SEMA News—June 2015

BUSINESS
By Mike Imlay

Today’s Hot-Rod Market

Legacy Stylings Meet New Technologies

The automotive aftermarket owes quite a bit to hot rodders. While, technically, the industry existed prior to the street scene of the ’50s, it was hot rodders who sparked the explosion of innovative performance and appearance products that now characterize the heart and soul of the automotive specialty-equipment market.

They made tinkering with, modifying and personalizing cars cool, catapulting the industry into the $33-billion powerhouse it is today. And although the industry has since grown and broadened to encompass a dizzying array of products and trends in countless categories, hot rodding has hardly faded from the scene.

“Our buyers’ survey indicates that the 2014 SEMA Show’s Hot Rod Alley was the most visited area of the Show, with 83% of buyers reporting that they went there in search of products and trends,” said Tom Gattuso, SEMA director of trade shows. “In fact, from among our 17 Show categories, street-rod and custom-car products ranked fifth in the number of scans. With such a large number of new products introduced at the Show, the hot-rod market remains obviously strong.”

Classic Numbers

For today’s aftermarket, hot rodding is most often about the restoration or modification of classic cars, and SEMA market research into classic-car consumers and their buying habits reveals some interesting trends. First, the restoration parts market has finally seen a “bounce back” during the past two years after several years of recessional decline, with overall retail sales in the category now reaching $1.44 billion. Meanwhile, the street-rod and custom niche weathered the downturn much better, continuing a decade-long incremental growth trend that has now reached $1.36 billion in sales. While SEMA’s research shows that 32% of classic-car consumers seek to restore their vehicles to original condition, 19% say they modify their cars for greater speed and horsepower, while 15% primarily seek to personalize their vehicles.

“Driven by core enthusiast groups, the street rod and custom and restoration niches have shown mild but steady growth over the last three years,” summarized Gavin Knapp, SEMA senior manager, market research. “Restoration buyers are drawn to accessory and appearance products, while street rod owners are more likely to purchase performance parts. While not affected by fluctuations in new-vehicle sales, these categories are constrained by the availability of classic cars and trucks for modification.”

In the realm of actual products purchased, intake, fuel and exhaust products continue to lead the pack, with engine accessories coming in a close second. Chassis and suspension parts and wheels are not far behind (see chart below). When buying their accessories, classic-car consumers still get a slightly larger percentage of them from mail-order operations and catalogs (20.9%) over independent specialty parts stores or garages (19.4%) and auto chain stores (17.3%). Consumers are eclectic in their sources for parts purchase information, ranking the Internet first at 47.4%, with a near even split for magazines (38.8%) and car events (37.8%) respectively.

While these numbers help get a handle on the marketplace, John McLeod, owner of Classic Instruments and chairman of SEMA’s Hot Rod Industry Alliance (HRIA) council, noted that pinning down precise characteristics of the niche remains elusive, since the true definition of hot rodding has been “getting grayed” for some time now.

“It’s anything that you want to name it,” he said. “It’s anybody who has a passion or an interest in a vehicle that they’re personalizing, changing and enjoying. Quite honestly, my personal opinion is that anyone who’s playing with anything is welcome in our group.”

He added that the restomod trend remains currently strong with consumers increasingly searching for products that bring contemporary technologies and conveniences to their project vehicles while maintaining “that old look.”

“The tri-fives and ’50s cars are still hugely popular,” he continued. “But we’re also starting to see the ’60s come in, the Camaros and Mustangs. The musclecar era has been [popular] for a while, but it’s really hooking in now, and we’re even starting to see it go a little bit later with the late ’60s and early ’70s. What was strange or odd is cool. The musclecar is still a strong market, and there’s tons of variety there. And trucks—all trucks—because there are tons of them, they’re easier to work on, relatively inexpensive and easy to get. I see that whole market really growing by leaps and bounds.”

“There’s little doubt that more cars are being built today than in years past, especially from the ’50s and ’60s,” said Brian Brennan, TEN street-rod group director and editor of Street Rodder magazine, which remains dedicated to covering the hobby from its early-era cars to its post-’48 trends. “A hot rodder is a hot rodder, and while these times are different—and as such there are differences in tastes and build styles—the more I speak with younger rodders, the more I realize that the same cars from all the eras that I like, they like, too, but put their own spin on the hobby.”

Who’s Buying What?

Brennan and McLeod agreed that while hot-rod consumers typically skew older and decidedly male, a good number of young enthusiasts are still being drawn into the hobby through the media and car events.

“What’s interesting here is that there is no doubt there is a ‘graying’ of the industry continuing, but we are seeing more and more 35- to 45-year-olds gaining entrance into the hobby,” Brennan said. “It has to be genetic, but gearheads are born into every generation. The more dads—and moms—bring their youngun’s to events, the more the hot-rod gene is passed down from generation to generation.”

McLeod also sees today’s hot-rodding demographic broadening significantly.

“It used to be more predominately male, but we’re seeing a huge female increase, and all ages,” he said. “It really is from high-school age up to the 70s or 80s. Obviously, where we see the market strongest is when parents are finishing with their kids so they have a little extra money. That could be anywhere from the mid-40s to the 60s. That’s a moving target, though, because times are changing. That’s what is really neat about this industry. You can’t just put your thumb on one thing. If you do, you’ll be grossly mistaken.”

Whatever their backgrounds, when it comes to modifying and accessorizing, today’s hot-rod consumers tend toward components that give their vintage vehicles the ride and handling characteristics of modern cars while retaining the aesthetic stylings of the bygone eras they’ve come to cherish.

“Electronic fuel injection has made significant inroads into rodding and continues to grow in popularity,” Brennan said. “Supercharged engines—especially the modern modular motors offered by Chevy and Ford—are easily benefiting from this horsepower adder. Interior accessories such as air conditioning, custom gauges, steering columns and wheels are high-priority items. Disc brakes have long been a popular upgrade to a hot rod and continue to be so, but we are now seeing bigger disc-brake packages to go along with the plus-size wheels that are continuing in popularity.”

According to Brennan, replacement chassis for ’50s and ’60s cars are also hugely popular.

“These chassis offer modern IFS and IRS, steering, shock absorbers, brake packages and incredible wheel and tire packages,” he explained. “Some things never change, however, so that brings us to the traditional hot-rod look and parts that are still going strong. We see billet making some light inroads back into rodding, except that this time, builders are distressing the metal so that it has an old-time look but modern usage because the modern materials can be easily manipulated.”

In fact, “easy” is an overall keyword for today’s enthusiasts, said McLeod.

“People expect for a part to fit better and work easier, with less tweaking,” he said. “So you see more R&D time and manufacturers getting more sophisticated with making parts. Everybody’s changing to where it’s bolt-in. It’s no different in the gauge business, the air-conditioning business, the suspension business. We have to make our parts easier and easier, and the customer demands more.”

To See and Be Seen

Ultimately, however, hot rodding is still about seeing and being seen. To that end, it remains an event-oriented hobby.

“The indoor car show has bounced back from the doldrums brought on by the lagging economy, and we are now seeing more life in the weekend rod run, too,” said Brennan. “This summer will tell us a great deal about the strength of the hobby and the interest in outdoor events.”

“In my opinion, it brings what our industry is to a higher number of people,” he said. “Are all of them going to get hooked and do the same things that the gearheads are doing? No, absolutely not. But it brings an interest to us, and none of that hurts.”

But McLeod emphasized that assuring the segment’s future health goes far beyond attracting consumers.

“In the HRIA, we’re trying to build a bridge for people looking to get into the industry and for people looking for them to come in,” he said. “Our biggest initiative is futures in hot rodding, and not just the youth. How we do that is constant communication and education. We just never stop that. For example, you might not be a gearhead, but you’re a whiz at math. We need accountants, too. If you’re passionate about cars, there’s probably a home someplace for you.”

In the end, he said, hot rodding remains strong, but to leverage its growth, aftermarket businesses need to pay attention, listen to customers, and help shape trends through SEMA programs and initiatives.

“We’ll become stronger as an industry if we continue to do that,” he concluded. “We simply cannot segregate and separate. I think that the slow, steady growth that most of our businesses have seen is going to continue. And I think it will be a healthier growth than we actually saw before 2008–2009, when things were rocketing and everybody was so busy growing and grabbing.”

SEMA News—June 2015

BUSINESS
By Mike Imlay

Today’s Hot-Rod Market

Legacy Stylings Meet New Technologies

The automotive aftermarket owes quite a bit to hot rodders. While, technically, the industry existed prior to the street scene of the ’50s, it was hot rodders who sparked the explosion of innovative performance and appearance products that now characterize the heart and soul of the automotive specialty-equipment market.

They made tinkering with, modifying and personalizing cars cool, catapulting the industry into the $33-billion powerhouse it is today. And although the industry has since grown and broadened to encompass a dizzying array of products and trends in countless categories, hot rodding has hardly faded from the scene.

“Our buyers’ survey indicates that the 2014 SEMA Show’s Hot Rod Alley was the most visited area of the Show, with 83% of buyers reporting that they went there in search of products and trends,” said Tom Gattuso, SEMA director of trade shows. “In fact, from among our 17 Show categories, street-rod and custom-car products ranked fifth in the number of scans. With such a large number of new products introduced at the Show, the hot-rod market remains obviously strong.”

Classic Numbers

For today’s aftermarket, hot rodding is most often about the restoration or modification of classic cars, and SEMA market research into classic-car consumers and their buying habits reveals some interesting trends. First, the restoration parts market has finally seen a “bounce back” during the past two years after several years of recessional decline, with overall retail sales in the category now reaching $1.44 billion. Meanwhile, the street-rod and custom niche weathered the downturn much better, continuing a decade-long incremental growth trend that has now reached $1.36 billion in sales. While SEMA’s research shows that 32% of classic-car consumers seek to restore their vehicles to original condition, 19% say they modify their cars for greater speed and horsepower, while 15% primarily seek to personalize their vehicles.

“Driven by core enthusiast groups, the street rod and custom and restoration niches have shown mild but steady growth over the last three years,” summarized Gavin Knapp, SEMA senior manager, market research. “Restoration buyers are drawn to accessory and appearance products, while street rod owners are more likely to purchase performance parts. While not affected by fluctuations in new-vehicle sales, these categories are constrained by the availability of classic cars and trucks for modification.”

