News | Specialty Equipment Market Association (SEMA)

Fri, 04/01/2011 - 14:09

SEMA News—April 2011

Writers and Editors Candid Feedback on the MPMC Media Trade Conference: What They Think and Why

Held at the Embassy Suites in El Segundo, California, the 14th annual 2011 MPMC Media Trade Conference brought together media from all over the world with racing and high-performance parts manufacturers for three days of face-to-face, 30-minute meetings.

An unusually popular event, the Motorsports Parts Manufacturers Council (MPMC) Media Trade Conference (MTC), brings together writers and editors from all over the world with racing and high-performance parts manufacturers.

Those not familiar with the MTC event can think of it as “speed dating” between manufacturers and media. It’s designed to facilitate rapid exchange of information between the parties at hand.

One hundred manufacturers—all MPMC members—and hundreds of media attendees gather in the same hotel, and every 30 minutes, a bell rings to end the current meeting and start a new one. That leaves room for 14 meetings a day. The event runs for three days, meaning that as many as 42 meetings can take place for each manufacturer or media attendee, plus lunchtime networking.

Nowhere else can a manufacturer have the opportunity to meet with automotive journalists from the world over in as many as 42 face-to-face, 30-minute meetings. Likewise, nowhere else can editors and writers gather so much technical and new product material in one place.

By interviewing media attendees, we uncovered an unexpected piece of information about the MPMC MTC: Everyone loves it.

Ken Freund, a freelancer who writes for a variety of outlets, attends the MTC to get the latest info on parts that might be right for his audience and arrange test opportunities.

Drew Hardin, editor of Muscle Car Review, finds value in the MPMC conference because he can get access to company principals who can green-light big editorial projects.

Manufacturers seem to love it because it’s an inexpensive, practical and highly productive way of bringing media attention to their newest products. Manufacturer attendance is limited to 100 businesses, and every year, there is a waiting list to get in.

For the manufacturers, it’s educational. The meetings tend to improve a manufacturer’s understanding of what media outlets are available, and which ones might be best suited for targeted marketing. Manufacturers find out which magazines may have shifted their editorial focus and which new media outlets have grown the most, and can also collect business cards to update their media mailing lists.

That exchange of information works for the media as well. “It really makes a difference to be able to discuss back and forth,” said Travis Noack, “what we’re trying to accomplish with the magazine—the directions we’re taking with content—compared to what their mission is as a company and the products that are in line with that.” Noack is editorial director for the Beckett Media titles Street Trucks, MuscleCar Power, Drag Racer and DRIVE! magazines.

Through their conversations, editors can quickly identify those products that their readership will be most excited about, which will help them sell more magazines and increase their audience. In essence, attending the MTC gives them a leg up on their competition.

Enhanced Editorial Access

That’s one reason why, as popular as the event may be with participating manufacturers, it seems to be even more popular with the media attendees.

All the writers and editors we talked to pointed to the fact that MTC meetings create one-on-one conversations between manufacturers and media that could not take place any other way.

“I’ve been a SEMA member since the mid-’70s,” said Dave Wallace, editor of the Source Interlink Media title Hot Rod Deluxe, “and for me, as a freelancer and a journalist, I think this is the best single member benefit I have ever gotten.”

The MTC is unique for the media because it provides quality time with key decision-makers.

“In the old days at SEMA—my first show was probably 1972 or 1973, I guess it was Anaheim then—in those days, when someone walked past my booth, I knew who they were,” Wallace said. “The SEMA Show is still a great thing, but we lost that one-on-one connection. There are so many demands on the exhibitors’ time; you can’t expect much more than a handshake, even if they’d like to talk product with you. They’re trying to do business.”

In short, the MTC—following closely on the heels of SEMA Show—has become a must-attend event for the media because it offers completely different benefits from the big show in Las Vegas.

“The networking opportunities are terrific,” Wallace noted. “You have the principals of the company right there. You can sit down with the people who actually design these products and have a technical discussion for 30 minutes—and an exclusive conversation.”

Noack echoed Wallace’s thoughts. “You don’t get the displays that we have at the SEMA Show, but what I like is the one-on-one personal time that is scheduled with each exhibitor,” Noack said. “We go because it’s a great opportunity to see 30–40 companies all in one place. We actually have scheduled time to sit down and find out what new products they are producing, what they’re excited about and why.”

To make the best schedule possible, media are asked to indicate which manufacturers they would prefer to see when they sign up. Meetings are assigned in advance. It’s a three-day event, but if attending all three days is not possible, SEMA staff try to make the best schedule for writers who can only commit one or two days. There is no registration fee for media, and lunch is free for all.

For Media, a Lot to Like

At the MTC, the freelancers have the same access, the same privilege, as the editors of major magazines

Meetings take place in the individual suites, which allows participating manufacturers to set up their products and offer catalogs, press releases, even snacks. Editors can easily gather up information and high-resolution images as they find out about the newest parts.

The MTC works because, especially for a freelancer, access is everything. Chief editors at major magazines may be able to reach key manufacturer principals on their own schedule, but freelancers have a much harder time getting inside a busy manufacturer’s organization.

“At the MTC, the freelancers have the same access, the same privilege, as the editors of major magazines,” Wallace pointed out. “Any other time, as a freelancer without an assignment, I don’t have a good reason to go bother a Ron Coleman or a Chris Alston, or any of the principals of these companies… In this situation, you have this incredible opportunity to ask questions and learn the technical stuff.

“At the end of the day, I am bursting with information,” Wallace continued. “It gives me story ideas so I can pick up the phone or e-mail different editors, and very often, they would come back with ‘why don’t you do the story?’ For a freelancer, who doesn’t even have to be a SEMA member, it’s an unbelievable opportunity.”

Being able to find time for freelance writers is an equal benefit to the manufacturers. Unlike a staff editor, a freelancer may be able to take a story idea and adapt it for publication in several outlets, using his or her contacts with multiple editors.

Ken Freund, another freelance writer who regularly contributes to three titles in the RV category and four titles in the motorcycle category, put it this way: “My hope is to get a scoop on some new products, to try to find out about stuff before anybody who I compete against—or at least, make sure I get it at the same time.”

Another veteran writer and editor, Drew Hardin, edits Muscle Car Review for Source Interlink Media, among other media outlets. He attended this year not so much for the new product information, but because it allowed him to set-up big project builds and get sign-off from the people who can make it happen.

“At Muscle Car Review, we’ve been talking about doing a comparison test between bias-ply and radial tires. And my meeting with the folks at Coker Tire made that happen,” Hardin explained. “We had not been able to solidify the plan or make progress, really, until I got into that room with those guys and had the conversations we needed to have. We talked about the parameters of the test, about how many pages we would need, the vehicle we were going to use—and everybody became comfortable enough with the concept to green-light it. And I don’t know if that would have happened with just phone calls and e-mails.”

Rodder Senior Tech Editor Ron Ceridono; Flex-a-lite President Lisa Chissus; and Street Rodder Editorial Director Brian Brennan.

Lunchtime provides another chance to network. For both parties, it’s an opportunity to create a relationship-driven business communications channel that can last for years. Pictured here (from left) are Street Rodder Senior Tech Editor Ron Ceridono; Flex-a-lite President Lisa Chissus; and Street Rodder Editorial Director Brian Brennan

Denis Snow and TMR Enterprises’ Trent Riddle compare notes on the morning session at lunch.

Some editors attend to cross-network and discuss story ideas. The conference is particularly valuable for freelancers, who can get story ideas and place them with media outlets, sometimes all in one day. Here, Off-Road Adventures’ Denis Snow and TMR Enterprises’ Trent Riddle compare notes on the morning session at lunch.

So it seems that there is a lot to like for media in attendance. That said, MTC event planners are always looking for ways to refine and improve the format of the event. Matching up the perfect manufacturer with the ideal media is not an easy task, but most attendees told us, most of the time, it works pretty well.

“We probably get about 80%–90% of the people we want to see on our schedule,” Noack told us. “This year I didn’t; I think it was probably a function of trying to jam everything into two days. So I came back on Thursday and popped in on a few people. I found I was able to get together with people at the bar for a drink, at lunch or for dinner to tighten up some of those loose ends.”

It’s worth noting that those media who sign up before the December deadline have the advantage when it comes to
getting meetings with the manufacturers they choose.

To facilitate last-minute changes, appointment grids are made available in a separate suite. The grids are kept up-to-the-minute by SEMA staff to allow media and manufacturers to compensate for late arrivals or unavoidable cancellations. Using these grids, SEMA staff tries to shift available media toward available manufacturers, and vice-versa, on the fly.

Planning for next year’s conference, which will be the 15th consecutive meeting, is already under way. Under consideration are such issues as how to involve new media bloggers or to what extent that would be appropriate. These ideas will be discussed on the council level during the months leading up to next year’s conferences. “We’re always looking for ways to improve the format,” said SEMA Council Director Jim Skelly, “but we really don’t want to change the core of the event.” Based on the feedback from media in attendance this year, we think everyone would agree.

Readers who would like more information about the MPMC Media Trade Conference may visit www.sema.org and pull down the “Events” tab.

Law and Order

Fri, 04/01/2011 - 12:10

SEMA News—April 2011

LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

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

State Update

Arizona Emissions Test Exemption:

			Consumer Rebates Available for Installation of Running Boards Many automakers provide consumer rebates to help seniors install running boards when purchasing a new vehicle. The rebates may range up to $1,000 or even $1,200 for certain vehicle models based on a doctor’s prescription and appropriate paperwork. Each manufacturer has its own program. The National Mobility Equipment Dealers Association (NMEDA) has compiled a list of participating manufacturers with links to the individual programs. For more information on what rebates are available, visit http://nmeda.org/how-to-buy/rebates.

A SEMA-supported bill has been introduced in Arizona to exempt all vehicles more than 25 years old, without condition, from the state’s mandatory biennial emissions inspection and maintenance program. Existing law in Arizona only exempts pre-’67 model year vehicles and those vehicles designated as “collectible,” which are used primarily for hobby activities, insured under a collector car insurance policy and whose owners have registered an additional vehicle for general transportation.

