Thu, 12/01/2011 - 10:22

  mopar
  Kent Kroeker and Alan Roach covered a distance of nearly 700 miles through the rugged desert of Mexico’s Baja California Peninsula in just over 20 hours to record the Class 8 victory in the Baja 1000 with the new Mopar V-10 Competition Off-Road Race Engine in their Ram 1500.

Mopar V-10 Competition Off-Road Race Engine Wins Baja 1000 Class 8 Debut
Mopar introduced the new 800hp V-10 Competition Race Engine for drag racing at the 2011 SEMA Show in Las Vegas, November 1, and less than three weeks later, the off-road racing derivative of the crate engine made its debut in the 44th Tecate SCORE Baja 1000, powering Kent Kroeker and Alan Roach to the Class 8 win in the famed event.

Kroeker, owner of Kroeker Off-Road Engineering (KORE), shared the driving duties of the Ram 1500 with the Mopar V-10 Competition Off-Road Race Engine under the hood, with Roach, who hails from Escondido, California. The pair covered the distance of nearly 700 miles through the rugged desert of Mexico’s Baja California Peninsula in just over 20 hours to record the Class 8 victory. Kroeker began the race and drove through the San Felipe loop, with Roach then taking the wheel for the remainder of the distance.

The 2011 Tecate SCORE Baja 1000 drew a total of 278 starters from 34 states and 16 different countries in more than 30 different classes. The Class 8 division that Kroeker and Roach competed in with the Mopar V-10 Competition Off-Road Race Engine is comprised of fullsize, two-wheel-drive trucks.

Kroeker and his team put the Ram 1500 for Baja together in six weeks, as both the truck and the Mopar V-10 Competition Off-Road Race Engine made their competitive debut at what is considered the most grueling event in off-road racing.

Kroeker and KORE were instrumental in the development and creation of the Mopar Ram Runner, which was introduced at the 2010 Moab Jeep Safari. The Mopar Ram Runner served as the Official Pace Truck of the Traxxas TORC (The Off-Road Championship) Series this season, where Mopar-powered Ram Truck drivers won 27 total races and claimed the championship in all three PRO classes.

  flo pro
  Wade Moody hopes to break his own record at the tracks in 2012.

Flo-Pro Exhaust Sponsors Record Breaker S-10 Pro-Diesel Truck in 2012
Wade Moody’s Pro-Diesel S-10 world record breaker of this past fall with National Association of Diesel Motorsports (NADM) in the Pro Diesel Class will have a new look along with new sponsors for the 2012 season. FLO~PRO Performance Exhaust was a sponsor in 2011 when Moody with his record of 171 mph, 7.94 backed with a 7.87, broke a long-standing record held by Gale Banks of 8.062 at 162.66 in a quarter-mile.

Moody’s changes for 2012 include a billet engine block, lighter-weight materials in the front end, suspension and fuel system. The truck base is an ’02 Gephardt Pro Stick truck, 125-in. wheelbase, 2,800 lbs., Duramax diesel engine, twin-turbo and nitrous running on Mickey Thompson tires.

Moody hopes to break his own record with plenty of RPMs left for improved times along with any grudge matches at the tracks in 2012. Appearances for 2012 include Indiana, Ohio, Pennsylvania, Maryland, New Jersey and possibly Texas.

Sponsors for 2012 include FLO~PRO Performance Exhaust as the title sponsor, along with associate sponsors from Industrial Injection, AirWerks, Mickey Thompson, K&N, Lucas Oil, XS Power, Stroud Safety, REV, Fuelab, Nitrous Express and DIESEL Motorsports.

  koenigsegg
  The Koenigsegg Agera R has received official Guinness approval for its 0–300–0 km/h record time.

Koenigsegg Agera R Receives Guinness World Record
Koenigsegg has received official Guinness approval for its 0–300–0 km/h record time. In September, a standard Koenigsegg Agera R, driven by Robert Serwanski, took several new-production car world records at the Koenigsegg proving ground in Ängelholm, Sweden. The 0-300-0 km/h time of 21.19 seconds displayed the Agera R's stability, acceleration and braking performance.

2012 NMRA Ford Nationals, Muscle Car Nationals Series Schedules Announced
The NMRA Ford Nationals has announced its 2012 series event schedule, which includes a new Maryland event that will bring all-Ford racing to the mid-Atlantic region:

  • March 1–4: 18th Annual Nitto Tire NMRA Spring Break Shootout Presented by Steeda, Bradenton Motorsports Park – Bradenton, Florida
  • April 12–15: 4th Annual Nitto Tire NMRA/NMCA All-Star Nationals, Atlanta Dragway – Commerce, Georgia
  • May 4–6: 11th Annual NMRA Ford Nationals, Maryland International Raceway – Mechanicsville, Maryland
  • June 15–16: 9th Annual NMRA Ford Nationals, Milan Dragway – Milan, Michigan
  • July 12–15: 7th Annual Nitto Tire NMRA/NMCA Super Bowl of Street Legal Drag Racing Presented by Miller Welders, Route 66 Raceway – Joliet, Illinois
  • August 31–September 2: 34th Annual NMRA Ford Expo, National Trail Raceway – Columbus, Ohio
  • October 4–7: 14th Annual Nitto Tire NMRA All-Ford World Finals Featuring 5.0 Mustang’s King of the Street, Beech Bend Raceway – Bowling Green, Kentucky
  • November 9–11, 2012: 3rd Annual Nitto Tire NMRA/NMCA Lone Star Shootout, Royal Purple Raceway – Houston

The 2012 Muscle Car Nationals series event schedule includes:

  • March 15–18: 10th Annual Ross Racing Pistons NMCA Muscle Car Nationals Featuring the GM Performance Parts LSX Challenge, Bradenton Motorsports Park – Bradenton, Florida
  • April 12–15: 4th Annual Nitto Tire NMRA/NMCA All-Star Nationals, Atlanta Dragway – Commerce, Georgia
  • June 8–10: 10th Annual NMCA Muscle Car Nationals Featuring the 4th Annual shopHEMI.com Late-Model HEMI Shootout, Maryland International Raceway – Mechanicsville, Maryland
  • July 12–15: 7th Annual Nitto Tire NMRA/NMCA Super Bowl of Street Legal Drag Racing Presented by Miller Welders, Route 66 Raceway – Joliet, Illinois
  • August 3–5: 11th Annual Quick Fuel Technology NMCA Muscle Car Nationals Featuring the Dave Duell Nostalgia Super Stock Classic, Beech Bend Raceway – Bowling Green, Kentucky
  • August 24–26: 6th Annual JE Pistons NMCA Muscle Car Nationals Featuring the Ford Racing Cobra Jet Showdown, Milan Dragway – Milan, Michigan
  • October 11–14: 11th Annual FueLab NMCA World Street Finals Featuring the 6th Annual GM Performance Parts LSX Shootout, Lucas Oil Raceway at Indianapolis – Indianapolis
  • November 9–11: 4th Annual Nitto Tire NMRA/NMCA Lone Star Shootout, Royal Purple Raceway – Houston

For more information on the NMRA Ford Nationals or Muscle Car Nationals, log on to www.nmradigital.com or call 714-444-2426.

  united
  United Autosports plans to campaign an Audi R8 LMS sportscar in the 2012 Avon Tyres British GT Championship.

United Autosports Bids for British GT Crown
The United Autosports team—co-owned by American, Zak Brown and Briton, Richard Dean—plans to campaign an Audi R8 LMS sportscar in the 2012 Avon Tyres British GT Championship in a bid to take the title it so narrowly missed out on this year. The team was one of the front-running outfits in 2011, having taken several pole positions and led the championship for majority of the season with drivers Matt Bell (Newcastle-upon-Tyne, United Kingdom) and Mike Guasch (Palo Alto, California).

The Audi R8 LMS has taken more than 100 race wins to date and already the Anglo-American team has confirmed one Audi R8 LMS entry with the series organizers for next year’s British GT series with the intention of adding a second for the right driver combination. The United Autosports car will be the latest 2012 specification; the Audi R8 having conquered the opposition with recent dominant performances and victories in the 2011 Spa 24 hours, Blancpain Endurance Series and Macau GT race.

Organizer, SRO Motorsports Group, has a seven-meeting calendar scheduled for 2012 featuring the United Kingdom’s best circuits, including Oulton Park, Rockingham, Snetterton and the Grand Prix circuits of Brands Hatch, Silverstone and Donington Park. The 2012 overseas round, meanwhile, will take place on the German Grand Prix circuit at the Nürburgring.

Flowmaster to Sponsor All-New NMCA WEST Street Car Series Through 2013
Flowmaster Inc. and ProMedia Events have announced that Flowmaster will be the series sponsor of the all-new NMCA WEST Street Car Series through the 2013 season. NMCA West will debut in 2012 as a four-event championship series catering to the growing West Coast drag-racing scene:

  • Auto Club Dragway – Fontana, California – April 20–22
  • Famoso Dragway – Bakersfield, California – June 22–24
  • Speed World Dragway – Phoenix, Arizona – September 28–30
  • Auto Club Dragway – Fontana, California – October 19–21
Thu, 12/01/2011 - 10:14

SEMA News—December 2011

Chinese Consumers Seek Specialty Products

U.S. Manufacturers Travel to China to Meet Growing Demand

By Linda Spencer


The SEMA delegation was invited to take part in the opening ceremonies of the China International Auto Parts Expo (CIAPE). Posing with the group were Daniel Green, director of market access and compliance office, U.S. Embassy, Beijing (front row, second from right) and William Brekke, principal commercial officer, American Consulate General, Shanghai (front row, third from right). This is the fifth edition of this trade-only show, which was sponsored by the Chinese Ministry of Commerce (MOFCOM).
A group of SEMA-member manufacturers recently descended on the Chinese capitol of Beijing, for the second annual SEMA China International Auto Parts Expo (CIAPE) China Business Development Program—an intensive three days of networking and one-on-one meetings with Chinese buyers from 24 cities throughout China. The 2011 delegation of U.S. companies represented a broad range of products, including engine performance, interior and exterior appearance products, suspension and handling upgrades and mobile electronics. The goals of the participants included meeting potential customers, getting a better understanding of consumer brand awareness, evaluating distribution channels for their products and identifying vehicles on Chinese roads for which they should develop new product applications.

In addition to the daylong networking and one-on-one meetings, the 30 members of the SEMA delegation had the opportunity to meet with top U.S. Embassy officials, meet for an informal breakfast with Chinese enthusiast press and tour the Chinese Ministry of Commerce-sponsored CIAPE. This year was the fifth for this trade-only event, which featured primarily repair and replacement products but included a new specialty-equipment hall, with the largest exhibitors being distributors of overseas specialty products.

