News | Specialty Equipment Market Association (SEMA)

John B. Rogers Jr. Keynotes SEMA Show New Product Awards Breakfast

Wed, 09/01/2010 - 15:08

SEMA News - September 2010


	John B. Rogers Jr., president, CEO and co-founder of automaker Local Motors, is the keynote speaker for the 2010 SEMA Show New Product Awards Breakfast.

John B. Rogers Jr., president, CEO and co-founder of Local Motors, will inspire 2010 SEMA Showgoers as the keynote speaker for the New Product Awards Breakfast on Tuesday, November 2, 2010, in Las Vegas. All exhibitors and attendees are invited to hear how Rogers’ auto manufacturing company is changing the way cars are designed and built.

Founded less than three years ago, the Arizona-based car company is home to 60,000 car design concepts, 7,000 community members, 12 full-time team members and one production vehicle: the Rally Fighter. Local Motors is based on the concept of open-source co-creation and local manufacturing, creating a unique chassis and body for each vehicle. The company doesn’t make many of its own components, preferring instead to collaborate with the specialty-equipment market for high-quality, proven products.

The New Product Awards Breakfast is a key attraction of the SEMA Show, taking place on the Show’s opening day before the Show floor opens. During the breakfast, the best new products in the New Products Showcase are announced and presented to exhibitors.

Tickets are free to all Showgoers, but space is limited so they are available on a first-come, first-served basis. To get tickets, visit the “Special Events Reservation” link located on www.SEMAShow.com and fill out the form.

SEMA Show Central Hall Expands to Accommodate More Exhibitors


	The SEMA Show’s Central Hall—home to the Racing & Performance, Hot Rod Alley and Restoration Marketplace sections—has been expanded to accommodate additional exhibitors.

With less than three months left until the 2010 SEMA Show, to be held November 2–5 in Las Vegas, strong demand for exhibit space has essentially filled three key sections of the Show: Racing & Performance, Hot Rod Alley and Restoration Marketplace.

To meet the needs of companies still desiring to exhibit in these sections, the Central Hall has been expanded to the adjacent meeting space, which is just a few feet away from the main exhibit hall.

“We are thrilled with the industry’s support of the SEMA Show and the significant demand for Central Hall exhibit space and are fortunate to have an area so close in the building that can accommodate those still signing up,” said Peter MacGillivray, SEMA vice president of communications and events. “This area is linked to the hall by the East Lobby, which is considered by many as a main entrance to the Show.”

Numerous programs have been implemented to direct Showgoers to the area, ensuring that everyone is aware of the expanded section. The expansion is also located where the shuttle busses drop off, so visitors will go through the area when they walk to and from the buses.

Buyer and exhibitor registration, an online floorplan and complete information on the 2010 SEMA Show are available at www.SEMAShow.com.


	SEMA Show exhibitors have until September 3, 2010, to update their listings that will be included in the printed 2010 SEMA Show Directory.

Don’t Miss Opportunity for Inclusion in the 2010 SEMA Show Directory

Your 2010 SEMA Show Directory listing is one of the most important aspects of promoting your participation at the 2010 SEMA Show. The information you provide will be placed in the online floorplan, 2010 SEMA Show Directory and 2010 SEMA Show Pocket Guide. Buyers use this information in pre-Show planning, when they are walking the floor onsite and as a resource throughout the year after the SEMA Show.

The description provided in the floorplan is the same that was provided in the original Exhibit Space Rental Agreement. SEMA has sent exhibitors an e-mail with instructions on how to update company listings online. The deadline to be included in the printed 2010 SEMA Show Directory, including any updated listings, is September 3, 2010.

Questions? Contact Marel Del Rio at mareld@sema.org or 909/978-6740. If you are interested in advertising in the 2010 SEMA Show Directory or 2010 SEMA Show Pocket Guide, please contact Motor Media at 818/248-4449.

2011 Scion tC CAD Data Available


	CAD data files for the 2011 Scion tC are now available to SEMA manufacturers through the Tech Transfer program.

Attention designers: The SEMA Tech Transfer program has expanded to include CAD data for the 2011 Scion tC. The files available include exterior body panels, engine (2.5L), transmission, suspension and brakes and air cleaner/air intake. To get started, visit Tech Transfer at SEMA.org.

The intent of SEMA’s Tech Transfer program is to minimize or eliminate the necessity for reverse engineering to produce products. The CAD files made available through the program are provided by participating OEMs, which currently include, Chrysler, Ford, General Motors and Scion.

In addition to the large number of files currently available, SEMA manufacturing members can also request the particular information that they need, and the Tech Transfer staff will work with the OEMs to provide the data.

The 2011 tC will receive its first major changes since its launch in 2004. According to Scion, the 2011 edition will be fitted with a new 2.5L engine pushing about 180 hp and 173 lb.-ft. of torque. Inside, changes include new sport bucket seats, a redesigned instrument cluster, standard 60/40 split folding rear seat and an eight-speaker audio system with steering-wheel controls.

For more information on the SEMA Tech Transfer program and what files are currently available, visit here.

Fast Facts

Janeen Webb

Street Rodder magazine’s Janeen Webb was named 2010 Goodguys Woman of the Year during a special ceremony at the Goodguys 13th PPG Nationals presented by Bridgestone. Throughout her career at Street Rodder, Webb has not only designed and maintained marketing partnerships with manufacturers and suppliers but has also contributed to the automotive aftermarket as a whole by serving multiple years on SEMA’s Hot Rod Industry Alliance (HRIA) council as well as organizing consumer and industry events.

Tom McKernan, CEO of Automobile Club of Southern California, and Dave McClelland, legendary voice of the NHRA, were named to the board of directors of the Wally Parks NHRA Motorsports Museum. McKernan has been a huge supporter of the Wally Parks NHRA Motorsports Museum, both personally and professionally, forging the deal that brought on the Automobile Club of Southern California as presenting sponsor in 2004. McClelland joins the museum board after a lifetime of involvement in broadcasting and drag racing. McKernan and McClelland join Alex Xydias, Peter Clifford, Gary Darcy, Steve Gibbs and Wayne McMurtry on the current board of directors. NHRA, Glendora, CA; 626/914-4761.

