Story and photos by Andreas Conradt, Automedia

Off-Road-Focused Hyundai Palisade XRT Bound for United States

Hyundai has unveiled the latest iteration of the Palisade, the Korean automaker's flagship SUV, but SEMA News sources recently caught new images of the yet-to-be-revealed rugged XRT model.

Retaining the engine range of the standard model--a 2.5L four-cylinder gas engine offering 281 hp in standard configuration or 334 hp with hybrid power--the XRT model will be differentiated by modified bumpers, front and rear, wider sills, plastic cladding around the wheelhouses and off-road-focused tires.

More details will be released at a later date.

Mercedes-Benz Spotted Testing Next-Generation GLB

Spy photographers have caught a few camouflaged prototypes of the Mercedes-Benz GLB during development testing in Germany, giving SEMA News a first taste of what’s coming.

The bodywork is entirely covered in camouflage, but the proportions strongly suggest we’re looking at the successor of the three-row GLB rather than the hatchback-style GLA. The SUV appears to have a sleeker design compared to its predecessor, incorporating Mercedes’ new styling language.

The front end features slimmer LEDs flanking a large grille that appears to be mounted lower on the front bumper. The greenhouse has been slightly tweaked, as with the upright tail, disguised with fake taillight stickers.

Mercedes’ entire future compact lineup will ride on the new MMA (Mercedes Modular Architecture) platform, which is compatible with ICE and EV powertrains.

The fully electric models could offer the option between a rear-mounted electric motor with 268 hp, or a dual-motor setup with 375 hp. The EV will likely be available with 58 kWh and 85 kWh battery packs, although its driving range will be shorter than the 466 miles expected from the more aerodynamic CLA.

The ICE-powered lineup will include a mild-hybrid 1.5L four-cylinder gas engine and a small electric motor inside the eight-speed dual-clutch automatic transmission. The combustion engine is expected to be offered with different outputs, rated at 134 hp, 161 hp and 188 hp, with an additional 27 hp from the electric motor.

Like the current GLB, the new model will offer both front-wheel drive (FWD) and all-wheel drive (AWD) configurations. An AMG performance version is on the horizon, likely with some form of hybrid assistance for extra power and efficiency, according to insiders.

BMW M5 Set for a Facelift

SEMA News sources have captured new spy shots of a BMW M5 cold-weather testing in a refreshed look echoing the "Neue Klasse" design originally intended for the German company's electric vehicles (EV).

The photos show almost a completely new model of the M5, signaled by the level of camouflage on the bodywork, with sheetmetal covering up features such as the longitudinally running central hood crease. However, the distinctive Hofmeister crease on the rear door is not hidden, indicating it is not as new as it looks at first glance.

The headlights will be integrated into a transverse piece, as well as the narrow kidney grilles, while the bumper features large air intakes, and the alloy wheels are equipped with ceramic brakes. The sports sedan does not yet have production lights, according to the images, instead making use of temporary lights.

Although unconfirmed, the M5 is expected to feature the new panoramic display system of the 10th generation iDrive.

Due in 2027, the M5 will likely be a high-powered plug-in hybrid (PHEV).

Volkswagen Tera Micro-SUV for India, South America Surfaces in Scandinavia

Spy shots of Volkswagen's small SUV for India and South America—the Tera—have surfaced, featuring a thinly disguised prototype testing on icy roads in Scandinavia.

Based on the same platform as the new Skoda Kylaq, the Tera will have decent ground clearance, as demonstrated by the new images. It will also be similar in looks to other new Volkswagen models, including the third-generation Tiguan, with a slim upper grille, slim LED headlights and a chunky front bumper.

Although not a coupe SUV, the Tera will get a sloping roofline and stubby taillamps. The Tera will also get large windows and the beltline will curve upwards towards the C-Pillar.

The powertrain details of the Tera are yet to be announced but it won’t be surprising to see Volkswagen use its 1.0L TSI engine with 114 hp mated to either a six-speed manual or a six-speed automatic.

By SEMA News Editors

A big part of planning a successful week at the SEMA Show is securing the best accommodations for your needs. Location, low price, amenities and ratings will all be important factors in determining the right place to stay for the 2025 SEMA Show, November 4-7, Las Vegas.

