Thu, 03/01/2012 - 07:24

SEMA News—March 2012

EVENTS
By Linda Spencer

Brazil

A Market on the Rise

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Brazilian trade and consumer shows are well attended and growing, and organizers are increasingly seeking to showcase customizing options.
   
Brazil has long been on a short list of automotive specialty-equipment markets that SEMA is tracking as having the potential to develop into one of the world’s most important. Brazil first came onto the association’s radar screen due its position as the largest market in South America as well as a citizenry known for an obsession with cars, trucks and motorsports.
SEMA executives traveled to Brazil first in 2005, and so it is time now to provide an update on a number of factors that they were exploring back then as well as market changes. In a two-article series, we will look at the factors most typically used by exporters in determining which markets to target. In this first article, we will address:

• Local interest in and passion for customizing
• Size of the population
• Vehicle sales and the number of vehicles on the road
• Disposable income, discretionary dollars and other economic factors
• Perception of U.S. products

In the follow-up article next month, we will look at:

• Laws regarding customization
• Tariff rates and costs associated with getting U.S.-manufactured products to Brazilian customers
• Distribution system

The Passion

As in the U.S., motorsports has a firm place in the hearts of Brazilian citizens, and its racers have achieved world-champion status. Brazil has produced three Formula One world champions, including Emerson Fittipaldi, Nelson Piquet and Ayrton Senna. The Brazilian Grand Prix has been on the Formula One calendar since 1972, with the São Paulo Interlagos venue on the fall schedule. Brazil is also home to Indianapolis 500 winners Fittipaldi, Hélio Castroneves and Gil de Ferran.

Televised events are increasingly popular, with “Stock Car Brasil” and “Fórmula Truck” being broadcasted nationally. Drag racing is also popular and exists throughout Brazil in many cities in the countryside of Sao Paulo such as Limeira, Artur Nogueira, Campinas and Piracicaba as well as in big cities such as Fortaleza, Recife, Rio De Janeiro, Belo Horizonte, Londrina, Santa Catarina and Vitoria.

“There are about 500 professional racers who invest a lot of money in their cars and travels to races,” said Edu Bernasconi, editorial director of Fullpower magazine. “Amateur races are also becoming very popular nationwide. Every state with a racetrack is organizing races to take the kids off the streets. In 2012, we’re helping some state federations to hold races at regional racetracks.”

The market for restoration, classic cars, musclecars and hot rods is also growing more popular. Discovery Channel’s “American Hot Rod” was well received in Brazil and, said Bernasconi, “Good painting for old cars and newly imported wheel brands have shown consumers that it’s possible to get a unique car. And this uniqueness is easier to get with an old car. Manufacturers of steering wheels, columns and pedals might do well coming into and supplying this segment of the market.”

Bernasconi said that restoration is currently popular and that cars from the past are cooler than ever. He added that musclecars as well as old European vehicles are all the rage, and sales of current-model musclecars have grown so popular that Chevrolet has finally launched the Camaro officially in Brazil. Chevrolet cars had previously been sold by independent dealers.

This car-passionate country publishes numerous tuner, hot rod, off-road, racing and car-collector publications. Below is a sampling of these magazines, all of which were represented in recent years on the SEMA Show’s Global Media Awards panel. They include:

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Racing is popular in Brazil on many different levels, from Formula 1 on down to a local amateur level. Many of the vehicles available in Brazil are equivalent to North American models, and the “Made in America” mark is considered a sign of quality and innovative design.
   
Autoesporte
www.autoesporte.com.br

Automotivo
www.revistaautomotivo.com.br

Car Stereo
www.carstereo.com.br/carstereo

Car Stereo Professional
www.carstereo.com.br

Fullpower
www.revistafullpower.com.br

Hot Rods
www.revistahotrods.com.br/hotrods

Super Speed
www.revistasuperspeed.com.br/superspeed

USAC
www.usac.com.br

Brazilian trade and consumer shows are well attended, and the most well known is the consumer show X-treme Motorsports, a biennial event held in Sao Paulo that is now in its sixth edition and is reminiscent of the first SEMA Shows. Indeed, the show’s organizers are looking for the event to grow and increasingly showcase customizing options.

“Our main goal is to grow the show to 150 companies in the 2013 edition,” said Bernasconi, who is the founder of X-treme Motorsports.

Population

With a inhabitants totalling nearly 200 million, Brazil boasts the largest population in the southern hemisphere and is now ranked fifth in the world. In this country that is nearly the size of the U.S., the majority of the inhabitants live in the south-central area, which includes Sâo Paulo and Rio de Janeiro. Sâo Paulo is one of the largest cities in the world, with 20 million people living within the greater metropolitan area.

The Vehicle Market

With 3.4 million passenger vehicles sold in 2011, Brazil is now the fourth-biggest car market in the world. It overtook Germany in 2010, and many envision Brazil increasing this strong growth and overtaking Japan to claim the world’s third-largest market within three to five years. More and more Brazilians want the transportation freedom that comes with owning a vehicle as they experience rising prosperity. This extraordinary growth may continue, as sales reflect currently unmet demand and the ratio of people to vehicles increases from the current one vehicle for every seven people and closes the gap with the U.S., which has one vehicle for every two citizens. JD Powers predicts annual sales will double to six million in 2018.

Disposable Income

Consumers need disposable income to purchase specialty parts and grow the tuning market in Brazil. Fueled by low unemployment rates (currently a new historic low of 5.8%) and a fast-growing economy, all indications point to an improvement in the purchasing power of Brazilians. The number of people entering the middle class is surging, and continued progress is expected in the short term. Between 2003 and 2009, 35 million people became part of the middle class in Brazil, and 20 million more are expected to attain that distinction by 2014, further reducing the historic yawn between the nation’s rich and poor.

“What is happening in Brazil is very different from what is happening in other BRICs [Brazil, Russia, India and China] in the sense that what is booming in Brazil is the bottom of the income distribution,” said analyst Marcelo Cortes Neri, chief economist of Centro de Politicas Sociais at the Getulio Vargas Foundation. “Consumer demand for cars as well as all consumer items such electronics and luxuries is increasing at a fast clip.”

Perception of American-Made Products

The “Made in America” mark is considered a sign of quality and innovation among global consumers. Local enthusiasts are increasingly aware of and deliberately seek U.S.-branded products. TV shows such as TLC’s “Overhaulin’,” MTV’s “Pimp My Ride” and Universal Studio’s The Fast and the Furious films also played a great role in generating interest in American-style tuning. As brand awareness and education among consumers and the trade continues in both markets, U.S. brands are bound to benefit.

Several resources are available to the automotive specialty-equipment companies that are interested in the Brazilian market, including:

• The Brazilian-American Chamber of Commerce

• The U.S. Commercial Service in Brazil

• The Embassy of the United States in São Paulo

• ACEB (the Brazilian Business Trade Association)

• Trends of Doing Business in Brazil in 2011

Next Month: Part 2

For more information about SEMA’s international programs, contact Linda Spencer at lindas@sema.org or visit www.SEMA.org/interntational.

Thu, 03/01/2012 - 07:24

SEMA News—March 2012

EVENTS
By Linda Spencer

Brazil

A Market on the Rise

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Brazilian trade and consumer shows are well attended and growing, and organizers are increasingly seeking to showcase customizing options.
   
