SEMA News—February 2012

GLOBAL TIRE EXPO NEW PRODUCTS

Rolling Stock Options

SEMA Scholarship Application Available Online

SEMA Hall of Fame Member Dick Van Cleve Passes Away

Superior Industries’ Founder Louis Borick Passes Away

The Thailand-built Ford Ranger Double Cab is one of the international vehicles that SEMA manufacturing members would like to access for research and development.

Manufacturers: Which International Vehicles Would Help Your Business Most?

SEMA News—February 2012

REQUIRED READING

Media Turns to Tires and Wheels

SEMA News—February 2012

PEOPLE
By Chad Simon

John Menzler: 2011 SEMA Person of the Year

Long-Time SEMA Member and Industry Veteran Is Recognized for His Role as a Mentor

	Applause filled the room as John Menzler of the COMP Performance Group took the podium to receive the 2011 Person of the Year Award at the SEMA Show in Las Vegas.

SEMA presented John Menzler of the COMP Performance Group with the 2011 Person of the Year Award at the SEMA Show Industry Awards Banquet in Las Vegas on the evening of Thursday, November 3. As a longtime SEMA member as well as a Hot Rod Industry Alliance (HRIA) and Automotive Restoration Market Organization (ARMO) Select Committee member and mentor to many in the industry, Menzler received ringing applause as banquet emcee Dave McClelland announced to a packed house, “Congratulations, John!”

Created in 1969, the Person of the Year Award recognizes individuals for their distinguished service to the trade association and the specialty-equipment industry. One of SEMA’s most prestigious honors, the Person of the Year Award is presented in front of thousands of industry leaders and professionals during the annual banquet at the SEMA Show.

“Being named SEMA Person of the Year is the highlight of my automotive career; it still hasn’t sunk in yet,” Menzler said. “Nobody sets out to become Person of the Year, and you don’t do it for the accolades; you do it to help the industry. It’s all about giving back. I’ve been involved in the councils for 20 years; it’s the backbone of what SEMA is about. I always say that SEMA is the greatest organization in the world, and they also put on a Show.”

McClelland took time to highlight Menzler’s contributions to the industry, making it clear that his compassion and advice helped solve problems both in his work at COMP Performance Group and in his numerous volunteer projects.

“[Menzler] is quick to offer advice and guidance to anyone who needs it,” said McClelland. “Helping others bring their ideas alive is a common thread running through his active involvement in SEMA councils and committees and in his mentoring and volunteer work, such as during this year’s Childhelp and Victory Junction Pinewood drag race.”

Menzler was clearly emotional as he made his way to the podium, while the cheers and applause continued to echo throughout the ballroom. Having been involved in the automotive aftermarket for several decades, Menzler’s service and volunteer efforts have also been officially recognized previously. He was announced as the winner of the Mentor of the Year award in 2010 at the SEMA SBN Networking Breakfast, where he received the only standing ovation of the morning.

Menzler is actively involved in SEMA’s HRIA and ARMO councils. He also served on the Motorsports Parts Manufacturers Council (MPMC) Select Committee from the council’s inception in 1995 until June 2010. He chaired the council from 2004–2006 and, when his tenure as immediate past chair/advisor was over in 2006, he immediately ran and was re-elected to the Select Committee. He is the only recipient of the MPMC Industry Recognition Award, presented to him in 2000, and he was inducted into the MPMC Hall of Fame in 2010. Menzler also owns a SEMA-member company called Inventive Marketing/MotoFeet.

We hope the entire industry will join SEMA in congratulating 2011 SEMA Person of the Year John Menzler. 

SEMA News—February 2012

PEOPLE
By Chad Simon

John Menzler: 2011 SEMA Person of the Year

Long-Time SEMA Member and Industry Veteran Is Recognized for His Role as a Mentor

	Applause filled the room as John Menzler of the COMP Performance Group took the podium to receive the 2011 Person of the Year Award at the SEMA Show in Las Vegas.

SEMA presented John Menzler of the COMP Performance Group with the 2011 Person of the Year Award at the SEMA Show Industry Awards Banquet in Las Vegas on the evening of Thursday, November 3. As a longtime SEMA member as well as a Hot Rod Industry Alliance (HRIA) and Automotive Restoration Market Organization (ARMO) Select Committee member and mentor to many in the industry, Menzler received ringing applause as banquet emcee Dave McClelland announced to a packed house, “Congratulations, John!”

Created in 1969, the Person of the Year Award recognizes individuals for their distinguished service to the trade association and the specialty-equipment industry. One of SEMA’s most prestigious honors, the Person of the Year Award is presented in front of thousands of industry leaders and professionals during the annual banquet at the SEMA Show.

“Being named SEMA Person of the Year is the highlight of my automotive career; it still hasn’t sunk in yet,” Menzler said. “Nobody sets out to become Person of the Year, and you don’t do it for the accolades; you do it to help the industry. It’s all about giving back. I’ve been involved in the councils for 20 years; it’s the backbone of what SEMA is about. I always say that SEMA is the greatest organization in the world, and they also put on a Show.”

McClelland took time to highlight Menzler’s contributions to the industry, making it clear that his compassion and advice helped solve problems both in his work at COMP Performance Group and in his numerous volunteer projects.

“[Menzler] is quick to offer advice and guidance to anyone who needs it,” said McClelland. “Helping others bring their ideas alive is a common thread running through his active involvement in SEMA councils and committees and in his mentoring and volunteer work, such as during this year’s Childhelp and Victory Junction Pinewood drag race.”

Menzler was clearly emotional as he made his way to the podium, while the cheers and applause continued to echo throughout the ballroom. Having been involved in the automotive aftermarket for several decades, Menzler’s service and volunteer efforts have also been officially recognized previously. He was announced as the winner of the Mentor of the Year award in 2010 at the SEMA SBN Networking Breakfast, where he received the only standing ovation of the morning.

Menzler is actively involved in SEMA’s HRIA and ARMO councils. He also served on the Motorsports Parts Manufacturers Council (MPMC) Select Committee from the council’s inception in 1995 until June 2010. He chaired the council from 2004–2006 and, when his tenure as immediate past chair/advisor was over in 2006, he immediately ran and was re-elected to the Select Committee. He is the only recipient of the MPMC Industry Recognition Award, presented to him in 2000, and he was inducted into the MPMC Hall of Fame in 2010. Menzler also owns a SEMA-member company called Inventive Marketing/MotoFeet.

We hope the entire industry will join SEMA in congratulating 2011 SEMA Person of the Year John Menzler. 

SEMA News—February 2012

Market Trends in Tires and Wheels

Over the past couple of years, the trends in this huge market have been affected by the economy, raw-materials costs and the tendency of consumers to hang onto their vehicles longer in an effort to conserve their cash. The result has been some movement away from overly complex and large combinations and toward simpler, more functional tire and wheel pairings.

Wheels

“The wheel market has been somewhat stagnant for the last two years,” said Myles Kovacs, president and co-founder of DUB magazine and part owner of wheel companies TIS and Dropstars. “It’s been like the fashion industry, which goes retro when it gets stagnant. The old-school musclecar influences have come back. And if you look at the Japanese segment, the Hellaflush trend is returning, with wide rims, deep offsets and really stretched tires.”

Joe Schaefer, president and CEO of Konig American and chair-elect of SEMA’s Wheel & Tire Council (WTC), said that his company also sees the cyclical nature of the market.

“Right now, it seems that some of the directional styles might be on the next wave, but it’s also safe to say that cleaner is in right now,” Schaefer said. “People are looking for clean, aggressive fitments that graduate their vehicles to that next level.”

The off-road and 4x4 category has been one area of significant growth in wheels, but even that part of the industry has seen a movement toward cleaner looks and styles that were in vogue a decade ago.

“The off-road scene is over bling and big wheels,” said Fred Williams, technical editor for Petersen’s 4-Wheel & Off-Road magazine. “A strong, light, rugged 17-in. wheel is perfect for most, and they are available in a variety of bolt patterns, backspacings and locked or unlocked bead styles. Steel wheels will always have a place for the lower-budget off-roader due to their strength, and going fast off-road has spawned an interest in high-quality forged wheels that can take abuse without adding unsprung weight, but that demand is often hindered by cost. A strong, light, carbon-fiber off-road beadlock wheel that can withstand serious abuse would be great to see.”

On the passenger-car side, manufacturers have been seeing increased demand for concave and European designs.

	Clean designs and the continuation of black finishes are two of the trends that are currently prevalent in the wheel market. Courtesy of Konig American

“Machined faces and combinations with clean styling and lines are very much the heavy trend in passenger-car applications,” said Joe Podiovits, sales manager for Prestige Autotech Corp. “Painted wheels with milled window designs have spurred a dramatic increase in the number of sales and the number of companies now offering these types of finishes. Flat black is still tremendously popular, and wheels with inserts offer a very affordable way to give styling options without the heavy cost of new molds.”

Manufacturing costs are one of the areas where the economy has taken a toll in the industry, and finding ways to improve efficiency while reducing weight for better fuel economy are high on the lists of most of the top-flight brands.

