By SEMA Washington, D.C., Staff

The U.S. Court of International Trade ruled that the Trump administration had sufficient authority to impose tariffs on nearly $320 billion worth of Chinese goods even though the U.S. Trade Representative (USTR) did not adequately explain the rationale for the tariffs. As a result, the Court will not overturn the tariffs imposed on the so-called Lists 3 and 4a goods. List 3 covers most auto parts imported from China, from engines and metal fasteners to tires and brake pads.

In 2018, the USTR instituted a Section 301 investigation of Chinese trade practices and imposed $50 billion in tariffs on a variety of goods on Lists 1 and 2, including miscellaneous metal and rubber parts. The tariffs were intended to serve as bargaining chips in trade negotiations between the two countries. After China responded with retaliatory tariffs, the U.S. imposed the additional List 3 and 4a tariffs. The List 3 tariffs began at 10% in September 2018 but increased to 25% in May 2019.  

More than 6,000 importers challenged the List 3 and 4a tariffs as not being within the scope of the original Section 301 unfair trade investigation. The Court ruled that there was sufficient nexus tying the tariffs to the investigation but ordered the USTR to provide the Court with further explanation and justification for the List 3 and 4a tariffs. The USTR was specifically directed to explain in greater detail how it decided to include or exclude particular tariff code subheadings, concerns raised about the impact of the duties on the U.S. economy, and potential alternative courses of action.

For more information, contact Caroline Fletcher at carolinef@sema.org.

By SEMA Editors

The SEMA Awards Gala (formerly the SEMA Installation Gala) is a long-established tradition where individuals who have made extraordinary contributions to the industry are honored and celebrated.

Join SEMA leadership, volunteers and industry icons at the SEMA Awards Gala, Friday, July 29, in Anaheim, California, to honor 2022's SEMA Hall of Fame Inductees. The gala will take place at the Westin Anaheim Resort.

Since its inception in 1976, the SEMA Installation Gala (now the SEMA Awards Gala) has served as the formal gathering where new SEMA Hall of Fame inductees are introduced, the incoming Board of Directors are recognized, and outgoing Directors are thanked. SEMA council, network and industry leaders are also highlighted during the event.

Connect with friends and family who share a common passion and love for the industry. Join others in helping celebrate Hall of Fame inductees’ lifetime achievements.

The evening will feature cocktails, networking and dinner. Seating is limited. A full table can be purchased by selecting 10 tickets.

Registration for the 2022 SEMA Awards Gala opens Friday, April 29.

SEMA News—April 2022

SEMA Member News

Council & Network Leadership

By SEMA Editors

Automotive Restoration Market Organization (ARMO)

Behind the Scenes With ARMO’s Sabra Johnson

Sabra Johnson has 30-plus years of restoration experience. He started out collecting and modifying vehicles as a hobby. The hobby evolved into City Classic Cars, a flourishing Houston-area restoration business specializing in restomods and ground-up restorations.

Sabra Johnson serves on the ARMO select committee and chairs the ARMO Builder Panel and Builder Series subcommittee.

A SEMA member and a volunteer leader, Johnson serves on the select committee of the Automotive Restoration Market Organization (ARMO) and chairs the ARMO Builder Panel and Builder Series subcommittee.

We asked Johnson to share his thoughts on his volunteer experience and the importance of the subcommittee he leads.

SEMA Member News: What motivated you to get involved in ARMO?

Sabra Johnson: As a restorer, I have a shared affinity with ARMO for preserving and promoting the beauty and history of the automobile. Sharing that rich history is one of my passions. I’m on the select committee because SEMA encourages involvement, and I’m honored to be of service and give back.

SMN: What is the driving force behind the ARMO Builder Panel and the new Builder Series?

SJ: The vision is to create an ongoing resource culminating at the Builder Panel during the SEMA Show, where [other] builders can ask questions and be inspired by the stories and business acumen of industry leaders in the restoration segment.

The focus of the Builder Panel is to attract leading builders from various regions of the country, not just to share information to help people build better cars. It is about sharing information to help people build more profitable businesses.

For the Builder Series, we did three on-site visits led by me and my Rusty Bones Production crew. The project consisted of a feature story and professionally produced sit-down interviews with Ridler winner Steve Cook, TV personality Dan Short, and Ferrari purist Bob Smith. We also produced a series, “In the Shadows,” that focused on a student and a teacher. We tied that into how ARMO companies are training the next generation and partnering with schools and students.

I believe the digital content is invaluable and has the future potential to become a case study for an ARMO master class in restoration. The builders and manufacturers want to give back to the industry and help others find success. These digital resources will prove invaluable 20 years from now.

>>Sabra Johnson serves on the ARMO select committee and chairs the ARMO Builder Panel and Builder Series subcommittee.

Emerging Trends & Technology Network (ETTN)

ETTN Expands Education Lineup

The Emerging Trends & Technology Network (ETTN) has enriched its educational offerings. From a new virtual education series and an in-person tech symposium to Facebook Live Chats, ETTN programs aim to help members advance careers and build connections.

“Our mission is to provide resources to help engineers and product developers succeed in this industry,” said ETTN Chair Rob Simon. “Each of these programs provides knowledge and tools essential to continued success.”

“By collaborating with the industry’s best talents to share their knowledge and expertise, we will give members the best and most relevant program available.”—Robert Prucka, PhD, ETTN Select Committee member.

Virtual Learning Experiences

The virtual education series launched in January, with sessions scheduled monthly through October. The interactive series delves into technical topics in 30–45-min. segments. Topics range from common repairs affecting advanced driver-assistance systems and electric-vehicle powertrain technology to diesel emissions formation and beyond. The Simulive sessions are led by select committee members Robert Prucka, PhD, and Bob Morreale.

“We’re taking a deep dive into the world of automotive engineering and offering ETTN members quality content in bite-size segments,” Prucka said. “By collaborating with the industry’s best talents to share their knowledge and expertise, we will give members the best and most relevant program available.”

ETTN is also continuing with Live Chats. The platform allows members to engage with thought leaders.

How do the sessions differ from virtual education? According to Simons, Live Chat presenters share aspects of their careers and advice from a technical aspect, whereas the virtual sessions dive deeply into technical topics.

Immersive Symposium Combines Education, Networking

Merriam Webster defines “nerd” as “a person very interested in technical subjects.” That’s an apt description of ETTN’s inaugural NERD Symposium slated for August 17–19 in Detroit. The multifaceted symposium (whose acronym stands for networking, education, resources and development) is designed for engineers and product developers.

First-day activities include a tour of the new Detroit SEMA Garage, measuring sessions, and an evening networking reception. The remaining days will consist of rotating meetings, giving attendees access to a range of service providers that include test labs, tools and machinery manufacturers and intellectual-property protection experts. Additionally, in-depth training and keynote presentations will address some of today’s hottest topics. The event will conclude with the grand opening reception of the SEMA Garage.

While education is a core element, abundant networking opportunities are a high priority, Simons noted.

“Of course, we want to provide value through education, but the idea is to get engineers to network with other engineers and service providers and get involved in SEMA,” he said. “With the SEMA Board’s strategic priority on vehicle technology, we want the industry to be an attractive place to work, and we want to provide the resources for engineers and others to be part of the SEMA family.”

Future Leaders Network (FLN)

YEN Rebrands as FLN, Cultivates Aspiring Leaders

The Young Executives Network (YEN) has undergone a transformation, changing its name to the Future Leaders Network (FLN). The rebranding, approved by the SEMA Board, more accurately reflects the network’s vast membership, which encompasses a diverse workforce segmented within multiple titles and job descriptions that do not necessarily reflect an executive role.

“Our mission has always been to support our members in their career-advancement journeys... As our members aspire to further their careers, the name change more accurately reflects our goal of cultivating future leaders in our industry.”—FLN Chair Nick Caloroso

In advocating for the name change, the group noted that more than half of its 1,100-plus members do not hold executive positions, which could deter potential members from joining the network, and that changing the name would broaden the network’s appeal and encourage greater engagement.

“Our mission has always been to support our members in their career-advancement journeys,” said FLN Chair Nick Caloroso. “While we are retaining our under-40 age requirement, the word ‘young’ in our name conveyed inexperience. At the same time, the word ‘executive’ didn’t fit a substantial portion of our membership. As our members aspire to further their careers, the name change more accurately reflects our goal of cultivating future leaders in our industry.”

Mastering Leadership Skills

A new professional development program was launched in March at SEMA’s headquarters in Diamond Bar, California. The two-day leadership program, sponsored by FLN in partnership with Dale Carnegie, focused on helping a select group of FLN members master essential skills to expand both personal and professional capabilities.

The idea for the program sprang from Caloroso’s own experience of attending an immersive 12-week Dale Carnegie course. His experience motivated the network’s select committee to propose an abridged version for FLN members, which was greenlit by the SEMA Board.

According to certified Dale Carnegie Trainer Brett Campbell, the abridged version packed 12 weeks of content into two days. The interactive format focused on core learnings: confidence building, improving communication skills. and strengthening human relationships.

“One of the principles of adult learners is that they want a say in the training, and Dale Carnegie really champions that,” Campbell said. “It’s built on the idea that everyone has inherent greatness, but not everyone knows how to tap into that. Because we want everyone to experience maximum benefit, we do that by keeping participants engaged with their peers.

“As much as people think of Dale Carnegie as a public-speaking course, it’s not. It’s a leadership course. It’s about building confidence, becoming an effective communicator, [learning] how to lead through change, and how an individual can be the best possible representative of their company, both internally and externally.”

Hot Rod Industry Alliance (HRIA)

Meet HRIA Select Committee Members

Members of the Hot Rod Industry Alliance (HRIA) select committee are volunteers who work collaboratively within subcommittees and task forces to develop industry-specific tools and resources. For an inside look, we interviewed two subcommittee chairs. These are their edited comments.

Josh Mishler, Education Days Subcommittee

The industry has given me so much. It has provided an enjoyable career and introduced me to amazing individuals. When I became aware of HRIA, I wanted to be involved.

Being from the younger crowd, I knew youth involvement would be a major facet in advancing the industry. That I could help by inviting the next generation of hot rodders was very appealing.

Education Days is a wonderful initiative. The two-day event is part of the National Street Rod Association Street Rod Nationals and features 12 presenting companies. It provides member manufacturers with the opportunity for face time with consumers and hobbyists alike.

As we look to expand the reach of Education Days and further education about the industry, we’re focused on hosting a panel discussion at the Grand National Roadster Show in 2023. Details are being worked out. We hope to bring in students from area high schools and trade schools.

We are a voice for everyone who is an HRIA member. Attending open meetings is a great way to meet others in the industry, grow your connections, and brainstorm issues many of us share. If you have a passion for this industry, we would be glad to have you on our team.

Jeff Grantmeyer, Membership Subcommittee

Borgeson Universal was an HRIA member before I started in 2008. When attending trade shows, I always attended open meetings and Education Days as an attendee and a presenter. This gave me a good idea of what HRIA was about. In 2018, I threw my hat in the ring for the select committee elections.

The role of the subcommittee is to provide a key point of contact for HRIA-member companies as well as member retention and recruitment. HRIA engages with member companies through social media with our member spotlights, which feature a member company or an individual. Additionally, we have virtual and in-person meetups and open meetings throughout the year.

As a select committee, we advise SEMA as to what resources the industry needs and help to deliver those resources. Membership benefits include manufacturer seminar opportunities at Education Days, the feature-vehicle program at the SEMA Show, and access to SEMA market reports specific to the hot-rod industry. Other benefits in the works will be rolled out soon.

We are always looking to add more members to strengthen and expand our industry. We are always looking for new volunteers to join our select committee.

Motorsports Parts Manufacturers Council (MPMC)

MPMC Hails PRI Success, Memorializes Industry Icons

Members of the Motorsports Parts Manufacturers Council (MPMC) were overjoyed at the prospect of reuniting at the 2021 Performance Racing Industry (PRI) Trade Show. According to MPMC Chair Melissa Scoles, the atmosphere was upbeat and the show was a resounding success.