Brazil has long been on a short list of automotive specialty-equipment markets that SEMA is tracking as having the potential to develop into one of the world’s most important. Brazil first came onto the association’s radar screen due its position as the largest market in South America as well as a citizenry known for an obsession with cars, trucks and motorsports.
SEMA executives traveled to Brazil first in 2005, and so it is time now to provide an update on a number of factors that they were exploring back then as well as market changes. In a two-article series, we will look at the factors most typically used by exporters in determining which markets to target. In this first article, we will address:

• Local interest in and passion for customizing
• Size of the population
• Vehicle sales and the number of vehicles on the road
• Disposable income, discretionary dollars and other economic factors
• Perception of U.S. products

In the follow-up article next month, we will look at:

• Laws regarding customization
• Tariff rates and costs associated with getting U.S.-manufactured products to Brazilian customers
• Distribution system

The Passion

As in the U.S., motorsports has a firm place in the hearts of Brazilian citizens, and its racers have achieved world-champion status. Brazil has produced three Formula One world champions, including Emerson Fittipaldi, Nelson Piquet and Ayrton Senna. The Brazilian Grand Prix has been on the Formula One calendar since 1972, with the São Paulo Interlagos venue on the fall schedule. Brazil is also home to Indianapolis 500 winners Fittipaldi, Hélio Castroneves and Gil de Ferran.

Televised events are increasingly popular, with “Stock Car Brasil” and “Fórmula Truck” being broadcasted nationally. Drag racing is also popular and exists throughout Brazil in many cities in the countryside of Sao Paulo such as Limeira, Artur Nogueira, Campinas and Piracicaba as well as in big cities such as Fortaleza, Recife, Rio De Janeiro, Belo Horizonte, Londrina, Santa Catarina and Vitoria.

“There are about 500 professional racers who invest a lot of money in their cars and travels to races,” said Edu Bernasconi, editorial director of Fullpower magazine. “Amateur races are also becoming very popular nationwide. Every state with a racetrack is organizing races to take the kids off the streets. In 2012, we’re helping some state federations to hold races at regional racetracks.”

The market for restoration, classic cars, musclecars and hot rods is also growing more popular. Discovery Channel’s “American Hot Rod” was well received in Brazil and, said Bernasconi, “Good painting for old cars and newly imported wheel brands have shown consumers that it’s possible to get a unique car. And this uniqueness is easier to get with an old car. Manufacturers of steering wheels, columns and pedals might do well coming into and supplying this segment of the market.”

Bernasconi said that restoration is currently popular and that cars from the past are cooler than ever. He added that musclecars as well as old European vehicles are all the rage, and sales of current-model musclecars have grown so popular that Chevrolet has finally launched the Camaro officially in Brazil. Chevrolet cars had previously been sold by independent dealers.

This car-passionate country publishes numerous tuner, hot rod, off-road, racing and car-collector publications. Below is a sampling of these magazines, all of which were represented in recent years on the SEMA Show’s Global Media Awards panel. They include:

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Racing is popular in Brazil on many different levels, from Formula 1 on down to a local amateur level. Many of the vehicles available in Brazil are equivalent to North American models, and the “Made in America” mark is considered a sign of quality and innovative design.
   
Autoesporte
www.autoesporte.com.br

Automotivo
www.revistaautomotivo.com.br

Car Stereo
www.carstereo.com.br/carstereo

Car Stereo Professional
www.carstereo.com.br

Fullpower
www.revistafullpower.com.br

Hot Rods
www.revistahotrods.com.br/hotrods

Super Speed
www.revistasuperspeed.com.br/superspeed

USAC
www.usac.com.br

Brazilian trade and consumer shows are well attended, and the most well known is the consumer show X-treme Motorsports, a biennial event held in Sao Paulo that is now in its sixth edition and is reminiscent of the first SEMA Shows. Indeed, the show’s organizers are looking for the event to grow and increasingly showcase customizing options.

“Our main goal is to grow the show to 150 companies in the 2013 edition,” said Bernasconi, who is the founder of X-treme Motorsports.

Population

With a inhabitants totalling nearly 200 million, Brazil boasts the largest population in the southern hemisphere and is now ranked fifth in the world. In this country that is nearly the size of the U.S., the majority of the inhabitants live in the south-central area, which includes Sâo Paulo and Rio de Janeiro. Sâo Paulo is one of the largest cities in the world, with 20 million people living within the greater metropolitan area.

The Vehicle Market

With 3.4 million passenger vehicles sold in 2011, Brazil is now the fourth-biggest car market in the world. It overtook Germany in 2010, and many envision Brazil increasing this strong growth and overtaking Japan to claim the world’s third-largest market within three to five years. More and more Brazilians want the transportation freedom that comes with owning a vehicle as they experience rising prosperity. This extraordinary growth may continue, as sales reflect currently unmet demand and the ratio of people to vehicles increases from the current one vehicle for every seven people and closes the gap with the U.S., which has one vehicle for every two citizens. JD Powers predicts annual sales will double to six million in 2018.

Disposable Income

Consumers need disposable income to purchase specialty parts and grow the tuning market in Brazil. Fueled by low unemployment rates (currently a new historic low of 5.8%) and a fast-growing economy, all indications point to an improvement in the purchasing power of Brazilians. The number of people entering the middle class is surging, and continued progress is expected in the short term. Between 2003 and 2009, 35 million people became part of the middle class in Brazil, and 20 million more are expected to attain that distinction by 2014, further reducing the historic yawn between the nation’s rich and poor.

“What is happening in Brazil is very different from what is happening in other BRICs [Brazil, Russia, India and China] in the sense that what is booming in Brazil is the bottom of the income distribution,” said analyst Marcelo Cortes Neri, chief economist of Centro de Politicas Sociais at the Getulio Vargas Foundation. “Consumer demand for cars as well as all consumer items such electronics and luxuries is increasing at a fast clip.”

Perception of American-Made Products

The “Made in America” mark is considered a sign of quality and innovation among global consumers. Local enthusiasts are increasingly aware of and deliberately seek U.S.-branded products. TV shows such as TLC’s “Overhaulin’,” MTV’s “Pimp My Ride” and Universal Studio’s The Fast and the Furious films also played a great role in generating interest in American-style tuning. As brand awareness and education among consumers and the trade continues in both markets, U.S. brands are bound to benefit.

Several resources are available to the automotive specialty-equipment companies that are interested in the Brazilian market, including:

• The Brazilian-American Chamber of Commerce

• The U.S. Commercial Service in Brazil

• The Embassy of the United States in São Paulo

• ACEB (the Brazilian Business Trade Association)

• Trends of Doing Business in Brazil in 2011

Next Month: Part 2

For more information about SEMA’s international programs, contact Linda Spencer at lindas@sema.org or visit www.SEMA.org/interntational.

Thu, 03/01/2012 - 07:24

SEMA News—March 2012

EVENTS
By Linda Spencer

Brazil

A Market on the Rise

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Brazilian trade and consumer shows are well attended and growing, and organizers are increasingly seeking to showcase customizing options.
   