Step N Stor, a brand of Lift & Storage Systems Inc., selected Galaxie Management Inc. to assist in promoting the Step N Stor to Department of Defense agencies. Galaxie Defense Marketing Services has worked in defense/government sales and marketing services for more than 30 years with the purpose of maximizing client sales to OEMs and the defense department by establishing and maintaining relationships with key decision makers and procurement personnel. Lift & Storage Systems, White Bear Lake, MN; 651/777-1554.


	Rick Huston

The Truck Accessories Group LLC (TAG) announced that Rick Huston has joined the TAG organization as sales and business development manager for State Wide Aluminum, a TAG-member company located in Elkhart, Indiana. Huston’s career includes stints at TRW, Eaton Corp. and Federal-Mogul. The responsibilities of his new appointment include increasing the sales and distribution of State Wide custom aluminum-framed windows, doors, access panels and hatches. Truck Accessories Group, Elkhart, IN; 574/262-2594.

Delta Kits has donated $6,000 so far in 2010 to Living Water International, a Christian organization based in Stafford, Texas, that aides developing countries around the world through implementing participatory, community-based water solutions. The donations have helped provide a new well for Maher Town, a community in Liberia, and training to demonstrate proper care for the pump. According to a recent report by Living Water International released in May, the new well is providing fresh water to 1,200 people. Delta Kits, Eugene, OR; 541/345-8554.

Petersen Automotive Museum Executive Director Richard (Dick) Messer has announced his retirement. Commenting on his decision, Messer said, “As I approach 70, and having given a total of 12 years of full-time attention to the museum, it’s time for me to relax a bit and focus on other matters.” The museum named Buddy Pepp—founding member of the museum’s Checkered Flag 200 executive committee—as Messer’s replacement as executive director. Petersen Automotive Museum Foundation, Los Angeles; 323/964-6361.

THI, the parent company of Extang Corporation, TruXedo Inc. and BedRug Inc., has combined with E.D. Industries Inc. (UnderCover). THI was formed in November 2007 by Kinderhook Industries LLC. UnderCover will join THI under the leadership of THI CEO Bill Reminder. THI reported that it will leverage the best practices and operational strengths of all companies under the THI umbrella. “We look forward to working in partnership with industry leaders Extang, TruXedo and BedRug,” said David Wells, who will continue in his role as president of Undercover. “I’m confident that through the combined efforts of all of our companies, we will continue to grow and set the standard for the industry’s best truck accessories.” Extang, Ann Arbor, MI; 800/877-2588. TruXedo, Yankton, SD; 877/878-9336.


	Rick Ross

Rick Ross was promoted to sales supervisor for Scosche Industries. Ross, who was hired last year by Scosche as a national trainer, has more than 25 years of senior-level experience in the automotive aftermarket industry. In his new position, he will oversee the entire nationwide sales force dedicated to specialty dealers. Scosche, Oxnard, CA; 805/486-4450.

Competition Specialties will hold its wholesale-only Mega Jobber Trade Show for the 39th consecutive year on Saturday and Sunday, February 26–27, 2011, at its Auburn, Washington, distribution center. According to the company, the annual trade show features major manufacturers, new products, product giveaways and more. For additional information, contact Bill McConnaughey at 253/833-6211. Competition Specialties, Auburn, WA.

Actron and Sunpro—brands of SPX Service Solutions—have moved their offices to 3000 Apollo Dr., Brook Park, OH 44142. The company can be reached at 216/515-5100. Sunpro produces performance tachometers and panel gauges for classic musclecar and hot-rod enthusiasts and today’s new-era sports cars. Actron manufactures diagnostic equipment and instrumentation in the retail and DIY segment of the automotive aftermarket industry. SPX Service Solutions, Cleveland, OH; 216/898-9200.

Owens Products Inc., a family-owned business established in 1965 and the maker of running boards with applications for pickups, vans, SUVs and CUVs, selected Media Management Marketing to handle its public relations initiatives. Owens Products, Sturgis, MI; 269/651-2300.

Tony D’Acquisto was named sales manager for the automotive aftermarket channel for the Valspar Corp. D’Acquisto will have national account responsibility, serving key retail and commercial accounts in the North American automotive aftermarket. He will focus on working with customers to provide solutions and optimize sales as related to the automotive paint category, further establishing the PlastiKote brand of products in the marketplace.

For the fifth consecutive time, Nobuhiro “Monster” Tajima took the overall victory in the 88th running of the Pikes Peak International Hill Climb, a win he claimed one day prior to his 60th birthday. Tajima continues to hold the current overall record for reaching the peak, besting hill-climb veterans Paul Dallenbach and Rhys Millen in the Unlimited Class. With his new car—a 910hp Monster Sport SX4 Hill Climb Special—he finished with the time of 10:11.49, a few seconds faster than the winning time he posted last year.

Mitchell 1 received the 2010 Hall of Fame award from AAA during the AAA/CAA Automotive Services Conference held recently in Lake Buena Vista, Florida. The award was presented to Mitchell 1 in recognition of outstanding commitment, dedication and success as an AAA Automotive Preferred Supplier. David Boyington, senior account manager, corporate sales, Mitchell 1, and Ken Young, vice president sales and marketing, Mitchell 1, accepted the award from Marshall L. Doney, AAA Automotive vice president. Mitchell 1, Poway, CA; 858/391-5000.

Pirelli Tire North America will expand its sales and marketing operations with a new office in New York to complement its North American headquarters in Rome, Georgia. The company reports that the expansion will assist with its aggressive sales growth and will only involve the outward-facing parts of the sales and marketing departments. Pirelli, Rome, GA; 800/747-3554.

