SEMA News—June 2022

BUSINESS

2022 Hot-Rod Market Trends

A Legacy Sector Evolves for the Next Generation

By Douglas McColloch

Central Hall at the Las Vegas Convention Center is host to Hot Rod Alley, home of many of the performance aftermarket’s most storied legacy brands.

Once considered one of the more backward-looking segments of the automotive aftermarket, the hot-rod and street-rod markets have changed radically over the past generation. No longer the exclusive province of ’30s through ’50s roadsters and sedans equipped with traditional running gear, today’s hot-rod market spans the automotive spectrum to include ’60s through ’80s musclecars, pickups and utility vehicles sporting 21st-century technologies. In all, the market has grown into a global industry that constitutes a $1.26-billion market sector, according to the most recent survey from the SEMA’s Hot Rod Industry Alliance (HRIA).

Like many specialty-equipment market segments, hot rodding faces a number of challenges in the coming years while also presenting opportunities for future growth. For this article, we contacted some two dozen industry insiders representing manufacturers, fabricators, racers, retailers and media. What follows is a compilation of their insights.

The State of the Industry: Catching Up to Consumer Demand

Musclecars from the ‘60s and ‘70s are still among rodders’ favorites, and this LSX-powered ‘71 Camaro that exhibited at the 2022 Grand National Roadster show showcases the builders’ art at its finest.

Overall, our panel of experts felt that the marketplace remained strong, but they also acknowledged the challenges posed by COVID-related disruptions over the past year. The automotive aftermarket gained an estimated four million new customers during the 2020 pandemic year, according to a report published by consumer-research firm NPD Group, but many companies are struggling to meet the surge in consumer demand because of the combination of pandemic-related plant closures, raw-materials shortages and clogged supply lines.

“The best word to describe the current market is ‘behind,’” said Trevor Hobson, sales and technical support manager at CVF Racing. “Sales are still strong, but while a lot of the COVID spike has subsided, people are still waiting on parts from a lot of manufacturers around the industry. The strain that has been placed on the global supply chain is being felt all over.”

“In 2020, we had one of our best years, but now we’ve got a pretty good-sized backlog due to supply-chain issues, and we’re still trying to catch up,” said Clay Johnson, creative director for Lokar.

Despite the challenges, the hot-rod market is presently strong, according to Jeanette Ladima, president of Flaming River Industries.

“The 2021 SEMA Show was a great show for our company,” she said. “We continued to see a lot of interest in custom products for the hot-rod market. Customers continue to pursue their passion, particularly enjoying the projects they can do themselves.”

What’s Trending: Classic Trucks and New Tech

Pickups have become a hot commodity in the ‘rodding community, and one of the most talked-about at the 2021 SEMA Show was Brad DeBerti’s 1,000hp, six-wheel “C10 Slayer.”

The consensus among our group of experts was that the biggest drivers of market-development growth today are later-model cars, pickups and digital-age technologies.

“Vehicles of the ’80s and early ’90s are being accepted as hot rods and classics, thanks to the popularity of square-body GM trucks,” said Todd Ryden, media specialist at InGear Media. “There are going to be opportunities for later-model G-bodies, Fox-bodies, Camaros and other trucks as the price point to entry is lower than for a ’60s musclecar—plus, the next generation grew up watching those cars when they were new.”

Ladima agreed, adding that “incorporating the latest technology such as electric power steering into those musclecars is a major change that customers are embracing.”

One place where late-model tech is prevalent these days is under the hood.

“The GM LS engine has been around for 25 years now,” said Bill Martens, special performance manager at Chevrolet Performance. “Each new version has represented an improvement in technology. When I go to a truck show or one of the Goodguys events, it’s more common to see an LS than it is to see an original engine anymore.”

Pickups remain a hot commodity, noted Tim Foss, publisher at In The Garage Media.

“The classic-truck market, while now a solid 20 years old, is an ever-expanding example of how aftermarket manufacturers were quick to recognize an emerging market and react,” he said. “It was once the ’47–’54 Chevy truck. Then it became the C10 [’67–’72]. Then came the ’73–’87 square bodies. Now, the ’88–’98 Ford OBS [old body style] are what rodders are building.”

On a related note, “It seems that the popularity of overlanding is spreading out into the hot-rod world,” Ryden said. “We’re seeing more early Broncos, Scouts, Blazers and Cherokees being built and enjoyed.”

While new technology has gained widespread acceptance in the marketplace, retro-minded building and styling aesthetics seem to be making a comeback.

“It’s refreshing to see people take a more traditional approach to a lot of builds,” said Tommy Lee Byrd, marketing and PR coordinator at Coker Tire. “We used to see people grabbing 20- or 22-in. wheels for their musclecar builds. The biggest size they could fit was what they wanted. Now we’re seeing people dialing that back a bit and going for a more traditional and tasteful look.”

“There seems to be a ‘get it running and have fun whether it’s done or not’ mantra,” Ryden said. “It’s actually rather refreshing to see in-progress hot rods of all sorts out there. They may not look pretty, but there’s a serious amount of backyard engineering, DIY and fabricating taking place, which is what hot rodding was all about in its early days.”

Another growing trend (one that was in evidence at the 2021 SEMA Show) is electrification across a variety of vehicle platforms.

“While small, it will have an outsize interest and lots of attention will be paid to it,” Foss said, adding that it’s a growing area.

Challenges and Opportunities

Grafting new tech onto older platforms is a growing trend in hot rodding, and this ‘32 Ford Coupe EV conversion that exhibited at the Webb Motorworks booth at the 2021 SEMA Show is a prime example of “old meets new.”

Nearly all of our experts agreed that the biggest challenge facing the industry in the short term has been the convulsive influence of COVID upon the existing business model and the need to adapt to changes in consumer spending habits and unforeseen market conditions.

“Rising costs and supply-chain issues will be challenges for just about everyone in the industry, as will reaching out and getting new people involved in our industry,” Byrd said. “A lot of new customers are experiencing sticker shock without realizing that a lot of the factors that go into pricing are out of our control.”

“In the last couple of years, the biggest change has been how customers have been shopping and how long they are willing to wait.” Hobson said. ”With super-long lead times, customers have started to shop for what might be in stock versus what they want. They’re moving to other options and finding new products they may not have found otherwise.”

In the wake of the pandemic, many companies have adopted partial work-from-home policies for their employees, which can pose challenges as well as opportunities.

“You have a lot of potential distractions at home—dogs and kids and such,” Byrd said. “But I also think there are times when working from home lets you bear down and get some quality work done. Overall, I think it’s helped us be more productive.”

The pandemic also reinforced the need for companies to leverage digital marketing and social media as essential brand-building and communication tools.

“It plays a pretty important role in what we do,” Hobson said, and Foss concurred: “It’s one more spoke in the wheel that makes our industry go around.”

Some of our experts mentioned the return of public events and the opportunity they present for companies to once again interact directly with their customers as invaluable for reestablishing a company’s market presence and increasing sales.

