Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.
’22 Porsche Taycan Cross Turismo
This Porsche Taycan Cross Turismo was caught testing near Weissach, Germany, and is scheduled for a production reveal in the coming 10 months.
Confirmed for production almost two years ago, the Cross Turismo will essentially be a wagon-bodied version of the Taycan four-door coupe.
The powertrain should be similar to that used in the concept shown at last year’s Geneva Motor Show, which put out around 600 hp from its dual-motor electric setup, good for a 0–60 sprint in 3.5 secs. Like its performance stats, the Taycan Cross Turismo’s driving range should be impressive; projected range for the concept was rated at 310 mi.
Ford F-150 Tremor
Here’s a first look at the rumored Tremor off-road package for the new Ford F-150, which will slot between the entry-level FX4 rugged package and range-topping Raptor.
Following in the footsteps of the Tremor package for the Super Duty and Ranger, the package for the F-150 has a suspension lift as its primary feature. Around back is a dual exhaust setup, which had not been seen on the all-new ’21 F-150 previously. A set of unique black wheels are wrapped in knobby all-terrain tires measuring 275/70R18.
Launch timing of the Tremor package for the F-150 is currently unclear, but it wouldn’t be surprising to see it for the ’21 or ’22 model years.
75th Anniversary ’21 Ram Power Wagon
Ram is celebrating the 75th anniversary of its iconic Power Wagon nameplate with a new special-edition model that was caught recently on the roads of Metro Detroit. The ’21 Ram 2500 Power Wagon 75th Anniversary Edition, shown in the unique Anvil exterior color here (the same color as on the new ’21 Ram 1500 TRX Launch Edition), features a unique jail-bar grille (a retro cue from the original Power Wagon), rock rails with side steps, blacked-out premium headlamps from the Ram 2500 Limited Black, 17-in. beadlock wheels, and an electronic transfer case.
The vehicle was slated to go on sale by the end of 2020.
Billed as an “all-out content creation bonanza,” the PRI
Road Tour took PRI personnel to more than 80 member
locations across the United States over a two-month
period. At each stop, PRI staff created varieties of digital
content that member companies could use to build
their online brand profiles.
Last November, the Performance Racing Industry (PRI) announced that its annual trade show in Indianapolis, Indiana, would not be taking place as scheduled in December. The announcement came after months of working closely with event staff and government officials to develop a plan for a safe and productive Show. Unfortunately, mounting uncertainty related to COVID-19 led the PRI staff to conclude that a productive in-person show was not feasible at the time.
Not long after, though, PRI announced the launch of a new cross-country campaign to gather and share news and updates from dozens of racing-related businesses. Dubbed the PRI Road Tour, the campaign aimed to provide an all-out content-creation bonanza that would take the PRI team directly to manufacturers, wholesalers, retailers, race teams, race tracks and more over a two-month span.
“Our goal is to always do what is best for the motorsports industry, and PRI will continue to lead with business solutions for an ever-changing future,” said PRI President Dr. Jamie Meyer.
Aimed at helping manufacturers promote their products and services, the PRI Road Tour began October 10, 2020, in Indianapolis, with more than 85 planned stops at motorsports businesses and facilities throughout the country, concluding on December 15. At each stop, the PRI team captured and shared video, photos and exclusive interviews highlighting the industry’s newest products, vehicles, races and developments.
After the Indy kickoff event, the Road Tour was scheduled to make its way through Chicago, Detroit and Cleveland, followed by cities in North Carolina, South Carolina, Georgia, Texas, Arizona and California.
Meyer summed it up: “If the industry can’t come to the PRI Trade Show in Indianapolis, then PRI is coming to the industry.”
The PRI Road Tour kicked off in Indianapolis in mid-
October, with planned stops to more than 80 companies
in nine states before concluding in California in mid-
December.
While the Tour was ongoing at the time this article was written, one early metric to measure the event’s success is social media. To date, the Tour has generated a significant amount of online buzz. Though mid-November, Road Tour content had already generated more than nine million impressions (on a 2.5 million target), with Facebook and Instagram the strongest performers. Instagram impressions were up more than 400%, with an average engagement-per-post rate up 60% from previously. In addition, PRI saw a 20% increase in Facebook fans over the same period.
SEMA News recently met with representatives of three companies that participated in the Road Tour to learn about their experiences, discuss the benefits that accrued from participating, learn how interacting with PRI staff helped them to better define their business goals, and to learn how taking part in the Road Tour could help companies in the racing and performance aftermarket stay better connected.
Carrie Ember is vice president of marketing for RE Suspension, a suspension support company and parts supplier with a focus on the racing sector and headquarters in Mooresville, North Carolina. Steve Garrett is creative director and Mike Buca the brand manager for Design Engineering, an Avon Lake, Minnesota-based manufacturer of heat solutions for multiple markets since 1985. Mike Goodwin is engine/drivetrain/calibration product manager for Ford Motor Company, based in Dearborn, Michigan. What follows has been edited for clarity and length.
SEMA News: We’re sure folks in the industry were disappointed to hear that the PRI Trade Show had been canceled for 2020. What was your reaction and the reaction within your company when you heard that PRI was launching a two-month road tour to visit some of its various members?
Carrie Ember: We were really surprised and not quite sure how that was going to work. I think we all had a bit of trouble visualizing what they were going to do, but we were all really impressed that they were doing something, because it would have been really easy for them to just chalk up this year as a loss and say “See you in 2021.” So the fact that they were going to try something different and something new—we thought it was great.
Mike Goodwin: I was pretty excited to have some type of event where we could discuss some of the cool stuff we have coming up, just get the information out there. Given the world we’re in right now, it was great to have another avenue to reach out and connect with people in the racing and performance markets.
SN: What was your company’s experience with the Road Tour? Did you have any particular goal or aim that you were hoping to achieve from it, and do you feel that you were successful in achieving that goal? Was PRI helpful to that end?
Mike Buca: All the people from PRI were great. They did a great job when they were here. To be honest, we weren’t exactly sure what was going to happen when PRI came, so we had a couple of different things prepared from a few new products that we were going to show at the PRI Trade Show.
Steve Garrett: When you hear about heat control and sound control, a lot of people don’t really know what’s involved in it, and one of the main goals was to help people understand what our capabilities are. We’ve brought in a lot of technology in the last couple of years that has really kind of pushed us to the forefront of this market, and the PRI crew did a really good job with helping us to get that across.
Design Engineering, based in Avon Lake, Ohio, has been
providing heat-control solutions for automotive, aviation,
powersports and marine markets since 1985. Courtesy
Andrew Link
CE: Our main goal was just a little bit of exposure for our company, since we’ve obviously had an up-and-down year due to COVID-19. It was a strong year to start out, then it kind of died, and it hit a brick wall when the state shut down, so we just wanted that little burst of exposure. PRI has been so supportive of everybody who exhibits at the Show, so when they called, we didn’t even hesitate.
And we had a great time! They were here for about five hours, taking a lot of still photography, walking around the shop and taking pictures of our different products and our different machinery. They also shot some video of our various staff here at work, and then they set up an hour-long interview with our president.
MG: We didn’t have anything concrete written on paper, but our goals going in were to get some new product info out there and to show off some of our newest products on video. The videos that [PRI] sent look great overall, and the edits were first class, so the goals of a well-produced professional video with professional editing and high production values were definitely met.
SN: Have you talked with anybody else within the industry or gotten any feedback from other folks who may have been involved with this? If so, what are you hearing from them?
CE: We’re good friends with the guys over at Port City [& Buzze Racing]. The PRI team visited there a couple of days after us, and they had the same experience—just a great time with the guys. I talked to some of the people over at JRI, who PRI also visited, and it’s been great feedback from everybody I’ve talked to. Everybody here in Mooresville has been really impressed.
MB: There are quite a few companies around our area, and those kinds of companies are the ones we talk to on a pretty regular basis. They all seemed to like the way it happened, the same way we did, and I think that it was a positive deal with our company overall.
MG: I’ve had limited conversations, but from what I’ve heard, it’s all been pretty positive.