Three Motor State/Lane Automotive publications were awarded Gold Medallions at the 19th Annual International Automotive Media Awards. In addition, Lane Automotive’s website also received a Best of Division award. Winning Gold Medallions were The Hot Rod Parts Catalog for cover design, public relations and marketing; Lane Automotive.com for Internet reference; and The Motor State Performance Report for a newsletter less than 16 pages, public relations and marketing. The ceremony was held at the Automotive Hall of Fame headquarters in Dearborn, Michigan, in June. Motor State Distributing, Watervliet, MI; 269/463-4113.

Ohio Technical College was named one of Northeast Ohio’s Top 75 Workplaces of 2010. The Top Workplace honor was awarded by The Plain Dealer and Workplace Dynamics after they conducted employee surveys regarding their jobs and workplace environments at the college and its branch campus (the PowerSport Institute). Over the past three years, Ohio Technical College has received 2008 and 2009 Weatherhead Awards; the 2010 NEO Success Award; and been named to the 2009 President’s Higher Education Community Service Honor Roll. The school was also named the 2009 School of the Year in an annual competition by Babcox Publications’ Tomorrow’s Technician magazine and Chicago Pneumatic. Ohio Technical College, Cleveland; 800/322-7000.

Falken Tire expanded its interactive social website at www.wegetyougoing.com by introducing a new section called www.falkenfanatic.com. Designed to be highly interactive, the new section allows visitors to build their own profiles, share experiences and upload race-related information and material. Participants also have a chance to win products and other motorsports items. Falken Tire, Fontana, CA; 909/466-1116.

SEMA Spy Photos

Wed, 09/01/2010 - 15:08

SEMA News - September 2010

The images and information provided in “Spy Photos” are supplied by the spy shooters at Brenda Priddy & Co. “Spy Photos” are included each week in SEMA eNews, the association’s electronic newsletter. To receive your copy of SEMA eNews, e-mail enews@sema.org.

Mercedes SLK 63 AMG

When It Hits: Look for this roadster’s debut in 2011 as a 2012 model.

What Priddy Says: The new SLK will sport a new, more upright grille and headlamp look (not unlike the new SLS) as well as daytime driving lamps, new door handles and large mirrors mounted on the door (rather than in front of the side window). The changes that will happen underhood, however, are uncertain.

Audi S7

When It Hits: The S7 is expected to arrive in showrooms sometime in early 2011.

What Priddy Says: Larger air intakes, sportier wheels and tires, bigger brakes and rotors, along with the typical “S” quad exhaust, indicate that this is no ordinary A7 prototype. While there are a few possibilities for the S7’s powerplant, Priddy hears rumors of an all-new 4.0L V8 that could debut in the S7.

Chevy Malibu

When It Hits: The production date was bumped up to the fourth quarter of 2011, according to Priddy, and current rumors point to an even earlier start.

What Priddy Says: The Malibu will ride on the same short wheelbase version of the Epsilon II chassis that underpins the 2011 Buick Regal. Under the hood, a 3.6L V6 should be the top-end option, according to Priddy, with either (or maybe both) the 2.4L SIDI four-cylinder or the 2.0L, turbo-charged Ecotec four-cylinder rounding out the lineup. All will be mated to a six-speed transmission, and all-wheel drive will be optional.

Dodge Charger Police Car

When It Hits: Spirited drivers will need to check their rearview mirrors for this patrol car beginning late 2010.

What Priddy Says: The 2011 Charger patrol car, referred to internally as “LD,” will ride on an updated version of the “LX” chassis and be powered by a base-model 3.6L V6, a 360hp 5.7L Hemi V8 or the meatiest of the group, a 6.4L Hemi V8.

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

The Allure of China

Wed, 09/01/2010 - 15:08

SEMA News - September 2010

By Alysha Webb

Benefit From the Growing Market While Managing the Risks


		For SEMA members whose products have a market in China, being in there is a must for future success, said Anthony Lance, Asia Pacific sales and marketing for car care products manufacturer Meguiar’s Inc. Pictured here are SEMA members in 2009 touring the showroom of a Beijing-based distributor.

The allure of China is undeniable. Its rising incomes, growing middle class and fast-growing vehicle market all frequently make the news in the United States. Not all the news out of China is positive, however. Almost weekly, there are stories about counterfeit goods with ties to China. Counterfeit goods cost companies in the United States billions of dollars a year. There is no denying that intellectual property rights (IPR) protection is a problem for companies doing business in China, be it sourcing products there or selling in the market. But that doesn’t mean you should stay away from doing business in China. SEMA-member companies that have done business in China have some advice for fellow SEMA members eyeing the China market with anticipation but also trepidation: Your products will almost certainly be copied, so take steps to protect yourself.

The Lowdown

“If you have a market presence and any recognition, it is a sure deal that you will have counterfeit products,” said Anthony Lance, Asia Pacific sales and marketing for car care products manufacturer Meguiar’s Inc., which sells products in China. “You have to do the right preparations beforehand.”

If you manufacture in China, copies of your product may show up in the United States or other markets. That is part of doing business internationally.

“There’s probably not a week that goes by that I don’t warranty fake parts [though, not necessarily just from China],” said Scooter Brothers of Comp Performance Group. Comp includes companies that produce high-performance camshafts and valvetrains as well as transmission, torque convertor and driveline components, such as clutches, gears and starters.

“We’ve sent letters and threats [to the counterfeiters], but they don’t care,” said Brothers. Sooner or later, it all fixes itself, he said, because those kinds of companies don’t have much staying power. “If you’re not willing to do the whole journey, it is not going to work.”

Copying is not unique to China, but it is perhaps more prevalent there. Having someone on the ground watching out for you is important, but it won’t end the copying.

“We’ve always had the problem of copying; we had it even in the United States,” said Gary Neumann, president of Neuspeed/Neumann Distributing. Neuspeed sells aftermarket performance equipment, including suspension and turbo parts and wheels. “We own our name [in China],” he said. “We see kits with our name on the packaging. Our guy in China keeps a watch out and goes after them himself. Usually, he can’t stop it. Once you get rid of one guy, another one pops up. There’s always going to be somebody out there who is going to copy.”

