SEMA News - July 2010

	I-Car will exhibit at the SEMA Show in 2010 for the first time and will provide several hands-on technical demonstrations on the Show floor.

I-CAR to Offer Hands-On Demonstrations at the 2010 SEMA Show

I-CAR, the Inter-Industry Conference on Auto Repair, will exhibit at the 2010 SEMA Show, marking the first time that the nonprofit training organization has appeared at the Show as an exhibitor.

In addition to participating as an exhibitor, I-CAR will provide several hands-on technical demonstrations on the Show floor designed to provide attendees with information about some of the most current issues in vehicle technology and important considerations for collision repair.

“I-CAR is pleased to be part of the 2010 SEMA Show and reach out to this audience with information about collision repair,” said John Edelen, I-CAR president and CEO.

“With the rapid rate of change in vehicle technology and design, the need to stay current on repair processes is more important than ever. For us, the SEMA audience represents individuals who are keenly aware of emerging technology in the automotive industry, and I-CAR is committed to providing the most current collision-repair training opportunities that will meet their needs.”

Oklahoma High School Students Take Top Engine-Builder Title

	Team MSD–Eastern Oklahoma County Tech Center from Choctaw, Oklahoma, took first place in the “Hot Rodders of Tomorrow Engine Challenge” Division 4 Championship in May.

Painless Performance held its first “Hot Rodders of Tomorrow Engine Challenge” Division 4 Championship in May at the Tarrant County College in Fort Worth, Texas. Team MSD–Eastern Oklahoma County Tech Center from Choctaw, Oklahoma, took first place with a time of 60 minutes and 15 seconds.

A total of eight high school auto tech teams participated. The teams are made up of invited auto technology classes from local high schools. Each team consists of five students and the instructor/coach. The individual schools set standards and guidelines for involvement.

The event itself resembles the teardown between rounds at a drag race. The engines are identically prepared small-block Chevys, and students must properly disassemble the engine using only hand tools, utilizing proper detorque and disassembly procedures. The teams then reassemble the engines once again with correct assembly procedures and torque specs. The team with the fastest time, including penalty minutes, wins.

Team MSD–Eastern Oklahoma County Tech Center will represent Division 4 at the national championship, dubbed “Showdown at SEMA,” at the 2010 SEMA Show. It will compete against Division 2 winner (Team ARP) East Ridge High School from Chattanooga, Tennessee; Division 3 winner (Team PRW) Fremd High School from Palatine, Illinois; Division 7 winner (Team Edelbrock) North Orange County ROP from Anaheim, California; Division 8 winner (Lane Automotive Car Show); plus a wildcard team (the best second-place team nationwide). The current wildcard is from Division 7, (Team Autometer) Loara High School from Anaheim, California.

 

Exhibitors Reaffirm Value of the SEMA Show as Industry Rebounds

	Many exhibitors have committed to returning to the 2010 SEMA Show after sitting out last year, mostly due to a poor economy.

With reports circulating that the economy may be on the rebound, many exhibitors are returning to the 2010 SEMA Show after sitting out last year. The recession played an overwhelmingly large role in reasons why these companies were absent in 2009.

The high-profile exhibitors returning this year include Rancho/Dynomax, Hella Inc., Brembo North America, Superlift Suspension Systems, Exedy Global Parts Corp. and PaceSetter Performance Products. We caught up with representatives from some of the returning companies, and this is what they had to say about the value of exhibiting at the SEMA Show and why they are returning after sitting out in 2009:

“Our reason for sitting out of the 2009 SEMA Show was purely economical. The 2010 Show will be our 20th anniversary, and SEMA has been a great Show for Auburn Gear. It gives us the opportunity to display new products, network within the industry, meet new potential warehouse distributors and visit with a number of distributors that have supported Auburn Gear for many years. We are seeing a slow turnaround in our aftermarket sales. The industry we all serve is one that is very resilient; our customers have always found a way to buy products for their cars and trucks.”
—Ralph Traycoff
Sales Manager, Auburn Gear Inc.

“Last year, both Tokico and Hitachi Automotive experienced business hardships due to the economic climate. This year, we are returning to the SEMA Show just to stay in the game. Although we’re not out of the woods just yet, our booth will be scaled back a bit but without limiting our products on display.”
—Sam van den Berg
Senior Manager of Information Technology and Trade Show Committee, HITACHI Automotive Products Inc. (USA)

“Our thought process in regards to attending the SEMA Show has always been weighted more toward the benefit from attending rather than the economic conditions. I think that, regardless of the state of the economy, the SEMA Show is the best avenue to show new products, meet with existing customers, find prospective customers and learn more about your competitors. Our goal at the 2010 SEMA Show is to showcase new products, which is why we are attending. The additional benefit this year is that we see business is on an upturn, so we feel attendance will be great and attitudes will be positive.”
—Randy Malowski
Director of Sales & Marketing, Fia Inc.

“We sat out last year for a few different reasons: 1) We had a pessimistic view of the market; 2) we were developing new products, but they were not ready yet; and 3) we were focused on other projects. We decided to come back this year because we were pleased to see the high level of participants. We do see economic progress going forward this year.”
—PJ Harvey
President, PJH Brands

“We decided to participate in the SEMA Show this year because we believe there will be a significant economic improvement worldwide in the coming years, especially in the automotive industry, and people will start to spend their money again more freely.”
—Rungarun Bunvitaya
CS Section Manager, Maxliner

“Last year, Eastwood did not attend the SEMA Show simply because the economy was down and we were looking for ways to reduce expenses and also thought Show attendance would be down. This year, Eastwood will attend the Show because business has been picking up, and we are looking to expand our business-to-business sales. There has been a lot of interest by other retailers looking to expand their product lines. The Show gives us exposure and an opportunity to meet with retailers, both domestic and international, who are looking to add new products to their existing lines.”
—Steve Hurter
Inside Sales Manager, Eastwood Company

“The SEMA Show really seems to draw more of the buyers, WDs and bigger jobbers. Coming up on our second quarter, we are seeing an increase in sales to WDs and jobbers. It appears consumers are starting to feel better about the economy, which leads them to invest more in the care of their vehicles.”
—Merrick Browne
CEO, Forever Car Care Products

The 2010 SEMA Show is set for November 2–5, in Las Vegas. More information on the 2010 SEMA Show is available here. 