“Our existing customer base wants to be able to touch and feel the product,” Byrd said.

“They want to have a direct, normal conversation with somebody. You can do that over the phone, of course, but what we see when we go to events to sell our products is that our conversion rates are much greater.”

The need to recruit a new generation of talent to the hobby was mentioned by nearly all of our experts, though most noted promising developments in that regard.

“I do see younger people getting more interested in older cars,” Johnson said. “The more we can do to get them interested in hot rods and hot rodding in general, the brighter the future of the pastime will be.”

Despite the many challenges, our experts felt strongly that the future of hot rodding poses numerous opportunities for growth, although COVID-related issues will continue to be a concern for the near term.

“With the backlog of the supply chain, the foreseeable future is going to be plagued by availability, lead times and price increases, which are going to also stifle new-product development in some way,” Hobson said. “People are getting pulled in different directions looking for sources on things or waiting for things where time would normally be spent innovating.”

“We hear lots of growth stories, and we see plenty of new cars being built,” Foss concluded. “Overcoming the supply-chain issues is important, but the enthusiasm by both the manufacturers and individuals is at an all-time high.”

Hot-Rod Industry Resources

Hot Rod Industry Alliance: This SEMA council works to ensure the future prosperity of the hot-rod industry and to advance and promote awareness of the hobby. To learn more about how your business can become involved and benefit from the community, visit www.sema.org/hria.

SEMA Action Network (SAN): A nationwide partnership between vehicle clubs, enthusiasts and members of the specialty auto parts industry who want to protect their hobby. Founded in 1997, the SAN was designed to help stamp out legislative threats to the automotive hobby and pass favorable laws. To learn more and join, visit www.semasan.com.

SEMA News—June 2022

BUSINESS

Leading Across Generations

How to Establish a Rapport and Maintain Harmony Among Your Multi-Generational Team

By Chad Simon

Steve VerBurg, from Dale Carnegie of Orange County, says it’s important to find out the people and events that influenced each generation and what their tendencies are, because the more we know about them, the easier it is to understand what motivates them and communicate with them.

There are many challenges to leading multiple generations in the workforce, primarily being able to achieve a common goal while coming from different life perspectives and experiences. But before that can happen, you must earn each member of your team’s trust and respect. Because today’s world has gone digital, the younger generation is more likely to be in tune with the progression of technology than their elder counterparts. Each generation communicates in a different way, and each has different motivations—especially when you add cultural, age and racial diversity to the mix.

Five generations are currently in the workforce:

• Veterans (born before 1945). They make up 2% of the workforce. Most have already left.
• Baby Boomers (1946–1964). With 45 million in the workforce, the Boomers ranks are shrinking due to retirements.
• Gen X (1965–1976). They are the second-largest generation in the U.S. workforce at 52.9 million.
• Millennials (1977–1995). With 53.5 million people, Millennials are the largest generation in the U.S. workforce.
• Gen Z (1996–present). By 2025, Gen Z will make up 27% of the U.S. workforce.

Steve VerBurg, from Dale Carnegie of Orange County, led a 2021 SEMA Show education session entitled “Leading Across Generations.” The following is his advice on how to be an effective leader when your team is comprised of individuals from various generations.

Key Life Experiences

It’s important to learn about the people and events that influenced each generation and what that generation’s tendencies are, because the more we know about them, the easier it is to understand what motivates them and communicate with them.

Veterans are typically “traditionalists” who grew up during World War II and the Korean War. Baby Boomers are called “loyalists,” who lived through the Vietnam War, women’s lib, civil rights, the Cold War and space travel. Gen X are the “latchkey kids,” who remember the fall of the Berlin Wall, single-parent households, AIDS, computers, the Gulf War, the Challenger explosion and MTV. Millennials grew up during 9/11, school shootings, environmental disasters, 24-hour news and social media. Gen Y are known as the “screenagers” who lived through the Great Recession, smartphones, terrorism, diversity, hyper-security, same-sex marriages, mass shootings and alternative
news outlets.

Different people influenced each generation, so they’re going to have different outlooks and perspectives. Veterans were influenced by Babe Ruth, James Dean and Frank Sinatra. Baby Boomers had Elvis, the Beatles and JFK. Gen X had Oprah, Ronald Reagan, Michael Jordan, Michael Jackson and Madonna. Millennials were influenced by Steve Jobs, Mark Zuckerberg and Elon Musk. Gen Y had Barack Obama, Taylor Swift and JK Rowling.

“Each generation has become more dependent on technology,” VerBurg said. “The Boomers are tech adopters. Gen X are tech practical. Millennials are tech natives. Gen Z are tech reliant. Gen Z is known for having a strong work ethic and are more likely to bypass college and go directly into the workforce because they want job security.”

Criteria for Successful Cross-Generational Interaction

The keys to successfully relating to team members from other generations are to not criticize, condemn or complain. Instead, give honest, sincere appreciation. Arouse in the other person an eager want. Become genuinely interested in other people and remember their names. Be a good listener and encourage others to talk about themselves. Make the other person feel important, and do it sincerely by talking in terms of their interests.

“Be interested in generational differences, but know your own generation first,” VerBurg said. “If we know what’s driving our point of view, we can better empathize with another generation. We can use our emotional intelligence to adapt the way we communicate with them.”

Dale Carnegie wrote 30 different principles on how to communicate in his book, How to Win Friends and Influence People. He said the first step is to have a relationship with people, regardless of their generation. If you don’t do that, they will be indifferent toward you and you won’t be able to build a rapport. After you develop that, move on to the next step, which is to gain their willing cooperation. If you don’t win them over, the best you can hope for is compliance; however, you’re going to get resistance. With willing cooperation, you can influence and lead them.

“When team members come to you with an idea and you immediately think of ways to make it better, you increase the value of their idea by about 10% and demotivate them by 40% because now it’s no longer their idea; it’s your idea,” VerBurg said. “Ask questions and be a good listener so it remains their idea.”

Avoid holding grudges; instead, have positive feelings toward them. Sometimes we have negative feelings or assumptions based on the age of the other person. Focus your attention on thinking, feelings and behavior, and recognize how your perception impacts your encounters. Be aware of the impact of your behavior on other generations. Whether it’s somebody you directly lead or you have to interface with customers from different generations, figure out a way to communicate better with them.

What Motivates All Generations?

A positive relationship with one’s manager is the primary motivation across all generations in the workforce.

“People don’t leave their companies; they leave their managers,” VerBurg said. “Thirty or 40 years ago, people would work for the same company their whole lives and retire with that company. Now, if they don’t like their manager, they’re going to leave. The Great Resignation of today has magnified that.”

Employees want their jobs to be stimulating and fulfilling and to receive regular recognition and appreciation. They desire a clear career path with growth opportunities and managers who respect a balanced life. Competitive compensation and benefits are usually lower priorities.

