BedSlide, a brand of Tākit, named Krissy MacLauchlan key account manager. The company reported that she will work with larger accounts to spearhead initiatives and projects, while continuing to focus on new product lines. “There are often many hats to wear when servicing clients,” MacLauchlan said. “I am very much looking forward to being on the team here. It’s a team effort with the goal of exceptional customer care that makes a company stand out.” BedSlide, Medford, OR; 888/807-0099.

Meyer Distributing Inc. added a new cross-dock location in Detroit that provides route delivery to the Detroit metro area, Toledo, Ann Arbor, Lansing and Flint as well as provision shipments to Toronto, Ontario, Canada. In addition, Meyer announced that its 2011 eMeyer Mega Show will be held February 21–March 18, 2011. eMeyer is a virtual trade show that spans four weeks and allows retailers nationwide to participate without the costs of travel and time away from the office. Meyer Distributing, Jasper, IN; 800/MEYERUSA.

Douglas Romstadt was appointed president of Ken-Tool. Romstadt succeeds Alec Pendleton, who will continue with Ken-Tool as chairman. Romstadt joined Ken-Tool in March 2004, serving as the company’s comptroller. “It is a great honor and opportunity to lead Ken-Tool into the future,” Romstadt said. “I have major shoes to fill, following in the tracks of previous leaders like Scott Meyer and Alec Pendleton.”

Shawn Raines was named sales and viral marketing manager for Fidanza Engineering Corp. Raines was a sales associate prior to assuming his new position. He has been with Fidanza for more than four years, maintaining an active lifestyle in the enthusiast and auto racing scenes. “We’re enthusiastic to have Shawn move into this position,” said Fidanza President Jeff Jenkins. “We wanted to promote internally; who else knows our company better? We’re confident Shawn will help move us in the right direction.” Fidanza, Perry, OH; 440/259-5656.

	Bryan Wilson

Midway Industries Inc., the parent company of Centerforce Clutches, promoted Bryan C. Wilson to general manager. The company feels that Wilson, who has more than 15 years of experience managing the Midway/Centerforce marketing and IT departments, is well qualified and prepared to take over the helm as general manager. “My main objective will be to help Centerforce be even more effective in bringing exciting, high-quality clutch products to the automotive aftermarket,” Wilson said. Centerforce Clutches, Prescott, AZ; 928/771-8422.

Performance Industry Publishing formed a new partnership with Roadhouse Marketing. Roadhouse will have the exclusive national sales and marketing responsibility for Performance Industry Publishing, which includes Performance Motorsports News, Wizard Web Development and Thunder Parts Group.

Competition Specialties announced that its 39th Annual Mega Jobber Trade Show dates were changed to Saturday and Sunday, March 5 and 6, 2011. The event will take place at the Auburn, Washington, corporate headquarters distribution center. For more information on the event, contact Bill McConnaughey at 253/833-6211. Competition Specialties, Auburn, WA.

Mast Motorsports reported that the company made significant investment in its manufacturing capabilities by acquiring cylinder head and intake manufacturer Performance Induction Specialties to complement its growth in LS powertrain engineering and development. The new Mast Motorsports manufacturing facility will remain in Walled Lake, Michigan, and will utilize the latest manufacturing equipment and software. Mast Motorsports, Nacogdoches, TX; 936/560-2218.

Solamatrix Inc. was acquired by Madico Inc., a wholly owned subsidiary of Lintec Corp. According to a recent press release, Solamatrix Inc. is now a wholly owned subsidiary of Madico Inc., and both companies will continue to operate and serve their markets independently. The companies will be carefully integrated to leverage how they best work together for the benefit of the new organization, suppliers and customers. Solamatrix Inc., St. Petersburg, FL; 727/327-2544.

National Performance Warehouse (NPW) named Pat Saunders to the newly created position of vice president of sales and marketing west. Saunders will be responsible for West Coast business development, including strengthening the sales forces both inside and out, expanding into new markets and energizing the existing customer base, according to NPW. National Performance Warehouse, Miami, FL; 305/953-7270.

TMG Performance Products, a division of The Mifsud Group, announced that Craig Kohrs was promoted to vice president and general manager. Kohrs, who previously served as vice president of marketing and sales, will be responsible for the everyday operation of TMG Performance Products. TMG Performance Products owns and operates Corsa Performance Exhausts, a manufacturer of performance exhaust systems for cars, trucks, SUVs and marine applications. TMG also announced that it will consolidate all of its operations to its headquarters in Berea, Ohio. Corsa Performance, Berea, OH; 440/891-0999. 

Craft Oil Corp. announced that it is now a distributor of Clean Burn products. Craft Oil will distribute and service Clean Burn energy systems throughout the north, east and southern portions of Pennsylvania, parts of Delaware and all of New Jersey. Craft Oil, based in Avoca, Pennsylvania, has served as a Clean Burn dealer for more than 15 years.

Standard Motorcycle Products launched a new website, www.standardmotorcycle.com. The company reports that the new site serves as a valuable resource for customers to learn about the product line, locate distributors, access the online catalog and more.

VP Racing Fuels was named the official fuel of Mazda Raceway Laguna Seca. As part of the agreement, VP will be the exclusive supplier of race fuels at the track. VP Racing is the official racing fuel of the American Le Mans Series, NHRA Championship Drag Racing, Star Mazda and USF2000. VP Racing Fuels, Elmendorf, TX; 210/635-7744.

The International Show Car Association (ISCA) has added three indoor custom car events to the Summit Racing Equipment Show Car Series schedule for the 2010–2011 show season. The new events include the Grand National Roadster Show in Los Angeles, home of the America’s Most Beautiful Roadster award; the Sacramento Autorama in Sacramento, California, known for its Custom d’Elegance and King of Kustoms awards; and the Little Rock O’Reilly Auto Parts Auto Extravaganza in Little Rock, Arkansas, which features a $5,000 prize for the winner of the Top of the Rock award. With these additional shows, the Summit Racing Equipment Show Car Series now encompasses 37 events across the United States and Canada. Summit Racing Equipment, Akron, OH; 330/630-0270.

Vogue Tyre and Rubber Co. hired JMPR Public Relations as its PR agency of record. JMPR will handle media relations responsibilities for Vogue, including the launch of new Vogue products; raise brand awareness within the industry and among consumers; and direct and coordinate media-related events. Vogue Tyre, Mount Prospect, IL; 847/297-1900.

Organizers of the Global Automotive Aftermarket Symposium (GAAS) announced that sponsorship opportunities are available for the event, Wednesday–Thursday, May 18–19, at the Hyatt Regency O’Hare near Chicago. A brochure outlining all 2011 GAAS sponsorship opportunities is available for download at the GAAS website (www.globalsymposium.org) under “Sponsorship.” 
 

SEMA News - December 2010

The images and information provided in “Spy Photos” are supplied by the spy shooters at Brenda Priddy & Co. “Spy Photos” are included each week in SEMA eNews, the association’s electronic newsletter. To receive your copy of SEMA eNews, e-mail enews@sema.org.  

 

2012 Camaro Z/28

When It Hits: Watch for the 2012 Camaro Z/28 to go on sale in the first or second quarter of 2011.

What Priddy Says: The Camaro Z/28, which Priddy says will have a front end close to the Transformers Camaro shown at the 2009 Chicago Auto Show and will carry the 6.2L LSA supercharged V8 taken from the CTS-V.

 

2011 Dodge Avenger R/T 

When It Hits: Production for the 2011 Avenger is slated to start in November 2010 at the Sterling Heights plant.

What Priddy Says: The Avenger will get a dry dual-clutch transmission on the upper-end models and, as with most of the other Chrysler lineup, will also get the new 3.6L Pentastar V6 motor. Priddy also said that the 2.4L four-cylinder has been retuned for more power and efficiency.

 

2012 Subaru Impreza 

When It Hits: Production for the next-gen Impreza is currently slated to start in June 2011, according to Priddy, with the hybrid model following a year later in 2012.

What Priddy Says: The regular powertrain should continue to be the 2.5L Boxer motor, and some modest updates for increased fuel economy should be expected. While many details are hidden by thick camouflage, honeycomb grille inserts and very angular headlights are easy to see on this prototype.

 

2011 Buick Regal GS 

When It Hits: Look for production of the Regal GS to start late in the first quarter, or early in the second, of 2011 at Oshawa.

What Priddy Says: The Regal GS will have a 2.0L turbocharged four cylinder, all-wheel drive Brembo brakes, larger air intakes and sportier wheels and tires. While not spotted here, a previous sighting of the vehicle revealed production chrome tips.  

Photos Copyright of Brenda Priddy & Company.
Reuse or reproduction without the copyright holder's consent is prohibited

SEMA News - December 2010

21 SEMA-Member Manufacturers Explore New Market Opportunities in China

By Linda Spencer

Distributors and retailers from throughout China gathered in Beijing to meet with 21 SEMA-member companies that were participating in the first SEMA China Business Development Conference. The hotel-based program held in Beijing in September was built around a series of one-on-one meetings with pre-selected Chinese buyers who traveled to the event from cities throughout China, including Beijing, Shanghai, Ha’erbin in the far north, Guangzhou in the south and Hubei in the center of the country.  In addition to the pre-scheduled meetings, the program included a number of networking events and a day at the fourth annual edition of the China International Auto Parts Expo (CIAPE) automotive aftermarket trade show sponsored by the Ministry of Commerce, which was taking place at a nearby venue. The delegation was invited to the kick-off event, including a dinner at the Great Hall of the People, which serves as China’s parliament building and is located on the western side of Tiananmen Square.

“Connecting buyers with manufacturers is one of the fundamental roles that the association plays in domestic and global markets,” said SEMA Vice President of Communications and Events Peter MacGillivray, commenting on the purpose of the trip and the role of the association in fostering international business for its members. “We’ve known for a long time that a market for our industry is developing in China. It was exciting to see our members take an important step in developing the industry in this growing marketplace.”

			SEMA Members That Participated in the First SEMA China Business Development Conference
			AEM Performance Electronics Amsoil Inc. BDS Suspension Bilstein Bushwacker Inc. Comp Performance Group Delta Tech Industries LLC eBay Motors, eBay Inc. Eibach Springs Inc. Girard Systems Holley Performance Products Inc. (USA) Injen Technology K&N Engineering Inc./AEM Intake Systems Nitto Tire U.S.A. Inc. Performance Motorsports Inc. Powersheen Prestolite Performance Rennen International/Donz Wheelz SCT Performance StopTech Wheel Pros LLC

SEMA President and CEO Chris Kersting added: “Ninety-five percent of the world’s consumers live outside of the United States. The recent SEMA CIAPE China Business Development Conference provided a low-cost venue for our members to explore selling to some of these buyers located in the world’s most populous country. With 21 SEMA-member companies participating in the program’s first year and the majority of participants expecting to realize some sales in China within the next 12 or so months, I believe the program was a success.”

Kersting noted that the market is not without hurdles but that the long-term outlook is positive if these issues are addressed. “The Chinese market for accessories and performance products is new, and key issues and concerns that hamper or could hamper its growth need to be addressed,” he said. “Concerns over intellectual property rights, distribution logistical problems and the need for greater progress in legalizing specialty-equipment products are among the hurdles most often identified. But given the possibilities in this market, I believe it is imperative that SEMA members explore the market firsthand during these early days in its development so as to be in a competitive position to reap the benefits as the sector grows.”