 

Fast Facts

	Gavin Monn

Gavin Monn was appointed president and CEO of BOGE America Inc. In his new role, Monn is responsible for leading, managing and developing North American business for BOGE. He previously spent nearly two decades working within the compressed-air industry for an international manufacturer and gained extensive experience on three continents, managing and developing both sales and aftermarket businesses. BOGE America Inc., Powder Spring, GA; 770/874-1570.

JATO Dynamics hired David Hirst to the new position of global marketing director. Hirst will sit on the board of directors and take on full responsibility for managing marketing communications, product development, business development, strategic solutions and customer services. He joins JATO from Capgemini UK PLC, a subsidiary of the global Capgemini Group, where he held the position of marketing director for its United Kingdom consulting and technology services businesses.

Granville Dennison has joined the Truck Accessories Group as national fleet and commercial sales manager. Dennison previously served in sales and executive management with Sterling Corp. and Fontaine Truck. Truck Accessories Group also appointed Bob Hill sales manager for Truck Accessories Group Midwest. Hill’s career in sales and operational management includes his previous position with marine retailing giant Marinemax Inc. of Clearwater, Florida. Hill also held key sales management positions with Bombardier Recreational Products and the Kubota Corp. Truck Accessories Group, Elkhart, IN; 574/522-5337.

Philips Automotive Lighting North America, a division of Royal Philips Electronics, named Dennis Samfilippo general manager in March, replacing David Davoudi, who was appointed to head up Philips Consumer Luminaries North America, a newly established business unit of Royal Philips Electronics, based in Elgin, Illinois. Samfilippo has more than 20 years of automotive and distribution industry experience in various positions. He will be based out of Philips Automotive Lighting North America corporate headquarters in Farmington Hills, Michigan.

	Jennifer Walter

Cie Studios appointed Jennifer Walter vice president of production. Based in Baltimore, Maryland, Walter heads the company’s Baltimore and Long Beach, California, offices. She has been with Cie Studios for more than 10 years and has helped develop next-generation interactive solutions for Scion, Pioneer Electronics, Nitto Tire, DreamWorks and more. Cie Studios, Long Beach, CA; 562/285-0505.

After months of testing and tweaking, driver Gary White and the team at Titan Motorsports set out on a quest to join the exclusive Mickey Thompson 3 Second Club with its Scion tC. After two passes at the ADRL Georgia Drags in May were hampered by technical letdowns, the team received the solid run it was hoping for on its final run and saw the scoreboard light up with a time of 3.996 seconds at 182.45 mph, officially landing Team Titan in the coveted Mickey Thompson 3 Second Club. Not only did the team solidify its position as running one of the fastest imports in the country, but it was also the first ever to make a 3-second pass on 10.5-inch tires. Titan Motorsports, Orlando, FL; 407/277-8423.

SpeedFactory was selected to be the exclusive distributor for BBS’s new flow-formed CH-R road wheel for all Chrysler and Dodge applications. The prototype CH-R road wheel for Chrysler/Dodge applications was first introduced to the U.S. market when it appeared in Mopar Alley at the 2009 SEMA Show on SpeedFactory’s 700hp “SF700R” Challenger. BBS of America, Braselton, GA; 770/967-9848.

	Tom Medley

Tom Medley, father of the “Stroker McGurk” hot-rod cartoon, co-founder of the Street Rod Nationals and former publisher of Rod & Custom magazine, will be honored as the “Hot Rod Hero” of the Goodguys 24th West Coast Nationals, August 27–29, at the Pleasanton Fairgrounds in Pleasanton, California. Medley joined Hot Rod magazine on its third issue in 1948 as “humor editor.” He was instrumental in creating Hot Rod’s success, juggling cartooning, photography, how-to articles, advertising sales and design. In the mid-’60s, he took over as publisher of Rod & Custom, steering the book’s editorial direction toward street rods and “vintage tin”—thus ushering in the modern era of street rodding.

Spectre Performance hired Tim Inglee as national sales manager to lead the company’s automotive aftermarket sales efforts across the country. Inglee has worked in the automotive sector for 35 years, selling both hard parts and accessories. His most recent posts include national sales manager for Global Accessories Inc. and vice president of sales for Wolf Automotive. Spectre Performance, Ontario, CA; 909/673-9800.

Comp Cams brought back its Engine Builder Duel for the 2010 Hot Rod Power Tour. Two teams squared-off during the contest to see who could completely assemble and run a small-block Chevy engine in the shortest amount of time. The contest took place at three different locations during the tour: Bowling Green, Kentucky (Tuesday, June 8); Chattanooga, Tennessee (Wednesday, June 9); and Birmingham, Alabama (Thursday, June 10).

Bestop Inc. launched a promotion that will send one lucky authorized dealer to Las Vegas for the 2010 SEMA Show. The package includes airfare for two to Las Vegas, two nights’ accommodation, admission to the 2010 SEMA Show and dinner and a night out with Bestop. All Bestop authorized dealers will be sent a brief survey for their chance to enter and win. The offer is valid through August 30, and the drawing for the winner will be held on September 7. Bestop Inc., Broomfield, CO; 800/845-3567.

	Pioneer's Sound Build-Off

Pioneer Electronics (USA) Inc. announced that Cartronics is the winner of the fourth annual Pioneer Sound Build-Off competition. Cartronics’ 2010 Chevy Carmaro prevailed over 11 other retail competitors from across the nation who utilized Pioneer’s high-end Stage 4 car audio components. Cartronics won the grand prize of $10,000 and the title of 2010 Pioneer Sound Build-Off Champion. Pioneer Electronics (USA) Inc., Long Beach, CA;
310/952-2000.

Holley Performance Products announced that its 2010 Holley LS Fest is scheduled for September 10–12 at Beech Bend Raceway Park in Bowling Green, Kentucky. The Holley LS Fest is a celebration of everything and anything powered by the GM LS engine. Activities planned include a drag race, autocross, 0-60-0 speed stop challenge and a show ‘n’ shine. More information on the event, including class rules, online registration and updates, will be posted on www.holleylsfest.com. Holley Performance Products, Bowling Green, KY; 270/782-2900.

The Automotive Aftermarket Industry Association (AAIA) elected Robert Egan, AAP, as chairman of the AAIA Board of Directors for 2010–2011. Egan is vice president for North America global aftermarket of Federal-Mogul, headquartered in Southfield, Michigan. For the past three years, Egan has been heavily involved with AAIA and served on the show committee, board of directors and executive committee. In 2008, he was honored with the Leader of the Year Award from the Automotive Warehouse Distributors Association.