“People across all generations want feedback,” VerBurg said. “There’s a difference in each generation. We need to be able to give feedback in other ways besides patting them on the back and saying ‘Good job.’ Give positive, constructive feedback that will help them grow.”

When providing positive feedback, make sure it’s a bull’s-eye.

“Farthest from the bull’s-eye is if you give them feedback on things—for example, ‘I like your new car,’” VerBurg said. “People are prouder of their achievements (a promotion or certification). The middle of the bull’s-eye is when you compliment them and give them positive feedback on traits and characteristics. To make it stick is the evidence. If you were to say, ‘I appreciate your dedication. I saw you putting in extra hours to make sure the car was done for the SEMA Show,’ they would appreciate that more than saying ‘good job.’”

When talking about dedication, say things about them that they didn’t even realize. See in them what they bring to the table.

Generational Approach to Coaching

To be an effective coach, you need to be a good listener. Don’t multitask on your cellphone or do other things while they’re talking. For Boomers, involve them in task forces and recognize their efforts. Appreciate their foundational accomplishments and contributions that built the organization. For Gen X, provide numerous opportunities to learn new skills. Keep coaching brief and straightforward. For Millennials, show them flexibility and provide self-development and growth. Authenticity is critical; share both successes and failures. For Gen Z, show you care, be encouraging, and involve them in the process of creating an improvement plan.

When delivering constructive feedback to team members, gather all the facts, then address the situation promptly and privately. Focus on the act or behavior, not the person. Give the person a genuine compliment first before the criticism. Listen and observe, then identify their strengths and give them the evidence and feedback. Provide seven positives to one negative.

“Oftentimes managers will say they don’t have time to walk around and give feedback to their employees, but how long does it take to post a job and interview candidates because that employee quit? It’s much more time-efficient to give them 30-sec. feedback than to have to hire someone else,” VerBurg said.

Positive Behavior vs. Negative Behavior

Negative behavior is when you tell people what they’re doing wrong and what they need to fix. However, negative behavior drives negative behavior, because if the only time you talk to your employees is when they do something wrong, they could subconsciously do something wrong just so you talk to them. Whereas with positive behavior, if you give them specific things they’re doing right, it drives that behavior.

“People post pictures of their meals on social media looking for likes because it actually releases chemicals in their brain and they have a visceral reaction to those positive things, whether it’s a like or a manager telling them they’ve done something right,” VerBurg said.

Identify observed behaviors, values, accomplishments, successes, personality traits, qualities and attributes. Use a specific example. Explain how the quality will help the individual, the team, the organization and the customer. Recognizing the things that your employees do well will make them feel valued and less likely to leave the company.

“Practice makes permanent,” VerBurg said. “The more you practice coaching people, the more it becomes a skill. You also have to give corrective feedback. Listen, observe and evaluate. Identify the opportunity for your employees to get better at their jobs. Once you identify the opportunity, use a cushion to soften the blow, but also let them know you understand where they’re coming from. Not only do you have to tell them what you want them to do but also the benefit. Regardless of their generation, if you let them know how an action benefits them, they’re more likely to do it. If you’re focused on the outcome and why, then they’re more apt to say yes. If we’re just focused on the problem, then they’re more apt to get frustrated with us. Put it into context and you’ll be viewed as a clearer and more concise communicator.”

SEMA News—June 2022

BUSINESS

2022 Mobile-Electronics Trends

Hard Hit by COVID, the Industry Bounces Back

By Douglas McColloch

North Hall at the Las Vegas Convention Center was the center of activity for the mobile electronics market at the 2021 SEMA Show. More than 100,000 industry professionals attended the weeklong event last November.

It’s no secret that the electronic age has influenced every segment of the automotive aftermarket—and will continue to do so for as far into the future as we can see. Whether it’s the adoption of computer-aided design and 3-D printing by builders and fabricators or consumers demanding full integration of their cars and their devices, computer-driven electronics are here to stay. The proliferation of advanced driver-assistance systems across OE vehicle platforms and increased vehicle connectivity with the Internet of Things have created enormous technical and logistical challenges for the aftermarket—and boundless opportunities for entrepreneurs looking to establish a brand presence in a rapidly evolving marketplace.

As a whole, the mobile-electronics industry did not fare well during the initial stages of the COVID-19 pandemic. Severely impacted by COVID-related manufacturing disruptions, the industry took a hard hit, with a 5% decline in sales worldwide in 2020, according to Fortune Business Insights. Still, new players enter the market on a near-weekly basis, and the increase in the number of homebound consumers in search of alternative forms of entertainment during the pandemic provided additional opportunities for recovery and growth. As supply-chain issues are resolved over time, the global automotive electronics market is projected to reach $382 billion by 2026, with a 7.3% compound annual growth rate over the 2020–2026 time period, according to a recent study from Allied Global Insights.

For this article, we consulted more than a dozen industry leaders. What follows is a summation of their insights, edited for clarity and length.

The State of the Market: Healthy, With Headwinds

Demand for vehicle safety products continues to remain steady, both from Tier-1 suppliers and the aftermarket. This EchoMaster analog high-density backup camera from AAMP Global offers standard 720p resolution.

Overall, our panel of experts agreed that the market has returned to a relatively normal condition, though challenges loom for the near future.

“Challenging, ever-changing and rewarding,” said Darryl Miya, brand manager for Scosche Industries. Miya cited inflation, the end of stimulus funding and further COVID disruptions to the supply chain as near-term concerns, adding that “hopefully things will start to smooth out by the third quarter.”

“The supply chain is what’s hurting most companies, and now it’s twice as difficult because of the increase in consumer demand,” said Dennis Hopper, executive vice president at VAIS Technology. “COVID shut down workplaces, and people had extra money to spend. That helped feed the extra demand.”

Recent geopolitical unrest is also likely to weigh on the industry for the near term.

“We’re a global economy now, so when something happens such as what’s going on in Ukraine, it can send everything into a tailspin,” said Robin McNeal, national sales manager for Nakamichi Car Audio. “For us, Russia is a huge customer, and I suspect that side of the business may soon come to a grinding halt.”

Still, some companies have managed to weather the storm with continued strong sales.

“Business the last two years has been very strong, with unprecedented growth,” said Brian Sherman, vice president of product and marketing for Maxxsonics USA. “We feel that it’s starting to level off, but we still see certain opportunities for growth.”

Major Trends and Developments

Vehicle owners looking to upgrade their vehicles to include blind-spot monitoring have options available via the aftermarket. This Brandmotion radar-based RDBS camera system includes cross-traffic detection.

The mobile-electronics industry serves a number of diverse customer bases. Not surprisingly, our panel of experts saw growth in different markets.

“A lot of the manufacturers on the mobile side have been turning their attention to the marine and powersports markets,” Hopper said. “It seems like just about everyone has product now for side-by-sides. Motorcycle audio has been steady for a few years, and while car audio still exists, the new niche segments such as powersports have been growing the most rapidly.”