SN: What benefits would other member companies gain from having participated in the Road Tour—particularly smaller companies that maybe have limited marketing and advertising resources? What kind of company would stand to benefit the most?
Headquartered in Mooresville, North Carolina, RE
Suspension provides suspension support and a full
range of products for the racing and performance
industry.
CE: The level of professionalism that the crew had—it’s like you can’t pay for that kind of exposure and that level of photography. Just to have a pro-quality video done at no cost to you, there’s absolutely no downside to it.
Having someone come in and see everything in your shop from a different angle than you see it every day and point out the things that they think are really great, it can turn your perception of your company a little bit and make you start seeing things in a different way and see some new angles from which you can market. For us, there was absolutely no downside.
SG: I think it’s just plain exposure. A lot of these companies on the Road Tour are smaller companies, and people don’t know exactly what they do, what they’re capable of. That was the exposure that
we got.
I think a lot of people can benefit from that, especially if it’s all compiled in one area where you’re not walking for miles around a show every day. And in case there isn’t a PRI Trade Show, you can sit and surf around the PRI website to get some good information on other companies that you might not necessarily know about.
MG: It’s going to give you a better reach, because all the videos can be leveraged through all your social-media channels. They can be shared; they can be e-mailed directly to your people; they can be put on social-media pages. It gives a kind of a different perspective for people who haven’t been to the PRI Trade Show. For us, we have seen some bumps in terms of traffic on our website, our Facebook sites and our e-commerce site.
SN: Looking forward into 2021 and beyond, would you like to see something like the Road Tour continue in the future, even after the actual trade show returns to Indianapolis?
The PRI Road Tour has generated substantial interest on
social media. User impressions on PRI’s Instagram feed
is up more than 400%, and PRI has increased its Facebook
fans by some 20% since the Tour’s inauguration. Courtesy
Andrew Link
CE: I think it’s a great supplement, but I don’t think that anything can ever replace the face-to-face contact you get at the PRI Show. I do think that it’s a great promotion to lead into the Show.
As people gear up to go to Indianapolis, some smaller businesses might not think to head up, because smaller companies like ours can get lost in the shuffle with all the big eye-catching booths there. But if people know that we’re going to be there, that might increase our traffic at the Show. It might make people stop and look up our booth number and think, “Hey, I want to stop and see those guys.”
MB: I think they could expand it even when the Show returns to Indy. Think about having something like a PRI Road Tour Stage at the PRI Trade Show, where you bring companies up on the stage and interview them live. We did something similar a few years ago with NHRA at the SEMA Show. We were interviewed, and we talked about our company and what we do as it’s related to NHRA. There was a pretty big group of people watching it, so it was a good experience for us.
MG: I think it’s a neat addition from a nontraditional “guerrilla marketing” standpoint. If you do it in conjunction with the in-person Show, with a Road Tour in the fall and then kind of leverage it with the Show in Indy in December, it could be a great additional tool to reach customers and create some buzz out there from your staff.
2020 was anything but a typical year, defined by the COVID-19 health crisis that disrupted almost every facet of life in the United States. It should be no surprise that the results of the November election were equally unique. As the political world tries to make sense of the mixed messages that voters sent to Washington, D.C., on Election Day, the balance of power in Congress was still uncertain as this issue of SEMA News went to press. Two U.S. Senate races in Georgia, which carried over into a January 5 runoff election, would determine which political party controlled the Senate. Let’s take a look at the results of the elections and how they will impact the issues on the legislative horizon in the 117th session of Congress (2021 and 2022).
Much like the 2016 election, political pundits predicted that the 2020 election would be disastrous for the Republican Party. Public polls consistently showed former Vice President Joe Biden with a commanding lead over President Donald Trump in almost every swing state, and there was an expectation that Biden would win the race handily and provide strong coattails that would expand the Democratic majority in the U.S. House of Representatives and help the party regain control of the U.S. Senate.
The results of the election ended up not being nearly as clear-cut, proving the polls wrong once again. Former Vice President Biden won by a margin of 306 electoral votes to 232, but Republicans picked up nine seats in the House of Representatives (there were still five races that were too close to call at press time), and Democrats picked up only one senate seat. Democrats retained the House, although the party will have its slimmest majority in the chamber since 1945.
As if the 2020 election cycle didn’t last long enough, the two U.S. Senate races in Georgia both went into runoffs, since no candidate received at least 50% of the vote in November. (Georgia state law requires a separate election between the top two candidates if no candidate receives majority support.) The balance of power in the U.S. Senate for the next two years depended on the outcomes of the runoffs.
Democrats needed to win both seats to take control of the Senate. A win by either incumbent Senator David Perdue (R-GA) or Senator Kelly Loeffler (R-GA) would enable Republicans to retain their majority. The Democratic Party’s goal of flipping the Senate and establishing a unified government for the next two years rests on the shoulders of candidates Jon Ossoff and Reverend Raphael Warnock.
Given what is at stake in this election and the respective policy positions of the candidates, SEMA endorsed Senators Perdue and Loeffler, whose pro-business voting records and support for the automotive aftermarket provided a clear contrast with their Democratic opponents.
As the country moves beyond the 2020 election,
President Biden will face the challenge of uniting a
divided electorate and passing bipartisan
legislation to help the economy recover from the
damage inflicted by COVID-19.
Courtesy Alex Gakos/Shutterstock.com
As we move beyond the 2020 election, President Biden will face the challenge of uniting a divided electorate as his administration works with Congress to pass bipartisan legislation to help the economy recover from the damage inflicted by COVID-19. Millions of Americans are unemployed as businesses face an uncertain future, which is inextricably tied to getting the pandemic under control.
Despite continued partisan differences over how to safely reopen the economy, Congress came together in the wake of the pandemic to pass legislation last March and April to stabilize the economy, providing more than $2.2 trillion in relief to individuals and companies, including small businesses, along with aid to fund testing, vaccine development, and to assist state and local governments. There is broad consensus that additional relief is still needed to shore up the economy and help struggling businesses. It is important that President Biden and congressional leadership collaborate on passing a recovery plan that helps distressed businesses in a fiscally responsible way.
Finding common ground between Republicans and Democrats is no small task, as the divide between the respective parties is as wide as it’s ever been. Regardless of whether the U.S. Senate is controlled by Republicans or Democrats, the chamber will retain its role as a moderating force. Additionally, the House will face a greater challenge in passing legislation, given the Democrats’ slim majority and the diversity of thought within its caucus on most issues. It is our hope that this will help the House restore the bipartisan policymaking process that was once the norm.
There are many factors that will impact the issues Congress chooses to prioritize over the next two years. A comprehensive infrastructure bill is expected to be a top priority for both Republican and Democratic leadership. With many roads and bridges in disrepair, an infrastructure bill is ripe for bipartisan consensus. It is also an issue of critical importance to automotive enthusiasts and SEMA members alike.
SEMA will also be working to influence the Biden administration’s policies on trade and tariffs, which are paid by American businesses and passed along to U.S. consumers. For example, it is a top priority for the industry that the new administration removes the threat of automotive tariffs, which were proposed but never implemented by the Trump administration.
For more information on the 117th Congress and how SEMA Government Affairs is protecting the industry on Capitol Hill, please contact Director of Congressional Affairs Eric Snyder via email at erics@sema.org.
Permatex appointed Dan Clarke (left) to the position of director of marketing for the engine repair division. Clarke will be responsible for driving the development and execution of all marketing activities for the engine repair business to meet strategic objectives and deliver financial goals. The announcement was made by Lee Burtelson, vice president/general manager of engine repair. With Permatex since 2015, Clarke recently served as the company’s sales director for the U.S. traditional channel. Prior to Permatex, Clarke was a business unit manager at Coburn Technologies Inc. and spent 11 years with HID Global Corp. in various management and sales positions.