“The trend toward forged, spin-forged and rotary-forged wheels continues,” said Wayne Williams of ExSell Marketing. “This process helps create strong wheels with less unsprung weight that provide a quality ride for today’s more sophisticated suspensions. There is also more one-piece construction with a two-piece appearance, providing a more expensive look at a lower price, and more wheel manufacturers are now having ‘blank’ wheels produced overseas to take advantage of lower labor costs and then performing the finish and drilling procedures locally, which greatly assists in inventory management and helps reduce back-order situations.”

Schaefer said that many of the gains in wheel construction are being created by companies that have the resources to engage in intensive research and development.

“With an ever-increasing need to make cars more fuel efficient, Konig spends a great deal of time searching for ways to increase wheel strength while decreasing the amount of aluminum used. It is surprising how a change in even a small radius can sometimes result in additional strength.”

Schaefer said that his company is also using a process called MAT Technology, which was developed by Enkei Japan. In that system, the wheel is spun and the barrel is squeezed between two dies, increasing strength and reducing the amount of material required.

Another technology innovation involves a revised finishing process. Prestige Autotech Corp. President and CEO Fenton Leffick said that the Detroit automakers and most of the recreational-vehicle converters are increasingly replacing conventional chrome with physical vapor deposition (PVD), which deposits a thin metal or alloy coating onto the wheel.

“They call it ‘vacuum chrome,’” Leffick said. “Applied properly, it holds up in the winter salt country much better than chrome.”

Podiovits added that, regardless of technology, cast wheels are still the industry sales leader due to cost and will likely remain so, but he said that mono-block forged wheels and multi-piece brands offer the benefit of reduced start-up costs and minimal reduction requirements, so they are gaining popularity with manufacturers.

Because the design area seems to have hit a lull, some in the wheel community have looked to their marketing options to help spur sales. Kovacs said that he has entered into a licensing agreement with drink manufacturer Monster Energy as a way to innovate.

“I wanted to get into the off-road space, but I opted to go with Monster Energy instead of just taking TIS and Dropstars there,” he said. “That allowed us to become kind of an extension of their marketing and branding for X Games, action sports and off-road racing. We became part of their team. It’s about the cool factor and the association with the brand.”

There is no single, standout direction in tires within the off-road market. Each subsegment requires its own design. “The crossing of rock crawling with desert racing has many rock wheelers looking for extreme traction while surviving high-speed racing to and from the trailhead,” said Fred Williams, technical editor for Petersen’s 4-Wheel & Off-Road Magazine. Courtesy of Petersen’s 4-Wheel & Off-Road magazine.

Schaefer and Williams pointed to social media and the Internet as more-frequently used marketing tools. Wheel and tire manufacturers and retailers benefit from tuning into their customers’ needs and concerns using social media, blogs, forums and websites, they said, offering customers not only information, but also a unique way of becoming part of a company’s planning and design process.

“Wheel manufacturers are reworking their websites and relying more and more on configurators that allow retailers, e-tailers and end users to view wheels on the vehicles they own,” said Williams, who pointed out that the wheel business is not as simple as it once was. “With tire-pressure monitoring systems (TPMS), increased staggered fitments, run-flat tires, specific load ratings and more sensitive suspensions, the wheel business is becoming more and more sophisticated,” he said. “This isn’t the ’90s, where a cheap tire and any 20-in. chrome wheel from China just get slapped onto a Tahoe and away we go. Wheel manufacturers can no longer build thousands of commodity wheels and place them in a warehouse hoping they sell. It’s too easy to guess wrong.”

Diversification provides one way for dealers to augment their businesses and find new ways to be profitable, Podiovits said.

“One-dimensional selling has become a thing of the past,” he explained. “If the pace your running now won’t get you to the finish line, find a new way to run the race. Find new ways to sell and be profitable, such as adding online retailing, restyling to auto dealers in your local market and learning how to install lift kits and other suspension components.”

Tires

Pricing is a unanimous conversational theme among industry tire experts. Serial increases have hindered the market across North America over the past year, and that has created a strain on retailers who are struggling to move even the most basic tires, let alone ultra-high-performance lines.

“The majority of consumers have been locked in on saving money wherever they can,” said Jim Smith, editor of Tire Review magazine. “Consumers are keeping their vehicles longer, so a lot of money is going into basic repairs and maintenance. In fact, there is growing concern that consumers are holding onto their tires a bit too long. With growing tire prices, more and more vehicles are on the road with dodgy tires.”

Kevin Rohlwing, senior vice president of training for the Tire Industry Association (TIA), said that those price increases are directly related to the cost of raw materials and transportation.

“Even though natural rubber prices have dropped to under $2 a pound, it was just $.58 just three years ago and went as high as $2.80 in early 2011,” he said. “When you add in the price of crude oil and the energy to heat the molds, the costs keep going up so that there doesn’t appear to be any end in sight.”

Environmental concerns have coupled with economics to propel the hottest categories in current tire technology, according to most experts.

“All of the tire companies are developing eco tires and lower-rolling-resistance (LRR) tires to reduce their total corporate carbon footprint and improve vehicle fuel economy,” said David E. Zielasko, editor and vice president/publisher of Tire Business magazine. “But they are also anticipating a new federal tire-labeling regulation that will include a fuel-economy rating. The industry is waiting for the final version of the regulation from the National Highway Traffic Safety Administration [NHTSA].”

Rohlwing said that the industry should also be aware of a recent letter from the NHTSA regarding the interpretation of the “knowingly make inoperative” provision when servicing tires on vehicles that have TPMS. The NHTSA holds that if a TPMS is functioning at the time of an aftermarket tire and wheel purchase, “a service provider would violate the ‘make inoperative’ prohibition of 49 USC 30122(b) by installing new tires and wheels that do not have a functioning TPMS system.”

“It’s important that every tire installer understand that custom tire and wheel packages must include TPMS sensors that will allow the system to operate following installation,” Rohlwing said. “In other words, if the system was working before the new tires and wheels were installed, it must be working after.”

	Falken Tire Corp. previewed its Azenis PT722 A/S at the 2011 SEMA Show. The premium ultra-high-performance touring tire is representative of a market that is seeing some growth despite price increases that have hampered the industry. Courtesy of Falken Tire Corp.

While following those provisions may further elevate service costs, Zielasko also pointed to elevated U.S. tariffs on imported Chinese-made passenger and light-truck tires as contributors to higher prices of entry-level tires. The tariffs currently stand at 29%, he said, so the reduction in Chinese products has been replaced with imports from other Asian countries, such as South Korea, Indonesia, Thailand and Taiwan. The tariffs are scheduled to return to the 4% level in September 2012, which may mitigate that part of the pricing conundrum.

Hank Feldman, president of retail dealership Performance Plus Tire, said that he has been in the business for four decades and has never before seen the nearly double-digit price increases that occurred twice in 2011. In addition, he has seen stories in the tire trade publications indicating that tire manufacturers will be offering rebates to consumers as a way to offset the price increases, though, that strategy doesn’t offer much help to the profit picture for the retail community.

“We’re also seeing mileage warranties on even some of the ultra-high-performance products,” he said. “Because they’re so confident of their products, virtually all of the suppliers are putting 500-mile trial rides on their tires.”

Bob Ulrich, editor of Modern Tire Dealer, said that there is a trend toward selling tires and wheels as a single package, especially over the Internet, and some enthusiasts who buy wheels without also considering the cost of the tires to go with them may experience severe sticker shock.

“There are no more ‘Four for $100’ promotions,” he said. “In fact, you’re lucky if you can get a ‘Four for $400’ deal. Low-end tires are even more expensive, comparatively. Part of the reason is the increase in raw material costs, of course, but domestic manufacturers have greatly reduced low-cost radial production, leaving that end of the market to overseas tire makers. The transportation costs and the tariffs on consumer imports from China add to the price.”

Tire Review’s Smith said that LRRs and touring tires for small SUVs and CUVs are the hottest categories currently. The quickly growing consumer acceptance of those smaller vehicles shows that American drivers want to balance the utility afforded by their old midsize and large SUVs with better fuel economy, and they see LRR tires as an important tool in the battle against rising gas prices.

In the off-road arena, tires are a mainstay for enthusiasts. 4-Wheel & Off-Road’s Williams pointed out that websites and forums allow buyers to share information about what they like or dislike from their tires.

“Though a huge portion of off-road purchases are based on aesthetics, performance cannot be ignored,” he said. “I’ve always felt that you could put big, aggressive tires on any vehicle, and it will look like a 4x4, but the diversity of the off-road market doesn’t have one standout direction in tires. Mud guys are going bigger and bigger. The crossing of rock crawling with desert racing has many rock wheelers looking for extreme traction while surviving high-speed racing to and from the trailhead. Overland or expedition enthusiasts are looking for high-mileage tires that can support added weight, and the daily-driven truck guys are interested in a 35- to 37-in. tire for fullsize trucks with leveling kits, but they still need E load ratings for towing.”

Of course, the Internet communities and research sources that Williams referred to are just as prevalent among other segments.