Brazil has long been on a short list of automotive specialty-equipment markets that SEMA is tracking as having the potential to develop into one of the world’s most important. Brazil first came onto the association’s radar screen due its position as the largest market in South America as well as a citizenry known for an obsession with cars, trucks and motorsports.
SEMA executives traveled to Brazil first in 2005, and so it is time now to provide an update on a number of factors that they were exploring back then as well as market changes. In a two-article series, we will look at the factors most typically used by exporters in determining which markets to target. In this first article, we will address:

• Local interest in and passion for customizing
• Size of the population
• Vehicle sales and the number of vehicles on the road
• Disposable income, discretionary dollars and other economic factors
• Perception of U.S. products

In the follow-up article next month, we will look at:

• Laws regarding customization
• Tariff rates and costs associated with getting U.S.-manufactured products to Brazilian customers
• Distribution system

The Passion

As in the U.S., motorsports has a firm place in the hearts of Brazilian citizens, and its racers have achieved world-champion status. Brazil has produced three Formula One world champions, including Emerson Fittipaldi, Nelson Piquet and Ayrton Senna. The Brazilian Grand Prix has been on the Formula One calendar since 1972, with the São Paulo Interlagos venue on the fall schedule. Brazil is also home to Indianapolis 500 winners Fittipaldi, Hélio Castroneves and Gil de Ferran.

Televised events are increasingly popular, with “Stock Car Brasil” and “Fórmula Truck” being broadcasted nationally. Drag racing is also popular and exists throughout Brazil in many cities in the countryside of Sao Paulo such as Limeira, Artur Nogueira, Campinas and Piracicaba as well as in big cities such as Fortaleza, Recife, Rio De Janeiro, Belo Horizonte, Londrina, Santa Catarina and Vitoria.

“There are about 500 professional racers who invest a lot of money in their cars and travels to races,” said Edu Bernasconi, editorial director of Fullpower magazine. “Amateur races are also becoming very popular nationwide. Every state with a racetrack is organizing races to take the kids off the streets. In 2012, we’re helping some state federations to hold races at regional racetracks.”

The market for restoration, classic cars, musclecars and hot rods is also growing more popular. Discovery Channel’s “American Hot Rod” was well received in Brazil and, said Bernasconi, “Good painting for old cars and newly imported wheel brands have shown consumers that it’s possible to get a unique car. And this uniqueness is easier to get with an old car. Manufacturers of steering wheels, columns and pedals might do well coming into and supplying this segment of the market.”

Bernasconi said that restoration is currently popular and that cars from the past are cooler than ever. He added that musclecars as well as old European vehicles are all the rage, and sales of current-model musclecars have grown so popular that Chevrolet has finally launched the Camaro officially in Brazil. Chevrolet cars had previously been sold by independent dealers.

This car-passionate country publishes numerous tuner, hot rod, off-road, racing and car-collector publications. Below is a sampling of these magazines, all of which were represented in recent years on the SEMA Show’s Global Media Awards panel. They include:

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Racing is popular in Brazil on many different levels, from Formula 1 on down to a local amateur level. Many of the vehicles available in Brazil are equivalent to North American models, and the “Made in America” mark is considered a sign of quality and innovative design.
   
Autoesporte
www.autoesporte.com.br

Automotivo
www.revistaautomotivo.com.br

Car Stereo
www.carstereo.com.br/carstereo

Car Stereo Professional
www.carstereo.com.br

Fullpower
www.revistafullpower.com.br

Hot Rods
www.revistahotrods.com.br/hotrods

Super Speed
www.revistasuperspeed.com.br/superspeed

USAC
www.usac.com.br

Brazilian trade and consumer shows are well attended, and the most well known is the consumer show X-treme Motorsports, a biennial event held in Sao Paulo that is now in its sixth edition and is reminiscent of the first SEMA Shows. Indeed, the show’s organizers are looking for the event to grow and increasingly showcase customizing options.

“Our main goal is to grow the show to 150 companies in the 2013 edition,” said Bernasconi, who is the founder of X-treme Motorsports.

Population

With a inhabitants totalling nearly 200 million, Brazil boasts the largest population in the southern hemisphere and is now ranked fifth in the world. In this country that is nearly the size of the U.S., the majority of the inhabitants live in the south-central area, which includes Sâo Paulo and Rio de Janeiro. Sâo Paulo is one of the largest cities in the world, with 20 million people living within the greater metropolitan area.

The Vehicle Market

With 3.4 million passenger vehicles sold in 2011, Brazil is now the fourth-biggest car market in the world. It overtook Germany in 2010, and many envision Brazil increasing this strong growth and overtaking Japan to claim the world’s third-largest market within three to five years. More and more Brazilians want the transportation freedom that comes with owning a vehicle as they experience rising prosperity. This extraordinary growth may continue, as sales reflect currently unmet demand and the ratio of people to vehicles increases from the current one vehicle for every seven people and closes the gap with the U.S., which has one vehicle for every two citizens. JD Powers predicts annual sales will double to six million in 2018.

Disposable Income

Consumers need disposable income to purchase specialty parts and grow the tuning market in Brazil. Fueled by low unemployment rates (currently a new historic low of 5.8%) and a fast-growing economy, all indications point to an improvement in the purchasing power of Brazilians. The number of people entering the middle class is surging, and continued progress is expected in the short term. Between 2003 and 2009, 35 million people became part of the middle class in Brazil, and 20 million more are expected to attain that distinction by 2014, further reducing the historic yawn between the nation’s rich and poor.

“What is happening in Brazil is very different from what is happening in other BRICs [Brazil, Russia, India and China] in the sense that what is booming in Brazil is the bottom of the income distribution,” said analyst Marcelo Cortes Neri, chief economist of Centro de Politicas Sociais at the Getulio Vargas Foundation. “Consumer demand for cars as well as all consumer items such electronics and luxuries is increasing at a fast clip.”

Perception of American-Made Products

The “Made in America” mark is considered a sign of quality and innovation among global consumers. Local enthusiasts are increasingly aware of and deliberately seek U.S.-branded products. TV shows such as TLC’s “Overhaulin’,” MTV’s “Pimp My Ride” and Universal Studio’s The Fast and the Furious films also played a great role in generating interest in American-style tuning. As brand awareness and education among consumers and the trade continues in both markets, U.S. brands are bound to benefit.

Several resources are available to the automotive specialty-equipment companies that are interested in the Brazilian market, including:

• The Brazilian-American Chamber of Commerce

• The U.S. Commercial Service in Brazil

• The Embassy of the United States in São Paulo

• ACEB (the Brazilian Business Trade Association)

• Trends of Doing Business in Brazil in 2011

Next Month: Part 2

For more information about SEMA’s international programs, contact Linda Spencer at lindas@sema.org or visit www.SEMA.org/interntational.

Thu, 03/01/2012 - 07:24

SEMA News—March 2012

EVENTS
By Linda Spencer

Brazil

A Market on the Rise

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Brazilian trade and consumer shows are well attended and growing, and organizers are increasingly seeking to showcase customizing options.
   
Brazil has long been on a short list of automotive specialty-equipment markets that SEMA is tracking as having the potential to develop into one of the world’s most important. Brazil first came onto the association’s radar screen due its position as the largest market in South America as well as a citizenry known for an obsession with cars, trucks and motorsports.
SEMA executives traveled to Brazil first in 2005, and so it is time now to provide an update on a number of factors that they were exploring back then as well as market changes. In a two-article series, we will look at the factors most typically used by exporters in determining which markets to target. In this first article, we will address:

• Local interest in and passion for customizing
• Size of the population
• Vehicle sales and the number of vehicles on the road
• Disposable income, discretionary dollars and other economic factors
• Perception of U.S. products

In the follow-up article next month, we will look at:

• Laws regarding customization
• Tariff rates and costs associated with getting U.S.-manufactured products to Brazilian customers
• Distribution system

The Passion

As in the U.S., motorsports has a firm place in the hearts of Brazilian citizens, and its racers have achieved world-champion status. Brazil has produced three Formula One world champions, including Emerson Fittipaldi, Nelson Piquet and Ayrton Senna. The Brazilian Grand Prix has been on the Formula One calendar since 1972, with the São Paulo Interlagos venue on the fall schedule. Brazil is also home to Indianapolis 500 winners Fittipaldi, Hélio Castroneves and Gil de Ferran.