Premium Guard Inc. (PGI) purchased Tenneco’s global aftermarket filters business in Mexico. The announcement was made by Anan Bishara, CEO and president of PGI, who noted that the acquisition, which was finalized on October 31, includes Tenneco’s manufacturing facility in Tultitlan, Mexico; the Interfil and Engine Clean brands; and filter inventories. PGI plans significant investment at the Tultitlan facility to fulfill customer requirements and volume.
Eleven Engineering Inc. announced that Matt Michielin joined the company as marketing team leader. His responsibilities at Eleven Engineering include maintaining the SKAAstore and the creation of the new SKAAstore website, customer service, office operations, database management and social-media and communications assistance. Prior to joining Eleven Engineering, Michielin worked with Clean Harbors Environmental Services, the government of Alberta, and Special Olympics Alberta.
NGK Spark Plugs (USA) Inc. announced two promotions within its executive team. Brian Norko was promoted to senior vice president of commercial business. Prior to his promotion, Norko served as vice president of aftermarket for three years. Lesley Skinner was promoted to vice president for culture, communication and people. In her newly created role, Skinner will be responsible for driving the company culture, corporate communications and administration strategies.
Pertronix Performance Brands announced that industry veteran Jenna Jefferies joined the company as national account manager. She previously spent 18 years at K&N as national account manager. Jefferies will be responsible for growing national account revenue and for providing new product feedback to the Pertronix engineering team. She comes from a motorsports family and is passionate about desert off-road racing. The SEMA Businesswomen’s Network (SBN) recently named her as its SheIsSEMA Woman of the Year.
Brembo acquired SBS Friction A/S—a Danish company that develops and manufactures eco-friendly sintered and organic-material brake pads for motorbikes. Brembo will integrate the company’s brake pads into its current product range, strengthening its position in the motorbike sector. The agreement is expected to be finalized in the first quarter of 2021.
Meyer Distributing Inc. announced a new location in Bridgeport, West Virginia. The cross-dock will have a direct, next-day feed from Meyer’s distribution hub in Jasper, Indiana, which houses one of the largest inventories of automotive accessories, exhaust and RV parts in the region.
Caliber announced that current President and Chief Operating Officer Mark Sanders succeeded longtime CEO Steve Grimshaw, effective January 1, 2021. Grimshaw moved to full-time executive chairman at that time. Sanders has spent his entire career in the automotive industry and joined Caliber Collision in 1997 as it expanded its operations into Texas. As president and COO, Sanders led the growth strategy, which expanded Caliber Collision’s footprint throughout the United States while also positioning Caliber for the future through the strategic acquisition of other lines of business. During Grimshaw’s tenure, the organization grew from 68 locations in two states to more than 1,200 locations in 34 states across the United States.
Dynamat Inc. announced new executive leadership. Dynamat founder Scott Whitaker retired from the company but is assisting with the transition as a consultant. Michael Good, an executive with more than 25 years of experience in sales, marketing, operations and process management, was named president. Whitaker will remain engaged with Dynamat as a consultant through February 2021.
Red Line Synthetic Oil announced a new partnership with quick lube chain Oil Changers. Through this partnership, Red Line will supply the company’s high-performance oil for use at Oil Changers locations. The company’s high-performance engine oil will be used to service all types of vehicles.
Pertronix Performance Brands announced that it has acquired Aeromotive Inc. and Waterman Racing Components. Over the past 26 years, Aeromotive designed and manufactured fuel systems and components for the automotive aftermarket and OEM manufacturers. Aeromotive will continue to operate out of its manufacturing and development facility in Lenexa, Kansas, while Waterman Racing Components will continue to operate out of its locations in Concord, North Carolina, and Brownsburg, Indiana. Aeromotive’s leadership team will continue to manage the business.
Photography By Ray Brock, Petersen Publishing Company Archive
When the California Highway Patrol (CHP) needed to replenish its fleet of patrol cars in late 1958, it asked car manufacturers to submit sample versions of their ’59 models for evaluation. At the time, the CHP had some pretty specific requirements: The car had to be a two-door sedan with a minimum wheelbase of 122 in. and weigh at least 3,800 lbs.; be equipped with heavy-duty suspension, heavy-duty brakes, 15-in. wheels, six-ply nylon tires, and an automatic transmission with at least three forward speeds; and be powered by an OHV V8 of at least 380 ci with at least 9.75:1 compression, hydraulic lifters, a single carburetor (though multiple carburetors were allowed) and dual exhaust.
Those prerequisites ruled out some of the most popular cars of the time, including models from Ford, Chevrolet and Plymouth. Of those makes that did qualify, just three—Dodge, Mercury and Pontiac—submitted cars for the CHP to test in November 1958.
Hot Rod Technical Editor Ray Brock tagged along with the CHP officers tasked with evaluating the potential cruisers, and he described them in the magazine’s February 1959 story, “How Hot are the Police Specials?”
The Dodge Coronet “was the lightest of the three, weighing just 4,060 lbs.” It was powered by a 383ci, 345hp D-500 V8, and its TorqueFlite transmission sent power to a 3.36-geared axle. The Mercury Monterey was the heaviest at 4,560 lbs. “but also had the largest engine, a 430-incher rated at 345 hp.” Its Merc-O-Matic transmission was paired with a 3.22 axle ratio. The Pontiac, weighing 4,390 lbs., “used a Tempest 420-A engine with 389ci and rated at 330 hp” and a “dual-range Hydra-Matic” to send power to the 3.08 rearend. The Dodge and Merc rolled on Goodyear Bluestreak tires, while the Pontiac was fitted with Firestone Super Sports.
The four-day test began with a drive from the state capitol in Sacramento up to Lake Tahoe and then to the small town of Bridgeport on the eastern edge of the state—a route that subjected the cars to the “all types of roads imaginable” that can be found in California, “from freeways to twisting mountain roads to city streets to rutted dirt roads and sometimes across wild stretches where there are no roads,” Brock wrote.
Day Two found the fleet doing acceleration tests on an Air Force runway in Palmdale, where each car had to run at least 110 mph. The cars “qualified easily,” Brock said, with the Dodge hitting a top speed of 122.023, the Mercury 121.84, and the Pontiac 117.34 mph. More acceleration tests were done on the third day, this time at Riverside Raceway. In the standing-start quarter-mile, the Dodge was fastest at 86.89 mph, followed by the Mercury at 83.15 and the Pontiac at 81.98. The Dodge was also fastest in the standing-start mile, running 117.67 to the Pontiac’s 115.28 and the Mercury’s 112.96.
The test drivers, all veteran officers from CHP headquarters, also used Riverside to test the cars’ handling. “A couple of the test drivers had former racing experience,” Brock noted, “so they showed no mercy as they whipped the cars through their paces.” At the end of the day, the drivers “judged the cars to be of equal ability in handling and roadability.”
The final day was devoted to testing the cars’ brakes, “since high speed chases are quite frequent and the drivers must often use the brakes severely,” Brock said. The brake systems were evaluated for fade over repeated panic stops, and the cars were also judged to see how much they deviated from a straight line while under heavy braking. Here, the Mercury fared best, followed by the Dodge and the Pontiac. “All were judged to have acceptable braking ability for patrol cars,” Brock said.
Since all three cars were “judged acceptable in all phases of the tests,” in the end, the CHP’s choice came down to money. “A Dodge dealer had the lowest price so received the contract,” Brock wrote, without mentioning what that price was (darn it). This initial purchase would be for 331 cars—about half the number the CHP expected to buy in 1959.
“A lot of prestige goes along with the contract for the cars,” Brock said, “since the CHP consistently wins the fleet safety award given by the International Association of the Police Chiefs each year. We predict the bidding will be furious for the second group of ’59 cars because of the obvious advertising value of being selected by such a particular
organization.”
One silver lining in the COVID-19 pandemic comes by compelling all of us to innovate, adapt and find new paths to success. In some cases, we can imagine that these new ideas may evolve into practices and tactics for the long haul. Case in point: The PRI Road Tour.