“The Internet has changed the whole world, and social media has become a big issue,” Feldman said. “I told my staff years ago that if you upset one customer, he would tell 10 of his friends. Now they’ll tell a million people on the Internet. But you can also make lemonade out of lemons. We want our customers to go to social media sites to talk positively about us, because we’ve always been very customer-service oriented. We believe that if they get the word out, it will drive more traffic to our stores. And it has. We’ve seen it.”

	Myles Kovacs licensed with drink maker Monster Energy to extend that company’s marking and branding to his TIS and Dropstars wheel companies as a way to innovate in a somewhat stagnant market. Courtesy of DUB Magazine

Feldman said that the continued proliferation in tire sizing has given dealers another obstacle to overcome. To cover the marketplace, a dealer has to offer many more sizes than it did only a few years ago, and that creates difficulties in inventory control.

“If you have to go good, better, best, it can be overwhelming,” he said. Fortunately, his very large operation in Southern California can count on a distribution network that provides twice-a-day delivery “I don’t know whether that exists in other markets around the country,” he said, “but we certainly enjoy it here.”

Retailers must also be highly attuned to the benefits of training, Rohlwing said, because lives are at stake when tires and wheels are installed or serviced.

“TIA is embarking on a 28-city training tour throughout 2012 to educate retailers on the proper procedures for servicing passenger and light-truck tires and wheels as well as TPMS,” he said. “Retailers can send a key employee to a four-day class at a local community or technical college to become a TIA Certified Instructor, which will give the dealership a qualified in-house ‘expert’ to train technicians and establish the procedures for every employee.”

Feldman said that the Internet also presents an opportunity to educate his
company’s technicians.

“We have a program in place where our guys are required to take a certain amount of online training and are rewarded if they exceed the requirements,” he said. “Most of the rubber companies have comprehensive e-training programs that we can access, and we provide a couple of laptops that our staff can check out if they want to train at home. We’re also expanding our automotive services.”

In fact, said Rohlwing, tire dealers that don’t perform vehicle repair and maintenance services are at a huge disadvantage.

“The most successful independent retailers count on tire sales for only a small percentage of overall sales,” he said. “The bulk of their revenue comes from repairing and maintaining vehicles. If dealers can make exceptional customer service part of their brand, they don’t always have to compete on price. Many consumers are willing to pay a little more if they believe they are receiving something extra that the chain stores cannot offer.”

At this stage of the economic recovery, offering something extra may make all the difference.

SEMA News—February 2012

Market Trends in Tires and Wheels

Over the past couple of years, the trends in this huge market have been affected by the economy, raw-materials costs and the tendency of consumers to hang onto their vehicles longer in an effort to conserve their cash. The result has been some movement away from overly complex and large combinations and toward simpler, more functional tire and wheel pairings.

Wheels

“The wheel market has been somewhat stagnant for the last two years,” said Myles Kovacs, president and co-founder of DUB magazine and part owner of wheel companies TIS and Dropstars. “It’s been like the fashion industry, which goes retro when it gets stagnant. The old-school musclecar influences have come back. And if you look at the Japanese segment, the Hellaflush trend is returning, with wide rims, deep offsets and really stretched tires.”

Joe Schaefer, president and CEO of Konig American and chair-elect of SEMA’s Wheel & Tire Council (WTC), said that his company also sees the cyclical nature of the market.

“Right now, it seems that some of the directional styles might be on the next wave, but it’s also safe to say that cleaner is in right now,” Schaefer said. “People are looking for clean, aggressive fitments that graduate their vehicles to that next level.”

The off-road and 4x4 category has been one area of significant growth in wheels, but even that part of the industry has seen a movement toward cleaner looks and styles that were in vogue a decade ago.

“The off-road scene is over bling and big wheels,” said Fred Williams, technical editor for Petersen’s 4-Wheel & Off-Road magazine. “A strong, light, rugged 17-in. wheel is perfect for most, and they are available in a variety of bolt patterns, backspacings and locked or unlocked bead styles. Steel wheels will always have a place for the lower-budget off-roader due to their strength, and going fast off-road has spawned an interest in high-quality forged wheels that can take abuse without adding unsprung weight, but that demand is often hindered by cost. A strong, light, carbon-fiber off-road beadlock wheel that can withstand serious abuse would be great to see.”

On the passenger-car side, manufacturers have been seeing increased demand for concave and European designs.

	Clean designs and the continuation of black finishes are two of the trends that are currently prevalent in the wheel market. Courtesy of Konig American

“Machined faces and combinations with clean styling and lines are very much the heavy trend in passenger-car applications,” said Joe Podiovits, sales manager for Prestige Autotech Corp. “Painted wheels with milled window designs have spurred a dramatic increase in the number of sales and the number of companies now offering these types of finishes. Flat black is still tremendously popular, and wheels with inserts offer a very affordable way to give styling options without the heavy cost of new molds.”

Manufacturing costs are one of the areas where the economy has taken a toll in the industry, and finding ways to improve efficiency while reducing weight for better fuel economy are high on the lists of most of the top-flight brands.

“The trend toward forged, spin-forged and rotary-forged wheels continues,” said Wayne Williams of ExSell Marketing. “This process helps create strong wheels with less unsprung weight that provide a quality ride for today’s more sophisticated suspensions. There is also more one-piece construction with a two-piece appearance, providing a more expensive look at a lower price, and more wheel manufacturers are now having ‘blank’ wheels produced overseas to take advantage of lower labor costs and then performing the finish and drilling procedures locally, which greatly assists in inventory management and helps reduce back-order situations.”

Schaefer said that many of the gains in wheel construction are being created by companies that have the resources to engage in intensive research and development.

“With an ever-increasing need to make cars more fuel efficient, Konig spends a great deal of time searching for ways to increase wheel strength while decreasing the amount of aluminum used. It is surprising how a change in even a small radius can sometimes result in additional strength.”

Schaefer said that his company is also using a process called MAT Technology, which was developed by Enkei Japan. In that system, the wheel is spun and the barrel is squeezed between two dies, increasing strength and reducing the amount of material required.

Another technology innovation involves a revised finishing process. Prestige Autotech Corp. President and CEO Fenton Leffick said that the Detroit automakers and most of the recreational-vehicle converters are increasingly replacing conventional chrome with physical vapor deposition (PVD), which deposits a thin metal or alloy coating onto the wheel.

“They call it ‘vacuum chrome,’” Leffick said. “Applied properly, it holds up in the winter salt country much better than chrome.”

Podiovits added that, regardless of technology, cast wheels are still the industry sales leader due to cost and will likely remain so, but he said that mono-block forged wheels and multi-piece brands offer the benefit of reduced start-up costs and minimal reduction requirements, so they are gaining popularity with manufacturers.

Because the design area seems to have hit a lull, some in the wheel community have looked to their marketing options to help spur sales. Kovacs said that he has entered into a licensing agreement with drink manufacturer Monster Energy as a way to innovate.

“I wanted to get into the off-road space, but I opted to go with Monster Energy instead of just taking TIS and Dropstars there,” he said. “That allowed us to become kind of an extension of their marketing and branding for X Games, action sports and off-road racing. We became part of their team. It’s about the cool factor and the association with the brand.”

There is no single, standout direction in tires within the off-road market. Each subsegment requires its own design. “The crossing of rock crawling with desert racing has many rock wheelers looking for extreme traction while surviving high-speed racing to and from the trailhead,” said Fred Williams, technical editor for Petersen’s 4-Wheel & Off-Road Magazine. Courtesy of Petersen’s 4-Wheel & Off-Road magazine.

Schaefer and Williams pointed to social media and the Internet as more-frequently used marketing tools. Wheel and tire manufacturers and retailers benefit from tuning into their customers’ needs and concerns using social media, blogs, forums and websites, they said, offering customers not only information, but also a unique way of becoming part of a company’s planning and design process.

“Wheel manufacturers are reworking their websites and relying more and more on configurators that allow retailers, e-tailers and end users to view wheels on the vehicles they own,” said Williams, who pointed out that the wheel business is not as simple as it once was. “With tire-pressure monitoring systems (TPMS), increased staggered fitments, run-flat tires, specific load ratings and more sensitive suspensions, the wheel business is becoming more and more sophisticated,” he said. “This isn’t the ’90s, where a cheap tire and any 20-in. chrome wheel from China just get slapped onto a Tahoe and away we go. Wheel manufacturers can no longer build thousands of commodity wheels and place them in a warehouse hoping they sell. It’s too easy to guess wrong.”

Diversification provides one way for dealers to augment their businesses and find new ways to be profitable, Podiovits said.

“One-dimensional selling has become a thing of the past,” he explained. “If the pace your running now won’t get you to the finish line, find a new way to run the race. Find new ways to sell and be profitable, such as adding online retailing, restyling to auto dealers in your local market and learning how to install lift kits and other suspension components.”

Tires

Pricing is a unanimous conversational theme among industry tire experts. Serial increases have hindered the market across North America over the past year, and that has created a strain on retailers who are struggling to move even the most basic tires, let alone ultra-high-performance lines.

