SEMA News—April 2014

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archives

The Kiss

You could say that much of Anthony “Andy” Granatelli’s life had been leading up to this day, this moment. The man known as “Mr. 500” seemed irresistibly drawn to the Indianapolis Motor Speedway. In 1946, he and his brothers Vince and Joe sponsored a car in the first Indy 500 after World War II but watched it sputter to a stop, out of fuel, before completing the race. Two years later Andy tried driving at Indy but crashed hard in practice. Grancor, the speed shop and warehouse-distribution business the brothers formed in Chicago, sponsored Indy roadsters in the ’50s, and the Granatellis brought Novi roadsters back to run the Brickyard for several years in the early and mid ’60s.

While campaigning the Novis, the Granatelli brothers were also working on a project to win at Indy using turbine power. And they came so close. Parnelli Jones was within three laps of winning the 1967 race in the futuristic, four-wheel-drive, turbine-powered STP Oil Treatment Special before a $10 transmission bearing failed, bringing the “whooshmobile” to a stop. The Granatellis came back to Indy in 1968 with another turbine-powered car but again had to watch a late-race lead disappear, this time due to a fuel pump failure.

For the 1969 race, the Granatellis returned to conventional piston power, commissioning a four-wheel-drive Ford/Lotus for driver Mario Andretti. During practice, Andretti crashed hard and suffered burns to his face when a wheel hub failed. Undaunted, he went on to qualify second fastest in a year-old backup car and led the race for most of its second half, despite an overheating engine and slipping clutch. He finished a full lap ahead of second-place Dan Gurney at an average speed of 156.867 mph.

It’s no wonder, then, that a jubilant Andy Granatelli, finally victorious at Indianapolis after so many years of trying, pushed his way up to Andretti in Victory Circle and planted the kiss seen ’round the world.

The iconic photo of the kiss was taken by Petersen Publishing photographer Bob D’Olivo. The original negative has long since disappeared from the Petersen photo archive, but we did find a print of the famous shot, as well as a proof sheet of the original photo job. Look closely at the frames and you can see Andretti waving to the crowd and Granatelli approaching him before smacking him on the cheek.

Granatelli passed away in December at age 90 due to heart failure. During his “supercharged” life (as he called it), he would famously turn two businesses into household names—STP and Tuneup Masters. He and his brothers set speed records on the dry lakes and Bonneville driving Paxton-supercharged cars. He himself turned over 241 mph at Bonneville at age 62. Could he have been any happier, though, than at this moment in May 1969?

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

FROM THE HILL
By Dan Sadowski

Carolina Homecoming

Congressional District Site Visit Program Reconnects Rep. Patrick McHenry With Old Friends at Steele Rubber Products

Founded in 1958, Steele Rubber Products manufactures weatherstripping for windshields, doors, windows, hoods and trunks. The company also makes rubber parts that are hard to find, including gaskets, pedal pads, fuel-system parts and bumpers for restoration vehicles. Like many SEMA member companies, Steele Rubber is a family-owned and -operated business.

Rep. McHenry was elected in 2004 and is serving his fifth term in Congress. Prior to his election to Congress at age 29, McHenry represented the 109th District in the North Carolina House of Representatives. In 2001, McHenry was appointed by President George W. Bush to serve as special assistant to the U.S. Secretary of Labor.

McHenry serves on the House Financial Services Committee and House Oversight and Government Reform Committee. He is a member of the SEMA-supported Congressional Automotive Performance and Motorsports Caucus, a bipartisan organization of legislators who understand the unique economic and cultural impact of the industry.

“The political and economic landscape has changed dramatically over the past eight years, so we welcomed the opportunity to host a second visit for Rep. McHenry,” said Agosta. “Our facility has expanded, we have hired more workers and installed new equipment. Meanwhile, the visit provided a meaningful exchange on issues of importance to our industry and our employees.”

When McHenry arrived at Steele Rubber Products, it did not take long for him to become reacquainted with Agosta and his staff. Although he had not been to the facility in many years, McHenry is very accessible to business owners and his constituents at local town hall meetings, Chamber of Commerce events and other public forums. In fact, Agosta has attended many of these off-site events to receive updates from Rep. McHenry about current activities in Washington and to keep a line of communication open with his office.

During Rep. McHenry’s tour, Agosta, Lail and Saltrick provided a comprehensive overview of the company’s expansion and development over the past decade. Throughout the tour, McHenry was able to visit with Steele employees, some of whom he knew personally. Topics of interest included the need to reduce regulatory burdens, spur job creation and address spiraling health-care costs.