In the absence of the annual Performance Racing Industry (PRI) Trade Show this year, thoughts turned to how PRI could still provide a way for the motorsports industry to share ideas and help motorsports industry manufacturers and service providers remain top of mind in the worldwide racing scene. Ultimately, the PRI team launched the PRI Road Tour—an ambitious cross-country campaign to gather and share news and updates from dozens of racing-related businesses. The campaign was an all-out content-creating project that took the PRI team—and a host of other media outlets—directly to manufacturers, wholesalers, retailers, race teams and race tracks over a two-month span, finally ending up in California after making stops in nine states in 70 days.
The PRI Road Tour is remarkable for its goal of helping elevate an entire industry, its collaboration with outside media, and its innovative use of social media. The racing world is rich in specialized media outlets, large and small, that reach passionate audiences. By creating content opportunities for freelance writers, TV shows and racing-scene influencers, PRI is investing to create activity that benefits the entire motorsports industry.
Because the PRI Road Tour leverages outside media and a basket of social-media platforms, it has generated an immediate buzz that is reaching a global audience. Content loaded into Instagram, LinkedIn, TikTok, YouTube, Facebook and Twitter has gone live within hours and is being viewed by enthusiasts all over the world, providing a burst of energy to the businesses in question.
After the first 30 days, the PRI Road Tour had logged 9,035,610 total impressions and a unique reach of 6,327,255. At press time, Instagram and Facebook have been the strongest performers, and LinkedIn and YouTube have begun to put up excellent results. One example was a 7.3 Godzilla engine video, which logged 42,000 views on YouTube in three weeks.
The PRI Road Tour is still ongoing at the time of this writing, but if social-media analytics remain on the same trajectory, it’s possible that the initiative will have created as many impressions as a Super Bowl ad by the time it concludes.
Also notable is that the PRI Road Tour has been undertaken not to generate revenue but to assist the industry—and a way of life—by returning proceeds from the PRI Trade Show and other operations back to the industry. This kind of initiative is an example of one way that PRI will accomplish its mission as an organization dedicated to helping the racing community succeed and prosper.
Significantly, about 50 of the companies visited are also SEMA-member companies, and many more make products not just for racing but also product lines that reach into other aftermarket segments aimed at a broad range of performance enthusiasts. We think the success of the PRI Road Tour could help SEMA shape future outreach as it serves the broader aftermarket.
Perhaps most significantly, the PRI Road Tour is another clear demonstration of the growing potential social-media platforms offer moving forward—and proof of another way an organization can invest time and energy to lift an entire industry via new online communications tools.
GM’s all-electric vehicle assembly facility is the first automotive plant
to install dedicated 5G fixed mobile network technology.
GM EV Plant to Feature 5G Technology
General Motors announced that Factory Zero, the company’s all-electric vehicle assembly plant at the Detroit-Hamtramck Assembly Center, is the first automotive plant in the United States to install dedicated 5G fixed mobile network technology. Verizon’s 5G ultra-wideband service is operating now at Factory Zero, with its exponential increases in both bandwidth and speed supporting the ongoing transformation of the plant as it prepares to begin producing EVs in 2021.
Factory Zero is being completely retooled with a $2.2 billion investment, the largest ever for a GM manufacturing facility. Once fully operational, the plant will create more than 2,200 U.S. manufacturing jobs. Both the upcoming GMC Hummer EV and the Cruise Origin will be built at Factory Zero on GM’s Ultium battery platform. Ultium is flexible enough for a wide range of EVs—cars, trucks and more—and is the heart of GM’s future EV lineup.
Key benefits of 5G in a manufacturing plant include reliability, speed and sheer scale. 5G’s massive bandwidth offers scalability to manage thousands of devices across Factory Zero’s more than four million square feet of space, with ample capacity to support emerging technologies.
Many of SEMA360’s SEMA Education seminars are now available for
viewing online. Visit the SEMA YouTube channel for more details.
SEMA360 Education Seminars Now Available on Demand
Thousands of participants took part in the SEMA360 Education program last November, where they heard from leading experts and innovators and left motivated and educated on how to work better and smarter on various topics relating to the automotive specialty-equipment industry.
SEMA Education programs encompass all of the association’s educational efforts. For the first time ever at SEMA360, the education seminars took place virtually in absence of the in-person SEMA Show in Las Vegas, with each session designed to help businesses succeed and automotive aftermarket professionals advance their business goals.
For those who might have missed any of the SEMA Education seminars, many of them are now available to all industry members on the SEMA360 Education Playlist at the SEMA Show YouTube channel. Viewers will be able to see the actual presentations that took place during the exclusive SEMA360 event, including live questions and answers. The learning tracks and seminars available include such topics as advanced vehicle technologies; business management; hot-rod and off-road builders panels; vehicle accessorization demonstrations; Brew Talks; and interviews with industry leaders, legends and influencers on The Stage.
For more information, visit the SEMA360 YouTube page.
The Jeep Wrangler Rubicon 392, slated to go on sale in Q1 2021, will
offer a V8 option for Jeep’s iconic bobtail for the first time in 40
years.
’21 Jeep Wrangler 392 to Feature 470HP V8
For the first time since 1981, Jeep will bring its flagship bobtail to market with a V8 option in 2021. The 6.4L V8, rated at 470 hp and 470 lb.-ft. of torque, will be mated to the TorqueFlite eight-speed automatic transmission and Selec-Trac fulltime active transfer case. The powertrain is said to power the Wrangler Rubicon 392 from 0–60 mph in 4.5 sec. and produce elapsed times in the quarter-mile of 13.0 sec., and it comes with a factory-backed warranty.
Away from the pavement, the trail-rated Wrangler Rubicon 392’s potent powertrain meshes with heavy-duty wide-track Dana 44 axles, a 3.73 final drive ratio, a transmission torque converter lockup control, a 2-in. lift, and standard 33-in. tires on 17-in. beadlock-capable wheels. The result is said to be the most capable Jeep Wrangler ever, with 10.3 in. of ground clearance; improved suspension articulation and maneuverability; approach, breakover and departure angles of 44.5, 22.6 and 37.5 degrees respectively; and the ability to traverse up to 32.5 in. of water.
The ’21 Jeep Wrangler Rubicon 392 goes on sale in the first quarter of 2021 and will include 11 premium feature packages for consumers to choose from.
As automotive specialty-equipment businesses draw up their business plans for 2021, many undoubtedly face some degree of uncertainty. Will the pandemic fade into the rearview mirror? What was the economic impact on the industry? Will this year’s gains extend into 2021? To help answer those questions and more, SEMA Market Research has released an extensive and timely Fall 2020 “State of the Industry Report.”
“Over the past several months, we’ve done a lot of research into consumers and how they’ve handled the pandemic,” said SEMA Research Manager Kyle Cheng, the report’s lead analyst. “But a real question a lot of our members are asking is how the industry is doing. As we enter 2021, they’re looking for benchmarks and forecasts useful to their business planning
“We’ve heard anecdotally that many companies are doing better than last year. When we dive into the data, something that pops out is that there are definitely some companies doing well and others not as well. It’s kind of mixed, but across the board, things are not as bad as they looked early in the pandemic.”
E-commerce Sales As A Share Of All U.S. Retail Sales
The report is based on a statistical survey of aftermarket manufacturers, distributors and retailers/installers who were asked a series of questions surrounding their overall economic health in 2020 as well as their projections for 2021. Government data encompassing broader American e-commerce and business trends were also included for comparison with industry benchmarks. While the full report offers extensive details for planning, its five basic takeaways can be summarized as follows.
The Industry Is Already Rebounding
Like many sectors of the American economy, the automotive specialty-equipment industry experienced appreciable sales disruptions due to COVID-19.
Company Sales Performance During COVID-19 Outbreak
Nevertheless, the industry is showing overall resilience, with data indicating that a rebound is already taking place. Despite Q2 sales declines, most aftermarket companies met or exceeded both the first- and third-quarter goals they set at the beginning of 2020.