In the realm of actual products purchased, intake, fuel and exhaust products continue to lead the pack, with engine accessories coming in a close second. Chassis and suspension parts and wheels are not far behind (see chart below). When buying their accessories, classic-car consumers still get a slightly larger percentage of them from mail-order operations and catalogs (20.9%) over independent specialty parts stores or garages (19.4%) and auto chain stores (17.3%). Consumers are eclectic in their sources for parts purchase information, ranking the Internet first at 47.4%, with a near even split for magazines (38.8%) and car events (37.8%) respectively.

While these numbers help get a handle on the marketplace, John McLeod, owner of Classic Instruments and chairman of SEMA’s Hot Rod Industry Alliance (HRIA) council, noted that pinning down precise characteristics of the niche remains elusive, since the true definition of hot rodding has been “getting grayed” for some time now.

“It’s anything that you want to name it,” he said. “It’s anybody who has a passion or an interest in a vehicle that they’re personalizing, changing and enjoying. Quite honestly, my personal opinion is that anyone who’s playing with anything is welcome in our group.”

He added that the restomod trend remains currently strong with consumers increasingly searching for products that bring contemporary technologies and conveniences to their project vehicles while maintaining “that old look.”

“The tri-fives and ’50s cars are still hugely popular,” he continued. “But we’re also starting to see the ’60s come in, the Camaros and Mustangs. The musclecar era has been [popular] for a while, but it’s really hooking in now, and we’re even starting to see it go a little bit later with the late ’60s and early ’70s. What was strange or odd is cool. The musclecar is still a strong market, and there’s tons of variety there. And trucks—all trucks—because there are tons of them, they’re easier to work on, relatively inexpensive and easy to get. I see that whole market really growing by leaps and bounds.”

“There’s little doubt that more cars are being built today than in years past, especially from the ’50s and ’60s,” said Brian Brennan, TEN street-rod group director and editor of Street Rodder magazine, which remains dedicated to covering the hobby from its early-era cars to its post-’48 trends. “A hot rodder is a hot rodder, and while these times are different—and as such there are differences in tastes and build styles—the more I speak with younger rodders, the more I realize that the same cars from all the eras that I like, they like, too, but put their own spin on the hobby.”

Who’s Buying What?

Brennan and McLeod agreed that while hot-rod consumers typically skew older and decidedly male, a good number of young enthusiasts are still being drawn into the hobby through the media and car events.

“What’s interesting here is that there is no doubt there is a ‘graying’ of the industry continuing, but we are seeing more and more 35- to 45-year-olds gaining entrance into the hobby,” Brennan said. “It has to be genetic, but gearheads are born into every generation. The more dads—and moms—bring their youngun’s to events, the more the hot-rod gene is passed down from generation to generation.”

McLeod also sees today’s hot-rodding demographic broadening significantly.

“It used to be more predominately male, but we’re seeing a huge female increase, and all ages,” he said. “It really is from high-school age up to the 70s or 80s. Obviously, where we see the market strongest is when parents are finishing with their kids so they have a little extra money. That could be anywhere from the mid-40s to the 60s. That’s a moving target, though, because times are changing. That’s what is really neat about this industry. You can’t just put your thumb on one thing. If you do, you’ll be grossly mistaken.”

Whatever their backgrounds, when it comes to modifying and accessorizing, today’s hot-rod consumers tend toward components that give their vintage vehicles the ride and handling characteristics of modern cars while retaining the aesthetic stylings of the bygone eras they’ve come to cherish.

“Electronic fuel injection has made significant inroads into rodding and continues to grow in popularity,” Brennan said. “Supercharged engines—especially the modern modular motors offered by Chevy and Ford—are easily benefiting from this horsepower adder. Interior accessories such as air conditioning, custom gauges, steering columns and wheels are high-priority items. Disc brakes have long been a popular upgrade to a hot rod and continue to be so, but we are now seeing bigger disc-brake packages to go along with the plus-size wheels that are continuing in popularity.”

According to Brennan, replacement chassis for ’50s and ’60s cars are also hugely popular.

“These chassis offer modern IFS and IRS, steering, shock absorbers, brake packages and incredible wheel and tire packages,” he explained. “Some things never change, however, so that brings us to the traditional hot-rod look and parts that are still going strong. We see billet making some light inroads back into rodding, except that this time, builders are distressing the metal so that it has an old-time look but modern usage because the modern materials can be easily manipulated.”

In fact, “easy” is an overall keyword for today’s enthusiasts, said McLeod.

“People expect for a part to fit better and work easier, with less tweaking,” he said. “So you see more R&D time and manufacturers getting more sophisticated with making parts. Everybody’s changing to where it’s bolt-in. It’s no different in the gauge business, the air-conditioning business, the suspension business. We have to make our parts easier and easier, and the customer demands more.”

To See and Be Seen

Ultimately, however, hot rodding is still about seeing and being seen. To that end, it remains an event-oriented hobby.

“The indoor car show has bounced back from the doldrums brought on by the lagging economy, and we are now seeing more life in the weekend rod run, too,” said Brennan. “This summer will tell us a great deal about the strength of the hobby and the interest in outdoor events.”

“In my opinion, it brings what our industry is to a higher number of people,” he said. “Are all of them going to get hooked and do the same things that the gearheads are doing? No, absolutely not. But it brings an interest to us, and none of that hurts.”

But McLeod emphasized that assuring the segment’s future health goes far beyond attracting consumers.

“In the HRIA, we’re trying to build a bridge for people looking to get into the industry and for people looking for them to come in,” he said. “Our biggest initiative is futures in hot rodding, and not just the youth. How we do that is constant communication and education. We just never stop that. For example, you might not be a gearhead, but you’re a whiz at math. We need accountants, too. If you’re passionate about cars, there’s probably a home someplace for you.”

In the end, he said, hot rodding remains strong, but to leverage its growth, aftermarket businesses need to pay attention, listen to customers, and help shape trends through SEMA programs and initiatives.

“We’ll become stronger as an industry if we continue to do that,” he concluded. “We simply cannot segregate and separate. I think that the slow, steady growth that most of our businesses have seen is going to continue. And I think it will be a healthier growth than we actually saw before 2008–2009, when things were rocketing and everybody was so busy growing and grabbing.”

SEMA News—June 2015

BUSINESS
By Mike Imlay

Today’s Hot-Rod Market

Legacy Stylings Meet New Technologies

The automotive aftermarket owes quite a bit to hot rodders. While, technically, the industry existed prior to the street scene of the ’50s, it was hot rodders who sparked the explosion of innovative performance and appearance products that now characterize the heart and soul of the automotive specialty-equipment market.

They made tinkering with, modifying and personalizing cars cool, catapulting the industry into the $33-billion powerhouse it is today. And although the industry has since grown and broadened to encompass a dizzying array of products and trends in countless categories, hot rodding has hardly faded from the scene.

“Our buyers’ survey indicates that the 2014 SEMA Show’s Hot Rod Alley was the most visited area of the Show, with 83% of buyers reporting that they went there in search of products and trends,” said Tom Gattuso, SEMA director of trade shows. “In fact, from among our 17 Show categories, street-rod and custom-car products ranked fifth in the number of scans. With such a large number of new products introduced at the Show, the hot-rod market remains obviously strong.”

Classic Numbers

For today’s aftermarket, hot rodding is most often about the restoration or modification of classic cars, and SEMA market research into classic-car consumers and their buying habits reveals some interesting trends. First, the restoration parts market has finally seen a “bounce back” during the past two years after several years of recessional decline, with overall retail sales in the category now reaching $1.44 billion. Meanwhile, the street-rod and custom niche weathered the downturn much better, continuing a decade-long incremental growth trend that has now reached $1.36 billion in sales. While SEMA’s research shows that 32% of classic-car consumers seek to restore their vehicles to original condition, 19% say they modify their cars for greater speed and horsepower, while 15% primarily seek to personalize their vehicles.

“Driven by core enthusiast groups, the street rod and custom and restoration niches have shown mild but steady growth over the last three years,” summarized Gavin Knapp, SEMA senior manager, market research. “Restoration buyers are drawn to accessory and appearance products, while street rod owners are more likely to purchase performance parts. While not affected by fluctuations in new-vehicle sales, these categories are constrained by the availability of classic cars and trucks for modification.”

In the realm of actual products purchased, intake, fuel and exhaust products continue to lead the pack, with engine accessories coming in a close second. Chassis and suspension parts and wheels are not far behind (see chart below). When buying their accessories, classic-car consumers still get a slightly larger percentage of them from mail-order operations and catalogs (20.9%) over independent specialty parts stores or garages (19.4%) and auto chain stores (17.3%). Consumers are eclectic in their sources for parts purchase information, ranking the Internet first at 47.4%, with a near even split for magazines (38.8%) and car events (37.8%) respectively.

While these numbers help get a handle on the marketplace, John McLeod, owner of Classic Instruments and chairman of SEMA’s Hot Rod Industry Alliance (HRIA) council, noted that pinning down precise characteristics of the niche remains elusive, since the true definition of hot rodding has been “getting grayed” for some time now.

“It’s anything that you want to name it,” he said. “It’s anybody who has a passion or an interest in a vehicle that they’re personalizing, changing and enjoying. Quite honestly, my personal opinion is that anyone who’s playing with anything is welcome in our group.”

He added that the restomod trend remains currently strong with consumers increasingly searching for products that bring contemporary technologies and conveniences to their project vehicles while maintaining “that old look.”

“The tri-fives and ’50s cars are still hugely popular,” he continued. “But we’re also starting to see the ’60s come in, the Camaros and Mustangs. The musclecar era has been [popular] for a while, but it’s really hooking in now, and we’re even starting to see it go a little bit later with the late ’60s and early ’70s. What was strange or odd is cool. The musclecar is still a strong market, and there’s tons of variety there. And trucks—all trucks—because there are tons of them, they’re easier to work on, relatively inexpensive and easy to get. I see that whole market really growing by leaps and bounds.”

“There’s little doubt that more cars are being built today than in years past, especially from the ’50s and ’60s,” said Brian Brennan, TEN street-rod group director and editor of Street Rodder magazine, which remains dedicated to covering the hobby from its early-era cars to its post-’48 trends. “A hot rodder is a hot rodder, and while these times are different—and as such there are differences in tastes and build styles—the more I speak with younger rodders, the more I realize that the same cars from all the eras that I like, they like, too, but put their own spin on the hobby.”