McNeal also cited the marine market as a strong sales driver: “That’s an up-and-coming market for us.”

Marine electronics alone comprise a $5.25 global market, according to a recent survey from Maximize Market Research Ltd.

“And don’t forget golf carts and three wheelers,” Hopper continued. “Across the country, you have a lot of gated communities where people drive them all over the place, and some of them have massive audio systems in them.”

McNeal saw strong consumer demand for software installations.

“It’s all about Apple Car Play and Android Auto—and, of course, those are the two biggest users of the microchips that everyone’s struggling to get,” he said. “Now, unless you’re just looking to fill a hole in your dash, that’s what everyone is after. With the cost of new and used vehicles so high, people are holding onto their vehicles longer, and eventually they’ll want to bring that new technology into the current vehicle.”

Sherman pointed to the powersports market as a rapidly expanding sector, and to increasing consumer interest in high-powered, high-end mobile audio systems. But Sherman and McNeal both pointed to a shortage of skilled labor as an issue that has forced the market to adapt.

“The complexity of new vehicles and access to a pool of qualified installers has certainly presented challenges,” Sherman said. “We’ve responded by developing products that are easier to install for people with even basic mechanical knowledge. Products like our MB Quart Jeep audio kits are just one example.”

The pandemic and its related disruptions forced many companies to ramp up their investments in digital marketing and social media, in particular.

“We’ve always been very pro-digital,” Hopper said. “We have a very active Facebook page with a lot of users, and we do our own email blasts based off information we capture from dealers that buy from us. Add Google SEO, and that would be the top three digital marketing platforms for us.”

Sherman said that social media is a key part of his company’s marketing strategy.

“It still represents the most cost-effective and efficient way to get info on new products out to our distributors, dealers and consumers,” he said.

A mobile-friendly website that’s capable of conducting transactions is an increasingly important tool in the digital toolbox as well.

“Purchases made from smartphones increase each year,” Miya noted.

Challenges and Opportunities

App-based connectivity is another fast-growing mobile electronics segment. Voyo’s Scan Pro diagnostic scan tool can monitor a car’s activity in real time and forward the information to the owner’s mechanic.

Most of our experts agreed that the overall economy and consumer demand were likely to slow down later in the year. Citing unstable geopolitical issues, Hopper felt that the market “might get a little wavy” in the near term, though supply-chain problems may gradually resolve themselves by the third quarter of 2022.

Advances in OE electronics systems will also pose challenges to certain elements of the market.

“The radio segment of the 12-volt category will suffer because the OE manufacturers are really pushing to put bigger screens in cars,” Hopper said. “You have to integrate a lot more of the car into that bigger screen, so I think you’re going to see more dealers on the aftermarket side say, ‘Let’s just leave the head unit alone, go with DSP, and put the emphasis on better amps and better speakers.’”

McNeal also mentioned rising fuel prices as a near-term concern.

“When the price at the pump goes up, it has never been kind to our industry,” he said.

Still, opportunities abound, particularly among newer OE platforms that appeal to enthusiasts and modifiers.

“The expansion of enthusiast-owned vehicles presents a great deal of opportunity,” Sherman said. “Newer platforms like the Bronco, along with existing platforms from Jeep, will create a lot of opportunity for audio upgrades to customers who will readily embrace the chance to improve their vehicles.” On the other hand, “significant challenges remain on the supply chain and logistics side, with freight costs at an all-time high.”

Miya additionally pointed to the growth in used-vehicle sales as an opportunity for the aftermarket as consumers look to retrofit and/or upgrade their vehicles’ factory electronics packages.

“I don’t think we’ll see big growth this year, but as we get into 2023, I think we’ll see business returning to pre-COVID levels,” Hopper concluded.

SEMA News—June 2022

BUSINESS

Going Carbon-Neutral

Why the Race Is on to Achieve Ever-More-Ambitious Standards

By Mike Imlay

In July 2021, the European Union (EU) published its European Climate Law, setting a goal of full carbon neutrality by 2050 and a more immediate 55%-reduction target for greenhouse gases by 2030. The legislation has broad implications for any company with a presence in an EU-member state. Photo courtesy: Leonid Andronov/Shutterstock.com

Carbon neutrality is a hot-button issue laden with political overtones and media hype—a true third rail if there ever was one for many in the automotive industry. Yet a growing number of brands are announcing green-friendly initiatives aimed at sustainability and carbon reduction. What’s driving this trend? And more importantly, how are industry businesses future-proofing themselves against what may be an unstoppable seismic shift?

First, understanding the decarbonization movement entails unjumbling the jargon. Carbon neutrality or “net-zero carbon dioxide (CO2) emissions” is defined as striking a balance between human-caused CO2 emissions and their removal from the global environment. This can involve “carbon offsets,” which represent greenhouse gas (GHG) reductions, or “carbon storage” increases through such practices as land preservation or tree-planting initiatives. These offsets compensate for emissions generated elsewhere.

Then, of course, there are offset credits—transferable instruments representing a single metric ton of CO2 or other GHGs. They can be sold and traded between businesses to reach decarbonization goals.

Finally, there’s sustainability—a concept that the United Nations World Commission on Environment and Development defines as actions that maintain natural resources so that future generations can “live an equal, if not better, way of life.” This is where renewable energy and materials sources factor into the environmental equation.

Such concepts may sound like PR catchwords, but they reflect global economic realities that—all arguments about climate change aside—may soon impact businesses at every level.

Global Forces

Interviewed by Speed Sport’s Ralph Sheheen at the 2022 Performance Racing Industry Trade Show opening breakfast, Indianapolis Motor Speedway owner Roger Penske (pictured) reaffirmed Penske Corporation’s commitment to carbon neutrality, an issue gaining serious traction in the racing and performance community. Photo courtesy: Performance Racing Industry

In July 2021, the European Union (EU) promulgated Regulation 2021/1119 of the European Parliament and Council. The rule established a framework for achieving “climate neutrality” throughout the EU by 2050, with intermediate carbon neutrality targets in 2030 and 2040. The legislation calls for aggressive measures to reduce GHG emissions and balance any remaining emissions through offsetting measures to achieve a net-zero emissions balance.

Although the United States has not enacted similar legislation, the Biden Administration launched a “whole-of-government process” in April 2021 through the president’s National Climate Task Force to establish a 50% to 52% GHG reduction from 2005 emissions levels throughout the American economy. (Of course, states such as California continue to enact variously stringent measures to regulate carbon emissions on their own.)

In the automotive realm, these initiatives have become market drivers for new research and development, supply-chain decisions, and even venture capital investments. Decarbonization measures are now sweeping the industry, from OEMs to specialty-equipment suppliers. Consider a few recent news items:

In June 2020, Ford Motor Company released its annual “Sustainability Report” highlighting its efforts to achieve carbon neutrality by 2050. At the time, Ford claimed to be “the only full line U.S. automaker committed to doing its part to reduce CO2 emissions in line with the Paris Climate Agreement and working with California for stronger greenhouse gas standards.”