“Obviously, COVID-19 had an impact, particularly around March, April and May when the country wasn’t sure where things were going and everything locked down,” Cheng explained. “However, more than 90% of the aftermarket companies we surveyed reported that they were now seeing either business as usual or experiencing only short-term impacts from the pandemic. In fact, 55% of companies expect their 2020 sales to finish higher or at least the same as in 2019, and no companies said they have any plans of closing. When we look at government data, retail spending at motor vehicle part dealers is now at its highest point ever. Those are all positive indicators we expect to continue.”
In-Store Purchasing Remains Healthy
Nationwide growth in online shopping has received a lot of media attention throughout the pandemic, but it appears to be overly hyped. The data shows that specialty-equipment retail transactions remain mostly in-person affairs, and with many of the industry’s retailers designated as “essential businesses” during the shutdowns, they saw only modest increases in online purchasing.
Share Of Specialty Equipment Industry Sales By Channel
“Despite shifting consumer habits during the lockdowns, our industry and the retail sector across the country as a whole continues to be driven by in-store and physical-channel sales,” Cheng said. “Overall, e-commerce makes up only a small share of retail in the United States, and it’s projected to remain that way for the future. Companies in our industry report that 57% of sales this year still came from in-store and physical channels, only slightly down from the previous year.
“The bottom line for our industry is that people still want to touch and see our products. You can’t experience online what you can in a store while getting someone’s expertise.”
Staffing Is Holding Mostly Stable
While other American industries have suffered marked layoffs, most automotive aftermarket businesses have managed to avoid widespread staffing disruptions. In fact, the majority of companies surveyed either maintained or increased staff over the last year, and most plan on hiring over the next 12 months. Additionally, despite taking the brunt of the recent economic downturn, retailers/installers have held notably steady with their workforces.
Jobs Planning To Hire Within The Next 12 Months
This makes sense, considering that large manufacturing and distribution facilities faced a number of initial safety hurdles for maintaining capacity in the early days of the pandemic, resulting in temporary closures or worker furloughs for some. Being smaller operations and almost universally recognized as essential businesses, retail and installation operations had a slight advantage in that regard.
“What we found was that the larger a manufacturer in terms of annual sales, the more likely it was to change its staffing,” Cheng said. “But even with that, almost 90% of manufacturers and most of the industry plan on bringing back the staff they laid off.”
How Staffing Will Look At The End Of 2020
Aftermarket Businesses Are Feeling Bullish
As a whole, the industry shares a positive outlook for the coming year. Most businesses surveyed anticipate strong sales growth and a quick rebound for the entire aftermarket. In fact, nearly 70% think that the industry will bounce back to pre-pandemic levels by mid-2021, with 90% seeing recovery by the end of 2021.
“This wasn’t a recession about economics, lower demand or a contraction in desire for what we do,” noted SEMA Director of Market Research Gavin Knapp. “This was really about structure and whether or not you were able to have people in your facility to make or sell parts. So long as people are allowed to have their employees make their parts and sell them in stores, our industry is doing well.”
The Aftermarket Is Poised for 2021 Growth
Is the industry being overly optimistic? Not when you look at the economic numbers found in the “State of the Industry Report.” They show every indication that the industry is primed to resume the growth that was interrupted in late 2020.
When The Industry Will Return To Pre-Pandemic Levels
“Overall, our industry appears in good shape,” Cheng said. “Once the country reopens and effective vaccines are distributed, it appears that our industry will be able to readily bounce back and continue to grow.”
“That’s part of the reason companies are so optimistic,” Knapp added. “Once things open up and people are allowed to get back some normalcy, they’re going to want to go places. They didn’t stop working on their vehicles during this time, and they’re going to want to enjoy them again.”
Get All the Latest Research
For your free download of the 65-page Fall 2020 “State of the Industry Report,” visit www.sema.org/market-research. While there, you can also download SEMA’s “State of the American Consumer” snapshot report, which offers insights into current consumer sentiment.
SEMA also has a report about the quickly changing economic metrics. Check out the monthly “SEMA Industry Indicators Report” at the same link for regular updates on economic trends affecting the aftermarket.
According to business and trade analysts, COVID-19 dealt a series of
supply-chain and related market disruptions to the global tire industry
in 2020, with the repercussions likely to be felt for several years to
come.
Wheels and tires are more than essential vehicle components—they’re performance and style enhancers. Whether for street, track or trail, they’re among the easiest and most purposeful modifications an automotive enthusiast can undertake. With the right wheel-and-tire combo able to make all the difference for handling, confidence and ride enjoyment, it’s no wonder they have remained stalwart sellers for the aftermarket.
In fact, performance and special-purpose tires represent the largest sales category within the specialty-equipment tire market, according to the recently released “2020 SEMA Market Report.” From 2016 to 2019, the category’s market size grew from $2.22 billion to $2.54 billion. Of the application types in that total, midrange cars and pickups each took market shares of 19%, followed closely by sports cars (16%), SUVs (14%) and CUVs (11%).
Next to the performance category, off-road and plus-size tires are also strong performers, comprising a market total of $1.88 billion in 2019, up from $1.62 billion just three years prior. Pickup applications took the lion’s share of sales in that category, accounting for a massive 69% of purchasing. SUV applications followed at 22%.
Of course, tires are useless without wheels, and custom wheels as a category grew steadily in market size from a $1.21 billion valuation in 2016 to $1.32 billion in 2019. Again, pickup applications dominated in that category, comprising 40% of sales. Midrange vehicles followed at 10%, and SUVs at 13%. Although CUVs represent an increasingly popular vehicle category, their tire sales amounted to a mere 8% of market share.
Wheel- and tire-care products are natural aftermarket upsells, but the
wrong ones can wreak havoc. The SEMA Wheel & Tire Council
continues to make its “Wheel Care Guide” available for use in internal
staff training or as a counter-topper for customers.
Whatever the wheel or tire category, however, the storyline for the aftermarket over the past few years has been one of upward growth, with every expectation that the trajectory would continue well into 2021. But that was all before COVID-19.
According to Janine Young, a commissioning editor at Smithers Information, COVID-19 has dealt a series of critical disruptions to the global tire industry.
“The pandemic affected the global economy, collapsing vehicle and equipment production sales and usage as well as tire production and trade,” she said, adding that a recent Smithers market report, “The Future of Global Tires to 2024,” identified the following trends as likely to impact the industry for some time to come:
The industry is experiencing its largest volume declines in decades, and conditions have been characterized as “exceptionally soft.”
Recovery is expected to be slow, with lagging global resolution to the virus.
The weakened economy, lack of consumer confidence and high global unemployment rates have resulted in a plunge in auto sales and aftermarket tire sales.
In the supply chain, consumption of tire materials has dropped in line with tire manufacturing, creating declining prices for natural and synthetic rubber and other key commodities.
R&D budgets and investments in new technologies are being curtailed to shore up other critical business functions.
Changing consumer patterns, such as working from home and e-commerce, are likely to have a lasting effect on tire industry practices.
Industry production levels will be impacted for the long-term, with implications for global supply chains.
“In general, replacement-tire demand will remain muted during the recovery,” Young said. “Passenger car, SUV and noncommercial light-truck vehicles and tires saw a slight bounce over the summer but will likely take three-plus years to again reach 2019 demand. Passenger-car, light-truck and medium- to heavy-duty trucks are most impacted by commercial and personal traffic reductions.”
Supply-chain disruptions have produced temporary chrome
shortages and significant backorders for a variety of wheel products.
In 2021, look for colored wheels—and especially those with black
satin and sheen finishes—to remain popular alternatives over
polished chrome for consumers.
Related Smithers research also now forecasts a slump in the prestige, luxury and high-performance passenger-tire categories as well.
“Tire segments that are more resilient are commercial van tires, due to the tremendous growth in last-mile delivery for e-commerce shopping, and motorcycle tires, due to their shorter replacement cycle,” Young explained. “A lowering of consumer purchasing power and transportation needs will favor motorcycles at the expense of entry-level car purchases in some areas, although less commuting will overall damage replacement-tire demand.”
How that will play out in the domestic wheel and tire aftermarket remains to be seen. As of fall 2020, many SEMA-
member companies reported stable sales after an initial spring 2020 dip.