SEMA places a high priority on assisting SEMA-member companies in diversifying their customer bases and facilitating access to the 95% of the world’s customers located outside the United States. For SEMA members, new geographic markets offer opportunities to create new revenue streams and reach new customers. SEMA Vice President of Communications and Events Peter MacGillivray noted that the association actively searches for additional markets where passion, market conditions and vehicle mix indicate good potential for members’ products and increasingly point to emerging markets.

“One of the most promising of these markets is China,” said MacGillivray. “There is no doubt for those who travel to China that the demand is growing among Chinese consumers to customize their vehicles. The SEMA Global Business Development Conference helps to meet the demands of these buyers in emerging markets, such as China’s. Our program facilitates one-on-one meetings between SEMA manufacturers and pre-vetted Chinese distributors and retailers in a hotel-based setting.”

The program allows for quality meetings between serious buyers and member manufactures in a low-cost, turnkey situation. The program is based on the premise that, until a market has a more fully developed distribution system and has achieved a certain level of development, U.S. companies are advised to avoid the typical high costs of exhibiting in a traditional trade show, including but not limited to shipping material, booth costs and the need for significant staff resources.

China offers a population of more than 1.3 billion and growing market sophistication, and participants in the 2011 program were impressed with the speed at which the Chinese market is expanding.

“The market in China is developing at a much quicker rate than we experienced in the United States,” said SEMA Chairman Scooter Brothers, who also serves as the chief operating officer of Tennessee-based COMP Performance Group. “Chinese consumers crave Western style and trends, which are increasingly being reflected in their cars.”

“Trips, such as the SEMA China Business Development Program, are a critical component in our company’s activities to develop a growing range of products to fit vehicles found on Chinese roads,” said Brothers. “This task will soon become easier as the world platform for the OEs is becoming standard. With that, U.S. and Chinese vehicles will become quite similar, making the development of parts much easier, quicker and less expensive.”

SEMA Member Companies Who Exhibited at the 2011 SEMA China Business Development Conference

  • American Expedition Vehicles
  • Anzo U.S.A.
  • BDS Suspension
  • BrynDana International
  • Bushwacker Inc.
  • COMP Performance Group
  • eBay Motors
  • Evosport
  • Girard Systems and Girard
    Products LLC
  • Injen Technology
  • K&N Engineering Inc.
    and AEM Induction Systems
  • Keystone Automotive Operations
  • SCT Performance
  • Sheen Coatings Co./
    Paasch Products Inc.
  • Stillwater Designs and
    Audio Inc. (Kicker)
  • StopTech/Power Slot
  • T-Rex Grilles
Other companies are finding immediate sales.

“I would attribute our success to the fact that China is experiencing an economic boom in its middle- to upper-class markets,” said Ed Rossi, vice president of sales for Injen Technology. “The average young man aspires to own his own car as a means for making his life easy and as a status symbol. As they travel abroad or experience global news, they start to crave Western ways of life and means.”

“I am convinced that the market for Western products will grow exponentially over the next few years,” Brothers said. “The plans are for the Chinese to manufacture 35 million vehicles by 2025. That’s twice what the U.S. built in its best year. Only a very few of the owners of all those cars need to be ‘car guys’ for us to have a tremendous market.”

Brothers noted that COMP Cams finds the SEMA trip a good way to keep an eye on the market so that it can be well positioned to move quickly when the market explodes.

“I believe it is going to happen all at once,” he said, “and those of us who have done our homework will do well. Those who follow might not be successful.”

The participating companies and SEMA executives had the opportunity to discuss with Chinese and U.S. government officials based in China a variety of issues and problems that must be addressed in order for the market to achieve its full development, including cracking down with strict enforcement over counterfeiting and other intellectual-property infringements and the need for greater clarity and progress regarding the legalization of specialty-equipment products. There was consensus that only when issues such as these are addressed will distributors and retailers in China be willing to invest in the development of a distribution system supported by firms of sufficient size to grow the market and provide consumers with needed access to leading global brands.

SEMA Vice President of Marketing and Member Services Tom Myroniak traveled to China with the group and noted that there is a large and growing need for education and training among Chinese trade businesses and consumers to assist in the development of the market and increase familiarity with leading U.S. brands and their correct installation.

“It’s clear that the marketplace for specialty products in China is building momentum and that the passion for automobiles is alive and well with a growing base of enthusiasts there,” Myroniak said. “Car owners are hungry for information to help them customize or tune their vehicles, and a surprising number of them are very familiar with SEMA-member brands.”

Florida-based SCT Performance, a manufacturer of electronic control units, concurred that the market can be an important one for high-performance products.

“We believe the market in China is untapped and growing each year,” said an SCT Performance’s Rick Trudo. “It offers a great opportunity for us as we work with the Chinese to develop the performance market.”

Buyers and SEMA exhibitors pose on the steps of the Great Hall of the People prior to the dinner.

Located at the western edge of Tiananmen Square, The Great Hall of the People functions as the People’s Republic of China’s parliament building and is the venue of ceremonial activities.

In addition to the one-on-one meetings, the dinner provided a networking opportunity with buyers. Many SEMA members scheduled additional private meetings with potential customers throughout the week.

 

William Brekke (fourth from right) and Daniel Green (fourth from left) spent the morning with the SEMA delegation. Following a private briefing in which the group discussed the growing Chinese market as well as the challenges hampering its obtaining its full potential—including a less-than-optimal system of enforcement for counterfeiting and other intellectual-property concerns and the need for additional progress in the creation of pro-industry laws concerning customization—the government officials accompanied the SEMA delegation to the opening of the CIAPE Show and visited the SEMA booth.

Malcolm Johnson (center), CEO of Byrn Dana, heard some pointers from Ray Gross (left), CEO of Powersheen, and Andy Barbieri, vice president of business development at BDS Suspension.

About two-thirds of the participants were also here last year and, as Johnson gratefully noted, freely gave of their time and advice to help those participating on the SEMA China Business Development program for the first time, such as Byrn Dana.

 

Ben Mizban (left), president and CEO of Southern California-based T-Rex Grilles, spoke with a buyer interested in U.S.- manufactured billet grilles and grille assemblies. Mizban participated in the trip to expand to other markets where his company could increase sales and use SEMA’s muscles to connect and generate leads. He noted that he would be busy with follow up. “The ball is in my court now to follow up and turn some of the contacts I made into actual sales and future distributors,” he said. He is optimistic and believes that his products have great growth potential in the Chinese market.

Marcia Girard (far left), CEO of Girard Systems, and Gerald Pogue (second from left), the firm’s vice president and general manager, talked with buyers about the growing market for RV parks. Girard and Pogue’s research reveals a number of RV parks in the Beijing area, with another 17 under construction in just the surrounding area, providing some short-term opportunities for the firm as demand grows for the enjoyment of the popular American pastime. During a recent interview with SEMA, Wang Jidong, the RV association’s secretary-general noted, “There is a great potential for the growth of the RV market in China.” Jidong noted that change is coming fast in China as local governments and businesses build hundreds of RV camps nationwide.

 

Ivan Martinez (right), Exeter, Pennsylvania -based Keystone Automotive Operations’ global business development director, provides a light-truck distributor with information on Keystone’s high performance, accessories, wheels, automotive parts, truck accessories and import performance product lines. Martinez, in China with SEMA for the first time, noted that he participated in the China Business Development Program to “learn about the market and explore opportunities” and that, in his view, he sees real growth in the next five years. Martinez noted, “As China develops the taste for American vehicles and has more disposable income, the market should experience a level of expansion.”

David Thawley (second from right), senior manager of eBay Motors, a part of eBay Inc., talked with buyers at the SEMA CIAPE China Business Development Program about the online services the firm can offer to Chinese companies, given eBay’s position as the Internet’s largest marketplace for buying and selling automotive-related products. “We [eBay Motors] had a great and very productive time at the SEMA/CIAPE event,” said Thawley. “Recently, we’ve seen tremendous global growth in online automotive parts and accessories sales, and we are confident that Asia will continue to be a major driver of future growth. With more vehicles sold in China vs. the United States over the past year, the current nascent automotive aftermarket in China has an amazing amount of runway ahead! As a marketplace that connects buyers and sellers globally, and as the largest online retailer of automotive parts and accessories in the world, an event such as SEMA/CIAPE provides a tremendous opportunity for eBay Motors to connect with leaders in the automotive aftermarket. We’ll definitely be back next year!”

 

Simon Atik (far right), president of Evosport, based in Huntington Beach, California, participated in the SEMA China Business Development program to assess the market for the firm’s aftermarket accessories for BMW, Mercedes-Benz and Ferrari. “While the emergence of the aftermarket industry is still in its infancy stages, the obvious potentials are astonishing,” said Atik. “The biggest challenges will be educating the consumers and distributors of our brand, as the skillsets necessary to install and support performance specific products is extremely limited. Having established distribution in China almost a year ago, my primary goals were to meet with our current distribution network of dealers and gain greater clarity on the demands and needs of this growing market. Those goals were very much realized during this trip to a much greater extent with the participation in the SEMA event. There is an overwhelming current demand for our products, the future of which will be determined greatly by how well the Chinese government and legislation embraces this industry and the regulations that surround it.”

As part of the program, each SEMA exhibitor was provided with a turnkey booth and an interpreter for the day. The companies, which represented a broad range of products that included engine performance, interior and exterior appearance products, suspension and handling upgrades and mobile electronics, were kept busy meeting with pre-vetted buyers from throughout China.

The program was designed to minimize costs, with no need to ship large quantities of products. In fact, many companies hand-carried their brochures and samples.

 

Malcolm Johnson (left), CEO of BrynDana International, participated in this year’s SEMA China Business Development program to explore the market for his company’s spray-on coating products. Johnson obtained a number of solid leads during his time in China. “The notion that U.S. manufacturers cannot export to China has been debunked,” he said. “The Chinese buyers with whom I met in Beijing are young entrepreneurs, and they are asking for high-quality U.S.-manufactured automotive products. SEMA organized a well-planned and highly professional trade show that allowed me to reach these buyers. I will attend this show again next year, along with the upcoming Dubai delegation.”

As consumers seek more powerful engines, the demand for high-performance brakes also grows. This increasing demand brought Jeremy Barras (right), export sales manager for StopTech/Power Slot, back to China to participate for a second year in the SEMA China Business Development Program. Compton, California-based StopTech manufacturers high-performance brake systems and components for the racing and street-performance markets. Its sister company, Power Slot, manufactures high-performance slotted brake rotors.