The deadline to register for Standards Testing Laboratories (STL) 2010 Tire Technology seminars at the company’s Massillon, Ohio, headquarters is October 1 for the October 19-21 class. The three-day seminar will feature a technical team of automotive and tire speakers from the engineering, chemistry and engineering mechanics/vehicle dynamics fields. Experts at STL will address topics that will include tire nomenclature, materials, compounding and manufacturing, tire and wheel design and construction, tire testing, evaluation and application. Standards Testing Laboratories, Massillon, OH; 330/833-8548

National Performance Warehouse (NPW) of Miami acquired the wholesale operations of Speed Warehouse of Hayward, California. NPW President/CEO Larry Pacey noted that it was the company’s second acquisition in four years, including the 2008 acquisition of Southern Performance Warehouse in Clearwater, Florida. Speed Warehouse was recognized as SEMA Warehouse Distributor of the Year in 1985, 2000 and 2005. Former Speed Warehouse President Gary Light retains the operations of Vic Hubbard Auto Supply, the retail and installer segment of the original Speed Warehouse business, which was not part of the deal. Pacey said that his company is also considering further acquisitions. National Performance Warehouse, Miami, FL; 305/953-7270. Speed Warehouse, Hayward, CA; 510/786-3555.

Delta Kits Inc. announced that it broke a 26-year sales record for March. The company attributes the 11% increase over the previous sales record to two proprietary Delta Kits products: the MagniBond resin and HLPRO302 headlight restoration system. Delta Kits, Eugene, OR; 541/345-8554.

Federated Auto Parts presented Outstanding Supplier Support Awards to its supplier partners who demonstrated excellent performance in each of five categories in 2009. The awards were presented on April 16 at the company’s annual meeting held in Tampa, Florida. The recipients were East Penn, Order Fill Vendor of the Year; Standard Motor Products, Education/Training Vendor of the Year; Federal-Mogul, Marketing Vendor of the Year; Affinia, Sales Representation Vendor of the Year; and Dorman, Electronic Catalog Vendor of the Year.

Deeza Chassis Parts recently adopted environmentally friendly packaging for all of its products. The company now ships all of its metal parts in anti-corrosive packages to ensure that they remain rust-free during transportation and storage. The moisture-preventative bags help protect against humidity and salt, contain no nitrates or phosphates and are completely biodegradable. 
 

SEMA News - July 2010

Mercedes SLK

When It Hits: While no official release has been announced, rumors point to upcoming appearances at the Paris Auto Show or the Geneva Motor Show for the 2011 Mercedes SLK.

What Priddy Says: Updates include more upright and squared front grille, daytime driving lamps, new door handles, the bigger mirrors “standing” on the door and a standard folding metal roof. Power will come from naturally aspirated and turbocharged V6 engines, and a diesel unit is possible, according to Priddy. A 3.5L V6 twin-turbo-making 470hp version could also make its way into an AMG version.

Honda Odyssey 

When It Hits: Priddy says to watch for the new Odyssey to debut this coming fall.

What Priddy Says: This shot of an early preproduction Odyssey was caught by one of Priddy’s readers on his iPhone. Judging by the current look, Honda is keeping the production version very close to the concept, which was on the carpet earlier this year at the 2010 Chicago Auto Show.

Audi RS3

When It Hits: This early mule of Audi’s future pocket-rocket was photographed testing at the Nürburgring. No U.S. release date has been announced.

What Priddy Says: While this test car is wearing an S3 body, Priddy says that the air intakes on either side of the grille appear to be modified and slightly larger. Power should come from Audi’s 2.5L five-cylinder turbocharged engine. Good for 340 hp and 331 lb.-ft. of torque in the TT-RS, Priddy expects the 2.5L to be rated nearly the same in the RS3.

 

Lexus LFA

When It Hits: Whether or not the LFA will go hybrid remains a mystery. The release date does as well. 

What Priddy Says: When the Lexus LFA debuted at the 2009 Tokyo Motor Show with a 4.8L V10, it silenced the rumors that this übercar might be a hybrid. However, while the guise on the prototype is similar to what was spotted two or three years ago, the piece of camo near the A-pillar is intriguing. The camo flap could be some kind of decoy, or it just might be a charging port, not unlike what GM’s plug-in test mules use, Priddy says.

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

SEMA News - July 2010

By Alysha Webb

Huge Room for Growth

	As margins on new-car sales continue to shrink dealerships are looking for new sources of income. So the future could be bright for the sale at 4S dealerships of parts that enhance appearance, comfort, or performance. Shanghai-based TNS Research International analysis reveals consumers are shifting to more “fun-based” emotional needs for their vehicles rather than the basic transportation, “family caring” or “belonging” needs of just a few years ago.

At the end of 2009, there were more than 13,000 franchised automotive dealers in China. Many of them are so-called 4S dealerships, which indicates that the dealer not only sells new cars but also services vehicles as well as sells spare parts. While an accurate count is not available, two-thirds or more of those 13,000 are likely 4S dealers. 

As margins on new-car sales continue to shrink, dealerships are looking for new sources of income, so the future could be bright for the sale at 4S dealerships of parts that enhance appearance, comfort or performance. Not all 4S dealerships in China are allowed to sell non-OE brand accessories, though some ignore the ban. In any case, accessory sales of any kind are still a tiny portion of any Chinese dealership’s revenue stream.

According to a 2009 J.D. Power and Associates study, new-vehicle sales accounted for 56% of dealer revenue. Used-vehicle sales accounted for 23%. Service contributed 23%, and spare parts sales made up 10%. Accessory sales were part of the “Other” category, which contributed only 2% to dealership revenue.

Clearly, there is much room for growth in accessory sales through dealerships in China. First, however, more OEs must allow the sale of aftermarket brands in their dealerships. Just as important, demand must be created by educating Chinese consumers about customization opportunities.

Margins on new-car sales are being squeezed in China’s intensely competitive market. New-car sales margins in China ranged from 2.6% for U.S.-brand vehicles to 4.4% for local brands, according to J.D. Power. Those margins are likely to shrink in coming years as China’s more than 90 brands fight for market share. Dealers are being pushed by the OEs to develop new sources of revenue and may themselves begin to promote high-margin accessory sales as a source of revenue.

To be sure, however, the market for accessories that enhance performance, comfort or appearance is still only a tiny portion of China’s total accessory market. And the demand for such accessories is still small.