Televised events are increasingly popular, with “Stock Car Brasil” and “Fórmula Truck” being broadcasted nationally. Drag racing is also popular and exists throughout Brazil in many cities in the countryside of Sao Paulo such as Limeira, Artur Nogueira, Campinas and Piracicaba as well as in big cities such as Fortaleza, Recife, Rio De Janeiro, Belo Horizonte, Londrina, Santa Catarina and Vitoria.

“There are about 500 professional racers who invest a lot of money in their cars and travels to races,” said Edu Bernasconi, editorial director of Fullpower magazine. “Amateur races are also becoming very popular nationwide. Every state with a racetrack is organizing races to take the kids off the streets. In 2012, we’re helping some state federations to hold races at regional racetracks.”

The market for restoration, classic cars, musclecars and hot rods is also growing more popular. Discovery Channel’s “American Hot Rod” was well received in Brazil and, said Bernasconi, “Good painting for old cars and newly imported wheel brands have shown consumers that it’s possible to get a unique car. And this uniqueness is easier to get with an old car. Manufacturers of steering wheels, columns and pedals might do well coming into and supplying this segment of the market.”

Bernasconi said that restoration is currently popular and that cars from the past are cooler than ever. He added that musclecars as well as old European vehicles are all the rage, and sales of current-model musclecars have grown so popular that Chevrolet has finally launched the Camaro officially in Brazil. Chevrolet cars had previously been sold by independent dealers.

This car-passionate country publishes numerous tuner, hot rod, off-road, racing and car-collector publications. Below is a sampling of these magazines, all of which were represented in recent years on the SEMA Show’s Global Media Awards panel. They include:

  automotive accessories research, automotive aftermarket research, aftermarket business, offroad industry
Racing is popular in Brazil on many different levels, from Formula 1 on down to a local amateur level. Many of the vehicles available in Brazil are equivalent to North American models, and the “Made in America” mark is considered a sign of quality and innovative design.
   
Autoesporte
www.autoesporte.com.br

Automotivo
www.revistaautomotivo.com.br

Car Stereo
www.carstereo.com.br/carstereo

Car Stereo Professional
www.carstereo.com.br

Fullpower
www.revistafullpower.com.br

Hot Rods
www.revistahotrods.com.br/hotrods

Super Speed
www.revistasuperspeed.com.br/superspeed

USAC
www.usac.com.br

Brazilian trade and consumer shows are well attended, and the most well known is the consumer show X-treme Motorsports, a biennial event held in Sao Paulo that is now in its sixth edition and is reminiscent of the first SEMA Shows. Indeed, the show’s organizers are looking for the event to grow and increasingly showcase customizing options.

“Our main goal is to grow the show to 150 companies in the 2013 edition,” said Bernasconi, who is the founder of X-treme Motorsports.

Population

With a inhabitants totalling nearly 200 million, Brazil boasts the largest population in the southern hemisphere and is now ranked fifth in the world. In this country that is nearly the size of the U.S., the majority of the inhabitants live in the south-central area, which includes Sâo Paulo and Rio de Janeiro. Sâo Paulo is one of the largest cities in the world, with 20 million people living within the greater metropolitan area.

The Vehicle Market

With 3.4 million passenger vehicles sold in 2011, Brazil is now the fourth-biggest car market in the world. It overtook Germany in 2010, and many envision Brazil increasing this strong growth and overtaking Japan to claim the world’s third-largest market within three to five years. More and more Brazilians want the transportation freedom that comes with owning a vehicle as they experience rising prosperity. This extraordinary growth may continue, as sales reflect currently unmet demand and the ratio of people to vehicles increases from the current one vehicle for every seven people and closes the gap with the U.S., which has one vehicle for every two citizens. JD Powers predicts annual sales will double to six million in 2018.

Disposable Income

Consumers need disposable income to purchase specialty parts and grow the tuning market in Brazil. Fueled by low unemployment rates (currently a new historic low of 5.8%) and a fast-growing economy, all indications point to an improvement in the purchasing power of Brazilians. The number of people entering the middle class is surging, and continued progress is expected in the short term. Between 2003 and 2009, 35 million people became part of the middle class in Brazil, and 20 million more are expected to attain that distinction by 2014, further reducing the historic yawn between the nation’s rich and poor.

“What is happening in Brazil is very different from what is happening in other BRICs [Brazil, Russia, India and China] in the sense that what is booming in Brazil is the bottom of the income distribution,” said analyst Marcelo Cortes Neri, chief economist of Centro de Politicas Sociais at the Getulio Vargas Foundation. “Consumer demand for cars as well as all consumer items such electronics and luxuries is increasing at a fast clip.”

Perception of American-Made Products

The “Made in America” mark is considered a sign of quality and innovation among global consumers. Local enthusiasts are increasingly aware of and deliberately seek U.S.-branded products. TV shows such as TLC’s “Overhaulin’,” MTV’s “Pimp My Ride” and Universal Studio’s The Fast and the Furious films also played a great role in generating interest in American-style tuning. As brand awareness and education among consumers and the trade continues in both markets, U.S. brands are bound to benefit.

Several resources are available to the automotive specialty-equipment companies that are interested in the Brazilian market, including:

• The Brazilian-American Chamber of Commerce

• The U.S. Commercial Service in Brazil

• The Embassy of the United States in São Paulo

• ACEB (the Brazilian Business Trade Association)

• Trends of Doing Business in Brazil in 2011

Next Month: Part 2

For more information about SEMA’s international programs, contact Linda Spencer at lindas@sema.org or visit www.SEMA.org/interntational.

Thu, 03/01/2012 - 07:22

SEMA News—March 2012

LEGISLATIVE and TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

(Canada) Quebec Emissions Inspections:

  aftermarket parts regulation, auto legislation, automotive legislation, federal regulation aftermarket parts  
   
The province of Quebec, Canada, has drafted legislation to create a mandatory motor-vehicle inspection and maintenance program. Slated to begin in 2013, vehicles would be required to undergo an emissions inspection as a condition for registration. According to the Ministry of Sustainable Development, Environment and Parks, the program is intended to follow the example of six other Canadian provinces and is expected to be implemented in phases: 1) All vehicles eight years and older will be required to pass inspection before being sold; 2) all vehicles eight years and older will be required to pass inspection regardless of whether or not they are being sold; 3) all vehicles (including new vehicles) will be required to pass inspection. According to the Ministry, the legislation is expected to be reviewed over the course of two years, and language specifying the age limits of vehicles to be tested, including whether historic and collector vehicles would be exempted, are still under consideration. SEMA is working with representatives of the National Association of Automobile Clubs of Canada and other enthusiast groups to ensure that the program makes reasonable accommodations for rarely used and well-maintained hobbyist cars and is fairly applied to all other vehicles.

Maine Tire Size:

SEMA is monitoring a Maine resolution to direct the Department of Public Safety, Bureau of State Police, to review its rules governing motor-vehicle inspection requirements regarding tire size. The resolution requires the solicitation of input from interested parties and the development of recommendations designed to eliminate unnecessary restrictions while maintaining necessary safety requirements. The resolution requires the bureau to report to the joint standing committee of the legislature having jurisdiction over transportation matters.