To meet its goals, the automaker promised sweeping changes to its vehicles, supply base and company facilities. Ford additionally touted its then-$11.5 billion investment in vehicle electrification as well as its progress toward powering all of its manufacturing plants via “100% locally sourced renewable energy” by 2035.

Not to be outdone, General Motors (GM) announced the following year that it would become carbon-neutral in its global products and operations by 2040, centered on what it called “science-based targets.” While much of the media focused on the automaker’s vehicle electrification goals, the company also announced a major initiative for powering all of its U.S. facilities with renewable energy by 2030, heavy investments in carbon offsets and credits, and a commitment to emissions reductions throughout its supply chains.

Further underscoring the industry race toward decarbonization through vehicle electrification, Nissan has partnered with NASA to develop a new electric vehicle (EV) battery that will be safer, lighter and quicker to charge than today’s versions. The all-solid-state units will replace lithium-ion batteries, avoiding the use of rare metals. Toyota, Volkswagen, GM and Ford are also reportedly working on similar projects.

Perhaps due to their world-wide nature and close alignments with major OEMs, motorsports organizations and brands also appear to be racing alongside automakers to embrace carbon neutrality. Two years ago, when famed Penske Corporation Chairman and CEO Roger Penske acquired the Indianapolis Motor Speedway, he personally toured the facilities looking to improve the fan experience. But he had an equal eye out for reducing the speedway’s carbon footprint.

“I think we spent the next two weeks walking every restroom, every refreshment stand, up in every stand,” he related onstage to Speed Sport’s Ralph Sheheen during the 2021 Performance Racing Industry (PRI) Trade Show opening breakfast in Indianapolis. “When you look at the whole footprint, we have 1,000 acres, and we’re looking at sustainability. We’re certainly looking at decarbonization, and I think that has really popped to the top of the list when you look at a 10-year plan. We’d like to be carbon-neutral at the track as we go forward for the next several years.”

Penske added that Penske Corporation is scrutinizing everything from the use of paper towels in restrooms to the environmentally safe disposal of tires. The corporation and Team Penske also announced last year that they would enter a “strategic collaboration” with Shell Oil to address emissions across supply chains, including warehouse facilities, vehicle and fleet technologies, and transportation routes. In addition, the two companies are aiming to reduce the carbon footprint of the NTT IndyCar series.

Motorsports suppliers are following suit. VP Racing Fuels is one of several fuel and lubrication brands adding synthetic biofuels to its race-fuel portfolio. The company also continues to test new formulations to meet oncoming renewable fuel requirements set by multiple race series, including Formula 1 and the International Motor Sports Association.

“Many race series, mainly from Europe, require carbon-friendly fuels to help reduce the overall CO2 footprint that race events bring,” explained Mike Saeger, VP Racing Fuel’s senior marketing coordinator. “As a world leader in fuel tech, our OEM and race series partners look to VP to deliver solutions with sustainable components to meet their environmental goals while maintaining performance.”

Saeger added that supplying these types of fuels has its own set of challenges: Biofuels can cost up to four times the amount of fossil fuels. Developing fuels that are chemically equivalent to their fossil counterparts in terms of power and performance also requires much R&D. Moreover, the fuels’ advanced renewable components aren’t easily sourced, especially in the United States.

“Long term, VP is working with other technology groups to produce its own advanced renewable feedstocks to further reduce our CO2 footprint,” Saeger said.

While they may not always tout a green message, numerous specialty-automotive companies are also innovating solutions that can drastically cut or eliminate vehicle emissions. Sometimes the carbon reduction is an intentional goal, and sometimes it’s a happy byproduct of increasing a vehicle’s efficiency and performance. More often, however, it’s a combination of all the above.

Saving the ICE

At the 2021 SEMA Show, Arrington Performance CEO Mike Copeland revealed a stunning full-custom ‘48 Chevrolet pickup with a twist: The vehicle runs on an internal-combustion engine (inset) fueled by green hydrogen. Copeland envisions the technology as a viable, scalable alternative to electrification.

Amid the rising demands for EVs and synthetic fuels, Arrington Performance CEO Mike Copeland believes that the industry may be overlooking something more elemental—namely hydrogen. At the 2021 SEMA Show, Copeland unveiled a fully custom, hydrogen-powered ’48 Chevrolet pickup with a twist. The vehicle utilized a 6.2L Chevrolet LS engine adapted for green hydrogen—an internal-
combustion engine (ICE) technology that he believes offers a viable alternative to other emerging technologies.

“I think we’re the only people that are making a true carbon-neutral package, because electricity is not always clean to generate,” Copeland said. “In our case, we take green hydrogen, use it in our truck, extract the energy, and create transportation with zero carbon footprint.”

Green hydrogen is produced using solar power and other zero-GHG processes and can be manufactured on-site virtually anywhere. Unlike fuel cells, which pass hydrogen through a membrane to create the electricity to propel a vehicle, Arrington’s method follows a traditional ICE design.

Copeland added that the Chevy’s 3kg tank fills in 3 min.—a fraction of the time it takes an EV to charge. Moreover, his engine’s range and towing capacity are more akin to those of a gasoline engine.

Although it’s a pricey alternative now, Copeland believes that scaling production will drop costs exponentially. Arrington’s immediate goal is to supply vehicle, taxi, bus and governmental fleets to bring this about. That will allow Arrington to offer affordable “hydrogen crate engine” solutions to builders. The company is presently working toward California Air Resources Board certification and is in negotiation with a fleet owner who’s considering the conversion of up to 200 buses.

“Today, there are around 280 million registered internal-combustion, gasoline-powered vehicles in the United States,” Copeland said. “None of those can be converted to a hybrid, an electric, a fuel cell or any of that without basically scrapping the vehicle and starting over. With our process, we save those 90 million vehicles. All of those can be converted to run on hydrogen and save the scrapping of many millions of vehicles.”

Copeland knows that hydrogen has its naysayers—many people mistakenly think “Hindenburg” when they think hydrogen. However, he says that the technology is a safe alternative for preserving older and classic ICE vehicles in the face of ever-stricter emissions laws.

“I’m a hot rodder,” he explained. “I’ve got a bunch of hot rods. I’ve got a number of classic cars. I want those to be around for the next generation.”

Increasingly, specialty-equipment companies are proving that decarbonization doesn’t mean sacrificing performance or vehicle efficiency. Just the opposite. Still, a green message can be a hard sell with the aftermarket audience.

Pareto Point Industries CEO Bob Hammer and President Adan Reinosa, P.E., formed their company in 1999 to develop and market the Mini Bypass Oil Filter Booster system, which filters oil at the superfine level of 2 microns. The system bolts on to an existing filter, diverting a small oil flow through a denser filter. By saving wear and tear while extending engine longevity, the unit helps reduce a vehicle’s carbon emissions over a prolonged lifecycle.
The invention even garnered a SEMA Show New Product Award and multiple SEMA Show Global Media Awards in the early ’00s.