“Our best feeling remains that less than 10% of the car owners in China would conduct some kind of tuning or customized equipment upgrade to their vehicle,” said Eric Tai, a former project manager in the automotive sector for TNS Research International in Shanghai.

The total accessories market in China is hard to quantify because of extreme fragmentation. But some estimates put it at more than $14.6 billion annually. All agree that it is growing, spurred by the maturation of China’s automotive market. TNS studies show that consumers are shifting to more fun-based emotional needs for their vehicles rather than the basic transportation, “family caring” or “belonging” needs of just a few years ago, Tai said. As that change occurs, consumers will focus more on vehicle performance and will be more willing to invest in special kits, he said.

Dealerships are well-positioned to take advantage of that growth in demand because dealerships are still the primary source for aftermarket service needs, said Tai. Chinese consumers are wary of buying spare parts from non-authorized sources because of the high number of illegitimate parts on the market, he said.

Some dealerships in China are already selling non-OE brand accessories, whether it is allowed or not. And it is permitted in some parts of the country. A dealer in Dongguan, in south China’s Guangdong province, said that her dealership is permitted to sell both OE and non-OE parts. The non-OE parts are used primarily as gifts to customers because they are so much cheaper than the OE parts, she added.

Some very large dealership groups have set up consolidated accessory procurement offices, and they actively search for non-OE brand products, especially those related to comfort and appearance, said Teng Yong at consultancy A.T. Kearney in Shanghai. Quality and novelty are the two most important selection criteria, he said.

Another factor pointing to a bright future for non-OE brand parts at China’s dealerships is the growth of the second-hand car market. Currently, about three new cars are sold for every used car because China’s passenger car market is so young. In the United States, the opposite is true. But China’s light-vehicle sales grew to 12.96 million units in 2009, a 48% increase compared to the previous year, according to J.D. Power. The light-vehicle market is forecast to grow by close to 10% for the next decade, so the used-car market is bound to grow, too. That will likely help accessory sales, industry experts said. A larger used-car market will offer more opportunities for accessory sales, which the manufacturer has less control over, according to Dale Jones, vice president of Asia Pacific regional accounts at Urban Science.

Education is needed to provide a boost to accessory sales in dealerships, said Tai. The thing that is really limiting market growth is consumer mentality and their lack of knowledge about tuning and customization, he said.

“Parts suppliers should remain in China, as it does have great market potential,” said Tai. “I have no doubt this market will keep growing due to the sheer size of China’s new-car owners.” 

 

 

SEMA News - July 2010 

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.

CANADA UPDATE

Prince Edward Island

Nitrous Oxide: The province of Prince Edward Island has introduced a bill to permit the installation of nitrous-oxide systems as long as the feed lines are disconnected or the canisters are removed while the vehicle is being operated on a public road. The bill largely mirrors SEMA-model legislation to better protect public road safety while ensuring legitimate off-road uses of nitrous-oxide systems.

STATE UPDATE

California

Specially Constructed Vehicles: The California State Assembly approved legislation to increase the registration limit for exempted specially constructed vehicle registrations from 500 to 750 vehicles per year. The Senate will now consider the bill, where it is likely to have a much tougher journey. Current law provides for emissions-system certification and a model-year designation for specially constructed vehicles. Under the law, vehicle owners choose whether a smog-test referee certifies the engine model year or the vehicle model year. To determine model year, inspectors compare the vehicle to those from the era that the vehicle most closely resembles. If there is no close match, it is classified as a ’60 vehicle. Only those emissions controls applicable to the model year and that can be reasonably accommodated by the vehicle are required. The Department of Motor Vehicles provides a new registration to the first 500 specially constructed vehicles per year that meet the criteria.

Small Business: SEMA-member Egge Machine Co. was honored in a ceremony recognizing the contributions of small businesses to the state of California. Egge was chosen to receive the recognition by State Assemblymember Tony Mendoza. Sponsored by the California Small Business Association, “A Salute to Small Business Day” took place at the Sacramento Convention Center on May 25. Founded in 1915, Egge manufactures internal engine components for antique, classic and collector cars as well as engine kits and performance products for domestic cars and trucks built from 1900–1980. Based in Santa Fe Springs, California, Egge supplies the needs of automotive enthusiasts nationwide, providing rare parts for vehicles that have long been out of production.

Louisiana

Inspection Exemption: A SEMA-supported bill to exempt antique vehicles 25 years old and older from the motor-vehicle inspection requirements was passed by the Louisiana House. The bill now moves to the Senate for consideration. Current law only exempts vehicles 40 years old and older. The bill makes the inspection exemption consistent with current state law defining an antique vehicle as a vehicle that is 25 years old or older and used primarily for shows, parades, tours and other special uses and not for general transportation. Vehicles in Louisiana are subject to an annual vehicle inspection, including a safety-equipment inspection and an additional emissions inspection for vehicles registered in selected parishes. The emissions inspection consists of a visual anti-tampering check and a gas-cap integrity check. Vehicles manufactured in 1995 and later are also subject to an on-board diagnostic (OBD-II) emissions check.

New York

Historic Vehicles: SEMA is backing legislation in the New York Assembly to provide that historical-vehicle owners only pay a one-time registration fee of $100 upon initial registration. The bill has been referred to the New York Assembly Transportation Committee for consideration. 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 that has unique characteristics and 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 Carolina

Street Rods/Custom Vehicles: Jim Barber of SEMA member Classic Automotive Restoration Specialists Inc. has been appointed by the North Carolina DMV to serve on the vehicle classification review committee. The committee was established pursuant to the enactment into law of SEMA-model legislation to create a vehicle registration classification for street rods, replicas and custom vehicles. The new law retains the key components of the SEMA-model bill while relieving vehicle owners of unfair title branding and inspection concerns. The measure provides specific registration and titling classes for street rods and replicas; allows for the use of non-original materials; creates a titling and registration criterion that assigns replica vehicles the same model-year designation as the production vehicle intended to be replicated; and requires that the title of a replica vehicle clearly indicates that the vehicle is a replica and not an original. The committee will review grievances filed by vehicle owners regarding the DMV’s determination of the appropriate vehicle classification for a specially constructed vehicle.

Vermont

Inoperable Vehicles: Legislation to provide an exemption to automotive hobbyists from the restrictions on salvage yards has been approved by the Vermont Legislature. The bill seeks to increase the regulation of salvage yards and automobile graveyards in the state but includes a provision stipulating that hobbyists are not to be confused with the owners of automobile graveyards. The bill defines an “automobile hobbyist” as a person not primarily engaged in the sale of vehicles and parts or dismantling junk vehicles. Further, the definition of “automobile graveyard” does not include an area used by an automobile hobbyist for storage and restoration purposes, provided their activities comply with federal, state and municipal law. The bill now goes to the governor for his signature and enactment
into law.