To make the process as quick, easy and affordable as possible, Show organizers have once again partnered with onPeak, the official hotel provider of the SEMA Show, to offer not only offer the best nightly rates, but plenty of other unparalleled perks. Hotel reservations for the 2025 SEMA Show--November 4-7, Las Vegas--are now open online at this link. 

See the top five benefits of booking you 2025 SEMA Show hotel through our only official partner, onPeak, below:

• Earn Hotel Rewards Points 

We know how important and valuable your hotel rewards points can be and how quickly they can add up when you travel to events and trade shows. That's why your reservation at an official hotel counts towards your hotel loyalty program. Simply enter in your rewards number when securing your reservation and you're all set. The benefits are endless when you book in the block. 

• Deep Value & Discounts 

We work hard to negotiate the lowest available nightly rates--even below the hotel's rack rate. It will be hard to beat our rates, so forget about spending hours searching online for a great deal--just book through onPeak. 

• Fully Flexible Booking   

We know plans change so that's why there are no change fees and no full pre-payment required at the time of booking, unlike most other booking channels. You can make changes or cancel your reservation without penalty until October 9, 2025.  

• Easy Group Bookings 

Book your entire group--large or small--in real-time, with immediate confirmations. Nab the rooms you need now and log in later to assign specific guests. Rooms can be selected based on your team's specific nights and stay patterns, and you can manage payment for your whole block or guarantee each room with separate credit cards--it's that easy. 

• A Sustainable Hotel Stay 

The official SEMA Show hotel provider, onPeak, is available to help you find confidence in living a sustainable lifestyle. View hotel's sustainability plans on their website at onpeak.com/sustainability and read up on a few helpful travel tips at blog.onpeak.com. 

Hotel reservations for the 2025 SEMA Show--November 4-7, Las Vegas--are now open online here. Registration for the 2025 SEMA Show will open on Monday, April 28.

Keep an eye on SEMA News and semashow.com for the latest deadlines, updates and opportunities for the 2025 SEMA Show.

By Ashley Reyes

Industry members have until Friday, March 14, to submit their nominations for induction into the SEMA Hall of Fame, the association's highest honor, at sema.org/hof. The SEMA Hall of Fame recognizes outstanding persons in the automotive aftermarket who have enhanced the stature of, or significantly contributed to, the industry and/or association's growth.

"SEMA's Hall of Fame is a tribute to the leaders and changemakers who have propelled the industry forward in extraordinary ways," said Jose Escobar, SEMA manager of recognition programs. "Each year, we seek to identify new individuals whose vision and accomplishments disrupted the status quo, set new benchmarks for excellence and left an undeniable mark on the industry's success."

Established in 1969, the SEMA Hall of Fame is one of the association's longest-standing programs. To date, 180 individuals have been inducted, each exemplifying innovation, leadership and positive change within the industry. These trailblazers have played a pivotal role in advancing the aftermarket industry through their dedication and passion.

Nominee qualifications include:

• The candidate must have made contributions that extended beyond the local level and reached throughout the national and/or international level.
• The candidate is and/or has been involved in the automotive specialty industry and/or SEMA for a minimum of 10 years, although 15 years is preferred.
• The candidate must have made outstanding contributions toward enhancing technology, professionalism, dignity and/or general stature and growth of the automotive specialty industry.
• The candidate must have conducted himself/herself with a high degree of integrity both within and outside of the automotive specialty industry.
• The candidate must be at least 50 years of age prior to the SEMA Show during the year of induction or they may be at any age if deceased as long as the nomination is presented at least one year posthumous.

SEMA is also accepting nominees that have been employed by the association or have served as a contractor and/or vendor of SEMA. In addition to meeting the above qualifications, the nominee must have no less than one year of total separation from SEMA in any and all capacities, arrangements or relationships.

The 2025 SEMA Hall of Fame inductees will be announced in May and honored during the SEMA Leaders & Legends Gala in July.

Nominations are due by Friday, March 14, at sema.org/hof. Questions can be directed to Escobar at josee@sema.org. To view a list of SEMA Hall of Fame Inductees, visit this link.