SEMA Chairman Rick Rollins noted the optimism of the group. “Everyone I talked with after the meetings had good, positive feelings,” he said. “The one-on-one meeting concept really worked. Our member manufacturers got to meet face-to-face with Chinese businesses wanting to buy their products for selling and installing in the Chinese markets. The Chinese buyers’ businesses got a much better glimpse of what we are looking for in the distribution and marketing of our products in China.”

Rollins expects that next year’s event will be even larger. Indeed, if the initial survey of participants is any indication, the future looks bright. Nearly all of the companies noted that they developed strong leads at the event. In fact, 100% of the companies participating in the survey noted that they were likely or very likely to do business in China within the next 12 months. Nearly all of the companies plan to be back at the event next year, and enthusiasm was high to run a similar program in other key world markets.

For more information on SEMA’s China program or the association’s international resources, e-mail SEMA Director of International Relations Linda Spencer.

 

The SEMA delegation participated in the opening ceremonies of the China International Auto Parts Expo (CIAPE). The 21 SEMA-member companies went on opening day of the fourth annual show, a trade-only event.
SEMA Chairman Rick Rollins, who is president of Rollins Performance Marketing, checked out the project vehicles at CIAPE.
SEMA President and CEO Chris Kersting (left) chatted with Famous Rhodes, director of eBay Motors, eBay Inc.—one of 21 SEMA companies that participated in the first SEMA CIAPE China Business Development Conference.
Jeremy Barras (second from right), representing AEM Electronic products—a California-based manufacturer of performance electronics, gauges, controllers and other performance products—as well as StopTech—a manufacturer of high-performance brake systems for the racing and street-performance markets—talked with several buyers who sought him out during the networking breakfast.
Florida-based SCT’s Rick Trudo (right) and Mike Rogers (second, right) met in one-on-one discussions with buyers from throughout China who are increasingly seeking underhood products, such as ECUs, as engine performance grows in popularity.
SCT’s Trudo presented some distributors with SCT shirts. “At SCT, we see China as one of our targeted markets,” he said, “and this trip justified our belief in that. I honestly believe that the growth opportunity there is bigger than what we have today, if done right.”
SEMA Vice President of Marketing and Member Services Tom Myroniak (right) exchanged business cards with Albert Liu, president of Carboxing.
Trip participant and SEMA Chairman-Elect Scooter Brothers (right), COO of Comp Performance Group, talked with representatives of a Beijing-based retail business. “Prior to this SEMA conference, I still wasn’t sure if our future was going to be buying or selling in China,” he said. “After meeting one on one with some of the ‘real’ performance parts guys, it’s becoming clear that there will be a Chinese market for performance aftermarket parts. The meetings we had put us face to face with some of the early players in the Chinese automotive market, and it looks like they have the performance bug just as bad as we do in the States. Now we have the first step and can go back next year with a clear direction and put some meat on the skeleton. That is clear to us now.”
Gino Jiang of Team Jr. (left) posed with SEMA’s Chris Kersting, proudly displaying a certificate he received recognizing his company’s participation in the 2010 CIAPE SEMA China Business Development Conference.
Bob Bruegging (left) and Danny Chen (second, left) of Prestolite Performance answered questions posed by Chinese buyers during a one-on-one session. Prestolite makes flywheels, gaskets, heat shields and distributors, among other racing, performance and appearance products for U.S., Japanese and European vehicles. “Prestolite Performance made the trip to China as part of the SEMA contingent to learn about the state of the performance market and potential distribution partners that may be in place or that could be organized to perform such a role,” said Bruegging. “We also were curious about how many of our current product lines and actual products could be sold into this market. What we discovered was very encouraging to us. Several of our product categories can be easily adapted to the market in China, and we believe that the market will evolve rather quickly. Chinese laws have changed over the past several years, and personalization of vehicles is taking place right now. As discretionary income rises, so will the ‘want’ to personalize vehicles. It is the right time to make things happen.”
From right: Nitto’s Tanaka; Gloria Miyamoto, marketing manager; and Conrad Galamgam, tech department senior director, talked with a local buyer about Nitto’s products. The three traveled to China to explore the market for high-performance off-road, street and competition tires.
SEMA’s International Director Linda Spencer posed with Eibach Springs CEO Wilfred Eibach at the conclusion of a one-on-one meeting.
Ray Gross (second, left) of Powersheen answered questions about his company’s products at an informal session with media.
A distributor examined Injen’s products as Ron Delgado (in red), the company’s president, explained Injen’s air intake system features during a 35-minute one-on-one meeting. Nine of these sessions were held back to back, but many SEMA manufacturers met with many more buyers throughout the day due to the high number of buyers interested in meetings with SEMA participants. “I can’t say enough about our trip to China,” Delgado said. “I never imagined that this country would be so full of life and brimming with trendy people driving all makes and models of cars. Beijing is a jungle of modern high-rises, buzzing with activity 24/7. The volume of traffic is insane. It is definitely a new frontier for Injen to explore and conquer. We have established some very positive business contacts but, more importantly, we have made some life-long friends. The future looks very promising in China. This is just the beginning of our commitment to take the Chinese market by storm!”
Kenneth Merritt (middle), Bushwacker’s vice president of OEM sales, saw great potential for his company’s products in China. The Oregon-based company manufactures fender flares and other products for Jeeps and other light trucks. “My goals while in China with the SEMA delegation were to connect with existing customers and meet new ones,” said Merritt. “I was very pleased with the results. The one-on-one scheduled meetings with Chinese buyers that were coordinated by SEMA went very well because of the pre-screening. All of the buyers we met with were a great fit for our products. The Chinese market for Bushwacker fender flares continues to grow, and I continue to expect our sales in China to grow at a faster rate than our domestic market due to the rapid growth in demand.”
In addition to attending one-on-one meetings, each SEMA manufacturer participated in networking events, such as the one pictured at which E n Kenneth Merritt (middle), Bushwacker’s vice president of OEM sales, saw great potential for his company’s products in China. The Oregon-based company manufactures fender flares and other products for Jeeps and other light trucks. “My goals while in China with the SEMA delegation were to connect with existing customers and meet new ones,” said Merritt. “I was very pleased with the results. The one-on-one scheduled meetings with Chinese buyers that were coordinated by SEMA went very well because of the pre-screening. All of the buyers we met with were a great fit for our products. The Chinese market for Bushwacker fender flares continues to grow, and I continue to expect our sales in China to grow at a faster rate than our domestic market due to the rapid growth in demand.” ibach’s Julian Gil (second, right) chatted with a Beijing-based retailer.
Each company was provided with a private meeting room and a series of 35-minute meetings with pre-screened buyers. Kevin Floody (left), the international business manager for K&N Performance/AEM Air Intake Systems, is shown here in a one-on-one meeting. “I was very impressed with how fast the China market has grown over the past few years, especially since my initial visit in early 2008,” Floody said. “We were mainly looking to see what other opportunities may exist for our products, since China is such a large country with great growth potential. This SEMA-sponsored trip was a great way to evaluate interested companies in a narrowed focus. For K&N, the opportunities appear to be endless. I was amazed at how many companies already know the brand and want to have access to it.”
Buyers traveled from throughout China to participate in the SEMA CIAPE China Business Development Program. Holley’s Shanghai representative, Gang Chen (right), discussed the Kentucky-based company’s performance and replacement engine products with a buyer from northeastern China.
Jeremy Barras’ (second, right) schedule was packed with buyers interested in AEM Electronics and StopTech, the two brands he represented at the show.
Greg Sandbutte (second left), vice president of international business at Amsoil, spoke with buyers about the company's wide selection of synthetic oils.
Bogdan Durian, president and CEO of Delta Tech Industries, and his wife, Olga at the opening reception. Delta Tech is a manufacturer of automotive lighting for a number of light trucks, including the Jeep Wrangler, which is very popular in China. “My primary motivation to join SEMA’s conference in China was to explore firsthand the opportunities that this vast market and rapidly emerging economy had to offer for American-made off-road and accessory lighting products,” Bogdan said. “Our goal was to define the market and to identify prospective customers through SEMA’s pre-arranged conferences and by attending the CIAPE automotive show. All my goals were realized beyond my expectations. We are now in the process of setting up two or three distributors in Shanghai and the Beijing area. I definitely feel that there is a good market potential for high-quality American-made specialty products in each vehicle-specific niche. There is a great appreciation among the more affluent younger Chinese generation for good-quality American and European products.
Volker Wegerhoff (second, right), head of sales for Bilstein, and Martin Hyar (right), the firm’s regional sales manager, discussed their line of shock absorbers and struts with buyers from all over China.
Gary Kong (right), director of international sales for American Racing/Wheel Pros, talked with a Shanghai-based company before the start of the one-on-one meetings. Kong’s company makes products for Jeeps and other off-road vehicles, among other applications. “The desire for high-quality, reputable-branded auto parts from Chinese consumers is high,” Kong said. “The quantity of customers who can afford premium goods for their vehicles is growing fast. However, knock-offs, unauthorized sales from sub-contractors, lack of industrial and safety standards, variances in law enforcement and the highly competitive environment all pose challenges in exploring this big potential market.”
Jennifer Chang (middle), senior manager of eBay Motors, talked with the Beijing-based staff of a Hong Kong firm. “For eBay, Asia has always been a great place to source low-cost replacement parts to sell to U.S. consumers,” Chang said. “But after going on this trip, I realized what a huge opportunity there is for U.S. aftermarket brands to sell to Chinese consumers as well. Given that eBay is a global marketplace, we want to help facilitate this kind of trade between U.S. and Chinese aftermarket companies. I came on the SEMA trip hoping to meet potential partners for eBay, and I have come away with a great list of contacts to follow up with after speaking with various Chinese manufacturers and buyers as well as a much better understanding of just how big the opportunity is in China.”
David Thawley of eBay Motors (far right) provided an overview of the company to potential customers as Famous Rhodes, Director of eBay Motors, looked on.
SEMA Senior Vice President of Operations Bill Miller (right) chats with Post Release’s Tyler Tanaka, who is also the account executive for trip participant NITTO Tires as well as the chair-elect of the SEMA Street Performance Council. Commenting on the structure of this year’s SEMA trip to China, Miller noted, “The one-on-one meetings provided both the SEMA manufacturers and Chinese distributors and retailers great insight and a better understanding on how to capitalize on the immediate and long-term opportunities in China.”
Kerry Wang (far left), president of the China division of Rennen/Donz Wheels, spoke with buyers in a one-on-one meeting. The company manufactures forged and cast wheels for high-end vehicles.
From right: Eibach Springs Inc. China-based President Fong Yuen Wai, the company’s CEO, Wilfred Eibach, and General Manager of Eibach U.K. Julian Gil met with buyers eager to source products from the company.
Ron Coleman, CEO of Comp Performance Group, talked with Peter MacGillivray (right), SEMA’s vice president of communications and events, in a ceremonial room at the Great Hall of the People.
SEMA’s Bill Miller signaled to BDS’ Vice President of Business Andy Barbieri (second, right) that five minutes remained before the next meeting. Each SEMA manufacturer met with pre-vetted buyers in 35-minute one-on-one sessions. Barbieri was in China to determine how Chinese retailers and distributors go to market and also to gauge how big the demand for BDS suspension products is in China. At the conclusion of the trip, he noted that there was definitely a market for the company’s products. “I was surprised at the level of enthusiasm from the buyers we met with to source American-made lift and leveling kits that their consumers are asking them to import into China,” he said.
Girard Systems CEO Marcia Girard discussed the China market and her company’s full line of accessories for recreational vehicles with a local buyer at the SEMA CIAPE program while National Director of Sales Major Pogue (middle) looked on.
Ray Gross (right), president of Idaho-based Powersheen, talked with buyers interested in learning more about his tire-coating products.