Arkansas Inoperable Vehicles:

SEMA is opposing Arkansas legislation that would allow cities to remove inoperable vehicles from private property if the vehicle is deemed a “nuisance” under a local ordinance. The bill provides no reasonable safeguards for legitimate automotive hobbyists that choose to work on inoperable collector vehicles on private property and establishes no provisions that would enable vehicles located out of public view to avoid being classified as abandoned.

Connecticut Emissions Inspections:

Legislation has been introduced in Connecticut to extend the emissions inspection exemption to vehicles five model years old or newer. Current law exempts vehicles that are four model years old or newer. The measure acknowledges that it is senseless to test newer vehicles, the results of which demonstrate no significant air quality benefits. The idea behind exempting any class of vehicles is to reduce costs while not losing appreciable emissions reductions. This strategy builds support for emissions inspection programs but also directs finite resources to where they will be most valuable in cleaning the air.

Iowa Antique Motor Vehicles:

A SEMA-supported bill has been reintroduced in Iowa to allow ’64 or older motor vehicles to be registered as “limited-mileage” antique vehicles for an annual fee of $10. Vehicle owners taking advantage of this registration class are permitted to drive these vehicles up to 2,500 miles annually. Currently, antique vehicles undergoing the registration process in Iowa for the first time are required to pay an annual $50 registration fee. The bill also allows the owner of a “limited mileage” antique vehicle to display authentic model-year registration plates that are registered with the department as the vehicle’s current and valid registration plates.

Maine Aftermarket Exhaust Systems:

In 2003, a version of SEMA-model legislation to create an enforceable motor-vehicle exhaust noise standard was signed into law in Maine. Prior to 2003, Maine deemed illegal all modifications that increased noise levels above that emitted by the vehicle’s original muffler. Under the SEMA model, an exhaust system modification is legal if it results in a sound level of 95 decibels or less as measured by the Society of Automotive Engineers (SAE) test standard J1169. Last year, the law was again amended to clarify the statutory language and to require the Department of Public Safety to convene a working group to study issues relating to all road noise, including noise created when an exhaust system is not properly installed or maintained or is altered. In its recommendations to the Joint Standing Committee on Transportation, the group indicated that recent efforts have resulted in reducing road noise and has urged that monitoring be undertaken as well as educational efforts by the stakeholders before any additional measures are considered to further restrict the installation of aftermarket exhaust systems.

Maryland Specially Constructed Vehicles:

A version of SEMA-model legislation to create a vehicle titling and registration classification for specially constructed vehicles, including kits and replicas, has been introduced in Maryland. The bill defines a specially constructed vehicle as a vehicle that was constructed from any combination of new or used parts; was not originally constructed by a generally recognized vehicle manufacturer; and has not been materially altered. The measure allows for the use of non-original materials, exempts specially constructed vehicles from standard equipment requirements and emissions inspections and provides for special license plates for these vehicles.

New York “Gas Guzzlers”:

In another misguided attempt to reduce greenhouse gas emissions, legislation has been reintroduced in New York to establish a progressive purchase surcharge for some new motor vehicles based on state calculations of carbon emissions. Depending on the vehicle purchased, this surcharge could require owners to pay up to $2,500 more for the vehicle. Funds collected under the program would be used in part to fund discounts for hybrids and electric cars. If this effort is successful, the effects on a consumers’ ability to purchase the vehicle of choice, not to mention vehicle safety, would
be dramatic.

New York Historic Vehicles:

SEMA-supported legislation has been reintroduced in New York to provide that historical vehicle owners only pay a one-time registration fee of $100 upon initial registration. The reduced registration fee would be available to owners of historical vehicles owned and operated as an exhibition piece or collector’s item and used for club activities, exhibits, tours, parades, occasional transportation and similar uses. Under current New York law, a historical motor vehicle is either a vehicle manufactured more than 25 years ago or one which has unique characteristics and which is determined to be of historical, classic or exhibition value. The $100 one-time fee would replace the current annual fee of $28.75.

North Dakota Vehicle Modifications:

A bill has been introduced in North Dakota to prohibit the modification of any motor vehicle that alters the manufacturer’s original suspension, steering or brake system unless the state highway patrol issues an inspection certificate. Current law permits modification if the equipment meets “SEMA standards.” The bill adds that modifying equipment may also meet Federal Motor Vehicle Safety Standards (FMVSS). Among other things, the bill also would require fenders on all motor vehicles. In a letter to the committee, SEMA informed legislators that SEMA does not set standards. Further, the National Highway Traffic Safety Administration only issues FMVSS to regulate equipment that is required on all new motor vehicles. An aftermarket part may only be regulated if it takes a vehicle out-of-compliance with a required piece of safety equipment when installed.

Texas Street Rods/Customs:

SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles and provide for special license plates for these vehicles has been reintroduced in Texas. The bill 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 measure also allows for the use of non-original materials and creates a titling and registration criterion that assigns these vehicles the same model year designation as the production vehicle they most closely resemble.

Washington State Registration Fees:

SEMA-opposed legislation to require annual renewal fees for collector vehicle and horseless carriage license plates will not receive committee consideration this year. 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 Inoperable Vehicles:

SEMA-model legislation has been reintroduced in Washington state to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents automobile collectors from pursuing their hobby. Junked, wrecked or inoperable vehicles, including parts cars, stored on private property would only require screening from public view if required by local law.

Washington Street Rods/Customs:

SEMA-model legislation to create a vehicle titling and registration classification for street rods and custom vehicles has been introduced in the Washington State Legislature. The bill 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. Under the bill, kit cars and replica vehicles will be assigned a certificate of title bearing the same model-year designation as the production vehicle they most closely resemble. The measure also exempts street rods and customs from a range of standard equipment requirements (only that equipment required in the model year that the vehicle resembles) and emissions inspections.

West Virginia Exhaust Systems:

SEMA-model legislation that would allow vehicle hobbyists to install and use aftermarket modified exhaust systems that meet a 95-decibel limit under a fair and predictable test was introduced in West Virginia. Current state law only allows a muffler originally installed by the manufacturer or an equivalent. Among other things, the bill would remedy the enforcement policy currently used by police officers in which nearly all exhaust system modifications are considered illegal, even where noise levels are not excessive or unusual. Meanwhile, 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 has been reintroduced for consideration in West Virginia. Under the bill, violators could be fined up to $1,000 per occurrence, jailed for six months or both.

West Virginia Antique Motor Vehicles:

Identical bills in the West Virginia Legislature to provide owners of antique motor vehicles with a fair and equitable personal property tax assessment have been introduced. The bills seek to address recent unfair valuation practices which have negatively impacted many hobbyists. West Virginia law defines an “antique motor vehicle” to mean any motor vehicle which is more than 25 years old and owned solely as a collector’s item. Both measures provide that for the purposes of the property tax, the assessed value of an antique vehicle cannot exceed $200.

Federal Update

1099 Reporting Rule:

President Obama has called on Congress to eliminate the costly 1099 reporting requirement from the health care law. Removing the mandate is a top SEMA priority. The rule will require businesses to issue 1099 forms to all vendors from whom they buy more than $600 of goods or services in any year, beginning in 2012. Democrat and Republican leaders in both the House and Senate support the repeal effort. The only stumbling block to eliminating the provision is finding an offset to recoup lost revenues. The requirement was intended to prompt vendors receiving 1099 forms to declare and pay taxes on the income.

SEMA contends that it will fail to collect much under-reported income, but it will succeed in punishing small-business taxpayers that already comply with U.S. tax law.

Regulatory Review:

President Obama issued an Executive Order directing all federal agencies to review their regulations in an attempt to eliminate rules that hinder economic growth. In Congress, Rep. Darrell Issa (R-CA), the new Chairman of the House Oversight Committee, has asked the business community, trade groups and research organizations to identify federal regulations that are restraining the nation’s economic recovery. In the coming months, House leaders will schedule committee hearings to review various regulations. There have already been two actions in response to the Executive Order. OSHA has rescinded a proposed rule to require businesses to install soundproofing and make other workplace changes before relying on ear plugs to comply with noise standards. It also rescinded a proposal to require employers to record repetitive-motion injuries.

The Hottest Vehicles of 2011

Fri, 04/01/2011 - 11:43

SEMA News—April 2011

By Steve Campbell

		Perhaps the most obvious car on SEMA manufacturers’ radar screen is the ’11 Chevrolet Camaro. The base LS version comes with a 312hp V6, and the high-end SS is powered by a 426hp 6.2L V8 and is equipped with a host of add-ons, including Brembo brakes, leather trim, a heads-up display and built-in Bluetooth and USB ports. The Camaro won the SEMA Award in the car category at this year’s SEMA Show in Las Vegas, and by all indications, will continue to be the focus of considerable investment among specialty parts manufacturers.

Each year, a few vehicles dominate the automotive landscape. It stands to reason that the most popular vehicles among consumers and specialty-equipment manufacturers would also be among the most profitable for all SEMA members. To help sort the vehicular wheat from the chafe, we examined a series of forward-looking “SEMA Indicators” to see what they might suggest about the crop of cars and trucks that are likely to make the biggest sales impact in 2011.

Foremost among our fortune-telling tools is the SEMA Show itself. Those who attended last November may be aware that SEMA bestowed a series of awards on select vehicles at the 2010 event. The awards for Hottest Car, Hottest Truck and Hottest 4x4-SUV of the Show were actually selected by the exhibitors based on the number of each model displayed in the exhibit spaces. As SEMA President and CEO Chris Kersting put it: “A booth space is a ballot, and the models these exhibitors selected represent their votes.”

The 2010 SEMA Show featured more than 1,900 exhibiting companies, and the three awards were bestowed upon the Chevrolet Camaro, Ford F-Series and Jeep Wrangler. Those are three perennial all-stars for the specialty-equipment industry, and they have been at or near the top of their categories in sales for decades, in some cases. But, we also wanted to dig further into the list of SEMA Indicators to see if there might be other candidates that automotive retailers ought to be conscious of as the year progresses.

