SEMA News—March 2023

LAW AND ORDER

LEGISLATIVE AND TECHNICAL AFFAIRS

By Daniel Ingber

FEDERAL UPDATE

RPM ACT: Despite strong Congressional backing and extraordinary support from the racing community, the 2021–2022 Congressional session ended without passage of the RPM Act. During the final days of 2022, key negotiators in Congress could not reach an agreement on bill language that balanced the need for federal law to protect racers and motorsports parts businesses from U.S. Environmental Protection Agency (EPA) enforcement with reasonable measures to ensure that race parts are not used on vehicles driven on roads and public highways. The RPM Act made incredible progress in the 2021–2022 session of Congress. In addition to more than 1.5 million letters advocating for the RPM Act from the motorsports community to Congress, SEMA worked with Richard Petty to meet personally with key lawmakers in Washington, D.C., and NHRA Top Fuel driver Antron Brown testified in support of the bill before the U.S. Senate Environment and Public Works Committee. SEMA will continue its advocacy efforts to bring certainty to the racing community that is needed to protect a great American pastime and hundreds of thousands of jobs in communities throughout the country. For updates and information, visit
www.saveourracecars.com.

A Booming Outdoor Recreation Industry: New data released by the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) shows that outdoor recreation generated $862 billion in economic output and 4.5 million jobs in 2021. This equates to 1.9% of GDP in the U.S. economy and highlights the record-setting growth that the outdoor recreation industry has seen over the past few years. “From the creation of jobs and increased profit for small businesses in local economies, to larger boons to our national economy, this sector is a consistent driver, even in times of economic uncertainty,” said Jessica Turner, president of the Outdoor Recreation Roundtable (ORR), of which SEMA is a member. ORR is America’s leading coalition of U.S. outdoor recreation trade associations. It represents more than 50,000 businesses that produce vehicles, apparel, equipment and services enjoyed in our nation’s parks, waterways, trails and outdoor spaces. SEMA’s focus within ORR is on motorized recreation (four-wheel, ATVs, UTVs, etc.) along with all the equipment that makes it possible to tow RVs, trailers, boats and off-road vehicles (suspension, wheels, tires, increased horsepower, etc.).

INFORM Consumers Act: The SEMA-supported INFORM Consumers Act became law as part of the fiscal-year 2023 omnibus spending package. This bipartisan law is critical in helping law enforcement, manufacturers, retailers and online marketplaces of all sizes work together to protect consumers from bad actors peddling counterfeit and stolen goods. The INFORM Consumers Act increases transparency and accountability by requiring sensible verification and disclosure requirements designed to disrupt the sale of illicit goods. Below are key provisions of the INFORM Consumers Act:

• Requires online marketplaces to verify certain information about high-volume third-party sellers of consumer products, which is defined as sellers who make 200 or more discrete sales or transactions totaling at least $5,000 during any continuous 12-month period in the last 24 months, including the seller’s bank account number, business tax identification number or a taxpayer identification number, and contact information.
• High-volume third-party sellers with $20,000 in annual gross revenue through an online marketplace will have to disclose to consumers the full name of the seller or company, business address, and contact information (current working email address, phone number or other direct electronic messaging for the seller) after each sale.
• Empowers online marketplaces to suspend high-volume third-party sellers of consumer products who do not provide the required information within 10 days of the request from the online marketplace.

E15 Ethanol: The EPA is proposing to expand the amount of biofuels blended into gasoline by oil refiners during the next three years to 20.82 billion gal. in 2023, 21.87 billion gal. in 2024, and 22.68 billion gal. in 2025. More than 15 billion gal. per year would be derived from corn-based ethanol with the remainder coming from switchgrass, animal fats, or methane from dairy farms and landfills. Under the EPA program, oil refiners are required to meet the biofuel blend volumes or buy tradeable credits from refiners that do. In order to meet the biofuel volumes, the EPA agreed in 2011 to allow the amount of ethanol in gasoline to increase from 10% to 15% (E15) for model-year ’01 or newer vehicles. Ethanol, especially in higher concentrations such as E15, can cause metal corrosion and dissolve certain plastics and rubbers in older automobiles that were not constructed with ethanol-resistant materials and certain specialty high-performance equipment installed on newer vehicles. Although the EPA requires E15 gas pumps to include a warning label about fueling restrictions, SEMA continues to believe this is insufficient to guard against misfuelling.