By Kenny Wright

Meet new customers. Promote Your Brand. Sell more products.

The 2025 SEMA Show, November 4–7, Las Vegas, will showcase the best brands in the aftermarket and the biggest gathering of buyers and decision-makers commanding serious buying power.

The entire industry will be at the Show--including your target customer. Will your brand be there?

"SEMA is a lot of different things, but it is definitely the single largest gathering of performance brands in the world," said Jason Bruce, a 2024 SEMA Show exhibitor. "There is no better place to meet and see customers and promote your products than the SEMA Show."

Reserve your 2025 SEMA Show booth here, and learn more, including why to exhibit, at semashow.com/exhibitor.

By SEMA News Editors

Toyota Motor Corporation has introduced a new fuel-cell (FC) system, its third-generation fuel-cell system is part of its continued efforts toward the realization of a hydrogen society.

The all-new system is designed to meet the particular needs of the commercial sector with the same durability as conventional diesel-powered engines, Toyota said. Additionally, the new system features improvements in performance, including fuel efficiency and a reduction in costs compared to the prior version.

In addition to passenger vehicles, the system will be expanded for use in heavy-duty commercial vehicles and is planned for introduction in markets mainly in Japan, Europe, North America and China after 2026 at the earliest.

Toyota shared the main features of the third-gen FC system include:

• Improvement in durability, up to 2x that of the prior generation, achieving durability comparable to diesel engines and maintenance-free design.
• Improvement in fuel efficiency of 1.2x that of the prior generation, allowing for a 20% more cruising range.
• Significant cost reduction through innovations in cell design and manufacturing processes.

The third-gen FC system was unveiled for the first time on Wednesday, February 19, at the H2 & FC EXPO (International Hydrogen & Fuel Cell Expo) in Tokyo, Japan. Toyota, like others in the industry including SEMA, views hydrogen as an important fuel in pursuit of carbon neutrality. 

For more information, read the Toyota announcement here.

By SEMA News Editors

New Hampshire Lawmakers Reject Increased Race Track Fees

The New Hampshire House of Representatives voted to effectively kill House Bill 346 (HB 346), which would have increased the maximum annual licensing fee that towns can charge local race tracks from $100 to $500.  

PRI opposed HB 346, warning that it would have imposed unnecessary financial burdens on race tracks across the state. By allowing local governments to increase licensing fees fivefold, the legislation threatened to create a patchwork of inconsistent costs, making it harder for tracks--many of which are small, family-run businesses--to stay competitive. 

PRI continues to advocate for policies that support the health of grassroots racing and the motorsports industry. The defeat of HB 346 ensures that New Hampshire's race tracks can continue to operate without additional financial strain, preserving the state's vibrant racing community. 

For more information, contact Christian Robinson, PRI's senior director of state government affairs, at christianr@sema.org.  

Photo courtesy of Jill Torres and New Hampshire Motor Speedway/Speedway Motorsports

Brembo, Michelin Partner to Share Knowledge, Fine-Tune Offerings

Brembo, the Italian brake supplier, and Michelin, the French tire manufacturer, have formed a new partnership to merge their technologies and insights.

Through the partnership, the companies combined Michelin's connected solutions software to provide tire grip data to Brembo's SENSIFY braking system. Engineers used the tire insights to fine-tune the braking system.

In the first testing phase, Michelin's tire models and algorithms were integrated with Brembo's intelligent braking models and vehicle simulations in a fully virtual environment. In the second phase, physical tests were conducted on tracks at Michelin's Research Center, where the simulation results were confirmed.

The tests demonstrated braking distance reductions up to 13 feet during ABS events, with the same tires in various conditions.

For more information, visit brembo.com or michelin.com

By Ashley Reyes

The SEMA Future Leaders Network (FLN) has named Craig Metcalf of Küat Innovations LLC as the network's newest spotlight member.  

Get to know Metcalf in his interview with SEMA News below.  

SEMA News: What is the best advice you have ever received?  

Craig Metcalf: When you start doing more, you realize how much more there is to do.

SN: What keeps you in the industry?  

CM: Professionally, the industry is new to Küat, and there is much to learn!

SN: How do you prepare for an important meeting?  