Pareto has since introduced the TopDog-V 5-micron fiber. However, said Hammer, “It turns out that the market is a little bit more niche than we would have liked. It seems that a lot of the people with an environmental mindset are not necessarily SEMA or automotive-aftermarket people.”

Pareto has seen some success with off-road consumers, who appreciate the system’s benefits in a harsh and gritty environment. But Hammer believes that governmental fleets striving to meet stringent carbon-reduction goals may prove more lucrative. Pareto now has an agreement with the Donaldson Company to further develop its technologies and pursue new applications and markets.

Future-Proofing

VP Racing Fuels is among the many motorsports suppliers helping racing organizations and teams hit their environmental targets. The company continues to test and develop new synthetic biofuels to conform to upcoming race series requirements, including for Formula 1 and the International Motor Sports Association. Photo courtesy: VP Racing Fuels

Aside from environmental concerns, sheer market forces will likely move industry businesses large and small toward carbon-neutral operations, despite the perceived cost and disruption.

“For sure, changes in energy infrastructure or energy production require investment, but they will pay off, especially in areas with high energy prices, rising CO2 costs or high volatility,” said Rainer Berghausen, head of Trumpf Group communications. An industrial machine manufacturer headquartered in Ditzingen, Germany, the company has joined the Science Based Targets Initiative, committing to carbon reductions in accordance with the Paris 1.5C-degree target.

This goal, which Berghausen conceded is “very ambitious,” means that Trumpf will, among other things, improve the energy efficiency of its buildings, produce its own green energy through solar power, and electrify its car fleet.

“Emissions that we can’t yet avoid are being compensated with high-quality projects,” he added. “These measures already make our own production carbon neutral today. In parallel, we have started to tackle emissions in our up- and downstream value chain as well.

“Additionally, these investments will prevent losing orders. Demands from customers and society in that area are increasing, so even the smallest companies in industrial supply chains will have to deal with their emissions sooner or later. We expect that companies that ignore this transition will face some challenges in keeping up their customer relations.”

Trumpf is equally committed to refining its machine products to help its customers meet their own decarbonization goals, putting more effort into decreasing machine energy consumption while making more efficient use of materials. The company also offers alternative machine technologies such as additive manufacturing.

“This directly benefits the emissions in our customers’ production,” Berghausen said. “The demand for this is definitely growing.” He further noted that even small operations can begin now to future-proof against the inevitable market realities to come.

“First, gain an overview of where the energy—the power, gas, oil, air—in your company actually goes,” he advised. “Identify the largest energy user and start with that. A lot of energy efficiency measures require just a little more attention, like turning off machines when they are not needed, fixing leakages, keeping doors closed, or fully utilizing metal sheets, etc. Also, switching the energy supply to renewables instead of energy from fossil fuels is quick and relatively easy to implement.”

SEMA News—June 2022

EVENTS

The 2022 SEMA Show

With Industry Expectations Running High, What Can We Look Forward to in Las Vegas?

By Mike Imlay

For the specialty aftermarket, the annual SEMA Show remains the number-one trade event in the world. After a highly successful return to Las Vegas in 2021, plans are underway for the 2022 Show, slated for November 1–4 at the Las Vegas Convention Center.

After a year’s hiatus in 2020 due to COVID-19 restrictions, the annual SEMA Show made a much-heralded return to Las Vegas in 2021. Despite the challenges of putting on a trade event amid the pandemic’s waning months, the 2021 SEMA Show proved incredibly successful. It ended up ranking among the top U.S. trade shows held last year.

With that achievement, expectations are again running high for the upcoming 2022 SEMA Show, slated for November 1–4, at the Las Vegas Convention Center (LVCC). For an insider glimpse at the planning and growing momentum for this year’s event, SEMA News turned to SEMA Vice President of Events Tom Gattuso. The following is our interview, edited for clarity and conciseness.

SEMA News: The 2021 SEMA Show was historic in many ways, including a return to Las Vegas after COVID-19, an expansion into the LVCC’s new West Hall, and many other milestones. How does that set the stage or even raise expectations for the 2022 Show?

Tom Gattuso: I think the key takeaway is the great industry support we saw in 2021. We anticipate that the momentum created during that unique year is going to continue and really propel the Show forward this November. That goes across the board, ranging from the attendance of the buyer participants to the attendance of the exhibitor participants, the amount and level of feature vehicle builds, and all the Show features that are going to be in and around the LVCC. There’s not one aspect of the 2022 Show that isn’t going to benefit from the momentum that was created in 2021.

SN: From even casual observances, it seemed that a lot of business got done on the Show floor last year.

TG: We can say that for sure. Although the number of participants was down compared to previous years, the ratio of qualified buyers to exhibitors was at an all-time high. That resulted in a lot of really good interactions on the Show floor, which really helped those who attended to forge new business opportunities for 2022.

We have also heard from a lot of businesses that could not attend due to COVID last year. They said that the success of last year’s event has definitely added to their enthusiasm for this year. They don’t want to miss it.

This underscores the benefit of live trade events. We were fortunate in that last year’s SEMA Show was one of the largest trade shows to take place since the pandemic started in March 2020. People need to interact. Plus, from a business standpoint, there’s an instantaneous return on investment in terms of the conversations, networking and camaraderie that take place. At the end of the day, we saw firsthand that there’s no substitute for gathering the industry together to experience new products and innovations while also sharing the knowledge and passion that will propel the industry into the future.

SN: How is the Show floor shaping up for 2022? And how will the Show build on its growth into the new West Hall and its expanded footprint throughout the LVCC?

TG: There’s no doubt that the pandemic left us with some rebuilding to do. However, we’re now coming off a very successful space allocation in which almost 2,000 companies picked their 2022 exhibit spaces. Our floorplan is really coming together for probably one of the best Shows we’ve ever had.

I would say that last year’s expansion was also an investment in improved traffic flow and moving people throughout the campus. There’s now a more logical flow between different Show sections and features as well as room for further growth.

We also got to observe a lot about where people are going on the convention center campus, how they’re getting there, and what their user experiences are like. We’re learning from those observations and making changes for the future. For example, our wider aisles and buyer lounges were new and successful Show aspects last year that we now expect to be around for years to come.

SN: With the Show’s exhibitor base now congealing, what’s your message to potential attendees? What is the Show’s value proposition for buyers?

TG: We recognize that there has been a huge shift in our marketplace’s work paradigm. A lot of buyers who attend our Show will be in new or expanded roles within their organizations. The business and networking conversations that take place on the 2022 Show floor will likely be extremely beneficial for both their business and career development. As our industry gets back to its full capacity, there’s a higher-than-ever need to meet in person to make your upcoming year truly productive and profitable.