 

Zhang Ji (left), director general of the MOFCOM office of mechanical, electrical and high technology, presented SEMA Chairman Paul “Scooter” Brothers (second from left), SEMA Director of International Affairs Linda Spencer and SEMA Vice President of Communications and Events Peter MacGillivray (right) with an award recognizing the longtime partnership between SEMA and the MOFCOM trade show CIAPE. SEMA leadership has been working closely with the ministry to make additional progress in legalizing the use of all specialty-equipment products in China.

Ray Gross (second from right) was excited that the trip has yielded some potentially significant business and that his comfort in doing business in China is growing. He has noticed that his potential Chinese customers are not all that dissimilar from those in the United States. He is optimistic about the prospects for his company in China, noting that the market presented “great possibilities.”

 

Kenneth Merritt (left), vice president of OEM sales for Oregon-based Bushwacker, provided an overview of the company’s bestselling fender flares and other products for Jeeps and other light trucks to a buyer as the daylong one-on-one meetings got underway. Kim Ziebell, the firm’s executive vice president and CMO, is pictured on the far right.

Christopher Wood (third from right), director of sales, and Mike Messink (third from left), CFO of American Expedition Vehicles, discussed with potential buyers the range of products the company produces for the Jeep Wrangler. Jeeps are very popular in China, with a growing number of off-roading events throughout the rugged Chinese countryside, as well as ventures to more distant locations, such as Nepal and Mongolia. Wood noted, “The combination of increased Jeep Wrangler exports to China and a growing demographic of well-funded Chinese buyers has created steady sales growth for our high-end Jeep accessories. The challenge has just been protecting our brand from copying. There is no question that there is a market in China for our products and those of other 4WD accessory manufacturers. The trick is just protecting one’s IPR in China.”

 

Steve Outhier (center), director of product planning at Stillwater Designs and Audio Inc. (Kicker), enjoyed speaking with buyers interested in the firm’s mobile electronic products.
“We already sell into China,” said Outhier, “and we see great potential for expansion in this market. The conference helped me better understand the opportunities and challenges we face as we expand our presence. That was my goal for the conference, and I feel it was well met.”

 

Anzo U.S.A.’s General Manager George Lee (third from right) chatted with buyers, many of whom sought out the first-time participant that manufacturers lighting products for cars, trucks and SUVs.

 

Buyers crowded into the Injen booth during the daylong meetings. Ed Rossi (third from left), Injen’s vice president of sales, spoke with a buyer while Ron Delgado (second from right) spoke to another group. “Once again, we met many Chinese companies,” said Rossi, “and we have very firm plans to open accounts with two or three of them. The program has been fantastic for us.”

Pictured here are Brothers (left) and Green (second left) along with SEMA’s MacGillivray and U.S. government official Brekke (right) who has more than 30 years of experience in Asia. In the background is a project vehicle built by Beijing-based distributor BATT and featuring products from Bushwacker and BDS.

 

 

Kevin Floody (left), the international business manager for K&N Engineering Inc. and AEM Induction Systems, explained the company’s wide array of high-performance air filter and air intake systems designed for a range of sport-compacts, trucks and SUVs applications to one of the many visitors to K&N’s booth. “China continues to amaze me every time I return,” said Floody. “This market is maturing at such a rapid rate that it is like watching your children grow up. K&N is definitely glad China is part of its global markets.”

Rick Trudo (right), president and CEO of SCT Performance, spoke to an increasing number of buyers seeking SCT’s Ford and GM ECU tuning products and other under-hood products to improve engine performance. Trudo was so positive about the market that SCT has just set up an office in China to service its growing customer base. “SCT participated in the SEMA trip to China because of the success we had in 2010,” said Trudo. “We have added dealers and helped develop a tuner market while working with dealers and customers there. The Chinese continue to learn more and more about the performance industry, and we see a great opportunity for us to work with them and help this market continue to grow.”

 

Andy Barbieri, vice president of business development at BDS Suspension, met with buyers from Chengdu, China, who were interested in learning about the firm’s lifted suspension systems. “We decided to attend for a second year because of the success of our first trip last year,” Barbieri said. “Our goal was to build on the progress that was made last year. I was very encouraged by the number of new contacts that we met at the 2011 SEMA CIAPE conference and the growth of our existing Chinese customer base.” He is also optimistic about continued growth. “The number of new American vehicles being sold and the ever-increasing interest in customizing those vehicles will fuel the growth of the automotive aftermarket in China over the next five years and beyond,” he said.
Thu, 12/01/2011 - 10:06
The second annual SEMA Award was presented to the Fiat 500 for the Hottest Sport Compact Car, Chevrolet Camaro for Hottest Car, Ford F-Series for the Hottest Truck and Jeep Wrangler for the Hottest 4x4-SUV. The winners were announced on the opening day of the 2011 SEMA Show. View the the Fiat 500s on display at the 2011 SEMA Show.

The SEMA Award winners represent the models that industry experts—the SEMA Show exhibitors—most often feature in their booths as the hottest rides for the enthusiast market.

The SEMA Award honors those vehicles that specialty-equipment manufacturers believe are the best platforms for accessorization and that showcase this year’s coolest products. The award recognizes four outstanding vehicle models in four categories—“Hottest Sport Compact Car,” “Hottest Car,” “Hottest Truck” and “Hottest 4x4-SUV.” It also underscores the cooperative relationship between the automakers and SEMA-member companies.
Thu, 12/01/2011 - 10:06
The second annual SEMA Award was presented to the Fiat 500 for the Hottest Sport Compact Car, Chevrolet Camaro for Hottest Car, Ford F-Series for the Hottest Truck and Jeep Wrangler for the Hottest 4x4-SUV. The winners were announced on the opening day of the 2011 SEMA Show. View the the Fiat 500s on display at the 2011 SEMA Show.

The SEMA Award winners represent the models that industry experts—the SEMA Show exhibitors—most often feature in their booths as the hottest rides for the enthusiast market.

The SEMA Award honors those vehicles that specialty-equipment manufacturers believe are the best platforms for accessorization and that showcase this year’s coolest products. The award recognizes four outstanding vehicle models in four categories—“Hottest Sport Compact Car,” “Hottest Car,” “Hottest Truck” and “Hottest 4x4-SUV.” It also underscores the cooperative relationship between the automakers and SEMA-member companies.
Thu, 12/01/2011 - 09:43

  petersen
  Margie Petersen

Margie McNally Petersen, lifelong philanthropist, wife of the late publishing magnate Robert E. Petersen and co-founding benefactor of Southern California’s Petersen Automotive Museum, passed away peacefully at her home in Beverly Hills, California, on the evening of November 25, 2011. Her passing was due to a long and valiant battle with breast cancer. She was 76.

A beautiful and active lady, Mrs. Petersen was born and raised in New York and was a top professional model, having appeared on hundreds of magazine covers, as well as in hundreds of TV commercials for a variety of national advertisers, such as Coca-Cola and Ivory Soap. A former Miss Rheingold, Mrs. Petersen was also a television actress under contract with MGM.

She was married to Robert E. Petersen, founder and chairman of the board of Petersen Publishing Co., who predeceased her in 2007. Together, they were the founding benefactors of the Petersen Automotive Museum in Los Angeles, where she also served on the Board of Directors. Most recently, she donated to the Petersen Automotive Museum their car collection, the building that houses the museum and a monetary gift totaling $100 million.

Together, the Petersens owned the famous Scandia Restaurant, located on the Sunset strip, and Petersen Galleries in Beverly Hills, which featured up-and-coming Western and Wildlife artists and, in the later years, featured Plein Art and Hudson Valley artists.

Throughout her life, Mrs. Petersen was affiliated with numerous charitable organizations, including The Amazing Blue Ribbon of the Music Center, Children’s Hospital Los Angeles, The Diadames, The Los Angeles Orphanage Guild, The League for Children and Childhelp U.S.A., and she was the “St. Jude Research Hospital Woman of the Year.” With her husband, she was a major donor to the Natural History Museum of Los Angeles as well as to The Music Center and the Los Angeles County Museum of Art.

She chaired the annual Thalians Ball numerous times with the proceeds going to The Thalians Mental Health Clinic at Cedars Sinai Medical Center. She was also one of the founders of the Cedars Sinai Research for Women’s Cancers, which raised almost $7 million in less than four years to fund a new institute dedicated to women’s cancers.

In 2008, reflecting the passion for life and a legacy of philanthropy she and her husband shared, the Margie & Robert E. Petersen Foundation gifted $15 million to St. John’s Health Center and the John Wayne Cancer Institute, which included the naming of the Margie Petersen Breast Center at St. John’s Health Center in Santa Monica, California. Having been a breast cancer survivor for more than 20 years, she was also a founding member of STOP Cancer and a member of the Associates for Breast Cancer and Prostate Cancer Studies.

Many thousands of children at risk have experienced an improved quality of life as a result of the generosity and efforts of Petersen and her late husband through their support of S.H.A.R.E, the Hugh O’Brian Foundation, The Jeffrey Foundation and the Boys and Girls Club of Hollywood. They commemorated their support by naming the new club building “The Margie and Robert E. Petersen Boys & Girls Club of Hollywood.”

She had a great interest in interior design and was the vice president of Petersen Interiors & Design, which was an inhouse design firm for Petersen Publishing, where she was instrumental in furnishing the office buildings. She helped design the beautiful mission-style 16,000-sq.-ft. terminal building, which housed Petersen Aviation at Van Nuys Airport.

She was a supporter of the Friends of Robinson Gardens, as one of her favorite pastimes was gardening; in fact, she created a beautiful Georgian garden, of which the rose garden was her favorite. Her garden was featured on the Robinson Garden tour some years ago.

Mrs. Petersen continued in her position on the Board of Directors of the Petersen Automotive Museum Foundation—an educational organization developed to support her and her husband’s educational museum, built to pay tribute to the automobile.

Today, the Petersen Automotive Museum in Los Angeles stands as the nation’s premiere automotive museum, serving thousands of visitors each year. Its mission remains to educate and excite generations of auto enthusiasts with the fascinating stories, vehicles and people that have influenced the American love affair with the automobile—a mission that has been a resounding success, thanks to the generosity of its main benefactor.

She and her husband were predeceased by their two sons in 1975. There are no immediate family survivors.

In lieu of flowers, donations can be made to the Petersen Automotive Museum at 6060 Wilshire Blvd., Los Angeles, CA 90036, or the charity of your choice in Mrs. Petersen’s honor.