“The majority of consumers have been locked in on saving money wherever they can,” said Jim Smith, editor of Tire Review magazine. “Consumers are keeping their vehicles longer, so a lot of money is going into basic repairs and maintenance. In fact, there is growing concern that consumers are holding onto their tires a bit too long. With growing tire prices, more and more vehicles are on the road with dodgy tires.”

Kevin Rohlwing, senior vice president of training for the Tire Industry Association (TIA), said that those price increases are directly related to the cost of raw materials and transportation.

“Even though natural rubber prices have dropped to under $2 a pound, it was just $.58 just three years ago and went as high as $2.80 in early 2011,” he said. “When you add in the price of crude oil and the energy to heat the molds, the costs keep going up so that there doesn’t appear to be any end in sight.”

Environmental concerns have coupled with economics to propel the hottest categories in current tire technology, according to most experts.

“All of the tire companies are developing eco tires and lower-rolling-resistance (LRR) tires to reduce their total corporate carbon footprint and improve vehicle fuel economy,” said David E. Zielasko, editor and vice president/publisher of Tire Business magazine. “But they are also anticipating a new federal tire-labeling regulation that will include a fuel-economy rating. The industry is waiting for the final version of the regulation from the National Highway Traffic Safety Administration [NHTSA].”

Rohlwing said that the industry should also be aware of a recent letter from the NHTSA regarding the interpretation of the “knowingly make inoperative” provision when servicing tires on vehicles that have TPMS. The NHTSA holds that if a TPMS is functioning at the time of an aftermarket tire and wheel purchase, “a service provider would violate the ‘make inoperative’ prohibition of 49 USC 30122(b) by installing new tires and wheels that do not have a functioning TPMS system.”

“It’s important that every tire installer understand that custom tire and wheel packages must include TPMS sensors that will allow the system to operate following installation,” Rohlwing said. “In other words, if the system was working before the new tires and wheels were installed, it must be working after.”

	Falken Tire Corp. previewed its Azenis PT722 A/S at the 2011 SEMA Show. The premium ultra-high-performance touring tire is representative of a market that is seeing some growth despite price increases that have hampered the industry. Courtesy of Falken Tire Corp.

While following those provisions may further elevate service costs, Zielasko also pointed to elevated U.S. tariffs on imported Chinese-made passenger and light-truck tires as contributors to higher prices of entry-level tires. The tariffs currently stand at 29%, he said, so the reduction in Chinese products has been replaced with imports from other Asian countries, such as South Korea, Indonesia, Thailand and Taiwan. The tariffs are scheduled to return to the 4% level in September 2012, which may mitigate that part of the pricing conundrum.

Hank Feldman, president of retail dealership Performance Plus Tire, said that he has been in the business for four decades and has never before seen the nearly double-digit price increases that occurred twice in 2011. In addition, he has seen stories in the tire trade publications indicating that tire manufacturers will be offering rebates to consumers as a way to offset the price increases, though, that strategy doesn’t offer much help to the profit picture for the retail community.

“We’re also seeing mileage warranties on even some of the ultra-high-performance products,” he said. “Because they’re so confident of their products, virtually all of the suppliers are putting 500-mile trial rides on their tires.”

Bob Ulrich, editor of Modern Tire Dealer, said that there is a trend toward selling tires and wheels as a single package, especially over the Internet, and some enthusiasts who buy wheels without also considering the cost of the tires to go with them may experience severe sticker shock.

“There are no more ‘Four for $100’ promotions,” he said. “In fact, you’re lucky if you can get a ‘Four for $400’ deal. Low-end tires are even more expensive, comparatively. Part of the reason is the increase in raw material costs, of course, but domestic manufacturers have greatly reduced low-cost radial production, leaving that end of the market to overseas tire makers. The transportation costs and the tariffs on consumer imports from China add to the price.”

Tire Review’s Smith said that LRRs and touring tires for small SUVs and CUVs are the hottest categories currently. The quickly growing consumer acceptance of those smaller vehicles shows that American drivers want to balance the utility afforded by their old midsize and large SUVs with better fuel economy, and they see LRR tires as an important tool in the battle against rising gas prices.

In the off-road arena, tires are a mainstay for enthusiasts. 4-Wheel & Off-Road’s Williams pointed out that websites and forums allow buyers to share information about what they like or dislike from their tires.

“Though a huge portion of off-road purchases are based on aesthetics, performance cannot be ignored,” he said. “I’ve always felt that you could put big, aggressive tires on any vehicle, and it will look like a 4x4, but the diversity of the off-road market doesn’t have one standout direction in tires. Mud guys are going bigger and bigger. The crossing of rock crawling with desert racing has many rock wheelers looking for extreme traction while surviving high-speed racing to and from the trailhead. Overland or expedition enthusiasts are looking for high-mileage tires that can support added weight, and the daily-driven truck guys are interested in a 35- to 37-in. tire for fullsize trucks with leveling kits, but they still need E load ratings for towing.”

Of course, the Internet communities and research sources that Williams referred to are just as prevalent among other segments.

“The Internet has changed the whole world, and social media has become a big issue,” Feldman said. “I told my staff years ago that if you upset one customer, he would tell 10 of his friends. Now they’ll tell a million people on the Internet. But you can also make lemonade out of lemons. We want our customers to go to social media sites to talk positively about us, because we’ve always been very customer-service oriented. We believe that if they get the word out, it will drive more traffic to our stores. And it has. We’ve seen it.”

	Myles Kovacs licensed with drink maker Monster Energy to extend that company’s marking and branding to his TIS and Dropstars wheel companies as a way to innovate in a somewhat stagnant market. Courtesy of DUB Magazine

Feldman said that the continued proliferation in tire sizing has given dealers another obstacle to overcome. To cover the marketplace, a dealer has to offer many more sizes than it did only a few years ago, and that creates difficulties in inventory control.

“If you have to go good, better, best, it can be overwhelming,” he said. Fortunately, his very large operation in Southern California can count on a distribution network that provides twice-a-day delivery “I don’t know whether that exists in other markets around the country,” he said, “but we certainly enjoy it here.”

Retailers must also be highly attuned to the benefits of training, Rohlwing said, because lives are at stake when tires and wheels are installed or serviced.

“TIA is embarking on a 28-city training tour throughout 2012 to educate retailers on the proper procedures for servicing passenger and light-truck tires and wheels as well as TPMS,” he said. “Retailers can send a key employee to a four-day class at a local community or technical college to become a TIA Certified Instructor, which will give the dealership a qualified in-house ‘expert’ to train technicians and establish the procedures for every employee.”

Feldman said that the Internet also presents an opportunity to educate his
company’s technicians.

“We have a program in place where our guys are required to take a certain amount of online training and are rewarded if they exceed the requirements,” he said. “Most of the rubber companies have comprehensive e-training programs that we can access, and we provide a couple of laptops that our staff can check out if they want to train at home. We’re also expanding our automotive services.”

In fact, said Rohlwing, tire dealers that don’t perform vehicle repair and maintenance services are at a huge disadvantage.

“The most successful independent retailers count on tire sales for only a small percentage of overall sales,” he said. “The bulk of their revenue comes from repairing and maintaining vehicles. If dealers can make exceptional customer service part of their brand, they don’t always have to compete on price. Many consumers are willing to pay a little more if they believe they are receiving something extra that the chain stores cannot offer.”

At this stage of the economic recovery, offering something extra may make all the difference.

2011 Global Media Awards

Other top winners included Auto Meter and Palmer Performance Engineering, each with seven awards, followed by Race Ramps and Smittybilt with six votes each. Included among the crop of SEMA Show exhibitors with international bragging rights were 21 first-time exhibitors. First-time Racing & Performance exhibitor OZMO Engineering garnered four votes—the highest among first-year exhibitors—for its carbon-fiber intake manifold, which the winning firm noted was fully designed using the SEMA Technology Transfer program, allowing all prototypes to be made without any physical measurements being taken.

SEMA News talked to some of the journalists about the products they selected and why they believe they would sell especially well in their home markets.