SEMA Board Chair-Elect Kyle Fickler delivered a heartwarming tribute at the MPMC Performance Industry Reception at PRI.

“PRI has always been one of my favorite shows, and it skyrocketed to the top last year,” she said. “It was great to be together again. We’re a tightknit industry, and the show did a good job of showcasing that.

“Nobody knew what to expect walking in. The staff did a great job putting together a well-run event. Everyone was happy, the aisles were crowded, conversations were engaging, booth traffic was great, and the ancillary events were well attended. It felt like a normal PRI.”

Networking Mixer Sparks Dialog

The MPMC Happy Hour afforded manufacturers and the select committee a welcome opportunity to engage in quality conversations.

MPMC kicked off the show with its traditional Happy Hour. Held after business hours on setup day, the mixer afforded manufacturers and the select committee a welcome opportunity to engage in quality conversations.

“We had some really great conversations,” Scoles noted. “We got a lot of good feedback about how we could use MPMC to better benefit to our motorsports parts manufacturers, including ideas on what other services we could provide. As a select committee, we are excited to run with some of those ideas.”

Lost Legends Remembered

MPMC ended the Show on a high note, hosting its longstanding Performance Industry Reception. Apart from the camaraderie typical of council events, the reception presented an opportunity to talk about council activities and issues important to the motorsports community.

“The reception itself was great,” Scoles said. “There was solid attendance and some great conversations. We were able to share information about MPMC and talk about volunteering. We also touched on the Recognizing the Protection of Motorsports (RPM) Act and why it’s important for our industry to support it and stay involved.”

The highlight of the evening, however, was a remembrance of industry legends who passed away during the past two years. Set against a PowerPoint collage of photos, SEMA Board Chair-Elect Kyle Fickler delivered a heartwarming tribute.

“Kyle did a really fabulous job of talking about some of the people who really impacted our industry and telling personal stories about a lot of these individuals whom we recently lost,” Scoles recalled. “It was gratifying that some family members and coworkers were able to be there and for us to honor these individuals in this way.”

Professional Restylers Organization (PRO)

PRO Cup Challenge Reaps Rewards

The 2021 PRO Cup Challenge, held by the Professional Restylers Organization (PRO), celebrated restyler craftsmanship and creativity. Seven vehicles competed, each upfitted with an accessory package that could be easily replicated, appeal to a range of customers, and enhance profitability for new-car dealers and restylers.

“We were excited to participate in two Challenge events,” said Automotive Concepts’ Dino Perfetti, whose Bronco was chosen as the fan favorite. “It allowed our team to build packages that proved profitable for our dealer partners. But the ultimate takeaway was the creatively designed packages by some of the leading companies in our industry.”

Four contestants—including winner Tom Waitzman—shared their experiences in interviews with SEMA Member News. Here are edited excerpts:

Chelsea Allen, Crush Customs

I’ve always been in awe of the cars on display at the SEMA Show. When the opportunity presented itself, Colby McLaughlin (PRO chair-elect) encouraged me to apply.

Putting together a build during a pandemic was challenging. Overcoming those challenges was a huge morale boost for our team. I brought some of my guys to the SEMA Show. Their joy at seeing their work on display was priceless, and the dealer couldn’t be more pleased: The vehicle sold in three days.

It’s great for restylers to see builds we can recreate. Discussing ideas and benefits with fellow PRO members presents huge opportunities.

Chris Turgeon, On the Rocks 4x4

When I learned about the Challenge, we talked about how it would be a boost to our small shop. We’ve always had a goal of doing restyling for dealers but had yet to make good contacts.

We benefitted in many ways. It was a hit with our social media. We gained new followers, with a percentage turning into customers. It provided a boost of credibility with our suppliers.

One of the best benefits was exposure to dealers. When we finished the truck, we showed it around. This has led to many leads and steady accessory work with two multi-line dealer groups. The exposure is already paying dividends.

Aaron Vaccar, Vaccar Co.—City Kia

I learned about the Challenge from media coverage of the 2019 SEMA Show. The desire to participate in 2021 aligned with the work I’m involved with and my passion for project vehicles.

I gravitated toward a Kia because of my relationship with City Kia. While the idea of added marketing was a worthwhile benefit, it was equally meaningful to support a unique, education-type contribution.

For PRO members, the Challenge can be a source of aspiration, inspiration and information. These are real-world examples that get budgeted, built and sold. It provides a rare, unfiltered look at how a profitable business relationship exists between restylers and dealerships.

Tom Waitzman, DPS Automotive Group

I saw the 2019 Challenge. Once it was announced for 2021, I wanted to be involved. I’m proud of what my team does on a daily basis, and the opportunity to show that at the SEMA Show was very exciting.

I’ve always dreamed of having a car at the SEMA Show. I knew choosing a brand like VW, which doesn’t get accessorized as much as other brands, would set us apart. Winning the Challenge brings an enormous amount of pride and satisfaction for the hard work we put into the build.

Having a car at the SEMA Show is an accomplishment in itself. Restylers should want to show customers and their peers what they do to support our industry.

SEMA Businesswomen’s Network (SBN)

SBN Forges Ahead With New Initiatives

The SEMA Businesswomen’s Network (SBN) kicked off 2022 on a high note, launching its latest virtual education series and Live Chats in January, followed by SBN’s Leadership Forum and plans to embark on an all-female project-vehicle build.

“We are excited for the opportunities we’ve created for our members to expand their knowledge and leadership skills,” said Chair Cathy Clark.

In 2012, SBN tackled the SEMA Mustang Build Powered by Women. More than 40 industry women volunteered their time and talents to customize a ’13 Mustang GT.

Career-Advancing Resources

SBN has successfully utilized virtual platforms to deliver information and resources. The current lineup of Facebook Live Chats, for instance, offers insights into the careers of seven prominent industry women.

“Live Chats are a great way to learn about accomplished women and how they forged their own paths in a male-dominated industry,” Clark said. “They all have inspiring stories to share.”

The virtual education series focuses on refining professional skills and knowhow. Sessions are free. They are open to women at any level in their careers, and both members and nonmembers are encouraged to attend.

Each of the 11 sessions is presented by a professional speaker with expertise in a specific topic. Subjects include the importance of performance reviews, implementing a healthy work/life balance, navigating change, how to maximize one’s role for success and more.

The newest experience was the in-person Leadership Forum held in mid-March in Costa Mesa, California. The fee-based, women-centric event concentrated on honing leadership skills and community building through education, mentorship and group discussions.

“SBN is focused on providing resources to help our members advance their careers,” Clark said. “Our resources and event committees teamed up to provide a worthwhile forum for women to grow personally and professionally.”

SBN recently received SEMA Board approval for an all-female build. SBN plans to partner with a West Coast shop and the SEMA Garage.

Harnessing Female Talent

In 2012, SBN tackled an ambitious project: the SEMA Mustang Build Powered by Women, with SEMA and Ford Motor Company teaming up for the build. While many member companies contributed products and services, more than 40 industry women volunteered their time and talents to customize a ’13 Mustang GT. The project was a huge success, garnering widespread media coverage, and was ultimately auctioned to raise funds for the SEMA Memorial Scholarship Fund.

Flash forward to 2022. SBN recently received SEMA Board approval for an all-female build. SBN plans to partner with a West Coast shop and the SEMA Garage to host the vehicle and encourage participation among association members.

Though details are still being ironed out (a proposal to an OEM to receive a project vehicle is in the works), the goal is to build a vehicle that encompasses and showcases many women’s skill sets. The project also aims to create opportunities for women to learn new skills. By increasing awareness of female expertise and their presence in the industry, the project aspires to shift the dynamic of a male-dominated industry to create equal opportunities for women.

According to Clark, once the vehicle is secured, work will begin in the late spring or early summer, with plans to unveil the completed project at the 2022 SEMA Show.

“This is something we’ve been working on for a while,” Clark said. “The goal is to feature the vehicle in an OEM booth at the SEMA Show. For 2023, we plan to take the vehicle to events to promote the build and show off what women in our industry do. We are so excited that the SEMA Board has greenlit the project, and we can’t wait to get started.”

Truck & Off-Road Alliance (TORA)

TORA Sets Fundraising Record

Improving the lives of children in need through charitable contributions is a worthy cause, one that the SEMA Board embraced in 2007 with the establishment of SEMA Cares. The nonprofit provides a forum for SEMA members to act as a collective influence by making a positive impact beyond the automotive
community.

The Pinewood Derby is a lively staple that sparks enthusiasm and opens wallets for SEMA Cares.

SEMA Cares supports three charities: Childhelp for the prevention and treatment of child abuse; Victory Junction for children with serious medical conditions; and the Austin Hatcher Foundation for pediatric cancer care.

Primary fundraising is through direct donations and charitable events, including the popular Pinewood races and the Industry Cup Challenge, held during the SEMA Installation Gala. Some SEMA councils—and notably the Truck & Off-Road Alliance (TORA)—have embraced SEMA Cares in a variety of ways.

Some SEMA councils—and notably the Truck & Off-Road Alliance (TORA)—have embraced SEMA Cares in a variety of ways.

Making a Difference

As anyone who’s attended TORA’s industry reception at the SEMA Show knows, the Pinewood Derby is a lively staple that sparks enthusiasm and opens wallets for SEMA Cares.

“Our community has supported SEMA Cares for many years, back to the Light Truck Accessory Alliance,” said Troy Wirtz, council chair. “It’s such a worthy cause, and we promote that. We want our members to know that participation in the Pinewood Derby directly benefits the three charities.”

Putting the derby together took a team effort, with volunteers helping to set up and operate the track and others manning the door.

“Everyone’s always willing to pitch in,” Wirtz said. “Dave Williams helped with setup, Rick Hermann did a great job again as emcee, and we’re grateful to everyone who helped make the Pinewood Derby a success.

“The new location on the West Hall terrace was great. It worked to our advantage. There was only one door to get in, which helped with the sale of the cars. We were able to capture everybody walking in.”

In 2019, TORA raised about $3,500.

“We wanted to hit the $4,200 mark last year [2021], and we did,” Wirtz said. “SEMA matched that, so we ended up hitting $8,400. That $4,200 came just from the sale of cars at $20 apiece. Knowing we’re making a difference in children’s lives is such a good feeling.”

Wheel & Tire Council (WTC)

WTC Presents Educational, Networking Opportunities

Following on the heels of its successful webinar series, the Wheel & Tire Council (WTC) has embarked on a new virtual education initiative for its members. While the 2021 program consisted of separate tracks (one for wheel specialists, the other for tire pros), the current program covers a range of topics.

“...Education needs to be at the forefront, and we want it to be impactful to the entire membership.”—WTC Chair Todd Steen

“Things are changing so rapidly that we should all be looking at ways to stay at the top of our games,” said WTC Chair Todd Steen. “Therefore, education needs to be at the forefront, and we want it to be impactful to the entire membership.”

Steen noted that the schedule includes six webinars, one every other month, with the possibility of a seventh presentation. All sessions are presented live and run 30–45 min., allowing speakers to answer questions on the spot.

The lineup features industry thought leaders and experts, including SEMA Board members and staff. Subjects run the gamut from a deep dive into the Recognizing the Protection of Motorsports (RPM) Act and advancements in tire and wheel designs to ways to grow and sustain business for the future.

“The value lies in giving people insights in small bites on a regular basis so that everyone can take advantage,” Steen said. “Whether it’s what wheels and tires will look like in five, 10 or 20 years, the RPM Act as it relates to our members, or human resources issues, it’s about sharing nuggets of industry and business wisdom.”

Virtual and In-Person Connections

Intent on helping members build meaningful connections and having some fun in the process, WTC has taken a two-pronged approach that includes virtual events and in-person gatherings.