New Jersey New Car Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA is now proposing action to incorporate revisions to the State Implementation Plan submitted by the New Jersey Department of Environmental Protection to improve performance of the state’s Inspection and Maintenance program. Chief among the amendments that the EPA is proposing to approve is the extension of the new-vehicle inspection exemption from four years to five years because it meets all applicable requirements of the Clean Air Act and the agency’s regulations and will not interfere with attainment of ambient air-quality standards. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits.

Texas Street Rods/Custom Vehicles:

SEMA issued comments to a Texas Department of Motor Vehicles proposed regulation implementing standards for the initial safety inspection of street rods and custom vehicles. The proposal was drafted pursuant to the enactment into law last year of SEMA-model legislation to create a vehicle registration classification for street rods and customs (including kit cars and replicas) and provide for special license plates for these vehicles. Under the proposed regulation, the department will require an owner to provide proof of a safety inspection to the department on initial registration, including registration at the time of title transfer. In addition, the applicant must provide proof that an Automotive Service Excellence technician performed a safety inspection with valid certification as a Certified Master Automobile and Light Truck Technician. Further, the inspection must certify that the vehicle “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway.” In its comments, SEMA recommended that these inspection opportunities be provided to any inspector who has met the applicable requirements and is licensed by the Department of Public Safety Motor Vehicle Inspection Office; further define the vague terms “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway;” and standardize the fee charged for the inspection of these vehicles to conform to the fee charged for the inspection of vehicles subjected to yearly inspections ($14.50).

FEDERAL UPDATE

Collector Car Appreciation Day:

SEMA and its Automotive Restoration Market Organization and Hot Rod Industry Alliance councils announced July 13, 2012, as Collector Car Appreciation Day (CCAD). The date marks the third commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA and its councils are again working to secure a Congressional resolution to recognize the day’s significance. Two previous Senate resolutions have been sponsored by Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC), both strong advocates for the automotive hobby in Washington. CCAD is a singular tribute to the collector car industry and the millions of hobbyists it supports. Thousands of Americans gather at car cruises, parades and other events to celebrate our nation’s automotive heritage. SEMA and its councils will again seek to organize CCAD events on July 13 or anytime during July.

Employee Rights Poster:

The National Labor Relations Board (NLRB) postponed the start date for a rule requiring employers to display a poster informing workers of their right to unionize and bargain collectively. The rule is now scheduled to take effect on April 30, 2012. The rule is widely opposed by business groups, including SEMA, over concerns that it unfairly promotes unionization. The rule was scheduled to take effect last November but was delayed by the NLRB until January in order to provide more time to make private-sector employers aware of their obligation to post the notice. The rule has been delayed a second time at the request of a U.S. District Court that is considering legal challenges to the rule. The 11- x 17-in. notice poster can be downloaded for free at www.nlrb.gov/poster.

Keyless Ignition Systems:

The National Highway Traffic Safety Administration (NHTSA) wants to create uniform minimum standards to cover the types of keyless ignition controls being installed in many new cars. The goal is to make it easier for drivers to stop a moving vehicle during a panic situation and to alert drivers who attempt to leave a vehicle without it being “locked in park” or with the engine still running. NHTSA is proposing to require a half-second hold time to shut down the vehicle when the driver pushes the ignition control, along with a standardized audible warning when the car is being turned off without being in the park position. The revisions would be included in Federal Motor Vehicle Safety Standard No. 114, Theft Prevention and Rollaway Protection. They would likely not take effect until model year 2015.

Trucker’s Hours of Service:

Truck drivers may be on the road up to 11 hours daily but must take a minimum break of at least 30 minutes after eight hours under a new rule issued by the U.S. Federal Motor Carrier Safety Administration (FMCSA). The “hours of service” rule covering commercial motor vehicles has been debated for more than a decade. The FMCSA reduced the maximum number of hours a driver can work during the week from 82 to 70. The requirement that there be a 34-hour rest period between the end of one week and the start of another remains unchanged. The new rule takes effect on July 1, 2013. Although the rule is generally associated with long-haul carriers, any manufacturer, distributor or retailer may be impacted if shipping schedules or transportation costs are adjusted as a result of the new rule.

Thu, 03/01/2012 - 07:22

SEMA News—March 2012

LEGISLATIVE and TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

(Canada) Quebec Emissions Inspections:

  aftermarket parts regulation, auto legislation, automotive legislation, federal regulation aftermarket parts  
   
The province of Quebec, Canada, has drafted legislation to create a mandatory motor-vehicle inspection and maintenance program. Slated to begin in 2013, vehicles would be required to undergo an emissions inspection as a condition for registration. According to the Ministry of Sustainable Development, Environment and Parks, the program is intended to follow the example of six other Canadian provinces and is expected to be implemented in phases: 1) All vehicles eight years and older will be required to pass inspection before being sold; 2) all vehicles eight years and older will be required to pass inspection regardless of whether or not they are being sold; 3) all vehicles (including new vehicles) will be required to pass inspection. According to the Ministry, the legislation is expected to be reviewed over the course of two years, and language specifying the age limits of vehicles to be tested, including whether historic and collector vehicles would be exempted, are still under consideration. SEMA is working with representatives of the National Association of Automobile Clubs of Canada and other enthusiast groups to ensure that the program makes reasonable accommodations for rarely used and well-maintained hobbyist cars and is fairly applied to all other vehicles.

Maine Tire Size:

SEMA is monitoring a Maine resolution to direct the Department of Public Safety, Bureau of State Police, to review its rules governing motor-vehicle inspection requirements regarding tire size. The resolution requires the solicitation of input from interested parties and the development of recommendations designed to eliminate unnecessary restrictions while maintaining necessary safety requirements. The resolution requires the bureau to report to the joint standing committee of the legislature having jurisdiction over transportation matters.

New Jersey New Car Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA is now proposing action to incorporate revisions to the State Implementation Plan submitted by the New Jersey Department of Environmental Protection to improve performance of the state’s Inspection and Maintenance program. Chief among the amendments that the EPA is proposing to approve is the extension of the new-vehicle inspection exemption from four years to five years because it meets all applicable requirements of the Clean Air Act and the agency’s regulations and will not interfere with attainment of ambient air-quality standards. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits.

Texas Street Rods/Custom Vehicles:

SEMA issued comments to a Texas Department of Motor Vehicles proposed regulation implementing standards for the initial safety inspection of street rods and custom vehicles. The proposal was drafted pursuant to the enactment into law last year of SEMA-model legislation to create a vehicle registration classification for street rods and customs (including kit cars and replicas) and provide for special license plates for these vehicles. Under the proposed regulation, the department will require an owner to provide proof of a safety inspection to the department on initial registration, including registration at the time of title transfer. In addition, the applicant must provide proof that an Automotive Service Excellence technician performed a safety inspection with valid certification as a Certified Master Automobile and Light Truck Technician. Further, the inspection must certify that the vehicle “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway.” In its comments, SEMA recommended that these inspection opportunities be provided to any inspector who has met the applicable requirements and is licensed by the Department of Public Safety Motor Vehicle Inspection Office; further define the vague terms “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway;” and standardize the fee charged for the inspection of these vehicles to conform to the fee charged for the inspection of vehicles subjected to yearly inspections ($14.50).