Thu, 12/01/2011 - 09:42

SEMA News—December 2011 

Law and Order
By Steve McDonald

2011: The Year in Review

The laws and regulations that govern how SEMA members do business have an increased and growing impact on the way automotive specialty-equipment products are made, distributed and marketed. As the nation and our industry struggle with a still balky economy, SEMA’s charge is to stay on top of every relevant state and federal matter of consequence to its membership to ensure the best possible outcome.

The following are just a few examples of critical legislative/regulatory issues that the SEMA government affairs office was involved in this year.

State Update

Arizona Emissions Test Exemption:

Governor Jan Brewer signed into law SEMA-supported legislation to exempt all vehicles manufactured in the ’74 model year and earlier from the state’s mandatory biennial emissions inspection program. Under previous law, only vehicles manufactured in 1966 and earlier and collectibles (used primarily for hobby activities, insured under a collector-car insurance policy and whose owners have registered an additional vehicle for general transportation) were exempt.

Arkansas Inoperable Vehicles:

SEMA helped defeat legislation that would have allowed cities to remove inoperable vehicles from private property if the vehicle was deemed a “nuisance” under a local ordinance. Among other things, the bill provided no reasonable safeguards for legitimate automotive hobbyists to work on inoperable collector vehicles on private property, even those located out of public view.

Arkansas Bonded Titles:

Governor Mike Beebe signed into law SEMA-supported legislation to create a less expensive bonded title procedure for assembled vehicles. The new procedure calculates the amount of the bond as equal to the value of the vehicle. Prior to the enactment of the new law, all vehicle owners applying for a bonded title had to post a bond of 1.5 times the value of the vehicle. The law also permits assembled vehicles to be bought and sold in inoperable condition. Arkansas defines an assembled vehicle as a vehicle constructed by a collector from parts obtained from a variety of different sources on various occasions.

California Diesel Parts:

At SEMA’s request, the California Air Resources Board (CARB) again extended its “Parts In Progress” (PIP) program until December 31, 2011. The program was originally slated to conclude on June 20 but was subsequently extended to September 30. CARB and SEMA created this procedure in order for non-certified diesel parts to not cause failure of the visual portion of the BAR’s smog check while diesel parts manufacturers submitted all traditional certification application material and addressed test requirements spelled out in the program, including a rigorous steady-state test mode. Delays created primarily by lack of available test laboratory time prompted the extensions.

Colorado Collector Vehicles:

Governor John Hickenlooper signed into law a SEMA-supported bill to reorganize and simplify the various laws dealing with collector cars. Reorganizing the statutes into one location in the code will help the Department of Revenue, law enforcement, county clerks and enthusiasts more easily locate and apply state law governing the titling and registration of collector vehicles.

Connecticut Antique Vehicles:

SEMA-opposed legislation that threatened to increase the age requirement for vehicles eligible for registration as “antique, rare or special-interest motor vehicles” died when the Connecticut Legislature adjourned for the year. The bill increased the age requirement for registration as an antique to 30 years and increased the tax assessment amount on vehicles registered as antiques to $2,500. Currently, vehicles 20 years old or older are eligible for antique status. Antique, rare or special-interest motor vehicles are currently assessed at a rate of $500, and owners pay personal property taxes on that amount.

Florida Tire Dating:

SEMA-opposed legislation to require retailers to provide information on tire aging was successfully defeated. The bill would have required tire retailers to provide a written disclosure on each replacement tire’s age, including the week and year the tire was manufactured, the length remaining on the factory warranty and a statement on tire aging explaining how tire age can contribute to crashes and that tires should be replaced every six years. The legislation would have imposed unnecessary regulatory burdens on tire retailers without providing any proof that tire age affects safety.

Hawaii Car Audio Equipment:

SEMA-opposed legislation to ban the installation, ownership or use of any car with aftermarket speakers over 6.5 in. in height or depth, any five-speaker aftermarket system, any aftermarket speaker more than 100 watts and any aftermarket speaker installed external to the passenger compartment or in an open hatch back was not considered this year. The measure was discriminatory toward aftermarket products, as it did not seek to limit systems installed by original vehicle manufacturers or dealers.

Illinois Antique Vehicles:

Governor Pat Quinn signed into law SEMA-supported legislation to provide for an expanded-use antique vehicle registration class that would allow antique vehicles and replicas to be driven without limitation during the warmer part of the year, from April 1
through October 31. Regular antique vehicle registration is still available for a lower fee to hobbyists who would prefer operating their vehicles on only a limited-use basis throughout the year.

Iowa Ethanol:

SEMA-opposed legislation in Iowa to change labeling requirements on gas pumps across the state to require labeling for only unblended gasoline and E85 was successfully defeated. Current law in Iowa requires labeling when gasoline is blended with any amount of ethanol. If the bill had been enacted, it would have removed labeling requirements for ethanol-blended gasoline containing 15% or less ethanol, thereby increasing the risk of misfueling and potential engine damage.

Maine Custom Vehicles:

Governor Paul LePage signed into law a SEMA-supported bill to include more model-year vehicles in the definition of a custom vehicle by changing the definition from 30 to 25 years old and older. The new law also expands the weight limit for custom vehicles from 6,000 to 10,000 lbs. and clarifies that custom vehicles are held to special inspection criteria promulgated by the chief of the state police.

Nebraska Ethanol:

Persuaded by the opposition of SEMA, legislation to remove labeling requirements on pumps dispensing ethanol-blended gasoline has been “indefinitely postponed” in Nebraska. Current law in Nebraska requires labeling when gasoline contains 1% or more alcohol, including labels for pumps dispensing E10. The bill would have made it impossible for enthusiasts to know whether the gasoline they put into their vehicles contained any ethanol, making unintentional misfueling and engine damage more likely.

Nebraska Parts Cars:

Governor Dave Heineman signed into law a bill to redefine parts cars and make such vehicles easier to transfer. Prior to the bill’s enactment, Nebraska required a certificate of title when transferring any vehicle. The new law, effective immediately, allows for parts cars to be transferred using a bill of sale issued by the DMV. Parts vehicles eligible to be transferred using only a bill of sale under the new provisions include vehicles for which title has been surrendered due to the vehicle being destroyed, dismantled or scrapped or for which title has been surrendered to another state or an insurance company to render it fit for sale for scrap parts.

Nevada Emissions Exemption:

Governor Brian Sandoval signed into law SEMA-supported legislation to exempt classic vehicles and classic rods from emissions inspections if owners pay a one-time $6 fee and submit a certification that their vehicles will not be driven more than 5,000 miles per year. Under previous law, classic rods and classic vehicles were subject to a 2,500-mile-per-year limit to qualify for an emissions exemption and had to pass an initial two-speed idle-emissions inspection to qualify.

New York Collector Car Appreciation Day:

At SEMA’s request, the New York State Assembly approved a resolution to memorialize July 8, 2011, as Collector Car Appreciation Day in the State of New York, in conjunction with National Collector Car Appreciation Day.

New York “Gas Guzzlers”:

Legislation to establish a progressive purchase surcharge for some new motor vehicles based on state calculations of carbon emissions was defeated for the year. Depending on the vehicle purchased, this surcharge could have required owners to pay up to $2,500 more for the vehicle.

New York Wheel Marking:

SEMA helped defeat legislation that would require vehicle identification numbers on the wheels of all motor vehicles assembled or sold in New York. All wheels sold in the United States generally comply with industry standards that include markings with the wheel manufacturer’s name, trademark or symbol, date of manufacture, manufacturer’s part number or code. Wheels are already identifiable without imposing a VIN marking burden. Both Congress and the NHTSA have determined that wheel marking of the type contemplated by this bill would impose a huge burden on the wheel makers, automakers and dealers and, as noted, wheels already have distinguishable markings. The measure may return next year.

North Carolina Ethanol:

Governor Bev Perdue signed into law SEMA-supported legislation requiring ethanol content labels on all pumps that dispense ethanol-blended gasoline. The new law requires these labels to indicate that the gasoline contains 10% or less ethanol or greater than 10% ethanol. Previously, retailers operating pumps dispensing ethanol-blended gasoline were not required to post labels regarding ethanol content.

North Dakota Vehicle Modifications:

As a result of the opposition mounted by SEMA and North Dakota vehicle hobbyists and businesses, legislation that threatened to prohibit the modification of any motor vehicle that altered the manufacturer’s original suspension, steering or brake system unless the state highway patrol issued an inspection certificate was amended to remove those restrictions. The amended bill, signed into law, now only provides for a study of the state’s transportation laws to be conducted between the 2011 and 2012 legislative sessions.

Oklahoma Rebodied Vehicles:

Governor Mary Fallin signed into law SEMA-supported legislation to provide for certificates of title to be issued for “rebodied” vehicles. Under the new law, a rebodied vehicle is defined as a vehicle that has been assembled using a new body or new major component part that must be identical to the body or major component part used on the original vehicle. The law also requires that a new body or major component part that is used to assemble a rebodied vehicle be licensed by the manufacturer of the original vehicle. Other original, new or reconditioned parts may also be used. Titles issued to rebodied vehicles will identify the year, make and model of the originally manufactured vehicle and include a notation that states: “This vehicle has been assembled with new major components licensed by the original manufacturer.” Upon application, the Oklahoma tax commissioner will assign each rebodied vehicle a new vehicle identification number.

Oklahoma Racing:

Governor Mary Fallin has signed into law legislation to allow municipalities to issue permits for sanctioned motor-vehicle racing events on public streets and highways within their geographical jurisdictions. The new law promotes legal racing in Oklahoma, boosts the state’s tourism sector and streamlines the process for race promoters to obtain a racing event permit. An
exemption from regulations governing “public or private nuisances,” including noise limits, is also provided for in the new law. To obtain a permit, the racing event must be sanctioned by a nationally or internationally recognized racing organization.

Oregon Exhaust Systems:

At the insistence of SEMA, the sponsor of legislation that would have banned the sale of certain new motor-vehicle exhaust systems withdrew the measure from further consideration. The bill would have prohibited the sale of exhaust systems and exhaust-system components that cause motor vehicles to produce noise exceeding certain limits and would have led to significant confusion regarding compliance and enforcement.