Warn Industries manufactures premium winches and hubs for off-road vehicles and has been doing business in China for 20 years, said Randy Norris, managing director of international. Warn has had problems with counterfeit products manufactured in China being sold in the United States. Nonetheless, Warn stayed in China. “You are selling into a market because people want to buy a premium product,” said Norris. If Warn didn’t sell it under controlled distribution, someone else in North America would likely sell it to a Chinese distributor, said Norris, and Warn would have no control over it.

Meguiar’s has faced problems with counterfeit products in Korea, Thailand and China, said the company’s international business development manager, Lisa Daniels. “It was almost instant,” she said. “The minute we had any brand recognition, copies started showing up.”

Being copied is the price for having a successful product.

“I think it is inevitable that no matter what country you are in, once you become successful, someone will copy [your product],” said John Reynolds, director of product management for performance lighting manufacturer Anzo USA. Another foreign company he worked for in China had its logo registered illegally by a Chinese company, said Reynolds. The company got its logo back—eventually. “I spent the better part of a year working to get that back, working through the China legal system,” said Reynolds. “It was a massive cost. We had to hire an international law firm to help us fight it.”


	Pictured here: Kenneth Merritt (right) of Bushwacker talks with a Chinese firm during a SEMA event in China in 2009.

But the costs—in both time and money—aren’t always that massive compared to the potential sales. Fighting counterfeiting in China cost Meguiar’s less than 1% of its annual sales in China, said Lance. Meguiar’s works with specialized enforcement companies in China to fight counterfeiting. “I have handled everything so far,” Lance said. “It takes a meeting once a month, answering e-mails, etc.”

Not all products are created equal where counterfeiting is concerned.

“If a product is a very specialized, small-market product, it probably won’t be copied,” said former SEMA Chairman Jim Cozzie of RTM Productions. Cozzie previously worked for Zoom Performance Products, which sourced parts in China.

“The real risk is when you have a very high-volume item,” he said. “If a company makes a popular product, all anyone has to do is go buy one and knock it off.”

If your product is high tech or requires a big initial investment of capital to manufacture, the chances of being copied in China are slimmer.

“We’re probably in a better position than some because of the high technology in our products,” said Brothers. “In the high-performance market, the small details do make a difference. People who can afford to modify their cars pay attention to details, and the counterfeiters miss the boat on a lot of the metallurgical things.”

AEM Performance Electronics hasn’t faced a big counterfeiting problem so far—likely because of the complexity and cost of its technology, said Kirk Miller, vice president of sales and marketing. AEM produces gauges, engine-management systems, sensors and fuel-delivery systems. Its China sales volume is still small and is partly through distributors and partly direct.

“A lot of our product requires software, code, programming, a support mechanism and hundreds of factory-trained tuners,” Miller said. “It also needs constant software upgrades every couple of months. For somebody offshore to copy our products would be a massive undertaking.”

Producing Anzo products requires several million dollars in up-front investment, so the barrier to entry is difficult for some to overcome, said Reynolds. Anzo’s products are extremely difficult to duplicate because of the capital required to build the mold.

If the Situation Is so Bad, Why Should I Even Sell in China?

For many SEMA members, China is a great business opportunity. Said Anzo’s Reynolds: “Long term, the market is going to be a huge one. It will be comparable to the United States. For a small company, that means a lot of opportunity in a country that has a growing enthusiast interest. Given the potential of the market, you could establish a name for yourself by being there early.”

Still, Reynolds recommended that a company consider carefully before taking the China plunge. “The key is to figure out if you have product for the market,” he said. “There are vehicles in China that we don’t have in the United States. Identify what is there, what you can sell, why you want to enter.” Only then, he said, should you figure out if it is worth the expense of registering your trademark and taking other steps to protect your intellectual property.

For SEMA members whose products have a market in China, being there is a must for future success, added Meguiar’s Lance.

“If you want to have another 100 years of success, you have to be in the China market,” he said. “You have to get over there as soon as possible. A lot of the brands that are very successful in China are not the brands that are successful in the United States. They are successful in China because they got to the market early.”

Additional information and resources on the mechanics of how to protect the ideas, names, logos and inventions of your company is available online at www.sema.org/ipr.

6 Steps to Protecting Your Intellectual Property in China

You may not be able to prevent your products from being copied, but here are six steps you can take to limit the damage.

Before you start selling your products in China, register your patents, copyrights and trademarks in the United States and China.
Chose the right partner. This is the number-one recommendation from SEMA members active in China, whether sourcing products there or selling into the market. Finding the right local partner requires more than just looking on the Internet and exchanging some e-mails, sources emphasized. “You have to find a true, trusted partner,” said RPM Productions’ Cozzie. “Part of finding good partners is that you have to meet them face to face. There is a relationship element to all of this. You have to look a guy in the eye and see if you can trust him.” Going thorough due diligence on a potential partner in China is crucial.
Have a good attorney, one familiar with China’s intellectual property issues, recommended AEM’s Miller. AEM also studied what steps other companies were taking to protect their intellectual property in China, including, Rolex and Sony.
Deal with your distributor or manufacturer directly, if possible. “I don’t do business with any middle men,” said Brothers. “Most of our unwanted distribution has come from a middle man.” When Comp Performance Group considers a company in China as a partner, company officers visit the factory to set up the relationship and ensure that they are dealing with the right people. “I have three or four vendors over there,” Brothers said. “I went to the factory and sat down with them. I have a good relationship with them. I can’t overstate how important I think that is.”
Don’t let the language barrier scare you away or be duped because a vendor speaks good English, Brothers emphasized. “One of the best vendors I’ve got doesn’t speak any English,” he said.
Budget for enforcement of your intellectual property in China. “You need to have a budget set aside for an enforcement action, an action by a legal third party to find out what company is counterfeiting your products,” said Meguiar’s Lance. But choosing the right enforcement agent is also very important, he emphasized. Lance advised that companies new to the market find an agent through recommendations from other foreign companies. The agent will research the market, put together a report and work with local officials to schedule a raid, if necessary. There are hundreds of such agents, but not all are effective or even legal.