CM: Stay calm and collective; focus on the goal.

SN: If you could go to lunch with one industry leader, living or dead, who would it be?  

CM: Any of my Küat coworkers. I would enjoy the time and learn something new.

Fill out an FLN member spotlight form to be eligible to be featured on FLN's social media, SEMA News and FLN member updates.  

From the SEMA Washington, D.C., office

With the Environmental Protection Agency (EPA) transmitting to Congress the Clean Air Act waiver granted to California for the state's Advanced Clean Cars II regulation, SEMA--on behalf of its members and the nation's community of automotive enthusiasts--urges federal lawmakers to swiftly strike down the waiver using their authority under the Congressional Review Act.

SEMA thanks President Donald Trump and the EPA for ensuring this policy is given the scrutiny and consideration it is owed due to its broad applicability to the nation's economy and individual freedoms.

"During the November election, voters resoundingly rejected candidates who support electric-vehicle (EV) mandates, only to see their voice suppressed in the final days of the Biden administration when a waiver was granted to California to prop up its radical, economy-killing Advanced Clean Cars II policy. Today, Congress has the opportunity to make right by the American people," said Mike Spagnola, president and CEO of SEMA. "SEMA calls on lawmakers from both sides of the aisle to use their Congressional Review Act authority to stand up for American ingenuity and innovation, for the power of the free market, and for the individual freedoms of people to choose which vehicle is right for their lifestyle and needs. Congress must reject the Advanced Clean Cars II waiver and stop California's regulatory land grab in its tracks."

SEMA is not anti-EV; rather, it champions a technology-neutral approach that fosters innovation and ingenuity. The association will continue efforts to preserve Americans' rights to vehicle choice and the automotive aftermarket industry's ability to design, manufacture and bring to market products that help solve the emissions challenge.

During the 2024 presidential campaign, SEMA, through its Driving Force Action Super PAC, educated voters about the damaging impact of EV mandates and the profound importance of empowering the automotive aftermarket to develop innovative solutions to carbon emissions using American ingenuity.

For more information, visit sema.org.

From the SEMA Washington, D.C., office

With the Environmental Protection Agency (EPA) transmitting to Congress the Clean Air Act waiver granted to California for the state's Advanced Clean Cars II regulation, SEMA--on behalf of its members and the nation's community of automotive enthusiasts--urges federal lawmakers to swiftly strike down the waiver using their authority under the Congressional Review Act.

SEMA thanks President Donald Trump and the EPA for ensuring this policy is given the scrutiny and consideration it is owed due to its broad applicability to the nation's economy and individual freedoms.

"During the November election, voters resoundingly rejected candidates who support electric-vehicle (EV) mandates, only to see their voice suppressed in the final days of the Biden administration when a waiver was granted to California to prop up its radical, economy-killing Advanced Clean Cars II policy. Today, Congress has the opportunity to make right by the American people," said Mike Spagnola, president and CEO of SEMA. "SEMA calls on lawmakers from both sides of the aisle to use their Congressional Review Act authority to stand up for American ingenuity and innovation, for the power of the free market, and for the individual freedoms of people to choose which vehicle is right for their lifestyle and needs. Congress must reject the Advanced Clean Cars II waiver and stop California's regulatory land grab in its tracks."

SEMA is not anti-EV; rather, it champions a technology-neutral approach that fosters innovation and ingenuity. The association will continue efforts to preserve Americans' rights to vehicle choice and the automotive aftermarket industry's ability to design, manufacture and bring to market products that help solve the emissions challenge.

During the 2024 presidential campaign, SEMA, through its Driving Force Action Super PAC, educated voters about the damaging impact of EV mandates and the profound importance of empowering the automotive aftermarket to develop innovative solutions to carbon emissions using American ingenuity.

For more information, visit sema.org.

By SEMA News Editors

Troy, Michigan-based J.D. Power--one of the global providers of consumer insights, advisory services and data and analytics--has announced vehicle problems after three years of ownership have reached the highest level since 2009, according to the J.D. Power "2025 U.S. Vehicle Dependability Study" released last week.