Oregon Suspension/Tire Alterations:

A SEMA-opposed bill that would have severely limited vehicle suspension, body lift and wheel/tire alterations died without committee consideration. Specifically, the measure sought to ban vehicles whose bumpers were elevated more than 3 in. over the original manufactured bumper clearance. Among other things, the bill discriminated against aftermarket parts makers by leaving it solely to the vehicle manufacturers to choose bumper heights. Additionally, it would have forced owners of modified vehicles to spend large sums of money to reinstall original components and would have banned useful alterations that provide adequate clearance for on-/off-road capability and accommodate heavy loads, larger tires, improved suspension and water-fording capability. The bill also would have imposed a fine of up to $360 per offense for vehicles that exceeded the 3-in. clearance requirement.

Tennessee Emissions Tests:

Governor Bill Haslam signed into law SEMA-supported legislation to exempt vehicles more than 25 years old from the state’s annual emissions inspection and maintenance program. To qualify for the exemption, these vehicles must be registered as “antique motor vehicles.” Previous law in Tennessee exempted only vehicles manufactured before the ’75 model year from emissions inspection. The new law provides for a rolling emissions inspection exemption that would exempt qualifying antique vehicles upon enactment and would pick up an additional model year for each year the law is in effect.

Texas Street Rods/Customs:

After an effort that stretched into two legislative sessions, SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles (including kit cars and replicas) and provide for special license plates was signed into law by Governor Rick Perry. 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 and exempts them from the state’s emissions inspection program.

Utah Vintage Vehicles:

Governor Gary Herbert signed into law SEMA-supported legislation to allow vehicles 30 years old and older to be classified as “vintage vehicles.” Under previous law, Utah reserved the “vintage vehicle” class only to vehicles 40 years old and older. Under the new law, “vintage vehicles” 30–40 years old would be charged a $45 annual registration fee. When a vehicle reaches 40 years old, the registrant would pay a one-time $40 fee. Vintage vehicles are exempted from annual emissions and safety inspections.

Washington Collector Vehicles:

Washington state Governor Christine Gregoire signed into law legislation that originally sought to increase the age requirement for vehicles eligible for registration as “collector vehicles.” Under the new law, which was amended under pressure from SEMA, vehicles seeking registration as collector vehicles and the one-time registration fee would still only be required to be at least 30 years old—not 40 years old as the original bill required. The law also deletes provisions that would have created penalties for violating the limited-use provisions. However, the measure still requires the Department of Licensing to establish a method for law enforcement to readily access collector vehicle information using the collector vehicle’s plate number, which will aid in ensuring that a plate is being used on its properly assigned vehicle.

Washington Registration Fees:

SEMA-opposed legislation to require annual renewal fees for collector vehicle and horseless carriage license plates was defeated. Under the bill, the initial $35 license plate fee for these vehicles would have remained, and a new annual $30 renewal fee would have been added. Under Washington law, a collector vehicle is any motor vehicle that is more than 30 years old, while a horseless carriage is defined as a vehicle that is more than 40 years old.

Washington Street Rods/Customs:

Governor Christine Gregoire signed into law SEMA-model legislation to create a vehicle titling and registration classification for street rods and custom vehicles. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 30 years old and manufactured after 1948. Kit cars and replica vehicles will be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble.

West Virginia Exhaust Noise:

A bill to provide that the noise from a motor-vehicle exhaust system that has been deemed “disturbing or unreasonably loud” constitutes the crime of disturbing the peace was killed. SEMA opposed the bill because it did not supply law enforcement with an enforcement standard, allowing for subjective judgments on whether an exhaust system was “disturbing or unreasonably loud.” The bill also would have made it difficult for hobbyists to replace factory exhaust systems with more durable, better-performing options. Under the bill, violators could have been fined up to $1,000 per occurrence, jailed for six months, or both.

Wisconsin Imported Collector Cars:

The Wisconsin Department of Transportation officially withdrew its proposal to prohibit the registration of imported vehicles manufactured after 1967 that do not meet Federal Motor Vehicle Safety Standards (FMVSS). SEMA opposed the proposal. U.S. law specifically exempts imported vehicles that are 25 years old and older from these safety standards. The Department of Transportation proposal offered no such reasonable exemption.

Wyoming Vehicle Titles:

Governor Matt Mead signed into law a SEMA-supported bill to ease the burden on hobbyists by providing an exemption from bonded title requirements. By allowing enthusiasts to title vehicles being restored for personal use without posting bond, the exemption reduces costs associated with titling hobby vehicles when an original title was never issued or can no longer be located. The new law allows restorers to title their completed works by submitting an affidavit of vehicle ownership, a notarized bill of sale, a written statement of the value of the vehicle and a VIN inspection. To prevent abuse of the new procedure, titles issued under this procedure will not be transferable for the first 180 days after issuance.

Federal Update

Collector Car Appreciation Day:

At SEMA’s request, U.S. Senators Jon Tester (D-MT) and Richard Burr (R-NC) co-sponsored Senate Resolution 154 designating July 8, 2011, as “Collector Car Appreciation Day.” The date marked the second commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA-member companies, car clubs and individuals helped organize scores of events to celebrate the day, including car shows, small-business open houses and “drive your car to work” displays.

Health Care:

The 2010 health care reform law is scheduled to be implemented over a number of years. Efforts to repeal the law have been blocked by the Democrat-controlled Senate. The U.S. Supreme Court will likely consider the law in 2012—specifically whether the federal government can mandate that individuals purchase insurance. Of most interest to SEMA members are the Small Business Health Options Programs (SHOP exchanges) operated by the states, which will allow small businesses (50 employees) and individuals to pool together to purchase insurance that meets or exceeds new federal minimum standards. While the SEMA-supported exchanges should spur competition, they are not required to begin operating until 2014. This is a problem, since most insurance companies are hiking their premiums now under the guise that they need the additional revenue to meet the new law’s current and anticipated requirements. SEMA remains committed to pursuing additional reforms to benefit small business and is working with the National Federation of Independent Business and the Coalition for Affordable Healthcare toward that goal.

Bonneville Salt Flats:

The Bonneville Salt Flats (BSF) is a national landmark under the jurisdiction of the Bureau of Land Management (BLM). Hundreds of speed records have been set at this unique geological site over the past 100 years. For decades, the BSF has been shrinking as salt brine was transferred to an adjoining mining operation to remove potash. A prototype salt replenishment program from 1997–2002 demonstrated that salt brine could be pumped back onto the salt flats to stabilize the landmark and its underlying aquifer. SEMA has joined with other organizations as part of the “Save the Salt Coalition” urging the BLM to mandate a permanent replenishment program as part of its environmental assessment of the mining operation. The mine owner supports the proposal, which would replace salt in the same amount or more. Once the program is in place, the coalition will identify additional replenishment efforts that can be undertaken by the racing community.

1099 Reporting Rule:

After a year of debate, Congress repealed the costly 1099 reporting requirement included in last year’s health care law. Businesses will no longer be required to issue 1099 forms to all vendors from whom they buy more than $600 worth of goods or services in any year, beginning in 2012. The requirement was intended to prompt vendors receiving 1099 forms to pay taxes on the income. SEMA contended that it would fail to generate much under-reported income but would succeed in punishing businesses that already comply with U.S. tax law. SEMA was an active leader in the repeal effort, working on its own and with a number of other small-business organizations.

2011 Tax Cut Compromise:

Lawmakers agreed to extend the 2001 and 2003 tax cuts for two years, through 2012. The SEMA-supported law includes a retroactive extension of the research-and-development tax credit through 2011, a two-year reinstatement of the estate tax at 35% after the first $5 million, a 100% write-off on capital expenses for businesses during 2011 (up from 50%), and a one-year reduction in the worker’s Social Security payroll tax from 6.2% to 4.2%.

State Sales Tax:

Identical bills have been introduced in the U.S. Congress to require companies that sell goods via the Internet and catalogs to collect sales tax in the same manner as “brick-and-mortar” retailers. The so-called “Main Street Fairness Act” would recognize the “Streamlined Sales and Use Tax Agreement,” an ongoing initiative by state and local governments to address the collection of sales/use taxes. The agreement creates a system for companies to register with member states, collect and remit taxes and file one tax return for each state. Under a 1992 U.S. Supreme Court decision, states cannot force retailers to collect use taxes unless the company has a physical presence in the state (“nexus”). The legislation would provide states with this authority and exempt smaller retailers from the requirement.

Lawsuit Abuse:

The U.S. House Judiciary Committee approved a SEMA-supported bill that would require federal judges to sanction plaintiffs and attorneys who file frivolous lawsuits. The bill will now be scheduled for a House floor vote. Under current law, federal judges are permitted but not required to impose penalties. Courts could also award the prevailing parties reasonable expenses and attorney’s fees in defending against a frivolous lawsuit.

Debit Card Fees:

The Federal Reserve Board issued a rule to limit swipe fees imposed on retailers when accepting debit card payments at $.21 per transaction, effective October 2011. Banks and payment processors may also charge $.01 to$.03 more to cover fraud prevention and other adjustments, bringing the total potential fees to $.24. Bank fees were averaging $.44 before the new limits took effect. The rule does not apply to small banks ($10 billion or less in assets) or to credit card fees.

Online Piracy:

The Senate Judiciary Committee unanimously approved a SEMA-supported bill to help combat online piracy and counterfeiting. The legislation would authorize the Department of Justice and intellectual property rights holders to pursue legal actions against rogue websites dedicated to selling counterfeit goods and copyrighted material. The sites are often foreign owned and operated. Courts would be authorized to issue orders requiring search engines in the United States to stop displaying advertising and links to infringing domain names and prevent consumer payments. The alleged infringer could challenge the actions in court. The legislation would address the growing problem of online sales of counterfeit goods, which cost American jobs, expose consumers to health and safety threats and tarnish business reputations. The bill has been sent to the Senate floor.

Warranty Denials:

The Federal Trade Commission (FTC) issued a consumer alert which confirms that the Magnuson-Moss Warranty Act makes it illegal for companies to void a warranty or deny coverage simply because the consumer used an aftermarket part. The alert outlines key provisions in the law that provides protections to car owners. As defined by the FTC, an “aftermarket” part is a part made by a company other than the vehicle manufacturer or the OEM. The FTC’s reference to aftermarket parts is equally applicable to specialty parts. Under the Magnuson-Moss Warranty Act, the warranty cannot be conditioned to a specific brand of parts, services or vehicle modifications unless those parts or services are provided free of charge. The dealer/vehicle manufacturer has the right to deny a warranty repair but must demonstrate that the aftermarket part caused the problem. The warranty remains in effect for all other covered parts.

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 January 31, 2012. The 11-x17-in. notice poster can be downloaded for free from the NLRB website. The rule is widely opposed by business groups, including SEMA, over concerns that it unfairly promotes unionization.