SEMA News - December 2010

2010: The Year in Review

By Steve McDonald

The laws and regulations that govern how SEMA members do business have an increased and growing impact on the way automotive specialty-equipment products are made, distributed and marketed. As the nation and our industry struggle with a still-balky economy, SEMA’s charge is to stay on top of every relevant state and federal matter of consequence to its membership to ensure the best possible outcome.

CANADA UPDATE

Canada (Prince Edward Island) Nitrous Oxide: The province of Prince Edward Island enacted a new law to permit the installation of nitrous-oxide systems as long as the feed lines are disconnected or the canisters are removed while the vehicle is being operated on a public road. The law largely mirrors SEMA-model legislation to better protect public road safety while ensuring legitimate off-road uses of nitrous-oxide systems.

Canada Leaded Fuel Exemption: Environment Canada issued a SEMA-supported final rule to indefinitely extend an exemption allowing the use of leaded gasoline in competition motor vehicles. The new rule recognizes the relationship between the Canadian and U.S. racing industries and adopts a consistent environmental approach to leaded fuel use. Environment Canada will conduct a five-year review and revisit the exemption issue if necessary based on science, technology and fuel replacement developments. Meanwhile, Environment Canada will work with the racing industry to encourage a voluntary reduction or phase-out of leaded racing fuel.

STATE UPDATE

California Brake Friction Materials: A coalition of industry associations helped alter legislation that would have placed restrictive limits on substances in brake friction materials. The amended bill provides for exemptions for brakes to be used on vehicles manufactured by low-volume manufacturers and those to be used on vehicles manufactured before the prohibition goes into effect. Amendments to the bill also included the creation of an advisory board with the power to grant further exemptions on a case-by-case basis. The amended bill was signed into law by Governor Schwarzenegger.

California Emissions Tests: SEMA defeated legislation to require annual smog-check inspections for vehicles 15 years old and older. The bill would have required that funds generated through the additional inspection fees be deposited into an account that could have been used to scrap older cars.

California “Gas Guzzlers”: Legislation to authorize the establishment of a purchase surcharge for some new motor vehicles based on state calculations of carbon emissions was defeated. Funds collected under the program would have been used in part to fund rebates for vehicles, including hybrids and electric cars. SEMA opposed the bill because it would make popular performance and luxury cars as well as SUVs, light trucks and minivans substantially more expensive to own. The measure also would not necessarily curtail greenhouse gas emissions, which depend on a host of other factors, such as total
miles traveled.

California Tire Age Notification: SEMA derailed legislation that would have required tire dealers to provide a written disclosure to customers informing them about the risks associated with tire age. SEMA had previously asked the sponsor to adopt an amendment to exempt limited-production specialty tires from the scope of the tire-age notification requirement. This exemption is consistent with tire regulations at the federal level and California’s tire fuel-efficiency law. Similar legislation that would require automotive repair dealers to list on the invoice the manufacture date of any tire installed or sold was also abandoned.

California Consumer Products: Legislation to place additional requirements on the manufacture, sale or distribution of certain consumer products, including automotive products used to maintain the appearance of a motor vehicle (including those for washing, waxing, polishing, cleaning or treating the interior or exterior of the vehicle) was defeated. Under the bill, a manufacturer would have been required to disclose each ingredient contained in the product on the manufacturer’s website and provide the web address and a statement on the product’s label.

California Diesel Parts: California is now including the inspection of light- and medium-duty diesel vehicles in its smog-check program. In order for uncertified diesel parts to not cause failure of the visual portion of a smog check, the California Air Resources Board (CARB), in conjunction with SEMA and SEMA members, created a procedure whereby members were able to submit certification applications. CARB then conducted an “engineering analysis” of the parts and placed them on a “Products in Progress List.” Parts that fail the engineering analysis will likely be classified as defeat devices and not certified. Upon successful completion of this initial process, applicants will be given one year to conduct the required emissions tests and obtain certifications, during which time no diesel vehicle equipped with these parts will fail the visual portion of a smog-check test.

Colorado Emissions Exemption: SEMA-opposed legislation that sought to reset to 1959 the latest model year at which a vehicle is excluded from the emissions testing process was “postponed indefinitely” by the legislature. Currently, model-year vehicles ’75 and older are exempted. Colorado’s current emissions-test exemption recognizes the minimal impact of older cars on vehicle emissions and air quality.

Florida Tires: SEMA-opposed legislation that would have required tire dealers to disclose the date of manufacture and provide warnings related to the effect of aged tires was not considered by the legislature prior to adjournment for the year. Additional legislation prohibiting the sale of any new or used tire that is more than six years old was also not considered. The National Highway Traffic Safety Administration (NHTSA) has studied the tire-aging issue but has yet to reach a conclusion. SEMA contends that the service life of a tire is affected by many factors that are independent of the chronological age of the tire. SEMA recommends having tire inflation pressure checked and properly adjusted at least once a month to maintain safety and fuel economy.

Hawaii Tires: SEMA-opposed legislation that sought to prohibit the sale of any new tire that was manufactured more than six years prior to the date of the sale of the tire was defeated.


Kansas Inoperable Vehicles: A SEMA-opposed bill to allow cities and towns to enforce “nuisance abatement” procedures by notifying affected property owners by use of first-class mail instead of certified mail (with a return receipt) was withdrawn. Nuisance abatement laws are often used by local jurisdictions to force removal of inoperable vehicles, including parts cars stored on private property by car collectors. SEMA opposed the bill because owners could risk removal of valuable collector cars and parts without actual and verified notification, especially when they are not at home to receive a first-class mailing.

Kansas Specialty Vehicle Fees: SEMA convinced Kansas legislators to delete provisions from a revenue bill that increased the fees on antiques, street rods and special-interest vehicles. The language sought to raise the registration fees on these vehicles, including a $10 increase on January 1, 2013, and another $10 increase on January 1, 2014. The revenue bill, without the increased fees on hobbyist vehicles, was signed into law by Governor Mark Parkinson

Louisiana Inspection Exemption: A SEMA-supported bill to exempt antique vehicles 25 years old and older from the motor-vehicle inspection requirements was signed into law by Governor Bobby Jindal. Prior to the bill’s enactment, only vehicles 40 years old and older were exempted from testing. Non-exempted vehicles in Louisiana are subject to an annual vehicle inspection, including a safety-equipment inspection and, for vehicles registered in selected parishes, an additional emissions inspection.

Massachusetts Street Rods/Customs: Massachusetts Governor Deval Patrick signed into law a version of SEMA-model legislation to create a vehicle registration classification for street rods, custom vehicles, replicas and specially constructed vehicles. Replica vehicles will be assigned a certificate of title bearing both the year in which the vehicle was built and the make, model and year of the vehicle intended to be replicated. Under the new law, street rods and custom vehicles are exempted from emissions inspection requirements. The measure also provides that specially constructed and replica vehicles that are registered on or before April 30, 2012, will be exempted from emissions inspection requirements. If registered after April 30, 2012, these vehicles will be subject to emissions control requirements based on the model year and configuration of the engine installed, whether the engine is an original-equipment manufacturer’s production engine, a rebuilt engine or a crate engine.

Massachusetts “Gas Guzzlers”: SEMA-opposed legislation in Massachusetts to create a clean vehicle incentive program that would provide rebates to and require additional charges from the purchaser of new motor vehicles based on the vehicle’s greenhouse gas emissions has been defeated. Such legislation affects consumers’ abilities to purchase the vehicles of their choice, leading to potential safety issues and other concerns.

Massachusetts Exhaust Noise: A bill targeted for defeat by SEMA to ban the “use and sale of any exhaust pipe that increases the sound emissions of any vehicle, including motorcycles,” was set aside for study by the legislature. Among other things, the measure ignored the fact that aftermarket exhaust systems are designed to make vehicles run more efficiently without increasing emissions and did not supply law enforcement with a clear standard to enforce, allowing them to make subjective judgments on whether or not a modified exhaust system is in violation.

Mississippi Nitrous Oxide: Working with the Mississippi State Troopers Association, SEMA successfully negotiated a compromise on legislation that originally threatened to prohibit public road use of all motor vehicles equipped to supply the engine with nitrous oxide. The bill was signed into law by Governor Haley Barbour. Originally written as an outright ban, the new law allows for the installation of nitrous-oxide systems as long as the feed lines are disconnected or the canisters are removed while the vehicle is being operated on a public road. The SEMA amendment better protects public road safety while ensuring legitimate off-road uses of nitrous-oxide systems.

Nebraska Abandoned Vehicles: Legislation opposed by SEMA that would have expanded the definition of “abandoned motor vehicle” to include vehicles that were left unattended for more than six hours on private property without valid plates, title or permit was not considered in the 2010 legislative session. The bill also sought to include vehicles that are inoperable, partially dismantled, wrecked, junked or discarded. Under current law, a vehicle is not considered to be abandoned on private property until it is left unattended for more than seven days. Motor vehicles are defined as abandoned for the purpose of allowing state and local authorities to remove them from private property.

New Jersey New-Car Emissions Inspections: SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law by New Jersey Governor Chris Christie. The new law acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits



New York Tire Efficiency: SEMA helped defeat legislation that sought the development of a statewide program to mandate that replacement tires for passenger cars and light trucks be as energy efficient as tires sold as original equipment. While the measure contained a SEMA-drafted exemption for some hobbyist tires, including limited-production and off-road tires, SEMA has consistently recommended that the bill be rejected, since the replacement tire-efficiency program conflicts with federal law by regulating fuel economy, imposes substantial redesign costs on tire manufacturers, competes with federal consumer information requirements and essentially sets a 50-state standard.

New York Tire Dating: SEMA defeated legislation that would have prohibited the manufacture, distribution or sale of tires for passenger vehicles, multi-purpose passenger vehicles or light trucks unless a date of manufacture is clearly molded on both sides of the tire in a non-coded fashion. SEMA also defeated bills that sought to prohibit the sale of tires that are more than six years old.

New York Taxing “Gas Guzzlers”: SEMA beat back legislation to establish a progressive purchase or lease surcharge for some new motor vehicles based on state calculations of carbon emissions. Depending on the vehicle purchased, this surcharge could have required owners to pay up to $2,500 more for the vehicle. Separate legislation, also defeated, proposed to create a task force that would have recommended higher toll and registration fees for vehicles based on weight, emissions and fuel-efficiency ratings.

North Carolina Scrappage: SEMA turned back legislation that would have implemented a state vehicle scrappage program for passenger vehicles that are at least 14 years old. Under the program, participants would have received around $1,000 to $1,500 to scrap their cars and purchase current-year vehicles under 10,000 lbs. or one from the previous three model years. All trade-in vehicles would have been subject to scrappage, regardless of their historical value or collector interest.