SEMA Wheel & Tire Council (WTC) select committee member Ted Schlaack is a business consultant for RimTyme, a franchised network of sales and rental custom wheel and tire stores that is entering 2021 in relatively good shape. Schlaack believes that tire sales have been helped by improvements at every level of product, making lower-priced lines more attractive to consumers.
Atturo is another—they’re sales are holding up as well as a Nitto, Toyo or BFG. Everyone wants a big brand, but they don’t necessarily want the big price. We’re seeing better quality out of off-name brand products, helping get sales or rentals with a lower price. Of course, the big companies have always done a great job, and their tires are lasting as long as they have in the past.”
Cerebrum is an example of new technologies being brought to bear in
the wheel and tire aftermarket. Inserted into tires, the smart sensors
transmit a broad range of tire data to the consumer’s smartphone—
well beyond the basic information supplied by TPMS.
On the Wheel Side
Meanwhile, the wheel market now appears to be recovering after also taking a hit in spring 2020.
“In February, March and April, we lost a lot of business, then it roared back, and by October we were exceeding 2019 results and having a banner year in 2020,” Schlaack said. “At our price points, of course, our customers want as much as they can get for as little as they can get it. We’re selling mostly one piece cast. We do have some forged wheels, but I just haven’t seen them selling among our customers as much as our standard, more reliable cast wheels.”
Schlaack said that RimTyme consumers also seem to be holding their own amid a tough economy, spending on average what they did before the pandemic.
“They’ve had more cash in their pockets,” he said. “Even though we’re primarily a rent to own organization, we’re still a wheel shop that does about 40%–50% of our business in direct purchases. The consumers who rent to own want the same products at lower-end price points, but we’re getting weekly and monthly payments that equates to a fair price, helping them get products that they may have not been able to otherwise attain.”
In terms of what’s selling, Schlaack noted several popular trends.
“In the last couple of years, we’ve seen a massive increase in the off-road market, particularly with Jeeps, so our customers who were formerly getting vehicles with 28-, 30- and 32-in. tires are now driving off with 35-in. or larger tires,” he said. “We’ve also seen the car market start to come back recently—more lightweight wheels and high-performance tires. In reference to those, of course, chrome is in shortage for us and likely everyone in the industry right now with everything that’s going on this year, so we see a lot of colored, black-sheen and polished wheels in our markets.”
Until the pandemic, the custom wheel aftermarket had been on a
steady four-year growth trajectory, with a total valuation of $1.32
billion through last year.
Malloy also noted that wheels manufactured by companies imbued with motorsports heritage are continually in demand.
“Track days have also gotten quite popular in the last five years,” he added. “The track-inspired look—aggressive but functional camber, lightweight wheels and proper-width tires—is here to stay.”
According to Malloy, consumer tastes are also driving a number of key manufacturing trends, with Japanese manufacturers now releasing more truck wheels and the entire industry perfecting the latest design and engineering technologies.
“Most performance enthusiasts work hard to reduce weight—especially the unsprung variety,” he observed. “Manufacturers with a rich motorsports heritage, such as BBS and Rays, continually push the limits of engineering to achieve the lightest but strongest wheel for street and track use. BBS shocked the world with the FI-R—a forged Y-spoke wheel with industry-first recesses in the actual spokes. It offered extreme strength, a proper load rating and low weight—a 20x12 wheel weighs 20.3 lbs. Shortly after, BBS released a forged-magnesium wheel program for street and track use in which a 20x12 weighs 18.6 lbs.
“The consumer now understands the difference between flow-formed cast wheels and traditional, low-pressure cast wheels. Flow-formed, flow-forged and radial-forged wheels are still cast but stronger and lighter. Also, the manufacturers can execute more complex designs when using that manufacturing process.”
In recent years, those more complex designs have been made increasingly possible with the assistance of additive-manufacturing—or 3-D printing.
At the SEMA360 trade event, Design Infini was a New Product Award runner-up with its Drifz D09 wheel. Founded by CEO Suny Chung in 1995, the company has helped to design and prototype wheels for a number of prominent brands, including Center Line, Gear and ATD Wheels. Now Chung and his team regularly employ an EnvisionTEC 3D printer to create their attention-grabbing concepts. According to Chung, a 3-D-printed prototype can be an invaluable tool to help clients rapidly grasp a new product design.
“We can visualize from a sketch because we’re trained, but some of our clients may not be able to,” Chung recently told 3D Printing Media Network, an additive manufacturing media outlet. “We have seven in-house designers. Our mission is to come up with designs and products that will lead the marketplace, and we always strive to be the best. It’s important for us to engage in today’s fast-moving technology. More and more, 3-D printing is going to be a big part of the plan.”
Steve Swanson, a national sales manager for The Carlstar Group and another WTC select committee member, said that in addition to the newer, cutting-edge styles there’s still a significant demand for restoration and period-correct designs from the ’60s through the ’80s. In fact, the influence of classic Camaro, Mustang and MOPAR styling cues persists, even among modern-muscle vehicle owners.
“It’s pretty straightforward stuff—cast aluminum, all steel, stamped and rolled, welded product,” he explained. “What has impacted the physical characteristics of the wheel are the massive brake systems now being installed on factory vehicles—large calipers, large rotors, positive offsets—where back in the ’60s, ’70s and ’80s, it was all standard, negative-offset stuff with drum or very small disc-brake systems. But today’s high-tech suspensions and their dynamics require lighter unsprung weights. That has absolutely impacted the design characteristics and cosmetic attributes of the wheel and the way the wheel is manufactured—gravity cast to flow-form to forged wheels. All of it changes the dynamics of the wheel.”
The performance and special-purpose category was king within the
tire market in 2019, worth an estimated $2.54 billion and growing.
Reinventing the Wheel and Tire
Invention has always been a key driver for the aftermarket, but wheels and tires are so basic in design and function that there can seem little to reinvent. For tires particularly, most technological advancements have come at the OE supplier level and have principally revolved around more efficient tread patterns, lighter and quieter rubber compounds, improved manufacturing techniques, run-flat or self-sealing features, lowered rolling resistance and RFID labeling. Although a number of major tire makers are known to be experimenting with tires better adapted to autonomous vehicles, more exotic materials, 3-D-printed treads and even shape-shifting designs, changes over the past decade have been more evolutionary than revolutionary.
One major goal has been the continued improvement of TPMS to shake out its quirks and frustrations for shop professionals and consumers alike. Luckily, that is one area where the aftermarket has been able to step up and demonstrate its technological prowess—especially in TPMS servicing.
An example is Bartec USA’s Tech600Pro tool, a runner-up in the Best New Tire and Related Product award category at the 2020 SEMA360 online trade event. The product utilizes a wireless VCI to the OBD-II port to detect and decode a vehicle’s year, make and model in seconds. Able to work with all OE and major programmable TPMS units, the handheld tool features a graphical interface to quickly guide service technicians through all the necessary TPMS relearning and programming steps for the given vehicle.
Meanwhile, another company is looking to move the tire world beyond basic TPMS with more advanced technologies. According to Keith Ferry, Cerebrum Sensor Technologies founder and CEO, the company’s recently introduced smart tire sensor can be used in any tire to provide the consumer with a wide range of tire analytics that can enhance safety and performance.
The sensor information transmits to any smartphone and includes data and alerts that can help consumers and fleet managers make better decisions about tire maintenance and driving. Cerebrum will also soon feature a dealer database to refer consumers to wheel and tire retailers based on inventory and service availability. The brand is a spin-off from Tire Stickers, a maker of tire lettering pens and raised decals, based in Van Nuys, California.
“Our products were initially intended for aesthetic use—personalizing vehicle tires with words or designs for a unique look,” Ferry explained. “As we developed a further understanding of the market, we identified the need for functional products to be used for tire inventory management, tracking, security and maintenance.”
That led the company to introduce products for QR and barcoding, along with RFID tags that could be affixed to tires.
“In the era of IoT [internet of things] and advanced vehicle systems, tires are still in the Stone Age,” Ferry asserted, adding that, while TPMS was a major advance, the technology falls short with limited and often confusing information.