FEDERAL UPDATE

Collector Car Appreciation Day:

SEMA and its Automotive Restoration Market Organization and Hot Rod Industry Alliance councils announced July 13, 2012, as Collector Car Appreciation Day (CCAD). The date marks the third commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA and its councils are again working to secure a Congressional resolution to recognize the day’s significance. Two previous Senate resolutions have been sponsored by Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC), both strong advocates for the automotive hobby in Washington. CCAD is a singular tribute to the collector car industry and the millions of hobbyists it supports. Thousands of Americans gather at car cruises, parades and other events to celebrate our nation’s automotive heritage. SEMA and its councils will again seek to organize CCAD events on July 13 or anytime during July.

Employee Rights Poster:

The National Labor Relations Board (NLRB) postponed the start date for a rule requiring employers to display a poster informing workers of their right to unionize and bargain collectively. The rule is now scheduled to take effect on April 30, 2012. The rule is widely opposed by business groups, including SEMA, over concerns that it unfairly promotes unionization. The rule was scheduled to take effect last November but was delayed by the NLRB until January in order to provide more time to make private-sector employers aware of their obligation to post the notice. The rule has been delayed a second time at the request of a U.S. District Court that is considering legal challenges to the rule. The 11- x 17-in. notice poster can be downloaded for free at www.nlrb.gov/poster.

Keyless Ignition Systems:

The National Highway Traffic Safety Administration (NHTSA) wants to create uniform minimum standards to cover the types of keyless ignition controls being installed in many new cars. The goal is to make it easier for drivers to stop a moving vehicle during a panic situation and to alert drivers who attempt to leave a vehicle without it being “locked in park” or with the engine still running. NHTSA is proposing to require a half-second hold time to shut down the vehicle when the driver pushes the ignition control, along with a standardized audible warning when the car is being turned off without being in the park position. The revisions would be included in Federal Motor Vehicle Safety Standard No. 114, Theft Prevention and Rollaway Protection. They would likely not take effect until model year 2015.

Trucker’s Hours of Service:

Truck drivers may be on the road up to 11 hours daily but must take a minimum break of at least 30 minutes after eight hours under a new rule issued by the U.S. Federal Motor Carrier Safety Administration (FMCSA). The “hours of service” rule covering commercial motor vehicles has been debated for more than a decade. The FMCSA reduced the maximum number of hours a driver can work during the week from 82 to 70. The requirement that there be a 34-hour rest period between the end of one week and the start of another remains unchanged. The new rule takes effect on July 1, 2013. Although the rule is generally associated with long-haul carriers, any manufacturer, distributor or retailer may be impacted if shipping schedules or transportation costs are adjusted as a result of the new rule.

Thu, 03/01/2012 - 07:22

SEMA News—March 2012

LEGISLATIVE and TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

(Canada) Quebec Emissions Inspections:

  aftermarket parts regulation, auto legislation, automotive legislation, federal regulation aftermarket parts  
   
The province of Quebec, Canada, has drafted legislation to create a mandatory motor-vehicle inspection and maintenance program. Slated to begin in 2013, vehicles would be required to undergo an emissions inspection as a condition for registration. According to the Ministry of Sustainable Development, Environment and Parks, the program is intended to follow the example of six other Canadian provinces and is expected to be implemented in phases: 1) All vehicles eight years and older will be required to pass inspection before being sold; 2) all vehicles eight years and older will be required to pass inspection regardless of whether or not they are being sold; 3) all vehicles (including new vehicles) will be required to pass inspection. According to the Ministry, the legislation is expected to be reviewed over the course of two years, and language specifying the age limits of vehicles to be tested, including whether historic and collector vehicles would be exempted, are still under consideration. SEMA is working with representatives of the National Association of Automobile Clubs of Canada and other enthusiast groups to ensure that the program makes reasonable accommodations for rarely used and well-maintained hobbyist cars and is fairly applied to all other vehicles.

Maine Tire Size:

SEMA is monitoring a Maine resolution to direct the Department of Public Safety, Bureau of State Police, to review its rules governing motor-vehicle inspection requirements regarding tire size. The resolution requires the solicitation of input from interested parties and the development of recommendations designed to eliminate unnecessary restrictions while maintaining necessary safety requirements. The resolution requires the bureau to report to the joint standing committee of the legislature having jurisdiction over transportation matters.

New Jersey New Car Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA is now proposing action to incorporate revisions to the State Implementation Plan submitted by the New Jersey Department of Environmental Protection to improve performance of the state’s Inspection and Maintenance program. Chief among the amendments that the EPA is proposing to approve is the extension of the new-vehicle inspection exemption from four years to five years because it meets all applicable requirements of the Clean Air Act and the agency’s regulations and will not interfere with attainment of ambient air-quality standards. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits.

Texas Street Rods/Custom Vehicles:

SEMA issued comments to a Texas Department of Motor Vehicles proposed regulation implementing standards for the initial safety inspection of street rods and custom vehicles. The proposal was drafted pursuant to the enactment into law last year of SEMA-model legislation to create a vehicle registration classification for street rods and customs (including kit cars and replicas) and provide for special license plates for these vehicles. Under the proposed regulation, the department will require an owner to provide proof of a safety inspection to the department on initial registration, including registration at the time of title transfer. In addition, the applicant must provide proof that an Automotive Service Excellence technician performed a safety inspection with valid certification as a Certified Master Automobile and Light Truck Technician. Further, the inspection must certify that the vehicle “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway.” In its comments, SEMA recommended that these inspection opportunities be provided to any inspector who has met the applicable requirements and is licensed by the Department of Public Safety Motor Vehicle Inspection Office; further define the vague terms “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway;” and standardize the fee charged for the inspection of these vehicles to conform to the fee charged for the inspection of vehicles subjected to yearly inspections ($14.50).

FEDERAL UPDATE

Collector Car Appreciation Day:

SEMA and its Automotive Restoration Market Organization and Hot Rod Industry Alliance councils announced July 13, 2012, as Collector Car Appreciation Day (CCAD). The date marks the third commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA and its councils are again working to secure a Congressional resolution to recognize the day’s significance. Two previous Senate resolutions have been sponsored by Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC), both strong advocates for the automotive hobby in Washington. CCAD is a singular tribute to the collector car industry and the millions of hobbyists it supports. Thousands of Americans gather at car cruises, parades and other events to celebrate our nation’s automotive heritage. SEMA and its councils will again seek to organize CCAD events on July 13 or anytime during July.

Employee Rights Poster:

The National Labor Relations Board (NLRB) postponed the start date for a rule requiring employers to display a poster informing workers of their right to unionize and bargain collectively. The rule is now scheduled to take effect on April 30, 2012. The rule is widely opposed by business groups, including SEMA, over concerns that it unfairly promotes unionization. The rule was scheduled to take effect last November but was delayed by the NLRB until January in order to provide more time to make private-sector employers aware of their obligation to post the notice. The rule has been delayed a second time at the request of a U.S. District Court that is considering legal challenges to the rule. The 11- x 17-in. notice poster can be downloaded for free at www.nlrb.gov/poster.

Keyless Ignition Systems:

The National Highway Traffic Safety Administration (NHTSA) wants to create uniform minimum standards to cover the types of keyless ignition controls being installed in many new cars. The goal is to make it easier for drivers to stop a moving vehicle during a panic situation and to alert drivers who attempt to leave a vehicle without it being “locked in park” or with the engine still running. NHTSA is proposing to require a half-second hold time to shut down the vehicle when the driver pushes the ignition control, along with a standardized audible warning when the car is being turned off without being in the park position. The revisions would be included in Federal Motor Vehicle Safety Standard No. 114, Theft Prevention and Rollaway Protection. They would likely not take effect until model year 2015.