FEDERAL UPDATE 

New Auto Safety Rules: Legislation has been introduced in Congress to strengthen the authority of the National Highway Traffic Safety Administration (NHTSA) and to mandate new auto safety standards. A House subcommittee held a hearing on the bill, which was introduced in response to recent recalls of Toyota vehicles. The legislation would require NHTSA to establish new motor vehicle safety standards related to electronics and unintended accelerations, such as a brake-override requirement. Event data recorders (“black boxes”) would eventually be required on all new vehicles. The maximum amount that could be imposed in civil penalties would be increased. NHTSA would also have more money to fund agency programs, including a new department dedicated to vehicle electronics and emerging technologies.

Small-Business Health Care Tax Credit: Companies that purchase health care insurance and have 25 or fewer employees may claim a tax credit. The credit varies according to size and average wages. The maximum credit of 35% of premiums paid in 2010 is available to small-business employers with 10 or fewer workers who have an average salary of $25,000. The rate will increase to 50% in 2014. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and with the equivalent of between 10 and 25 fulltime workers. The credit took effect on January 1, 2010, and is designed to help small employers that mainly employ low- and moderate-income workers. Firms can claim the credit for 2010 through 2013 and for any two years after that.

Credit Card Swipe Fees: SEMA and other trade associations asked Congress to limit the amount credit card companies can charge merchants when processing payments. Under the current system, the merchant pays a transaction fee every time a card is used, whether for credit or debit. The “swipe” fees can average 2% to 4% for businesses that accept debit/credit cards and amounted to $63 billion in 2008. In a joint letter to the U.S. Senate, the trade associations asked that swipe fee reform be included in a comprehensive financial regulatory reform bill. The trade associations specifically asked that debit card transactions be treated the same as paper checks. The Federal Reserve requires all banks to clear paper checks at par (no exchange fees). The trade associations also urged lawmakers to give the Federal Trade Commission authority to regulate credit card company practices that currently allow the company to forbid merchants from setting credit-card minimums (example: must be over $10), offering discounts for cash payments, passing along the swipe fees to the consumers and similar practices.  

SEMA News - July 2010

Members Benefit From Alliant Insurance Services

We recently had the good fortune to speak with Bob Corwin, first vice president of Alliant Insurance Services, to discuss his company’s role and service offerings within ProPledge.

SEMA News: We understand that Alliant Insurance Services played a key role in the development of ProPledge. What was your company’s involvement early on?

Bob Corwin: Alliant became the risk-management advisor to SEMA as one of the developers and supporters of the ProPledge program. The intent of ProPledge was to provide a unified warranty program to the automotive industry in which participating manufacturers and installers could grow their businesses by selling, installing and servicing new-car auto dealers and consumers with quality automotive aftermarket equipment and products. Alliant can help facilitate the insurance needs of ProPledge members who might be in need of further insurance assistance.

SN: What specific ways does Alliant provide benefits to ProPledge member manufacturers and installers outside of competitive premiums?

BC: Alliant provides policy audit assessments to make sure the ProPledge member has the appropriate coverage to support asset protection. Additionally, when or if the ProPledge participant becomes a member of the Specialty Equipment Insurance Alliance (SEIA), we provide human resources service. Additionally, we can provide risk management and safety support. These SEIA program services can assist in premium reduction.

SN: Why should professional automotive restylers and specialty-equipment manufacturers invest in larger general liability insurance policies now, particularly when many small businesses may be challenged to afford the higher premiums typically associated with such programs?

BC: We never recommend that companies be “insurance rich and cash poor” to begin with. However, determining whether to insure with a limit of product liability coverage that will protect the owner’s business assets does become a business decision. To assist in this process for professional automotive restylers, Alliant launched the Installers Edge insurance program, providing higher liability limits at a very affordable premium level. For manufacturers, we have preferred insurance company providers within SEIA that afford higher levels of liability at the lowest premium cost possible.

SN: How many years has Alliant Insurance Services been in business? Why was it formed?

BC: Alliant was initially formed in 1925 by Robert F. Driver and has been in business for 85 years, originally as a San Diego-based insurance brokerage firm. In 2002, the Robert F. Driver Company became Driver Alliant Insurance Services after a merger with Alliant Resources Group. In 2007, the Blackstone Group—one of the largest private equity firms in America—purchased Driver Alliant Insurance Services and Alliant Insurance Services was formed, becoming the premier specialty insurance brokerage firm in the United States. It is currently ranked as the 11th largest.

SN: What are some notable success stories within Alliant’s business model?

BC: We developed Installers Edge to meet the specialty insured demands of the installers of automotive aftermarket parts and accessories. Further information can be found here.

		—For a more detailed analysis of the ProPledge and SEMA partners such as Alliant Insurance Services, visit the newly redesigned ProPledge website or call 818/248-4449.

SN: Where is Alliant’s core business done, and in what markets specifically?

BC: Alliant’s core business market sectors include automotive, public entity, tribal nations, construction, law firms, real estate, energy, marine and restaurants, to name a few. We are committed to these business market segments to provide specialized risk services and insurance products tailored to the industries we serve.

SN: Could you tell us a little bit about yourself and your long-standing relationship with SEMA?

BC: Joining Alliant in 1991, I have more than 22 years of insurance industry experience specializing in property and casualty lines, with extensive experience serving the automotive aftermarket with insurance and risk management services. As a broker to SEMA for 15 years and as the program director of the SEIA, I understand the unique needs of the automotive parts and racing industries. I have been successful in working with hundreds of automotive companies to help save well in excess of $10 million dollars in premiums. I have worked closely with SEMA’s industry councils, such as the Wheel & Tire Council, Truck and Off-Road Alliance, Motorsports Parts Manufacturers Council and the Suspension Task Force, and I also served on the SEMA Scholarship Committee. Along with SEMA President and CEO Chris Kersting, I was instrumental in implementing ProPledge.

SEMA News - July 2010

Last year, journalists in the Los Angeles area reported on a rare SEMA event that took place in Pasadena, California. It wasn’t the amazing collection of vehicles that made the event unique. Rather, it was the fact that the SEMA Show ‘N Shine car show was a fundraiser open to the general public.