To jumpstart the season, the council teamed with two SEMA networks to cohost a networking mixer during the Grand National Roadster Show in Pomona, California. That event was followed by a similar joint mixer at the Keystone Big Show in Dallas, Texas, in March, with future WTC gatherings slated for an Off-Road Expo and a Formula DRIFT event.

In early February, members were treated to a unique and entertaining virtual experience—a live version of Kahoot!, a game-based learning platform that allows remote players to join a game or trivia quiz. The event was emceed by industry pioneer Brad Fanshaw, who shared stories about life as a custom car builder, TV personality and entrepreneur. A second virtual event is on tap for August 3.

For details on upcoming webinars and networking opportunities, log on to the WTC Facebook page, check out council updates or visit www.sema.org/wtc.

SEMA News—April 2022

BUSINESS

SEMA Announces First-Ever Emissions Certification Program

The New Initiative Meets EPA Tampering Policy Requirements to Help Speed Products to Market

By Mike Imlay

For nearly a decade, the SEMA Garage has assisted association members in obtaining CARB EOs. Now a new SEMA Certified-Emissions (SC-E) program is helping manufacturers demonstrate “49-state legality” for their products under EPA guidelines. For many, this means quicker speed to market.

In February, SEMA announced an industry first: a new program making it possible for specialty automotive parts manufacturers to meet the legal requirement for emissions compliance under the U.S. Environmental Protection Agency’s (EPA) Tampering Policy. The program, called SEMA Certified-Emissions (SC-E), enables manufacturers to verify that a product meets the EPA’s “reasonable basis” criteria and is therefore legal for sale in 49 states.

According to Mike Spagnola, SEMA vice president of OEM and product development programs, SC-E now gives product makers “a clear, accelerated path to compliance so they can begin selling products legally in 49 states prior to receiving a California Air Resources Board (CARB) Executive Order (EO), which remains a requirement for selling products in all 50 states.”

Ultimately, SC-E aims to help manufacturers more quickly speed products to market while paving a path for demonstrating emissions compliance in all 50 states. For the inside scoop on this new program, SEMA News turned to Peter Treydte, SEMA director of emissions compliance, and David Goch, SEMA general counsel, for a brief Q&A. The following is that interview, edited for clarity and length.

SEMA News: Let’s start with some background. Why did SEMA launch the SC-E program?

Peter Treydte: Until recently, the CARB EO was really the only known path toward clear emissions compliance in all 50 states. If you followed that program and obtained an EO, the EPA always recognized it as a proper demonstration of emissions compliance. What remained unclear until recently was the path to emissions legality in 49 states without a CARB EO. Companies realized they needed to demonstrate a “reasonable basis” to claim 49-state legality, but they didn’t know how to get there.

In November 2020, the EPA clarified what constitutes a reasonable basis in its Tampering Policy. Now that we have clear guidance, SEMA is leveraging that document to provide a program that can give manufacturers assurance that their products are 49-state legal. They can become EPA-compliant through SEMA certification.

Work is continuing on the new 45,000 sq. ft. SEMA Garage facility in Detroit, pictured in this artist rendering. The Detroit location’s new emissions lab is expected to open this summer, bringing substantially expanded testing capabilities to the SC-E program.

David Goch: Members also need to know that this is about more than compliance. This is about enforcement. The Clean Air Act and CARB mandates have been in place for half a century, but there wasn’t strong enforcement during much of that time. Now it’s different. We aren’t dealing with the EPA or CARB of the ’70s, ’80s or ’90s. Aggressive enforcement is now taking place. Moreover, EPA and CARB enforcement techniques—the fines they are leveling and the consent agreements they are having parties enter into—are difficult and onerous. We’re trying to help the industry stay compliant and avoid all that.

SN: How does SC-E lessen the risk of the severe business disruptions you describe?

DG: If the EPA knocks on your door thinking that you’re doing something illegal, you’re in for a long road. You’ll have to produce information about your sales, customers, and all sorts of other documents. You’ll spend a lot of time and money on that, not to mention legal bills and civil enforcement. But if you can pull out your SEMA certification, we’re confident the EPA will say, “Fine, thank you,” and accept it as evidence that your product is legitimate. Hopefully, the EPA never knocks, but if it does, this will be the best way to quickly end the conversation.

SN: How does a manufacturer access the program?

PT: It starts by contacting the SEMA Garage. We’ll assist the manufacturer with the application process, which includes a product description, what it fits and so forth. There is a $500 fee to submit the application.

In processing the application, we’ll determine and advise whether any testing is necessary and what that testing will be. If it’s testing available at either our Diamond Bar or Detroit SEMA Garage facilities, we’ll perform it. If not, we’ll help guide the project through an appropriate outside testing facility.

I should add that the program is already active. We completed our first project earlier this year, and we have another seven or eight projects in the hopper that will be certified within a month or so.

SN: What are the nuts and bolts of the testing process?

PT: Functionally, it’s going to feel very similar to a CARB EO process. However, we aim to be faster than CARB is at issuing EOs. It can take CARB up to six months to issue an EO. Since we’re certifying EPA compliance, we also have a little more flexibility than CARB in certain areas. Still, the idea is that if you’re also intent on receiving a CARB EO, we’ll tailor your project to meet both the EPA and CARB requirements.

In other words, you can obtain an SC-E certificate followed by a CARB EO. In most cases, the SC-E certificate will be in your hand a month or more ahead of the CARB EO, enabling you to confidently market your products in 49 states sooner than in California. But ultimately, our testing will be in the same format CARB requires. We’re simply leveraging what we already know about the CARB process for our SC-E program.

DG: Just to emphasize what Peter said, SEMA believes that its program is equivalent to a CARB EO. In time, we’ll be able to demonstrate that. Our goal goes beyond EPA compliance. We plan to work with other state and local agencies concerned with vehicle emissions standards to secure their recognition of our SC-E program as well.

What’s exciting about this is that it’s SEMA’s first foray into assisting the aftermarket and performance racing industries with a standards and certification program. We anticipate that it will be successful and become a template for any future programs addressing other segments of our industry. In fact, this resembles the self-regulation found in many industries. When they need clarity in a particular area, they find ways to set and meet standards and promote their products in a legal manner.

SN: Like the Underwriters Laboratories (UL) label for electric products?

PT: That’s a good example. In fact, along with an official certificate and seal, we’ve developed a label that can be affixed to products or packaging.

SN: Many association members are probably familiar with the testing process at the SEMA Garage, but just as a refresher, what’s involved?

With a new emissions lab in Detroit and this one in Diamond Bar, California, the SEMA Garage has full, state-of-the-art OBD and tailpipe-emissions testing capabilities, covering well over 90% of product applications. For outlier projects, an SC-E engineer can determine and direct the right testing at an outside facility.

PT: There are generally three aspects to emissions evaluation. First, there’s an evaluation of the onboard diagnostic system (OBD), which is fairly self-explanatory. We basically look at the vehicle’s ability to diagnose itself and ensure that all the emissions equipment is working properly. Whenever you’re dealing with an aftermarket product that involves emissions, you have to make sure the OBD system remains functional.

The second aspect is tailpipe emissions, or what the vehicle produces while it’s running. The third is evaporative emissions. That’s what’s coming off the vehicle when it’s not running. At the SEMA Garage, we directly evaluate the first two—OBD and tailpipe emissions. Between our two lab locations, those comprise well over 90% of the cases that come to us.

Evaporative emissions testing is a little more nebulous at the moment. Our industry hasn’t had to do as much of it in the past, so SEMA doesn’t currently have that capability. However, it’s an area where we would cooperate with other laboratories that do. In such cases, we would establish the testing parameters to obtain the required data.

Vehicles carrying SEMA-member products acclimate as they await emissions testing at the SEMA Garage in Diamond Bar, California. SEMA’s emissions compliance program has been groundbreaking for manufacturers in developing products that embody today’s clean-air standards.

SN: What about staffing? We imagine that’s a consideration in launching the new SC-E program.

PT: Yes, definitely. Our emissions compliance center already has an experienced staff that has been assisting members with CARB EOs for the past eight years. We’ll continue to leverage that staff for SC-E because the work is comparable to what it’s currently doing. In addition to that, we’ll expand our engineering staffing, which will be principally responsible for evaluating a product, examining the test data, and writing up or documenting the justification for the certification. So there will be added staff behind the scenes, so to speak.

SN: Can you help us picture that documentation? What will it look like and where will it reside?

PT: We’ll produce an official, two-page document that will be all locked down and available via our website and in printable form. The certificate will include a description of the product and everything pertaining to its certification that anyone who’s interested needs to know.

In addition, the member company will also receive a test report to keep in its possession. This report won’t be made available to the public. The applicant or manufacturer can share it however it chooses, but it’s really intended for EPA purposes. If the EPA has any questions, a company can whip out this report to demonstrate the reasonable basis for its product’s compliance. It provides all the justification that’s necessary.

Finally, we’ll have a small label available that a manufacturer can ship with its product. That will carry basic information about the certification. It will also have a QR code so that any technician who’s doing a smog check can scan it and see the public certification document on our website. This way, a manufacturer’s customers can also have confidence in the products they install on their vehicles.

SN: It seems this program covers all the bases. Before we wrap up, are there any closing thoughts you’d like to emphasize?

DG: I would underscore—and you’ve probably already picked this up as a theme—that SEMA is addressing the changing emissions landscape. The fact is that enforcement against our industry is now a way of life. Manufacturers and companies that want to continue in the performance parts arena have to recognize this reality.

SEMA is here to help, and we’re creating a pain-free program to do so. It’s not like dealing with the government but rather our outreach to SEMA members to give them the certainty they desire. It offers the ability to go to market pretty much as quickly as their R&D allows. That’s our goal here.

PT: I also like to characterize SC-E in terms of its benefits to our members. Dave just mentioned the faster path to market and, really, a faster path to a compliance demonstration. A second benefit is that we’re providing clarity for the industry on what constitutes “reasonable basis” for the EPA. That’s been ambiguous up until now. EPA documentation offered guidance but didn’t provide a path.

BluePrint Engines was among the first SEMA-member companies to secure a SEMA Certified-Emissions certificate. Manufacturers that pass certification receive both public documentation and a detailed private report that they can present to regulatory officials as needed.

The EPA doesn’t have its own certification program, so we’re basically creating one for the industry. It will deliver credence to a claim of EPA compliance and the term “49-state legal.” In the past, that terminology has sometimes been very loosely applied or even misused. We’re clearing up the situation.

Finally, there will be some product types that simply won’t fit the CARB EO program. Our program will provide a path to emissions compliance for those products as well.

SEMA Certified-Emissions (SC-E) Fast Facts

• Since 2014, the SEMA Garage has been instrumental in helping automotive aftermarket parts manufacturers obtain California Air Resources Board Executive Orders.
• With state-of-the-art, CARB-recognized testing equipment and dedicated expert staff conducting tests and assisting with the process, the SEMA Garage has helped association members secure more than 500 CARB EOs. That represents more than half of all performance-parts EOs issued by CARB.
• The new SC-E program is comparable to CARB EO requirements and was developed in response to the EPA’s Tampering Policy.
• Members of SEMA staff are experts in assessing a manufacturer’s needs and advising the most appropriate path forward, including whether to apply for a CARB EO or SEMA emissions certification.
• The SC-E program may help manufacturers get their products to market about three months before obtaining a CARB EO.
• SC-E is also ideal for products that may not have a clear path in the CARB EO process (such as flex-fuel modifications, HCT-equipped intakes and engine packages).

SEMA News—April 2022

SEMA DATA

By Gigi Ho

SEMA Data Product News

The products featured below are from SEMA Data member companies that have attained Gold- or Platinum-level data, which means that their product data is robust and complete—likely to drive customer purchase decisions. SEMA Data members meeting data scorecard requirements are invited to submit product releases for consideration to enews@semadatacoop.org.

Bestop

Replace-A-Top for OEM Hardware

Replace-A-Top takes advantage of your still-good factory hardware and gives you all-new fabric and windows without having to replace your existing frames and hardware. It’s the most economical way to make your top look new again.