Rhode Island Exhaust Noise Standard: Legislation to limit motorcycle exhaust noise to 92 decibels under the SAE J2825 idle test procedure failed to pass both houses of the Rhode Island Legislature. The bill originally included all motor vehicles under the same exhaust test standard and decibel limit. SEMA was successful in removing motor vehicles from the scope of the bill.

Utah Aftermarket Exhaust Systems: SEMA defeated a bill to ban the use of most aftermarket exhaust systems. Under the bill, all vehicles would have been required to be equipped with an exhaust system that is “installed by the original manufacturer of the vehicle and is not modified; or meets specifications equivalent to the muffler installed by the original manufacturer of the vehicle and is not modified.”

 

Vermont Inoperable Vehicles: SEMA-supported legislation to provide an exemption to automotive hobbyists from the restrictions on salvage yards was signed into law by Vermont Governor Jim Douglas. The new law increases the regulation of salvage yards and automobile graveyards in the state but includes a provision stipulating that hobbyists are not to be confused with the owners of automobile graveyards. The law defines an “automobile hobbyist” as a person not primarily engaged in the sale of vehicles and parts or dismantling junk vehicles. The definition of “automobile graveyard” does not include an area used by an automobile hobbyist for storage and restoration purposes, provided their activities comply with federal, state and municipal law.

Virginia Exhaust Noise: At SEMA’s urging, the legislature rejected a bill to ban the sale of “any aftermarket exhaust system component” that would cause the vehicle to produce “excessive or unusual noise.” SEMA recommended that Virginia adopt reasonable noise decibel limits for modified exhaust systems that can be verified through an easy-to-administer test standard.

Washington Scrappage: SEMA again helped turn back legislation that would have implemented a vehicle scrappage program for passenger vehicles more than 15 years old. Under the bill, qualifying vehicles would have had to be registered for a 24-month period and be in satisfactory operating condition. Replacement vehicles purchased under the plan would have been required to have an EPA highway gasoline mileage rating of at least 30 mpg. Participants in the program were to be granted a sales-tax exemption for the first $2,000 of tax paid on the purchase price. All trade-in vehicles would have been destroyed, regardless of their historical value or collector interest.

West Virginia Exhaust Noise: A SEMA-opposed bill to provide that the noise from a motor-vehicle exhaust system that has been deemed “disturbing or unreasonably loud” constitutes the crime of disturbing the peace is dead for the year. Under the bill, violators could have been fined up to $1,000 per occurrence, jailed for six months or both. Among other things, the bill did not supply law enforcement with an enforcement standard, allowing them to make subjective judgments on whether an exhaust system is “disturbing or unreasonably loud.”

Wisconsin Military Vehicles: SEMA-supported legislation to provide for the registration of former military vehicles was signed into law by Governor Jim Doyle. The new law defines a former military vehicle as one that was manufactured for use in any country’s military force, so long as it is maintained to accurately represent the military design and markings. The designation would include military vehicles designed both for off- and on-road use, including trailers. The law allows former military vehicles that are 25 years old and older to be registered and operated in a manner similar to antique vehicles (driven on special occasions and not as a daily driver).

FEDERAL UPDATE

Health Care: President Obama signed a sweeping health care reform mandate into law that is intended to extend insurance to about 32 million uninsured, increasing coverage to 95% of Americans (from the current 83%). The law takes effect in stages over a number of years. Of most interest to SEMA members are the Small Business Health Options Programs (SHOP exchanges) operated by the states, which will allow small businesses (50 employees) and individuals to pool together to purchase insurance that meets or exceeds new federal minimum standards. While the SEMA-supported exchanges should spur competition, they are not required to begin operating until 2014. This is a problem since most insurance companies are hiking their premiums now under the guise that they need the additional revenue to meet current and anticipated requirements under the new law. The law has been challenged in court over mandates that individuals purchase insurance and states bear increased Medicare/Medicaid costs. It will likely take years for the lawsuits to complete their path through the court system. If Republicans gain a majority in the November election, an opportunity could be provided for lawmakers to modify the current law to address flaws and reduce its scope. SEMA remains committed to pursuing additional reforms and is working with the National Federation of Independent Business and the Coalition for Affordable Healthcare toward that goal.

Small-Business Tax Credit: Companies that purchase health care insurance and have 25 or fewer employees may claim a tax credit as of January 1, 2010. The credit is intended to help small businesses with low- and moderate-income workers and is gradually phased out as average wages rise from $25,000 to $50,000.

Collector Car Appreciation Day: At SEMA’s request, U.S. Senators Jon Tester (D-MT) and Richard Burr (R-NC) co-sponsored Senate Resolution 513 designating July 9, 2010, as Collector Car Appreciation Day. To celebrate, enthusiasts across the country gathered to recognize the value in collecting and restoring historic and classic cars. Car clubs, enthusiast organizations and affiliated businesses hosted more than 100 events in more than 40 states to commemorate the day. Events ranged from car cruises to small-business open houses and product giveaways. SEMA will seek to have another resolution introduced for a second annual event in 2011.

Bank Loans and Bonus Depreciation: SEMA worked vigorously to help enact the Small Business Jobs and Credit Act, which was signed into law in September. The law contains $12 billion in tax incentives and creates a $30 billion resource to activate greater lending to small businesses by community banks. Besides pumping money into the banking system for small-business loans, the law extends the bonus depreciation program, allowing businesses to write-off 50% of the cost of newly purchased depreciable property. The 50% depreciation was also permitted in 2008 and 2009. The law also expands and extends the Section 179 program, allowing companies to write-off up to $500,000 in capital expenditures in tax years 2010 and 2011, double the previous limit.

IRS 1099 Forms: SEMA joined with a number of other organizations in an effort to have Congress repeal a requirement that businesses issue 1099 forms to all vendors from whom they buy more than $600 worth of goods or services in any year, beginning in 2012. The 1099 mandate is a funding measure included in the health care law. The provision has garnered widespread opposition on Capitol Hill. The Internal Revenue Service (IRS) is required to implement the law. In comments to the agency, SEMA urged the IRS to support the “repeal” message.

2001 Tax Breaks: A number of tax breaks from 2001 expire at the end of 2010 unless lawmakers specifically renew them. Lawmakers have put off a decision until after the November mid-term elections on whether to renew the tax breaks for all income brackets or whether to let them expire for upper-income taxpayers.

R&D Tax Credit: SEMA-supported legislation to extend the research and development tax credit has been deferred until after the mid-term elections. The R&D tax credit lapsed last December, marking the 11th time it had expired since being enacted into law in 1981. SEMA joined more than 100 associations and companies in the R&D Credit Coalition urging Congress to make the credit permanent. The credit offsets costs for companies investing time and money in new technologies and is applicable to both in-house and outside research. There is widespread support to make the credit permanent or, alternatively, to immediately renew it for another year or two. However, the issue has been tied to other, more controversial tax measures for which there have been no action to date.

Estate Tax: A one-year repeal of the federal estate tax began on January 1, 2010. As with the other tax cuts from 2001, unless Congress takes action, the estate tax will automatically revert to its old rate of 55% on anything above $1 million on January 1, 2011. SEMA supports legislation to permanently freeze the estate tax at a set rate (e.g., 35%) on amounts above a certain amount (e.g., $5 million/individual).

National Manufacturing Strategy: The U.S. House of Representatives approved the National Manufacturing Strategy Act, and SEMA urged the Senate to ratify the measure before it adjourns in December. Government policies would be refined to foster economic growth, increase employment and productivity and expand exports for the nation’s manufacturing sector. A public-private advisory board would make policy recommendations and establish action items on how to achieve short- and long-term goals. Topics for consideration would include competitiveness, stability, sustainability, trade balance and job creation in a global economy.

Tax Breaks When Hiring Unemployed: Under a SEMA-supported jobs bill enacted into law, private employers can claim tax credits if they hire someone in 2010 who has been out of work for at least 60 days. All businesses that hire an unemployed worker between February 5, 2010, and January 1, 2011, will be exempt from paying the 6.2% employer share of Social Security payroll taxes. The new worker must have been unemployed for at least 60 days and cannot replace another employee. If the business retains the newly hired worker for one year, the employer is then entitled to a one-time $1,000 tax credit for each such worker.

Credit Card Swipe Fees: SEMA and 54 other trade associations asked Congress to limit the amount credit card companies can charge merchants when processing payments. Congress addressed some but not all swipe fees when it enacted the new financial reform law. Under the old system, the merchant pays an average 2%–4% transaction fee every time a card is used. The fees are automatically divided between the merchant’s bank, the cardholder’s bank and the network that processes the transactions. The Federal Reserve now has the authority to ensure that debit card transaction fees are “reasonable and proportional to the actual cost incurred.” The Federal Reserve’s power is limited to the fees charged or received by the issuing institution (bank). Credit card fees charged by a payment network (such as MasterCard or Visa) will be generally free from regulation. Merchants are allowed to offer discounts for one form of payment over another (cash or check vs. debit or credit).

Tougher Auto Safety Rules: After being passed by two committees in the House and Senate, action has stalled on legislation to mandate new automaker safety standards and strengthen the NHTSA’s authority. The legislation would require the NHTSA to consider establishing new motor-vehicle safety standards for unintended accelerations, such as brake-override requirement, along with event data recorders (“black boxes”). SEMA joined with a number of other auto-related organizations in signing a coalition letter to House and Senate leaders urging bill modifications. Among other issues, the coalition requested that the legislation preempt state laws and not expand the scope of early-warning data that is available to the public beyond that information already required by the NHTSA in order to protect confidential business materials.

OHVs and Land Use: A number of wilderness bills were introduced and considered in Congress during 2010, but all are expected to die. A U.S. Department of the Interior document earlier this year indicated that the agency plans to designate 14 new or expanded national monuments covering 13 million acres in the western United States. Interior Secretary Ken Salazar provided subsequent assurances that the plans were preliminary and that the Obama administration would not bypass public input if the plans move forward. Unlike wilderness designations, motorized recreation is permitted within national monuments. However, closing off-highway vehicle (OHV) roads and trails is a frequent byproduct when land receives the national monument designation. Targeted lands include popular OHV areas, such as the San Rafael Swell and Cedar Mesa (Utah), Berryessa Snow Mountains and Bodie Hills (California) and parts of the Great Basin (Nevada). SEMA opposes unnecessarily restrictive land-use policies and has urged Congress, states and local communities to take an active role in participating in land-use decisions.

Ethanol Content in Gasoline: The EPA was expected to rule by the end of the year on whether to raise the ethanol content in gasoline from 10% (E10) to 15% (E15) for late-model cars. It could permit the use in other cars at a later date. SEMA opposes the initiative due to concerns that the additional content will harm automobiles of all ages, including special-interest collector and historic vehicles. A lack of conclusive information regarding E15’s effect on engines of different model years reinforces the need to defer or deny the increase. In addition to the potential harm of E15 on engine components, the EPA has no procedure in place to ensure that misfueling does not occur nor any plan for ensuring that regular gasoline continues to be available for older vehicles. SEMA is coordinating its actions with other organizations spanning a broad cross-section of industries, from boating and snowmobiles to grocers and convenience stores.