The Americas: Brazil

Eduardo Bernasconi, Fullpower

Miguel Ricardo Puerta, Carstereo/SuperSpeed/Hot Rods Magazines

Canada

Kevin Willey, Two Shoes Innovations

• ARB 4x4 Accessories, ARB Maximum Airflow Portable Compressor: “Once people come off the trail, airing back up is always an issue, and the market is flooded with poor methods of getting the tire back to road use. ARB has solved that issue, as one would expect from a market leader in off-road equipment. This is an all-in-one solution for getting back to highway pressures quickly, with the added bonus of knowing the same self-contained unit can power air tools should the requirement present itself. Air up with ease and help your friends who are waiting on tiny, inefficient pretenders. ARB has hit one out of the park again—as one would expect.”
• Ark Corp., Arkpak: “Arkpak had a winner with its last battery box/charger combination, a versatile power unit for almost any requirement, whether camping, fishing or hunting. The new battery box/charger changes the game with its display of time left in the charge or time left to full charge. This evolution of the original will provide for almost any power need at home or away. I have used the original during off-road expeditions since it hit the market, and I, for one, cannot wait to get the new model.”
• Bracketron Inc., Twist360: “Call me old school, but I just can’t seem to be able to hold on to a tablet and use it, too. Must be too used to having a screen in a laptop configuration. This bracket solves that issue for me and also allows for using a USB keyboard—handy, that. The bracket will also allow for easy in-car mounting and using your tablet as a GPS with a screen large enough to actually see.”
• Bracketron Inc., Universal Tablet Headrest Mount: “Keeping the kids entertained on long trips has always been a daunting task. That should no longer be an issue; just attach any tablet computer to the bracket, and the kids can watch all the movies they can stand. Great way to avoid the ‘are we there yet’ syndrome.”
• Mac’s Custom Tie Downs, Mac’s Jeep Box: “Finally, someone has realized that in-vehicle secure storage can be done with aluminum. Big, heavy, steel boxes are not required, and the difference in weight may not be such a big deal at first glance, but it really adds up when you consider the gas savings over the life of the vehicle. I have shed more than 200 lbs. by changing out my steel storage boxes for aluminum in my off-road expedition vehicle. Lighter overall vehicle weight equals greater mileage and fewer visits to the pump. The addition of the tie-downs on the top is a real bonus. Very well thought out and well executed. All-American is an added bonus.”
• Motor City Products/US Speedo, Spotlight “Search”: “No more hunting for a flashlight in the car: It’s in the lighter socket, right where you left it. (That almost sounds like something my wife would tell me.) Hard to say much more about a product that is handy when you need it and not lost in the bottom of a console or glovebox.”
• Omix-Ada/Rugged Ridge, Overhead Storage Console for Jeep: “Easy to install, functional—something every Jeep owner should have. The net that covers the opening is actually big enough to enclose the contents, and the liner stops those annoying rattles. This overhead console is simply the best way to store those things we use most often and keep them within reach.”
• Sprintex Superchargers, JK Jeep Supercharger: “I have to admit that I saw the mini version in a shop a friend owns. His business has been in operation for decades, and he sells only the very best. So when he told me that a version for a Jeep was going to be unveiled at this year’s SEMA Show, I had to check it out. One never knows when just a little extra is going to be required from your Jeep engine, and the cool factor is way up there, as well. This supercharger has to be the easiest to install I have ever seen, coming complete with full instructions and definitely a driveway upgrade. Extra power and torque, both on-road and off-, is always a good thing.”
• Stone River Gear LLC, Lasered Damascus Ceramic Folding Knife SRG1TDL: “I admit it: I am a knife guy. This folding knife is one of the best I have seen. Everything from the Lasered-Damascus-look case to the ceramic blade whispered to me. This knife is art, and it’s functional, too. This is a beautiful knife that anyone would be proud to own, I have to send a link to my wife. Hope she gets the hint. Simply superb.”
• Superwinch LLC, Tiger Shark 17500 Winch: “Anyone who knows about off-road recovery will insist on a Superwinch. They work every time without fail in my experience during more than 25 years off-road. I cannot count the number of times ‘other’ winches have failed when trying to recover a vehicle. With the 17500 winch, pulling power will no longer be a consideration.”

Mexico

Angel Alcala, Supercar

• Pleasant Grove, Utah–based Palmer Performance Engineering’s new DashCommand won seven awards at this year’s SEMA Show. Proudly showing off their success, company representatives posed with SEMA Vice President of Communications and Events Peter MacGillivray (far right).

  AFCO Racing/Dynatech, ’11 6.4L Dodge Challenger Long-Tube Header System: “This beautifully designed header is essential to the good performance of the SRT line of Challengers. It should increase the performance of this powerful motor in a drastic way. The car is very popular in Mexico, and this would be a great product in our country.”
• Auto Meter Products, Nostalgia Series Tri-5 Mounting Solution: “This is a beautiful product that provides precision and control for correct engine readings—an essential feature on the racetrack as well as in everyday use. In addition, it’s perfectly built and has a very nice finish. This product provides the opportunity to rebuild a handsome and elegant dashboard for various custom car projects.”
• Baer Brake Systems, Full-Floating Rearend Conversion: “The combination of engineering and the well-applied design gives the product efficiency, intelligence and esthetic attraction, representing all the functions that good brakes should have.”
• Billy Boat Performance, Performance Exhaust: “An attractive design and a fine finish can be seen in this beautiful escape [header] that is crucial to improve and make more efficient the performance of any vehicle. These products contribute to the fuel savings and clean sound operation of the motor as well as redefine and stylize it.”
• Dakota Digital Inc., VHX Hybrid Instrument System, ’66–’77 Ford Bronco: “For those classic models that are indispensable, correct readings and good illumination in conjunction with an attractive exterior design are of good taste. I liked the finished product a lot.”
• McGaughys Suspension, ’09–’12 F-150 6.5-in. Lift Kit: “With a beautiful and robust design, this product gives solidity and better performance to large 4x4 vehicles in addition to being apparently easy to install.”
• MSD Ignition, Atomic EFI: “This is the perfect injection system for 4x4 off-road purposes. With sensational style and design as well as a great finish, this system increases the power and efficiency of much of the fuel usage and gives various improved advantages.”
• Nelson Racing Engines Inc., Patented Mirror Image Turbos: “The turbo is one of the most intelligent tools for fuel efficiency. These twin turbos seem to be a great solution to the lethargy of a simple turbo, and they look great in the engine. They substantially increase the power of any engine, enabling take-off with spectacular torque.”
• PLX Devices Inc., XWave Sonic: “Everything should be within an arm’s reach, and this product places a simple, easy and portable instrument at your service inside your smartphone, giving you the capacity of an easy and instantaneous reading. Intelligent and accessible.”
• SLP Performance Parts Inc., High-Output Superchargers for Camaro/Corvette/GM Truck/Challenger and Mustang: “This supercharger enables musclecars to really take off, turning them into super cars with incredible power. The torque achieved should be exceptional, and it can be used in various models—making it convenient and commercially popular. It would be a widely sold product in Mexico!”

Daniel Garcia Solis, V8 Musclecars

• Auto Meter Products, Universal 3 Gauge Mounting Solution: “Observing the quality of restoration that some mechanics carry out in Mexico, I can assert that Auto Meter has earned a place in our market. Many use the brand for hot rods and street rods. Personally, I really like the aesthetics and definition offered by the indicators and, above all, the easy installation.”
• CFR Performance, Chevy Small-Block Complete Pulley, Bracket & Pump Set (LWP): “This type of accessory with a chrome finish reflects without a doubt the great power that can be offered by the motor. I’m sure that consumers are calling a lot of attention to the aesthetics so that the automobile can look as good as possible. There are more and more restorers each day that are using these auto parts.”
• Intro-Tech Automotive Inc., Pitstop Furniture: “I liked this product and think that it is very interesting. I see it as something new in the market because there are people in business who want a very original chair or desk to attend to their clients. It has good appearance, yet it is still very comfortable.”
• Optima Batteries, Optima Chargers Digital 1200 Battery Charger: “I want one of these chargers! I think that it will be very useful to have this tool in the car. It is a prevention method in case the battery dies. This happens a lot in camping. In addition, Optima is already a very recognized brand.”
• Specialty Auto Parts USA Inc./Proform, Chevy Orange Small-Block Engine Dress-up Kit: “I love this type of product because it offers a great view and finish to the machine. As opposed to the common accessory, this auto brand reaffirms that the engine has remained restored with a spectacular look.”
• Specialty Wheel LLC, Artillery Wheel: “The market for this type of product is growing, and there are more and more restorers and enthusiasts seeking auto parts that are light as well as new. That is to say, they are avoiding looking for old pieces that are oxidized. Now we can include products like this, adapted for small vintage trucks.”
• SuperSpare Tire Repair, SuperSpare Tire Repair: “Upon selecting this product, I observed the following qualities: ingenious, reusable, comfortable, not dangerous and versatile. There is a lot of comfort when inflating the rim and, therefore, a lot of risk is avoided when making the repair. It’s an ecological product and well thought out.”
• TMI Products Inc., ’64–’93 Mustang Pony Sport Seat Upholstery & Foam: “There is an emerging Mexican market for this kind of product. We have many Mustang clubs that would love to find out that there are comfortable seats specifically designed for the Pony. Just buy it, and install it. There’s nothing to restore—this seat looks brand new, like it came right from the dealership.”
• United Pacific Industries Inc., ’70–’73 Camaro LED Taillight: “I liked this accessory because it is a modern touch for a classic rearview mirror. I think that it gives a vanguard result by combining an antique with a modern look. In Mexico, many restorers will be attracted by this product.”
• Workshop Hero, a Division of Armor Protective Packaging, Metal Rescue Rust Remover Bath: “This liquid is fabulous and very innovative because it gives you the ability to remove corrosion and rust from completely deteriorated car parts. I recommend it for our market because with this liquid, it won’t be necessary to buy a new part.”