It requires factory original hardware and includes the soft-top fabric, window panels and door skins (where applicable). Some applications offer choice of clear or tinted windows. For appearance and durability, the premium fabric maintains shape in any temperature.

Information: www.bestop.com

PN: 51117-01

Vibrant Performance

Intercooler

All Vibrant intercooler assemblies are designed in-house and feature bar-and-plate construction as well as the louvered fin design on ambient air paths with the offset fin design on charge air paths that are found in the company’s line of intercooler cores. Each assembly also features cast-aluminum, TIG-welded end tanks with a 2.5- or 3-in. inlet/outlet (depending on intercooler size). Intercoolers include mounting brackets and hardware.

Information: https://vibrantperformance.com

PN: 12810

Rough Country

2.5-i.n. Jeep Lift Kit, ’11–’20 Grand Cherokee WK2

This easy-to-install kit features front and rear spacers to lift and level the vehicle for an improved look and enough ride height to run up to 33-in. tires. Features a 100% bolt-on installation process with no need to trim the factory studs, making it easy to improve the look of the vehicle. This kit is designed to retain the vehicle’s smooth, factory ride quality. Includes a lifetime replacement guarantee.

Information: www.roughcountry.com

PN: 63300

SEMA News—April 2022

INDUSTRY NEWS

SEMA Market Research: Supply-Chain Issues Expected to Ease by End of 2022

According to the latest “SEMA Future Trends” report, more than 80% of industry companies described having severe or moderate impacts in 2021 because of supply-chain disruptions, including production delays, shipping issues and higher prices.

The ongoing supply-chain disruption has had ripple effects throughout the global economy, including the specialty-equipment industry. More than 80% of industry companies reported having severe or moderate impacts in 2021 because of it, including production delays, shipping issues and higher prices. However, this year should be better.

SEMA Market Research projects that the most pressing issues with the global supply chain should improve in the second half of 2022. However, prices may remain elevated for longer and likely into 2023.

Want to learn more? Interested in seeing what the forecast is for the specialty-equipment industry moving forward? Download the new report entitled “SEMA Future Trends—January 2022.” In it, you’ll find:

• The outlook for the specialty-equipment industry in 2022 and beyond.
• Projections for the U.S. economy, including consumer spending, inflation and employment.
• The outlook on the global supply chain and input prices.
• A look at the changing demographics of consumers and what that means for the industry in the future.

Download the report today at www.sema.org/research.

SEMA Young Executives Network Announces Rebranding

The Young Executives Network, a SEMA group dedicated to cultivating talent in the automotive aftermarket, is now the Future Leaders Network (FLN). The new name more accurately reflects the network’s more than 1,140-person membership, which includes employees ranging from entry-level staff to managers, trade workers, executives and business owners.

“The network supports talent and individuals who are aspiring to further their careers in the automotive aftermarket,” said FLN Chair Nick Caloroso. “FLN will continue to offer programs and resources that will help members advance their careers.

“More than half of our members do not fall into the executives category, and although we will retain the age requirement, the word ‘young’ is relative and implies inexperience. Regardless of the individual’s role, each member is aspiring to become a more effective and productive leader in the industry.”

Since 1989, the network has evolved and grown. In addition to year-round virtual and in-person mixers and gatherings, FLN hosts education sessions targeted to up-and-coming leaders. FLN also introduced the Launch Pad product-pitching competition to support emerging entrepreneurs and business owners.

To learn more about FLN or to sign up to become a member, contact FLN Director Denise Waddingham at deniselw@sema.org.

Toyota to Build $1.3 Billion North Carolina Battery Plant

By 2025, Toyota will have the capability to produce lithium-ion batteries for up to 1.2 million vehicles per year at the company’s new battery plant in Greensboro, North Carolina.

Toyota Motor North America announced that Greensboro, North Carolina, has been chosen as the location for Toyota’s new $1.29 billion automotive battery manufacturing plant, to be named Toyota Battery Manufacturing, North Carolina (TBMNC).

When it comes online in 2025, TBMNC will have four production lines, each capable of delivering enough lithium-ion batteries for 200,000 vehicles, with the intention to expand to at least six production lines for a combined total of up to 1.2 million vehicles per year. The $1.29 billion investment made by Toyota and Toyota Tsusho is partially funded from a total investment of approximately $3.4 billion previously announced on October 18 and is expected to create 1,750 new American jobs.

“The future of mobility is electrification, and the Greensboro-Randolph Megasite is the ideal location to make that future a reality,” said Ted Ogawa, CEO of Toyota Motor North America. “North Carolina offers the right conditions for this investment, including the infrastructure, a high-quality education system, access to a diverse and skilled workforce, and a welcoming environment for doing business. Today marks the beginning of a mutually beneficial partnership with the Tar Heel state as we embark on our journey to achieve carbon neutrality and provide mobility for all.”

Longtime Auto Journalist Marlan Davis Passes Away

Veteran Hot Rod and Car Craft technical editor Marlan Davis passed away January 15.

Veteran Hot Rod and Car Craft technical editor Marlan Davis passed away January 15, 2022, from complications of pancreatic cancer. He was 66 years old.

Born in New York in 1955 and raised in Sherman Oaks, California, Davis was a recent graduate from Cal State Northridge with a degree in political science when a chance encounter between his father and Hot Rod publisher Dick Day landed him a job in the West Hollywood mailroom at Petersen Publishing Company in 1977. Despite having virtually no prior experience in either journalism or hot rodding, Davis eventually worked his way onto the editorial staff of Hot Rod. For the next 40 years, he informed and entertained readers of the magazine with his written and photographic work, first as associate editor and later as technical editor.

In his later years, Davis designed and built his own house in the California high desert, from whence he devoted himself to various automotive projects while authoring “Ask Marlan,” Hot Rod’s monthly technical advice column, before retiring in 2019.

SEMA News—April 2022

PEOPLE

Servant Leader

Three Decades of Helping the Industry Grow and Prosper

By John Stewart

After 30 years of service to SEMA and two decades as the association’s president and CEO, Chris Kersting retired, effective February 1.

Growing up in Ohio, Chris Kersting had five older brothers, “and they were all bigger than me,” he recalled. One morning as he played outdoors with the older boys swinging on vines, he fell and broke his wrist, earning a trip to the hospital. Returning that afternoon with a cast, he again joined his brothers, this time climbing onto a platform in an apple tree. When he got knocked off the platform, he broke the other arm and went right back for another cast. “I think the same shift was still on at the hospital,” he laughed.

It’s not everyone who breaks both arms in a single day. But it’s an incident which suggests that, from a young age, Kersting was never the kind of guy to be deterred just because he got banged up a little. That degree of tenacity was one of the qualities that became evident during Kersting’s 30-year service to SEMA. That service ended February 1 upon his retirement.

Looking back across those decades provides insights into a time of growth for the industry and the association—and into the nature of Kersting’s leadership.

Flash forward to 1989: Young Kersting had graduated from law school and was looking for work. At the time, Russ Deane was a partner in a law firm based in Washington, D.C., serving as general counsel to SEMA.

Paul “Scooter” Brothers, shown here in 2011, worked closely with Kersting on a number of projects, including the acquisition of the Performance Racing Industry organization. “We really enjoyed some of that stuff we got to do together,” Brothers said. “He’s just a special person. He was there when you had to recognize that it was a special time, you had to reach out and work harder, longer, stick your neck out more. And he did that stuff with the conviction that he knew he had everything in line to pull it off, and he always did.”

“I walked into an interview, sat down, and on the other side of the table was Russ Deane,” Kersting recalled. “I certainly didn’t know that this was the beginning of a road that would last 30 years, working with the companies and the great people in this industry. But that was a fateful day.”

Deane’s recollection of that interview is that he didn’t think he needed any additional help at the time and was unlikely to hire anyone. But after he met with Kersting, he changed his mind.

“What I saw was this innate talent, the intellectual capacity to think through things and deal with difficult questions—and deal with them in a very sophisticated fashion,” Deane recalled. “I said to my partners after the initial interview, ‘We’re hiring this guy.’”

Deane moved quickly to monopolize the time of young Kersting and began to load him with a wide variety of projects.

“Over the years, we dealt with very difficult issues involving a lot of complexity and a lot of technical detail,” Deane said. “Chris thrived on that, and over time, that became obvious to others—especially at SEMA.”

Russ Deane (left) hired Kersting right out of law school, circa 1989, when Deane was serving as general counsel for SEMA.

Revving Up the Washington Office

“After a period of time, it became clear SEMA needed its own Washington office to handle the onslaught of regulations confronting the industry,” Deane said.

“I enjoyed what we were doing,” Kersting recalled, thinking back to 1996. “I’d figured out that this was my passion. SEMA members were like David in front of these huge government Goliaths—the U.S. EPA [Environmental Protection Agency], NHTSA [National Highway Traffic Safety Administration], the California Air Resources Board [CARB], and all the state regulators. It was challenging, but we were making a real difference for the people in our industry. In the course of all of this, SEMA President Chuck Blum asked me to join the association as vice president of government affairs; it was a pretty natural transition.”

When Kersting came on as a SEMA employee, he found that he had his work cut out for him.

“Challenges in the legislative and regulatory arena were in many ways similar to today’s, but also different,” Kersting recalled. “We had federal issues, but the states were much more active then with unresolved safety regulations. I cut my teeth on federal lawsuits challenging the EPA’s proposed on-board diagnostic (OBD) regulations [work that ultimately secured the right for SEMA manufacturers to access and modify OBD programming]. Yet it was the state governments that were causing a lot of the grief for the SEMA marketplace.”

That required SEMA to build out a monitoring-and-response capability in all 50 states—no simple task in the pre-internet era.

Deane recalled that time: “Noise control was a big deal. In California, the cops would use noise control as a way of harassing hot rodders. We faced similar issues with raised and lowered vehicles and a range of lighting issues. Chris and SEMA’s D.C. team lined up a reliable monitoring network and basically went state to state to convince lawmakers to adopt SEMA’s model regulations.”

They launched a grassroots partnership with car clubs and enthusiasts nationwide (the SEMA Action Network) to raise a voice to support the industry’s efforts—things that really gave the industry the chance to grow.

During those days, Kersting became more visible in the association, regularly attending SEMA board meetings.

“They got to know him and his capabilities,” Deane said. “He demonstrated all the characteristics that most people would find important in a CEO.”

After a time Kersting was asked to become a SEMA vice president and run the Washington, D.C., legislative affairs office. Kersting, shown here with then-president Chuck Blum (left) and race-car driver Dale Jarrett (right), was instrumental in setting up the lobbying opportunity for SEMA members that later became the Washington Rally.

Entrepreneurial Man in the Middle

Kersting took the handoff from Blum in 2002. As SEMA’s president and CEO, he found himself managing a growing professional staff located in Diamond Bar, California, and serving at the pleasure of the board of directors, which turned over every few years. It meant that he had to work closely with the chairman of the board, the board members themselves, and also maintain a strong relationship with his own team in the Diamond Bar headquarters.

“That’s a tough position, being in the middle,” said Nate Shelton, who was the first board chairman Kersting worked with when he assumed the CEO leadership role. “He was always really good that way. He knew that his job was not necessarily to handle us but to put in place the things we asked him to do. And that’s really hard to find in somebody.”

Shelton was one of 10 different chairmen Kersting worked with spanning his 20 years as CEO. Corky Coker was another.

Even before he joined SEMA, Kersting worked with Deane for clients that included the National Hot Rod Association (NHRA). He became fast friends with many NHRA directors, including founder Wally Parks (right).

“I got to know Chris very well during those early years,” Coker said. “I have always admired his energy, his integrity, his commitment to his family, and his love for whipping things up to a place of success. Despite the fact that he has been for these 30 years a ‘recovering attorney,’ he still has always had an entrepreneurial energy and sense about him.”