Technology Downloads


		The winner and still champion, Ford’s F-Series pickups were the best-selling vehicles in America for 24 consecutive years and the best-selling trucks for more than three decades. The perennial all-star not only ranked high in downloads from the SEMA Tech Transfer program and was the subject of the best-attended SEMA Measuring Session last year, but it also won the 2010 SEMA Award in the truck division. With so many units out there and so many variations on how a pickup can be customized, it’s a good bet that the F-Series will stay hot among manufacturers in 2WD, 4x4 and heavy-duty work-truck categories.

		The Jeep Wrangler is another perpetual favorite among enthusiasts as well as the general public, and it took the 2010 SEMA Award for being the most ubiquitous 4x4-SUV at the SEMA Show. The Wrangler can be ordered with either of two 4WD systems and heavy-duty axles. The 3.8L V6 may be mated to a six-speed manual or a four-speed automatic transmission. The Wrangler caters to enthusiasts who require off-road equipment, not to mention drivetrain upgrades, so it has been a strong source of parts sales in spite of dips in the economy.

		The Chevrolet Corvette—America’s Sports Car—has been an enthusiast favorite since the first one rolled off the assembly line in 1953. The latest version has been the subject of numerous inquiries to SEMA’s Technology Transfer program. This factory hot rod has turned 190 mph on the track. It’s fitted standard with a 6.2L LS3 aluminum-block V8 and is a slick beast, with a drag coefficient of only .286. Corvette owners, while smaller in number than some cars, are typically enthusiastic about performance upgrades.

The SEMA Technology Transfer program is one of the most popular tools available to manufacturing companies. It allows members to request data, such as CAD files, from the SEMA website. The files can be processed directly into the manufacturers’ computers and production machinery, allowing them to eliminate reverse engineering and proceed directly to prototyping components and assemblies. Companies that utilize Tech Transfer shorten their design time, save thousands of dollars and get their products into the marketplace quicker. By counting the number of requests for each vehicle, we get a kind of poll about the way members plan to spend their R&D dollars. Oscar Muñoz, who administers the program, said that the association received 522 requests from 164 members during the final quarter of 2010.

“Without doubt, data for the Camaro, the Corvette and the Mustang were the most requested,” Muñoz said. “New engines are very popular, and the data being requested included cylinder blocks, the intake tract from the air intake to the cylinder heads, internal parts and engine accessory drives. We’ve seen requests from all of the supercharger companies for the engines and surrounding body panels in those three cars. At the moment, I would gauge musclecars and trucks—both light-duty and heavy-duty—among the vehicles of greatest interest to SEMA members.”

Muñoz said that there have also been a number of truly unique requests that may be indicative of vehicle trends. For instance, several producers of electric and hybrid vehicles have asked for files on complete frame and suspension assemblies as well as drivetrain parts for the ’10 Camaro, ’10 Corvette, ’10 Mustang, ’06 E-250, ’08 Focus and ’08 F-150.

Another SEMA Indicator comes from a program that is a companion piece to Tech Transfer. SEMA Measuring Sessions allow member companies to gain hands-on access to near-production prototype vehicles directly from participating automakers in order to collect surface data. These sessions are generally held at the automaker’s facilities and provide attendees with the opportunity to talk directly with original-equipment manufacturer (OEM) engineers.

SEMA holds about 20 Measuring Sessions each year. By looking at how many manufacturers send measuring teams, we get a sense of where industry interest is focused. According to Bill Wolf, SEMA’s senior director of OEM relations, the companies that attend Measuring Sessions tend to be manufacturers of wheels, suspensions, interior and body accessories, mobile electronics and performance powertrain parts.

“These companies are interested in time savings and engineering and design cost savings,” Wolf said. “They can spend more time with a vehicle at a Measuring Session than if they were to borrow it from a dealer. The sessions that were the most well attended were those for vehicles such as the Camaro, Mustang, Scion tC and Mazda2, along with Ford, Ram, Chevy/GMC trucks.”

The best attended of the most recent sessions were those for the ’10 Camaro in the musclecar category, ’11 Ford F-Series in the truck field, ’12 Ford Explorer in the SUV group, Honda CR-Z in the sporty-car class, and Chevrolet Cruze compact sedan. The best-attended gathering of all is no surprise—it was a two-day session in Dearborn, Michigan, that featured the new Ford F-Series.

The New Product Launch Data and Buyer Interest

Another relevant statistic comes from the SEMA Show New Products Showcase, where manufacturers highlight their newest products. By counting the relative frequency of brand-specific product launches, and looking at which categories were most clicked on, we can get a picture of R&D investments made in 2010, and what retailers will be selling in 2011 and beyond. It’s an inexact measurement because so many products are offered without mentioning any specific application, and it ignores entire categories such as street rods and restoration parts. Still, the results confirm the other indicators.

For example, there were at least 83 Ford Mustang-specific product offerings, and 76 product descriptions that mentioned the word “Camaro.” Jeep Wrangler was third with 31 applications. The fullsize pickups were all about the same in terms of new applications: the F-Series had 15 new products; Ram had 14; and a search for Chevy Silverado turned up 14 new products. The somewhat lower numbers for the pickups suggests there are many products that are generic, such as bed boxes, lights or winches. Other models that turned up frequently in product descriptions were Toyota FJ Cruiser, Nissan 370Z, BMW, Range Rover, Corvette, Subaru WRX and Honda Civic.

Another more exact insight comes from buyer card-swipe data, indicating which categories were of greatest interest to buyers at the Show. Among registered buyers at the 2010 Show, the top 10 hot categories were, in order: wheels; exterior accessories; suspension and steering; waxes and polish; engines and engine parts; brake systems; tires and tire accessories; exhaust systems; interior accessories; and lubricants. This represents a bit of a shift from 2009, when engines and engine parts were the number one category among buyers.

By combining the two observations, it seems clear that wheels, suspension components and engine parts for musclecars, Jeeps and pickups will be fertile ground for manufacturers and retailers in 2011.

Spy Shot Clicks

New vehicles that are near release or are on the horizon also pique interest as SEMA Indicators. A feature called “Spy Photos” in the association’s SEMA eNews weekly electronic newsletter has developed a devoted following. Each week, Brenda Priddy and her band of surreptitious shooters capture a few unauthorized frames of test vehicles that the automakers have out on the roads but aren’t quick ready for the general public to see. Jason Catullo, the newsletter’s associate editor, said that five such shots created considerable spikes in viewership in the last year. Logically, these are the vehicles that specialty manufacturers find most interesting.

The Ford Taurus SHO tallied top interest, followed by the announcement that the Chevy Malibu would be receiving a turbocharger, an Australian version of the Ford Falcon, the Chevrolet Volt and the Acura TL.

“On a general note, our readers are most interested in domestic models,” Catullo said. “Ten domestic models that scored higher than average in the last year included the Chevrolet Camaro Z/28, an SRT8 development vehicle, the Jeep Grand Cherokee, the Cadillac CTS Wagon, the Ford F-150 Raptor, the Volt, the Australian Ford, the Malibu with Turbo and the Taurus SHO. Even though only four truck or SUV photos ran during the entire year, they all scored higher than average and were all domestic.”


		The Chevrolet Cruze led in Measuring Session attendance for its compact sedan class. The Cruze is touted by Chevrolet as having the “spaciousness and amenities of a midsize car with the fuel economy of a compact.” It’s powered by either a 1.4L Ecotec turbocharged engine or the standard 1.8L Ecotec and includes electronic stability control with rollover sensing and traction control.

		Tech Transfer data on the Mustang was also among the most requested, and the GT500 version ranked very high in auction searches on eBay. The Mustang GT is equipped with a 412hp 5.0L V8 engine and a six-speed manual transmission, while the base V6 delivers 305 hp and 31 mpg. There was a large number of customized Mustangs at the SEMA Show in 2010, and a significant factor in parts launches as seen in the New Products Showcase.

Our final specific-vehicle indicator comes from eBay. We asked the highly trafficked auction site to let us in on the top makes and models viewed in the past six months, and this time, the results were surprising. The top search topic was the high-zoot Maybach, with replicas and kits based on Porsches and Corvettes in second place. When we asked about views for domestic vehicles, eBay’s experts told us that the top five most-viewed vehicles were the Tesla Roadster, Shelby GT 500, Galatea kit car, Hummer line and various Cadillac models.

In a more general sense on the international front, Reuters reported in February that the global auto market was on an upswing. Of course, that was prior to the latest unrest in the Middle East and the resulting uncertainty in fuel prices, but it’s worth noting that the emerging markets were looking more positive and U.S. sales were stronger, both of which affect total global sales. Toyota, the world’s number-one auto manufacturer, raised its expectations based on stronger projections and cost-cutting measures, and Reuters said that Toyota was forecasting better-than-expected sales in Asia, Japan and Russia.

Reuters also reported that BMW unit sales rose 28% in January and expected to reach its target of selling more than 1.5 million units in 2011. Daimler, meanwhile, was aiming to sell the highest number of cars in the company’s history, with Mercedes-Benz sales rising 23.1% in January. And Audi posted a global sales increase of 22.6%, continuing to grow in both China and the United States. That tells us that the luxury side of the market is coming back, after a long dormant period.

Fuel Prices: The Wild Card

Another indicator that may trump the rest is the price of fuel. We’ve been seeing a steady climb over the past few months, and there is nothing in the near future that portends a shift back southward. In fact, the U.S. Energy Information Administration (EIA; U.S. Department of Energy) said in February—even before the revolutionary goings-on in the Middle East—that the average price of a barrel of crude oil would rise from about $93 in 2011 ($14 higher than the average in 2010) to $99 in the fourth quarter of 2012. That translates to $3.17 per gallon for regular-grade gas this year ($.39 higher than last year) and $3.29 per gallon in 2011 but about $.05 higher in the peak driving season of April through September. Things are so uncertain, however, that the EIA is hedging its bets with a further 25% probability prediction that prices could exceed $3.50 per gallon in the 2011 peak period and an 8%–10% probability that they could exceed $4 per gallon during the peak, with diesel prices rising even higher in each forecast.