CO2 Emissions Standards: Just months after establishing Corporate Average Fuel Economy (CAFE) mileage and CO2 emissions standards for model year ’12–’16 cars and light trucks, the EPA, NHTSA and CARB are now drafting standards for model-year ’17–’25 vehicles. The EPA and NHTSA also plan to establish fuel economy and CO2 standards for medium- and heavy-duty trucks beginning in model-year ’14. Federal and state officials will work with the automakers with the goal of setting one national CO2 standard. The automakers participated in formulating the ’12–’16 rules, supported by SEMA, since it provided a national approach to regulating CO2 emissions rather than a patchwork of state rules. Federal regulators intend to issue a “game plan” for model-year ’17–’25 light-duty vehicles by October 2010 and adopt a final rule by mid-2012.

New Fuel Economy Car Labels: The EPA and NHTSA intend to expand the mileage rating information contained on new-car window labels. The regulators want to make this information more evident by including graphics, increasing type size and providing CO2 emissions information. In this fashion, buyers may focus more attention on these issues when considering a new-car purchase. SEMA supports efforts to make consumers aware about mileage to allow comparison-
shopping within specific vehicle classes. SEMA opposes a proposal to adopt an “A–F” letter grading system that doesn’t distinguish vehicle classes as too simplistic to provide value. When selecting a new car, consumers must also balance other window label information regarding the vehicle’s front and side crash-worthiness and rollover propensity. The rule would only apply to new cars and light-duty trucks in dealerships beginning in model-year ’12.

Tire Fuel Efficiency: The NHTSA moved closer to establishing a consumer information system to rate the fuel economy, safety and durability characteristics of most replacement tires. The agency issued a final rule to establish test procedures to be used by tire manufacturers in determining tire ratings. However, the NHTSA has not yet finalized a program on how the information will be conveyed to consumers at the point of sale and online. The program is required under a 2007 law that contains a SEMA provision exempting from the rating system those tires that have been produced or imported in annual units of less than 15,000 and that do not exceed 35,000 tires in total brand-
name production.

Federal Lighting Standard: The NHTSA postponed the effective date for the revised lighting standard, Federal Motor Vehicle Safety Standard No. 108, from December 2009 to December 2012. The agency wants the extra time to confirm that there were no substantive changes included when the agency published the reorganized and simplified standard in 2007. The revised standard was originally scheduled to take effect in 2008. The lighting standard has been amended many times since it was first adopted in 1967 in order to address technological advances and enhance safety. As a consequence, the previous regulation was unnecessarily complex and difficult to understand. Early compliance to the revised standard is permitted.

SEMA News - December 2010

NHRA Museum Celebrates Cars and Guitars

By Tony Thacker
Photography By Colby Martin and Matthew Pearson

	The Axes and Axles exhibit at the Wally Parks NHRA Motorsports Museum in Pomona, California, features cars and guitars from icons Jeff Beck, Eric Clapton, Michael Anthony, Eddie Van Halen, Jimmie Vaughan and Kenny Wayne Shepherd.
	Jeff Beck’s Guitar Garage includes his ’32 Highboy roadster.

Although primarily a motorsports museum that displays everything from early dry-lakes race cars to modern top fuel dragsters, the Wally Parks NHRA Motorsports Museum in Pomona, California, had long desired to host a stars’ cars and guitars exhibit. The necessary impetus came with the 60th anniversary of the Fender Telecaster guitar.

According to Cris Mirabella of Mirabella Guitars, “The Telecaster laid the groundwork for many of the modern custom designs of today. And even with all these modern concepts, the original design still remains a very valid and needed instrument.”

The interesting thing about the Tele’ is that its originator, Leo Fender, used the same concept of interchangeability as Henry Ford did with his cars. The body, neck and even the small parts were all designed to be interchangeable and easily replaced when broken. Also, the body was carved from a solid piece of wood so that no time was wasted forming the complicated hollow body of acoustic guitars.

Fender was also hip to the popular culture. Rather than using the staid wood finishes of previous years, by 1954 and the invention of the Stratocaster, he was painting his guitars with new DuPont automotive colors, such as candy apple red, Lake Placid blue and, of course, sparkle, which cars guys called metalflake.
Fender also embarked upon an aggressive advertising campaign that depicted people in everyday situations but with a Fender guitar strapped to their backs. The tag line was, “You won’t part with yours either.” The advertising firmly positioned Fender as the young, hip brand before branding was even a consideration.

Fender also found a burgeoning band of new musicians willing to play the company’s guitars—influential artists such as Jimi Hendrix, Eric Clapton, Jeff Beck, Keith Richards and many more who, in turn, influenced other budding musicians to adopt Fender as the guitar of choice for the new beat generation.

The guitars were easily customizable, and so players began decorating them with ever-wilder graphic treatments. The trend for custom guitars grew to such an extent that Fender established its own Custom Shop in 1985. Much like with cars at hot-rod shops, the Custom Shop builds prototypes and one-off guitars for artists, special events, charities, etc.

	The Axes and Axles exhibit will be on display at the Wally Parks NHRA Museum in Pomona, California, through June 2011.

Because one of the first things musicians often do when they get some money is buy a big car, there is a distinctive synergy between cars and guitars. Also, many of the early rock-and-roll songs were about cars, including “Rocket 88” and “Hot Rod Lincoln.”

It just all fits. And so it was that Fender’s Scott Buehl approached Pete Chapouris of SO-CAL Speed Shop wanting to build a custom Strat using SO-CAL’s distinctive red-and-white livery.

The result was a big hit, and the partnership blossomed when car guy Ritchie Fliegler, Fender’s senior vice president of market development at the time, stepped in. Discussions resulted in SO-CAL using Fender pick-guard material to make dash inserts. More importantly, Fender developed a production guitar styled in the famous SO-CAL colors. The relationship inspired SO-CAL President Pete Chapouris to develop a number of guitars to match SO-CAL cars.

Fast forward to 2010 and the 60th anniversary of the Telecaster. The idea was to use the synergy between cars and guitars to develop an interactive exhibit that would allow children to pick up a guitar and have a go! Guitar teachers would be on hand to show the kids how to hold a guitar and the basics of playing. During the 2010 L.A. County Fair, the museum welcomed hundreds of K-through-12 school children to the exhibit in an effort to introduce them to music and, through music, to cars.

Beyond the Fair, on January 28, 2011, the museum, working in conjunction with Henry Astor of the AMP Education program, will host two adult workshops. Hosted by WyoTech, the workshops—one each in the morning and afternoon—will feature professional car builders, such as Roy Brizio of Brizio Street Rods and Pete Chapouris of SO-CAL talking about their car-building experiences. There will also be some musicians on hand to talk about the other side of it. Practical hands-on demonstrations of guitar and car building will also be part of the program.

Meanwhile, the exhibit at the Wally Parks NHRA Motorsports Museum will run through June 2011. It is comprised of stars’ cars from Van Halen/Chickenfoot bass player Michael Anthony, Jeff Beck, Eric Clapton, Billy F. Gibbons, Kenny Wayne Shepherd and Jimmie Vaughan as well as Chip Foose and SO-CAL.

There are also numerous custom-built guitars from the above as well as from Eddie Van Halen, Brian Setzer and others. It’s certainly one of the best exhibits the museum has ever hosted, according to museum executives, and they expressed their gratitude to Fender and the many friends of the museum who are into cars and guitars.

Visit www.museum.nhra.com for more information about the Wally Parks NHRA Motorsports Museum and its exhibits and events.  

Former Van Halen bassist Michael Anthony showed up for the exhibit opening, signing autographs and bench racing. Blues guitarist Jimmie Vaughan was also in the house.		Artist and illustrator Thom Taylor (left) and automotive writer Pat Ganahl were on hand, as were other industry favorites, such as Alex Xydias, Pete Chapouris and Jimmy Shine.

SEMA News - December 2010

NHRA Museum Celebrates Cars and Guitars

By Tony Thacker
Photography By Colby Martin and Matthew Pearson

	The Axes and Axles exhibit at the Wally Parks NHRA Motorsports Museum in Pomona, California, features cars and guitars from icons Jeff Beck, Eric Clapton, Michael Anthony, Eddie Van Halen, Jimmie Vaughan and Kenny Wayne Shepherd.
	Jeff Beck’s Guitar Garage includes his ’32 Highboy roadster.

Although primarily a motorsports museum that displays everything from early dry-lakes race cars to modern top fuel dragsters, the Wally Parks NHRA Motorsports Museum in Pomona, California, had long desired to host a stars’ cars and guitars exhibit. The necessary impetus came with the 60th anniversary of the Fender Telecaster guitar.

According to Cris Mirabella of Mirabella Guitars, “The Telecaster laid the groundwork for many of the modern custom designs of today. And even with all these modern concepts, the original design still remains a very valid and needed instrument.”

The interesting thing about the Tele’ is that its originator, Leo Fender, used the same concept of interchangeability as Henry Ford did with his cars. The body, neck and even the small parts were all designed to be interchangeable and easily replaced when broken. Also, the body was carved from a solid piece of wood so that no time was wasted forming the complicated hollow body of acoustic guitars.

Fender was also hip to the popular culture. Rather than using the staid wood finishes of previous years, by 1954 and the invention of the Stratocaster, he was painting his guitars with new DuPont automotive colors, such as candy apple red, Lake Placid blue and, of course, sparkle, which cars guys called metalflake.
Fender also embarked upon an aggressive advertising campaign that depicted people in everyday situations but with a Fender guitar strapped to their backs. The tag line was, “You won’t part with yours either.” The advertising firmly positioned Fender as the young, hip brand before branding was even a consideration.

Fender also found a burgeoning band of new musicians willing to play the company’s guitars—influential artists such as Jimi Hendrix, Eric Clapton, Jeff Beck, Keith Richards and many more who, in turn, influenced other budding musicians to adopt Fender as the guitar of choice for the new beat generation.

The guitars were easily customizable, and so players began decorating them with ever-wilder graphic treatments. The trend for custom guitars grew to such an extent that Fender established its own Custom Shop in 1985. Much like with cars at hot-rod shops, the Custom Shop builds prototypes and one-off guitars for artists, special events, charities, etc.

	The Axes and Axles exhibit will be on display at the Wally Parks NHRA Museum in Pomona, California, through June 2011.

Because one of the first things musicians often do when they get some money is buy a big car, there is a distinctive synergy between cars and guitars. Also, many of the early rock-and-roll songs were about cars, including “Rocket 88” and “Hot Rod Lincoln.”

It just all fits. And so it was that Fender’s Scott Buehl approached Pete Chapouris of SO-CAL Speed Shop wanting to build a custom Strat using SO-CAL’s distinctive red-and-white livery.

The result was a big hit, and the partnership blossomed when car guy Ritchie Fliegler, Fender’s senior vice president of market development at the time, stepped in. Discussions resulted in SO-CAL using Fender pick-guard material to make dash inserts. More importantly, Fender developed a production guitar styled in the famous SO-CAL colors. The relationship inspired SO-CAL President Pete Chapouris to develop a number of guitars to match SO-CAL cars.

Fast forward to 2010 and the 60th anniversary of the Telecaster. The idea was to use the synergy between cars and guitars to develop an interactive exhibit that would allow children to pick up a guitar and have a go! Guitar teachers would be on hand to show the kids how to hold a guitar and the basics of playing. During the 2010 L.A. County Fair, the museum welcomed hundreds of K-through-12 school children to the exhibit in an effort to introduce them to music and, through music, to cars.

Beyond the Fair, on January 28, 2011, the museum, working in conjunction with Henry Astor of the AMP Education program, will host two adult workshops. Hosted by WyoTech, the workshops—one each in the morning and afternoon—will feature professional car builders, such as Roy Brizio of Brizio Street Rods and Pete Chapouris of SO-CAL talking about their car-building experiences. There will also be some musicians on hand to talk about the other side of it. Practical hands-on demonstrations of guitar and car building will also be part of the program.