Shelton, who served in two different decades as SEMA board chairman, had the opportunity to witness Kersting’s bent for business across a lengthy period of board service. He saw Kersting taking up opportunities and seeing them through.

“I thought he was very sharp, really a bright guy, to the point where he could make choices and decisions,” Shelton said. “I thought he was very good at that. He wasn’t puffed up—and he didn’t think that just because an idea wasn’t thought of here, it wasn’t any good.”

“Chris was involved when we started the SEMA Garage,” Shelton said. “We recruited [SEMA Interim Co-CEO] Mike Spagnola, who was finishing up on the board at the time, to head that one up. Chris was also on the forefront of buying PRI [Performance Racing Industry]. I was chair-elect, and Chris was really instrumental in accomplishing that.”

Kersting remembered that time vividly.

The first chairman to work with CEO Kersting was Nate Shelton (left), who served two terms as chairman many years apart. Next came Corky Coker (center) who recalls working so smoothly with Kersting that “we could finish each other’s sentences.”

“I became aware that there might be an opportunity with PRI,” he said, “but the matter needed to be kept confidential.”

Kersting worked closely with then-Chairman Paul “Scooter” Brothers, who arranged the initial meeting.

“Having Scooter involved as chairman at the time and tapping the relationships he had on the racing side, that was a key factor,” Kersting recalled.

When the time was right, the two brought the opportunity to the larger board, and eventually a decision was made.

“It took us about a year, but we ended up buying it,” Brothers said.

Next, it became apparent that it would be ideal if the PRI Trade Show could move from Orlando, Florida, back to Indianapolis, relieving the racing community of the need to attend two similar trade shows just weeks apart. The Indianapolis show, known as IMIS [International Motorsports Industry Show], had become a legitimate competitor to the PRI Trade Show by that time.

“Chris and I went to Indy and met with the IMIS owners, and we ended up putting that together,” Brothers said.

Then yet another obstacle arose: “Moving the PRI Trade Show back to Indy was the easy part—the hard part was moving it without financial setbacks for leaving Orlando,” Brothers said. “Chris did all the behind-the-scenes stuff that had to be done, and the fact that he is an attorney probably kept me out of trouble, because we were spending a lot of somebody else’s money. So this is Chris Kersting, who has this ability to look into the future and say, ‘There’s an opportunity,’ and to go get it done.”

To hear Kersting tell it, the ability to foresee problems and opportunities came with his vantage point as SEMA’s CEO.

“It afforded me the chance to see and collect a lot of information as the association went about its work,” he said. “We had a great team of colleagues at SEMA and on the board who were doing the same thing.”

True enough, but perhaps just as important was that the people he was in touch with trusted him, even with information that had to remain strictly confidential. Then too, he was very good at connecting the dots.

“It was important to sift through the information to see what challenges and opportunities were apparent there,” he reflected. “This helped us to conceive and deliver innovative services such as the SEMA Garage, the emissions lab and certification assistance program, and the SEMA Data Co-op [now known as SEMA Data].”

Scooter Brothers put it this way: ‘The board was his boss, but Chris was the one who stayed out in the marketplace and was able to recognize an opportunity, bring it back to the board, and let the board think it was their idea.”

Kersting supported 10 different board chairmen during his tenure as president and CEO; among them were (left to right) Nate Shelton, Wade Kawasaki and Doug Evans.

Evolving the SEMA Show

One of the important developments during Kersting’s early years was the expansion of the SEMA Show beyond the walls of the exhibit halls.

“We stuck our necks out a bit with that one,” Kersting remembered. “The cardinal rule was that you didn’t take buyers off the Show floor, you didn’t take them away from the exhibitors.”

Many in the industry were adamant about that, but Kersting persisted and was ultimately persuasive.

“We began adding opportunities around the perimeter of the Show for the industry to celebrate the automotive culture,” recalled Wade Kawasaki, a past chairman who has known Kersting for more than two decades. “In the boardroom, that was a very bold stance for Chris to take, and it’s one that has benefited us in amazing ways over the years.”

A particularly big moment came when DUB Co-Founder Myles Kovacs proposed a DUB event outside the South Hall. When Kovacs faced stiff board headwinds on the matter, Coker recalled that “Chris just made sure everyone was heard and continued on, showing that the more we bring to the Show and the more we make this thing bigger, badder and better, the more the buyers will show up.”

“We were a team that was inspired to make changes,” Kersting noted. “Bill Miller [SEMA interim co-CEO], Peter MacGillivray [previous SEMA vice president of events], Tom Gattuso [SEMA vice president of events]—these were talented instigators and facilitators for these changes.”

Paving the way for later additions such as SEMA Cruise, SEMA Ignited, Battle of the Builders and Launch Pad, the Show today provides platforms in a digital world that allow people to share the industry’s incredible automotive content with enthusiasts all over the planet.

“That attracts a lot more young people, “Kawasaki observed, “and that’s a really important thing to do to keep our industry viable.”

In the end, Kersting observed, “Breaking the old rules allowed us to take the SEMA Show from being a highly valued business-to-business market event to also becoming a mecca for automotive culture.”

Very much in his wheelhouse at the Washington Rally, Kersting (center) and Russ Deane (right) enjoy a moment with Rep. Bill Posey (R-FL).

Growth and Challenges

Kersting had the good fortune to lead across a period of growth and opportunity for the automotive specialty-equipment industry, but he also led through times of difficult challenges.

Through any given time, there is a multitude of factors that lead to progress, including hard work by numerous individuals at all levels, but there is no question that Kersting’s time with the association marked a period of rapid growth for both the association and the industry.

Association membership, just a tad over 2,400 when Kersting started, grew steadily during his tenure and tops 6,463 member companies today. The industry as a whole expanded from $15 billion in 1994 to $48 billion as of 2020, and notably, the SEMA Show enjoyed conspicuous growth during his tenure.

“It’s a delicate tightrope for a leader who works for companies governed by a board of directors,” Coker observed. “But Chris did bring us into making our event a worldwide draw.”

As leader of the SEMA staff, Kersting made it policy to carve out employee-appreciation events, where he and the leadership team would wash the cars of other employees, or cook up parking-lot picnic lunches. At the car wash event, a water-balloon war was certain to break out.

On the challenges side: “When 9/11 hit us, we had to make a big decision, because there were a lot of people who didn’t want to have the Show,” Shelton recalled. Ultimately, the Show went on, even though air travel was restricted and attendance was lower than usual. “But it built up every year after that—and it just kept growing and growing. I think that had a lot to do with Chris and what he did for SEMA.”

Another period of challenge came in 2008, when the Great Recession took hold. Jim Cozzi was chairman at the time and recalled the situation.

“It was an unprecedented time for the auto industry, the organization and the Show,” he said. “We just didn’t know what was going to happen. Up until that point, I don’t think SEMA ever had to go into a budget cycle and make cuts—but we did then. And we helped the industry get the SEMA Show accomplished over a couple of tough years. Those were difficult times for Chris, myself, and everybody on staff. But he did what he had to do, and it was best for the association.”

These early trials were good preparation for what would come later: a pandemic the likes of which the modern world has never known. As SEMA Vice President of Events Tom Gattuso noted, the job of president and CEO “takes on a different life during times of turmoil, and coming out of 9/11, getting through the financial crisis, [holding a Show] 30 days after the shooting at Mandalay Bay, going through COVID and having to cancel the Show for the first time in 54 years-—those are the types of things where Chris really had to take the things he had learned and lead the association through them.”

The COVID pandemic, in particular, created huge challenges for the industry and especially trade shows, including SEMA and PRI. As convention venues shut down in 2020 and large, in-person gatherings became impossible, the association staff quickly shifted toward creating a virtual meeting place to serve SEMA members’ needs. That effort may have worked for some people, but not the vast majority of SEMA members, who have come to rely on face-to-face meetings to do business.

The following year, with COVID restrictions reduced, a successful Show was held in Las Vegas, but not without coping with numerous unknown variables and shifting circumstances.

“In the weeks leading up to the 2021 Show, we had to remap the floor every night,” Gattuso recalled.

In order to accommodate changing plans among exhibitors and vendors, new foot-traffic patterns and safety precautions had to be developed.

“Producing a Show in 2021 in Las Vegas and following that up with PRI, those were two of the most challenging experiences we’ve ever had,” Kersting recalled.

But in the end, buyers and sellers had the opportunity to meet face to face once again, and the SEMA Show turned out to be the largest and most successful trade show gathering in America during the pandemic.

Over the years, Kersting was an advocate of adding lifestyle features to the SEMA Show, like the SEMA Cruise. The result was greater public awareness of the automotive aftermarket, and increased attendance at the Show.

Executive Leadership

Among the staff and others in the industry, Kersting is thought of as an exceptionally hard-working, well-prepared executive who is capable of grasping the big picture and fine detail at the same time. Gattuso put it this way: “The thing about Chris is that he’s got his finger on the pulse of every business unit that we have. Because of that, you might think he doesn’t understand your business unit until you’re in a meeting with someone and he explains it better than you could have explained it yourself. I came to SEMA with 15 years of experience doing events. Chris is not an event guy by background, but he understood how events work, how they can be successful, and he became someone I realized I could learn from.”

Kersting has also been described by more than one associate as a servant leader.

“Chris is a pretty humble guy,” said Spagnola. “Humble in nature, he makes sure everybody gets to share in the glory.” Recalling that the vast majority of SEMA-member companies have fewer than 10 employees, Spagnola observed, “Chris is always looking out for the little guy and making sure he gets a fair shake. He always thinks, ‘What would our members want?’”

SEMA Interim Co-CEO Bill Miller is among those who has worked for Kersting for more than a decade.

A devoted husband and father, whenever possible Kersting brought his wife Lisa and their two daughters along for events that required him to be away from home.

“Chris was the epitome of a great player-coach,” Miller said. “As leader of the team, he set the tone and articulated the ‘what’ and ‘why’ messages better than anyone I know. Then, when needed, he’d be there in the trenches, working alongside us creating opportunities, solving problems and delivering benefits to our members.”

And then there is Kersting’s way of motivating staff and inspiring commitment.

“With Chris, we see this passion for what he does,” said SEMA Councils and Membership Vice President Nathan Ridnouer. “It’s not just that he doesn’t give up, like a bulldog, it’s that he loves it. He loves every conversation. He loves the nuance of it. He doesn’t just check the box to call something ‘done.’ I have never seen him check the box and not care. Chris has been an approachable leader whom people also look up to.”

Outside of work, Kersting is an avid back-country guy, enjoying all endeavors involving a dirt trail. At 60, he’s still on the steeps weekly with his mountain bikes, and to replenish the calories, he is an experienced brew master, crafting beer at home since 1987.

“I have friends who enjoy sending me pictures of themselves when I am out of town, standing at my patio brew tap and pouring themselves a cold beer,” he said.

Those friends may have a harder time raiding Kersting’s kegs now that he will have more time at home and hearth. He has been married to wife Lisa for some 35 years, and they have two daughters, now grown and out of the house.

“It gets tough for a man in his position,” Cozzi observed. “But with Chris, his family was always first—Lisa and the girls. I guess it might not seem that way from the outside, but I spent a good portion of two years with that guy.”

Kersting would be the first to credit Lisa for her support over the years, when he worked long hours and spent many days on the road developing opportunities and guiding the association.

Kersting with SEMA Chairman James Lawrence (second left), SEMA Chair-Elect Kyle Fickler (second right) and SEMA Immediate Past Chairman Tim Martin (right) at the 2021 SEMA Installation Gala.

Kersting’s tenure as president and CEO was completed at the end of January, and he has transitioned into an advisory role through July 2022. SEMA executives Bill Miller and Mike Spagnola serve as interim co-CEOs as the association moves to select a new president. Both have broad experience and extensive contacts, logging many years in the association serving the industry.

“The selection of the new president is going to be really tough,” Brothers observed. “Chris was the perfect man at the perfect time who took SEMA from almost a club to something that now has serious international clout. In a relatively short period, it changed from a good guys little network and grew and grew to something that is now run like a real business and has pretty good assets—and a pretty good chance to move to the next level.”

