SEMA News - June 2010 

Economy and Aging Consumer Base Bring Changes

By Steve Campbell

	Musclecar builders who would have shunned anything less than a strict restoration are now employing techniques that were once reserved strictly for street rods, with upgraded suspension and brakes, more highly refined engines, greater interior comfort, better gauges and real climate control systems.

Each of us may have different definitions of what constitutes a “hot rod,” but we all know one when we see it. The classification can encompass anything from a ’27 T-bucket roadster to a current-model Mustang, from a ’67 Camaro to a ’92 pickup, from a four-door station wagon to an early-‘80s Malibu. Only a few years ago, those last two might have raised some eyebrows among performance aficionados, but the wobbly economy and an aging consumer base have led to even greater latitude in what hot rodders consider acceptable raw material, and the segment’s manufacturers have obliged with an ever-expanding portfolio of parts from which to choose.  “The performance product industry is as strong as ever,” said Chuck Lenhart, sales representative for R&R Marketing Consultants Inc. “Despite the economy, performance businesses found ways to keep making outstanding new products and move them out the door. We are seeing more and more musclecars on the streets and at the car shows, which is a sign that people are driving them again. It’s time to get the hot rod out of the garage, shake some windows and wake the neighbors!”

Dennis Overholser, executive vice president of Painless Performance, attributes at least some of the market resilience to America’s large but aging post World War II generation. “Baby boomers are buying the cars they grew up with and restoring them to drive on a regular basis,” he said of the street-machine segment, while noting that street-rod builders are revisiting time-honored conventions. “Traditional styling is returning,” he said. “Billet is slowly going away in favor of paint. Steel and wire wheels are also on the comeback.”

	Cars that used to be reserved for shows or the drags are now seeing service in autocrossing, road racing and even at driving schools. Consumers are more aware of the entire performance package.

Perhaps the most prevalent trend on the hot-rod scene today is the metamorphosis from 100-point musclecar restorations toward the customization of vehicles that were less-than-stellar performers in stock trim. Vehicles that came off the assembly lines with anemic V8s or even V6s have become fodder for builders who are still seeking performance but have a diminished account from which to bankroll the effort.

“There have been some very nice ‘true musclecar’ restorations done lately, and I do not think that will ever go away,” said Del Austin, director of sales for Egge Machine & Speed, “but turning a musclecar into a restomod is much more affordable, drivable and enjoyable. They are being fitted with all the latest drivability features, and the engines are being used pretty much as crated—cleaned up and dressed up but pretty stock.” 

Musclecar builders who would have shunned anything less than a strict restoration are now employing techniques that were once reserved strictly for street rods, with upgraded suspension and brakes, more highly refined engines, greater interior comfort, better gauges and real climate control systems.

“They’re basically building a street rod out of a musclecar,” said Rick Love, executive vice president of Vintage Air Inc. “The only things they’re keeping from the original musclecar are the body and basic frame. Years ago, most of those cars were more restored; a lot of them are being upgraded. That seems to be the real area of growth right now.”

Love also said that today’s hot rodders have more refined tastes, access to more information and a higher degree of sophistication.

“If your daily driver is a late-model Mustang, Camaro or even a BMW, you’re going to want the hot rod you drive on the weekend to be more like a late-model car,” he said. “We know now what good steering is, what good brakes are, what real climate control or real handling is. You may like the look of the old car, but you want it to be on par with what’s available today if you’re going to drive it.”

And driving has become the name of the game. While there is still a highly respected contingent of car builders who trailer their creations to elite competitions and vie for high-end titles, such as America’s Most Beautiful Roadster or the Ridler Award, the mainstream has returned to the road. Car shows are replete these days with vehicles that arrived under their own power, and hot-rod competitions have also gone from strictly straight to maximum curves.

“People are using their cars in a greater variety of ways,” said Johnny Hunkins, editor of Source Interlink Media's Popular Hot Rodding. “They used to compete at just car shows and drags, but now they’re into autocrossing, road racing and even driving schools. They’re more conscious of the entire performance package, and they’re willing to tune them, break parts and make them better.”