Venezuela

Henry Pierini, AutoZulia

• Five different products launched by Smittybilt at this year’s SEMA Show won Global Media Awards. Company representatives received their awards and posed for a picture with Bill Miller (right) at the SEMA International Happy Hour.

  2Go Keyless, 2Go Keyless Push Button Start System: “I like this because it is a product that can be adapted to any economy vehicle, but it is a technology that usually can be seen in high-performance or luxury vehicles. It is very practical in that you only need to use one button to start the vehicle.”
• Cap-Pack Truck Products LLC, Storage System: “I like this product a lot because it is a compartment for additional cargo that is placed in the back of a small truck, but it doesn’t affect the cargo capacity since it is added to the ceiling and occupies little space. It is ideal for those who like to store work tools. Excellent!”
• Car-O-Liner Co., EVO: “This is the ideal tool to modernize mechanical workshops and bodywork repair shops. It is practical, small and has few elements, yet it is very useful when anchored to any point on a car and works with more comfort.”
• Custom Wheel Solutions, Nutek Concave Wheels: “The design of this wheel is excellent for giving a more aggressive aspect to any car. It is a good option for the personalization of vehicles.”
• Extang/TruXedo/BedRug/Undercover, UnderCover Flex: “I liked this product because it offers a cover on the rear part of the pickup in case one wanted to carry a load and protect it from climate conditions, but it can easily be folded in a few ways to occupy little space when you want to use the entire cargo space of the small truck.”
• Mito Corp., Gentex Mirror With Prodigy One Navigation: “This is a very complete product that places the navigation in a very convenient position in the rearview mirror and at the same time serves as a compass and radar and is connected with emergency communication services. It is a great technological advance.”
• Optima Batteries, Optima Chargers Digital 1200 Battery Charger: “I like it because it is a fast battery charger of practical size that helps extend the life of batteries and can still serve as a charger for other apparatuses, such as telephones and computers.”
• Palmer Performance Engineering, DashCommand: “It seems marvelous that a diagnostics team can read information from smartphones and computerized tablets. This means that they will save money, doing a scan of the vehicle in a portable way.”
• Tornador Tools, Z-020 Tornador Black: “I like this product because it is an easy way to maintain a clean interior in a car with little effort. Nowadays, the car is very valuable property and, we can extend its useful life with products such as this.”
• Workshop Hero, a Division of Armor Protective Packaging, Metal Rescue Rust Remover Bath: “It is good to include a product that cleans the oxide from certain parts of the car where it has accumulated over time. It takes maintenance into account, and that is a very important part of extending the useful life of cars.”

Europe: France

Igor Subocz, ProRider Magazine

• Ace Fuel Systems, Adjustable Fuel Injector: “All-in-one system. Easy, fast and efficient if you need to modify your fuel pressure during testing, for example. Color bands are made to simplify your life. Simple idea with great results.”
• Auto Meter Products, Universal 3 Gauge Mounting Solution: “At last, a universal system adaptable to every car, European and American, with a simple and nice design. Easy to use!”
• B&M Racing & Performance Products Inc., ’10+ Mustang Auto Plate and Stick Kit: “Old drag-style gear shift for modern sports cars. Great look and really nice design.”
• Daystar Products International, Can Cam Fuel and Water System: “An original way to carry your fuel. Cool design adaptable on many 4x4s and SUVs around the world. Original and fun idea for a product that is usually boring.”
• Flex-a-lite Consolidated, Flex-a-chill Radiator Coolant Additive (POP): “Smart idea for all of us who face cooling problems. Could be a technical solution for many problems. Smart and efficient product.”
• Kindig-It Design, Patented Smooth Door Handles: “Same opinion as the gear shift. Old-style design for modern-car solution. Change your design without mixing car brands. Could be adapted on every model. Nice and good-looking product.”
• MAcarbon, Mercedes Custom Steering Wheel and Shift Paddle Extensions: “Could be an aftermarket solution for Mercedes owners who don’t want to spend all of their accessories money in one deal. Technical, efficient and nice-looking item.”
• MGP Caliper Covers, MGP Caliper Covers: “Creativity and design for a simple but original idea. For those who hate painted calipers (I do) and want an aesthetic solution with a simple method.”
• RimPro-Tec Wheel Bands, Wheel Bands: “At last a simple and quick solution to changing your wheel lip. No paint, no stickers, no wasting time. A good bargain for a fast solution. Easy to install for great-looking lips.”
• SCT Performance, iTSX for iPhone: “The first mobile smartphone solution to modify your engine program. Smart ideas for GM and Ford companies.”

Gerry Blynberg, ProRider Magazine

• Tom Myroniak (left), SEMA vice president of member services, congratulates Michigan-based Race Ramps and poses with (from left to right) Bill Jonson, Tracy Depuydt and Jim Moberg, as the company accepts a total of six awards for three new products: the Tow Truck Flatbed Extension Ramp, 7-in. Trailer Ramp with a Flap Cut-Out and the Flatstoppers.

  Rocket Racing Wheels, Rocket Strike: “The best compromise in terms of design, quality and price.”
• OZMO Engineering, Carbon Fiber Intake Manifold: “Perfect design for a performance look.”
• Kindig-It Design, Patented Smooth Door Handles: “Nice, modern and smooth design for custom cars.”
• Holley Performance Products, NASCAR Cup Spec EFI Throttle Body: “Quality and performance: This is Holley.”
• Fidanza Engineering Corp., Short-Throw Shifter for ’10+ Camaro SS: “Good sales for Camaros in France and Europe. I think it’s a good product.”
• Donz Wheelz/Rennen International, R8 Xtreme Concave Step Lip: “Great design. Looks really nice for the European market.”
• Coker Tire, Firestone Indy Tires: “Really nice ‘vintage’ look for this tire.”
• Billet Specialties Inc., Streamline Valve Covers: “Billet Specialties always has really good products for hot rods and customs. Really smooth and cool ‘retro’ design for these valve covers.”
• Baer Brake Systems, Full-Floating Rearend Conversion: “Really good performance brakes with a nice design.”
• B&M Racing & Performance Products Inc., ’10+ Mustang Auto Plate and Stick Kit: “The Mustang is the most popular American car in France, so this is a good product for this market.”

Germany

Gregor Hebermehl, Autonews

• OZMO Engineering, Carbon Fiber Intake Manifold: “This carbon-fiber intake manifold is not just an eye-catcher. With its high-tech material, it’s perfectly in line with the current trend of light-alloy components in the automobile industry. The carbon-fiber intake manifold takes some weight off the suspension while lowering the vehicle’s center of gravity. We also liked the high quality of the exhibited item.”
• Superwinch LLC, Tiger Shark 17500 Winch: “The Tiger Shark winch gave a high-quality impression that appealed to us. In addition, its 17,500-lb. pulling force—roughly eight metric tons—is sufficient for most applications. We also liked the rollers mounted above, below and to the right and left of the cable exit point, ensuring low-friction reel-in and pay-out of the cable.”
• EWP Global Inc., Global Double Bank Grill: “Men like BBQ grills—the bigger, the better. And men like tool chests—the bigger, the better. The Double Bank Grill combines both. What a concept!”
• MAcarbon, Mercedes Custom Steering Wheel and Shift Paddle Extensions: “We like the Mercedes custom steering wheel better than many of the steering wheels made by Mercedes. The steering wheel rim is nice and thick, which makes for a good grip. The carbon-fiber insert in the upper segment looks great, and the metal center position marking adds a stylish touch. We probably don’t have to explain why a steering wheel for Mercedes vehicles is likely to be especially popular in the German market.”
• Palmer Performance Engineering, DashCommand: “Being able to easily and clearly display relevant vehicle information on a tablet PC is something we find fascinating. It puts some data into the driver’s hands that would normally be available only to a service technician. Furthermore, any technically minded car owner will obviously want to know as much as possible about his or her vehicle and its potential. Especially in Germany, with its technically obsessed car enthusiasts, DashCommand could make many new friends.”
• Mac’s Custom Tie Downs, Chassis Stabilizer: “The Chassis Stabilizer struck us as a truly smart idea. Strikingly simple by design and just as easy to install, it reliably stabilizes cars hauled on a trailer—and we all know how hard air can be under high compression.”
• Mastershift, Corvette Manual Transmission Paddle Shifter (C5/C6/Z06/ZR1): “Toggle switches make our lives easier. Toggle switches installed on the steering wheel that move along with the steering motion are just mega fun. A great idea for Corvette owners—even in Germany there are quite a lot of them. We also liked the ergonomic switch design. We suggest placing particular emphasis on processing quality in series production—something essential for the German market.”
• Monster Hooks Inc., Monster Hook: “Technical equipment that works well usually looks good, too. This is definitely true for the Monster Hook, with its pleasing design and effective functionality.”
• Bully Dog Technologies, 3-Stage Auto Nitrous Injection System: “The three-stage injection system for diesel drag race cars does exactly what technology is supposed to do: deliver performance while making the driver’s life easier. We especially liked that the system is user-configurable and works automatically once the race has started. Plus the combination of the enormous diesel torque and nitrous injection should guarantee unequalled power in the race for the finish line.”
• Intro-Tech Automotive Inc., Pitstop Furniture: “A sleek desk chair for race enthusiasts—looks like this might just be the next hot-
  selling item. Younger race fans will be especially intrigued by this individualist chair. We think this is a really cool piece of furniture. Again, let me emphasize that ensuring excellent quality in series production is of the essence—otherwise Germany will be a tough market to conquer.”