Many board members, past and present, look back on the association’s years of growth with appreciation for Kersting’s efforts. Current Chairman of the Board James Lawrence put it this way: “Over the past 30 years, Chris has lived his life dedicated to making an impact in the automotive aftermarket. SEMA and the entire automotive aftermarket are lucky to have had someone as talented at the helm. There were many situations over the years that needed his steady hand, through emissions challenges and economic headwinds. In recent times, Chris successfully worked with the SEMA board to start the process of transforming the association into being more consumer-focused, and he supported both the PRI acquisition and the drive toward supporting the motorsports community through the PRI association. Chris retires having left quite a ding in the automotive universe.”

SEMA News—April 2022

BUSINESS

Truck and Off-Road Market Trends

Consumer Demand Continues for Pickups and Crossovers; Overlanding Remains a Growth Sector; Electrification Continues Apace

By Douglas McColloch

A resilient market sector, off-roading remains a popular automotive pastime. That’s never been more true than in the Age of Social Distancing. Land-access issues continue to pose a challenge for the future, however. Photo courtesy: Shutterstock

Consumer trends and preferences have changed many times over the years, but in the automotive sphere, pickups never really fall out of fashion. They’re the ideal multipurpose vehicles that are equally functional as daily commuters, jobsite workhorses or recreational trail toys. For sheer versatility, nothing compares to them on the road and off, and that’s probably why the bestselling vehicle in the United States for more than 40 years in a row has been a pickup.

More than half of all vehicles on the road in the United States are either pickups, SUVs or CUVs. According to the most recent issue of “SEMA Future Trends,” the light-truck segment (which includes pickups, vans, SUVs and CUVs) is forecast to account for close to 80% of all new-vehicle sales by 2027, with pickups alone making up nearly 50% of all new vehicles sold.

Healthy truck and SUV sales generally bode well for the automotive aftermarket. Parts and accessories for trucks and SUVs account for 30% of specialty-equipment sales, according to the latest “SEMA State of the Industry” survey, and that number has remained steady in the midst of the pandemic and its related economic disruptions. In fact, several segments saw appreciable sales increases over the previous year, with suspension, wheel and tire products all registering double-digit sales gains over 2020. Some segments—truck racks and carriers, bedliners and bed covers, and towing products—logged year-over-year sales gains of 25% or more. Off-road/oversize tires alone comprise a $2 billion annual market, so there is still ample consumer demand to keep the truck and off-road segment strong, even amidst a global pandemic.

New-vehicle sales in 2021 remained relatively flat compared to 2020, with an estimated 14.9 million units sold—a 2.5% increase over the previous year, according to Cox Automotive. Shortages of semiconductors kept inventories low for most of the period, and the year ended with roughly 1 million units on dealer lots, down from 3.5 million in pre-pandemic 2019.

More promisingly for the truck and off-road segment, pickups, SUVs and crossovers represented more than 80% of all new-vehicle sales in the month of December, according to J.D. Power & Associates. For the year, the top three best-selling vehicles in the United States were ½-ton pickups from Ford, Ram and Chevrolet, and seven of the top 10 U.S. best sellers in 2021 were either trucks, SUVs or crossovers.

For this article, we consulted a number of industry leaders for their perspectives on the overall state of the marketplace. What follows is a summation of their views.

Ten years ago, smaller midsize pickups were an afterthought. Now, with fuel prices higher and a new generation of truck buyers shopping on a tighter budget, vehicles such as Ford’s Maverick have been gaining popularity and market share. Photo courtesy: Ford Motor Company

New and Notable for 2023

A number of new trucks, SUVs and crossovers are set to hit the market within the next 12 to 18 months, including many all-electric and hybrid-electric models. Among them are:

Chevrolet

Avalanche: Based off GM’s T1 global chassis architecture, the all-new, four-wheel-independent Avalanche revives a discontinued marque as Ford has done à la the Maverick. The engine could be the 360hp 5.3L V8 that’s standard in the Silverado line or the optional 6.2L that produces 420 hp. An eight-speed automatic transmission is the likely standard gearbox, and MSRP should start around $30,000.

Colorado: The third generation of Chevy’s midsize will feature all-new exterior and interior styling as well as a revised powertrain lineup. The 310hp 2.7L LB3 turbocharged I4 sourced from the Silverado/Sierra ½-ton is the expected base engine, and it should be backed by a 10-speed automatic transmission. The I4 Duramax diesel and 3.6L V6 gas engine are said to be discontinued, and the truck should be available for sale by the second half of 2022.

Silverado EV: Chevrolet’s first all-electric pickup arrives for the ’24 model year sporting 660-plus hp, 400 mi. of range, a standard 6-ft. bed that can be extended to more than 10 ft. in length and a 10,000-lb. tow rating. The truck is said to share no componentry with the conventional Silverado, and an 800-volt charge capability is said to give it 100 mi. of range in only 10 min. Base MSRP will be around $40,000, though a fully optioned RST model may exceed six figures.

Ford

F-150 Lightning: First unveiled in May 2021, Ford’s first all-electric pickup comes to market delivering an estimated 563 hp, 775 lb.-ft. of torque and a 10,000-lb. towing capacity. Annual production was initially projected to reach 80,000 units by the ’24 model year, but demand was so strong that Ford was forced to stop taking preorders after receiving an initial 200,000 reservations for the truck. Originally set to launch last October, the vehicle is now set to officially go on sale this spring.

Maverick HEV: Slotting below the Ranger in the Blue Oval pickup line, the four-door Maverick HEV rides on the same unibody chassis as the Bronco Sport and Escape and is available in all-wheel drive. With a base-model MSRP below $20,000, demand for the small truck far outstripped projected factory output, and Ford announced last December that the truck’s initial production run was fully sold out for the 2022 calendar year. Preorders for ’23 will resume this summer.

Ranger: The new global-architecture Ranger replaces the eight-year-old Australian version that arrived here in somewhat revised form in 2019. The new model features all-new styling, an upgraded interior and a more refined ride. The base 2.0L twin-turbo powerplant is expected to carry over, with the 10-speed automatic transmission the likely gearbox. Ford has promised an electric Ranger in the not-too-distant future, so an all-EV or HEV model could be forthcoming. Base price is estimated in the mid-$20,000s.

GMC

Hummer EV: General Motors’ first all-electric pickup sports 1,000 max hp, a 300-mi. cruising range and an MSRP of $106,000. (Less expensive models will be available for 2024.) The truck will utilize four-wheel independent suspension with locking front and rear differentials and 35-in. mud-terrain tires. Air suspension and “CrabWalk” four-wheel steering are available options. Production begins in spring 2023.

Nissan

Frontier: The third generation of Nissan’s midsize will launch for 2023 with an all-new exterior, a more luxurious interior, and an upgraded suspension system. The 310hp 3.8L V6 will carry over from the previous year, along with a nine-speed transmission. Both Pro-X and Pro-4X models will be offered. The truck utilizes the existing chassis, so no gas-electric hybrid model is expected.

Titan: Mostly unchanged since its 2004 debut, Nissan’s fullsize emerges for 2023 with a more aggressive look, thanks to all-new sheetmetal and a substantially revised interior. The aging 400hp 5.6L V8 is said to be replaced by the more fuel-efficient 400hp 3.0L V6 sourced from the Infiniti Q60, which could also be offered with a hybrid-electric option. Given Nissan’s rumored partnership with EV startup Hercules Electric, an all-electric variant is a possibility as well.

Rivian

R1S: Fresh off the launch of its award-winning R1T electric pickup, Rivian is scheduled to roll out a seven-passenger, three-row SUV based off the same platform as the pickup. Slotted to compete against the Tesla Model X, the R1S offers an estimated 800 hp, a 0–60-mph time of 3.0 sec., 300 mi. of range and an adjustable air suspension that is said to provide as much as 14 in. of ground clearance. Estimated MSRP is around $70,000.

Subaru

Solterra: A joint venture with Toyota (which provided the battery and powertrain), the five-passenger Solterra is Subaru’s first-ever all-electric SUV. Two electric motors power the symmetrical X-Mode all-wheel-drive system, which controls throttle response, transmission shift points and torque transfer to optimize traction on wet or uneven terrain. Rated power for the Solterra is 215 hp and 248 lb.-ft. of torque, and the battery is said to accept an 80% charge in under an hour.

Scheduled to go into production early next year, Tesla’s highly anticipated 2023 Cybertruck is the latest example of the rapid electrification of the pickup sector. Photo courtesy: Tesla

Tesla

Cybertruck: Perhaps the most anticipated new truck arrival for 2023, Tesla’s stainless-bodied all-electric Cybertruck goes into production early next year at Tesla’s new assembly plant in Austin, Texas. Available with built-in solar charging to extend vehicle range, the Cybertruck will be offered in three trim levels, in rear-wheel or all-wheel drive, and with dual- and tri-motor drive configurations. Zero-to-60 acceleration is said to be as low as 2.9 sec., cruising range as much as 500 mi., and base MSRP an estimated $40,000.

Toyota

bZ4X: Short for “Beyond Zero,” Toyota’s first all-electric EV launches, along with its upscale companion, the Lexus RZ 450e, later in the year. A joint venture with Subaru (see Solterra above), the bZ4X will be available in either front-wheel or all-wheel drive and will offer a cruising range of up to 250 mi., opting for affordability at the expense of range. The Lexus variant, which shares the same TNGA global chassis architecture, will offer a more luxurious interior package, extended cruising range, and a heftier price tag.

Grand Highlander: Essentially a longer-wheelbase version of the Highlander, Toyota’s new three-row will slot above the Highlander and below the Sequoia in Toyota’s SUV lineup. Powertrains are likely to be the Highlander’s existing 3.5L V6, which produces 295 hp, and a 2.5L four-cylinder HEV. A diesel-electric hybrid may be offered at a
later date.

Tacoma: Redesigned for 2023, Toyota’s midsize is expected to sport a new coil-link rear suspension to deliver a more supple on-road ride, along with exterior styling cues taken from the all-new Tundra. The 3.5L V6 may be replaced by a version of the more fuel-friendly 275hp 2.4L I4 that’s used by the Lexus NX350.

Tundra: Largely unchanged since 2007, Toyota’s fullsize reemerges for 2023 as an all-new model. The gas-hungry iForce V8 is said to be going away in favor of a more economical 3.5L V6 that can be tuned to produce as much as 430 hp. A luxury “Capstone” model will feature 22-in. wheels, a 580 lb.-ft. hybrid-electric powertrain, and a price tag in the $60,000 range.

The State of The Industry: Pent-Up Demand, Record Growth

All of our industry experts agreed that the state of the truck and off-road market is robust, with opportunities for additional growth available through numerous
channels.

“The industry is still very healthy,” said Ted Wentz, CEO of Quadratec. “The entire industry experienced massive growth during the pandemic. We undertook years of growth in a period of around nine months.”

“There aren’t a lot of new cars entering the market anymore,” said Jenna Jefferies, national account manager for Pertronix Performance Brands. “We’re backordered for months on end—and growing, growing, growing.”

On a related note, PSC Motorsports COO Randall Speir noted the many new truck and SUV models, such as Chevrolet’s Colorado Trail Boss and Ford’s Ranger Raptor, that are more off-road-friendly in design than their predecessors.

“We have new entrants in the market, with Ford coming in and Chevrolet with some new things, and now Rivian,” he said. “We’ve got lots of new off-road-focused vehicles coming into the market, and that’s great, because they give us platforms we can use to make cool products for them.”

All of our experts similarly agreed that the combination of pandemic lockdowns, corporate work-from-home directives and government stimulus checks contributed to the growth of the sector.

“People wanted to get outside, and they had time on their hands to go outside with their vehicles and have fun with their families, so that played a big part in it,” Speir said.