Federal Red Tape:

President Obama issued an executive order directing all federal agencies to identify unnecessary regulations that hinder economic growth. In response, the agencies have identified more than 500 regulatory requirements that can be dropped and potentially save $10 billion in productivity and reduced paperwork. SEMA and many in the business community still contend that the government reforms do not go far enough in lessening regulatory burdens, pointing to other candidates for change such as health care reform and greenhouse gas regulations for stationary sources.

Ethanol Content in Gasoline:

The U.S. Environmental Protection Agency (EPA) ruled that gasoline for 2001 and newer vehicles may contain up to 15% ethanol (E15) rather than 10% ethanol (E10). The EPA agreed with SEMA that the corrosive effects associated with E15 posed a risk to model-year ’00 and older vehicles. The EPA will require that an orange and black label be placed on fuel pumps dispensing E15 gasoline, warning consumers not to use the fuel in older vehicles because it could cause damage. SEMA opposes the EPA’s decision, since it places the burden on the motorist not to misfuel and exposes millions of vehicles to mechanical breakdowns. SEMA has consistently voiced concern that ethanol increases water formation, which can then create formic acid and corrode metals, plastics and rubber. The EPA’s decision permitting E15 sales is still subject to lawsuits and Congressional actions to delay or overturn the decision.

Alternative Fueled Vehicles:

The EPA streamlined the process for approving fuel conversion systems. The systems allow light- and heavy-duty vehicles to run on alternative fuels (natural gas, propane, alcohol, electricity, etc.) while complying with Clean Air Act emissions standards. The EPA has established a three-tiered compliance process based on the age of the vehicle. A certificate is required only for newer vehicles (less than two years old). For intermediate-aged engines (more than two years old but still within their useful life), exhaust and evaporative emissions tests must be performed to demonstrate compliance. For vehicles that have outlived their useful life, manufacturers must submit a description of the conversion to the EPA to demonstrate that it is well-engineered.

Fuel Economy Standards:

The federal government, California regulators and auto industry representatives agreed on 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 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. The automakers pursued an agreement to increase fuel economy, which would also preserve affordability, vehicle choice, jobs and safety. The EPA and NHTSA will now draft regulations to implement the agreement.

New-Car Mileage Labels:

The EPA and NHTSA expanded the amount of fuel economy information contained on new-vehicle window stickers. Among other changes, the information will now include the amount of carbon dioxide emitted by the vehicle. The agencies adopted a SEMA-supported approach to incorporate graphics, increase type size and use other visual tools to help focus consumer attention on fuel economy. The agencies abandoned a proposal to use an A–D letter grading system, which SEMA deemed to be too simplistic. Instead, cars will be ranked on a fleetwide 10-point scale for both fuel economy and greenhouse gas ratings and smog emissions. The labels will be required on all new cars starting in 2013, although automakers and dealers may voluntarily use them sooner.

Vehicle Lighting:

The NHTSA amended FMVSS No. 108 to correct technical errors and address concerns that the standard was changed in substance when it was reorganized in 2007. The standard had been amended many times since it was first adopted in 1967 in order to address technological advances and enhance safety. In the process, the old regulation became unnecessarily complex and difficult to understand. The intent of the 2007 revision was to simplify the regulation to the extent possible. The NHTSA is still reviewing the revised standard to confirm that there were no other changes of substance. The standard is scheduled to take effect in December 2012, although voluntary compliance is now permitted.

Anti-Ejection Rule:

The NHTSA established a new safety standard, FMVSS No. 226, intended to prevent occupants from being ejected through side windows during a vehicle rollover or side-impact crash. Vehicle manufacturers will have flexibility in determining how to meet the standard’s performance requirements. Anticipated automaker alternatives include using advanced window glazing, making side air bags larger and more robust, or tethering side air bags to the base of the vehicle’s pillars. FMVSS No. 226 will be phased in over a four-year period beginning in 2013.

Rearview Cameras:

The NHTSA will soon require that all new passenger cars be equipped with a rearview camera system as required by a 2008 law. The equipment is intended to prevent back-over accidents by alerting drivers when pedestrians are behind the vehicles. The NHTSA is finalizing performance requirements to be achieved but allow manufacturer discretion when selecting the video camera system. The rule is to be phased in by 2014. The specialty-equipment aftermarket has been at the forefront of offering cameras and sensors to address the issue.

Wilderness:

A House Natural Resources Subcommittee held a hearing on SEMA-supported legislation to release 42 million acres of land from a wilderness designation. The lands have been set aside as “wilderness study areas” or “inventoried roadless areas.” The “wilderness” designation is consequential, since no mechanized activity is permitted on lands so designated. Following extensive reviews, the BLM and the U.S. Forest Service have identified the 42 million acres as not suitable as wilderness. The agencies would be directed to manage the lands for multiple uses.

Wild Lands:

The BLM withdrew its controversial “wild lands” policy, which directed lands with potential wilderness qualities to be managed as wilderness. SEMA joined with a number of other organizations to oppose the program implemented last year, since it usurps the exclusive authority of Congress to designate “wilderness.” The BLM manages more than 250 million acres across the western U.S. and Alaska, 22% of which already has the wilderness designation. Under the wild lands program, the BLM was directed to review its inventory in search of more wild lands.  

Thu, 12/01/2011 - 09:25
  Scion FR-S Launch
  Scion unveils its 2013 FR-S compact, which is expected to be of high interest to enthusiasts in the youth segment.

Scion has unveiled the 2013 FR-S compact rear-wheel-drive sports car, a high-performance coupe that will go on sale in the spring of 2012.

The FR-S, which stands for Front-engine, Rear-wheel drive, Sport; is Scion’s version of the car jointly developed in a partnership with Subaru. Subaru’s version is called the BRZ. Both cars are expected to be of high interest to enthusiasts in the youth segment.

Pictured below is an FR-S with modifications by GReddy. (Word is that GReddy may be working on a race version of the FR-S, which is expected to make ideal raw material for drifting and handling events.)

The cars offer the world’s only flat boxer engine in a front-engine, rear-wheel-drive configuration. The engine’s compact size and flat shape allow it to be mounted mid-ship and extremely low, giving the car a dynamically favorable front-to-rear weight ratio of 53:47 and a low center of gravity comparable to some exotic supercars.

The FR-S’s 2.0L, naturally aspirated four-cylinder engine is the product of the joint development between Toyota and Subaru.

  Scion FR-S
  Here we see a customized version of the FR-S, showing how enthusiasts would be likely to adapt to the car. This car has aftermarket wheels, brakes, tires and a custom interior. It’s expected that between Subaru and Scion, plus a European version marketed under the Toyota brand, there will be sufficient volume to make parts development an attractive investment.

The partnership begins by combining Subaru’s newly developed horizontally opposed engine and Toyota’s cutting edge D-4S injection system that incorporates both direct and port injection.

The D-4S system, partnered with a high 12.5:1 compression ratio, results in 200 hp and 151 lb.-ft. of torque.  

Scion plans to hold a measuring session some time in the early spring, which would allow interested SEMA manufacturing members to get an early look at the car.

Pricing has not been announced, but expectations are that the car will launch at a price somewhere under $30,000.



Thu, 12/01/2011 - 09:23

SEMA News—December 2011

9 Current and Emerging Trends and Tools

Developments and Strategies That Every Company Should Explore

 
The best technology available to a business is not necessarily a specific hardware or software tool but rather an overall technology management strategy with a focus on critical thinking and process improvement. 
   
Business technology is in a constant state of evolution, and it can be a maddening chore to try to keep up. It seems that every innovation begets an even newer version only a few weeks later. In some cases, the latest gizmo is only a marginal improvement on what went before, but there are significant trends and tools that simply cannot be ignored. In some very tangible instances, a company can be left behind while its competitors employ technological tools to expand and improve.

“The best technology available to any business in the aftermarket industry is not necessarily a specific hardware or software tool, but rather an overall technology management strategy with a deep focus on critical thinking and process improvement,” said Jason Braun, executive vice president of Meyer Distributing Inc. “Technology is not considered a cost but an investment in gaining a competitive advantage in your marketplace. The key components to identify are the investments in technology that will produce returns on investment greater than costs. Ask yourself when it has ever paid off to be behind the curve.”

One way to keep abreast of the latest technology trends is to watch computer-store advertising for hardware and to keep tabs on sources, such as CNET, for software and more general trends, said Luanne Brown, founder and president of eTool Developers.

“People tend not to realize how far behind they are until they start searching for new products,” she said. “Sometimes you can just Google pertinent topics and 20 forums will come up containing relevant information. When you do that, though, be sure to enter the year with your keywords. Otherwise you’ll find yourself searching through ancient articles that are outdated.”

SEMA News polled Braun, Brown and other business technology experts about current and emerging tools and trends. They provided a list of nine that every business should be aware of and adopt wherever appropriate.

The Foundation for Everything: ACES and PIES

The Automotive Aftermarket Industry Association (AAIA) Catalog Enhanced Standard (ACES) and Product Information Exchange Standard (PIES) are electronic data standards for product information, such as brand identification, part number or category, product description, pricing and specs. Utilizing these standards allows manufacturers and resellers—including warehouse distributors, jobbers, retailers and installers—to quickly and accurately identify specific products and applications.

Confusion is rampant without standards. For instance, does the part fit a Ford F-150 or an F150? Is it a head light or a headlight? Does it weigh 5.3 lb, 5.3 lbs., 5.3 pounds or even 2.4 kilograms (or kg or kgs)? While the answers may be obvious to an intuitive human being, a computer sees each of these examples as a new and unique element. The results of a computerized misinterpretation are frequently mistakes or redundancy in ordering or delivery. Using standard terms to which all parties agree regarding nomenclature, pricing and dimensional data prevents errors and ensures that the supply chain provides the right components for the right applications.

ACES provides a reliable way of defining an application with a part number. PIES defines properties such as dimensions, weights and pricing.

“When a new product is released with PIES in an electronic catalog, it can go through every function of the supply chain down to the retailer’s Internet site automatically and almost instantaneously,” said Bob Castle, director of eCommerce for Covercraft Industries Inc. “How the part is presented and sold is defined at the starting point rather than piecemeal as the engineering, marketing and selling programs develop. It is important that the industry adopts the standards.”

ACES and PIES may seem complex, but upkeep is a relative breeze once the standards are implemented. Learn more here.