Law and Order

Wed, 09/01/2010 - 15:08

SEMA News - September 2010

By Steve McDonald

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

STATE UPDATE

California Specially Constructed Vehicles:

After passing in the Assembly with the full support of the automotive hobbyist community, the California Senate Transportation Committee failed to approve legislation to increase the registration limit for exempted specially constructed vehicle registrations from 500 to 750 vehicles per year. The bill was defeated on a three-to-five vote. Current law provides for emissions-system certification and a model-year designation for specially constructed vehicles. Under the law, vehicle owners choose whether a smog-test referee certifies the engine model year or the vehicle model year. To determine model year, inspectors compare the vehicle to those of the era that the vehicle most closely resembles. If there is no close match, it is classified as a ’60 vehicle. Only those emissions controls applicable to the model year and that can be reasonably accommodated by the vehicle are required. The Department of Motor Vehicles provides a new registration to the first 500 specially constructed vehicles per year that meet the criteria.

California Tire Pressure:

The California Air Resources Board has issued a proposed rule that would require all automobile service providers to check tire pressures for every vehicle being maintained or repaired at their facilities as of September 1, 2010. The regulation would apply to auto maintenance/repair providers but not to auto parts distributors/retailers, auto body/paint facilities, auto glass installers or wreckers/dismantlers. The rule is intended to reduce greenhouse gas emissions associated with under-inflated tires. Service providers would be required to check and inflate the tires to the recommended tire-pressure rating. The provider would have to note on the invoice that the tire inflation service was completed and then keep a copy of the service invoice for at least three years. The rule would apply to all vehicles weighing less than 10,000 lbs.

California Consumer Products:

Legislation currently being considered in the California Legislature would place additional requirements on the manufacture, sale or distribution of certain consumer products, including automotive products used to maintain the appearance of a motor vehicle (including those for washing, waxing, polishing, cleaning or treating the interior or exterior of the vehicle). Under the bill, a manufacturer is required to disclose each ingredient contained in the product on the manufacturer’s website and provide the web address and a statement on the product’s label. The bill provides some protection for trade secrets, unless the ingredient that the manufacturer claims trade secret protection for is a “hazardous substance.”

California/Hawaii Tires:

SEMA derailed California legislation that would have required tire dealers to provide a written disclosure to customers informing them about the risks associated with tire age. The bill had been approved by the full Assembly. Similar legislation that would require automotive repair dealers to list on the invoice the manufacture date of any tire installed or sold has also been abandoned. In addition, SEMA-opposed legislation in Hawaii that sought to prohibit the sale of any new tire that was manufactured more than six years prior to the date of the sale of the tire was defeated. The National Highway Traffic Safety Administration has studied the tire aging issue but has yet to reach a conclusion. SEMA contends that the service life of a tire is affected by many factors that are independent of the chronological age of the tire. Tire properties evolve over a combination of time, service and storage conditions. Tires change more rapidly when exposed to excessive heat, under-inflation or overloaded conditions. SEMA recommends having tires, including the spare, inspected regularly. Tire inflation pressure should be checked and properly adjusted at least once a month to maintain safety and fuel economy.

Illinois Lead Wheel Weights:

As of January 1, 2011, it will be illegal to sell or install a wheel weight that contains lead or mercury in Illinois. The state joins several others that have enacted laws banning the manufacture, sale and use of lead wheel weights. California’s law went into effect on January 1, 2010. Maine, Vermont and Washington also ban the products, while Iowa, Maryland, New York, Rhode Island and Wisconsin have considered a ban. The automakers have already agreed to stop using lead weights as original equipment, and the three major manufacturers of wheel weights in the United States stopped distributing lead weights in 2009. The U.S. Environmental Protection Agency launched a voluntary nationwide initiative in 2008 and began a rulemaking process in 2009 that may eventually translate into a mandatory federal ban. The weights have been banned in the European Union since 2005. Auto makers, tire makers and the aftermarket are turning to three main substitute materials: steel, zinc or composites.

Louisiana Inspection Exemption:

A SEMA-supported bill to exempt antique vehicles 25 years old and older from the motor-vehicle inspection requirements was signed into law by Governor Bobby Jindal. Prior to the bill’s enactment, only vehicles 40 years old and older were exempted from testing. The bill makes the inspection exemption consistent with current state law defining an antique vehicle as a vehicle that is 25 years old or older and is used primarily for shows, parades, tours and other special uses and not for general transportation. Vehicles in Louisiana are subject to an annual vehicle inspection, including a safety equipment inspection and, for vehicles registered in selected parishes, an additional emissions inspection. The emissions inspection consists of a visual anti-tampering check and a gas cap integrity check. Vehicles manufactured in 1995 and later are also subject to an on-board diagnostic (OBD-II) emissions check.

New Jersey Emissions Exemption:

SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer has been sent to Governor Chris Christie for his signature and enactment into law. Current law exempts vehicles that are four model years old or newer. New Jersey already exempts historic (at least 25 years old) and collector (driven no more than 3,000 miles per year and insured for limited use) vehicles from emissions testing. The logic for this trend is clear: Such vehicles do not contribute in significant ways to air-quality problems. This logic applies equally to newer cars.

FEDERAL UPDATE

Bonus Depreciation:

The U.S. Senate included a SEMA-supported provision to allow businesses to write off 50% of the cost of newly purchased depreciable property as part of a larger bill to provide banks with access to funds intended for small-business loans. The legislation would create a $30 billion fund available to smaller financial institutions. Interest rates charged would be lowered if the banks loaned the monies to small businesses. The bill would also extend the bonus depreciation through 2010. In 2008 and 2009, all businesses were permitted to immediately write-off 50% of the cost of new equipment (“bonus depreciation”). The depreciation expired at the end of 2009. SEMA contends that the depreciation write-off encourages companies to invest in newer, more efficient equipment and spurs sales and creates jobs. The House and Senate are expected to complete action on the bill this summer.