Trucker’s Hours of Service:

Truck drivers may be on the road up to 11 hours daily but must take a minimum break of at least 30 minutes after eight hours under a new rule issued by the U.S. Federal Motor Carrier Safety Administration (FMCSA). The “hours of service” rule covering commercial motor vehicles has been debated for more than a decade. The FMCSA reduced the maximum number of hours a driver can work during the week from 82 to 70. The requirement that there be a 34-hour rest period between the end of one week and the start of another remains unchanged. The new rule takes effect on July 1, 2013. Although the rule is generally associated with long-haul carriers, any manufacturer, distributor or retailer may be impacted if shipping schedules or transportation costs are adjusted as a result of the new rule.

Thu, 03/01/2012 - 07:22

SEMA News—March 2012

LEGISLATIVE and TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

(Canada) Quebec Emissions Inspections:

  aftermarket parts regulation, auto legislation, automotive legislation, federal regulation aftermarket parts  
   
The province of Quebec, Canada, has drafted legislation to create a mandatory motor-vehicle inspection and maintenance program. Slated to begin in 2013, vehicles would be required to undergo an emissions inspection as a condition for registration. According to the Ministry of Sustainable Development, Environment and Parks, the program is intended to follow the example of six other Canadian provinces and is expected to be implemented in phases: 1) All vehicles eight years and older will be required to pass inspection before being sold; 2) all vehicles eight years and older will be required to pass inspection regardless of whether or not they are being sold; 3) all vehicles (including new vehicles) will be required to pass inspection. According to the Ministry, the legislation is expected to be reviewed over the course of two years, and language specifying the age limits of vehicles to be tested, including whether historic and collector vehicles would be exempted, are still under consideration. SEMA is working with representatives of the National Association of Automobile Clubs of Canada and other enthusiast groups to ensure that the program makes reasonable accommodations for rarely used and well-maintained hobbyist cars and is fairly applied to all other vehicles.

Maine Tire Size:

SEMA is monitoring a Maine resolution to direct the Department of Public Safety, Bureau of State Police, to review its rules governing motor-vehicle inspection requirements regarding tire size. The resolution requires the solicitation of input from interested parties and the development of recommendations designed to eliminate unnecessary restrictions while maintaining necessary safety requirements. The resolution requires the bureau to report to the joint standing committee of the legislature having jurisdiction over transportation matters.

New Jersey New Car Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA is now proposing action to incorporate revisions to the State Implementation Plan submitted by the New Jersey Department of Environmental Protection to improve performance of the state’s Inspection and Maintenance program. Chief among the amendments that the EPA is proposing to approve is the extension of the new-vehicle inspection exemption from four years to five years because it meets all applicable requirements of the Clean Air Act and the agency’s regulations and will not interfere with attainment of ambient air-quality standards. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits.

Texas Street Rods/Custom Vehicles:

SEMA issued comments to a Texas Department of Motor Vehicles proposed regulation implementing standards for the initial safety inspection of street rods and custom vehicles. The proposal was drafted pursuant to the enactment into law last year of SEMA-model legislation to create a vehicle registration classification for street rods and customs (including kit cars and replicas) and provide for special license plates for these vehicles. Under the proposed regulation, the department will require an owner to provide proof of a safety inspection to the department on initial registration, including registration at the time of title transfer. In addition, the applicant must provide proof that an Automotive Service Excellence technician performed a safety inspection with valid certification as a Certified Master Automobile and Light Truck Technician. Further, the inspection must certify that the vehicle “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway.” In its comments, SEMA recommended that these inspection opportunities be provided to any inspector who has met the applicable requirements and is licensed by the Department of Public Safety Motor Vehicle Inspection Office; further define the vague terms “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway;” and standardize the fee charged for the inspection of these vehicles to conform to the fee charged for the inspection of vehicles subjected to yearly inspections ($14.50).

FEDERAL UPDATE

Collector Car Appreciation Day:

SEMA and its Automotive Restoration Market Organization and Hot Rod Industry Alliance councils announced July 13, 2012, as Collector Car Appreciation Day (CCAD). The date marks the third commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA and its councils are again working to secure a Congressional resolution to recognize the day’s significance. Two previous Senate resolutions have been sponsored by Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC), both strong advocates for the automotive hobby in Washington. CCAD is a singular tribute to the collector car industry and the millions of hobbyists it supports. Thousands of Americans gather at car cruises, parades and other events to celebrate our nation’s automotive heritage. SEMA and its councils will again seek to organize CCAD events on July 13 or anytime during July.

Employee Rights Poster:

The National Labor Relations Board (NLRB) postponed the start date for a rule requiring employers to display a poster informing workers of their right to unionize and bargain collectively. The rule is now scheduled to take effect on April 30, 2012. The rule is widely opposed by business groups, including SEMA, over concerns that it unfairly promotes unionization. The rule was scheduled to take effect last November but was delayed by the NLRB until January in order to provide more time to make private-sector employers aware of their obligation to post the notice. The rule has been delayed a second time at the request of a U.S. District Court that is considering legal challenges to the rule. The 11- x 17-in. notice poster can be downloaded for free at www.nlrb.gov/poster.

Keyless Ignition Systems:

The National Highway Traffic Safety Administration (NHTSA) wants to create uniform minimum standards to cover the types of keyless ignition controls being installed in many new cars. The goal is to make it easier for drivers to stop a moving vehicle during a panic situation and to alert drivers who attempt to leave a vehicle without it being “locked in park” or with the engine still running. NHTSA is proposing to require a half-second hold time to shut down the vehicle when the driver pushes the ignition control, along with a standardized audible warning when the car is being turned off without being in the park position. The revisions would be included in Federal Motor Vehicle Safety Standard No. 114, Theft Prevention and Rollaway Protection. They would likely not take effect until model year 2015.

Trucker’s Hours of Service:

Truck drivers may be on the road up to 11 hours daily but must take a minimum break of at least 30 minutes after eight hours under a new rule issued by the U.S. Federal Motor Carrier Safety Administration (FMCSA). The “hours of service” rule covering commercial motor vehicles has been debated for more than a decade. The FMCSA reduced the maximum number of hours a driver can work during the week from 82 to 70. The requirement that there be a 34-hour rest period between the end of one week and the start of another remains unchanged. The new rule takes effect on July 1, 2013. Although the rule is generally associated with long-haul carriers, any manufacturer, distributor or retailer may be impacted if shipping schedules or transportation costs are adjusted as a result of the new rule.

Thu, 03/01/2012 - 07:22

SEMA News—March 2012

LEGISLATIVE and TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

STATE UPDATE

(Canada) Quebec Emissions Inspections:

  aftermarket parts regulation, auto legislation, automotive legislation, federal regulation aftermarket parts  
   
The province of Quebec, Canada, has drafted legislation to create a mandatory motor-vehicle inspection and maintenance program. Slated to begin in 2013, vehicles would be required to undergo an emissions inspection as a condition for registration. According to the Ministry of Sustainable Development, Environment and Parks, the program is intended to follow the example of six other Canadian provinces and is expected to be implemented in phases: 1) All vehicles eight years and older will be required to pass inspection before being sold; 2) all vehicles eight years and older will be required to pass inspection regardless of whether or not they are being sold; 3) all vehicles (including new vehicles) will be required to pass inspection. According to the Ministry, the legislation is expected to be reviewed over the course of two years, and language specifying the age limits of vehicles to be tested, including whether historic and collector vehicles would be exempted, are still under consideration. SEMA is working with representatives of the National Association of Automobile Clubs of Canada and other enthusiast groups to ensure that the program makes reasonable accommodations for rarely used and well-maintained hobbyist cars and is fairly applied to all other vehicles.