Using the Data: Electronic Cataloging

“As technology advances, paper catalogs are becoming less relevant,” said Tim Martin, vice president of communications for K&N Engineering Inc. “Consumers and resellers are using the Internet more and more to research parts, but Internet search technologies—Google, for instance—can be imprecise. They’re quick, but they don’t allow very fine control in the way that an electronic catalog does.”

Presenting information electronically is different from printing it on a sheet of paper. Precision is important for the lookup process—another reason for using ACES and PIES standards. As an example, K&N can provide data in ACES and PIES or a number of other common or proprietary formats, but complete industry adoption of the standards would simplify the process.

“We provide basic product information—specifications, installation instructions, supporting documentation, images, vehicle applications—all the information required to build a fully functional electronic catalog,” Martin said, “but the real question is how somebody gets that information integrated into their business process when they are trying to sell a part or ship a part.”

Martin said that most resellers and distributors need the support of a consolidating agent—a company that specializes in pulling their data together for them—because it can be difficult to compile data from hundreds of manufacturers. Some of the market leaders for data consolidation include Activant, Datagility, Wrenchhead, Digital Performance, DCi and eTool Developers.

“It really comes down to the type of business and the type of data that best fits the business,” Martin said, “but it’s important that manufacturers keep resellers engaged in the selling process. They have to have a way to repurpose, republish and maintain the information. The challenge is that industry clients are published through different consolidators, and it’s very difficult to get timely data across a wide range of product lines. Understanding electronic cataloging technology also provides an understanding of why a data pool is beneficial for the industry.”

Mobile Computing

 
Businesses can use social media to spread the word using customer ratings, reviews, forums and referrals. Messages on social media sites are spread from user to user as people post comments that their friends then view.
   
Remember when a cell phone was just a phone? The advances in smartphone technology—and now tablet computers—are perhaps the starkest indicator of how quickly technology changes. Current trends indicate that more mobile devices will be shipped than personal computers in the next 18 months. And those mobile devices will increasingly be used to research, shop for and purchase goods of all types. Part of that enormous growth will be due to “thin-client” methodologies in which smartphone applications are stored and delivered from “the cloud” (see p. 74) so that vast libraries of software support these powerful handheld devices.

“A larger and larger percentage of people are looking for products on their personal digital assistants, whether they’re iPhones, iPads, Androids or whatever,” Castle said. “It’s evolving even faster than we think, so we need to take a good look at how we are supporting and selling to our customers in those arenas.”

There are smartphone and tablet applications available today that allow a consumer to enter product keywords—P235/70R16 performance tire, for instance—and the phone will not only find the product, but also indicate the price and provide directions for getting to retail stores that carry it.

“And you can extend that to your car and its engine for hard parts and repair,” said Castle. “That same smartphone with another application ties into the OBDII port and tells you that you just got fault number 48223. It tells you where to go to get it fixed before the check-engine light even comes on. And it’s going to get better. We’re where MapQuest was when it could get you to your hotel but might give you 10 extra turns versus the Google maps application today that takes you straight there in five minutes.”

Cloud Computing

“Mobile computing naturally leads to cloud computing,” said Brown. “People think the cloud is this mysterious thing, but it’s really just web-based services at a core location on the web where you connect to your applications. A lot of people do that with social networking, for instance, but now we’re also doing things such as communicating with sales staff and customers.”

In cloud computing, users access shared resources, software and information on demand. Businesses can access those single-point resources from multiple computers rather than housing each piece of software or data on every machine. That allows much smaller individual hard drives even though the random-access memory (the machine’s computing resource as opposed to its storage capacity) remains extremely quick and powerful.

“You access tools or software from the cloud,” said Gigi Ho, founder and data goddess with Digital Performance Inc. “Cloud computing includes software such as Google apps; utilities, such as on-demand data centers like Amazon S3 or Dropbox; web services, such as those used by UPS, the U.S. Postal Service and eBay that allow computing of shipping charges; and Internet technology service providers, such as Postini spam filtering and Dell’s SecureWorks online security system.”

With increases in mobile computing, using the cloud concept allows both individuals and businesses to access information and services from virtually anywhere to extend their reach.

Location-Based Service Applications

 
Electronic cataloging allows very fine control of product searches. Standardized data provides even more accurate information for every link in the supply chain.
   
According to Aftermarketer.com, smartphones are also giving automotive specialty-equipment companies a whole new way to interact with customers through location-based service (LBS) applications, which allow people to tell their online network of friends about their current location. Google and Facebook recently rolled out LBS applications and features, and other popular LBS applications include Foursquare and Gowalla.

“This is a great way for automotive industry companies to reach a new generation of young customers,” said S. Kellie Colf, former Aftermarketer.com vice president of sales and marketing and now director of sales and marketing for eTool Developers. “You can advertise deals and specials through these applications, which entice customers to visit your business and tell their online friends.”

LBS applications encourage impulse buying, Colf said. And unlike direct mail or newspaper ads, customers see LBS promotions when they’re near a business, so the chances are better that they’ll respond to promotions. (For more information about location-based service applications, visit www.facebook.com/places or www.foursquare.com.)

Localized InternetAdvertising

Understanding and properly using search technology is crucial for any business in the Internet age. Some smaller retailers have been hesitant to employ search-engine optimization, doubtful about the need for national reach. But local searches now allow a customer to shop for products with bull’s-eye precision.

“It’s more than just the natural search results that tend to be more global,” said Martin. “A local parts and accessories business can concentrate on advertising to those searches that are occurring within their geographical area, which allows them to cost-effectively advertise as a local reseller. And for the industry as a whole, that can help grow the market.”

Resellers can drive the dialog about vehicle customization in general using localized Internet advertising while providing a regional presence, a face and a point of sale. A wide variety of Internet consultants are available to advise retailers and help develop localized advertising techniques. Get started with the keywords “localized Internet advertising” on any search engine.

Quick Response Codes

Quick response codes (QRC) are the next generation of barcodes. They are the square, 2-D images that customers can scan with a smartphone camera to open a browser to a specific website, automatically add a contact, display a text message, dial a phone number or register a promotion. The customer simply downloads a scanner application from a website such as RedLaser
(www.redlaser.com) to begin scanning quick response codes images.

“QRCs are becoming a way to link traditional marketing with 21st century marketing tactics,” said Colf. “Businesses can place QRCs on in-store posters, direct-mail advertisements magazine advertisements and even billboards. And there are plenty of online websites that allow you to create QRCs for free.”

Popular QRC generators include Paperlinks and Kaywa.

Social Media

 
Some smartphone and tablet applications allow a consumer to enter product keywords—P235/70R16 performance tire, for instance—to find the product, its price and directions for getting to retail outlets that carry it.
   
Facebook, LinkedIn, Twitter and YouTube have created a whole new way to market products and services and to network with either like-minded “friends” or share industry profiles. Businesses can use social media to spread the word using customer ratings, reviews, forums and referrals. New categories, such as group purchasing sites like Groupon and Woot, can be used to drive traffic directly to a business.

The number of people who use these networks is staggering: 500 million on Facebook alone. Messages on social media sites are spread from user to user as people post comments that their friends then view. Because the comments are from a trusted third-party source rather than from a company, the messages carry greater legitimacy. Thus, any social media user can become a piece of a company’s marketing campaign at virtually no expense.

SEMA offers a number of business technology courses in its new Learning Management System, which is under development by the SEMA Education Institute. A social media course is currently available (free to SEMA members and, for a limited time, to nonmembers as well) at www.SEMA.org/sei.

Rapid Prototyping

While all of the other technologies we’ve mentioned here concern marketing and sales, rapid prototyping delves into product development. (See “Just Hit Print” on p. 66) Most manufacturers know about it, but smaller companies shied away because of its high costs. As with most technologies, however, progress brings not only improved systems, but also better pricing.

In rapid prototyping, a 3-D printer reads data from a computer-aided design (CAD) drawing and then builds a prototype by putting down layers of either liquid, powder or sheet material. The cross sections are eventually fused together into a complete model of practically any part, no matter how complex.

“To have speed to market, you have to have pretty robust R&D,” said Ho, “and you have to have a way of getting the product from R&D into production relatively quickly. Rapid prototyping is a fantastic way to go about it, and it’s becoming more economical.”

For information about rapid prototyping, contact Oscar Muñoz, SEMA’s vehicle product data manager, at oscarm@sema.org or 909-978-6731.  

Thu, 12/01/2011 - 09:23

SEMA News—December 2011

9 Current and Emerging Trends and Tools

Developments and Strategies That Every Company Should Explore

 
The best technology available to a business is not necessarily a specific hardware or software tool but rather an overall technology management strategy with a focus on critical thinking and process improvement. 
   
Business technology is in a constant state of evolution, and it can be a maddening chore to try to keep up. It seems that every innovation begets an even newer version only a few weeks later. In some cases, the latest gizmo is only a marginal improvement on what went before, but there are significant trends and tools that simply cannot be ignored. In some very tangible instances, a company can be left behind while its competitors employ technological tools to expand and improve.

“The best technology available to any business in the aftermarket industry is not necessarily a specific hardware or software tool, but rather an overall technology management strategy with a deep focus on critical thinking and process improvement,” said Jason Braun, executive vice president of Meyer Distributing Inc. “Technology is not considered a cost but an investment in gaining a competitive advantage in your marketplace. The key components to identify are the investments in technology that will produce returns on investment greater than costs. Ask yourself when it has ever paid off to be behind the curve.”

One way to keep abreast of the latest technology trends is to watch computer-store advertising for hardware and to keep tabs on sources, such as CNET, for software and more general trends, said Luanne Brown, founder and president of eTool Developers.

“People tend not to realize how far behind they are until they start searching for new products,” she said. “Sometimes you can just Google pertinent topics and 20 forums will come up containing relevant information. When you do that, though, be sure to enter the year with your keywords. Otherwise you’ll find yourself searching through ancient articles that are outdated.”

SEMA News polled Braun, Brown and other business technology experts about current and emerging tools and trends. They provided a list of nine that every business should be aware of and adopt wherever appropriate.

The Foundation for Everything: ACES and PIES

The Automotive Aftermarket Industry Association (AAIA) Catalog Enhanced Standard (ACES) and Product Information Exchange Standard (PIES) are electronic data standards for product information, such as brand identification, part number or category, product description, pricing and specs. Utilizing these standards allows manufacturers and resellers—including warehouse distributors, jobbers, retailers and installers—to quickly and accurately identify specific products and applications.