Meanwhile, we continue to refine our education offerings. We have an expanded lineup this year that will address many facets of business growth and career advancement, and our annual Battle of the Builders competition will have some new surprises too. We’re proud of the recognition, development and business opportunities which that program has brought to our industry’s builder community.

Last year, we also had a number of motorsports features and vehicle-capability demonstrations that really resonated with attendees. The brands and people involved in those features were impressed with the response and want to return and even evolve those features. We have new companies promising to bring similar excitement as well.

As Show organizers, it’s our job to mirror the trends taking place within the industry. You’ll see this in our growing electrification and overlanding features. Incidentally, while the media is especially excited about vehicle electrification, we aren’t ignoring other alternative-energy solutions coming onto the scene. For example, hydrogen platforms were, and will continue to be, represented as well.

Of course, the industry is still bringing significant developments to the internal-combustion engine to refine and improve its performance, so it goes without saying that the excitement around current, mainstream platforms and products is a key focus. We’re presenting all of these trends to our industry so that Show participants can start to think about the new solutions that these advances can evoke.

If anything, the recent pandemic proved that the need for live, in-person trade events is stronger than ever. At the 2021 SEMA Show, the ratio of qualified buyers to exhibitors was at an all-time high, building anticipation for even more quality Show-floor interactions in 2022.

SN: Along those lines, what can we expect to see from the big vehicle manufacturers this year?

TG: Without giving away too much, I can say that we’ve got great support from our OEM participants, and we’re working closely with them to continue to develop new event opportunities. We’re aware that future trends will require close alignment between vehicle manufacturers and aftermarket parts manufacturers in developing specialty products for their vehicles.

Our Show isn’t simply about seeing new products and trends—it’s also about forming relationships. In the OEM realm, these relationships have put the industry in a really good place.

The SEMA Show’s OEM relationships also tie into the association’s many other vehicle technology initiatives, such as the new SEMA Garage in Detroit with its ADAS [advanced driver-assistance systems] Research Center and vehicle measuring sessions and our Tech Transfer programs at both the SEMA Garage in Diamond Bar, California, and the new Detroit facility.

SN: Finally, speaking of trends and relationships, the New Products Showcase is always a popular attendee stop. Would you like to touch on that Show feature?

TG: Definitely. Whether pre- or post-COVID, the main reason most people attend the SEMA Show is to find new products and identify new trends. Product research and development didn’t end during COVID. For example, we saw more ADAS products in 2021 than ever before in our New Products Showcase, and we expect that trend to continue, along with many other pushes toward modernization.

We’re going to continue to make it very easy for companies to showcase their products this year. We want to celebrate their innovation and provide a format for the continuation of that R&D.

Ultimately, the SEMA Show is the number-one place to see the mix of the latest and emerging technologies and meet and talk with the people advancing them. We’re connecting the dots between the brands, buyers, media and the innovations that are reshaping our industry. The next two decades are going to be transformational for the industry, and we’re happy to help foster and showcase the breadth of that change.

Don’t Miss Out!

For the specialty aftermarket, the SEMA Show offers an experience like no other trade show on the planet. Slated for November 1–4, in Las Vegas, it’s the best place to see thousands of the newest automotive performance products from 1,800 new and iconic exhibitors, discover the latest product and vehicle trends, and develop essential skills by attending any one of the more than 70 free education sessions led by top industry professionals. To register, go to www.SEMAShow.com.

SEMA News—June 2022

INDUSTRY INSIDER

10 Questions for Dayton Jacobson

By Douglas McColloch

Fresh off his win at the 2021 SEMA Show Young Guns competition, Dayton Jacobson is preparing the build of a ‘54 Olds 88 (rendering pictured below) for the 2022 SEMA Show.

“Custom, with a little bit of class.” That’s how builder/fabricator Dayton Jacobson described his building style at last year’s SEMA Show. We might also add “award-winning,” since Jacobson’s 2021 SEMA Show build (an ’00 Chevy S-10) captured top honors at the Battle of the Builders Young Guns competition, which culminated SEMA Show week last November. When not working on custom builds, he takes care of business as the owner of Jacobson’s Welding and Powder Coating in Burnsville, Minnesota.

SEMA News caught up with Jacobson recently and asked him to reflect on his experiences at the Show, how they’ve affected his business, and what he’s working on right now.

SEMA News: What’s on your playlist now? What are you listening to?

Dayton Jacobson: Right now, a lot of Pop Smoke.

SN: What are you driving these days, and why?

DJ: Since I live in Minnesota, I drive a lowered, cammed Escalade in the winter. In the summer, I either drive my CTS-V coupe or the truck I brought to the SEMA Show in 2021.

SN: How has winning the Battle of the Builders Young Guns competition affected your everyday life?

DJ: It has shown many new customers the quality of my work. I also get to talk to many companies about partnering for my SEMA 2022 build. Before now, I’ve never had a sponsor.

SN: What got you started in the business?

DJ: I grew up with my dad, Gordy Jacobson, and my grandpa, Jerry Jacobson, always working on cars, and I got sucked right into it.

SN: What’s the best piece of advice anyone ever gave you?

DJ: The best advice I got I haven’t used yet, but it was to build a vehicle for a customer to bring to the Show. I just finished the truck for SEMA 2021 that took a lot of my personal funds, and now that I’m building my ’54 Oldsmobile 88 convertible for 2022, it’s very hard to come up with the money to build it and keep working on the car. Balancing between work [in my shop] and working on my car gets difficult.

SN: Describe your memories of your first SEMA Show.

DJ: I had many great memories at SEMA. Talking to Chip Foose and walking around my truck and showing him everything was amazing. Also, every time they announced who made it into the Top 40, the Top 12 and the Top 3, my heart was pumping!

SN: When building a vehicle, how much goes according to plan, and how many times do you need to work up a Plan B?

DJ: When I build a car, nothing goes to plan. Things change every day, and normally it’s because I think of something else that would be really cool with the build.

SN: Where would you like to be 10 years from now?

DJ: I would like my welding and powdercoating business to be in a much larger shop so I can have a bigger oven so I can do full frames.

SN: When you’re not working, where can we find you?

DJ: Riding my motorcycles, driving my car or in the garage.

SN: What’s your next project? Will we see it at the SEMA Show this November?

DJ: I’m building my ’54 Oldsmobile 88 convertible. The car is body dropped, with many customizations to the exterior, a full custom interior out of a Cadillac CTS-V, and a twin-turbo LS engine. This is the last year I get to compete in Young Guns, so I need to go out with a bang!

By Ashley Reyes

Evan Cook is the SEMA Professional Restylers Organization’s (PRO) newest spotlight volunteer. Cook is the COO at Trim Illusion—an aftermarket company that specializes in overlay automotive accessories.

Get to know Cook in his interview with SEMA below.

SEMA: What inspired you to pursue a career in restyling/manufacturing?