In the street-rod market, tradition has resurfaced. Tried-and-true techniques have come back to the fore along with less-expensive buildups.

			“Education of dealers, installers and warehouse distributors has moved farther in the past three years than in the previous 10. The market is wide open to all manufacturers that want to listen to the consumer and build products that fit, work, are priced right and have factory backing.” —John Menzler, Comp Cams

“You see a lot more mainstream cars, such as ’32 to ’40 Fords, with straight axles, coil-overs and small-block engines,” said Bret Voelkel, president of RideTech. “It wasn’t unusual 10 years ago to see a $100,000 street rod that was all hand carved, hand rolled, hand everything. Now you can take your pick of a really nice steel street rod for $50,000–$60,000.” Voelkel also noted that the National Street Rod Association has opened its ranks to a sliding 30-year scale rather than only ’48-and-older vehicles, again demonstrating that the limits of acceptability have broadened—as has the desire for a little more luxury.

“Street rods used to be built solely for looks, not creature comforts,” said S. Kellie Colf, market development manager for Eaton Detroit Spring Inc. “They were widely built for limited mileage—a lifespan of 30,000 or so miles—but customers are now keeping their cars longer and are looking for improvements in ride and handling.”

Specialty-equipment manufacturers are taking advantage of the increasing drivability of hot rods by investing more in consumer events, said Greg Parker, sales representative for Kunzman & Associates. “They spend a lot of money in magazines to get to the consumer,” he said, “but they’ve also decided that they need to be in front of their customers in person. Consumers want to confirm what they’ve read to find out if what they’re considering will fit with their combination. The manufacturers have realized that they need to be at those consumer events so they can talk to the public and provide that confirmation.”

The movement toward better drivability and more comfort has been abetted by technology. Electronic systems in particular have improved every facet of performance. In addition, high-tech electronics in the form or computer-aided design and computer-aided manufacturing allow new products to come on line in a fraction of the time it used to take.

“Now you can draw and design a product and then bring it to life a few hours later,” said Michael Jonas, president of Stainless Steel Brakes Corporation. “We’ve seen that particularly in the development of suspension, which also affects our brake programs. Something that might have taken a year or more to develop is now being rapid-prototyped in as little as a week. That allows us to do more product development and testing.”

Computers have been a boon to hot-rod builders and performance parts manufacturers, but they have also altered the way people buy, use and even view cars and transportation. Obtaining a driver’s license used to be a right of passage, allowing young people to expand their horizons and broaden their social networks. Now those networks are being formed and traversed on the Internet, and at least two peripheral hot-rod segments that were once popular among younger buyers have suffered: late-model sport trucks and import tuning.

“A lot of vendors who were heavily invested in the import market were caught flat-footed,” said Hunkins. “We’ve seen quite a drop in sales for that market due to the economy. A lot of the price-sensitive youth hobbyists have gone away, substituting music or technology and not working with their cars. On the other hand, at least two of those companies that typically hadn’t been involved with our part of the market have started offering products for late-model musclecars.”

The Internet has also wrought industry-altering changes in the way products are researched, priced and marketed. Voelkel said that his print ads are now simply signposts that point the way to RideTech’s website, where each market segment is given its own section. “We can tell the whole story on the website,” he said. “Print ads are there simply to pique the consumer’s interest.”

Love said that computers and digital photography have allowed a more level marketing field. Just as they provide accelerated manufacturing processes, computers permit even small companies to produce high-quality advertising and promotional materials. “The advent of digital photography and Photoshop allow you to know immediately if your photo is good,” he explained. “The end consumer can now get a better feel for what he’s purchasing.”

	Market forces have provided far greater latitude about what may be acceptable as a “hot rod,” and the segment’s manufacturers have obliged with an ever-expanding portfolio of parts from which to choose.