Steel and Aluminum Tariffs: The World Trade Organization (WTO) ruled that the Section 232 tariffs imposed in 2018 by President Trump did not qualify under the claim of U.S. national security. The ruling applies to steel and aluminum imported from China, Turkey, Norway and Switzerland. The tariffs were global in scope when first imposed, but the United States has subsequently entered into agreements with many other countries to set metal import quotas and not challenge tariffs previously imposed. These countries include Argentina, Australia, Brazil, Canada, the European Union, Great Britain, Japan, Mexico and South Korea. SEMA has opposed the tariffs since they hurt U.S. companies and consumers and have failed to address global metal overproduction, primarily by China. Despite the WTO ruling, the issue remains unsettled. The U.S. Trade Representative disagrees and responded that the WTO does not have the authority to question the claim of a national security threat. There will be no immediate action on a U.S. appeal of the ruling. The WTO’s Appellate Body is not hearing cases since the United States has blocked new nominations to fill vacancies on the board. The United States contends that the WTO must first make reforms to its dispute settlement system.

FTC Crackdown on Fake Reviews: The Federal Trade Commission (FTC) has requested public comment on the potential harms stemming from deceptive or unfair review and endorsement practices used by businesses. Although fake reviews are illegal, the agency is exploring whether stiffer civil penalties for violations would make the marketplace fairer for consumers and honest businesses. As it considers a rulemaking, the FTC is seeking feedback on the pervasiveness and potential harms to consumers and competition caused by fake reviews, paid reviews, fake review websites and similar practices.

Right to Repair & Modify: The fiscal-year 2023 Omnibus Appropriations law includes language that directs the Federal Trade Commission (FTC) to prioritize investigations and enforcement to protect consumers from unfair control over vehicle data, including telematics information, which is wirelessly sent from a motor vehicle to the vehicle manufacturer. The law recognizes the FTC’s ongoing work examining how manufacturers, particularly mobile phone and car manufacturers, may limit repairs by consumers and repair shops, and how those limitations may increase costs, limit choice and impact consumers’ rights under the Magnuson-Moss Warranty Act. SEMA supports this provision and is also working to protect the right to modify by advocating for Congress to pass the REPAIR Act (Right to Equitable and Professional Auto Industry Repair), a bipartisan bill that would prohibit vehicle manufacturers from employing any technological or legal barriers that block aftermarket parts manufacturers or vehicle repair facilities from accessing critical repair information and tools. The bill also requires companies producing vehicles equipped with telematics to make available to aftermarket manufacturers and repair facilities any critical repair information and tools at a fair and reasonable cost.

SEMA News—March 2023

HERITAGE

By Drew Hardin
Photography Courtesy Pat Brollier, Petersen Publishing Company Archive

The Tales Your Tire Treads Tell

“The study of tread wear is as important to a mechanic as the study of fingerprints to a detective.” So wrote SAE engineer Ed Packer to open a February 1959 Hot Rod technical article about interpreting tire tread wear. By “watching your treads,” Packer stated, “you can keep your roadster or family sedan safer and more comfortable. As a bonus, you will cut operating costs.”

On six pages, Packer took a deep dive into the conditions that could be recognized with a close examination of the tire’s treads, from simple things like over- and under-inflation to the effects of improper alignment, worn ball joints, and wheels that are not true. “Many cars are delivered with wheels that are not round!” he exclaimed. “The situation seems unbelievable.”

Packer even touched on the detrimental effects of a rowdy hot rodder: “A very conservative old gentleman with a fine big car was complaining bitterly to a factory representative of one of the tire manufacturers. His tires were wearing…and he had his entire running gear checked for alignment. It was reported perfect. Inflation was correct. But the wear persisted. Finally the truth came out. The old man’s son used the car regularly, and he apparently enjoyed its high performance.

“So if that’s the way you want to enjoy your car, cornering wear is the bill you’ll pay.”

The photo the editors chose as the opening image for this story showed Packer examining a tire from what looks like a ’52 Mercury two-door and comparing its tread to the front tire still mounted on the car. The tire on the car had even wear; the tire in his hands showed obvious wear on the inner tread. We chose an outtake from that photo shoot that showed less of the worn tire’s tread but more of the Mercury. It was fairly dinged up for what would have been a relatively new car—and one photographed for the magazine. Note the paint rubbed off the front fender lip, and the dents at the rear of the quarter-panel. Apparently, tires weren’t the only things that could tell tales to an observant mechanic.

This is the upcoming GMC Sierra AT4X HD undergoing testing before its reveal. The heavy-duty off-road rig is wearing a healthy amount of camouflage front and back, disguising what is likely to be high-clearance front and rear fascias. The wheels are also camouflaged.

As reported by GM Authority earlier this month, the ’24 Sierra AT4X HD will feature 35-in. tires and DSSV dampers—both firsts for the Sierra HD. The model will slot above the existing Sierra AT4 HD as the most capable off-road-going Sierra HD. A debut should come in the next few weeks.