Meanwhile, the exhibit at the Wally Parks NHRA Motorsports Museum will run through June 2011. It is comprised of stars’ cars from Van Halen/Chickenfoot bass player Michael Anthony, Jeff Beck, Eric Clapton, Billy F. Gibbons, Kenny Wayne Shepherd and Jimmie Vaughan as well as Chip Foose and SO-CAL.

There are also numerous custom-built guitars from the above as well as from Eddie Van Halen, Brian Setzer and others. It’s certainly one of the best exhibits the museum has ever hosted, according to museum executives, and they expressed their gratitude to Fender and the many friends of the museum who are into cars and guitars.

Visit www.museum.nhra.com for more information about the Wally Parks NHRA Motorsports Museum and its exhibits and events.  

Former Van Halen bassist Michael Anthony showed up for the exhibit opening, signing autographs and bench racing. Blues guitarist Jimmie Vaughan was also in the house.		Artist and illustrator Thom Taylor (left) and automotive writer Pat Ganahl were on hand, as were other industry favorites, such as Alex Xydias, Pete Chapouris and Jimmy Shine.

SEMA News - December 2010

NHRA Museum Celebrates Cars and Guitars

By Tony Thacker
Photography By Colby Martin and Matthew Pearson

	The Axes and Axles exhibit at the Wally Parks NHRA Motorsports Museum in Pomona, California, features cars and guitars from icons Jeff Beck, Eric Clapton, Michael Anthony, Eddie Van Halen, Jimmie Vaughan and Kenny Wayne Shepherd.
	Jeff Beck’s Guitar Garage includes his ’32 Highboy roadster.

Although primarily a motorsports museum that displays everything from early dry-lakes race cars to modern top fuel dragsters, the Wally Parks NHRA Motorsports Museum in Pomona, California, had long desired to host a stars’ cars and guitars exhibit. The necessary impetus came with the 60th anniversary of the Fender Telecaster guitar.

According to Cris Mirabella of Mirabella Guitars, “The Telecaster laid the groundwork for many of the modern custom designs of today. And even with all these modern concepts, the original design still remains a very valid and needed instrument.”

The interesting thing about the Tele’ is that its originator, Leo Fender, used the same concept of interchangeability as Henry Ford did with his cars. The body, neck and even the small parts were all designed to be interchangeable and easily replaced when broken. Also, the body was carved from a solid piece of wood so that no time was wasted forming the complicated hollow body of acoustic guitars.

Fender was also hip to the popular culture. Rather than using the staid wood finishes of previous years, by 1954 and the invention of the Stratocaster, he was painting his guitars with new DuPont automotive colors, such as candy apple red, Lake Placid blue and, of course, sparkle, which cars guys called metalflake.
Fender also embarked upon an aggressive advertising campaign that depicted people in everyday situations but with a Fender guitar strapped to their backs. The tag line was, “You won’t part with yours either.” The advertising firmly positioned Fender as the young, hip brand before branding was even a consideration.

Fender also found a burgeoning band of new musicians willing to play the company’s guitars—influential artists such as Jimi Hendrix, Eric Clapton, Jeff Beck, Keith Richards and many more who, in turn, influenced other budding musicians to adopt Fender as the guitar of choice for the new beat generation.

The guitars were easily customizable, and so players began decorating them with ever-wilder graphic treatments. The trend for custom guitars grew to such an extent that Fender established its own Custom Shop in 1985. Much like with cars at hot-rod shops, the Custom Shop builds prototypes and one-off guitars for artists, special events, charities, etc.

	The Axes and Axles exhibit will be on display at the Wally Parks NHRA Museum in Pomona, California, through June 2011.

Because one of the first things musicians often do when they get some money is buy a big car, there is a distinctive synergy between cars and guitars. Also, many of the early rock-and-roll songs were about cars, including “Rocket 88” and “Hot Rod Lincoln.”

It just all fits. And so it was that Fender’s Scott Buehl approached Pete Chapouris of SO-CAL Speed Shop wanting to build a custom Strat using SO-CAL’s distinctive red-and-white livery.

The result was a big hit, and the partnership blossomed when car guy Ritchie Fliegler, Fender’s senior vice president of market development at the time, stepped in. Discussions resulted in SO-CAL using Fender pick-guard material to make dash inserts. More importantly, Fender developed a production guitar styled in the famous SO-CAL colors. The relationship inspired SO-CAL President Pete Chapouris to develop a number of guitars to match SO-CAL cars.

Fast forward to 2010 and the 60th anniversary of the Telecaster. The idea was to use the synergy between cars and guitars to develop an interactive exhibit that would allow children to pick up a guitar and have a go! Guitar teachers would be on hand to show the kids how to hold a guitar and the basics of playing. During the 2010 L.A. County Fair, the museum welcomed hundreds of K-through-12 school children to the exhibit in an effort to introduce them to music and, through music, to cars.

Beyond the Fair, on January 28, 2011, the museum, working in conjunction with Henry Astor of the AMP Education program, will host two adult workshops. Hosted by WyoTech, the workshops—one each in the morning and afternoon—will feature professional car builders, such as Roy Brizio of Brizio Street Rods and Pete Chapouris of SO-CAL talking about their car-building experiences. There will also be some musicians on hand to talk about the other side of it. Practical hands-on demonstrations of guitar and car building will also be part of the program.

Meanwhile, the exhibit at the Wally Parks NHRA Motorsports Museum will run through June 2011. It is comprised of stars’ cars from Van Halen/Chickenfoot bass player Michael Anthony, Jeff Beck, Eric Clapton, Billy F. Gibbons, Kenny Wayne Shepherd and Jimmie Vaughan as well as Chip Foose and SO-CAL.

There are also numerous custom-built guitars from the above as well as from Eddie Van Halen, Brian Setzer and others. It’s certainly one of the best exhibits the museum has ever hosted, according to museum executives, and they expressed their gratitude to Fender and the many friends of the museum who are into cars and guitars.

Visit www.museum.nhra.com for more information about the Wally Parks NHRA Motorsports Museum and its exhibits and events.  

Former Van Halen bassist Michael Anthony showed up for the exhibit opening, signing autographs and bench racing. Blues guitarist Jimmie Vaughan was also in the house.		Artist and illustrator Thom Taylor (left) and automotive writer Pat Ganahl were on hand, as were other industry favorites, such as Alex Xydias, Pete Chapouris and Jimmy Shine.

SEMA News - December 2010

By the time this column makes it to readers, the winners of the first-ever SEMA Awards will have been announced. This exciting new SEMA Show award highlights the year’s most popular car, truck and 4x4-SUV, as selected by SEMA Show exhibitors. It is given to the most prolific vehicle models that SEMA manufacturers chose to trick-out, modify and display in their booths. 

Media anticipation of the winners was high months prior to the SEMA Show, as the industry looked to the annual event to see which vehicle models exhibitors were investing in and what cool, new products they had developed for those vehicles. With several vehicle models identified as contenders for the SEMA Award, the media provided their own commentary as to which vehicles they thought would win. Meanwhile, consumers made their own predictions by taking the SEMA
Challenge—an online contest that provided them with a unique opportunity to get involved in the action.

Below is some of the coverage highlighting what the media was saying about the SEMA Award before the SEMA Show. Check out these clips to get a sense of the excitement that existed before the SEMA Award winners were announced. Then be sure to look to your favorite automotive publications to see what they’re saying about the actual winners that were announced at the SEMA Show in November. Chances are, if you search the Internet (or visit SEMA’s website at www.sema.org), you’ll be able to learn what the hottest car, hottest truck and hottest 4x4-SUV are and get details about the products that SEMA Show exhibitors offer for these vehicles!

my.IS (Lexus IS Online Forum), September 10, 2010 “Will the Lexus IS Be the Hottest Car at the 2010 SEMA Show?” With 21 vehicles identified as contenders for the SEMA Award, enthusiasts everywhere were eager to support their favorite brands. The Lexis IS online forum my.IS stated: “We are proud to announce that the Lexus IS is among the 11 models nominated for the Hottest Car award,” and reported on how the editors were looking forward to seeing what was in store at the 2010 SEMA Show.

Specialty Automotive Magazine, September/October 2010 “Detroit’s sales gains, ‘vehicle appeal,’ and a new award for the ‘hottest vehicles.’” Editor Steve Relyea shared the news about the new award with his readers, noting that “we’ll bring news of the three winners of this award in our January/February issue.”

Road & Track Magazine, October 12, 2010 “Which do you think will be the hottest vehicles in Vegas?” Road & Track tapped into the notion that the SEMA Challenge gave enthusiasts a chance to get involved with the trade-only SEMA Show. The online contest gave those who accurately predicted the SEMA Award winners a chance to win a trip to next year’s SEMA Show. “SEMA is the world’s largest exhibition of automotive accessories built to make your car look cooler, go faster and sound louder,” reported Road & Track. “About the only thing you won’t find at SEMA is an invitation to the general public to come and join in the fun. The world’s biggest automotive block party is strictly an industry-only affair.”

Edmunds Inside Line, October 15, 2010 “$2,500 Trip to 2011 SEMA Show Up for Grabs in New Sweepstakes” Another publication that caught onto the idea that consumers taking the SEMA Challenge could win a trip to the SEMA Show was Edmunds Inside Line. Correspondent Anita Lienert went so far as to say that the VIP prize, which includes airfare and hotel accommodations for two, was “more appealing than any lottery.”

SEMA News - December 2010

A View of the Coming Year With SEMA’s Council Leaders

No one can predict the future, of course, but experience is a type of barometer. As we move into a new year, we called on the wisdom of some of SEMA’s most seasoned managers—who also happen to be in leadership positions with the association’s councils—to provide their opinions about what’s just down the road. We hope that their thoughts spark a few of your own.

Automotive Restoration Market Organization (ARMO)

The most significant trend we see is the increased interest by young people in our industry/hobby. Many of our youngest enthusiasts tend not to do pure restorations but more often choose to build in a restomod style, adding their own touches. The Automotive Restoration Market Organization (ARMO) has actively pursued this demographic through its “Take a Kid to a Car Show” Program. Cars that many in our industry thought would never be considered classics, such as the GM G-body platform, have been embraced by the younger generation. The companies that will do the best will be the first to spot the trends—the next popular car or style of restoration.

Most of the ARMO companies that I have spoken to are also seeing modest gains this year and expect to see growth throughout 2011. Although the industry has felt the effects of the down economy over the last 30 months, it has not been as bad as in many of the other industries that depend on disposable income. People in our hobby tend to be very passionate about their cars.

As our market continues to become more and more Internet-based on the retail level, we are seeing dramatic changes in marketing strategies. Traditional print media is still very important in our market, but retail companies are now looking to increase their online presence.

Our largest challenges for the next year will be in dealing with new legislation. However, unlike most businesses, our members have to deal with misguided state and local governments that in many ways try to outlaw old cars. Unfortunately, many lawmakers see old cars as a problem, not understanding how well these cars are maintained and how few miles most are driven.
—Alex Tainsh
Executive Vice President of Parts Unlimited Inc., Chairman-Elect of ARMO

Hot Rod Industry Alliance (HRIA)

The economy seems to have stabilized at this time, but it is still not good. That’s why diversity of products is important. If a manufacturer is making parts for only one segment, such as street rod or musclecar, the company could be driven out of business because that single segment is down in sales, even though things are not that bad overall. As of this writing, we’re hoping things stay flat, which would be better than down, but we are also hoping that things will pick up after
the elections.