Automotive publications, such as AutoWeek, came out to cover the event, as did mainstream consumer media from the local area. While plans are in progress for the 2010 SEMA Show ‘N Shine, which will take place on Saturday, July 24, 2010, below are a few media clips from the 2009 event. (Be sure to keep your eyes open for coverage of the 2010 event. Better yet, come out and join us!)

KTLA-5 Morning News KTLA’s Gayle Anderson gave viewers a sneak peak of the activities a few days before the 2009 Show ‘N Shine and Pinewood Drag Races took place on Saturday. With vehicles being prepped to be exhibited and test runs on the pinewood track taking place throughout the day, there was lots going on. Pictured here is KTLA’s cameraman preparing to shoot Anderson on one of the modified motorcycles that was on display.
AutoWeek,August 24, 2009 “SEMA Goes Public” With the SEMA Show in Las Vegas closed to the general public, reporter Mark Vaughn wrote that “the Pasadena event will likely become the place for non-industry car lovers to get parts, products and perspective all under one roof.” He noted that the SEMA Show ‘N Shine was a rare opportunity for consumers to see vehicles from Roy Brizio, Chip Foose and West Coast Customs in a single location.
Pasadena Star News, July 30, 2009 “SEMA Rolls Into Pasadena” The Pasadena Star News reported on the notion that the SEMA Show ‘N Shine is a unique opportunity for the public to see a wide range of highly coveted vehicles. As the leading daily newspaper in Pasadena, the publication also reported on other family-friendly activities scheduled during the Show ‘N Shine. The Pinewood Drag Races, for example, is a key component of SEMA’s fundraising activities and is held along with the car show.

 

SEMA News - July 2010

Exhibitors Offer Buyers 105 Ways to Boost Profit

The SEMA Show is the premier destination for buyers in the specialty-equipment industry looking to find new products and services for their customers. In 2009, 25,086 buyers went to Las Vegas specifically to bring the newest restyling and car care offerings from the Show floor into their own retail shops. Exhibitors in the Restyling & Car Care section registered 105 products in the New Products Showcase, and buyers scanned those entries more than 4,874 times. For attendees, such as Phil Sollecito of Internet retailer Auto Amenity Inc. in Bothell, Washington, the showcase is a must-see area at the SEMA Show.

“I’m seeing many products that I’d never considered before, things like roof racks. You have to have a lot of information available for people to consider before they purchase on the Internet, so I need good pictures and good information right up front,” said Sollecito. “The New Product Section is overwhelming, but it’s great.”

View a complete listing of all Restyling & Car Care Products on PDF.

 

SEMA News - July 2010

Exhibitors Offer Buyers 105 Ways to Boost Profit

The SEMA Show is the premier destination for buyers in the specialty-equipment industry looking to find new products and services for their customers. In 2009, 25,086 buyers went to Las Vegas specifically to bring the newest restyling and car care offerings from the Show floor into their own retail shops. Exhibitors in the Restyling & Car Care section registered 105 products in the New Products Showcase, and buyers scanned those entries more than 4,874 times. For attendees, such as Phil Sollecito of Internet retailer Auto Amenity Inc. in Bothell, Washington, the showcase is a must-see area at the SEMA Show.

“I’m seeing many products that I’d never considered before, things like roof racks. You have to have a lot of information available for people to consider before they purchase on the Internet, so I need good pictures and good information right up front,” said Sollecito. “The New Product Section is overwhelming, but it’s great.”

View a complete listing of all Restyling & Car Care Products on PDF.

 

SEMA News - July 2010

The Recession Hurt, But Prospects Are Looking Bright Again

By Steve Campbell

	Restyling provides increased marketing opportunities for both independent businesses and vehicle dealers. While the OEMs have reduced the variety of their offerings, restylers are taking advantage of new techniques and technologies to provide products and services that are otherwise unavailable. Courtesy of Tops & Trends

One of the most profound effects of the recession was the decline in U.S. vehicle sales, which plummeted from nearly 17 million in 2006 to about 10.6 million in 2009, according to Ward’s AutoWorld. And while the downturn hobbled nearly every facet of the automotive aftermarket, some of the greatest damage occurred in the restyling category, whose very existence is predicated on available vehicle inventory.  Conversely, the recession and market forces also caused the original equipment manufacturers (OEMs) to change the way they develop and market their products. Gone are the days when each automaker produced a multitude of variants, each of which was dappled with seemingly unending options lists. In order to save costs, the OEMs have condensed their offerings to restricted trim levels in the most popular models of the strongest brands. That contraction in variety will prove to be a boon for restylers, industry leaders say. As the OEMs reduce the range of packages they offer, restylers can fill the gaps.

“Decontenting by manufacturers to lower costs will provide a lot of opportunities to accessorize and restyle,” said Karl Stearns, president of KMS Marketing Solutions and chairman of the Professional Restylers Organization (PRO).

“Manufacturers also frequently bundle certain popular items, such as spoilers, with other pricey options, and the whole package pushes the vehicle out of the price range for buyers. It produces vehicles that consumers don’t necessarily want, with upgraded trim packages or performance features that must be purchased to obtain the few items the buyer does want. Restylers can make the popular parts available to dealers so that vehicles can be niche-marketed while eliminating the expensive, undesirable options.”

Knowledgeable dealers have come to understand that restyling provides a significant marketing opportunity. While the OEMs reduce their offerings, restylers are taking advantage of new techniques and technologies to provide products and services that are otherwise unavailable.

	Innovative sales approaches can provide winning scenarios for all involved. For instance, Katzkin offers a premium leather upholstery and sunroof package, providing additional profit to the new-car dealer and a cost savings to the vehicle buyer. Courtesy of Katzkin

“Specialty-equipment manufacturers now have quicker access to vehicle specifications so that new products can be developed faster,” said Jeff Fink, general manager of Advantage Truck Accessories Inc. “New-product information, technical bulletins and marketing ideas can be communicated quickly so that restylers have ‘instant’ access and can offer better sales presentations and new accessories for each vehicle. Opportunities are created for restylers as vehicle manufacturers push to capture sales through accessory programs.”

The most popular exterior product accessories currently come in the form of bolt-on designs, according to Jeff Nowicki, president of Specter Werkes, an automotive prototype and fabrication facility based in Troy, Michigan. “Properly designed and executed products are really what the marketplace is looking for right now,” he said. “Smaller companies are able to ramp up quicker and don’t have to go through the validation and testing that the OEMs do. We’re able to get product to market a lot quicker.”