If you believe fuel prices are going up, you might expect the sales of fullsize SUVs and pickups to go down. According to a National Automobile Dealers Association (NADA) used-car guide industry update in January, if fuel prices continue to increase, consumer demand may again shift toward smaller, more fuel-efficient vehicles, which could lead to a softening of prices for larger, more fuel-inefficient ones. “While it doesn’t appear that we’ll experience significant fuel-related shocks over the course of the next 12 months,” the NADA guide said, “the anticipated increases in the cost of fuel will most likely be enough to stifle the two-year explosion in prices enjoyed by certain truck segments.”


The best-attended SEMA Measuring Session for an SUV in 2010 was the one held for the Ford Explorer. The Explorer comes with the very popular MyFord Touch driver-connect technology and SYNC integrated communications and entertainment system as well as stability and curve control technology, and it lays claim to best-in-class fuel economy, which could be an increasingly bigger deal as oil prices continue to escalate. The Explorer is likely to become a high-volume SUV, which could lead to significant demand for upgrades in 2012 and beyond.	The Honda CR-Z made our list of hottest vehicles for 2011 by virtue of leading the Measuring Session attendance in the sporty-car class. The CR-Z two-passenger coupe is a gasoline-electric hybrid that pairs a 1.5L i-VTEC four-cylinder engine and a compact and lightweight Integrated Motor Assist system. It’s available with a six-speed manual transmission or an automatic continuously variable automatic.	The Ford Taurus SHO tallied the greatest number of clicks in the popular “Spy Photos” SEMA eNews feature. The weekly electronic newsletter’s subscribers were obviously interested in the renewal of the Super High Output (SHO) vehicle, which is powered by an EcoBoost twin-turbocharged engine that generates an estimated 365 hp at 5,500 rpm and 350 lb.-ft. of torque at 3,500 rpm. Though it’s early in the year, the Taurus SHO has already won several awards, and as a high-performance car, it’s logical to predict popularity among enthusiasts who will customize.

The Tesla Roadster electric supercar was the most-viewed domestically produced vehicle on the eBay online auction site over a six-month period from September 2010 to February 2011. The Roadster is hand built and skinned in carbon fiber. Its electric powertrain, which produces zero emissions, propels the car to a top speed of 125 mph and accelerates to 60 mph from a standing start in 3.7 seconds. Its onboard charger can be plugged in to any 110- or 220-volt electrical outlet. Given time, it could be a player in the “driving green” segment of the aftermarket.	Sheer popularity: The Toyota Corolla/Matrix was the top-selling car in the United States during January 2011, according to Automotive News. All models are equipped with the 1.8L DOHC four-cylinder engine, which can be ordered with a five-speed manual transmission or a four-speed automatic. Corollas are also equipped with an electronic stability control system and traction control. The Corolla shares platform components with the more enthusiast-oriented Matrix; between the two, specialty parts manufacturers can expect a high-volume market.	Pickups, perhaps the ultimate generic automotive commodity, will continue to be ripe for lowering, lifting and outfitting for towing. Although the ’10 F-Series pickups seemed to generate the most interest, Chevy Silverado/GMC Sierra and Ram pickups are high-volume opportunities with higher-than-average rates of adaptation using specialty equipment. Approximately equal numbers of new products were launched in 2010 for each of the three models.

Truck, SUV & Off-Road New Products

Fri, 04/01/2011 - 10:56

SEMA News—April 2011

Truck, SUV & Off-Road New Products

NEW PRODUCTS

View all Truck, SUV & Off-Road Products and Expert Comments on PDF

Forty Wranglers were on display in exhibitor booths, combined with another 54 on display throughout the Las Vegas Convention Center during the 2010 SEMA Show. Clearly dominating the floor, Jeep Wrangler was presented with the 2010 SEMA Award for Hottest 4x4-SUV. This example was built by Warrior Products and features accessories from a host of manufacturers, including Airaid, HoodLift, ProComp USA and ScanGaugeII.

The light-truck industry was particularly hard hit by the recession that began about three years ago, but at last, the tide seems to be turning. The automakers are seeing definite and consistent sales increases, and while some sectors of the truck market remain tentative, fullsize pickups and crossover vehicles are clearly on the upswing. Of the 10 top-selling vehicles in January of 2011, according to Automotive News, the Ford F-Series pickup was number one (again), the Chevrolet Silverado was number two and the Honda CR-V was number six.

At the 2010 SEMA Show, exhibitors in the Truck, SUV & Off-Road section created a similar feeling of optimism about the year ahead. With booth registration up 9% from the previous Show, the upper level of the South Hall was a shrine to this market featuring more than 250 exhibitors. New product registrations also soared, with truck, SUV and off-road exhibitors placing 284 products in the New Products Showcase.

While their entries tend to run the gamut of applications, manufacturers in this market dedicated the bulk of their research and design money to five product categories. As evident by the registration data taken from this year’s Showcase, five product categories dominated exhibitors’s submissions—winches, suspension accessories, trailer hitches, driving lights and bumpers. Much of the new product activity in the off-road segment centered around Jeep Wrangler applications, which commanded significant investment among manufacturers in the segment. The Jeep Wrangler was also the most frequently-seen display vehicle on the floor in the off-road segment, while the F-150 was the most-
displayed truck.

Four out of five buyers (74%), visited the New Products Showcase, where truck, SUV and off-road manufacturers made a strong impact on attendees. Their entries were scanned 11,051 times by attending media and buyers using handheld remote scanners.

Typically, once buyers identify the products they find most intriguing, they hit the SEMA Show floor and meet with exhibitors face-to-face.

This year, active buyers in the truck, SUV and off-road market took advantage of the opportunity, introducing themselves and scanning their badges at booths in this section a total of 31,252 times.

The following are New Products Showcase entries dedicated to truck, SUV and off-road applications. Along with the products, we’ve interviewed industry executives to get their thoughts about the trends they perceive and some words of advice about what might lie ahead. You’ll see their comments and predictions as you page through the story.

AR Ventures Articulating Hitch Ball Mounts 505/343-1705 www.arventureshitches.com PN: AR-007 Articulating pro hitch ball mount.	Runner-Up—Best New Packaging Design AMP Research Bed X-Tender 888/983-2204 www.amp-research.com PN: 74504-01A	Bestop Inc. Cleaner and Protectant 800/845-3567 www.bestop.com PN: 11205-00 Bestop-recommended fabric-care products now available for Bestop soft-tops and accessories.
Ascend Industries Inc. Diamond Step Bar With LED Lights 714/593-3400 www.ascendtruck.com PN: VB-5000 Series Highly polished stainless-steel step bar with LED ground effects that is compatible with factory keyless remote and dome light.		Baja Designs/Soltek Light Systems Strykr Pro 800/422-5292 www.bajadesigns.com PN: 63-0012 A 700-Lumen helmet light that is waterproof and rugged. High, medium, low and strobe modes. Light head weighs only 100 grams. Battery lasts from 3–24 hours.	Baja Designs/Soltek Light Systems Stealth LED 800/422-5292 www.bajadesigns.com PN: 620270 High-performance LED light bar for off-road or auxiliary lighting. Each 10-in. segment provides 3500 lumens (equivalent to HID)of light put exactly where the user needs it.
Bestop Inc. Under Seat Locking Storage Box 800/845-3567 www.bestop.com PN: 42641-01 The Under Seat Locking Storage Box allows secure, out-of-sight storage of valuables and is custom-designed to easily bolt in directly below the driver’s seat.		Bestop Inc. HighRock 4x4 Narrow-Style Front Bumper 800/845-3567 www.bestop.com PN: 42933-01 Bestop’s new narrow bumper hits the design points today’s Jeep owners are looking for and are carefully designed to not hit anything else. Short design eliminates any unnecessary overhang; will clear any size tires. There is still room for extraction points.	Bestop Inc. TrekStep for Jeep Wrangler 800/845-3567 www.bestop.com PN: 45299-15 A spring-loaded step that easily extends down with the push of a foot and retracts up to store securely under the rear bumper when not in use.
BAK Industries BakBox 818/365-9000 www.bakliner.com PN: 90-XXX Bakbox is the world’s first and only toolbox that folds away and disappears to provide full, unobstructed use of the truck bed when needed. It ships UPS and is invisible when closed. It works with all tonneau covers.		Couplemate SUV Step 775/219-7708 www.couplemate.com PN: CM010 A fantastic innovation for the single-strut designed base plate. Importantly, all existing Couplemate baseplates can accept the new SUV step.	Carriage Works Billet Accessories ’11 Ford Super Duty Grille 816/966-1405 www.carriageworksinc.com PN: 44782 A ’11 Ford Super Duty XL, XLT, Lariat and King Ranch monster bar quick-replacement billet grille. Provides show-quality customized appearance at an affordable price.

Carr
Work Truck Step 24
800/800-1084
www.carr.com
PN: 501020
Carr’s 24-in. work truck step is a hands-free step that provides safe and secure access to the side of a truck.

Ford is profitable, GM doesn’t need bailout money anymore and the OEs are getting leaner in their manufacturing. That will eventually trickle down to manufacturers, retailers and consumers. Confidence will grow, sales will trend upward and anyone who survives this economy will emerge leaner, stronger and positioned to be more profitable.
However, retailers have yet to fully embrace online marketing. A great website is vital. With a properly built site, retailers have the chance appear on the first page of Google’s results when a consumer searches a term such as “Truck Caps Los Angeles.”
Google knows where customers are located and can refer them to a retailer who has a highly optimized website. But you get what you pay for. Many businesses spend around $1,500 on a website, but a $5,000 site has a chance to be your top-performing salesperson. The same goes for things such as e-mail marketing and Facebook for business.
Look at how many of the right customers you can put your company and products in front of, and the cost per customer. People are out there buying the products you sell. You just have to make sure they’re buying them from you.