Computerization has led to a revolution on the retail side in a number of different ways, as well. The market has become fragmented as small manufacturers target a select array of vehicles—sometimes only a single model—and produce parts for that specific niche. Where brick-and-mortar speed shops once catered to every segment of the hot-rod market, specialized Internet retailers today specialize in only a handful of products.

“Many businesses are now doing only drop shipments,” said Hunkins. “They take the orders, and the products are shipped direct from the manufacturer. It’s become a very compartmentalized hobby where special pieces are manufactured and marketed with very little cost.”

Retailers that do stock extensive parts lines must maintain a thorough inventory and good communications with their suppliers, said Jonas. They may otherwise miss sales either because they don’t know what suppliers have available or because they don’t have a product on their shelves.

“Education is the key to product sales and to keeping the customer,” added John Menzler of Comp Cams. “Education of dealers, installers and warehouse distributors has moved farther in the past three years than in the previous 10. The market is wide open to all manufacturers that want to listen to the consumer and build products that fit, work, are priced right and have factory backing.”

Manufacturer education is all the more critical in a market segment that mixes high-tech computerized systems with older vehicles that were originally less refined. Retailers and manufacturers have learned to rely upon each other to ensure that their customers receive the right parts for a given application.

	Electronic systems have improved every facet of performance. In addition to electronic fuel injection and drive-by-wire systems, high-tech electronics in the form or computer-aided design and computer-aided manufacturing allow new products to come on line in a fraction of the time it used to take.

“We listen to our dealers and retailers just as much as we try to give them information,” Love said. “Our customers are a lot better informed now than they were years ago. They use the Internet and read magazines, and they’re a lot more careful about where they spend their dollars. When they call a retailer, they expect the person they’re talking with to be as versed on the parts as they are. We have two-day dealer meetings and go to our larger dealers to promote product education. We try to keep our dealers as well-informed as we can. The Internet has made the world smaller.”

The world has also encroached on a hot-rod market that was once dominated by U.S.-based manufacturing. As trade rules have become more lenient, intellectual property rights and trademark violations have become more commonplace.

“The import of off-shore parts will be a never-ending problem,” Colf said. “But consumers and business-to-business customers soon learn the difference between high-quality and low-quality parts. A part that should have been relatively plug-and-play requires extra man-hours trying to either make it fit and work or having to engineer other systems to get it to work. People quickly realize that they could have had a no-fuss installation for just a few extra dollars, which usually turns out to be less than what they spent on extra parts or manpower because of the cheaper part.”

Colf noted that legislation within our own boundaries also bears watching. “We as an industry need to continue to be aware of any legislation affecting our hobby and make sure our voices are heard,” she said. “Unfavorable legislation alone could be enough to kill the hobby.”

Vigilance must be coupled with quality products, knowledgeable sales teams and unending innovation. Hot-rod enthusiasts thrive on building, improving and using their vehicles.

“If you can provide information—advice on how to use a particular product, how to install it, how it fits an application—customers will gravitate to you,” Voelkel said. “Offer a different finish, a different performance level, expedite shipping or figure out how to make something less expensive without sacrificing quality or service. The people who can do that are going to have the most to offer the customer.” 

SEMA News - June 2010 

Economy and Aging Consumer Base Bring Changes

By Steve Campbell

	Musclecar builders who would have shunned anything less than a strict restoration are now employing techniques that were once reserved strictly for street rods, with upgraded suspension and brakes, more highly refined engines, greater interior comfort, better gauges and real climate control systems.

Each of us may have different definitions of what constitutes a “hot rod,” but we all know one when we see it. The classification can encompass anything from a ’27 T-bucket roadster to a current-model Mustang, from a ’67 Camaro to a ’92 pickup, from a four-door station wagon to an early-‘80s Malibu. Only a few years ago, those last two might have raised some eyebrows among performance aficionados, but the wobbly economy and an aging consumer base have led to even greater latitude in what hot rodders consider acceptable raw material, and the segment’s manufacturers have obliged with an ever-expanding portfolio of parts from which to choose.  “The performance product industry is as strong as ever,” said Chuck Lenhart, sales representative for R&R Marketing Consultants Inc. “Despite the economy, performance businesses found ways to keep making outstanding new products and move them out the door. We are seeing more and more musclecars on the streets and at the car shows, which is a sign that people are driving them again. It’s time to get the hot rod out of the garage, shake some windows and wake the neighbors!”