With the major event promoters extending the age limits on vehicles, I think that the traditional street-rod market will slowly fade and musclecars will gradually increase in popularity. Even though later-model cars are just as expensive to build as traditional street rods, the later models are much more comfortable to drive. In addition, Baby Boomers want the cars they had in high school.

The challenges for HRIA companies include products and instruction manuals being copied and infringements on intellectual property rights. We even have current SEMA members that are doing this to other SEMA members. Several companies have voiced concern, and SEMA’s Washington, D.C., office has sent out information to all members on how to handle these situations.
—Dennis Overholser
Executive Vice President of Painless Performance Products, Chairman of HRIA

 
Truck and Off-Road Alliance (TORA)

We’re seeing a nice little bounce back in the production and retail sales of light trucks and SUVs, though not nearly at 2007 or 2008 levels. Most of our membership is cautiously optimistic. The greatest opportunities lie in TORA members banding together and in retailers sharing successes between each other to grow their collective businesses.

We’re seeing a lot of social networking on the marketing side. A lot of retailers are actively promoting their businesses with their own pages on Facebook, and they’re using Twitter messaging. Many of our dealers are also using e-mail and other electronic media in their marketing efforts.

One of the challenges for our members is that many of the automakers are producing their own versions of what were traditionally aftermarket products, so TORA manufacturing companies must continue to come up with creative and innovative new products to stay ahead of that curve. However, the most important thing is that more trucks are being sold in 2010 than were being sold in 2009. Since many of our members are dependent upon that new-vehicle business, they should gear up their inventories to separate themselves from the competition and garner those sales.
—George Lathouris
Senior Category Manager, Wheel & Tire Division, Keystone Automotive Operations, Chairman-Elect of TORA

Motorsports Parts Manufacturers Council (MPMC)

There is considerable buzz within the MPMC about off-shore knockoffs and private-label products. The distinction between being a manufacturer and being a distributor is becoming blurred in many instances and will likely force manufacturers to work harder to protect their intellectual property and shift away from being totally reliant upon distributors to sell their products.

The use of electronic media is definitely on the rise, while mobile marketing and event marketing seem to be a larger part of shrinking budgets in this down economy. The MPMC’s “Take a Friend to a Race” initiative draws on our responsibility as motorsports manufacturers to help put spectators in the seats and race cars in the pits, so even a hard day’s work interacting with our customers at the racetrack should still put smiles on our faces.

The biggest challenge is maintaining the confidence to invest in new products and new technologies when the general economic outlook is pretty bleak. MPMC-member companies are fortunate in that our end consumers—racers and performance enthusiasts—are passionate about motorsports and will sacrifice in other areas of their lives to satisfy their need for speed.

New products are the key. Manufacturers that are able to engineer and manufacture new, innovative products will thrive regardless of economic conditions. MPMC-member manufacturers know that we need to constantly engage the media to help tell our story and that events such as the Media Trade Conference offer a substantial return on investment.
—Kyle Fickler
Vice President of Sales and Marketing for Weld Racing LLC, Chairman of MPMC

Manufacturers’ Rep Council (MRC)

The expansion of electronic services and tools utilized by agencies is a trend that’s on a crazy curve of growth! With our hip computers (Blackberries, iPhones, etc.), we are in constant contact with our customers, vendors and each other. This electronic bridge continues to span farther and farther with new ways to communicate.

The economy has been a major factor, but it appears that customers have budgeted for this, allowing for some discretionary spending in their budgets. In my opinion, business is trending more upward for 2011. Customers are purchasing cars and seem to be in a mode of keeping them longer and accessorizing them to
their tastes.

Social media is a large part of the process for consumers to make a purchasing decisions and gain knowledge about products or categories. The challenge is to locate and market to so many factions in forums and groups. Electronic media is a challenge because of the time and money it eats up, and it concerns me that we might forget the brick-and-mortar stores where customers still walk in, albeit with much more knowledge about product and price, thanks to electronic media. They still need to be sold and provided a service in person. 

One of the more significant trends for the MRC is the need to provide more information and knowledge to our members, ensuring they can keep on the right side of the electronic media curve and not forget the foundation of what a manufacturer’s rep is here to do—grow sales and relationships!
—Wade Cobb
Principal at HAPCO, Chairman of MRC

 

 

Professional Restylers Organization (PRO)

Electronics will continue to be an area of consumer interest and potential growth. The accessory industry will find ways to heighten and expand the usefulness of vehicle electronics. Apps are now available to make it possible to use your mobile phone to activate your remote start, for example. In addition, auto dealers are showing an increased interest in accessory sales. OE programs are available, as are a number of “one-stop” solution providers to help dealers integrate accessory sales into their operations without reinventing the wheel.

The outcome of the midterm elections in 2010 may very well be the catalyst to drive consumer confidence and loosen up spending. The economy has not rebounded the way it was expected to, and some “experts” are saying to accept this climate as the “new normal.” I shudder to think we in this industry would accept that. There is enormous collective talent and creative genius in the accessory industry. It is populated primarily with people who don’t accept retreat, shrinking markets and mediocrity. Therefore, I think the biggest challenge we have is to fight the influence of those who want us to believe this is the “new normal.”

Younger customers present new challenges. Restylers need to keep getting more information and more training. The Technical Skills & Training Conference to be held at Wyotech in Blairstown, Pennsylvania, in March 2011 is an outstanding opportunity to network, get new business ideas and get much-needed training.
—Karl Stearns
Owner of KMS Marketing Solutions, Chairman of PRO

SEMA Businesswomen’s Network (SBN)

One of the most significant industry trends is the ever-increasing empowerment of consumers. Traditional media, Internet resources and social media have put a tremendous amount of information into our customers’ hands. No longer is a customer willing to “take our word for it.” They come to the retail environment armed with information and ready to make an informed decision.

Our world is smaller than we think. Going global is on the rise. The domestic market is fairly saturated with established WDs, jobbers and retailers, but many opportunities are available in overseas markets. Many countries look to the United States as the automotive trendsetter and want our products. Do some research, and seek out companies that have experienced overseas success with their branded products. Ask them for advice or contact a SEMA-member export management company for assistance. After all, “made in the USA” is still a strong and valued feature in overseas markets.

The biggest and strongest buying power in this country is women. Women spend billions on clothes, makeup, personal care products, home accessories and vehicles. They are interested in the styling and upfitting of their vehicles. Harley-Davidson recognized this trend and is actively going after the female market by building motorcycles and products exclusively for women. There is also an increasing number of women in the aftermarket automotive industry, which includes racing. Women are a part of every segment of the business, from hands-on technicians to CEOs. They are, literally and figuratively, changing the face of our industry.
—Compiled by Rose Kawasaki
Vice President of Exports International, Communications Subcommittee Chair for SBN

Street Performance Council (SPC)

Status quo for business is not enough these days. Businesses are evaluating and changing more rapidly than they have in the past. Companies that are open to change and can execute rapidly are seeing the most success now. Companies that are still trying to do business the way they did it 10 years ago will continue to struggle with this economy.

It is no surprise that the industry’s typical distribution model is changing rapidly due to the Internet. Marketing departments are facing their largest challenges in many years as they evolve to have a balanced plan for all types of advertising mediums. Aftermarket consumers are more diversified in their interests and their information gathering, which complicates a traditional print-only advertising plan. 

Having consistent sales, steady cash flow and productive execution of a solid business plan provide the greatest opportunities, as do understanding your product’s consumer and identifying your business’ core strengths. It is so important to know why your consumer chooses your product and to focus your energy on capturing more of those consumers. 
—Tracie Nuñez
Chief Executive Officer of Advanced Clutch Technology Inc., Chairman of SPC

Wheel & Tire Council (WTC)

We are seeing a trend toward stronger and lighter wheels for better performance on hybrid vehicles and also the study of rolling resistance on tires for improved fuel economy. There are indications that 2010 truck and automobile sales are up approximately 25%–30% from this time last year. The more vehicles that are on the road, the more opportunities to upgrade them with aftermarket parts.

WTC members will strike a marketing balance between traditional channels and electronic media. We want to reach our younger customers through their preferred electronic media, but we still want to reach our older customers through traditional channels without inducing e-mail fatigue with all of the forms of electronic announcements and advertisements.
The economy will certainly affect our market. As people hold on to their vehicles a little longer, the appeal to restyle with aftermarket upgrades is more likely to happen. New tires and wheels remain one of the best ways to enhance the appearance and performance of a vehicle.

Price has been one of the main factors in purchasing tires and wheels for some time. Now our segment of the market wants a quality product, too, so we are seeing an increased awareness and demand for tires and wheels that have been properly tested to industry standards and parts that will survive more than a few seasons. People are steering away from cheaper, copy-cat parts and are spending their money on something with better quality.
—Tim Dietz
Account Manager for Standards Testing Laboratories, Chairman of WTC

Young ExecutivesNetwork (YEN)

The members of the younger generation are becoming a driving force within their respective corporations. Younger people had to work twice as hard to earn their stripes in this industry 10 or 20 years ago. Today’s younger generation has the knowledge and the experience to use new technologies—the Internet, instant communication and social media—to their advantage. This allows the younger generation to move through the ranks of a company at incredible speeds.
Two other trends stand out. One is that teens are waiting longer to get their drivers’ licenses—sometimes until they are 18 or 19—and they are typically buying fuel-efficient cars. They can’t afford to fuel the performance cars that our industry loves to promote.

We see in our age group that there is a slowing trend in buying new vehicles. We see individuals who have disposable income choosing to hold on to their dollars instead of purchasing a new vehicle. This is certainly driven by the uncertainty of our economy, but it also may help the automotive specialty-equipment market as those older cars need new parts to stay roadworthy or new accessories to stay “cool.”

Choosing the right marketing mix will pose a challenge in 2011. Many companies either completely cut or significantly dropped their marketing budgets during the recession. Now, as the market is starting to look up, the companies that survived are beginning to slowly step out and start to spend more marketing dollars. But they have to make the right decisions about where to put those budgets. One wrong move could cause a significant back-step in a fragile company.
—Gregory Parker
Marketing and Creative Consultant with Martin & Company Advertising, Chairman of YEN  

SEMA News - December 2010

A View of the Coming Year With SEMA’s Council Leaders

No one can predict the future, of course, but experience is a type of barometer. As we move into a new year, we called on the wisdom of some of SEMA’s most seasoned managers—who also happen to be in leadership positions with the association’s councils—to provide their opinions about what’s just down the road. We hope that their thoughts spark a few of your own.

Automotive Restoration Market Organization (ARMO)

The most significant trend we see is the increased interest by young people in our industry/hobby. Many of our youngest enthusiasts tend not to do pure restorations but more often choose to build in a restomod style, adding their own touches. The Automotive Restoration Market Organization (ARMO) has actively pursued this demographic through its “Take a Kid to a Car Show” Program. Cars that many in our industry thought would never be considered classics, such as the GM G-body platform, have been embraced by the younger generation. The companies that will do the best will be the first to spot the trends—the next popular car or style of restoration.