“We saw this as an opportunity to use our patented technologies and expertise to bring a more intelligent solution to tires,” he said. “Our flagship product was initially intended for aftermarket use, as it can be installed to any vehicle tire without the involvement of the tire manufacturer. That enables consumers, jobbers or others to add Cerebrum technology to the tires with the same ease as a TPMS sensor but without the limitation and challenge of vehicle teaching or learning.
“For the enthusiast, Cerebrum can be used for high-performance ‘sessions’ that track and report temperature and pressure changes by the second, lap times, location and the like. Our latest feature measures tire load, which is of immense value to trucks and fleets. Our technology is scalable to all tire types, and we expect to see it used by OEs within the next two to three years.”
As an industry observer, Schlaack views the latest TPMS innovations as one of the most promising trends in the wheel and tire space.
“The sensor market has improved tremendously, and that’s really helped us on the installer side and the customer-satisfaction side as well,” he said. “TPMS sensor programing has advanced so much in 11 years. It used to take almost as long to program sensors as it did to install them. That has improved in the last couple of years, and I’ve been excited to watch [recent developments].”
Off-road and plus-size tires account for another major tire category,
reaching $1.88 billion in 2019 with pickup applications comprising a
whopping 69% of sales.
Adding Value for Consumers
With consumers driving fewer miles and extending the life of their purchases, helping them to properly care for and get the most from their wheel and tire products can be a powerful way to enhance value and cement relationships. Suggesting ancillary items such as ceramic coating and/or cleaning products, lug nuts, wheel bolts, spacers, stud conversions and even suspension upgrades can also increase margins. Perhaps most important of all, the pandemic has created a hunger among consumers for basic automotive knowledge and do-it-yourself skills. Fortunately, the SEMA WTC offers two downloadable sales tools to help retailers and installers demonstrate their expertise and stand out with potential wheel and tire purchasers.
The WTC “Ride Guide” report provides users with easy-to-understand graphical representations of test data surrounding the effects of various tire sizes. Compiled by the Clemson University International Center for Automotive Research, the vehicle performance data includes comparisons of ride comfort, road grip, steering-firmness response, directional response and steering-speed response. The guide is intended to arm sales professionals with information that can help consumers narrow their style and design options based on desired performance characteristics.
In addition, the WTC’s “Wheel Care Guide” provides tips and FAQs about proper wheel care, explaining common wheel surface finishes and the appropriate cleaning solutions for each. The guide can be used as a training aid for internal staff or as a counter-topper for customers. Either way, it can help staff share expertise with store visitors and suggest appropriate wheel-care products. Both WTC guides can be downloaded at www.sema.org/wtc-guides.
The ultimate good news is that consumer interest is already showing signs of rebound even though the wheel and tire markets have experienced setbacks from COVID-19. As always, businesses that keep a careful eye on industry trends and changed consumer purchasing habits will be best positioned to ride out what appears to be a temporary slowdown.
The Indonesia Vintage and Classic car association (PPMKI),
a 40-year-old association, boasts 2,000 members and local
branches throughout the country. There is a preponderance
of European vintage vehicles. The U.S. Embassy reports that
there is also interest in American musclecars. Noting some
well-known American musclecars [with a following] in
Indonesia include the Ford Mustang, Chevrolet Camaro,
and Dodge Charger. The classic Jeeps/Jeep Willys also
can be found. The association hosts show and shines and
vintage car touring events. Courtesy: Reiza Fauzy/
Shutterstock.com
As SEMA News continues its periodic series on promising global export markets for U.S. manufacturers, this month the focus is on Indonesia.
The fourth most populous country in the world (after China, India and the United States) with 270 million people, Indonesia presents opportunities and challenges for manufacturers of automotive specialty-equipment products. A recent World Bank report provided a positive picture of the growing economic climate in this archipelago nation. It enjoys an average annual gross domestic product growth rate of 5.6% and a rapidly growing middle class that now tops 52 million—20% of the population—and has become the world’s eighth largest economy in terms of purchasing-power parity.
The former Dutch colony has a young population with growing disposable income. More than 40% of Indonesia’s population is under the age of 24. Indonesia recorded national car sales of around one million units annually in recent years, according to the Indonesia car manufacturers association Gabungan Industri Kendaraan Bermotor Indonesia (Gaikindo).
Drag racing, drifting and other forms of motorsports have fan
bases in Indonesia. The Intersport World Stage—a pan-Asian
drifting event with Indonesian and world champions—was
most recently held in December 2019 in Tangerang, about 40
minutes west of Jakarta. It was one of the largest drifting
events in Southeast Asia and featured Indonesian as well
as international pro racers. Drag racing held its own event—
the Indonesia Drag Wars 2020—in the city of Jogjakarta. There are
two main tracks in Indonesia. This one is about 30 minutes from
the center of Jakarta and the Gelora Bung Tomo Circuit in
Surabaya, East Java. Indonesia has also been added to the
2020 Formula E schedule but was postponed due to the
COVID-19 pandemic. Courtesy: Topeng Yoyoa/Shutterstock.com
The vast majority of passenger cars sold in Indonesia—some estimate nearly 70%—are compact multipurpose vehicles (MPVs), crossovers and SUVs equipped with three rows of seats. That would put the percentage of these light trucks at one of the highest in the world market. In fact, the best-selling model in the market is the Toyota Avenza—a compact MPV. Pickups are also popular.
Japanese vehicles, many which are built within Indonesia, captured the lion’s share of the market at 90%. Most of the remainder is captured by European and, increasingly, Chinese brands. BMW, VW and Mercedes-Benz all build vehicles in Indonesia and capture much of the rest of the market, along with Chinese brands such as Wuling that are assembled in Indonesia.
U.S. brands have a minuscule share of the market. With the closing of Ford and GM plants, no U.S. vehicles are manufactured in Indonesia. Most recently, GM announced that it will no longer sell GM-branded vehicles in the country, closing all of its dealerships. Ford vehicles are sold through a network of about 30 dealerships in the country, but Chrysler, though currently limited in its offerings and its sales network, is looking to increase the number of dealers and hopes to grow its market share.
The Jeep Wrangler and the Jeep Gladiator are currently sold in Indonesia, but the company plans to add to those offerings in the future, including the Jeep Compass Facelift 1.4, the all-new Grand Cherokee 3.6 and the New Jeep Grand Cherokee 2.0.
Dhani Yahya, COO of DAS Indonesia Motor, the newly appointed distributor of Chrysler products, was recently quoted in the media. “The growth of the Jeep market in Indonesia will be transformed from a limited market volume to a much larger market volume, with the market share of the premium segment growing from 2% to 15% to 20% in the next three to five years,” he said.
In another nod to the growing classic car scene in Indonesia, the
country in 2019 hosted its first edition of Concours d’Elegance
featuring local collections of vintage cars and motorcycles, including
a ’35 Mercedes Benz B 170 Cabrio and ’53 Chevrolet Corvette.
Pictured above is a ’56 Chevrolet Bel Air on display at a car show in
Surakarta, Indonesia. Courtesy Adhitya Nurfatoni/Shutterstock.com
NMAA
To grow the Indonesian automotive specialty-equipment industry, the National Modificator & Aftermarket Association (NMAA) has been established with the moto, “Standard is boring.” It seeks to grow the market by holding competitions to improve the skills of local builders and the knowledge of enthusiasts. The association sponsors a show called the Indonesia Modification Expo, with September 2019 being the second edition of the event. The association also hosts a weekly show “Modz Bidz,” among other activities.
Off-Roading
The Indonesia Off-road Federation (IOF) was founded in 1999 to promote off-roading. It is based in Jakarta, the country’s largest city. It has regional branches throughout the country and hosts off-road competitions. Among the off-road activities that have been regulated by IOF are off-road racing, mud racing, rock crawling, car crushes and off-road adventures.
The vehicles of choice for both off-road recreation and racing are Toyota Land Cruiser FJ40s (known as Hardtops), the Suzuki Jimny, and Jeeps—particularly the older Jeep Willys. Also sold are the Mitsubishi L200 Triton, the Toyota HiLux and the Mitsubishi Pajero Sport.