“At the beginning of the pandemic, there was a bit of a growth in replacement parts as people were just trying to keep their vehicles running and didn’t necessarily feel comfortable going to shops,” Wentz said. “Now we’re seeing growth in categories that support an outdoor lifestyle.”

From a business perspective, the pandemic also gave many companies a chance to reevaluate and reassess their existing sales and marketing models and to make adaptations to changes in the marketplace.

“With the pandemic, everybody had an opportunity to sit down at their desks, take a breather, think about what they could do differently, and now they’re bringing great things to market,” said Charlene Bower, owner of Bower Motorsports Media. “As business owners, we’ve all had a chance to review what we’ve been doing and see what we need to continue and what we need to redevelop—from services to products to everything in between.”

Perhaps because of that, she added, “I saw more innovation at the 2021 SEMA Show than I have seen in years.”

Digital Resources: The New Media Landscape

The COVID-19 pandemic posed a unique challenge for businesses that rely primarily on a retail presence: How do you reach your customers when they’re sheltered at home? For the truck and off-road aftermarket, the answer was online content and social media.

Besides running her own media company, Bower also heads Bower Academy, an educational program that provides hands-on instruction for women in subjects ranging from off-road driving and vehicle maintenance and repair to principles of Tread Lightly! and other topics. When the pandemic hit and indoor hands-on learning wasn’t feasible, “I took a nap for two weeks to think about what I could do differently with my business,” she said.

“I rotated all my educational programs online as opposed to being in-person. We have online classes now through Bower Academy, which includes how-to classes, and I was able to turn my backyard into an area where girls can learn and train.”

Along with providing online content for customers, many companies learned to leverage the power of social media to maximize consumer outreach.

“While face-to-face and meeting at events are the best ways to interact with customers, social media is an extension of word-of-mouth with photos,” Speir said. “People want to be a part of something, so it’s great that we have a social network and that we have Facebook Groups and things that are around our industry. It’s becoming a big part of promoting our brand.”

Social media is huge, Wentz agreed. “It’s another touchpoint to communicate with your customers and to create a community,” he said. “As the younger generations move up in the workforce, they’re generating capital, and they’re ready to go have some fun with their vehicles. If you want to communicate with those folks, you need to find a way to do so in the channels they’re comfortable with.”

While acknowledging social media’s brand-building potential, Wentz also offered a word of caution when dealing with a form of media that’s still rapidly evolving.

“TikTok is big right now, and for now, that’s the big growth channel,” he said. “What we tend to see with these new social-
media outlets is that sometimes they go up in popularity really quickly, and sometimes they stay popular and sometimes they don’t. You have to be cautious about how you invest in these things and make sure you don’t overcommit to something that isn’t going to be around tomorrow.”

Bower took a similar outlook, preferring to stick with a proven platform.

“It’s a great way to get free exposure,” she noted. “But it’s also very volatile, with a lot of political issues that have caused us to drop a lot of people on social media. If you don’t have a great marketing case, social media isn’t always the best way to reach people,” adding that “I’m a Facebook girl.”

One form of content that our experts agreed has proven effective is event coverage.

“When we post to social media, it’s always the events and videos about events that get the most response,” Speir said. “People were really hungry for that—the desire to see people out there, utilizing their vehicles, and be a part of that even if they can’t get out themselves.”

Outdoor Lifestyles: Opportunities for Growth

On the subject of events, Bower exclaimed that crowds are coming out to the races again.

“The crowds at Crandon [International Off-Road Raceway] for the World Championships were the biggest they’d ever been,” she said. “I know there are still some challenges with crowd capacity, but as time continues, we’ll see racing fans coming back because they’ll realize what they’ve been missing.”

All of our sources also agreed that the steady popularity of overlanding remains a bright spot in the market. First popularized in Australia, the hobby caught on quickly in South America and Sub-Saharan Africa before catching fire in North America, where it has grown exponentially over the past decade and a half.

Due to its overlap with numerous outdoor lifestyle activities, it’s difficult to measure overlanding’s market growth precisely in dollars and cents. However, the global adventure tourism market—which includes camping, hiking, mountain biking, kayaking and other pursuits that are closely associated with overlanding—enjoyed a boom in the 2010s and is forecast to grow in value from $112 billion in 2020 to $1.17 trillion in 2028. The 30-to-40 age demographic is the most heavily invested in the market, according to a recent report by Allied Market Research.

One element that’s possibly contributing to overlanding’s growing popularity is its inclusivity. While it’s certainly possible to spend a great deal of money to outfit a vehicle for overlanding (some adventurers will spend upward of six figures on their rigs), it can also be done on a reasonable budget. One need not possess a heavily modified trail machine. In fact, a Subaru Crosstrek or a Dodge Sprinter cargo van can be converted into a capable backcountry explorer with just a few basic modifications, including more aggressive tires, upgraded shocks, some extraction equipment, and an assortment of camp gear.

“It’s not just overlanding,” Wentz said. “It’s whatever you can use on your vehicle to enjoy being outside. Overlanding’s a part of that, sure, but anything to do with biking or hiking or fishing [is becoming popular]—any of those things you can do outside and that allow you to accessorize your vehicle to help achieve that.”

“We’re also seeing some movement in the crossover segment—Subarus for one—and that is bringing new customers to our industry.” Speir said.

That said, overlanding is still a huge deal, Jefferies said, noting that the Jeep market is still going, and the Bronco market is taking off.

“Work-from-home options during the pandemic gave people the opportunity to go adventure while still being successful at their businesses, and I see that trend continuing going forward,” Bower added.

Still a promising growth sector, overlanding remains a hot consumer segment, and accessories that can convert SUVs and crossovers into “outdoor lifestyle vehicles” are an additional market driver. Photo courtesy: Shutterstock

Future Challenges and Opportunities

Nearly all of our experts said that staffing issues pose the greatest potential obstacle to growth in the short term.

“Right now, the labor shortage is a real problem,” Wentz said. “I’ve never seen anything like it.”

Speir agreed. “We’re not finding enough people who want to work,” he said. “The pandemic may have changed the way some people feel about life and changed their priorities, and that may have had an effect on the job market. Hopefully, we’ll see some additional influx into technical schools where kids are actually working on vehicles and falling in love with working on them, and that will refresh out talent pool. Getting involved in educating the future of our industry is a tremendous opportunity.”

Jefferies concurred, adding that it’s crucial to get the youth involved in the market.

Supply-chain issues also pose an ongoing challenge, although Wentz sees signs of improvement in the not-too-distant future.

“I’m seeing some signs that there could be some normalization coming at some point in 2022, but I think we’re going to have to ride this supply-chain issue for a while,” he said. “It’s definitely a challenge.”

A further potential problem facing the off-road side of the market is maintaining access to public lands.

“That’s one of our biggest issues at the Truck & Off-Road Alliance,” Speir said. “We must make sure that people take care of the land and that we don’t lose our access.”

For companies and individuals wondering where they should target their resources, Speir noted that the greatest progress with land use will be at the state level.

“I think that’s really where we’re going to make the most impact, and that’s our focus right now,” he said.

Bower uses her experience as a master trainer for Tread Lightly! to promote responsible off-road practices.

“Land use and land access are very important now,” she said. “Education is the key element to helping people understand what we need to do to be responsible recreationalists to keep our trails open. From a business perspective, none of us would be standing here if we didn’t have trail access, and from the consumer and overland perspective, we can’t get out there if we don’t have trails open. It should be everybody’s position to get behind these initiatives and make sure everybody is doing a great job.”

Jefferies also noted the rapid growth of electrification in the truck sector and the need to keep up with the latest OE technologies.

“I think EVs are a huge thing that we’ll need to get adjusted to, and that will require adaptation by our industry,” she said.

More than 1.2 million HEVs or EVs were sold in the United States in 2021, a 75% increase over 2020 and a combined 8% of all new-vehicle sales. Still, our panel believes that the foreseeable future is still relatively bright for the industry. Wentz offered this advice for businesses looking to increase their market presence in the coming year:

“From an opportunity perspective, the industry has acquired more customers over an 18-month period than it has ever had before. What are we going to do with those customers? What are we going to innovate for them? What are we going to do to keep them interested in our brands? Those are the kinds of questions we need to be asking ourselves if we want to take advantage of this growth opportunity that’s right in front of us.”

About the Truck & Off-Road Alliance

The Truck & Off-Road Alliance (TORA) represents the collective interests of its members through a single, powerful voice that can play a significant role in shaping the industry. The membership joined together to form a potent coalition whose mission is to determine the shape and future of the truck and off-road accessory industry. TORA is a council whose member companies manufacture, distribute, sell and/or install accessories for off-road vehicles, light-duty pickups or ATVs, or provide services to the off-road or truck accessory industry. To learn more about TORA and SEMA’s other industry councils, visit www.sema.org/get-involved.

SEMA News—April 2022

INDUSTRY INSIDERS

10 Questions for Jim McFarland

By Douglas McColloch

Photo Courtesy: Jim McFarland

June 1967: Hot Rod editor Jim McFarland (center, surrounded by a few dozen junior-high students) stands beside a brand-new '67 Chevy Camaro. It was the first-ever Camaro shipped to the state of California, and Hot Rod snagged it for a project build. With the aid of 16 aftermarket companies, the Camaro was said to be the first of its kind to run 11-sec. quarters.

Longtime followers of the automotive aftermarket need no introduction to Jim McFarland. Formerly an editor at Hot Rod who attended the first-ever SEMA Show, he became renowned for his work at Edelbrock as vice president of R&D through the ‘70s and ‘80s. Later, he worked in marketing and engineering positions at companies including Flowmaster, Hedman and Hypertech. He is the author of more than 400 technical articles, including SAE papers and publications for the motorsports, TV and outdoor markets. He was SEMA’s Person of the Year for 1985, and he was inducted into the SEMA Hall of Fame in 2001.

We spent a few minutes with McFarland to see what he’s been up to in recent days and to get his thoughts on the specialty-equipment industry. What follows has been edited for clarity and length.

SEMA News: What’s one of your most recent projects, and what inspired you to do it?

Jim McFarland: Years ago, I chaired the SEMA Emissions Committee, and I came to the conclusion along the way that the organization needed its own emissions lab. I said it would bring a lot of credibility to the industry, and it would facilitate the kind of activities that the industry needed. I spent years and years trying to get it done, but eventually I managed to get across the point that SEMA needed its own testing facility.

SN: What do you drive nowadays and why?

JM: A late-model SUV. The utility vehicle is becoming the most predominant vehicle coming out of Detroit and it will become the next ’55 Chevy over time in terms of its effect on the industry.

SN: What gets you excited about the performance aftermarket these days?

JM: The possibility of electric vehicles. They are obviously coming, and that will create a great deal of opportunity as a viable area of growth for the industry.

SN: What industry trend has most surprised you over the years?

JM: I was around when SEMA first started. Back then, there was a fair amount of resistance to letting the OEMs come in for fear of losing control, so the way the organization allowed the OEs to eventually join surprised me based on the way they were thinking in the beginning.

SN: What’s one rule you refused to break throughout your caree?

JM: I think because I originally came from the magazine side of the industry, I always thought the most important thing was to be honest and not misrepresent things, especially not in print.

SN: Talk about a project that was a failure but which taught you a valuable lesson later on.

JM: Vic Edelbrock was president of SEMA in the early ’70s. During that time, I thought it would be a good idea to have an open house and let the industry see what the organization was doing about emissions. At the same time, I thought it would be good to invite representatives from the California Air Resources Board [CARB] to come down as well. Once it was known that we were inviting CARB to our open house, it scared off the industry, so we ended up having an open house for CARB. The lesson I learned from this is that you have to be careful in how you frame your events so that you don’t run off the people you’re most trying to attract.

SN: What’s the most unusual work assignment you’ve ever been given?

JM: When Vic was president of SEMA, he created three committees that hadn’t existed before. One was dedicated to safety, one was for noise, and the third was for emissions. He tapped me to run the emissions committee, and it was completely foreign ground to me. We had objectives but no roadmap to go by, so it was strictly seat-of-the-pants.