—Chris Ripper
General Manager, ATC Truck Covers

Carr Work Truck Step 24 800/800-1084 www.carr.com PN: 501020 Carr’s 24-in. work truck step is a hands-free step that provides safe and secure access to the side of a truck.	Carriage Works Billet Accessories ’11 Chevy HD 816/966-1405 www.carriageworksinc.com PN: 3804 A ’11 Chevy heavy-duty bolt-over wire mesh grille fits all models. Provides show-quality customized appearance at an affordable price.	CargoBuckle Mini G3 317/896-9531 www.cargobuckle.com PN: F103745 The CargoBuckle Mini G3 retractable ratchet tie-down system takes the hassle out of securing gear. Six feet of 1-in. webbing enables users to tie down more equipment in more applications, conveniently and securely. Just hook, ratchet and go!
Cognito Motorsports FSLK100430 661/588-8085 www.cognitomotorsports.com PN: FSLK100430 Front non-torsion-bar drop 4- to 6-in. suspension lift system for ’11–present GM eight-lug trucks and SUVs.	Cognito Motorsports Support Kit 661/588-8085 www.cognitomotorsports.com PN: PISK3008 Pitman/idler-arm support kit for ’11–present GM eight-lug trucks.	Cognito Motorsports Control Arm 661/588-8085 www.cognitomotorsports.com PN: UCAK100051 Upper control arm kit for ’11–present GM eight-lug trucks.
Big Time Auto Parts/Austin Int’l BT-410RAW LED Taillight +886-6-2663121 www.bigtime.com.tw PN: BT-410 RAW LED Tail Lamp Designed for OEM and aftermarket. Four multi-functions: turn signal /driving / brake /reverse. Includes 28 pieces RAW LEDs. Voltage system: 12V/24V. ABS housing and reflector.	Cognito Motorsports YR+6-Arm-Kit 661/588-8085 www.cognitomotorsports.com PN: YR+6-ARM-KIT Yamaha Rhino ’04–present 6-in.-longer arm, long-travel suspension system.		Comeup Industries Inc. DS-9.5rsi Self-Recovery Winch +886-2-2694-7011 www.comeupwinch.com PN: 293244 Comeup DS-9.5rsi is a powerful and fast electric winch. New generation with innovative features make it absolutely brilliant. Incredible, submersible, sealed DS-series self-recovery winch.

Convert-A-Ball Dist. Super-Duty Cushioned Ball Mount 308/254-7115 www.convert-a-ball.net PN: AMSC-V2 Super-duty cushioned ball mount fits in 21/2-in. receiver hitch. Rated at 18,000 lbs. GVW; 2,000 lbs. GTW. Internal polyurethane cushions act as a shock absorber.	Coplus Inc. Skull Mirror Cover +886-6-265-5599 www.scoo.com.tw PN: 9501001 Skull mirror covers present innovative looks through 3-D skull and flame designs. Amber LED lights inlaid into skulls’ eyes will flash along with turn signals.		Couplemate Brake Controller 775/219-7708 www.couplemate.com PN: CM710 Mounts under dash/on the trailer. Multiple vehicles can tow a trailer with electric brakes. This break controller is ideal to control from one to three axles.

Power Tools for Business Users

Fri, 04/01/2011 - 10:17

SEMA News—April 2010

Power Tools for Business Users

By Joe Dysart

Business users who are already comfortable with Twitter are in luck: There are currently hundreds of analytics and time-saving tools available that will enable you to quickly sort through the noise, retrieve the insights you want and generate the reach you’re looking for with minimal effort.

“Twitter can be a virtual goldmine of information for brands,” said Hollis Thomases, author of Twitter Marketing: An Hour A Day. “To help you monitor conversations and parse through data, Twitter and other third parties provide tools that let you search on particular keywords and receive alerts when someone mentions you. The results can help you understand how people use Twitter and how you tweet in relationship to those tweets—which helps you define and create a Twitter strategy.”

For would-be power users, here’s a cherry-picked selection of some of the best tools for business, recommended by Thomases and other social media marketing experts:

Measure the Impact of Your Tweets: Everyone has their good and bad days on Twitter. Tweet Effect enables you to help spot which of your Tweets were home runs by highlighting the posts that generated more followers for you and which caused people to say goodbye.

Measure Your Overall Influence on Twitter: There are a number of tools that will slice and dice your influence on the social network. Twitter Grader is one of the easiest to use. Just type in your Twitter username, click the grade button and you’ll see how you stack up. TweetLevel, a similar tool, ranks your company’s status on Twitter using four metrics: influence, popularity, engagement and trust. Twinfluence offers similar analytics, as does TweetReach.

Do a Comprehensive Analysis: For a more in-depth look at how you’re doing on Twitter, check out Twitalyzer, which offers an entry-level service and a paid-level service. “This grading program ranks based on such factors as generosity, clout, velocity, influence and signal-to-noise ratio,” Thomases said. “Twitalyzer gives you countless other statistics and graphs depicting those factors changing over time.”

The good news with this service is that its creators just released a new version in January—Twitalizer 4.0—which was also accompanied by price breaks. Other facets of the facelift include easier-to-read charts and graphs, greater ability to customize, tighter integration with Google Analytics and daily reporting for dozens of key metrics.

“Twitalyzer is really just two guys, Jeff Katz and Eric Peterson, both of whom have spent a fair amount of time working in the digital management space,” said Twitalyzer CEO Eric Peterson. “For the past two years, we have spent our evenings, weekends and free moments devising new ways to help businesses and organizations understand and optimize their efforts in short-message media.”

Quickly Discern Which Followers Are Most Influential: It’s nice to be popular and be followed by many on Twitter. It’s nicer when those followers are influential people who can give real legs to your brand. Topify identifies these people for you by giving you in-depth information on each person who decides to follow you on Twitter, including the size of his or her own following, a bio, his/her last five tweets and similar statistics. The information automatically arrives by e-mail to you each time a new follower signs up.

Multi-Post to Many Social Networks Simultaneously: Given that many Twitter marketers are also trying to reach out to customers on other social networks, such as Facebook and LinkedIn, it’s no surprise that there’s a tool to enable you to send the same post to all of your social networks simultaneously. Hellotxt is among the most ambitious. It allows you to simultaneously post to more than 50 social networks with a simple button click. Natter, meanwhile, is targeted to users interested only in monitoring and posting to the two biggest social networks, Twitter and Facebook.

Set Up Shop for Team Tweets: CoTweet enables a number of company employees to tweet from a single company account on Twitter, making it easier to solidify your brand. ChatterBox and TweetFunnel offers similar capabilities.

Do an Instant Twitter Poll: TwtPoll enables you to easily put together a multiple-choice question poll on Twitter. “A Twtpoll can be set-up and launched in seconds, and you can embed the survey and survey results in a website,” Thomases said.

Showcase Twitter Posts on Your Website: Keep more eyeballs glued to your homepage with Twitter Widgets, customizable tools that display your latest posts from Facebook, Blooger, Typepad and other social media tools. A similar tool, Jotabl, allows visitors to your website to get in on the action by displaying their tweets in a social media box on your homepage or anywhere else you’d like to place it.

Admit It, Size Matters: Get more into your posts by shrinking the length of the links you use. There are a number of services that will do this for you. Goo.gl, from search titan Google, seems among the most reliable. (Something tells me that company and its link-shrinking service will be around for awhile.) Other champions of shorter is better include Bit.ly, t.co, TinyURL and v.gd.

Break the 140-Character Tweet Barrier: One of the great charms—and great annoyances—of Twitter is that every tweet must be 140 characters or less. BiggerTwitter allows you to sidestep truncation by allowing you to easily drop a link in your tweet for thoughts that need more than 140 characters to make sense.

Post Multi-Lingually: Babller enables you to read and post on Twitter, Facebook and LinkedIn in a number of languages. Be sure your customer service (phone, e-mail, support people) can handle all the new business you’re looking to generate in a foreign language.

Get the Big Picture: If you’re looking to sift for megatrends on Twitter, including what people are tweeting about most at any given moment, Tweetmeme is your ticket.

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York. Contact: 631/256-6602;
joe@joedysart.com; or www.joedysart.com

Global Legislative/Regulatory Update

Fri, 04/01/2011 - 10:06

SEMA News—April 2011

Developments Around the World

By Linda Spencer

Below is a roundup of recent and proposed legislative and regulatory actions around the world that will directly impact the specialty-equipment industry. For more information on any of these items, contact SEMA International Relations Director Linda Spencer at lindas@sema.org.

EUROPEAN UNION

An Imperfect Union

		The Australian Automotive Aftermarket Association (AAAA) has gathered more than 30,000 surveys regarding an Australian federal government proposal to severely restrict the use of traditional metal and alloy bull bars (also known as “roo bars”) through the adoption of a European directive that has already pulled most bull bars off vehicles in Europe.

Industry sources are reporting that a two-year-old regulation supported by the specialty-equipment industry is helping, but that problems still exist. The law was designed to ease restrictions on the sale of products, including automotive accessories and performance equipment, within Europe. Regulation (EC) No 764/2008, as it’s officially known, is designed to enhance trade among the 27 European Union (EU) countries as called for in the Treaty on the Functioning of the European Union upon the founding of the EU. The legally binding document obliges member states to accept products lawfully marketed in other member states.

These regulations were enacted in recognition that this principle was not fully operational. Local governments were too often invoking what was to be a limited exemption in the case of public security, or sometimes without giving any reason at all. The European Parliament and European Council now explicitly restrict the ability of local governments to utilize national technical rules to stop the sales of specialty and other manufactured goods. EU officials transferred the burden of proof regarding the products’ safety or environmental risk to the government, rather than the company. Moreover, a member state bears the burden of proof that the stated aim cannot be achieved by any other less restrictive means.

For the most part, the sale and marketing of specialty products are taking place without barriers. However, it has been reported that national governments are nevertheless hampering the growth of the specialty market in this densely populated region of 501 million people by denying consumers the ability to legally use aftermarket products. Specifically, motorists are reporting difficulties at times in obtaining needed approvals to legally drive on European roads due to the presence of specialty products. These approvals must show that all modifications were made legally. The registration papers, therefore, must match all of the changes made to the vehicles.