The buzz for his business currently is carbon fiber, Nowicki said, and the automakers have embraced it on high-end vehicles such as the ZR-1 Corvette and others. Carbon-fiber produces not only an aesthetic appeal but also offers weight reductions in components such as spoilers, chin pieces, lower front splitters and underhood accessories.

Eldon Bracken, president of Graphic Mart, said that printed graphics and vehicle wraps offer another cosmetic option. Many of the attendees at the recent PRO Technical Skills & Training Conference, held in Lima, Ohio, mentioned that graphics and striping are becoming a stronger part of their businesses again, Bracken said.

“Digital printed graphics can be repeated with consistency over time,” he pointed out. “Lower-cost digital printers allow shop owners to create their own graphics as they need them, and vehicle wraps are changing the way businesses advertise. We’ve also seen this technology being used with a niche of enthusiasts who want to be different and express themselves.”
The light-truck market—hit with the double whammy of escalating fuel prices and then the recession—seems to have stabilized somewhat as fuel costs first retreated and then steadied, and some restylers are seeing increases in their SUV and pickup business.

	The marketplace is looking for properly designed and executed products, said Jeff Nowicki, president of Specter Werkes, and smaller companies can get product to market quicker than the automakers. Courtesy of Specter Werkes

“We are seeing more and more trucks getting trimmed out with stainless-steel rockers and pillars,” said Mike Stanifer, director of sales and marketing for Innovative Creations Inc., “but the core products, such as step bars, have not gone away. They’re still the mainstay in this category, along with bed caps and bedrails. Sales are picking up with these products, especially on the new designs we launched in the last year.”

Nowicki said that leather remains the core restyling product for interiors, but he has seen a movement away from traditional perforated fabrics and basic flat leathers toward more unusual skins, with the market moving to high-end suede for steering wheels, seat inserts, door panels and shifter-ball boots. “Everything that your hand touches should have that soft touch so it doesn’t slip and you get better feedback,” he said.

Electronics have also become a significant interior restyling item. Several sources indicated that the Ford Sync system has led to a revolution in how consumers and the industry view electronics, and electronics manufacturers have been forced to review their offerings to ensure that they are compatible with factory systems. Not only navigation and entertainment electronics but also safety sensors have led to refinements in specialty equipment.

“New vehicle technology and safety systems continue to be a main focus for Kaztkin,” said Stefan Majlinger, regional manager for Katzkin Leather Interiors, “We work with independent testing facilities as well as OEM engineering departments to ensure that our products don’t hinder the operation of any safety systems. We also employ a fulltime person whose main focus is technical issues. Our technical specialist helps our customers understand how to properly deal with occupant classification system sensors and airbags in vehicle seats.”

Katzkin is also using unique, ultra-soft interior leathers in addition to its standard offerings, and the company has added a combination package to improve sales. The new package includes premium leather upholstery and a sunroof, adding value to base and mid-level vehicles. “It provides a great cost savings to the new-car buyer and an additional profit to the new-car dealer,” Majlinger said. “It’s a win-win for everyone, and it is selling very well!”

	Electronics have also become a significant interior restyling item. Not only navigation and entertainment electronics but also safety sensors have led to refinements in specialty equipment. Courtesy of Tops & Trends

Accessory manufacturers and retailers alike seem optimistic about the economy and the future of the industry. Stanifer, for instance, recommended that retailers prepare for economic recovery by ensuring that their credit lines are up to date and they are prepared to increase inventory levels. And Majlinger said that restyling retailers should stay informed about changes in OEM vehicle availability. “Not all vehicles are a perfect fit for all accessories,” he counseled. “Helping dealers make additional margins and move more vehicles should always be at the forefront of a restyler’s sales objectives to solidify relationships and increase business.”

Industry leaders also advocate taking advantage of educational opportunities as well as the ProPledge program, in which participating companies offer a minimum of 36-month/36,000-mile warranty coverage and provide minimum liability coverage of $5 million.

“SEMA and PRO have really pushed to make the ProPledge program a viable source of information for dealers so that they feel comfortable if they’re going to work with aftermarket products, whether it’s a sunroof, leather or navigation,” said Joey Johnston controller of the restyling company Tops & Trends. “The program verifies that dealers are going to get a quality product installed by a quality installation facility. Industry certification and the ProPledge program are two of the best efforts to put the dealers’ and retail consumers’ minds at ease.”

With the trend toward fewer new models and vehicle owners continuing to hold on to their current cars and trucks, restyling and accessorization can play major roles in providing the options and value that today’s customers seek. But the key is being proactive, business veterans said.

“There are a lot of opportunities out there for the industry,” Stearns advised. “If you’re dependent on car dealer business, get out there and strengthen your personal relationships with dealer principles. Do some PR and marketing work. Make yourself an invaluable part of the dealer’s operations. Find new products. Learn new skills. Don’t be afraid to tackle things you’ve avoided in the past. With good training, you can do it.”  

 

SEMA News - July 2010

The Recession Hurt, But Prospects Are Looking Bright Again

By Steve Campbell

	Restyling provides increased marketing opportunities for both independent businesses and vehicle dealers. While the OEMs have reduced the variety of their offerings, restylers are taking advantage of new techniques and technologies to provide products and services that are otherwise unavailable. Courtesy of Tops & Trends

One of the most profound effects of the recession was the decline in U.S. vehicle sales, which plummeted from nearly 17 million in 2006 to about 10.6 million in 2009, according to Ward’s AutoWorld. And while the downturn hobbled nearly every facet of the automotive aftermarket, some of the greatest damage occurred in the restyling category, whose very existence is predicated on available vehicle inventory.  Conversely, the recession and market forces also caused the original equipment manufacturers (OEMs) to change the way they develop and market their products. Gone are the days when each automaker produced a multitude of variants, each of which was dappled with seemingly unending options lists. In order to save costs, the OEMs have condensed their offerings to restricted trim levels in the most popular models of the strongest brands. That contraction in variety will prove to be a boon for restylers, industry leaders say. As the OEMs reduce the range of packages they offer, restylers can fill the gaps.

“Decontenting by manufacturers to lower costs will provide a lot of opportunities to accessorize and restyle,” said Karl Stearns, president of KMS Marketing Solutions and chairman of the Professional Restylers Organization (PRO).