Mathias Albert, VW Speed and Tuning

• ARP Inc., Subaru EJ 2.0/2.5L Custom Age 625+ Head Stud Kit: “Easy handling!”
• Auto Meter Products, Universal Ecometer: “Great because you can use it for a lot of cars!”
• CORSA Performance, BMW Performance Exhaust: “BMW in Germany is very popular, and the BMW driver loves outstanding design.”
• Directed Electronics Inc., Viper SmartStart GPS: “Good idea, especially for Eastern Europe.”
• Fist Enterprises LLC, BIOSmartStart: “Good product for aftermarket sales. More comfortable than a key.”
• inCarBite, iPad Detachable Case and Head Rest Car Mount: “Good to use also in Europe.”
• KW Automotive North America, KW Suspensions BMW M3 E46 (’00–’06) 3 Way Clubsport: “Perfect technology for M3.”
• MITO Corp., Gentex Mirror with Prodigy One Navigation: “No more problems with a monitor. Looks clean and easy to handle.”
• RimPro-Tec Wheel Bands, Wheel Bands: “Easy way to give a new design to existing wheels.”

Norway

Espen Skogen, Bil-Revyen

• U.S. Department of Commerce representative Peter Perez (left) presented SEMA Chairman Paul “Scooter” Brothers with an honorary certificate of appreciation. One of the five recipients of the Market Development Cooperator Program (MDCP) for 2011, SEMA will receive $500,000 in matching funds over the next three years to support U.S. manufacturers that export automotive specialty-equipment products to booming emerging international markets.

  Big Time Auto Parts/Austin International Manufacturing Inc., BT-431: “This is a cool concept that provides custom car builders with a lot of flexibility, as the technology allows for all legally required lights to be in the same housing.”
• CT Johnson Enterprises Inc./Deadbolt Products, Blockhead Trailer Coupler Lock: “An elegant and clever product that should sell well all over the world. We’ve got thieves in Norway, too—and this protects your trailer while being easy to use and store.”
• Directus, Prodigy One Pro—TCT System: “This provides endless opportunities for innovative app developers. App-based in-car solutions are definitely something that’s going to get bigger and bigger—and this solution previews what is coming.”
• Escort/Beltronics Radar Detectors, Escort Live!: “We’ve had SMS-based solutions for radar warning in Norway for years, and they have been very popular. This is the future version of the text-message-based solution!”
• GoPoint Technology, BT1 With Android: “Any car enthusiast will need to decode error codes from time to time. With this product, we no longer have the need for bulky OBD cables!”
• Kindig-It Design, Patented Smooth Door Handles: “Any custom car enthusiast would love this product. I love the custom look and the ease of use. With this, you’ll easily get door handles that look like they took you forever to get right!”
• Paladin Innovations, Rescue Bit: “Any product that’s designed because the creator needed it himself is going to be good. If Rescue Bit is half as good as it looks, it will sell well in any market.”
• Phoenix Systems LLC, Hose Candy Hose Skins: “People want a custom look to their hoses but way too often end up with blue Samco hoses. That’s why we need Hose Candy.”
• RimPro-Tec Wheel Bands, Wheel Bands: “As with Hose Candy, these do two things at once: protect the wheels and add to the looks. What’s not to like?”
• Rohana Wheels, RC5: “Great wheel design that would suit an endless number of cars. The 20-in. is the go-to dimension in Europe right now for a bunch of cars, and these rims look absolutely fantastic.”

Sweden

Johan Eriksson, Bilsport 19/Bilsport Classic Magazines

• Eagle Specialty Products Inc., 429-cid Chevy LS3 Stroker Kit: “Building big horsepower on American motors—GM small-blocks in particular—has always been popular in Sweden. If this kit proves to be a more economical alternative to a complete 427ci motor, I believe it could be a hit.”
• Eibach Springs Inc., Multi-Pro-R2 Coil-Over: “As in America, ’92–’00 Honda Civics are popular as track-day cars. Today, owners tend to be a little older and/or willing to spend more money to increase handling performance with high-quality products.”
• Flaming River Industries Inc., ’63–’68 Corvette Power Rack-and-Pinion Cradle Kit: “Restoring classics to a state close to original but with technical upgrades has become increasingly popular. Products that allow improvement without cutting, welding or hammering on the original car and are easy to install would be interesting.”
• Hotchkis Sport Suspension, ’11 Camaro Convertible Race Pack TVS Kit: “The latest-generation Camaro will be exported to Europe and Sweden. It is already popular here, and while the coupe might sell in higher numbers, I expect that many future owners of the convertible, especially previous owners of a coupe, will find this type of reinforcement appealing.”
• Lokar Performance Products, Drive-by-Wire Electronic Throttle Control (ETC): “Demand for solutions that allow modern electronics in a ‘home-built’ vehicle seems to be up.”
• Mahle Motorsports, BMW M3 S52 3.2L E36 Engine PowerPak: “Aftermarket force feeding of BMWs is one of the most common performance modifications in Sweden, next to building Volvos and American muscle.”
• Phoenix Systems LLC, Hose Candy Barb Bites: “A nice under-hood touchup somewhere between original look and the bright, shiny route.”
• PLX Devices Inc., Multi Gauge Color DM100: “Displays and gauges that integrate well in the dash will appeal to many who prefer an uncluttered cabin environment.”
• Sprintex Superchargers, MINI Cooper R52 and R53 Supercharger: “Needless to say, a proper screw compressor is a major improvement over the standard Eaton. This kit appears to be of a high standard. Although this particular application might not sell in volume as kits for American cars, such as the Camaro and Mustang, MINIs enjoy some popularity in Sweden, and there should be a market for at least a few kits.”
• TMI Products Inc., Sport Seats ’67 Chevelle: “This is a product in line with the increasingly popular form of resto-modding in Sweden: improving performance, handling, and comfort in a classic while keeping a standard-esque look.”

New Zealand

Todd Wylie, NZV8 Magazine

• First time exhibitor OZMO Engineering won four global media awards at this year’s SEMA Show for their new carbon-fiber intake manifold. “We did not really know what to expect from our first SEMA Show,” exclaimed first-time exhibitor Renate Kroghadl of OZMO. “We were blown away at the recognition the OZMO Engineering Carbon Fiber Manifolds got. It was absolutely fantastic to be chosen for an award, but when we saw it was actually four, wow, that was quite impressive. To be singled out by four media judges from different countries that thought our product was deserving of a prize, that was quite humbling. It was a great recognition for all the time and effort that was put into developing the manifolds and preparing for the Show.”

  American Autowire, ’70–’74 Cuda/Challenger Classic Update Wiring Kit: “There’s a large following for the Challenger and Cuda in New Zealand, and almost all of them are modified in a style that would make a loom such as this a great asset to the owner/builders.”
• Drake Automotive Group, ’65–’68 Ford Mustang Tri-Y Stainless Steel Headers–Part #C5ZZ-9430-SS: “We find that most Mustang owners prefer bolt-on products to custom-made items. These headers offer the quality and performance of custom items but with the ease of being simply installed.”
• Eddie Motorsports, Billet Aluminum Under-Hood kit for ’55–’57 Chevys: “Here in New Zealand, ’55–’57 Chevys are extremely popular, and this kit is a cost-effective way to dress your engine bay to make yours stand out from
  the crowd.”
• Link Engine Management USA, KnockLink G4: “The KnockLink allows home tuners and professionals alike piece of mind to know that their tune-up is safe. Its simple installation and self-calibration make it easier to use than any competitor product.”
• MSD Ignition, Atomic EFI: “The MSD name is trusted and highly regarded in New Zealand. Combine this with the ease of installation the unit offers and the ability to provide data acquisition, and you’re on to a winner.”
• Plio Grip by Valvoline, Like90 Turbo Pad for Bumpers: “No mess and no pouring solvents. The Turbo Pad makes life simple and saves time for the home DIY enthusiast or trade professional alike.”
• PLX Devices Inc., Kiwi OBD2 to Smartphone Interface: “The popularity of installing OBD2-based engines into older vehicles is rapidly growing, as is the number of vehicle owners who are willing to tune and diagnose their own vehicles. A product like this will be in high demand.”
• Procomp Electronics, 289/302W Ford Downdraft Weber EFI Kit: “The look of Weber carbs, the reliability of EFI and the simplicity of a ready-to-install package make this the perfect upgrade for Ford owners.”
• Ron Francis Wiring, Express Series Switch Panels: “Most race-car owners like to build their own cars. However, wiring is often the one part they outsource. A panel like this allows even novice auto electricians to get involved and do it themselves.”
• Top Street Performance, LS Motor Fabricated Aluminum Coil Covers: “LS engine conversions are becoming more and more popular. However, many owners don’t like the look of the exposed coil packs. These covers not only hide them but also give the engine an often-desired older look.”