			Executive Summary: Global Regulations Update For the most part, sales of specialty products are taking place in Europe without barriers. Some problems being encountered in Austria, Germany, Italy and Spain. SEMA working closely with European Tuning Organization to address these issues. New European tire rating system will not affect pre-’90 vehicles. Use of protective “bull bars” under attack in Australia, and strict penalties are enacted for drivers with multiple moving violations. Indonesian language to be affixed to a wide array of products sold in that country.

Among the countries in which consumers are reporting problems to date are Austria, Germany, Italy and Spain. Motorists in each of these markets are required to update their registration papers to reflect modifications, and these revised papers are being denied specifically because the product has not been tested to local regulations. The European Commission has agreed to review several of these cases, and another case is being heard in the German courts.

In an update to a previous SEMA News article, a consumer facing difficulty in obtaining revised motorcycle registration papers due to the installation of carbon-fiber wheels that already appear legally in the United Kingdom market is stuck in appeal. Local authorities are fighting a lower-court ruling that favored the consumer, noting that the state had not provided proof that the product was dangerous and, thus, should be banned. The court said, in part, “The long-lasting, unproblematic and accident-free use in Great Britain and the Netherlands in public road traffic and at international motorcycle racing makes such proof unlikely.” Ludwigsburg, Germany, officials are appealing the ruling, and SEMA is working closely with the German association VDAT (Verband Deutscher Automobil Tuner) and the European Tuning Organization in order to address these issues.

Tire Labeling Comes Into Force in 2012; Vintage Tires Exempted

		Tires for pre-’90 vehicles are exempted from upcoming new labeling requirements (for fuel efficiency, wet grip and external rolling noise) that are slated to take effect in November 2012. Tires sold in Europe will be rated from A to G—a classification system that is used on European energy labels in a wide range of applications ranging from appliances to buildings and aircraft.

Tires for pre-’90 vehicles are exempted from upcoming new labeling requirements (for fuel efficiency, wet grip and external rolling noise) that are slated to take effect in November 2012. Tires sold in Europe will be rated from A to G—a classification system that is used on European energy labels in a wide range of applications ranging from appliances to buildings and aircraft. The regulations were developed as part of the efficiency action plan (COM, 2006, 545), which seeks a 20% reduction in the total energy consumption of the European Union by 2020. Tire makers are being “encouraged” to comply with the regulation before its formal introduction in 2012. Racing/sports tires are also exempted from these new requirements.

EU Restrictions on the Sale of Chemicals

Manufacturers and importers of automotive products sold in the European market are required to ensure that their products comply with the Registration, Evaluation and Authorization of Chemicals Regulation (REACH; European Regulation EC 1907/2005). REACH requires companies to gather and report information on the covered chemical substances to the European Chemicals Agency. The reporting requirement generally applies to those using more than one ton of these hazardous chemicals in the production of their products each year, and covered substances intended to be released under normal use.

A guide has been published by the European car manufacturer’s association providing information specific to the automotive industry. The document is available online at http://tinyurl.com/acea-be. Among the key points noted in the guide are that raw materials used in paints, rubber, adhesive, etc., should be registered independent of when or who added them to the product and that non-EU companies have no obligation under REACH. Compliance with REACH must be ensured by each company’s EU importers. Non-EU companies should provide the necessary information in order to allow importers to fulfill
their obligation.

Brakes

A working group on brakes and running gear for the United Nations Economic Commission for Europe (UNECE) is working on a new regulation on replacement brakes. The UNECE, established in 1947 to encourage economic cooperation among its member states, is one of five regional commissions under the administrative direction of United Nations headquarters. Specialty brakes of a different size from the OE brakes are not covered under this proposal. However, there is a concern that countries which do not already require extensive testing by outside testing agencies (only a few nations, including Germany, Switzerland and Spain, already require such testing), may begin to require manufacturers of specialty brakes to undertake the same extensive tests that will be newly imposed on replacement brakes, even though specialty brakes are not covered in the regulation under consideration.

Germany Votes to End National Approval System

The German Parliament has voted to eliminate the so-called Teilegutachten, which loosely translates as “parts approval certificate.” The Teilegutachten has been the preferred approval route for many companies due to lower costs and quicker approval time than the so-called Allgemeine Betriebserlaubnis (ABE) system. While both systems involve the same tests, the ABE involves a three- to six-month approval process, with the approval being granted directly from the German Federal Office for Motor Traffic (KBA) and involving additional paper work and cost. Under the Teilegutachten system, private testing agencies can grant approvals in only days. The ABE system also requires that companies be evaluated and approved by the KBA before being allowed to apply for product approval.

The decision to eliminate the Teilegutachten occurred without discussion and without an impact-assessment test. The vote to cancel the Teilegutachten was reportedly buried in a larger bill without adequate discussion or information to allow legislators to make an informed decision. As it turns out, the KBA is unable to handle the increased load of new verifications. Complicating the elimination of the private-agency approval process is the fact that some products, such as wheels and suspension, can only be approved through the Teilegutachten. For now, the current dual approval process remains in effect.

Spain: Virtually All Specialty Product Approvals on Hold

The Spanish government has issued a requirement that testing services must ensure that all products they seek to approve comply with European directives. This new guideline has generated confusion in the market due to the fact that European-wide directives do not exist for most products, and that subjecting aftermarket products to the same testing required for whole-vehicle-type approvals would be cost-prohibitive. Under these guidelines, the typical fee for approvals that consumers must obtain to ensure fitment of a suspension/lift modification would rise from approximately 200 euro ($271 USD) up to 1,500 euro ($2,032 USD). The new guidelines note that testing services issuing a compliance statement without having actually done the EU-type approval test could be held liable in case of a problem.

AUSTRALIA

Western Australian Authorities Back Away From Independent Aftermarket-Only Engine-Testing Requirements

In another Australian Automotive Aftermarket Association (AAAA) industry-led victory, the Western Australia (WA) Department of Transport has decided to abandon, at least temporarily, mandatory IM240 testing for engines that have been “significantly” modified. The AAAA is the national industry association representing manufacturers, distributors, wholesalers, importers and retailers of automotive parts, accessories, tools and equipment. The industry had complained that requiring the IM240 test would have resulted in high compliance costs and that the proposal would have unfairly targeted the aftermarket because OEM-branded parts would have been exempt. Alastair Bryant of the WA Department of Transport confirmed that the policy relating to the emissions testing of modified vehicles will revert to the policy prior to the April 2009 implementation of IM240 testing requirements. Discussions are continuing with the WA Department of Transport to outline guidelines for 5-gas analyzer testing. IM240 will still be an accepted test procedure, but will no longer be mandated.

Update on NSW Anti-Hoon Proposal: Suspension Restrictions Suspended for Now

New South Wales (NSW) is pressing the national government to impose restrictions on suspension upgrades. The move is apparently an abrupt change in strategy for the NSW Ministry of Transport, which unsuccessfully sought to impose draconian state restrictions on lift or lowering kits in the face of strong opposition. The AAAA led the opposition to a July 2009 NSW proposal to limit the raising or lowering of vehicle suspensions to no more than 5 cm (2 in.), with all modifications needing engineering approval.

“I don’t want to see young hoons [a derogatory term used in Australia and New Zealand to refer to a younger person who engages in loutish, anti-social behavior] putting their lives or the lives of others at risk just because they think their car looks better 15 cm closer to the ground,” said Minister of Transport Michael Daley in a press release. “These hoons may think their car looks cool, but as far as I’m concerned, anything more than a 5-cm change in a car’s suspension is dangerous and doesn’t belong on our roads. Raising or lowering a vehicle’s height can put the driver, passengers and other road users at risk.”

Vehicles can currently be raised or lowered by up to 5 cm without approval and by up to 15 cm (5.9 in.) with outside engineering approval. NSW had been meeting with an industry working group of suspension manufacturers and industry associations, including the AAAA, that convened to provide input on the proposed measures. A recent meeting of the group discussing changes to what had officially been called Vehicle Standards Information -50 (VSI-50) was cancelled at short notice, and the Minister for Roads asked the appropriate national body to achieve an agreed national position on raising and lowering vehicles. AAAA is reporting that the VSI 50 proposal will be addressed at an upcoming joint meeting of Transport and Road Departmental Heads, although a pending state election in NSW is expected to unseat the current government and thus halting
these deliberations.

National Vehicle Crushing Scheme Abandoned

Australian Prime Minister Julia Gillard recently announced the abandonment of an AAAA-opposed nationwide “cash for clunkers” program. The program would have provided Australians with a $2,000 payment ($1,993 USD) for trading in pre-’95 cars for new vehicles, even though the Australian Department of Environment determined in September 2009 that “replacing older vehicles with newer vehicles, without significant changes in the mix of vehicle sizes, engine capacities or fuel types, would not result in significant greenhouse gas emissions benefits.” The administration of Prime Minister Julia Gillard continued to push through the $430 million ($428 million USD) initiative, which has been coined the Cleaner Car Rebate Scheme. It originated as a campaign pledge that Gillard promised would result in taking 200,000 older vehicles off Australian streets. The growing opposition to the scheme, which was due to begin in January 2011 and was then delayed to July of this year, was finally killed. Australia’s executive blamed the program’s demise on the lack of funds due to the recent severe flooding in the country.

Three Strikes and You Are Crushed

While the nationwide “cash for clunkers” program was recently set aside, cars are still being crushed under a series of state programs that punish motorists guilty of multiple moving violations with the confiscation of vehicles. Under the so-called anti-hoon laws, first-time offenses warrant a 48-hour confiscation, with three months for a second offense. Drivers risk the vehicle being crushed or sold for a third offense.

More than 11,370 cars—an average of 10 per day—have been impounded in the Australian state of Victoria through July 2010 under the four-year-old program. The state’s Justice Department website provides a broad range of examples of actions that would qualify as hooning, including everything from intentionally causing tires to lose traction and causing a vehicle to make excessive noise or smoke to exceeding the speed limit by 45 kmh (28 mph) or more or traveling at more than 145 kmh (90 mph) in a 110-kmh zone (68 mph). Street racing and driving without a valid license also constitute hooning, according to the site.