“Manufacturers also frequently bundle certain popular items, such as spoilers, with other pricey options, and the whole package pushes the vehicle out of the price range for buyers. It produces vehicles that consumers don’t necessarily want, with upgraded trim packages or performance features that must be purchased to obtain the few items the buyer does want. Restylers can make the popular parts available to dealers so that vehicles can be niche-marketed while eliminating the expensive, undesirable options.”

Knowledgeable dealers have come to understand that restyling provides a significant marketing opportunity. While the OEMs reduce their offerings, restylers are taking advantage of new techniques and technologies to provide products and services that are otherwise unavailable.

	Innovative sales approaches can provide winning scenarios for all involved. For instance, Katzkin offers a premium leather upholstery and sunroof package, providing additional profit to the new-car dealer and a cost savings to the vehicle buyer. Courtesy of Katzkin

“Specialty-equipment manufacturers now have quicker access to vehicle specifications so that new products can be developed faster,” said Jeff Fink, general manager of Advantage Truck Accessories Inc. “New-product information, technical bulletins and marketing ideas can be communicated quickly so that restylers have ‘instant’ access and can offer better sales presentations and new accessories for each vehicle. Opportunities are created for restylers as vehicle manufacturers push to capture sales through accessory programs.”

The most popular exterior product accessories currently come in the form of bolt-on designs, according to Jeff Nowicki, president of Specter Werkes, an automotive prototype and fabrication facility based in Troy, Michigan. “Properly designed and executed products are really what the marketplace is looking for right now,” he said. “Smaller companies are able to ramp up quicker and don’t have to go through the validation and testing that the OEMs do. We’re able to get product to market a lot quicker.”

The buzz for his business currently is carbon fiber, Nowicki said, and the automakers have embraced it on high-end vehicles such as the ZR-1 Corvette and others. Carbon-fiber produces not only an aesthetic appeal but also offers weight reductions in components such as spoilers, chin pieces, lower front splitters and underhood accessories.

Eldon Bracken, president of Graphic Mart, said that printed graphics and vehicle wraps offer another cosmetic option. Many of the attendees at the recent PRO Technical Skills & Training Conference, held in Lima, Ohio, mentioned that graphics and striping are becoming a stronger part of their businesses again, Bracken said.

“Digital printed graphics can be repeated with consistency over time,” he pointed out. “Lower-cost digital printers allow shop owners to create their own graphics as they need them, and vehicle wraps are changing the way businesses advertise. We’ve also seen this technology being used with a niche of enthusiasts who want to be different and express themselves.”
The light-truck market—hit with the double whammy of escalating fuel prices and then the recession—seems to have stabilized somewhat as fuel costs first retreated and then steadied, and some restylers are seeing increases in their SUV and pickup business.

	The marketplace is looking for properly designed and executed products, said Jeff Nowicki, president of Specter Werkes, and smaller companies can get product to market quicker than the automakers. Courtesy of Specter Werkes

“We are seeing more and more trucks getting trimmed out with stainless-steel rockers and pillars,” said Mike Stanifer, director of sales and marketing for Innovative Creations Inc., “but the core products, such as step bars, have not gone away. They’re still the mainstay in this category, along with bed caps and bedrails. Sales are picking up with these products, especially on the new designs we launched in the last year.”

Nowicki said that leather remains the core restyling product for interiors, but he has seen a movement away from traditional perforated fabrics and basic flat leathers toward more unusual skins, with the market moving to high-end suede for steering wheels, seat inserts, door panels and shifter-ball boots. “Everything that your hand touches should have that soft touch so it doesn’t slip and you get better feedback,” he said.

Electronics have also become a significant interior restyling item. Several sources indicated that the Ford Sync system has led to a revolution in how consumers and the industry view electronics, and electronics manufacturers have been forced to review their offerings to ensure that they are compatible with factory systems. Not only navigation and entertainment electronics but also safety sensors have led to refinements in specialty equipment.

“New vehicle technology and safety systems continue to be a main focus for Kaztkin,” said Stefan Majlinger, regional manager for Katzkin Leather Interiors, “We work with independent testing facilities as well as OEM engineering departments to ensure that our products don’t hinder the operation of any safety systems. We also employ a fulltime person whose main focus is technical issues. Our technical specialist helps our customers understand how to properly deal with occupant classification system sensors and airbags in vehicle seats.”

Katzkin is also using unique, ultra-soft interior leathers in addition to its standard offerings, and the company has added a combination package to improve sales. The new package includes premium leather upholstery and a sunroof, adding value to base and mid-level vehicles. “It provides a great cost savings to the new-car buyer and an additional profit to the new-car dealer,” Majlinger said. “It’s a win-win for everyone, and it is selling very well!”

	Electronics have also become a significant interior restyling item. Not only navigation and entertainment electronics but also safety sensors have led to refinements in specialty equipment. Courtesy of Tops & Trends

Accessory manufacturers and retailers alike seem optimistic about the economy and the future of the industry. Stanifer, for instance, recommended that retailers prepare for economic recovery by ensuring that their credit lines are up to date and they are prepared to increase inventory levels. And Majlinger said that restyling retailers should stay informed about changes in OEM vehicle availability. “Not all vehicles are a perfect fit for all accessories,” he counseled. “Helping dealers make additional margins and move more vehicles should always be at the forefront of a restyler’s sales objectives to solidify relationships and increase business.”

Industry leaders also advocate taking advantage of educational opportunities as well as the ProPledge program, in which participating companies offer a minimum of 36-month/36,000-mile warranty coverage and provide minimum liability coverage of $5 million.

“SEMA and PRO have really pushed to make the ProPledge program a viable source of information for dealers so that they feel comfortable if they’re going to work with aftermarket products, whether it’s a sunroof, leather or navigation,” said Joey Johnston controller of the restyling company Tops & Trends. “The program verifies that dealers are going to get a quality product installed by a quality installation facility. Industry certification and the ProPledge program are two of the best efforts to put the dealers’ and retail consumers’ minds at ease.”

With the trend toward fewer new models and vehicle owners continuing to hold on to their current cars and trucks, restyling and accessorization can play major roles in providing the options and value that today’s customers seek. But the key is being proactive, business veterans said.

“There are a lot of opportunities out there for the industry,” Stearns advised. “If you’re dependent on car dealer business, get out there and strengthen your personal relationships with dealer principles. Do some PR and marketing work. Make yourself an invaluable part of the dealer’s operations. Find new products. Learn new skills. Don’t be afraid to tackle things you’ve avoided in the past. With good training, you can do it.”