Maine Tire Size:

SEMA is monitoring a Maine resolution to direct the Department of Public Safety, Bureau of State Police, to review its rules governing motor-vehicle inspection requirements regarding tire size. The resolution requires the solicitation of input from interested parties and the development of recommendations designed to eliminate unnecessary restrictions while maintaining necessary safety requirements. The resolution requires the bureau to report to the joint standing committee of the legislature having jurisdiction over transportation matters.

New Jersey New Car Exemption:

In 2010, SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer was signed into law, subject to approval by the U.S. Environmental Protection Agency (EPA). Previous law exempted only vehicles four model years old or newer. The EPA is now proposing action to incorporate revisions to the State Implementation Plan submitted by the New Jersey Department of Environmental Protection to improve performance of the state’s Inspection and Maintenance program. Chief among the amendments that the EPA is proposing to approve is the extension of the new-vehicle inspection exemption from four years to five years because it meets all applicable requirements of the Clean Air Act and the agency’s regulations and will not interfere with attainment of ambient air-quality standards. This action acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits.

Texas Street Rods/Custom Vehicles:

SEMA issued comments to a Texas Department of Motor Vehicles proposed regulation implementing standards for the initial safety inspection of street rods and custom vehicles. The proposal was drafted pursuant to the enactment into law last year of SEMA-model legislation to create a vehicle registration classification for street rods and customs (including kit cars and replicas) and provide for special license plates for these vehicles. Under the proposed regulation, the department will require an owner to provide proof of a safety inspection to the department on initial registration, including registration at the time of title transfer. In addition, the applicant must provide proof that an Automotive Service Excellence technician performed a safety inspection with valid certification as a Certified Master Automobile and Light Truck Technician. Further, the inspection must certify that the vehicle “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway.” In its comments, SEMA recommended that these inspection opportunities be provided to any inspector who has met the applicable requirements and is licensed by the Department of Public Safety Motor Vehicle Inspection Office; further define the vague terms “is structurally stable” and “meets the necessary conditions to be operated safely on the roadway;” and standardize the fee charged for the inspection of these vehicles to conform to the fee charged for the inspection of vehicles subjected to yearly inspections ($14.50).

FEDERAL UPDATE

Collector Car Appreciation Day:

SEMA and its Automotive Restoration Market Organization and Hot Rod Industry Alliance councils announced July 13, 2012, as Collector Car Appreciation Day (CCAD). The date marks the third commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA and its councils are again working to secure a Congressional resolution to recognize the day’s significance. Two previous Senate resolutions have been sponsored by Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC), both strong advocates for the automotive hobby in Washington. CCAD is a singular tribute to the collector car industry and the millions of hobbyists it supports. Thousands of Americans gather at car cruises, parades and other events to celebrate our nation’s automotive heritage. SEMA and its councils will again seek to organize CCAD events on July 13 or anytime during July.

Employee Rights Poster:

The National Labor Relations Board (NLRB) postponed the start date for a rule requiring employers to display a poster informing workers of their right to unionize and bargain collectively. The rule is now scheduled to take effect on April 30, 2012. The rule is widely opposed by business groups, including SEMA, over concerns that it unfairly promotes unionization. The rule was scheduled to take effect last November but was delayed by the NLRB until January in order to provide more time to make private-sector employers aware of their obligation to post the notice. The rule has been delayed a second time at the request of a U.S. District Court that is considering legal challenges to the rule. The 11- x 17-in. notice poster can be downloaded for free at www.nlrb.gov/poster.

Keyless Ignition Systems:

The National Highway Traffic Safety Administration (NHTSA) wants to create uniform minimum standards to cover the types of keyless ignition controls being installed in many new cars. The goal is to make it easier for drivers to stop a moving vehicle during a panic situation and to alert drivers who attempt to leave a vehicle without it being “locked in park” or with the engine still running. NHTSA is proposing to require a half-second hold time to shut down the vehicle when the driver pushes the ignition control, along with a standardized audible warning when the car is being turned off without being in the park position. The revisions would be included in Federal Motor Vehicle Safety Standard No. 114, Theft Prevention and Rollaway Protection. They would likely not take effect until model year 2015.

Trucker’s Hours of Service:

Truck drivers may be on the road up to 11 hours daily but must take a minimum break of at least 30 minutes after eight hours under a new rule issued by the U.S. Federal Motor Carrier Safety Administration (FMCSA). The “hours of service” rule covering commercial motor vehicles has been debated for more than a decade. The FMCSA reduced the maximum number of hours a driver can work during the week from 82 to 70. The requirement that there be a 34-hour rest period between the end of one week and the start of another remains unchanged. The new rule takes effect on July 1, 2013. Although the rule is generally associated with long-haul carriers, any manufacturer, distributor or retailer may be impacted if shipping schedules or transportation costs are adjusted as a result of the new rule.

Thu, 03/01/2012 - 04:01

SEMA News—March 2012

HERITAGE
By Drew Hardin
Photo Courtesy Source Interlink Media Archives

Big Wheel

  Ted Halibrand, aftermarket business, tire industry, automotive history 
   
Given the importance of wheels in today’s automotive aftermarket, it’s hard to imagine a time when they weren’t a driving force (no pun intended) in vehicle modification and personalization. But that’s exactly what LeRoi “Tex” Smith said to open his November 1963 Hot Rod magazine article about custom and racing wheels.

“Until recently, the wheel was virtually overlooked by hot rodders,” Smith wrote. “Those who were concerned with the wheel usually made do with modified steel items or turned to the one major source of supply, the Halibrand Manufacturing Co.”

Ted Halibrand didn’t invent the performance wheel, but his influence over the category looms large. He was a car guy long before the wheel business, working on and racing midgets on Southern California’s oval tracks during the years leading up to World War II. During the war, he worked for Douglas Aircraft as an engineer, where he often used magnesium to replace broken aluminum aircraft parts. And that planted the seed.

Intrigued by magnesium’s light weight and strength, Halibrand looked for a way to adapt the metal into his race cars, knowing—as all rodders did—that less weight equals more speed. He cast his first set of wheels out of magnesium in 1946, and their immediate success led to the formation of the Halibrand Engineering Co. in 1947.

Halibrand’s first customers were Indy racers, and it wasn’t long before Halibrand-shod cars were winning at the Brickyard. In fact, every racecar that won the Indy 500 between 1951–1967 was outfitted with Halibrand wheels. Mickey Thompson went 400 mph at Bonneville with Halibrands. Carroll Shelby specified Halibrands for his cars. So did the Ford engineers who built GT40s to take on LeMans. It’s no wonder, then, that hot rodders and drag racers wanted those original “mags” for their own speed projects. Halibrand’s other lightweight speed parts—especially his quick-change rearend—were also in high demand then as they still are today.

Halibrand was just on the cusp of much of that success when Erick Rickman took this shot in September 1963 for Smith’s article. In Halibrand’s hands is his “split-mag,” a drag race wheel that could be assembled in a variety of widths. Smith said that Halibrand was also about to introduce a new line of street wheels “to fit all American cars and some foreign iron, such as the Jaguar. These wheels will also be available with special knock-off hubs if the customer wants them.”

Did they ever.

Halibrand was inducted into the SEMA Hall of Fame in 1983. He passed away in 1991.