Who’s Buying What?

Brennan and McLeod agreed that while hot-rod consumers typically skew older and decidedly male, a good number of young enthusiasts are still being drawn into the hobby through the media and car events.

“What’s interesting here is that there is no doubt there is a ‘graying’ of the industry continuing, but we are seeing more and more 35- to 45-year-olds gaining entrance into the hobby,” Brennan said. “It has to be genetic, but gearheads are born into every generation. The more dads—and moms—bring their youngun’s to events, the more the hot-rod gene is passed down from generation to generation.”

McLeod also sees today’s hot-rodding demographic broadening significantly.

“It used to be more predominately male, but we’re seeing a huge female increase, and all ages,” he said. “It really is from high-school age up to the 70s or 80s. Obviously, where we see the market strongest is when parents are finishing with their kids so they have a little extra money. That could be anywhere from the mid-40s to the 60s. That’s a moving target, though, because times are changing. That’s what is really neat about this industry. You can’t just put your thumb on one thing. If you do, you’ll be grossly mistaken.”

Whatever their backgrounds, when it comes to modifying and accessorizing, today’s hot-rod consumers tend toward components that give their vintage vehicles the ride and handling characteristics of modern cars while retaining the aesthetic stylings of the bygone eras they’ve come to cherish.

“Electronic fuel injection has made significant inroads into rodding and continues to grow in popularity,” Brennan said. “Supercharged engines—especially the modern modular motors offered by Chevy and Ford—are easily benefiting from this horsepower adder. Interior accessories such as air conditioning, custom gauges, steering columns and wheels are high-priority items. Disc brakes have long been a popular upgrade to a hot rod and continue to be so, but we are now seeing bigger disc-brake packages to go along with the plus-size wheels that are continuing in popularity.”

According to Brennan, replacement chassis for ’50s and ’60s cars are also hugely popular.

“These chassis offer modern IFS and IRS, steering, shock absorbers, brake packages and incredible wheel and tire packages,” he explained. “Some things never change, however, so that brings us to the traditional hot-rod look and parts that are still going strong. We see billet making some light inroads back into rodding, except that this time, builders are distressing the metal so that it has an old-time look but modern usage because the modern materials can be easily manipulated.”

In fact, “easy” is an overall keyword for today’s enthusiasts, said McLeod.

“People expect for a part to fit better and work easier, with less tweaking,” he said. “So you see more R&D time and manufacturers getting more sophisticated with making parts. Everybody’s changing to where it’s bolt-in. It’s no different in the gauge business, the air-conditioning business, the suspension business. We have to make our parts easier and easier, and the customer demands more.”

To See and Be Seen

Ultimately, however, hot rodding is still about seeing and being seen. To that end, it remains an event-oriented hobby.

“The indoor car show has bounced back from the doldrums brought on by the lagging economy, and we are now seeing more life in the weekend rod run, too,” said Brennan. “This summer will tell us a great deal about the strength of the hobby and the interest in outdoor events.”

“In my opinion, it brings what our industry is to a higher number of people,” he said. “Are all of them going to get hooked and do the same things that the gearheads are doing? No, absolutely not. But it brings an interest to us, and none of that hurts.”

But McLeod emphasized that assuring the segment’s future health goes far beyond attracting consumers.

“In the HRIA, we’re trying to build a bridge for people looking to get into the industry and for people looking for them to come in,” he said. “Our biggest initiative is futures in hot rodding, and not just the youth. How we do that is constant communication and education. We just never stop that. For example, you might not be a gearhead, but you’re a whiz at math. We need accountants, too. If you’re passionate about cars, there’s probably a home someplace for you.”

In the end, he said, hot rodding remains strong, but to leverage its growth, aftermarket businesses need to pay attention, listen to customers, and help shape trends through SEMA programs and initiatives.

“We’ll become stronger as an industry if we continue to do that,” he concluded. “We simply cannot segregate and separate. I think that the slow, steady growth that most of our businesses have seen is going to continue. And I think it will be a healthier growth than we actually saw before 2008–2009, when things were rocketing and everybody was so busy growing and grabbing.”

SEMA News—June 2015

BUSINESS
By Mike Imlay

Today’s Hot-Rod Market

Legacy Stylings Meet New Technologies

The automotive aftermarket owes quite a bit to hot rodders. While, technically, the industry existed prior to the street scene of the ’50s, it was hot rodders who sparked the explosion of innovative performance and appearance products that now characterize the heart and soul of the automotive specialty-equipment market.

They made tinkering with, modifying and personalizing cars cool, catapulting the industry into the $33-billion powerhouse it is today. And although the industry has since grown and broadened to encompass a dizzying array of products and trends in countless categories, hot rodding has hardly faded from the scene.

“Our buyers’ survey indicates that the 2014 SEMA Show’s Hot Rod Alley was the most visited area of the Show, with 83% of buyers reporting that they went there in search of products and trends,” said Tom Gattuso, SEMA director of trade shows. “In fact, from among our 17 Show categories, street-rod and custom-car products ranked fifth in the number of scans. With such a large number of new products introduced at the Show, the hot-rod market remains obviously strong.”

Classic Numbers

For today’s aftermarket, hot rodding is most often about the restoration or modification of classic cars, and SEMA market research into classic-car consumers and their buying habits reveals some interesting trends. First, the restoration parts market has finally seen a “bounce back” during the past two years after several years of recessional decline, with overall retail sales in the category now reaching $1.44 billion. Meanwhile, the street-rod and custom niche weathered the downturn much better, continuing a decade-long incremental growth trend that has now reached $1.36 billion in sales. While SEMA’s research shows that 32% of classic-car consumers seek to restore their vehicles to original condition, 19% say they modify their cars for greater speed and horsepower, while 15% primarily seek to personalize their vehicles.

“Driven by core enthusiast groups, the street rod and custom and restoration niches have shown mild but steady growth over the last three years,” summarized Gavin Knapp, SEMA senior manager, market research. “Restoration buyers are drawn to accessory and appearance products, while street rod owners are more likely to purchase performance parts. While not affected by fluctuations in new-vehicle sales, these categories are constrained by the availability of classic cars and trucks for modification.”

In the realm of actual products purchased, intake, fuel and exhaust products continue to lead the pack, with engine accessories coming in a close second. Chassis and suspension parts and wheels are not far behind (see chart below). When buying their accessories, classic-car consumers still get a slightly larger percentage of them from mail-order operations and catalogs (20.9%) over independent specialty parts stores or garages (19.4%) and auto chain stores (17.3%). Consumers are eclectic in their sources for parts purchase information, ranking the Internet first at 47.4%, with a near even split for magazines (38.8%) and car events (37.8%) respectively.

While these numbers help get a handle on the marketplace, John McLeod, owner of Classic Instruments and chairman of SEMA’s Hot Rod Industry Alliance (HRIA) council, noted that pinning down precise characteristics of the niche remains elusive, since the true definition of hot rodding has been “getting grayed” for some time now.

“It’s anything that you want to name it,” he said. “It’s anybody who has a passion or an interest in a vehicle that they’re personalizing, changing and enjoying. Quite honestly, my personal opinion is that anyone who’s playing with anything is welcome in our group.”

He added that the restomod trend remains currently strong with consumers increasingly searching for products that bring contemporary technologies and conveniences to their project vehicles while maintaining “that old look.”

“The tri-fives and ’50s cars are still hugely popular,” he continued. “But we’re also starting to see the ’60s come in, the Camaros and Mustangs. The musclecar era has been [popular] for a while, but it’s really hooking in now, and we’re even starting to see it go a little bit later with the late ’60s and early ’70s. What was strange or odd is cool. The musclecar is still a strong market, and there’s tons of variety there. And trucks—all trucks—because there are tons of them, they’re easier to work on, relatively inexpensive and easy to get. I see that whole market really growing by leaps and bounds.”

“There’s little doubt that more cars are being built today than in years past, especially from the ’50s and ’60s,” said Brian Brennan, TEN street-rod group director and editor of Street Rodder magazine, which remains dedicated to covering the hobby from its early-era cars to its post-’48 trends. “A hot rodder is a hot rodder, and while these times are different—and as such there are differences in tastes and build styles—the more I speak with younger rodders, the more I realize that the same cars from all the eras that I like, they like, too, but put their own spin on the hobby.”

Who’s Buying What?

Brennan and McLeod agreed that while hot-rod consumers typically skew older and decidedly male, a good number of young enthusiasts are still being drawn into the hobby through the media and car events.

“What’s interesting here is that there is no doubt there is a ‘graying’ of the industry continuing, but we are seeing more and more 35- to 45-year-olds gaining entrance into the hobby,” Brennan said. “It has to be genetic, but gearheads are born into every generation. The more dads—and moms—bring their youngun’s to events, the more the hot-rod gene is passed down from generation to generation.”

McLeod also sees today’s hot-rodding demographic broadening significantly.

“It used to be more predominately male, but we’re seeing a huge female increase, and all ages,” he said. “It really is from high-school age up to the 70s or 80s. Obviously, where we see the market strongest is when parents are finishing with their kids so they have a little extra money. That could be anywhere from the mid-40s to the 60s. That’s a moving target, though, because times are changing. That’s what is really neat about this industry. You can’t just put your thumb on one thing. If you do, you’ll be grossly mistaken.”

Whatever their backgrounds, when it comes to modifying and accessorizing, today’s hot-rod consumers tend toward components that give their vintage vehicles the ride and handling characteristics of modern cars while retaining the aesthetic stylings of the bygone eras they’ve come to cherish.

“Electronic fuel injection has made significant inroads into rodding and continues to grow in popularity,” Brennan said. “Supercharged engines—especially the modern modular motors offered by Chevy and Ford—are easily benefiting from this horsepower adder. Interior accessories such as air conditioning, custom gauges, steering columns and wheels are high-priority items. Disc brakes have long been a popular upgrade to a hot rod and continue to be so, but we are now seeing bigger disc-brake packages to go along with the plus-size wheels that are continuing in popularity.”

According to Brennan, replacement chassis for ’50s and ’60s cars are also hugely popular.

“These chassis offer modern IFS and IRS, steering, shock absorbers, brake packages and incredible wheel and tire packages,” he explained. “Some things never change, however, so that brings us to the traditional hot-rod look and parts that are still going strong. We see billet making some light inroads back into rodding, except that this time, builders are distressing the metal so that it has an old-time look but modern usage because the modern materials can be easily manipulated.”