Idaho Wilderness Legislation:

SEMA-opposed legislation has been introduced in the Senate to set aside 333,000 acres of wilderness in central Idaho. The “wilderness” designation is consequential since no mechanized activity is permitted on lands so designated. The issue is of keen interest to off-roaders and the SEMA-member companies that market products to those groups. Existing roads and trails would be closed as a result of the legislation, and a previously suggested compromise to create an off-highway vehicle park near Boise was dropped. Idaho already has 5 million acres of wilderness, second only to Alaska.

Website for Health Insurance Plans:

Small-business owners shopping for health insurance have a new tool to learn more about the health care options in their area. The government site www.healthcare.gov provides information on coverage options, health care providers and important dates for the implementation of the new health care law. The website identifies available insurance options for small-business owners and, beginning in October 2010, will allow users to compare prices between insurance companies tailored to their individual needs. The site currently provides information on 3,531 small-employer health insurance options and 2,030 individual health insurance plans.

Study on Small-Businesses Credit:

The Small Business Administration released a study that examines the types of credit used by small businesses, namely bank credits (loans or lines of credit) and trade credits (from suppliers). The report found that the two types of credit are complements, with many small firms using both types simultaneously. The study compares companies that use credit (leveraged) with those that do not (unleveraged). For more information, visit here.

Federal Trade Commission Guide to Correct Advertisements:

The Federal Trade Commission (FTC) published answers to frequently asked questions to help businesses better understand the FTC’s “Guides Concerning the Use of Endorsements and Testimonials in Advertising.” The guides were revised in October 2009 to clarify that they apply to all types of advertising, including via social media websites and blogs. For more information:
www.ftc.gov/bcp/edu/pubs/business/adv/bus71.pdf.

ProPledge Restyler Profile

Wed, 09/01/2010 - 15:08

SEMA News - September 2010

What Makes Automotive Essentials and ProPledge Work So Well?

SEMA News recently had the chance to catch up with long-time automotive restyler Jon Titman of Automotive Essentials, a ProPledge participant. Titman, the company’s vice president of sales and marketing, provided some insights into the services Automotive Essentials offers and how the business has benefitted since the inception of the ProPledge program three years ago.

For a detailed analysis of exactly what ProPledge is and its benefits to most SEMA-member companies, visit the ProPledge website or call 818/248-4449. Information about the program is constantly being updated, including the member listings.

SEMA News: Tell us a little about Automotive Essentials. How long has the company been involved in the restyling industry? How many employees do you have, and what are the most popular installations you perform on new vehicles?

Jon Titman: Automotive Essentials has been in business for nine years. Prior to opening it, Doug and Karla Perez worked for Sure Fit, an accessory installation company in northern Virginia. Doug was the sales representative, and Karla worked in the accounting department. I worked at E&G Classics for 26 years, the first six as the company’s local sales rep and then 20 years as the national sales manager. Between Doug and me, we have more than 40 years of experience in the restyling and accessory industry. Automotive Essentials has grown to be the largest restyling and automotive accessory installation center in the greater Washington, D.C., metropolitan area.

We employee 15 people and run as leanly as possible. Our techs are cross-trained and can work together in sunroof, leather, electronics and the other installations we do. The most popular products we currently install are leather interiors, sunroofs, navigation and in-vehicle entertainment systems, such as mobile video. Our techs are SEMA and ASE certified. That is something we are very proud of and is a key sales tool at dealerships.

SN: Automotive Essentials was one of the first installer members of the ProPledge program. How has the program made an impact on the business?

JT: ProPledge brings a high level of professionalism to our business. Dealers have viewed installers as some guys who work out of a two-bay garage installing products that many times they are not familiar with. The names of the manufacturers of various accessories were often unknown to them, and they had no idea of the quality of the installations or the abilities of the installers. ProPledge removes those doubts by showing the dealer in writing, in ads and by our explanation of the program that we take their concerns seriously and have properly addressed them.

SN: How has the ProPledge program helped with your dealer-related business?

JT: One of the largest mega dealers in our market made the decision to only do business with Automotive Essentials because of ProPledge. He saw the value of the quality of the products we install, the certifications of our installers and the three-year/36,000-mile nationwide warranty the program provides to his stores and his customers. We would not have earned the business of all his stores without ProPledge. His organization has become our largest account. ProPledge has also helped us to land one of the largest Toyota dealers in our market and a number of
other accounts.

SN: What elements of the ProPledge program are most satisfying to the dealers when your company is installing aftermarket parts on new vehicles?


	For more information regarding Automotive Essentials, call 301/ 231-5444 or visit www.automotiveessentials.com

JT: The recognized quality of the accessories we install, our installer certification and the ProPledge warranty. All of these combined help resolve the concerns of a dealer when having accessories installed on his or her vehicles.

SN: How has the ProPledge program changed over the last year to benefit member installers?

JT: Joe Sebergandio, the ProPledge operations director, has brought a high level of energy to the program and really listens to the concerns and ideas many of us have about ProPledge. His participation at this year’s NADA Show was a plus in educating dealers about the program.

SN: What would you tell a professional installer who is considering becoming a ProPledge member?

JT: Just join! We all need to raise the level of awareness of the professionalism of our industry and educate dealerships as to how we can assist them in selling more vehicles and generating additional profits. ProPledge helps remove the concerns the dealer has about accessories and can assist us all in landing more accounts and expanding our businesses.

SN: What types of new vehicles are the most popular in the restyling world of late?

JT: We are seeing a resurgence in the sales of domestic vehicles. As a result, we are doing more business with
those dealers. Crossovers have also become very popular, and we are installing leather and sunroofs in them. The Toyota Venza and the Chevrolet Equinox are very popular vehicles.

SN: What types of add-on restyling products are the most popular these days? Any trends or new items of note?

JT: The big sellers are sunroofs, leather, navigation and mobile entertainment. These items have been popular for many years and will continue to be. Every year, we go to the SEMA Show hoping to find the next big thing. In-vehicle TV was supposed to be the next hit, and it just hasn’t turned out that way. We are always looking.