Evan Cook: Honestly, this was a career I sort of fell into. I always was interested in cars but didn’t necessarily think I would make a career out of it. Like many others, coming out of high school I struggled to find my career path and decide what I wanted to do. I realized in this industry there were so many different career paths you could take. Whether it be in sales, operations, technology, logistics, engineering, design, photography/videography, this career gave me the opportunity to find my niche while continuing my education.

SEMA: Why did you decide to volunteer for PRO?

EC: I decided to volunteer for PRO to gain knowledge and insight from some of the leaders in our industry. Being a part of PRO has put me closer to our customers and has personally given me so much insight on the challenges our customers face. It has also given my company the ability work side by side with our customers, other manufacturers and distributors to improve the automotive aftermarket industry.

SEMA: What advice do you have for someone pursuing a career in the automotive aftermarket?

EC: Work hard and you will not be disappointed! I found that if you work hard and put yourself in the best position to succeed, this industry can be very rewarding. While sometimes it can be challenging, being a part of the automotive aftermarket industry gives you the opportunity to learn from and build lasting relationships with a lot of great people, attend different networking events and shows in different places and be a part of the best industry in the world.

SEMA: What is your dream vehicle? Where would we find you in it on any weekend?

EC: I would say my dream car is a Shelby GT500. You would find me pulled over for speeding, ha! No, I would take this car for a nice cruise on beautiful Skyline Drive.

SEMA: What is the best advice you have ever received?

EC: “Work Hard.” First and best advice I’ve ever received. Never fails in work or life.

SEMA: What keeps you in the industry?

EC: It’s a great industry to work in. I constantly get to challenge myself every day and it never becomes mundane. This is an ever-evolving industry if you get complacent you fall behind. Our team is constantly exploring new opportunities, new ideas and working on initiatives that have a direct impact on our company.

SEMA: Where can you be found on a Saturday?

EC: Hanging out with my family, watching sports or playing some golf!

Fill out a PRO member spotlight form to highlight how you or your company are contributing to the automotive restyling industry. Selected candidates are eligible to be featured on PRO’s social media, SEMA News and future PRO-member updates.

By Juan Torres

Racers and dignitaries joined hundreds of motorsports professionals for the grand opening and ribbon cutting ceremony of the new Performance Racing Industry (PRI) Membership Headquarters in Speedway, Indiana, on May 26.

Racers and dignitaries joined hundreds of motorsports professionals for the grand opening and ribbon cutting ceremony of the new Performance Racing Industry (PRI) Membership Headquarters in Speedway, Indiana, on May 26.

Located at 1255 Main St. along the pathway directly to the Indianapolis Motor Speedway, the new 42,500-sq.-ft. facility is among the recent attractions added to the revitalized town. The facility, which includes event space, a 25,000-sq.-ft. garage, and office space for race-related businesses and organizations, will continue to evolve and become a one-of-a-kind gathering area for the motorsports community. Dedicated to building, promoting, and protecting the racing industry, the PRI Membership Headquarters will include a content creation and podcast studio, as well as a Members Lounge, in the near future.

“We’re excited to provide the racing industry with a place to call home,” said Dr. Jamie Meyer, PRI President. “For years, the industry has gathered at the PRI Trade Show to conduct business and celebrate all things motorsports. For the first time, the racing industry has a dedicated place where they can connect all year long.”

Invited guests at the Grand Opening were treated to an IndyCar helmet display, silent auction, current and historic racecars, driver appearances, live paintings and private tours of the newly renovated building, including the Bryan Herta Autosport race shop and Bell Helmets workshop.  

Cars on display included Antron Brown’s 2022 Matco Tools Top Fuel Dragster, John Force’s Camaro SS Nitro Funny Car, Graham Rahal’s 1990 March Porsche IndyCar, and more. Amongst those in attendance were U.S. Rep. Greg Pence, three-time Indy 500 winner Johnny Rutherford, ACCUS-FIA President George Silbermann, and Speedway Council President Vince Noblet.

“PRI plays such a critical role in the motorsports industry, and the opening of the Membership Headquarters is both significant and historic,” said Antron Brown, owner/driver of the AB Motorsports Matco Tools Top Fuel team. “Being able to connect in a centralized location will strengthen our advocacy efforts. I look forward to visiting the PRI Membership Headquarters whenever I am in town.”

PRI Membership debuted over a year ago to give businesses and individuals a way to support the motorsports industry while gaining exclusive benefits. As members of PRI, all attendees of the 2022 PRI Trade Show will be able to visit the PRI Membership Headquarters during the event December 8–10, 2022. Qualified existing members will be able to expedite the approval process for the trade show when registration opens in July.

To learn more about PRI Membership, or to join, visit PerformanceRacing.com/Membership. To learn more about PRI, visit PerformanceRacing.com.

By SEMA Washington, D.C., Staff

The California Assembly unanimously passed SEMA-supported legislation (AB 1951) that would provide a full sales and use tax exemption for the purchase of manufacturing and research and development (R&D) equipment not exceeding $200 million. The bill currently awaits consideration in the Senate. SEMA members are encouraged to register their support for the bill by clicking here.

California Assembly Member Timothy Grayson was introduced as the winner of the Stephen B. McDonald Legislator of the Year award at the 2019 SEMA Show.

If enacted, the exemption would change the current, narrowly applied exemption, and focuses on improving cost competitiveness to spur investment in California. Accounting for both local and state taxes, California’s ranks among the highest tax rates in the country.

AB 1951 is authored by Assembly Member Tim Grayson (D-Concord). Asm. Grayson is a member of the SEMA State Automotive Enthusiast Leadership Caucus and was the 2019 winner of SEMA’s Stephen B. McDonald Legislator of the Year award. In addition to being a lawmaker, Assembly Member Grayson, along with his wife Tammy, is also an enthusiast. Included in the Grayson’s collection are two classic Ford Mustangs.

For more information, please contact Christian Robinson at christianr@sema.org.

By SEMA Washington, D.C., Staff

Lawmakers in the California Assembly unanimously passed bipartisan SEMA-sponsored legislation (A.B. 2350) that would incentivize consumers to convert gasoline- and diesel-powered motor vehicles into zero-emissions vehicles (ZEV). If enacted, A.B. 2350 would provide eligible motorists who convert their vehicle with a $2,000 rebate. The bill currently awaits consideration in the Senate.

In recent years, California has implemented various programs, including the Clean Vehicle Rebate Program and the Clean Cars for All Program, to promote the purchase of new zero-emission vehicles (ZEVs). However, none of the programs currently offer benefits for vehicles that started their life with an internal-combustion engine and can be converted to a ZEV via an aftermarket motor package. A.B. 2350 helps preserve California’s rich car culture while creating new ways to make ZEV ownership more accessible.

SEMA encourages its members and enthusiasts in California to contact their lawmakers in support of A.B. 2350 by clicking here.

For further details, contact Christian Robinson at stateleg@sema.org.