In fact, “easy” is an overall keyword for today’s enthusiasts, said McLeod.

“People expect for a part to fit better and work easier, with less tweaking,” he said. “So you see more R&D time and manufacturers getting more sophisticated with making parts. Everybody’s changing to where it’s bolt-in. It’s no different in the gauge business, the air-conditioning business, the suspension business. We have to make our parts easier and easier, and the customer demands more.”

To See and Be Seen

Ultimately, however, hot rodding is still about seeing and being seen. To that end, it remains an event-oriented hobby.

“The indoor car show has bounced back from the doldrums brought on by the lagging economy, and we are now seeing more life in the weekend rod run, too,” said Brennan. “This summer will tell us a great deal about the strength of the hobby and the interest in outdoor events.”

“In my opinion, it brings what our industry is to a higher number of people,” he said. “Are all of them going to get hooked and do the same things that the gearheads are doing? No, absolutely not. But it brings an interest to us, and none of that hurts.”

But McLeod emphasized that assuring the segment’s future health goes far beyond attracting consumers.

“In the HRIA, we’re trying to build a bridge for people looking to get into the industry and for people looking for them to come in,” he said. “Our biggest initiative is futures in hot rodding, and not just the youth. How we do that is constant communication and education. We just never stop that. For example, you might not be a gearhead, but you’re a whiz at math. We need accountants, too. If you’re passionate about cars, there’s probably a home someplace for you.”

In the end, he said, hot rodding remains strong, but to leverage its growth, aftermarket businesses need to pay attention, listen to customers, and help shape trends through SEMA programs and initiatives.

“We’ll become stronger as an industry if we continue to do that,” he concluded. “We simply cannot segregate and separate. I think that the slow, steady growth that most of our businesses have seen is going to continue. And I think it will be a healthier growth than we actually saw before 2008–2009, when things were rocketing and everybody was so busy growing and grabbing.”

SEMA News—June 2015

BUSINESS
By Mike Imlay

Today’s Hot-Rod Market

Legacy Stylings Meet New Technologies

The automotive aftermarket owes quite a bit to hot rodders. While, technically, the industry existed prior to the street scene of the ’50s, it was hot rodders who sparked the explosion of innovative performance and appearance products that now characterize the heart and soul of the automotive specialty-equipment market.

They made tinkering with, modifying and personalizing cars cool, catapulting the industry into the $33-billion powerhouse it is today. And although the industry has since grown and broadened to encompass a dizzying array of products and trends in countless categories, hot rodding has hardly faded from the scene.

“Our buyers’ survey indicates that the 2014 SEMA Show’s Hot Rod Alley was the most visited area of the Show, with 83% of buyers reporting that they went there in search of products and trends,” said Tom Gattuso, SEMA director of trade shows. “In fact, from among our 17 Show categories, street-rod and custom-car products ranked fifth in the number of scans. With such a large number of new products introduced at the Show, the hot-rod market remains obviously strong.”

Classic Numbers

For today’s aftermarket, hot rodding is most often about the restoration or modification of classic cars, and SEMA market research into classic-car consumers and their buying habits reveals some interesting trends. First, the restoration parts market has finally seen a “bounce back” during the past two years after several years of recessional decline, with overall retail sales in the category now reaching $1.44 billion. Meanwhile, the street-rod and custom niche weathered the downturn much better, continuing a decade-long incremental growth trend that has now reached $1.36 billion in sales. While SEMA’s research shows that 32% of classic-car consumers seek to restore their vehicles to original condition, 19% say they modify their cars for greater speed and horsepower, while 15% primarily seek to personalize their vehicles.

“Driven by core enthusiast groups, the street rod and custom and restoration niches have shown mild but steady growth over the last three years,” summarized Gavin Knapp, SEMA senior manager, market research. “Restoration buyers are drawn to accessory and appearance products, while street rod owners are more likely to purchase performance parts. While not affected by fluctuations in new-vehicle sales, these categories are constrained by the availability of classic cars and trucks for modification.”

In the realm of actual products purchased, intake, fuel and exhaust products continue to lead the pack, with engine accessories coming in a close second. Chassis and suspension parts and wheels are not far behind (see chart below). When buying their accessories, classic-car consumers still get a slightly larger percentage of them from mail-order operations and catalogs (20.9%) over independent specialty parts stores or garages (19.4%) and auto chain stores (17.3%). Consumers are eclectic in their sources for parts purchase information, ranking the Internet first at 47.4%, with a near even split for magazines (38.8%) and car events (37.8%) respectively.

While these numbers help get a handle on the marketplace, John McLeod, owner of Classic Instruments and chairman of SEMA’s Hot Rod Industry Alliance (HRIA) council, noted that pinning down precise characteristics of the niche remains elusive, since the true definition of hot rodding has been “getting grayed” for some time now.

“It’s anything that you want to name it,” he said. “It’s anybody who has a passion or an interest in a vehicle that they’re personalizing, changing and enjoying. Quite honestly, my personal opinion is that anyone who’s playing with anything is welcome in our group.”

He added that the restomod trend remains currently strong with consumers increasingly searching for products that bring contemporary technologies and conveniences to their project vehicles while maintaining “that old look.”

“The tri-fives and ’50s cars are still hugely popular,” he continued. “But we’re also starting to see the ’60s come in, the Camaros and Mustangs. The musclecar era has been [popular] for a while, but it’s really hooking in now, and we’re even starting to see it go a little bit later with the late ’60s and early ’70s. What was strange or odd is cool. The musclecar is still a strong market, and there’s tons of variety there. And trucks—all trucks—because there are tons of them, they’re easier to work on, relatively inexpensive and easy to get. I see that whole market really growing by leaps and bounds.”

“There’s little doubt that more cars are being built today than in years past, especially from the ’50s and ’60s,” said Brian Brennan, TEN street-rod group director and editor of Street Rodder magazine, which remains dedicated to covering the hobby from its early-era cars to its post-’48 trends. “A hot rodder is a hot rodder, and while these times are different—and as such there are differences in tastes and build styles—the more I speak with younger rodders, the more I realize that the same cars from all the eras that I like, they like, too, but put their own spin on the hobby.”

Who’s Buying What?

Brennan and McLeod agreed that while hot-rod consumers typically skew older and decidedly male, a good number of young enthusiasts are still being drawn into the hobby through the media and car events.

“What’s interesting here is that there is no doubt there is a ‘graying’ of the industry continuing, but we are seeing more and more 35- to 45-year-olds gaining entrance into the hobby,” Brennan said. “It has to be genetic, but gearheads are born into every generation. The more dads—and moms—bring their youngun’s to events, the more the hot-rod gene is passed down from generation to generation.”

McLeod also sees today’s hot-rodding demographic broadening significantly.

“It used to be more predominately male, but we’re seeing a huge female increase, and all ages,” he said. “It really is from high-school age up to the 70s or 80s. Obviously, where we see the market strongest is when parents are finishing with their kids so they have a little extra money. That could be anywhere from the mid-40s to the 60s. That’s a moving target, though, because times are changing. That’s what is really neat about this industry. You can’t just put your thumb on one thing. If you do, you’ll be grossly mistaken.”

Whatever their backgrounds, when it comes to modifying and accessorizing, today’s hot-rod consumers tend toward components that give their vintage vehicles the ride and handling characteristics of modern cars while retaining the aesthetic stylings of the bygone eras they’ve come to cherish.

“Electronic fuel injection has made significant inroads into rodding and continues to grow in popularity,” Brennan said. “Supercharged engines—especially the modern modular motors offered by Chevy and Ford—are easily benefiting from this horsepower adder. Interior accessories such as air conditioning, custom gauges, steering columns and wheels are high-priority items. Disc brakes have long been a popular upgrade to a hot rod and continue to be so, but we are now seeing bigger disc-brake packages to go along with the plus-size wheels that are continuing in popularity.”

According to Brennan, replacement chassis for ’50s and ’60s cars are also hugely popular.

“These chassis offer modern IFS and IRS, steering, shock absorbers, brake packages and incredible wheel and tire packages,” he explained. “Some things never change, however, so that brings us to the traditional hot-rod look and parts that are still going strong. We see billet making some light inroads back into rodding, except that this time, builders are distressing the metal so that it has an old-time look but modern usage because the modern materials can be easily manipulated.”

In fact, “easy” is an overall keyword for today’s enthusiasts, said McLeod.

“People expect for a part to fit better and work easier, with less tweaking,” he said. “So you see more R&D time and manufacturers getting more sophisticated with making parts. Everybody’s changing to where it’s bolt-in. It’s no different in the gauge business, the air-conditioning business, the suspension business. We have to make our parts easier and easier, and the customer demands more.”

To See and Be Seen

Ultimately, however, hot rodding is still about seeing and being seen. To that end, it remains an event-oriented hobby.

“The indoor car show has bounced back from the doldrums brought on by the lagging economy, and we are now seeing more life in the weekend rod run, too,” said Brennan. “This summer will tell us a great deal about the strength of the hobby and the interest in outdoor events.”

“In my opinion, it brings what our industry is to a higher number of people,” he said. “Are all of them going to get hooked and do the same things that the gearheads are doing? No, absolutely not. But it brings an interest to us, and none of that hurts.”

But McLeod emphasized that assuring the segment’s future health goes far beyond attracting consumers.

“In the HRIA, we’re trying to build a bridge for people looking to get into the industry and for people looking for them to come in,” he said. “Our biggest initiative is futures in hot rodding, and not just the youth. How we do that is constant communication and education. We just never stop that. For example, you might not be a gearhead, but you’re a whiz at math. We need accountants, too. If you’re passionate about cars, there’s probably a home someplace for you.”

In the end, he said, hot rodding remains strong, but to leverage its growth, aftermarket businesses need to pay attention, listen to customers, and help shape trends through SEMA programs and initiatives.

“We’ll become stronger as an industry if we continue to do that,” he concluded. “We simply cannot segregate and separate. I think that the slow, steady growth that most of our businesses have seen is going to continue. And I think it will be a healthier growth than we actually saw before 2008–2009, when things were rocketing and everybody was so busy growing and grabbing.”