Materials at the 2010 SEMA Show

Wed, 09/01/2010 - 15:08

SEMA News - September 2010

The SEMA Show is quickly approaching. Many have already finalized their travel arrangements, booked their hotels, confirmed their credentials and even mapped out their on-site strategy. With so much going on during the week, it’s important to have a list of required reading materials while at the Show. How do you plan to stay in the know during the SEMA Show?

To help ensure that you don’t miss out on the important happenings while in Las Vegas, take note of the following required reading materials.

SEMA Show Daily

Distributed Tuesday, Wednesday and Thursday of the SEMA Show, the SEMA Show Daily is the official newspaper of the event. Look for the publication each morning in kiosks near the entrance of each hall. You’ll get comprehensive information on the new-product winners, get a summary of the press conferences that took place and learn about the special events taking place that day. Digital editions will also be available at www.SEMAShow.com.

SEMA News-September 2010-Required Reading

Official SEMA Show Facebook Page

Find out what’s happening during the SEMA Show by following the Official SEMA Show Facebook page. Sign up as a fan of the page today (just search “SEMA Show” on Facebook), and learn about the news leading up to the event. You’ll get updates to special events, celebrity appearances and trend alerts. It’s one of the best ways to ensure you know what’s happening while it’s happening!

SEMA Show Directory

During the Show, the SEMA Show Directory is useful for looking up the booth numbers of the businesses you are targeting as well as for identifying first-time exhibitors. However, the SEMA Show Directory is a valuable resource that can be used well beyond the Show. Keep the SEMA Show Directory at arm’s length during the year to identify potential business partners and manufacturers. With a cross-reference listing, you can easily find manufacturers by product categories and market segments.

Magazine Bins

There are hundreds of automotive magazines that report on important and relevant news. Stop by the magazine bins located on the skybridge between north and south halls and pick up a free magazine. Various magazines will be on display and available, each focusing on a unique segment of the industry. Choose anything from off-road publications and sport-compact magazines to those that target the hot-rod or mobile-electronics markets.

A 2010 SEMA Show Preview

Wed, 09/01/2010 - 15:08

SEMA News - September 2010

By Chad Simon

Your Guide to the Industry’s Most Valuable Trade Show

Now it’s even easier to register for the 2010 SEMA Show to be held November 2–5. Simply visit www.SEMAShow.com.

Less than two months are left before automotive specialty-equipment industry exhibitors and buyers flock to Las Vegas for the 2010 SEMA Show, to be held Tuesday, November 2, through Friday, November 5. The 2009 Show drew more than 120,000 attendees—24% of whom were international buyers—and nearly 2,000 exhibiting companies. More than 1,400 customized vehicles and new products were on display, and this year promises to deliver even more technology and innovation, so don’t miss out on the action! The following list of programs and events—some of which are brand new—should provide a glimpse into what you can expect for the 2010 SEMA Show.

And don’t forget, it’s even easier to register for the 2010 SEMA Show. Simply visit www.SEMAShow.com, and look to the left side of the page. If you are an exhibitor, click “Exhibitor Registration.” If you are an attendee, click “Register for the Show.”

New Online Floorplan

To view the all-new and improved online floorplan, visit www.SEMAShow.com and click on the “Exhibitor List/Floorplan” tab on the left side of the page. There, you will be able to select which halls you would like to view, check out the names of exhibitors you want to visit and their locations. You can also search by exhibitor category and booth number or section.

The New Global Tire Expo—Powered by TIA

For 2010, SEMA and the Tire Industry Association (TIA) have created a tire industry-only section of the SEMA Show called the Global Tire Expo—Powered by TIA. The new Expo will be open to all segments of the tire industry, including automotive, commercial, retreading, recycling and more.

With 200 exhibiting companies, the Expo will also include expanded educational session tracks targeted to the tire market. The tracks are “TPMS at 10,” “Tires at 2,” “Management at 4,” and “Truck Tires @ 10.”

Every day of the Show, each track will feature a session relevant to tire dealers and will be led by knowledgeable experts in the tire industry. The educational sessions will be located in the skybridge between the Central and South Halls of the Las Vegas Convention Center (LVCC).

“By working with TIA, we have created the Global Tire Expo to meet the needs of the tire industry,” said Chris Kersting, SEMA president and CEO. “We’re excited and confident that the 2010 SEMA Show and the Global Tire Expo will be more meaningful and relevant than ever before for tire manufacturers and buyers.”

Kersting pointed out that the SEMA Show has the added benefit of drawing more than 50,000 buyers from all over the world, including those not currently in the tire market. “Many buyers at the SEMA Show are looking to expand their product lines to include tire-related products,” he said. “The dedicated floor section and the other new programs will help buyers discover the potential that the tire industry has to offer.”

For the latest Expo information and updates, visit the “Events” section of www.tireindustry.org.

New Products Showcase

”The New Products Showcase is arguably the single best, most effective tool exhibitors have to reach the largest audience possible,” said Peter MacGillivray, SEMA vice president of communications and events. Exhibitors may enter one product category at no cost if submitted before October 8, by visiting www.SEMAShow.com/newproducts.

With nearly 2,000 companies exhibiting throughout 1 million sq. ft. of the LVCC, the New Products Showcase makes it easy for buyers to get a quick glimpse of what’s new and debuting at the Show.

“The New Products Showcase is arguably the single best, most effective tool exhibitors have to reach the largest audience possible,” said Peter MacGillivray, SEMA vice president of communications and events.

“When you consider that every exhibitor can enter a product at absolutely no cost, it’s baffling to me that someone would pass up the opportunity.”

In addition to displaying products in a high-profile area of the SEMA Show, entering the SEMA Show New Products Showcase provides exhibitors with an opportunity to win a SEMA New Product Award. Winners are announced at the New Products Breakfast before the opening of the Show. In addition, professional photographs are taken of every entry and are provided to domestic and international media throughout the year.

“The New Products Breakfast is the pep rally before the Show,” MacGillivray said. “It’s valuable for business reasons because attendees can view the products the judges selected as the best products for the Show. The leading buyers who attend are looking to connect with exhibitors.”