Photo credit: Brian Williams, SpiedBilde

By Ashley Reyes

The SEMA Wheel and Tire Council (WTC) is launching a new virtual networking event that will bring together SEMA members from the wheel and tire industry. The online series, called WTC Coffee & Conversation, includes five events throughout 2023 and offers members an open forum to discuss the wheel and tire market’s hottest topics and issues. Participants will connect to share their expertise, grow their network, and create valuable business connections.  

“We created the Coffee & Conversation series as a way to give wheel and tire members the opportunity to grow and learn from each other,” said WTC Networking Committee Chair Brett Kinsfather, ShopMonkey. “Members will build their social capital, walk away with different points of view and build relationships that are founded on the common ground of WTC membership.”

A discussion topic will be introduced to start the conversation; however, attendees are encouraged to bring a topic of their own that impacts their business personally and encourages open conversation for the benefit of the group.  

SEMA-member manufacturers, service providers, distributors, dealers, installers and media are all invited to attend as the event will a great opportunity to tap into new and undiscovered networks.    

The first WTC Coffee & Conversation networking event will take place March 2, at 9:00 a.m. (PST). View all dates in the series and sign up now to start growing your network.

 By SEMA Editors

Part of the SEMA Show planning process is securing a hotel that will fit your needs. Location, low price, amenities and ratings are all factors in determining the right place to stay for November.

To make the process quick and affordable, the SEMA Show Block website lists all the hotels available, the prices, distance from Show and more. Hotels booked in the Block are backed by a low-price guarantee. To ensure that your price remains the lowest, SEMA will price-match lower advertised rates, even after your reservations are set.

There are more than 30 properties to choose from in the Show Block. As an added benefit, SEMA provides shuttle service to and from the Show for hotels that are not within walking distance to the Las Vegas Convention Center.

The 2023 SEMA Show takes place October 31–November 3, at the Las Vegas Convention Center.

Exhibitors that would like to be part of the 2023 SEMA Show can get started at www.SEMAShow.com/buyabooth.

Registration for the Show is available www.SEMAShow.com/register.

 By Douglas McColloch

When the subject of conversation turns to tires, few industry experts can speak with as much authority as Dick Gust. The current CEO of the Tire Industry Association (TIA), Gust started his decades-long career while still in college, and upon graduation was hired as a design engineer with Uniroyal. He subsequently spent time in a variety of managerial roles with Sears Roebuck, Lakin Environmental and Liberty Tire Recycling, where he served as director of government affairs. He has worked with a number of industry associations, including the National Tire Dealers & Retreaders Association, American Retreaders Association and International Tire & Rubber Association. He has also served on the U.S. Department of Commerce’s Environmental Technologies Trade Advisory Committee.

For our annual tire and wheel issue, we spent some time with Gust to “talk tire.” What follows has been edited for clarity and length.

SEMA News: What’s your latest project? What are you working on these days?

Dick Gust: We’re working on gaining more membership, and we’re working on increasing our training programs that are our bread and butter. We really are a safety association, and it’s time that we updated a few of our training programs, so that’s our big push right now. To give two examples, we’re working on an earth-mover program, and we’re translating our commercial tire training materials into Spanish.

SN: What was your first job in the industry, and what did you learn from it?

DG: It was a summer job working at a Uniroyal tire plant in Eau Claire, Wisconsin, to pay for my college. I was a tire builder, so I learned the business from the drum up. After I graduated, Uniroyal offered me a job in their product development department. So that job gave me the best background in knowing how a tire comes together.

SN: What has pleased you most about this industry during the time you’ve spent in it?

DG: I think it always comes down to the people. It’s a very close-knit industry. People may move around from one company to another, but their enthusiasm for tires always goes with them. I haven’t worked in other industries, but I know this one’s pretty special in terms of
camaraderie.

SN: Tire manufacturers are starting to look at domestic tire production using non-rubber agricultural products, such as dandelions, to address supply-chain and sustainability issues. What potential impact do you think this could have on the industry and on the
consumers?

DG: Manufacturers are looking long-term at less reliance on overseas rubber plantations and more on various sustainable products that they can incorporate domestically into the construction of a tire. When the materials don’t have to be transported overseas, that’s going to positively impact the supply chain, but certainly not in the next few years.

SN: The retread industry has faced challenges in recent years. What do they have to do to stay competitive?

DG: A lot of the retread companies have been purchased by major tire manufacturers, and they’re recognizing that it’s a great sustainable product. One of the challenges they’ve had, though, is with tires that are coming in from the Far Eastern countries—China, for example—and some of those tire casings are not suitable to be retreaded. Additionally, the price for a new tire in China is so inexpensive that it makes selling retreads into that market difficult. But I think over time this problem will work itself out.