SEMA News—June 2015

BUSINESS
By Mike Imlay

Today’s Hot-Rod Market

Legacy Stylings Meet New Technologies

The automotive aftermarket owes quite a bit to hot rodders. While, technically, the industry existed prior to the street scene of the ’50s, it was hot rodders who sparked the explosion of innovative performance and appearance products that now characterize the heart and soul of the automotive specialty-equipment market.

They made tinkering with, modifying and personalizing cars cool, catapulting the industry into the $33-billion powerhouse it is today. And although the industry has since grown and broadened to encompass a dizzying array of products and trends in countless categories, hot rodding has hardly faded from the scene.

“Our buyers’ survey indicates that the 2014 SEMA Show’s Hot Rod Alley was the most visited area of the Show, with 83% of buyers reporting that they went there in search of products and trends,” said Tom Gattuso, SEMA director of trade shows. “In fact, from among our 17 Show categories, street-rod and custom-car products ranked fifth in the number of scans. With such a large number of new products introduced at the Show, the hot-rod market remains obviously strong.”

Classic Numbers

For today’s aftermarket, hot rodding is most often about the restoration or modification of classic cars, and SEMA market research into classic-car consumers and their buying habits reveals some interesting trends. First, the restoration parts market has finally seen a “bounce back” during the past two years after several years of recessional decline, with overall retail sales in the category now reaching $1.44 billion. Meanwhile, the street-rod and custom niche weathered the downturn much better, continuing a decade-long incremental growth trend that has now reached $1.36 billion in sales. While SEMA’s research shows that 32% of classic-car consumers seek to restore their vehicles to original condition, 19% say they modify their cars for greater speed and horsepower, while 15% primarily seek to personalize their vehicles.

“Driven by core enthusiast groups, the street rod and custom and restoration niches have shown mild but steady growth over the last three years,” summarized Gavin Knapp, SEMA senior manager, market research. “Restoration buyers are drawn to accessory and appearance products, while street rod owners are more likely to purchase performance parts. While not affected by fluctuations in new-vehicle sales, these categories are constrained by the availability of classic cars and trucks for modification.”

In the realm of actual products purchased, intake, fuel and exhaust products continue to lead the pack, with engine accessories coming in a close second. Chassis and suspension parts and wheels are not far behind (see chart below). When buying their accessories, classic-car consumers still get a slightly larger percentage of them from mail-order operations and catalogs (20.9%) over independent specialty parts stores or garages (19.4%) and auto chain stores (17.3%). Consumers are eclectic in their sources for parts purchase information, ranking the Internet first at 47.4%, with a near even split for magazines (38.8%) and car events (37.8%) respectively.

While these numbers help get a handle on the marketplace, John McLeod, owner of Classic Instruments and chairman of SEMA’s Hot Rod Industry Alliance (HRIA) council, noted that pinning down precise characteristics of the niche remains elusive, since the true definition of hot rodding has been “getting grayed” for some time now.

“It’s anything that you want to name it,” he said. “It’s anybody who has a passion or an interest in a vehicle that they’re personalizing, changing and enjoying. Quite honestly, my personal opinion is that anyone who’s playing with anything is welcome in our group.”

He added that the restomod trend remains currently strong with consumers increasingly searching for products that bring contemporary technologies and conveniences to their project vehicles while maintaining “that old look.”

“The tri-fives and ’50s cars are still hugely popular,” he continued. “But we’re also starting to see the ’60s come in, the Camaros and Mustangs. The musclecar era has been [popular] for a while, but it’s really hooking in now, and we’re even starting to see it go a little bit later with the late ’60s and early ’70s. What was strange or odd is cool. The musclecar is still a strong market, and there’s tons of variety there. And trucks—all trucks—because there are tons of them, they’re easier to work on, relatively inexpensive and easy to get. I see that whole market really growing by leaps and bounds.”

“There’s little doubt that more cars are being built today than in years past, especially from the ’50s and ’60s,” said Brian Brennan, TEN street-rod group director and editor of Street Rodder magazine, which remains dedicated to covering the hobby from its early-era cars to its post-’48 trends. “A hot rodder is a hot rodder, and while these times are different—and as such there are differences in tastes and build styles—the more I speak with younger rodders, the more I realize that the same cars from all the eras that I like, they like, too, but put their own spin on the hobby.”

Who’s Buying What?

Brennan and McLeod agreed that while hot-rod consumers typically skew older and decidedly male, a good number of young enthusiasts are still being drawn into the hobby through the media and car events.

“What’s interesting here is that there is no doubt there is a ‘graying’ of the industry continuing, but we are seeing more and more 35- to 45-year-olds gaining entrance into the hobby,” Brennan said. “It has to be genetic, but gearheads are born into every generation. The more dads—and moms—bring their youngun’s to events, the more the hot-rod gene is passed down from generation to generation.”

McLeod also sees today’s hot-rodding demographic broadening significantly.

“It used to be more predominately male, but we’re seeing a huge female increase, and all ages,” he said. “It really is from high-school age up to the 70s or 80s. Obviously, where we see the market strongest is when parents are finishing with their kids so they have a little extra money. That could be anywhere from the mid-40s to the 60s. That’s a moving target, though, because times are changing. That’s what is really neat about this industry. You can’t just put your thumb on one thing. If you do, you’ll be grossly mistaken.”

Whatever their backgrounds, when it comes to modifying and accessorizing, today’s hot-rod consumers tend toward components that give their vintage vehicles the ride and handling characteristics of modern cars while retaining the aesthetic stylings of the bygone eras they’ve come to cherish.

“Electronic fuel injection has made significant inroads into rodding and continues to grow in popularity,” Brennan said. “Supercharged engines—especially the modern modular motors offered by Chevy and Ford—are easily benefiting from this horsepower adder. Interior accessories such as air conditioning, custom gauges, steering columns and wheels are high-priority items. Disc brakes have long been a popular upgrade to a hot rod and continue to be so, but we are now seeing bigger disc-brake packages to go along with the plus-size wheels that are continuing in popularity.”

According to Brennan, replacement chassis for ’50s and ’60s cars are also hugely popular.

“These chassis offer modern IFS and IRS, steering, shock absorbers, brake packages and incredible wheel and tire packages,” he explained. “Some things never change, however, so that brings us to the traditional hot-rod look and parts that are still going strong. We see billet making some light inroads back into rodding, except that this time, builders are distressing the metal so that it has an old-time look but modern usage because the modern materials can be easily manipulated.”

In fact, “easy” is an overall keyword for today’s enthusiasts, said McLeod.

“People expect for a part to fit better and work easier, with less tweaking,” he said. “So you see more R&D time and manufacturers getting more sophisticated with making parts. Everybody’s changing to where it’s bolt-in. It’s no different in the gauge business, the air-conditioning business, the suspension business. We have to make our parts easier and easier, and the customer demands more.”

To See and Be Seen

Ultimately, however, hot rodding is still about seeing and being seen. To that end, it remains an event-oriented hobby.

“The indoor car show has bounced back from the doldrums brought on by the lagging economy, and we are now seeing more life in the weekend rod run, too,” said Brennan. “This summer will tell us a great deal about the strength of the hobby and the interest in outdoor events.”

“In my opinion, it brings what our industry is to a higher number of people,” he said. “Are all of them going to get hooked and do the same things that the gearheads are doing? No, absolutely not. But it brings an interest to us, and none of that hurts.”

But McLeod emphasized that assuring the segment’s future health goes far beyond attracting consumers.

“In the HRIA, we’re trying to build a bridge for people looking to get into the industry and for people looking for them to come in,” he said. “Our biggest initiative is futures in hot rodding, and not just the youth. How we do that is constant communication and education. We just never stop that. For example, you might not be a gearhead, but you’re a whiz at math. We need accountants, too. If you’re passionate about cars, there’s probably a home someplace for you.”

In the end, he said, hot rodding remains strong, but to leverage its growth, aftermarket businesses need to pay attention, listen to customers, and help shape trends through SEMA programs and initiatives.

“We’ll become stronger as an industry if we continue to do that,” he concluded. “We simply cannot segregate and separate. I think that the slow, steady growth that most of our businesses have seen is going to continue. And I think it will be a healthier growth than we actually saw before 2008–2009, when things were rocketing and everybody was so busy growing and grabbing.”

SEMA News—June 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

STATE UPDATE

Arkansas Miles Traveled Tax: Legislation to allow the state to implement a pilot program that charged drivers based on vehicle miles traveled was withdrawn by the bill’s sponsor after a public outcry in Arkansas. Under the measure, participants in the program would have been taxed 1.5 cents per each mile the subject vehicle traveled on Arkansas roadways. The bill could have created privacy concerns and penalized national efforts to create a more fuel-efficient vehicle fleet by taxing drivers based on vehicle mileage.

Florida Miles Traveled Tax: A Florida House subcommittee approved amended legislation that originally directed the state to undertake a study on the impact of implementing a system that charges drivers based on vehicle miles traveled (VMT). Under the amendment, the entire program has been deleted from the bill. However, a Florida Senate version of the bill has been approved by the Senate Transportation Committee and is pending in the Regulated Industries Committee. The bill provides that the Center for Urban Transportation, in consultation with the Florida Transportation Commission, would establish a pilot program to study the feasibility of implementing a system that charges drivers based on VMT. As gas tax revenues decrease due to hybrid and electric vehicle ownership, states are looking for new sources of funding for pet projects. The Senate bill allows the Center for Urban Transportation to spend up to $400,000 for the study and pilot project design and provides for the implementation of the pilot program in 2017.

Hawaii Ethanol: Legislation to remove the requirement that gasoline offered for sale in the state contain a percentage of ethanol was approved by the Hawaii Senate and sent to the House with a significant amendment. Under the amended bill, the effective date of the repeal would be July 1, 2050. The original date for the repeal was July 1, 2015. This amendment renders the bill almost useless to the thousands of older cars that are currently most negatively affected by ethanol blends. The bill will now be considered by two additional House committees. Currently, the state requires that gasoline sold in the state for use in motor vehicles contain 10% ethanol by volume.

Iowa Single License Plate: Legislation that would provide for the issuance of a single rear-mounted license plate for motor vehicles was approved by the House Transportation Committee and will next be considered in a vote by the full Iowa House of Representatives. The bill would protect the aesthetic contours of certain vehicles and relieve vehicle owners of the burden and expense of having to create mounting holes on some original bumpers. The measure would also save money, conserve resources and bring Iowa in line with other states that are moving to a single-plate requirement.