Alastair Ritchie, Street Machine

• SEMA President and CEO Chris Kersting (center) posed with Perry, Ohio-based Fidanza Engineering during the Global Media Awards ceremony. Representatives joining Kersting on the red carpet (from left) include Alice Wilson, Adam Olenchick, Jeff Jenkins and Ed “Blake” Burgy.

  BorgWarner Turbo Systems, Engineered For Racing 7163: “Few people know that BorgWarner is the second-largest manufacturer of turbochargers in the world, most of which were supplied as an OEM product to manufacturers. So with that level of experience applied to the company’s first aftermarket range with the EFR series last year, it proved to be an award-winning product. This year, BorgWarner has continued to refine an outstanding product with the EFR-7163 model, which is not only lighter but has also been made even more responsive. This makes it an industry-leading product.”
• Braille LLC, Lithium Battery: “Braille Batteries is a small company that I’ve been watching for some time. They have excelled in product quality, design and innovation with Lithium Ion technology and continue with this latest offering in the Intensity i34CX Lithium Battery. In New Zealand and Australia, there are no regulations in motor racing as to the type of battery to be used, and this product combines a very light weight with industry-leading battery performance—a combination that becomes extremely cost effective in the world of race-car construction.”
• CFR Performance, Chevy Small-Block Complete Pulley, Bracket & Pump Set (LWP): “Finally someone has combined a complete pulley, bracket and water pump set ready to simply bolt on to the über-popular small-block Chevrolet. With two finishes available at a very competitive price point, this takes the hassle out of matching the various products and brackets to suit the application.”
• EZ Connector Inc., EZS7-02: “Every year, someone comes up with an innovative way to redesign an everyday product that traditionally causes people grief. This standout product design from EZ Connector has produced a trailer-plug system that addresses the age-old issues, not only sealing both plug ends while not in use, but producing an O-ringed sealed and magnetically attached connection system. New Zealand and Australia have massive towing fleets—from boats and campers to horse floats—so perhaps this could become the new industry standard.”
• Haltech Engine Management Systems, ETC2 DBW Throttle Controller: “Haltech has a strong lineup of innovative engine-
  management products. This year, they are releasing a unique aftermarket standalone fly-by-wire throttle controller complete with two channels for twin throttle applications. This will allow for smoother tuning control via the Haltech engine management. I can see this application becoming especially useful during cold start-up mapping.”
• ICON Vehicle Dynamics LLC, ’07+ Toyota FJ Cruiser/’05+ Tacoma Uniball Upper Control Arm: “The Toyota FJ Cruiser is a relatively new product in Australia and New Zealand, but the Tacoma (Hilux) is a very common off-road vehicle, many of which are used in competition applications. In these rigorous environments, the upper control arm has been a point of weakness in these vehicles, so an aftermarket product addressing this issue would be well received.”
• Link Engine Management USA, KnockLink G4: “Link Engine Management is a New Zealand company and is renowned for developing solid engine-management applications and tuning tools at a very reasonable price point. The KnockLink G4 should be another very popular road/racing product. As a standalone, easily installed tuning tool, it will self-calibrate and provide an instant strong visual warning to the driver that damaging detonation is occurring within the engine. Even with modern tuning and electronic engine-management systems and safe tunes locked in on a dyno, detonation can occur from something as simple as some bad fuel. This product detects the issue before any damage can occur.”
• MSD Ignition, Atomic EFI: “MSD is a longstanding popular electronic ignition brand in New Zealand and Australia. This new product has some excellent applications in not only the V8 tuning scene, but also the off-road scene. This package combines smooth electronic fuel injection and a quality throttle body in a bolt-on kit, complete with a handheld tuning module. Being standalone, it doesn’t require additional PC programming. This system would be perfect for off-road applications where vehicles negotiating steep vertical inclines suffer from fuel starvation.”
• Ohlins USA Inc., R/T Porsche 997 GT3 RS: “Ohlins is renowned for producing some of the most technically advanced road and track shock absorber systems in the world. This year, they have produced an OEM bolt-on upgrade package to suit the popular road-going Porsche 997 GT3 RS and GT3 Cup race car used in New Zealand and Australia. The GT3 cup model is the weapon of choice in both Porsche GT3 Cup racing series. With the regulations in these series allowing aftermarket suspension, this new two-way adjustable product will provide an edge when combined with a knowledgeable tuning engineer.”
• OZMO Engineering, Carbon Fiber Intake Manifold: “One of the tastiest new products on the shelves this year was the OZMO Engineering carbon-fiber intake manifold, suited to the popular GM LS3/L98 engine. Beautifully crafted with long runners and port-matched CNC flanges and twin plenums and throttle bodies, this certainly stood out as a desirable product. Sure, it’s not a cheap product, but quality never is. The fuelrail is cleverly integrated in such a way as not to be breached in the event of an NOS backfire.”
• Pro Comp/G2/Smittybilt/Rubicon Express, Smittybilt All Element Ramps: “With off-road activities being so popular in New Zealand and Australia, the combination of variety in terrain and extremely changeable conditions can end in a situation where tires are no longer ideal and becoming stuck can be a relatively common problem for the inexperienced driver. These compact Smittybilt All Element ramps are a great idea to carry, especially if you are in a stock vehicle with no winch or in an area where there is little to winch off.”

SEMA News—February 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

Texas Street Rods/Custom Vehicles: The Texas Department of Motor Vehicles has issued a 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. The new law defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The law also allows for the use of non-original materials and creates a titling and registration criterion that assigns these vehicles the same model-year designations as the production vehicles they most closely resemble. In addition, the law holds street rods, customs and replicas to only the equipment standards specified by law during the model year listed on the title of the vehicle. Under the proposal, the inspection would be performed by an ASE-rated Master Tech who must certify that the vehicle is structurally stable and is equipped with the equipment required by the law.

Washington Restoration/Customization Shops: SEMA is working with state lawmakers and restoration and customization shop owners in Washington state on legislation to exempt these facilities from the requirement that they provide a written estimate before beginning work. The draft bill applies only to vehicles that qualify for a horseless-carriage or collector-vehicle license plate and vehicles that meet the definition for street rod or custom vehicle. The purpose of the bill is to differentiate businesses that restore and customize specialty collector’s automobiles from typical motor-vehicle repair shops.

FEDERAL UPDATE

Regulatory Burdens: The U.S. House of Representatives passed SEMA-supported legislation to reduce the cost of burdensome regulations on business owners and job creators. The Regulatory Accountability Act of 2011 would require federal agencies to conduct a cost-benefit analysis when issuing new rules. Although a few laws already permit such analysis, the legislation would overturn the prohibition contained in other laws, such as the Clean Air Act, Motor Vehicle Safety Act, Occupational Health and Safety Act and Endangered Species Act. The data and evidence gathered in the analysis would be subject to judicial review. Agencies would generally be required to adopt the “least costly” approach to achieving policy goals established by Congress. A companion bill faces an uphill battle in the U.S. Senate and a presidential veto over concerns that it could make it more difficult for agencies to enact regulations.

CAFE Standards: The U.S. Environmental Protection Agency and National Highway Traffic Safety Administration issued draft regulations to set fuel economy and carbon dioxide (CO2) emissions limits for model-year ’17–’25 vehicles. The fleetwide average will rise from 35.5 miles per gallon (mpg) at the end of 2016 to 54.5 mpg for model-year ’25, a nearly 5% annual increase, with slightly lower standards for light-duty trucks. The government estimates that the rules would add $2,000 to the price of a new passenger car sold in 2025 but save more than $6,000 in fuel costs over the vehicle’s lifetime. In order to obtain the fuel savings, the automakers will rely on improvements of conventional technologies, including more efficient engines and transmissions, and higher-strength, lightweight materials. The fuel-economy standards were agreed to in principle earlier this summer by most of the automakers. The agreement preserves California’s authority to regulate CO2 emissions and other greenhouse gases while creating a single national standard. CO2 emissions and fuel economy are linked, since carbon dioxide is a byproduct of fossil-fuel combustion.

Forest Service Planning Rule: A U.S. House Natural Resources Subcommittee held an oversight hearing on the U.S. Forest Service’s draft rule for managing the country’s 193 million acres for national forests and grasslands. The courts have rejected previous versions of the Planning Rule in recent years. SEMA has joined with a number of other organizations representing the off-road community in opposing the draft rule on grounds that it does not adequately protect access for motorized recreation and will be a source of ongoing litigation. Many subcommittee members expressed concern that the proposed Planning Rule was too vague to prevent future lawsuits and incorporated undefined terms. Opponents fear that the rule may be applied in a protectionist fashion rather than accommodating multiple-use activities. The issue is of importance to SEMA-member companies that market products to the off-road community based on the consumers’ ability to have access to Forest Service roads and trails. The Congressional panel urged the Forest Service to revise the Planning Rule so as to provide a clearer explanation of guidelines and to ensure a “full mix of recreational opportunities.”

SEMA News—February 2012

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