This pristinely restored vehicle pictured above was on display at a
Central Java Show and Shine event. Courtesy: Arif
Budi/Shutterstock.com
Classic-Car Enthusiasts
The Indonesia Vintage and Classic Car Association is a 40-year-old group that boasts 2,000 members and local branches throughout the country. There is a preponderance of European vintage vehicles, but the U.S. Embassy reports that there is also interest in American musclecars.
Some well-known American musclecars with followings in Indonesia include the Ford Mustang, the Chevrolet Camaro and the Dodge Charger. Classic Jeeps and Jeep Willys vehicles may also be found. The association hosts show-and-shine events and vintage-car touring events, with a typical gathering featuring more than 300 vehicles traveling throughout
the country.
Challenges:
Overseas Brand Protection
Taking steps to protect your brand’s reputation is an important first step in any overseas market in which you wish to do business. It’s especially important in Indonesia as the U.S. government in 2019 as one of 11 countries worldwide with the most serious IP concerns. The United States Trade Representative identified Indonesia on its priority watch list due to the reported lack of adequate and effective IP protection and enforcement, local manufacturing and use requirements, compulsory licensing, and the lack of effective border enforcement against counterfeit and pirated goods as well as fair and equitable market access.
Unnecessary and Costly Testing
U.S. firms should be mindful of additional requirements for testing and certification imposed on a wide range of products. In many cases, U.S. exporters will need to pay for an Indonesian laboratory or certification body to conduct testing for individual shipments, adding to the overall cost of bringing goods to market.
The US Commercial Service sreports, in fact, that the NMAA has been in talks with the Indonesia Ministry of Industry. The association is urging the government to apply the Standard Nasional Indonesia (SNI) to automotive specialty products. The embassy reports that the NMAA hopes that it can protect local industry from foreign competition through SNI certification requirements, thus giving local industry a chance to grow. The U.S.Commercial Service noted that the compulsory two-year-old SNI certification on automotive lubricants has been shown to negatively impact many foreign small and medium lubricant players entering the Indonesian market.
This vehicle was displayed at the Custom Show, a new event held in
October 2020 in Jogjakarta, Indonesia, which is about seven hours
from Jakarta in Central Java. Courtesy Welly IKW/Shutterstock.com
Labeling
All imported consumer goods must identify the importing agents. Previously, the Government of the Republic of Indonesia required that information on product labels be distinctly and clearly written or printed or shown so that it can be seen easily and understood. Those requirements were somewhat eased with the implementation of a new Indonesian Ministry of Trade regulation (Ministry of Trade Regulation No. 73/M-DAG/PER/9/2015), which allows the label to be stamped in Indonesian on the product or inserted into the packaging.
On the other hand, additional products have been added to the list of products requiring labeling. On October 2019, the Indonesian Ministry of Trade issued regulation 79/2019, which amended regulation No. 73/2015 by including a list of goods and the required labeling, including for electronics, building materials, automotive spare parts, textiles and textile products.
As consumer purchasing power increases in Indonesia, so does the
ability of the country’s enthusiasts to buy specialty products and
enjoy many car hobbies, including motorsports such as drag racing,
drifting and off-roading as well as classic-car collecting. Another
favorite pastime is leisure off-roading, which increases the demand
for functional off-road products such as bull bars, lighting, winches,
suspension upgrades and turbochargers and superchargers.
Summary
As one of the quickest-growing economies in not only Southeast Asia but also the world, and one of the largest in terms of population, Indonesia provides opportunities with its growing middle class and accompanying disposable income for enthusiasts to purchase aftermarket upgrades.
Paying close attention to the types of vehicles on Indonesia’s roads as well as its regulations and other requirements will help improve the chance of success in the market. The country has a high social-media usage rate, aiding U.S. manufacturers in reaching consumers in the country to provide the latest in products and trends for enthusiasts eager and adept at seeking worldwide information on how to upgrade their rides or improve their vehicles’ performance on the track.
SEMA wishes to thank the U.S. Department of Commerce’s International Trade Administration. Elizabeth Couch in Washington, D.C., Eduard Roytberg in Ontario, California, and Michael Rosales in San Antonio, Texas, have provided ongoing support to SEMA. Special thanks also to Mario Simanjuntak, commercial specialist at the U.S. Embassy in Jakarta, for pulling together information on the Indonesian automotive specialty-equipment market. Simanjuntak is an excellent contact on the Indonesian automotive market and can be reached at mario.simanjuntak@trade.gov.
For SEMA members interested in additional information on the Indonesian market, email lindas@sema.org.
See PRI Road Tour videos on shop visits at 
2020 was anything but a typical year, defined by the COVID-19 health crisis that disrupted almost every facet of life in the United States. It should be no surprise that the results of the November election were equally unique. As the political world tries to make sense of the mixed messages that voters sent to Washington, D.C., on Election Day, the balance of power in Congress was still uncertain as this issue of SEMA News went to press. Two U.S. Senate races in Georgia, which carried over into a January 5 runoff election, would determine which political party controlled the Senate. Let’s take a look at the results of the elections and how they will impact the issues on the legislative horizon in the 117th session of Congress (2021 and 2022).
Permatex appointed Dan Clarke (left) to the position of director of marketing for the engine repair division. Clarke will be responsible for driving the development and execution of all marketing activities for the engine repair business to meet strategic objectives and deliver financial goals. The announcement was made by Lee Burtelson, vice president/general manager of engine repair. With Permatex since 2015, Clarke recently served as the company’s sales director for the U.S. traditional channel. Prior to Permatex, Clarke was a business unit manager at Coburn Technologies Inc. and spent 11 years with HID Global Corp. in various management and sales positions.
Eleven Engineering Inc. announced that Matt Michielin joined the company as marketing team leader. His responsibilities at Eleven Engineering include maintaining the SKAAstore and the creation of the new SKAAstore website, customer service, office operations, database management and social-media and communications assistance. Prior to joining Eleven Engineering, Michielin worked with Clean Harbors Environmental Services, the government of Alberta, and Special Olympics Alberta.
Pertronix Performance Brands announced that industry veteran Jenna Jefferies joined the company as national account manager. She previously spent 18 years at K&N as national account manager. Jefferies will be responsible for growing national account revenue and for providing new product feedback to the Pertronix engineering team. She comes from a motorsports family and is passionate about desert off-road racing. The SEMA Businesswomen’s Network (SBN) recently named her as its SheIsSEMA Woman of the Year.
Caliber announced that current President and Chief Operating Officer Mark Sanders succeeded longtime CEO Steve Grimshaw, effective January 1, 2021. Grimshaw moved to full-time executive chairman at that time. Sanders has spent his entire career in the automotive industry and joined Caliber Collision in 1997 as it expanded its operations into Texas. As president and COO, Sanders led the growth strategy, which expanded Caliber Collision’s footprint throughout the United States while also positioning Caliber for the future through the strategic acquisition of other lines of business. During Grimshaw’s tenure, the organization grew from 68 locations in two states to more than 1,200 locations in 34 states across the United States.
When the California Highway Patrol (CHP) needed to replenish its fleet of patrol cars in late 1958, it asked car manufacturers to submit sample versions of their ’59 models for evaluation. At the time, the CHP had some pretty specific requirements: The car had to be a two-door sedan with a minimum wheelbase of 122 in. and weigh at least 3,800 lbs.; be equipped with heavy-duty suspension, heavy-duty brakes, 15-in. wheels, six-ply nylon tires, and an automatic transmission with at least three forward speeds; and be powered by an OHV V8 of at least 380 ci with at least 9.75:1 compression, hydraulic lifters, a single carburetor (though multiple carburetors were allowed) and dual exhaust.
One silver lining in the COVID-19 pandemic comes by compelling all of us to innovate, adapt and find new paths to success. In some cases, we can imagine that these new ideas may evolve into practices and tactics for the long haul. Case in point: The PRI Road Tour.
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