Kentucky Property Tax: Legislation to put in place a new and more beneficial valuation procedure for older vehicles was signed into law by Governor Steve Beshear. Under the new law, vehicles 20 years old or older would no longer be presumed to be in “original factory” or “classic” condition for purposes of the property tax. Original factory and classic vehicles are currently assessed as high-value collectibles. This measure instead provides three options for assessing the value of these vehicles. Under each option, the value of the vehicle would be reduced by 10% each year.

Maine Ethanol: In 2013, SAN-supported legislation to prohibit the sale and distribution of corn-based ethanol in Maine was signed into law. Under the new law, 10 other states or a number of states with a collective population of 30,000,000 would have to enact a similar prohibition before the Maine law could go into effect. This year, legislation has been introduced to amend the law to provide that this prohibition would take effect if only three other states have enacted laws that prohibit the sale of motor fuel containing corn-based ethanol.

Maryland Historic Vehicles: SEMA is opposing legislation to increase the age requirement for vehicles eligible for registration as “historic motor vehicles.” Under a bill approved by the House of Delegates, the age requirement would be raised from 20 to at least 30 years old. The bill is now pending in the Senate Judicial Proceedings Committee. While the bill claims to address unsubstantiated claims of abuse, the Motor Vehicle Administration is already authorized by regulation to suspend the registration of any historic vehicle for use that is inconsistent with the registration requirements.

Maryland Single Plates: Amended House legislation to require the issuance of only a single license plate for historic vehicles and street rods was approved by the House of Delegates. The bill now moves to the Senate Judicial Proceedings Committee for consideration. Under the amendment, the single-plate option would be available only to owners of historic vehicles that are 60 years old and older. The bill no longer affords this option to street rods or later-model historics.

Nebraska Single License Plate: Legislation to provide for the issuance (for a $100 fee) of a single license plate for passenger cars that were not originally equipped with a bracket on the front of the vehicle to display a plate was approved by the Transportation and Telecommunications Committee. The bill will now be considered in a vote by all legislators. If enacted into law, the single-plate option would take effect on January 1, 2017.

Nevada Classic Vehicles: Legislation, opposed by SEMA, to drastically alter the requirements for vehicles eligible for registration as a “classic vehicle” was introduced. Under the bill, the special plates would be allowed only for passenger cars and require that owners provide proof satisfactory to the state that the vehicle is driven solely for personal use and not more than 5,000 miles during an annual registration period. The owner would also be required to have another passenger car or motorcycle registered during the entire registration period. The bill also would exclude light commercial vehicles from eligibility.

New Hampshire Antique Trucks: Legislation to include trucks more than 25 years old (regardless of weight) in the definition of eligible “antique motor vehicles” was approved by the House of Representatives and sent to the Senate Transportation Committee for consideration. The bill provides the option for older trucks to take advantage of the many accommodations available to antique motor vehicles.

New Mexico Replica Cars: A version of SEMA-model legislation to ease the process by which replica cars are titled and registered died when the legislature adjourned for the year. The bill had been approved by the full House of Representatives and was awaiting a vote by the full Senate. Among other things, the bill created a specific registration and titling class for replicas; provided that the model year is the year of the model or brand that a replica car most resembles; exempted replica cars from state and local laws or ordinances requiring periodic vehicle or vehicle-emissions inspections and testing; and provided that replica cars need not have equipment that was not required by state or federal law in its model year.

North Dakota Vehicle Modifications: A bill that originally sought to increase the population of vehicles prohibited from modifying the manufacturer’s original suspension, steering or brake system was amended and approved by the House of Representatives. The bill has been sent to the Senate for concurrence with the amendments. Under the amendment, the bill would no longer restrict modifications on vehicles weighing between 7,000 and 10,000 lbs.

Tennessee Emissions: Amended legislation to extend the emissions-inspection exemption for new cars was approved by the House Government Operations Committee. Under the original bill, vehicles that are three years old and newer and that have an odometer reading of less than 36,000 miles would be excused from the emissions test. Under the newly amended bill, all vehicles three years old and newer would be excused regardless of mileage. Current law exempts only new motor vehicles being registered for the first time or one year from initial registration.

Texas Ethanol: Legislation to prohibit the sale of motor fuel with an ethanol mixture was introduced in the Texas House of Representatives. The measure recognizes that ethanol fuels cause problems with fuel pumps and fuel gauges as well as other engine performance issues, especially over a period of time when the vehicle is not used.

Virginia Exhaust: Governor Terry McAuliffe signed into law legislation to exempt certain antique motor vehicles from the requirement that they have exhaust systems of a type installed as standard factory equipment or comparable to that designed as factory equipment. The new law, which SEMA supported, provides this exemption only to antique vehicles manufactured prior to 1950 and containing engines comparable to those designed as standard factory equipment for use on those vehicles. The new law recognizes that factory replacement parts or comparables are not always readily available for antique motor vehicles manufactured prior to 1950.

West Virginia Legislation: Several bills introduced in 2015 failed to be approved by both houses of the legislature prior to the adjournment of the session. Among these were the following: A resolution to designate the second Friday in July as West Virginia Collector Car Appreciation Day was approved by the full House of Delegates but stalled in the Senate; a bill based on SEMA-model legislation that would have allowed owners to install and use aftermarket modified exhaust systems that meet a 95-decibel limit was not given committee consideration; legislation to allow roof-mounted off-road light bars to be uncovered when vehicles are operated on roads and highways was approved by the House Roads and Transportation Committee and referred to the House Judiciary Committee, where it did not receive committee consideration; a bill to make it a criminal offense to disturb the peace with “noise from an exhaust system” was not given committee consideration; and a measure to exempt all motor vehicles from personal property taxes also did not receive committee consideration.

FEDERAL UPDATE

Estate Taxes: The U.S. House Ways and Means Committee passed legislation on a straight party-line vote to repeal the estate tax. In 2012, lawmakers compromised on the current 40% tax rate with a $5 million-per-person exemption (indexed to inflation). It is unclear if there is enough support to repeal the tax, which now impacts an estimated 5,500 families, including many owners of small businesses. The bill will next be sent to the floor of the House for a vote by all members. 

SEMA News—June 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

STATE UPDATE

Arkansas Miles Traveled Tax: Legislation to allow the state to implement a pilot program that charged drivers based on vehicle miles traveled was withdrawn by the bill’s sponsor after a public outcry in Arkansas. Under the measure, participants in the program would have been taxed 1.5 cents per each mile the subject vehicle traveled on Arkansas roadways. The bill could have created privacy concerns and penalized national efforts to create a more fuel-efficient vehicle fleet by taxing drivers based on vehicle mileage.

Florida Miles Traveled Tax: A Florida House subcommittee approved amended legislation that originally directed the state to undertake a study on the impact of implementing a system that charges drivers based on vehicle miles traveled (VMT). Under the amendment, the entire program has been deleted from the bill. However, a Florida Senate version of the bill has been approved by the Senate Transportation Committee and is pending in the Regulated Industries Committee. The bill provides that the Center for Urban Transportation, in consultation with the Florida Transportation Commission, would establish a pilot program to study the feasibility of implementing a system that charges drivers based on VMT. As gas tax revenues decrease due to hybrid and electric vehicle ownership, states are looking for new sources of funding for pet projects. The Senate bill allows the Center for Urban Transportation to spend up to $400,000 for the study and pilot project design and provides for the implementation of the pilot program in 2017.

Hawaii Ethanol: Legislation to remove the requirement that gasoline offered for sale in the state contain a percentage of ethanol was approved by the Hawaii Senate and sent to the House with a significant amendment. Under the amended bill, the effective date of the repeal would be July 1, 2050. The original date for the repeal was July 1, 2015. This amendment renders the bill almost useless to the thousands of older cars that are currently most negatively affected by ethanol blends. The bill will now be considered by two additional House committees. Currently, the state requires that gasoline sold in the state for use in motor vehicles contain 10% ethanol by volume.

Iowa Single License Plate: Legislation that would provide for the issuance of a single rear-mounted license plate for motor vehicles was approved by the House Transportation Committee and will next be considered in a vote by the full Iowa House of Representatives. The bill would protect the aesthetic contours of certain vehicles and relieve vehicle owners of the burden and expense of having to create mounting holes on some original bumpers. The measure would also save money, conserve resources and bring Iowa in line with other states that are moving to a single-plate requirement.

Kentucky Property Tax: Legislation to put in place a new and more beneficial valuation procedure for older vehicles was signed into law by Governor Steve Beshear. Under the new law, vehicles 20 years old or older would no longer be presumed to be in “original factory” or “classic” condition for purposes of the property tax. Original factory and classic vehicles are currently assessed as high-value collectibles. This measure instead provides three options for assessing the value of these vehicles. Under each option, the value of the vehicle would be reduced by 10% each year.

Maine Ethanol: In 2013, SAN-supported legislation to prohibit the sale and distribution of corn-based ethanol in Maine was signed into law. Under the new law, 10 other states or a number of states with a collective population of 30,000,000 would have to enact a similar prohibition before the Maine law could go into effect. This year, legislation has been introduced to amend the law to provide that this prohibition would take effect if only three other states have enacted laws that prohibit the sale of motor fuel containing corn-based ethanol.

Maryland Historic Vehicles: SEMA is opposing legislation to increase the age requirement for vehicles eligible for registration as “historic motor vehicles.” Under a bill approved by the House of Delegates, the age requirement would be raised from 20 to at least 30 years old. The bill is now pending in the Senate Judicial Proceedings Committee. While the bill claims to address unsubstantiated claims of abuse, the Motor Vehicle Administration is already authorized by regulation to suspend the registration of any historic vehicle for use that is inconsistent with the registration requirements.

Maryland Single Plates: Amended House legislation to require the issuance of only a single license plate for historic vehicles and street rods was approved by the House of Delegates. The bill now moves to the Senate Judicial Proceedings Committee for consideration. Under the amendment, the single-plate option would be available only to owners of historic vehicles that are 60 years old and older. The bill no longer affords this option to street rods or later-model historics.

Nebraska Single License Plate: Legislation to provide for the issuance (for a $100 fee) of a single license plate for passenger cars that were not originally equipped with a bracket on the front of the vehicle to display a plate was approved by the Transportation and Telecommunications Committee. The bill will now be considered in a vote by all legislators. If enacted into law, the single-plate option would take effect on January 1, 2017.