SN: You can take a road trip with anyone to anywhere. Who would you choose, and where would you go?

JM: [Legendary GM engineer and “Father of The Corvette”] Zora Arkus-Duntov. I admired him growing up and used a lot of his camshafts when I built engines during my college years. Later I got a chance to meet him, and we became very good friends and did a lot of things together. So if I had a chance to go anywhere, I’d take a road trip with him to the Corvette Museum, because it’s packed with stuff he was personally involved with.

SN: What’s on your personal bucket list?

JM: At my age, although it may seem idealistic, it would be to do whatever I can to help SEMA grow its membership. A lot can be derived from the association, and the benefits it can offer the membership is something that we all should support.

SN: Describe a perfect day in the life of Jim McFarland.

JM: Because of all the time I spent doing industry-related things such as SEMA activities, serving on the SEMA Board and traveling for business, I think a perfect thing for me would be to spend time with my wife. She put up with all this stuff, so I spend as much time with her as I can now.

SEMA News—April 2022

LEGISLATIVE AND TECHNICAL AFFAIRS

Law and Order

By Daniel Ingber

FEDERAL UPDATE

RPM Act: SEMA and the Performance Racing Industry (PRI) continue to lead the fight to pass the Recognizing the Protection of Motorsports Act (RPM Act; H.R. 3281 and
S. 2736) into law. The RPM Act, if enacted into law, would clarify that it is legal under the Clean Air Act to make emissions-related changes to convert a street vehicle into a dedicated race car. The bill would also confirm that it is legal to produce, market and install racing equipment. The bill enjoys strong bipartisan support, as H.R. 3281 has 119 co-sponsors (91 republicans and 28 democrats), and S. 2736 has 24 co-sponsors (16 republicans and eight democrats). SEMA’s and PRI’s efforts to pass the RPM Act were backed by unprecedented grassroots support in 2021, as enthusiasts and industry sent more than 1.5 million letters to members of Congress in support of the bill. It is imperative that we continue to keep the pressure on lawmakers to pass the bill before this session of Congress comes to a close on January 3, 2023.

The RPM Act letters that enthusiasts and businesses have sent through
www.saveourracecars.com are being noticed on Capitol Hill and continue to make a difference, but there’s more that you can do to pass the RPM Act:

• Sign a letter to your lawmakers on company letterhead. Email erics@sema.org for a template and for more information.
• Post about the RPM Act on your company’s social-media accounts using the digital assets toolkit at https://sites.sema.org/rpmtools.
• Become a member of SEMA and learn more about SEMA’s Political Action Committee (SEMA PAC) at www.SEMApac.com. SEMA PAC allows SEMA members to support the lawmakers who stand up for the industry in Washington, D.C.

Off-Roading at Oceano Dunes: A San Luis Obispo County Superior Court judge will allow a “quiet title” lawsuit filed by Friends of Oceano Dunes against the California Coastal Commission (CCC) and California State Parks to move forward. The suit contends that off-roading and camping access to Oceano Dunes is protected by an “implied-by-law dedication,” since OHV enthusiasts and campers recreated on the land for decades before the government entities acquired the properties, and the land was specifically designated for use for beach driving and camping. The case is set for trial in March 2023. This action is separate from a lawsuit challenging the CCC’s claim that environmental concerns require the closure of Oceano Dunes to OHV use. The latter suit was filed by SEMA, the Off-Road Business Association, the American Sand Association, and the American Motorcyclist Association District 37, and joined by Friends of Oceano Dunes. The lawsuit is currently in discovery.

The Oceano Dunes State Vehicular Recreation Area has been managed by California State Parks since 1974. It provides the only opportunity for motorized recreation at a state park along California’s Pacific coast but has been under threat of closure for many years. Opponents to motorized recreation at the dunes cite airborne particulate matter (dust) and/or environmental threats to plants and animals. For years, SEMA has joined with many other OHV groups in challenging the scientific basis for these claims.

In March 2021, the CCC voted to shut down OHV access, thereby triggering the lawsuits. In December, the CCC reversed course and agreed not to pursue several projects until the litigation is resolved. Specifically, some camping will be permitted immediately, and the Pier Avenue vehicle entrance to Oceano Dunes will not be closing in July 2022. Further, Arroyo Grande Creek will no longer be closed when the ocean touches the lagoon; rather, the creek crossing will be closed only when the creek water reaches a depth of 12 in.

E15 Gasoline: The U.S. Supreme Court will not consider an appeal to permit the year-round sale of gasoline with up to 15% ethanol. Biofuel producers had asked the U.S. Environmental Protection Agency (EPA) to allow year-round sales of E15 for many years, and the Trump administration issued a rule in 2019 to permit such sales. However, the Biden administration rescinded the rule in 2021, and the U.S. Court of Appeals for the District of Columbia agreed that the EPA had overstepped its legal authority when issuing the 2019 rule. The Appeals Court upheld the pre-2019 restrictions prohibiting the sale of E15 between June 1 and September 15 due to fuel-volatility concerns that higher blends of ethanol combined with warmer temperatures may lead to increased ground-level ozone formation and smog. 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 in certain specialty high-performance equipment installed on newer vehicles. SEMA opposes the expansion of E15 gasoline as there may not be enough protections to guard against misfuelling.

Greenhouse Gas Emission Standards for New Vehicles: The EPA has finalized a rule to tighten the new-car emissions requirements for greenhouse gases. For model-year ’26, the fleetwide average for cars, SUVs and pickup trucks will be 161 grams of carbon dioxide per mile. If expressed in miles per gallon (mpg) in real-world stop-and-go driving, the new rule translates into a fleetwide average of about 40 mpg for model-year ’26 vehicles, much higher than the 32-mpg requirement set under the Trump administration. The rule takes effect for model-year ’23 and increases the requirements each year through ’26. The EPA anticipates that the automakers will meet the standard via gradual increased sales of zero-emissions cars. EVs and plug-in hybrids are expected to represent 7% of all new vehicles sold in 2023 and rise to 17% by 2026.

STATE UPDATE

Missouri—Historic Vehicles: Missouri introduced SEMA-supported legislation that would allow historic vehicles to be issued license plates without an annual mileage restriction. Current law limits historic-vehicle owners to 1,000 miles of driving for personal use per year. The bill currently awaits consideration in the Senate Transportation, Infrastructure and Public Safety Committee.

Iowa—License Plates: The Iowa House of Representatives introduced SEMA-supported legislation to allow the state to issue newly created year-of-manufacture (YOM) license plates for antique vehicles. Current law allows only vintage YOM plates in original condition with DMV approval. The bill currently awaits consideration in the House Transportation Committee.

New Hampshire—Exhaust: The New Hampshire House of Representatives introduced SEMA-supported legislation to allow the use of side-mounted exhaust on antique vehicles. The bill is pending before the House Transportation Committee.

New Hampshire—Inspections: The New Hampshire House of Representatives introduced SEMA-supported legislation to exempt antique vehicles from the state’s annual equipment inspection. The bill is pending before the House Transportation Committee.

New Hampshire—License Plates: The New Hampshire House of Representatives introduced SEMA-supported legislation to allow the owner of a motor vehicle to apply for a waiver to display only a single rear-mounted plate if affixing a front license plate would alter the vehicle’s historic character, its collectability or devalue the vehicle. The bill is pending before the House Transportation Committee.

New York—License Plates: The New York Assembly introduced SEMA-supported legislation to allow for the display of only a single, rear-mounted license plate. The bill is pending before the House Transportation Committee.

New York—Inspections: The New York Assembly introduced SEMA-supported legislation to reduce the required safety inspection for antique, classic and collector vehicles from annually to biennially. The bill is pending before the House Transportation Committee.

New York—Historic Vehicles: The New York Assembly introduced SEMA-supported legislation to create a one-time $50 registration fee for historical vehicles. Owners of these vehicles are currently subject to an annual $28.75 fee. The bill is pending before the House Transportation Committee.

Utah—Military Vehicles: The Utah Senate introduced SEMA-supported legislation to exempt military vehicles from displaying a license plate. The bill would require a license plate to be carried inside the vehicle and ready for inspection by law enforcement upon request. Currently, all vehicles must always display two license plates. This bill currently awaits consideration in the Senate Transportation, Public Utilities, Energy, and Technology Committee.

Vermont—Inspections: The Vermont House of Representatives introduced SEMA-supported legislation to require biennial safety and emissions inspection in lieu of the current annual obligation. The bill awaits consideration by the House Committee on Transportation.

Virginia—Exhaust Noise: The Virginia Senate introduced SEMA-supported legislation to implement a fair testing procedure for vehicle owners accused of exhaust noise violations. Under the proposal, vehicles would be limited to 85 dB of sound when measured at 50 ft. The bill currently awaits consideration in the Senate Transportation Committee.

Washington—Military Vehicles: The Washington House of Representatives introduced SEMA-supported legislation to allow for the registration of former military surplus vehicles. Under the bill, a military surplus vehicle is defined as a vehicle that is not operated using continuous tracks, was originally manufactured and sold directly to the armed forces of the United States, and is no longer owned by the United States Armed Forces. The bill currently awaits consideration in the House Transportation Committee.

West Virginia—Antique Vehicles: The West Virginia House of Delegates introduced a bill to create an antique fleet program. Under the proposal, the owner of five or more antique vehicles would be able to use a single registration plate. The bill is pending before the House Technology and Infrastructure Committee.

West Virginia—Collector Vehicles: The West Virginia House of Delegates introduced SEMA-supported legislation to limit the amount a county tax assessor may increase the assessed value of an antique or classic car each year for annual personal property taxes. The bill currently awaits consideration in the House Political Subdivisions Committee.

California Prop 65: California’s Office of Environmental Health Hazard Assessment (OEHHA) has proposed significant revisions to Proposition 65’s short-form warning requirement. The revisions are opposed by SEMA, the California Chamber of Commerce and dozens of other companies and organizations. OEHHA first released its planned changes in early 2021, but they were met with widespread criticism. OEHHA revised the proposal last December. Although it has been scaled back, SEMA continues to oppose the proposed changes. Among other considerations, the proposal would require that at least one chemical associated with cancer and/or one chemical known to be a carcinogen be identified on the short form.

The current short-form warning does not identify a specific chemical(s) while the long-form warning requires identification of a specific chemical(s):

• Short-Form: WARNING: Cancer and Reproductive Harm—www.P65Warnings.ca.gov.
• Long-Form: WARNING: This product can expose you to chemicals, including [name one or more chemicals], which is (are) known to the State of California to cause cancer or birth defects or other reproductive harm. For more information, visit www.P65Warnings.ca.gov.

Under the proposed rule, companies would now be required to list at least one chemical on the short form. Companies could use the short-form warning only if the product label was 12 sq. in. or less. OEHHA would continue to permit companies to use the short-form warning on their websites or in catalogs.

Prop 65 was a ballot initiative enacted by California voters in 1986. It requires warning labels on products containing chemicals listed as known to cause cancer, birth defects or reproductive harm. There are more than 1,100 chemicals currently on the list. Prop 65 doesn’t stop anyone from selling products, regardless of what chemicals they contain; it is simply a law that requires consumer warning labels under certain circumstances.

The business community worked with OEHHA for several years to develop the original Prop 65 regulations that took full effect in September 2018. Companies subsequently invested significant resources in updating product labels, websites and catalogs, and instructing others in the product chain about their obligations. OEHHA’s proposed short-form warning changes would negate those efforts for many companies. If the agency seeks to implement the rule, the agency has proposed a one-year phase-in period for companies to make any necessary labeling changes.

Vermont—Exhaust Noise: The Vermont House of Representatives introduced SEMA-model legislation to create a fair testing procedure for vehicles suspected of exhaust noise violations. The proposal implements the Society of Automotive Engineers’ objective testing procedures for determining if a vehicle’s installed exhaust system is more than 95 decibels. The bill awaits consideration by the House Committee on Transportation.