		$Officials in the Australian state of Victoria recently crushed a vehicle owned by a driver with three “infractions.” The government stated that the Holden Commodore it crushed was the first of 40 in the pipeline to face a similar fate$ Officials in the Australian state of Victoria recently crushed a vehicle owned by a driver with three “infractions.” The government stated that the Holden Commodore it crushed was the first of 40 in the pipeline to face a similar fate. Under the so-called anti-hoon laws, first-time offenses warrant a 48-hour confiscation, three months for a second offense and drivers with three offenses risk the vehicle being crushed or sold.

The government crushed a vehicle owned by a driver with three infractions, attracting widespread media coverage. The government stated that the Holden Commodore it crushed was the first of 40 in the pipeline to face a similar fate. As to whether the vehicle of a three-time offender would be sold or crushed, Victoria Police Commissioner Ken Lay was quoted in July 2010 in press coverage of the vehicle crushing.

“If we permanently seize a vehicle that is not of a high safety standard, in that it doesn’t have features such as ABS brakes and airbags, I cannot, in good conscience, send that vehicle back into the community,” Lay said.

In the spirited 2010 elections for Premier (the highest elected office in the state), opposition candidate Ted Baillieu singled out the anti-hooning law as being too lenient. He called for increasing the penalty for a first offense to 30 days. Ballilieu won the election in late November. Each of the other Australian states now has its own anti-hoon laws, with all calling for impoundment as a central feature of the program.

Steel and Alloy Bull Bars Being Relegated to Museums?

The AAAA has gathered more than 30,000 surveys regarding an Australian federal government proposal to severely restrict the use of traditional metal and alloy bull bars (also known as “roo bars”) through the adoption of a European directive that has already pulled most bull bars off vehicles in Europe. The Australian government has given the public until April 15, 2011, to submit comments on the proposed adoption of the UNECE-approved regulation governing the design and safety performance of vehicles that come into contact with pedestrians, despite the fact that the Australian Transport Safety Bureau is on record as stating that “there is a dearth of scientifically based studies of the effect of bull bars on road safety.” The government continues to look into the adoption, which requires that all products affixed to the front of passenger cars be required to meet pedestrian safety criteria, which would be administered via the Australian Design Rule process. The imposition of this directive in Europe has eliminated nearly all traditional steel and alloy bull bars. Only a small percentage of bull bars are now being installed, some as smaller nudge bars and some as plastic bars.

The AAAA is fighting the proposal, which it believes is ill-suited to its market and could spell the end of steel and alloy bull bars in the country. Through its 4WD Industry Council, the association has been consulting closely with the government via a bull bar sub-committee.



		Manufacturers and importers of automotive products sold in the European market are required to ensure that their products comply with the Registration, Evaluation and Authorization of Chemicals Regulation (REACH; European Regulation EC 1907/2005). REACH requires companies to gather and report information on the covered chemical substances to the European Chemicals Agency. The “Automotive Industry Guideline on REACH” guide, published by the European car manufacturer’s association, provides information specific to the automotive industry.

“Australian driving conditions vary enormously from European conditions,” said AAAA Executive Director Stuart Charity, making particular note of the physical and weather environment, the increasing incidents of large native animals on urban roads and the level and concentration of built-up areas in Europe compared to Australia. “These factors all make Australia a unique driving environment. In our part of the world, bull bars are designed to save the lives of the drivers and passengers of the vehicle.”

New Regulations Blocking Importation of Modified Pre-’89 Vehicles

The Australian government has recently changed its laws regarding the importation of pre-’89 cars. According to the Australian Hot Rod Association, these changes were made without consultation with industry. Specifically, modified vehicles are now required to comply with all regulations in place when the vehicle was modified rather being assigned the same model-year designation as the production vehicle it most closely resembles. On the government website, the government uses the example of a replica Shelby Cobra. “A replica/hot-rod vehicle’s date of manufacture is taken from when the vehicle is complete, e.g., a replica ’64 Shelby Cobra completed in 2004 would be regarded as being a year of manufacture of 2004,” the site says.

INDONESIA

How Do You Say That in Indonesian?

Before they can send shipments to their customers in Indonesia, companies are now required to develop a special label in the Indonesian language, which then has to be approved by the Indonesian government, The new regulation requires all goods manufactured or imported into Indonesia to be affixed with pre-approved Indonesian-language labels prior to entry into the customs area in Indonesia. The Ministry of Trade of the Republic of Indonesia issued the labeling regulation as no. 22/M-DAG/PER/5/2010. It applies from September 1, 2010, for new products and provides an 18-month transitional period for goods that were circulating in the market before the regulation was enacted. The local manufacturers’ associations have come out in strong support of the new labeling requirements, with the deputy chairman of the Indonesian Automotive Industry Association, Jongkie D. Sugiarto, being quoted in a recent article in the Jakarta Post that the members of his associations had no problem with the implementation of the regulation.

“For automobile component products, we are ready to stick on Indonesian-language labels anytime,” Sugiarto said.

As of September 29, the trade ministry recorded that 1,044 companies, both manufacturers and importers, had applied for letters of the label inclusion. As many as 958 of those companies had obtained approval to begin producing and affixing labels. Relevant information is available at http://tinyurl.com/indonesiathisday.

Be Great or Be Gone

Fri, 04/01/2011 - 09:46

SEMA News—April 2011

Be Great or Be Gone

Customer service has become a key difference-maker in an interconnected world. The growth of social media means a single customer can broadcast what he or she thinks of your company, good or bad. And others can give that message an exponential pop—making or breaking your company’s image. Where customers have multiple options for parts and service, business leaders agree that building customer loyalty based on service is imperative.

On SEMA.org, you’ll find a recent SEMA webinar devoted to customer service. If you missed this presentation, we hope you get a chance to download it. It contains valuable tips that apply to any business, large or small. The webinar is also a tool to remind everyone in your company that customer service isn’t a department, it’s a moment-to-moment attitude.

Here at SEMA, we are fundamentally a service organization. We’re here to help our members’ businesses succeed and prosper. Part of that comes by producing a world-class trade show, but SEMA can’t be excellent without working closely with our customers—and providing great service. Since the only way to improve is to recognize where you have an issue, we’ve initiated processes to encourage feedback. Since 2008, we’ve conducted an annual study that measures member satisfaction. We find that in certain categories, a high percentage of members are either “satisfied” or “very satisfied,” but each study has also showed us where we have some work to do.

One fundamental change we’ve made recently was aimed at improving our ability to handle callers. We put in a new phone system that allows people to dial directly, but more importantly, when calls do land at the switchboard, it goes to a customer service specialist who makes sure the right person follows up.

After the call, we regularly send out a two-minute customer service survey that solicits specific feedback about the interaction. These are the kinds of improvements any business can make—not by hiring more workers, but by refocusing the responsibilities of the people they already have.

We’ve also instituted Town Hall Meetings with our members. The premise is simple: There is no better way to find out what is on your customer’s mind than face-to-face interaction. We’ve put three Town Hall Meetings on the calendar for the first six months of 2011, and we’d be thrilled to see you at the next one, April 8, in Fort Worth, Texas. You can check the schedule by pulling down the “Events” tab on SEMA.org.

Another way we are improving service is through our Exhibitor Summit meetings. That’s where we invite SEMA Show exhibitors to meet with us in advance of the SEMA Show to explore ways to improve ROI from the SEMA Show. Feedback from meetings such as these helps us hone our Show operations. Look under the “Events” tab on SEMA.org for scheduling and to sign up.

Experts will tell you that customer service is a continuous process. No matter how much progress is made from one year to the next, it’s never done. You can always get better. Speaking for ourselves, we intend to keep the throttle on, and the service level moving in the right direction.

—Chris Kersting, SEMA President and CEO

SEMA Sets July 8 as Collector Car Appreciation Day

Fri, 04/01/2011 - 08:38

SEMA News—April 2011

Annual Event Acknowledges Importance of Collection and Restoration of Classic Cars

By Dan Sadowski

SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) councils announced July 8, 2011 as Collector Car Appreciation Day. The date marks the second commemoration in what will become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA and its councils are now working to secure a Congressional resolution to recognize the day’s significance.

“Last year, the U.S. Senate helped launch the first national Collector Car Appreciation Day by passing Senate Resolution 513 at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “As a result, thousands of Americans gathered at car cruises, parades and other events to celebrate our nation’s automotive heritage. As we move forward, SEMA’s commitment to preserving and promoting the automotive restoration industry through its projects and programs is evident in this special day.”

S. Res. 513 was sponsored by Congressional Automotive Performance and Motorsports Caucus members Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC). Senators Tester and Burr have been strong advocates for the automotive hobby in Washington, and the resolution reaffirmed their understanding of the cultural importance of collector cars. The caucus is an informal, nonpartisan group that pays tribute to America’s ever-growing love affair with the car and motorsports. The caucus recognizes the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history.

“On July 8, 2011, collectors and enthusiasts will host hundreds of events across the country,” said Laura Bergan, chairman of SEMA’s Automotive Restoration Market Organization (ARMO) council. “We will proudly partner with individuals, car clubs and businesses as they organize car cruises, club gatherings and other educational events to celebrate the day.”

Said Rick Love, chairman-elect of SEMA’s Hot Rod Industry Alliance (HRIA) council: “The industry endeavors to preserve our nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to this industry and the millions of hobbyists it supports.”

SEMA will maintain a list of scheduled events to commemorate America’s time-tested love affair with the automobile. Individuals, car clubs and business owners interested in publicizing events should contact Mike Dingell, director of the SEMA Action Network, at 202/783-6007 x38 or miked@sema.org. Visit here for a listing of Collector Car Appreciation Day events. If you are unable to celebrate on July 8, SEMA encourages events to be scheduled throughout the month of July.

SEMA Spy Photos

Fri, 04/01/2011 - 07:32

SEMA News—April 2011

Spy Photos

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

Subaru Hatchback-Coupe

When It Hits: At press time, the sporty coupe was expected to make an appearance—in concept guise—at the Geneva Motor Show.