Nevada Classic Vehicles: Legislation, opposed by SEMA, to drastically alter the requirements for vehicles eligible for registration as a “classic vehicle” was introduced. Under the bill, the special plates would be allowed only for passenger cars and require that owners provide proof satisfactory to the state that the vehicle is driven solely for personal use and not more than 5,000 miles during an annual registration period. The owner would also be required to have another passenger car or motorcycle registered during the entire registration period. The bill also would exclude light commercial vehicles from eligibility.

New Hampshire Antique Trucks: Legislation to include trucks more than 25 years old (regardless of weight) in the definition of eligible “antique motor vehicles” was approved by the House of Representatives and sent to the Senate Transportation Committee for consideration. The bill provides the option for older trucks to take advantage of the many accommodations available to antique motor vehicles.

New Mexico Replica Cars: A version of SEMA-model legislation to ease the process by which replica cars are titled and registered died when the legislature adjourned for the year. The bill had been approved by the full House of Representatives and was awaiting a vote by the full Senate. Among other things, the bill created a specific registration and titling class for replicas; provided that the model year is the year of the model or brand that a replica car most resembles; exempted replica cars from state and local laws or ordinances requiring periodic vehicle or vehicle-emissions inspections and testing; and provided that replica cars need not have equipment that was not required by state or federal law in its model year.

North Dakota Vehicle Modifications: A bill that originally sought to increase the population of vehicles prohibited from modifying the manufacturer’s original suspension, steering or brake system was amended and approved by the House of Representatives. The bill has been sent to the Senate for concurrence with the amendments. Under the amendment, the bill would no longer restrict modifications on vehicles weighing between 7,000 and 10,000 lbs.

Tennessee Emissions: Amended legislation to extend the emissions-inspection exemption for new cars was approved by the House Government Operations Committee. Under the original bill, vehicles that are three years old and newer and that have an odometer reading of less than 36,000 miles would be excused from the emissions test. Under the newly amended bill, all vehicles three years old and newer would be excused regardless of mileage. Current law exempts only new motor vehicles being registered for the first time or one year from initial registration.

Texas Ethanol: Legislation to prohibit the sale of motor fuel with an ethanol mixture was introduced in the Texas House of Representatives. The measure recognizes that ethanol fuels cause problems with fuel pumps and fuel gauges as well as other engine performance issues, especially over a period of time when the vehicle is not used.

Virginia Exhaust: Governor Terry McAuliffe signed into law legislation to exempt certain antique motor vehicles from the requirement that they have exhaust systems of a type installed as standard factory equipment or comparable to that designed as factory equipment. The new law, which SEMA supported, provides this exemption only to antique vehicles manufactured prior to 1950 and containing engines comparable to those designed as standard factory equipment for use on those vehicles. The new law recognizes that factory replacement parts or comparables are not always readily available for antique motor vehicles manufactured prior to 1950.

West Virginia Legislation: Several bills introduced in 2015 failed to be approved by both houses of the legislature prior to the adjournment of the session. Among these were the following: A resolution to designate the second Friday in July as West Virginia Collector Car Appreciation Day was approved by the full House of Delegates but stalled in the Senate; a bill based on SEMA-model legislation that would have allowed owners to install and use aftermarket modified exhaust systems that meet a 95-decibel limit was not given committee consideration; legislation to allow roof-mounted off-road light bars to be uncovered when vehicles are operated on roads and highways was approved by the House Roads and Transportation Committee and referred to the House Judiciary Committee, where it did not receive committee consideration; a bill to make it a criminal offense to disturb the peace with “noise from an exhaust system” was not given committee consideration; and a measure to exempt all motor vehicles from personal property taxes also did not receive committee consideration.

FEDERAL UPDATE

Estate Taxes: The U.S. House Ways and Means Committee passed legislation on a straight party-line vote to repeal the estate tax. In 2012, lawmakers compromised on the current 40% tax rate with a $5 million-per-person exemption (indexed to inflation). It is unclear if there is enough support to repeal the tax, which now impacts an estimated 5,500 families, including many owners of small businesses. The bill will next be sent to the floor of the House for a vote by all members. 

SEMA News—June 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

STATE UPDATE

Arkansas Miles Traveled Tax: Legislation to allow the state to implement a pilot program that charged drivers based on vehicle miles traveled was withdrawn by the bill’s sponsor after a public outcry in Arkansas. Under the measure, participants in the program would have been taxed 1.5 cents per each mile the subject vehicle traveled on Arkansas roadways. The bill could have created privacy concerns and penalized national efforts to create a more fuel-efficient vehicle fleet by taxing drivers based on vehicle mileage.

Florida Miles Traveled Tax: A Florida House subcommittee approved amended legislation that originally directed the state to undertake a study on the impact of implementing a system that charges drivers based on vehicle miles traveled (VMT). Under the amendment, the entire program has been deleted from the bill. However, a Florida Senate version of the bill has been approved by the Senate Transportation Committee and is pending in the Regulated Industries Committee. The bill provides that the Center for Urban Transportation, in consultation with the Florida Transportation Commission, would establish a pilot program to study the feasibility of implementing a system that charges drivers based on VMT. As gas tax revenues decrease due to hybrid and electric vehicle ownership, states are looking for new sources of funding for pet projects. The Senate bill allows the Center for Urban Transportation to spend up to $400,000 for the study and pilot project design and provides for the implementation of the pilot program in 2017.

Hawaii Ethanol: Legislation to remove the requirement that gasoline offered for sale in the state contain a percentage of ethanol was approved by the Hawaii Senate and sent to the House with a significant amendment. Under the amended bill, the effective date of the repeal would be July 1, 2050. The original date for the repeal was July 1, 2015. This amendment renders the bill almost useless to the thousands of older cars that are currently most negatively affected by ethanol blends. The bill will now be considered by two additional House committees. Currently, the state requires that gasoline sold in the state for use in motor vehicles contain 10% ethanol by volume.

Iowa Single License Plate: Legislation that would provide for the issuance of a single rear-mounted license plate for motor vehicles was approved by the House Transportation Committee and will next be considered in a vote by the full Iowa House of Representatives. The bill would protect the aesthetic contours of certain vehicles and relieve vehicle owners of the burden and expense of having to create mounting holes on some original bumpers. The measure would also save money, conserve resources and bring Iowa in line with other states that are moving to a single-plate requirement.

Kentucky Property Tax: Legislation to put in place a new and more beneficial valuation procedure for older vehicles was signed into law by Governor Steve Beshear. Under the new law, vehicles 20 years old or older would no longer be presumed to be in “original factory” or “classic” condition for purposes of the property tax. Original factory and classic vehicles are currently assessed as high-value collectibles. This measure instead provides three options for assessing the value of these vehicles. Under each option, the value of the vehicle would be reduced by 10% each year.

Maine Ethanol: In 2013, SAN-supported legislation to prohibit the sale and distribution of corn-based ethanol in Maine was signed into law. Under the new law, 10 other states or a number of states with a collective population of 30,000,000 would have to enact a similar prohibition before the Maine law could go into effect. This year, legislation has been introduced to amend the law to provide that this prohibition would take effect if only three other states have enacted laws that prohibit the sale of motor fuel containing corn-based ethanol.

Maryland Historic Vehicles: SEMA is opposing legislation to increase the age requirement for vehicles eligible for registration as “historic motor vehicles.” Under a bill approved by the House of Delegates, the age requirement would be raised from 20 to at least 30 years old. The bill is now pending in the Senate Judicial Proceedings Committee. While the bill claims to address unsubstantiated claims of abuse, the Motor Vehicle Administration is already authorized by regulation to suspend the registration of any historic vehicle for use that is inconsistent with the registration requirements.

Maryland Single Plates: Amended House legislation to require the issuance of only a single license plate for historic vehicles and street rods was approved by the House of Delegates. The bill now moves to the Senate Judicial Proceedings Committee for consideration. Under the amendment, the single-plate option would be available only to owners of historic vehicles that are 60 years old and older. The bill no longer affords this option to street rods or later-model historics.

Nebraska Single License Plate: Legislation to provide for the issuance (for a $100 fee) of a single license plate for passenger cars that were not originally equipped with a bracket on the front of the vehicle to display a plate was approved by the Transportation and Telecommunications Committee. The bill will now be considered in a vote by all legislators. If enacted into law, the single-plate option would take effect on January 1, 2017.

Nevada Classic Vehicles: Legislation, opposed by SEMA, to drastically alter the requirements for vehicles eligible for registration as a “classic vehicle” was introduced. Under the bill, the special plates would be allowed only for passenger cars and require that owners provide proof satisfactory to the state that the vehicle is driven solely for personal use and not more than 5,000 miles during an annual registration period. The owner would also be required to have another passenger car or motorcycle registered during the entire registration period. The bill also would exclude light commercial vehicles from eligibility.

New Hampshire Antique Trucks: Legislation to include trucks more than 25 years old (regardless of weight) in the definition of eligible “antique motor vehicles” was approved by the House of Representatives and sent to the Senate Transportation Committee for consideration. The bill provides the option for older trucks to take advantage of the many accommodations available to antique motor vehicles.

New Mexico Replica Cars: A version of SEMA-model legislation to ease the process by which replica cars are titled and registered died when the legislature adjourned for the year. The bill had been approved by the full House of Representatives and was awaiting a vote by the full Senate. Among other things, the bill created a specific registration and titling class for replicas; provided that the model year is the year of the model or brand that a replica car most resembles; exempted replica cars from state and local laws or ordinances requiring periodic vehicle or vehicle-emissions inspections and testing; and provided that replica cars need not have equipment that was not required by state or federal law in its model year.

North Dakota Vehicle Modifications: A bill that originally sought to increase the population of vehicles prohibited from modifying the manufacturer’s original suspension, steering or brake system was amended and approved by the House of Representatives. The bill has been sent to the Senate for concurrence with the amendments. Under the amendment, the bill would no longer restrict modifications on vehicles weighing between 7,000 and 10,000 lbs.

Tennessee Emissions: Amended legislation to extend the emissions-inspection exemption for new cars was approved by the House Government Operations Committee. Under the original bill, vehicles that are three years old and newer and that have an odometer reading of less than 36,000 miles would be excused from the emissions test. Under the newly amended bill, all vehicles three years old and newer would be excused regardless of mileage. Current law exempts only new motor vehicles being registered for the first time or one year from initial registration.