SN: What’s your daily driver and what do you like best about it?

DG: I drive a Jeep Grand Cherokee. I’ve owned four of them previously, and I just think it’s a terrific car.

SN: Let’s talk about electric vehicles (EVs) for a moment. They pose unique challenges on tires. How is the industry responding? And what can consumers expect down the road?

DG: We’ve created an electric-vehicle advisory council, and we’ve pulled together some experts within the industry to look at a lot of different things. EVs have a lot more weight than ICE vehicles, so from the tire perspective, tires for EVs are going to wear out faster. So, the manufacturers are looking at materials for these tires that make them longer-wearing and with better rolling resistance.

SN: As you mentioned, TIA is all about safety. Could you talk a bit about what you think the industry in general could do to improve safety protocols?

DG: Right now, we’re looking to emphasize the commercial tire industry a lot more. Many people who handle commercial truck tires don’t realize that it’s an OSHA requirement to be trained to do so. If you touch a commercial truck tire, you are required by OSHA to be trained. So we’re trying to aim our training programs more toward the commercial side of the business.

SN: If you went back to school, what would you study?

DG: I have a degree in chemistry, and at one point I thought about becoming a doctor. So I’d probably go back into some kind of medical field.

SN: When you’re away from work, where will you be, and what will you be doing?

DG: My wife and I are new to the East Coast now, so we spend time venturing out on weekends looking at historic sites in the Washington, D.C., area. We have a vast array of museums here, so you might find us at a museum on the weekend.

Are you hunting for a new job? The SEMA Career Center has a comprehensive listing of automotive-related job openings around the country. Here are some of the latest jobs posted to the website.

Latest Jobs Added to SEMA Career Center

Client Success Manager
MyRacePass

MyRacePass is hiring a drag-racing client success manager responsible for generating revenue by developing lead generation, qualification and closing sales; recommending any potential products and services that would benefit the client while keeping an ongoing relationship with current and potential clients; training promoters on MyRacePass services and day-to-day client relations; and handling the process of a new client onboarding while working with developers and designers throughout the process.

Project Manager
Transworld Products Inc.

Transworld Products Inc. is hiring a project manager to work directly with staff and factories in Asia and targeting small to mid-sized U.S. manufacturers for sales opportunities. The candidate will be an articulate, detail-oriented, mechanically minded, creative, self-motivated professional with a minimum of three years’ global sourcing and/or project management experience.

Salesperson
Wheel-1

Wheel-1 is hiring an aftermarket wheel and tire salesperson responsible for selling company products in accordance with company requirements and customer needs; delivering sales presentations to customers in coordination with company marketing and sales strategy; and providing information regarding products, account inquiries and order status via phone or email. Candidates must be bilingual, Spanish/English is preferred, and be willing to travel. Prior sales experience is required.

By SEMA Editors

Dates and locations have been scheduled for several upcoming SEMA-sponsored shows, measuring sessions and activities.

By Ashley Reyes

To keep businesses in the restylers/accessory market up-to-date on programs and events available to their companies, the SEMA Professional Restylers Organization (PRO) is hosting a virtual general membership meeting, Tuesday, February 24, at 9:00 a.m. (PST).

General membership meetings are the ideal time to learn about what the council has planned for the year and get updated on programs available to help automotive restylers succeed in the marketplace. Participants will join members at large, connect with the select committee and tap into resources that address common challenges facing the restyling segment of the automotive aftermarket.

This is a can’t-miss event for those who want to expand their footprint in the restyling industry, as you’ll get to network, ask questions and learn how to maximize your PRO membership.

Click here for all the details and to RSVP so you don’t miss out.

  By Ashley Reyes

SEMA members are invited to connect with Vin Anatra of Hoonigan during the SEMA Future Leaders Network (FLN) Facebook and Instagram live chat, Wednesday, February 15, at 12:00 p.m. (PST).  

An inexperienced kid from New York with a passion for cars, Anatra helped build one of the most notable and influential brands in the automotive apparel and media space—Hoonigan. He will now go live to share his expertise on the importance of content creation in the automotive aftermarket’s marketing mix and how to turn content into tangible and sellable assets.

Anatra moved to Los Angeles in 2015 to work for the brand as an entry-level marketing coordinator. At 34 years old, he is senior vice president of partnerships and has put together more than $20 million in brand deals with automakers, 10 of the top Fortune 100 companies and a majority of the endemic aftermarket.  

SEMA members will have the opportunity to ask Anatra questions as he discusses the importance of content creation in our industry, and how he’s pivoted and evolved with the ever-changing digital landscape with authenticity as his north star.