McHenry was impressed with the company’s substantial growth. He also applauded Steele’s contributions to the local motorsports industry in his North Carolina district near Charlotte, home to many significant race teams, shops and other manufacturers. In addition to restoration parts, Steele supplies many race teams with spring rubbers for competition.

The Congressional District Site Visit Program is administered by SEMA’s government affairs office in Washington, D.C. Given that members of Congress will be in their home districts more often during 2014, companies interested in hosting events with their elected officials are encouraged to contact SEMA Director of Congressional Affairs Dan Sadowski via e-mail at dans@sema.org or by phone at 202-783-6007 x19.

SEMA PAC President’s Club Spotlight: Nate Shelton

Nate Shelton is chief marketing officer at Driven Performance Brands, which is headquartered in Santa Rosa, California. Shelton is a two-year member of the SEMA PAC President’s Club and serves as chairman of the SEMA Board of Directors.

“As chairman of the SEMA Board, I know firsthand the vital role SEMA PAC plays in supporting our members on a variety of critical government affairs initiatives,” Shelton said.

“That’s why I am a member of the SEMA PAC President’s Club.”

For more information on SEMA PAC, please contact SEMA PAC Manager Christian Robinson at 202-783-6007 x20, or by e-mail at christianr@sema.org.

SEMA News—April 2014

FROM THE HILL
By Dan Sadowski

Carolina Homecoming

Congressional District Site Visit Program Reconnects Rep. Patrick McHenry With Old Friends at Steele Rubber Products

Founded in 1958, Steele Rubber Products manufactures weatherstripping for windshields, doors, windows, hoods and trunks. The company also makes rubber parts that are hard to find, including gaskets, pedal pads, fuel-system parts and bumpers for restoration vehicles. Like many SEMA member companies, Steele Rubber is a family-owned and -operated business.

Rep. McHenry was elected in 2004 and is serving his fifth term in Congress. Prior to his election to Congress at age 29, McHenry represented the 109th District in the North Carolina House of Representatives. In 2001, McHenry was appointed by President George W. Bush to serve as special assistant to the U.S. Secretary of Labor.

McHenry serves on the House Financial Services Committee and House Oversight and Government Reform Committee. He is a member of the SEMA-supported Congressional Automotive Performance and Motorsports Caucus, a bipartisan organization of legislators who understand the unique economic and cultural impact of the industry.

“The political and economic landscape has changed dramatically over the past eight years, so we welcomed the opportunity to host a second visit for Rep. McHenry,” said Agosta. “Our facility has expanded, we have hired more workers and installed new equipment. Meanwhile, the visit provided a meaningful exchange on issues of importance to our industry and our employees.”

When McHenry arrived at Steele Rubber Products, it did not take long for him to become reacquainted with Agosta and his staff. Although he had not been to the facility in many years, McHenry is very accessible to business owners and his constituents at local town hall meetings, Chamber of Commerce events and other public forums. In fact, Agosta has attended many of these off-site events to receive updates from Rep. McHenry about current activities in Washington and to keep a line of communication open with his office.

During Rep. McHenry’s tour, Agosta, Lail and Saltrick provided a comprehensive overview of the company’s expansion and development over the past decade. Throughout the tour, McHenry was able to visit with Steele employees, some of whom he knew personally. Topics of interest included the need to reduce regulatory burdens, spur job creation and address spiraling health-care costs.

McHenry was impressed with the company’s substantial growth. He also applauded Steele’s contributions to the local motorsports industry in his North Carolina district near Charlotte, home to many significant race teams, shops and other manufacturers. In addition to restoration parts, Steele supplies many race teams with spring rubbers for competition.

The Congressional District Site Visit Program is administered by SEMA’s government affairs office in Washington, D.C. Given that members of Congress will be in their home districts more often during 2014, companies interested in hosting events with their elected officials are encouraged to contact SEMA Director of Congressional Affairs Dan Sadowski via e-mail at dans@sema.org or by phone at 202-783-6007 x19.

SEMA PAC President’s Club Spotlight: Nate Shelton

Nate Shelton is chief marketing officer at Driven Performance Brands, which is headquartered in Santa Rosa, California. Shelton is a two-year member of the SEMA PAC President’s Club and serves as chairman of the SEMA Board of Directors.

“As chairman of the SEMA Board, I know firsthand the vital role SEMA PAC plays in supporting our members on a variety of critical government affairs initiatives,” Shelton said.

“That’s why I am a member of the SEMA PAC President’s Club.”

For more information on SEMA PAC, please contact SEMA PAC Manager Christian Robinson at 202-783-6007 x20, or by e-mail at christianr@sema.org.