Confusion is rampant without standards. For instance, does the part fit a Ford F-150 or an F150? Is it a head light or a headlight? Does it weigh 5.3 lb, 5.3 lbs., 5.3 pounds or even 2.4 kilograms (or kg or kgs)? While the answers may be obvious to an intuitive human being, a computer sees each of these examples as a new and unique element. The results of a computerized misinterpretation are frequently mistakes or redundancy in ordering or delivery. Using standard terms to which all parties agree regarding nomenclature, pricing and dimensional data prevents errors and ensures that the supply chain provides the right components for the right applications.

ACES provides a reliable way of defining an application with a part number. PIES defines properties such as dimensions, weights and pricing.

“When a new product is released with PIES in an electronic catalog, it can go through every function of the supply chain down to the retailer’s Internet site automatically and almost instantaneously,” said Bob Castle, director of eCommerce for Covercraft Industries Inc. “How the part is presented and sold is defined at the starting point rather than piecemeal as the engineering, marketing and selling programs develop. It is important that the industry adopts the standards.”

ACES and PIES may seem complex, but upkeep is a relative breeze once the standards are implemented. Learn more here.

Using the Data: Electronic Cataloging

“As technology advances, paper catalogs are becoming less relevant,” said Tim Martin, vice president of communications for K&N Engineering Inc. “Consumers and resellers are using the Internet more and more to research parts, but Internet search technologies—Google, for instance—can be imprecise. They’re quick, but they don’t allow very fine control in the way that an electronic catalog does.”

Presenting information electronically is different from printing it on a sheet of paper. Precision is important for the lookup process—another reason for using ACES and PIES standards. As an example, K&N can provide data in ACES and PIES or a number of other common or proprietary formats, but complete industry adoption of the standards would simplify the process.

“We provide basic product information—specifications, installation instructions, supporting documentation, images, vehicle applications—all the information required to build a fully functional electronic catalog,” Martin said, “but the real question is how somebody gets that information integrated into their business process when they are trying to sell a part or ship a part.”

Martin said that most resellers and distributors need the support of a consolidating agent—a company that specializes in pulling their data together for them—because it can be difficult to compile data from hundreds of manufacturers. Some of the market leaders for data consolidation include Activant, Datagility, Wrenchhead, Digital Performance, DCi and eTool Developers.

“It really comes down to the type of business and the type of data that best fits the business,” Martin said, “but it’s important that manufacturers keep resellers engaged in the selling process. They have to have a way to repurpose, republish and maintain the information. The challenge is that industry clients are published through different consolidators, and it’s very difficult to get timely data across a wide range of product lines. Understanding electronic cataloging technology also provides an understanding of why a data pool is beneficial for the industry.”

Mobile Computing

 
Businesses can use social media to spread the word using customer ratings, reviews, forums and referrals. Messages on social media sites are spread from user to user as people post comments that their friends then view.
   
Remember when a cell phone was just a phone? The advances in smartphone technology—and now tablet computers—are perhaps the starkest indicator of how quickly technology changes. Current trends indicate that more mobile devices will be shipped than personal computers in the next 18 months. And those mobile devices will increasingly be used to research, shop for and purchase goods of all types. Part of that enormous growth will be due to “thin-client” methodologies in which smartphone applications are stored and delivered from “the cloud” (see p. 74) so that vast libraries of software support these powerful handheld devices.

“A larger and larger percentage of people are looking for products on their personal digital assistants, whether they’re iPhones, iPads, Androids or whatever,” Castle said. “It’s evolving even faster than we think, so we need to take a good look at how we are supporting and selling to our customers in those arenas.”

There are smartphone and tablet applications available today that allow a consumer to enter product keywords—P235/70R16 performance tire, for instance—and the phone will not only find the product, but also indicate the price and provide directions for getting to retail stores that carry it.

“And you can extend that to your car and its engine for hard parts and repair,” said Castle. “That same smartphone with another application ties into the OBDII port and tells you that you just got fault number 48223. It tells you where to go to get it fixed before the check-engine light even comes on. And it’s going to get better. We’re where MapQuest was when it could get you to your hotel but might give you 10 extra turns versus the Google maps application today that takes you straight there in five minutes.”

Cloud Computing

“Mobile computing naturally leads to cloud computing,” said Brown. “People think the cloud is this mysterious thing, but it’s really just web-based services at a core location on the web where you connect to your applications. A lot of people do that with social networking, for instance, but now we’re also doing things such as communicating with sales staff and customers.”

In cloud computing, users access shared resources, software and information on demand. Businesses can access those single-point resources from multiple computers rather than housing each piece of software or data on every machine. That allows much smaller individual hard drives even though the random-access memory (the machine’s computing resource as opposed to its storage capacity) remains extremely quick and powerful.

“You access tools or software from the cloud,” said Gigi Ho, founder and data goddess with Digital Performance Inc. “Cloud computing includes software such as Google apps; utilities, such as on-demand data centers like Amazon S3 or Dropbox; web services, such as those used by UPS, the U.S. Postal Service and eBay that allow computing of shipping charges; and Internet technology service providers, such as Postini spam filtering and Dell’s SecureWorks online security system.”

With increases in mobile computing, using the cloud concept allows both individuals and businesses to access information and services from virtually anywhere to extend their reach.

Location-Based Service Applications

 
Electronic cataloging allows very fine control of product searches. Standardized data provides even more accurate information for every link in the supply chain.
   
According to Aftermarketer.com, smartphones are also giving automotive specialty-equipment companies a whole new way to interact with customers through location-based service (LBS) applications, which allow people to tell their online network of friends about their current location. Google and Facebook recently rolled out LBS applications and features, and other popular LBS applications include Foursquare and Gowalla.

“This is a great way for automotive industry companies to reach a new generation of young customers,” said S. Kellie Colf, former Aftermarketer.com vice president of sales and marketing and now director of sales and marketing for eTool Developers. “You can advertise deals and specials through these applications, which entice customers to visit your business and tell their online friends.”

LBS applications encourage impulse buying, Colf said. And unlike direct mail or newspaper ads, customers see LBS promotions when they’re near a business, so the chances are better that they’ll respond to promotions. (For more information about location-based service applications, visit www.facebook.com/places or www.foursquare.com.)

Localized InternetAdvertising

Understanding and properly using search technology is crucial for any business in the Internet age. Some smaller retailers have been hesitant to employ search-engine optimization, doubtful about the need for national reach. But local searches now allow a customer to shop for products with bull’s-eye precision.

“It’s more than just the natural search results that tend to be more global,” said Martin. “A local parts and accessories business can concentrate on advertising to those searches that are occurring within their geographical area, which allows them to cost-effectively advertise as a local reseller. And for the industry as a whole, that can help grow the market.”

Resellers can drive the dialog about vehicle customization in general using localized Internet advertising while providing a regional presence, a face and a point of sale. A wide variety of Internet consultants are available to advise retailers and help develop localized advertising techniques. Get started with the keywords “localized Internet advertising” on any search engine.

Quick Response Codes

Quick response codes (QRC) are the next generation of barcodes. They are the square, 2-D images that customers can scan with a smartphone camera to open a browser to a specific website, automatically add a contact, display a text message, dial a phone number or register a promotion. The customer simply downloads a scanner application from a website such as RedLaser
(www.redlaser.com) to begin scanning quick response codes images.

“QRCs are becoming a way to link traditional marketing with 21st century marketing tactics,” said Colf. “Businesses can place QRCs on in-store posters, direct-mail advertisements magazine advertisements and even billboards. And there are plenty of online websites that allow you to create QRCs for free.”

Popular QRC generators include Paperlinks and Kaywa.

Social Media

 
Some smartphone and tablet applications allow a consumer to enter product keywords—P235/70R16 performance tire, for instance—to find the product, its price and directions for getting to retail outlets that carry it.
   
Facebook, LinkedIn, Twitter and YouTube have created a whole new way to market products and services and to network with either like-minded “friends” or share industry profiles. Businesses can use social media to spread the word using customer ratings, reviews, forums and referrals. New categories, such as group purchasing sites like Groupon and Woot, can be used to drive traffic directly to a business.

The number of people who use these networks is staggering: 500 million on Facebook alone. Messages on social media sites are spread from user to user as people post comments that their friends then view. Because the comments are from a trusted third-party source rather than from a company, the messages carry greater legitimacy. Thus, any social media user can become a piece of a company’s marketing campaign at virtually no expense.

SEMA offers a number of business technology courses in its new Learning Management System, which is under development by the SEMA Education Institute. A social media course is currently available (free to SEMA members and, for a limited time, to nonmembers as well) at www.SEMA.org/sei.

Rapid Prototyping

While all of the other technologies we’ve mentioned here concern marketing and sales, rapid prototyping delves into product development. (See “Just Hit Print” on p. 66) Most manufacturers know about it, but smaller companies shied away because of its high costs. As with most technologies, however, progress brings not only improved systems, but also better pricing.

In rapid prototyping, a 3-D printer reads data from a computer-aided design (CAD) drawing and then builds a prototype by putting down layers of either liquid, powder or sheet material. The cross sections are eventually fused together into a complete model of practically any part, no matter how complex.

“To have speed to market, you have to have pretty robust R&D,” said Ho, “and you have to have a way of getting the product from R&D into production relatively quickly. Rapid prototyping is a fantastic way to go about it, and it’s becoming more economical.”

For information about rapid prototyping, contact Oscar Muñoz, SEMA’s vehicle product data manager, at oscarm@sema.org or 909-978-6731.  

Thu, 12/01/2011 - 09:20

Are you hunting for a new job? The “Positions Available” section in the SEMA Member Classifieds lists more than 50 job openings around the country. Here are some of the latest classifieds posted to the website.

  • Car Guy Nation is hiring independent vendor managers in Chicago, Miami, New York and Los Angeles responsible for 25–50 assigned vendors. Candidates must generate an assigned list of a minimum of 25 target vendors. The draw is $2,500 a month against sales commissions, which is 10% of the gross revenue generated by the independent vendor manager-assigned vendors.
  • Accessories of Chicago, located in Madison, Wisconsin, is hiring an account sales manager responsible for attaining monthly/yearly sales objectives, implementing an accessories selling process in assigned dealerships, improving customer service and communicating with retail and wholesale personnel. Previous successful automotive sales experience is preferred.
  • American Eagle Wheel, located in Chino, California, is hiring an aggressive outside salesperson with three years aftermarket wheel/tire experience and/or automotive parts experience, great customer service skills and the ability to work well in a fast-paced quota-driven environment. Candidates will service existing accounts and cultivate new ones.
  • Custom Performance Engineering Inc., located in Beltsville, Maryland, is hiring an organized sales manager to take the company's sales department to the next level.

For more job listings, click here