Exhibitors may now enter one product category at no cost if submitted before October 8, by visiting here.

First-Time Exhibitors

The number of first-time exhibitors signed up to attend the 2010 SEMA Show had grown to more than 250 at press time. Based on previous SEMA Shows, this number should double before November 2. Each year, SEMA welcomes hundreds of new exhibitors to the Show, and this year is no exception. These leading-edge exhibitors will be displaying all-new product offerings that represent new sales and profit opportunities for retailers, jobbers and distributors. Check out a list of all exhibitors here.

Powersports Dealer Update Workshops

Presented by Gart Sutton & Associates and open to all powersports dealers, the Powersports Dealer Update Workshops at the 2010 SEMA Show will provide high-level training from industry experts. Eight powersports dealer-specific education workshops will cover essential parts and accessories, finance and insurance, sales, service and dealership-management topics. Registration includes two industry keynote speaker lunches and a special state-of-the-industry powersports panel.

“I am excited about our partnership with Gart Sutton & Associates, a highly respected firm that drives top powersports, marine and recreational vehicle dealers to superior operations, sales and profitability,” said Dan Hobgood, SEMA’s senior director of marketing. “Sutton and his crew transform real-world experiences into world-class education.”

Chris Kersting, SEMA president and CEO, addresses the crowd at last year’s Dealer Day Conference, held during the 2009 SEMA Show. This year’s conference will focus on the three key components of successful dealer accessory programs.

The Powersports Dealer Update Workshops will take place Monday, November 1, and Tuesday, November 2, at the Renaissance Hotel in Ballrooms 1–3. For more information, visit here.

Dealer Day Conference

The 2010 SEMA Show will feature a targeted program specifically for auto dealers on Wednesday, November 3, 2010, from 8:30 a.m.–1:45 p.m. at the Las Vegas Hilton, Pavilion 1. The program marks the third consecutive year that the Dealer Day Conference will be held at the SEMA Show.

“The number of dealers attending the SEMA Show continues to grow each year, and during the past two years that we’ve held a dedicated Dealer Day Conference, we’ve seen more and more participants express a real interest in incorporating an accessories program into their businesses,” Kersting said. “We’re excited about the 2010 program, where dealers will be able to learn how to increase sales and profits through accessories.”

From integration and the sales process to profit generation, the program provides dealers with practical information and resources that will serve as a catalyst in their daily operations. Also featured will be an operations panel consisting of a dealer principal or general manager, a service manager, a parts manager, a new- and used-car sales manager, an office manager and a finance manager. Participants will receive tools, resources and best practices for starting a successful accessories program as well as for enhancing an existing program.

“Dealer Day represents a new business opportunity for auto dealers,” MacGillivray added. “The dealer business is evolving, and they are coming to our industry for more revenue and business opportunities than ever before.”

SCRS Repairer-Driven Education

The Society of Collision Repair Specialists (SCRS) educational track, entitled Repairer-Driven Education (RDE), will feature more than 21 seminars, many of which are being offered for the first time during the 2010 SEMA Show. All of the seminars will specifically focus on issues and information that are relevant to collision-repair professionals operating in today’s marketplace.

The SEMA Businesswomen’s Network’s annual Speed Networking Breakfast award ceremony has become one of the premier, must-attend networking events during SEMA Show week.

The RDE track, being conducted between 8:00 a.m.–3:00 p.m. on Thursday, November 4, and Friday, November 5, will be launched with an inspiring opening seminar conducted by Charles Coonradt, author of The Game of Work, Managing the Obvious and The Better People Leader.

The two-day RDE program will also be packed full of information from speakers such as Mike Anderson; Toby Chess; Erica Eversman, J.D.; John Sweigart; Patrick McGuire, Esq.; Steven Feltovich; Tim Ronak; Greg Horn and many more. Seminar topics will include how to legally and practically address steering; getting ready for transitioning your business to a lean model; understanding and performing OEM-recommended repairs; finding out how “quirky” customers can be your most valuable resources; how a lack of understanding of wage and hour compliance could devastate your business; and a look at how to drive business to your door through social networking media.

SBN Speed Networking Breakfast

The SEMA Businesswomen’s Network’s annual Speed Networking Breakfast award ceremony has become one of the premier networking events during SEMA Show week. Each year, attendees finish the Speed Networking Breakfast with quality industry contacts, allowing them to create new relationships and new business opportunities.

At the 2009 Industry Awards Banquet, Doug Evans of Source Interlink Media (left) received the 2009 SEMA Person of the Year award from 2008 winner Patrick Judge. The 2010 Banquet will be held on Thursday, November 4, with doors opening at 6:30 p.m. at the Las Vegas Hilton. The banquet starts at 7:30 p.m.; tickets are required.

Held in the Las Vegas Hilton, Ballroom A on Thursday, November 4, from 7:15 a.m.–9:00 a.m., this year’s breakfast will include the popular Speed Networking session and presentation of the Athena, Woman of the Year and Mentor of the Year awards as well as a delicious hot breakfast and a great bag full of goodies. Only 250 reservations will be accepted. They are available on a first-come, first-serve basis this year. Visit here for more information.

Industry Awards Banquet

The industry’s most prestigious awards—including SEMA Person of the Year, WD of the Year and Rep of the Year—are presented at the SEMA Industry Awards Banquet. In addition, the most recent inductees to the SEMA Hall of Fame will be honored. Join industry leaders as thousands come together to celebrate the innovation and accomplishments of the automotive specialty-equipment industry.

“The Awards Banquet represents more than the Show,” MacGillivray said. “It’s when the industry comes together to celebrate milestones and accomplishments. The many personalities of the people participating add another dynamic to the week’s activities.”

The event will be held Thursday, November 4, starting with a cocktail reception at 6:30 p.m. at the Las Vegas Hilton. The banquet starts at 7:30 p.m.; tickets are required.

For the most up-to-date information about the 2010 SEMA Show and to register, visit www.SEMAShow.com.