Compared with 2024, the industry currently experiences a 6% increase in problems per 100 vehicles (PP100), which is 12 PP100 worse than a year ago, resulting in an industry average of 202 PP100. The rise in problems is attributable to mass-market brands experiencing a 16 PP100 increase related in part to software defects. A lower score indicates higher vehicle quality.

The results of this year's study are not unexpected, said J.D. Power, given the results of its "2022 Initial Quality Study," which tracked problems early in the ownership period of '22 model-year vehicles. That year, initial vehicle quality notably declined from 2021, and problems also reached a record high. Three years later, the issues continue to be problematic for owners, according to findings of the 2025 VDS, J.D. Power said.

"While the increase in problems this year may be a thorn in the side of automakers and owners, it's important to remember that today's three-year-old vehicles were built during a time when the industry was grappling with major disruptions," said Jason Norton, director of auto benchmarking at J.D. Power. "Supply chain issues, record-high vehicle prices, and personnel disruption in the wake of the pandemic were problematic."

The study, now in its 36th year, covers 184 specific problem areas across nine major vehicle categories: climate, driving assistance, driving experience, exterior, features/controls/displays, infotainment, interior, powertrain, and seats.

Following are some key findings of the J.D. Power 2025 U.S. Vehicle Dependability Study:

• Problems related to software defects increase: Android Auto and Apple CarPlay connectivity remains the top problem in the industry for a second consecutive year, increasing to 8.4 PP100 from 6.3 PP100 in 2024. Built-in Bluetooth systems (4.6 PP100) and Wi-Fi (2.4 PP100) are also among the top problems related to software defects this year. While software defects comprise only 9% of the total problems owners experience, as vehicles become more software-reliant, this risk becomes more prominent.
• Personal device integration falls short: Of the top 10 problems industry-wide, half are related to smartphone integration, usage or connectivity. Keeping pace with the rate of change in smartphone technology is a challenge for the auto industry. Over-the-air (OTA) updates provide automakers the opportunity to overcome out-of-date software, with 36% of owners indicating they performed an OTA on their vehicle during the first three years of ownership. However, only 30% of these owners say there was an improvement after the update, while 56% of owners say there was no noticeable improvement.
• Battery electric vehicles (BEVs) get better as plug-in hybrid electric vehicles (PHEVs) get worse: BEVs have improved 33 PP100 year over year, while PHEVs have declined 26 PP100, making PHEVs the most problematic of all vehicle fuel types. Hybrid vehicles experience the fewest problems (199 PP100), followed by gas-powered vehicles (200 PP100); BEVs (223 PP100); diesel (233 PP100); and PHEVs (242 PP100). The gap between gas-powered vehicles and BEVs has narrowed significantly this year.
• New-model launches struggle: Of the 27 new models that launched in the '22 model year, only four have performed better than their segment average for dependability in the "2025 VDS." New models launched in 2022 average 241 PP100 in the "2025 VDS," whereas carryover models have 196 PP100 and perform better in all nine vehicle categories.

Highest-Ranked Brands

Lexus ranks highest overall in vehicle dependability for a third consecutive year, with a score of 140 PP100. Among premium brands, Cadillac (169 PP100) ranks second and Porsche (186 PP100) ranks third.

Buick ranks highest in the mass market segment, with a score of 143 PP100. Mazda (161 PP100) ranks second and Toyota (162 PP100) ranks third. 

Toyota Motor Corporation has the top overall model in the study with its Toyota Avalon. Toyota and General Motors Company (GM) receive the most model-level awards, with six each. Model-level award recipients for Toyota Motor Corporation are Lexus GX, Camry, Corolla, RAV4, Sienna and Tacoma. Model-level award recipients for GM are Cadillac XT6, Chevrolet Corvette, Chevrolet Silverado, Chevrolet Silverado HD, Chevrolet Tahoe and GMC Acadia. Nissan Motor Co, Ltd., receives two model-level awards for Nissan Kicks and Nissan Murano.

The "2025 U.S. Vehicle Dependability Study" is based on responses from 34,175 original owners of '22 model-year vehicles after three years of ownership. The study was fielded from August through November 2024.

For more information on J.D. Power's "U.S. Vehicle Dependability Study," visit here. 

Information and image courtesy of J.D. Power