Most of the ARMO companies that I have spoken to are also seeing modest gains this year and expect to see growth throughout 2011. Although the industry has felt the effects of the down economy over the last 30 months, it has not been as bad as in many of the other industries that depend on disposable income. People in our hobby tend to be very passionate about their cars.

As our market continues to become more and more Internet-based on the retail level, we are seeing dramatic changes in marketing strategies. Traditional print media is still very important in our market, but retail companies are now looking to increase their online presence.

Our largest challenges for the next year will be in dealing with new legislation. However, unlike most businesses, our members have to deal with misguided state and local governments that in many ways try to outlaw old cars. Unfortunately, many lawmakers see old cars as a problem, not understanding how well these cars are maintained and how few miles most are driven.
—Alex Tainsh
Executive Vice President of Parts Unlimited Inc., Chairman-Elect of ARMO

Hot Rod Industry Alliance (HRIA)

The economy seems to have stabilized at this time, but it is still not good. That’s why diversity of products is important. If a manufacturer is making parts for only one segment, such as street rod or musclecar, the company could be driven out of business because that single segment is down in sales, even though things are not that bad overall. As of this writing, we’re hoping things stay flat, which would be better than down, but we are also hoping that things will pick up after
the elections.

With the major event promoters extending the age limits on vehicles, I think that the traditional street-rod market will slowly fade and musclecars will gradually increase in popularity. Even though later-model cars are just as expensive to build as traditional street rods, the later models are much more comfortable to drive. In addition, Baby Boomers want the cars they had in high school.

The challenges for HRIA companies include products and instruction manuals being copied and infringements on intellectual property rights. We even have current SEMA members that are doing this to other SEMA members. Several companies have voiced concern, and SEMA’s Washington, D.C., office has sent out information to all members on how to handle these situations.
—Dennis Overholser
Executive Vice President of Painless Performance Products, Chairman of HRIA

 
Truck and Off-Road Alliance (TORA)

We’re seeing a nice little bounce back in the production and retail sales of light trucks and SUVs, though not nearly at 2007 or 2008 levels. Most of our membership is cautiously optimistic. The greatest opportunities lie in TORA members banding together and in retailers sharing successes between each other to grow their collective businesses.

We’re seeing a lot of social networking on the marketing side. A lot of retailers are actively promoting their businesses with their own pages on Facebook, and they’re using Twitter messaging. Many of our dealers are also using e-mail and other electronic media in their marketing efforts.

One of the challenges for our members is that many of the automakers are producing their own versions of what were traditionally aftermarket products, so TORA manufacturing companies must continue to come up with creative and innovative new products to stay ahead of that curve. However, the most important thing is that more trucks are being sold in 2010 than were being sold in 2009. Since many of our members are dependent upon that new-vehicle business, they should gear up their inventories to separate themselves from the competition and garner those sales.
—George Lathouris
Senior Category Manager, Wheel & Tire Division, Keystone Automotive Operations, Chairman-Elect of TORA

Motorsports Parts Manufacturers Council (MPMC)

There is considerable buzz within the MPMC about off-shore knockoffs and private-label products. The distinction between being a manufacturer and being a distributor is becoming blurred in many instances and will likely force manufacturers to work harder to protect their intellectual property and shift away from being totally reliant upon distributors to sell their products.

The use of electronic media is definitely on the rise, while mobile marketing and event marketing seem to be a larger part of shrinking budgets in this down economy. The MPMC’s “Take a Friend to a Race” initiative draws on our responsibility as motorsports manufacturers to help put spectators in the seats and race cars in the pits, so even a hard day’s work interacting with our customers at the racetrack should still put smiles on our faces.

The biggest challenge is maintaining the confidence to invest in new products and new technologies when the general economic outlook is pretty bleak. MPMC-member companies are fortunate in that our end consumers—racers and performance enthusiasts—are passionate about motorsports and will sacrifice in other areas of their lives to satisfy their need for speed.

New products are the key. Manufacturers that are able to engineer and manufacture new, innovative products will thrive regardless of economic conditions. MPMC-member manufacturers know that we need to constantly engage the media to help tell our story and that events such as the Media Trade Conference offer a substantial return on investment.
—Kyle Fickler
Vice President of Sales and Marketing for Weld Racing LLC, Chairman of MPMC

Manufacturers’ Rep Council (MRC)

The expansion of electronic services and tools utilized by agencies is a trend that’s on a crazy curve of growth! With our hip computers (Blackberries, iPhones, etc.), we are in constant contact with our customers, vendors and each other. This electronic bridge continues to span farther and farther with new ways to communicate.

The economy has been a major factor, but it appears that customers have budgeted for this, allowing for some discretionary spending in their budgets. In my opinion, business is trending more upward for 2011. Customers are purchasing cars and seem to be in a mode of keeping them longer and accessorizing them to
their tastes.

Social media is a large part of the process for consumers to make a purchasing decisions and gain knowledge about products or categories. The challenge is to locate and market to so many factions in forums and groups. Electronic media is a challenge because of the time and money it eats up, and it concerns me that we might forget the brick-and-mortar stores where customers still walk in, albeit with much more knowledge about product and price, thanks to electronic media. They still need to be sold and provided a service in person. 

One of the more significant trends for the MRC is the need to provide more information and knowledge to our members, ensuring they can keep on the right side of the electronic media curve and not forget the foundation of what a manufacturer’s rep is here to do—grow sales and relationships!
—Wade Cobb
Principal at HAPCO, Chairman of MRC

 

 

Professional Restylers Organization (PRO)

Electronics will continue to be an area of consumer interest and potential growth. The accessory industry will find ways to heighten and expand the usefulness of vehicle electronics. Apps are now available to make it possible to use your mobile phone to activate your remote start, for example. In addition, auto dealers are showing an increased interest in accessory sales. OE programs are available, as are a number of “one-stop” solution providers to help dealers integrate accessory sales into their operations without reinventing the wheel.

The outcome of the midterm elections in 2010 may very well be the catalyst to drive consumer confidence and loosen up spending. The economy has not rebounded the way it was expected to, and some “experts” are saying to accept this climate as the “new normal.” I shudder to think we in this industry would accept that. There is enormous collective talent and creative genius in the accessory industry. It is populated primarily with people who don’t accept retreat, shrinking markets and mediocrity. Therefore, I think the biggest challenge we have is to fight the influence of those who want us to believe this is the “new normal.”

Younger customers present new challenges. Restylers need to keep getting more information and more training. The Technical Skills & Training Conference to be held at Wyotech in Blairstown, Pennsylvania, in March 2011 is an outstanding opportunity to network, get new business ideas and get much-needed training.
—Karl Stearns
Owner of KMS Marketing Solutions, Chairman of PRO

SEMA Businesswomen’s Network (SBN)

One of the most significant industry trends is the ever-increasing empowerment of consumers. Traditional media, Internet resources and social media have put a tremendous amount of information into our customers’ hands. No longer is a customer willing to “take our word for it.” They come to the retail environment armed with information and ready to make an informed decision.

Our world is smaller than we think. Going global is on the rise. The domestic market is fairly saturated with established WDs, jobbers and retailers, but many opportunities are available in overseas markets. Many countries look to the United States as the automotive trendsetter and want our products. Do some research, and seek out companies that have experienced overseas success with their branded products. Ask them for advice or contact a SEMA-member export management company for assistance. After all, “made in the USA” is still a strong and valued feature in overseas markets.

The biggest and strongest buying power in this country is women. Women spend billions on clothes, makeup, personal care products, home accessories and vehicles. They are interested in the styling and upfitting of their vehicles. Harley-Davidson recognized this trend and is actively going after the female market by building motorcycles and products exclusively for women. There is also an increasing number of women in the aftermarket automotive industry, which includes racing. Women are a part of every segment of the business, from hands-on technicians to CEOs. They are, literally and figuratively, changing the face of our industry.
—Compiled by Rose Kawasaki
Vice President of Exports International, Communications Subcommittee Chair for SBN

Street Performance Council (SPC)

Status quo for business is not enough these days. Businesses are evaluating and changing more rapidly than they have in the past. Companies that are open to change and can execute rapidly are seeing the most success now. Companies that are still trying to do business the way they did it 10 years ago will continue to struggle with this economy.

It is no surprise that the industry’s typical distribution model is changing rapidly due to the Internet. Marketing departments are facing their largest challenges in many years as they evolve to have a balanced plan for all types of advertising mediums. Aftermarket consumers are more diversified in their interests and their information gathering, which complicates a traditional print-only advertising plan. 

Having consistent sales, steady cash flow and productive execution of a solid business plan provide the greatest opportunities, as do understanding your product’s consumer and identifying your business’ core strengths. It is so important to know why your consumer chooses your product and to focus your energy on capturing more of those consumers. 
—Tracie Nuñez
Chief Executive Officer of Advanced Clutch Technology Inc., Chairman of SPC

Wheel & Tire Council (WTC)

We are seeing a trend toward stronger and lighter wheels for better performance on hybrid vehicles and also the study of rolling resistance on tires for improved fuel economy. There are indications that 2010 truck and automobile sales are up approximately 25%–30% from this time last year. The more vehicles that are on the road, the more opportunities to upgrade them with aftermarket parts.

WTC members will strike a marketing balance between traditional channels and electronic media. We want to reach our younger customers through their preferred electronic media, but we still want to reach our older customers through traditional channels without inducing e-mail fatigue with all of the forms of electronic announcements and advertisements.
The economy will certainly affect our market. As people hold on to their vehicles a little longer, the appeal to restyle with aftermarket upgrades is more likely to happen. New tires and wheels remain one of the best ways to enhance the appearance and performance of a vehicle.

Price has been one of the main factors in purchasing tires and wheels for some time. Now our segment of the market wants a quality product, too, so we are seeing an increased awareness and demand for tires and wheels that have been properly tested to industry standards and parts that will survive more than a few seasons. People are steering away from cheaper, copy-cat parts and are spending their money on something with better quality.
—Tim Dietz
Account Manager for Standards Testing Laboratories, Chairman of WTC

Young ExecutivesNetwork (YEN)

The members of the younger generation are becoming a driving force within their respective corporations. Younger people had to work twice as hard to earn their stripes in this industry 10 or 20 years ago. Today’s younger generation has the knowledge and the experience to use new technologies—the Internet, instant communication and social media—to their advantage. This allows the younger generation to move through the ranks of a company at incredible speeds.
Two other trends stand out. One is that teens are waiting longer to get their drivers’ licenses—sometimes until they are 18 or 19—and they are typically buying fuel-efficient cars. They can’t afford to fuel the performance cars that our industry loves to promote.

We see in our age group that there is a slowing trend in buying new vehicles. We see individuals who have disposable income choosing to hold on to their dollars instead of purchasing a new vehicle. This is certainly driven by the uncertainty of our economy, but it also may help the automotive specialty-equipment market as those older cars need new parts to stay roadworthy or new accessories to stay “cool.”

Choosing the right marketing mix will pose a challenge in 2011. Many companies either completely cut or significantly dropped their marketing budgets during the recession. Now, as the market is starting to look up, the companies that survived are beginning to slowly step out and start to spend more marketing dollars. But they have to make the right decisions about where to put those budgets. One wrong move could cause a significant back-step in a fragile company.
—Gregory Parker
Marketing and Creative Consultant with Martin & Company Advertising, Chairman of YEN