Texas Ethanol: Legislation to prohibit the sale of motor fuel with an ethanol mixture was introduced in the Texas House of Representatives. The measure recognizes that ethanol fuels cause problems with fuel pumps and fuel gauges as well as other engine performance issues, especially over a period of time when the vehicle is not used.

Virginia Exhaust: Governor Terry McAuliffe signed into law legislation to exempt certain antique motor vehicles from the requirement that they have exhaust systems of a type installed as standard factory equipment or comparable to that designed as factory equipment. The new law, which SEMA supported, provides this exemption only to antique vehicles manufactured prior to 1950 and containing engines comparable to those designed as standard factory equipment for use on those vehicles. The new law recognizes that factory replacement parts or comparables are not always readily available for antique motor vehicles manufactured prior to 1950.

West Virginia Legislation: Several bills introduced in 2015 failed to be approved by both houses of the legislature prior to the adjournment of the session. Among these were the following: A resolution to designate the second Friday in July as West Virginia Collector Car Appreciation Day was approved by the full House of Delegates but stalled in the Senate; a bill based on SEMA-model legislation that would have allowed owners to install and use aftermarket modified exhaust systems that meet a 95-decibel limit was not given committee consideration; legislation to allow roof-mounted off-road light bars to be uncovered when vehicles are operated on roads and highways was approved by the House Roads and Transportation Committee and referred to the House Judiciary Committee, where it did not receive committee consideration; a bill to make it a criminal offense to disturb the peace with “noise from an exhaust system” was not given committee consideration; and a measure to exempt all motor vehicles from personal property taxes also did not receive committee consideration.

FEDERAL UPDATE

Estate Taxes: The U.S. House Ways and Means Committee passed legislation on a straight party-line vote to repeal the estate tax. In 2012, lawmakers compromised on the current 40% tax rate with a $5 million-per-person exemption (indexed to inflation). It is unclear if there is enough support to repeal the tax, which now impacts an estimated 5,500 families, including many owners of small businesses. The bill will next be sent to the floor of the House for a vote by all members. 

SEMA News—June 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

STATE UPDATE

Arkansas Miles Traveled Tax: Legislation to allow the state to implement a pilot program that charged drivers based on vehicle miles traveled was withdrawn by the bill’s sponsor after a public outcry in Arkansas. Under the measure, participants in the program would have been taxed 1.5 cents per each mile the subject vehicle traveled on Arkansas roadways. The bill could have created privacy concerns and penalized national efforts to create a more fuel-efficient vehicle fleet by taxing drivers based on vehicle mileage.

Florida Miles Traveled Tax: A Florida House subcommittee approved amended legislation that originally directed the state to undertake a study on the impact of implementing a system that charges drivers based on vehicle miles traveled (VMT). Under the amendment, the entire program has been deleted from the bill. However, a Florida Senate version of the bill has been approved by the Senate Transportation Committee and is pending in the Regulated Industries Committee. The bill provides that the Center for Urban Transportation, in consultation with the Florida Transportation Commission, would establish a pilot program to study the feasibility of implementing a system that charges drivers based on VMT. As gas tax revenues decrease due to hybrid and electric vehicle ownership, states are looking for new sources of funding for pet projects. The Senate bill allows the Center for Urban Transportation to spend up to $400,000 for the study and pilot project design and provides for the implementation of the pilot program in 2017.

Hawaii Ethanol: Legislation to remove the requirement that gasoline offered for sale in the state contain a percentage of ethanol was approved by the Hawaii Senate and sent to the House with a significant amendment. Under the amended bill, the effective date of the repeal would be July 1, 2050. The original date for the repeal was July 1, 2015. This amendment renders the bill almost useless to the thousands of older cars that are currently most negatively affected by ethanol blends. The bill will now be considered by two additional House committees. Currently, the state requires that gasoline sold in the state for use in motor vehicles contain 10% ethanol by volume.

Iowa Single License Plate: Legislation that would provide for the issuance of a single rear-mounted license plate for motor vehicles was approved by the House Transportation Committee and will next be considered in a vote by the full Iowa House of Representatives. The bill would protect the aesthetic contours of certain vehicles and relieve vehicle owners of the burden and expense of having to create mounting holes on some original bumpers. The measure would also save money, conserve resources and bring Iowa in line with other states that are moving to a single-plate requirement.

Kentucky Property Tax: Legislation to put in place a new and more beneficial valuation procedure for older vehicles was signed into law by Governor Steve Beshear. Under the new law, vehicles 20 years old or older would no longer be presumed to be in “original factory” or “classic” condition for purposes of the property tax. Original factory and classic vehicles are currently assessed as high-value collectibles. This measure instead provides three options for assessing the value of these vehicles. Under each option, the value of the vehicle would be reduced by 10% each year.

Maine Ethanol: In 2013, SAN-supported legislation to prohibit the sale and distribution of corn-based ethanol in Maine was signed into law. Under the new law, 10 other states or a number of states with a collective population of 30,000,000 would have to enact a similar prohibition before the Maine law could go into effect. This year, legislation has been introduced to amend the law to provide that this prohibition would take effect if only three other states have enacted laws that prohibit the sale of motor fuel containing corn-based ethanol.

Maryland Historic Vehicles: SEMA is opposing legislation to increase the age requirement for vehicles eligible for registration as “historic motor vehicles.” Under a bill approved by the House of Delegates, the age requirement would be raised from 20 to at least 30 years old. The bill is now pending in the Senate Judicial Proceedings Committee. While the bill claims to address unsubstantiated claims of abuse, the Motor Vehicle Administration is already authorized by regulation to suspend the registration of any historic vehicle for use that is inconsistent with the registration requirements.

Maryland Single Plates: Amended House legislation to require the issuance of only a single license plate for historic vehicles and street rods was approved by the House of Delegates. The bill now moves to the Senate Judicial Proceedings Committee for consideration. Under the amendment, the single-plate option would be available only to owners of historic vehicles that are 60 years old and older. The bill no longer affords this option to street rods or later-model historics.

Nebraska Single License Plate: Legislation to provide for the issuance (for a $100 fee) of a single license plate for passenger cars that were not originally equipped with a bracket on the front of the vehicle to display a plate was approved by the Transportation and Telecommunications Committee. The bill will now be considered in a vote by all legislators. If enacted into law, the single-plate option would take effect on January 1, 2017.

Nevada Classic Vehicles: Legislation, opposed by SEMA, to drastically alter the requirements for vehicles eligible for registration as a “classic vehicle” was introduced. Under the bill, the special plates would be allowed only for passenger cars and require that owners provide proof satisfactory to the state that the vehicle is driven solely for personal use and not more than 5,000 miles during an annual registration period. The owner would also be required to have another passenger car or motorcycle registered during the entire registration period. The bill also would exclude light commercial vehicles from eligibility.

New Hampshire Antique Trucks: Legislation to include trucks more than 25 years old (regardless of weight) in the definition of eligible “antique motor vehicles” was approved by the House of Representatives and sent to the Senate Transportation Committee for consideration. The bill provides the option for older trucks to take advantage of the many accommodations available to antique motor vehicles.

New Mexico Replica Cars: A version of SEMA-model legislation to ease the process by which replica cars are titled and registered died when the legislature adjourned for the year. The bill had been approved by the full House of Representatives and was awaiting a vote by the full Senate. Among other things, the bill created a specific registration and titling class for replicas; provided that the model year is the year of the model or brand that a replica car most resembles; exempted replica cars from state and local laws or ordinances requiring periodic vehicle or vehicle-emissions inspections and testing; and provided that replica cars need not have equipment that was not required by state or federal law in its model year.

North Dakota Vehicle Modifications: A bill that originally sought to increase the population of vehicles prohibited from modifying the manufacturer’s original suspension, steering or brake system was amended and approved by the House of Representatives. The bill has been sent to the Senate for concurrence with the amendments. Under the amendment, the bill would no longer restrict modifications on vehicles weighing between 7,000 and 10,000 lbs.

Tennessee Emissions: Amended legislation to extend the emissions-inspection exemption for new cars was approved by the House Government Operations Committee. Under the original bill, vehicles that are three years old and newer and that have an odometer reading of less than 36,000 miles would be excused from the emissions test. Under the newly amended bill, all vehicles three years old and newer would be excused regardless of mileage. Current law exempts only new motor vehicles being registered for the first time or one year from initial registration.

Texas Ethanol: Legislation to prohibit the sale of motor fuel with an ethanol mixture was introduced in the Texas House of Representatives. The measure recognizes that ethanol fuels cause problems with fuel pumps and fuel gauges as well as other engine performance issues, especially over a period of time when the vehicle is not used.

Virginia Exhaust: Governor Terry McAuliffe signed into law legislation to exempt certain antique motor vehicles from the requirement that they have exhaust systems of a type installed as standard factory equipment or comparable to that designed as factory equipment. The new law, which SEMA supported, provides this exemption only to antique vehicles manufactured prior to 1950 and containing engines comparable to those designed as standard factory equipment for use on those vehicles. The new law recognizes that factory replacement parts or comparables are not always readily available for antique motor vehicles manufactured prior to 1950.

West Virginia Legislation: Several bills introduced in 2015 failed to be approved by both houses of the legislature prior to the adjournment of the session. Among these were the following: A resolution to designate the second Friday in July as West Virginia Collector Car Appreciation Day was approved by the full House of Delegates but stalled in the Senate; a bill based on SEMA-model legislation that would have allowed owners to install and use aftermarket modified exhaust systems that meet a 95-decibel limit was not given committee consideration; legislation to allow roof-mounted off-road light bars to be uncovered when vehicles are operated on roads and highways was approved by the House Roads and Transportation Committee and referred to the House Judiciary Committee, where it did not receive committee consideration; a bill to make it a criminal offense to disturb the peace with “noise from an exhaust system” was not given committee consideration; and a measure to exempt all motor vehicles from personal property taxes also did not receive committee consideration.

FEDERAL UPDATE

Estate Taxes: The U.S. House Ways and Means Committee passed legislation on a straight party-line vote to repeal the estate tax. In 2012, lawmakers compromised on the current 40% tax rate with a $5 million-per-person exemption (indexed to inflation). It is unclear if there is enough support to repeal the tax, which now impacts an estimated 5,500 families, including many owners of small businesses. The bill will next be sent to the floor of the House for a vote by all members.