What Priddy Says: Rumors run far and wide on this car, but there are a few tidbits that seem largely agreed upon. The rear-wheel-drive Subaru will likely have 2+2 seating along with independent suspension all around. As far as powertrains go, a turbocharged 2.0L boxer seems to be on tap, with a horsepower rating in the 260 range.

2012 Kia Soul

When It Hits: More details on the Soul and its release will be available in the coming months.

What Priddy Says: Judging from the extensive camouflage, the Soul will likely get significantly redesigned front and rear fascia. New headlights and taillights are almost certainly in store as well. The styling on the door panels may also be modestly freshened.

2012 Civic Hybrid Sedan

When It Hits: No official release date has been announced for the ’12 Civic Hybrid Sedan.

What Priddy Says: The current Civic Hybrid has a 1.3L i-VTEC four-cylinder gasoline engine mated to electric motors. Priddy has heard that the Civic may move to the 1.5L-based hybrid powertrain setup also found in the CR-Z. This new Civic Hybrid may also be the first car in the lineup to receive the rumored, next-generation lithium ion batteries that Honda has been developing.

2012 F-150 Raptor

When It Hits: The ’12 Raptor is expected at dealerships in the fourth quarter of 2011.

What Priddy Says: Seen here flaunting its new LED daytime running lights, the Raptor’s possible future upgrades include an electronic locking front differential for increased capability in low-speed off-road maneuvers. However, the 411hp 6.2L V8 is expected to remain the sole engine choice.

Accessories Influence New-Car Sales

Fri, 04/01/2011 - 05:36

SEMA News—April 2011

Vehicle Dealers Support Study Findings

By Steve Campbell

		The most basic premise of a new SEMA/AutoPacific survey and a report entitled “Influence of Accessories on New-VehicleSales” is that accessories help sell new vehicles.

Aftermarket products influence well over a million new-vehicle sales each year, according to a new SEMA/AutoPacific survey and report entitled “Influence of Accessories on New-Vehicle Sales” (now available free to SEMA members and for $199 to non-members here). We talked about the findings with industry professionals in the March issue of SEMA News. In this issue, we’ll take a closer look at some of the other data included in the report from the perspective of new-car dealerships and their strategies regarding accessorization.

All of the dealership sources we contacted agreed with the report’s most basic premise: Accessories help sell new vehicles. The study provides information about the effects customized vehicles can have on the decision-making process of new-vehicle buyers. It looks at those effects on an array of different consumers, including those who do not normally modify their cars or trucks, as well as those who do, and those who are most ardent about customization.

“We do quite a bit of accessorizing on our in-stock vehicles,” said Terry Miller, general sales manager of Galpin Ford in Van Nuys, California. “Before reading the report, I thought that most people got their information from magazines or shows, things like that. But the study demonstrates that new-car buyers often go online to look at a vehicle on display in a showroom. They either buy that car or buy the accessories that were on the car. After reading the report, I thought I should take another look at what we have in inventory and possibly select more models for customization—or, as we call it, Galpinization.”

Finding new ways to sell product—whether cars or accessories—has become a paramount concern for the industry over the past few years. The study clearly reflects the economic slump that took hold in 2007 and created a downward trend in accessorization among new-car buyers. In fact, the study says, the percentage of people who planned to modify their vehicles dropped nationally from about 23% in 2007 to about 14% in 2010. Steve McCord, general manager of Galpin Auto Sports, the accessories store affiliated with Galpin Ford, said that while the number of customizers among Galpin’s customers is higher than the average reported in the study, it’s probably because of demographic differences.

“The ‘Key Findings’ segment of the report showed that 14% of new-car buyers accessorize their vehicles, but differences in regions could change those percentages quite a bit,” McCord said. “In Southern California, you see vehicles that have been accessorized or modified to some degree every day. At Galpin Ford, we accessorize about 15% of our new-car inventory and show those vehicles prominently in our display areas. Those vehicles allow us to offer accessories to non-modifiers who otherwise might not consider an accessory because they don’t know the option is available.”


		The information contained in the report is valuable not only to the sales department but also to service staff. It includes a wealth of data on accessory influence among consumers who are enthusiastic about modifications as well as those who choose not to personalize their vehicles. Courtesy of Vogue Tyre and Rubber Co.

Jim Kemp, general sales manager of Metropolitan Cadillac and Saab in Milwaukee, Wisconsin, said that a lot of the information contained in the report is valuable not only to the sales department, but also to service staff.

“A lot of statistics went into the study,” Kemp said, “and it shows that customers definitely like to do business with somebody they know and trust, and they also like to see the product on the car. People may see a product on the road, but they don’t realize that it’s available for their vehicle, so you need to have the products that you’re trying to promote on a car for display. The report makes people more aware that sales and service need to work as a team.”

McCord agreed, pointing out that communication between departments is crucial.

“The report shows that keeping our sales and service departments informed on accessorizing trends in our sales meetings is one area of opportunity,” he said. “We do a pretty good job of letting our departments know what’s hot and what’s not in the accessorizing world, but I know we could do better.”

Steve Hofer, parts and service director of Park Chrysler Jeep in Burnsville, Minnesota, said that the report gave him new insight about the importance of customization on new-vehicle sales.

“I keep coming back to the idea that 9% of people were influenced in their car purchases based on the vehicle being accessorized,” he said. “That was news to me. I was under the assumption that I needed to display accessories for the customer to see and to feel good about an accessory purchase. I’ve never really looked at it from the standpoint that the accessories themselves can influence the vehicle purchase.”


		Question: Did the availability of parts for the (insert vehicle name) influence you to buy that vehicle versus a different vehicle? Source: AutoPacific Authoritative Automotive Research & Insight

Randy Baker, managing partner of Batchelor Cadillac in San Antonio, Texas, said that his dealership uses a “show book” filled with photographs of customized vehicles to help customers visualize the accessories they may wish to include with their purchase. Even so, the report’s conclusion that display vehicles are the best accessory sales tools has him rethinking a catalog that the dealership just produced.

“The study shows that the vast majority of accessory sales in a dealership were because people saw them on the vehicle,” he said. “People come in and see something that will freshen up their cars even if they’re two years old. When we weren’t as active at selling accessories, people would come back a month after we sold them a car, and they had installed aftermarket tires and wheels on it. We had missed an opportunity to sell the accessory. Even worse, they sometimes didn’t buy a product that was right for the car.”

Supplying accessories that are properly designed and fitted for a specific make and model is obviously a major concern for new-car dealerships and has caused some original-equipment manufacturers (OEM) to question the quality of specialty-equipment products.

“The OEM position is that their products are engineered and built for that specific vehicle,” Baker said. “They are very concerned with performance and liability, while customers are moved by emotion and aspiration. That’s why warranty issues are so important. We put on quality products, and we don’t go overboard with anything. We want to sell only products that the customer will have a good experience with, and our warranty is for the life of the car. As long as the customer owns the vehicle, we take care of the accessories.”

Hofer said that the report will help his dealership and his parts department focus their efforts on the most popular accessories and modifications, allowing the organization to target its energies on accessory segments that sell and avoiding those that do not. He said that doing so will not only help the bottom line, but will also keep the new-car sales staff involved and motivated as they see success more quickly.

“Body modifications are something in the report that I probably don’t do as good job at as I might,” he said. “It’s a segment that I haven’t been paying as much attention to as I should. We do a good job with wheels and tires and audio systems, which the report puts near the top of the most popular modifications, but the body statistics surprised me.”

McCord said that Galpin would also use the trends shown in the report to help its various departments determine which products to carry and, therefore, those most likely to produce satisfied customers. Most consumers are comfortable purchasing products complete and ready to drive away from the dealership, he said, and the report shows that customer satisfaction is slightly higher among vehicle modifiers than non-modifiers.

“Hot items, such as audio, video and wheels and tires, are areas of opportunity,” he explained. “If we stay on top of statistics and trends, we can help control our inventory.”

Hofer said that he intends to use the report as a training aid for his staff, especially in new-product selection. He believes that the data will help him pinpoint commodities using factual information and real-world numbers.


		Most consumers are comfortable purchasing products complete and ready to drive away from the dealership, and the report shows that customer satisfaction is slightly higher among vehicle modifiers than non-modifiers.

“The report leads me to look at some of our accessory categories differently,” he said. “There is a lot of information that will help alleviate some stereotypes and misconceptions that I had about accessories. Customization increases people’s pride in their vehicles, which motivates them to share their excitement.”

Baker said that the enthusiasm generated by accessorized cars brings additional buyers into his dealership in San Antonio. Batchelor Cadillac receives business specifically because people see a neighbor’s or an associate’s car and want something similar or even more personalized. He said that he plans to share the information contained in the report with his key managers to reinforce their efforts. Hofer said that the physical layout of the report adds to its value as a training tool.

“I like all the facts, but I’m a visual person, so I also liked the way the facts were laid out,” said Hofer. “The report will help us target our marketing to groups of people who may want to accessorize their vehicles. From my perspective, proper accessorization can help build brand awareness.”

SEMA News—April 2011

Writers and Editors Candid Feedback on the MPMC Media Trade Conference: What They Think and Why

SEMA News—April 2011

LEGISLATIVE AND TECHNICAL AFFAIRS

State Update

Consumer Rebates Available for Installation of Running Boards

Federal Update

SEMA News—April 2011

Gazing Into the Crystal Ball (With Some Educated Guesses)

SEMA News—April 2011

Truck, SUV & Off-Road New Products

SEMA News—April 2010

Twitter

Power Tools for Business Users

SEMA News—April 2011

Developments Around the World

SEMA News—April 2011

Be Great or Be Gone

SEMA News—April 2011

Annual Event Acknowledges Importance of Collection and Restoration of Classic Cars

SEMA News—April 2011

Spy Photos

Subaru Hatchback-Coupe

2012 Kia Soul

2012 Civic Hybrid Sedan

2012 F-150 Raptor

SEMA News—April 2011

Vehicle Dealers Support Study Findings