Dennis Overholser, executive vice president of Painless Performance, attributes at least some of the market resilience to America’s large but aging post World War II generation. “Baby boomers are buying the cars they grew up with and restoring them to drive on a regular basis,” he said of the street-machine segment, while noting that street-rod builders are revisiting time-honored conventions. “Traditional styling is returning,” he said. “Billet is slowly going away in favor of paint. Steel and wire wheels are also on the comeback.”

	Cars that used to be reserved for shows or the drags are now seeing service in autocrossing, road racing and even at driving schools. Consumers are more aware of the entire performance package.

Perhaps the most prevalent trend on the hot-rod scene today is the metamorphosis from 100-point musclecar restorations toward the customization of vehicles that were less-than-stellar performers in stock trim. Vehicles that came off the assembly lines with anemic V8s or even V6s have become fodder for builders who are still seeking performance but have a diminished account from which to bankroll the effort.

“There have been some very nice ‘true musclecar’ restorations done lately, and I do not think that will ever go away,” said Del Austin, director of sales for Egge Machine & Speed, “but turning a musclecar into a restomod is much more affordable, drivable and enjoyable. They are being fitted with all the latest drivability features, and the engines are being used pretty much as crated—cleaned up and dressed up but pretty stock.” 

Musclecar builders who would have shunned anything less than a strict restoration are now employing techniques that were once reserved strictly for street rods, with upgraded suspension and brakes, more highly refined engines, greater interior comfort, better gauges and real climate control systems.

“They’re basically building a street rod out of a musclecar,” said Rick Love, executive vice president of Vintage Air Inc. “The only things they’re keeping from the original musclecar are the body and basic frame. Years ago, most of those cars were more restored; a lot of them are being upgraded. That seems to be the real area of growth right now.”

Love also said that today’s hot rodders have more refined tastes, access to more information and a higher degree of sophistication.

“If your daily driver is a late-model Mustang, Camaro or even a BMW, you’re going to want the hot rod you drive on the weekend to be more like a late-model car,” he said. “We know now what good steering is, what good brakes are, what real climate control or real handling is. You may like the look of the old car, but you want it to be on par with what’s available today if you’re going to drive it.”

And driving has become the name of the game. While there is still a highly respected contingent of car builders who trailer their creations to elite competitions and vie for high-end titles, such as America’s Most Beautiful Roadster or the Ridler Award, the mainstream has returned to the road. Car shows are replete these days with vehicles that arrived under their own power, and hot-rod competitions have also gone from strictly straight to maximum curves.

“People are using their cars in a greater variety of ways,” said Johnny Hunkins, editor of Source Interlink Media's Popular Hot Rodding. “They used to compete at just car shows and drags, but now they’re into autocrossing, road racing and even driving schools. They’re more conscious of the entire performance package, and they’re willing to tune them, break parts and make them better.”

In the street-rod market, tradition has resurfaced. Tried-and-true techniques have come back to the fore along with less-expensive buildups.

			“Education of dealers, installers and warehouse distributors has moved farther in the past three years than in the previous 10. The market is wide open to all manufacturers that want to listen to the consumer and build products that fit, work, are priced right and have factory backing.” —John Menzler, Comp Cams

“You see a lot more mainstream cars, such as ’32 to ’40 Fords, with straight axles, coil-overs and small-block engines,” said Bret Voelkel, president of RideTech. “It wasn’t unusual 10 years ago to see a $100,000 street rod that was all hand carved, hand rolled, hand everything. Now you can take your pick of a really nice steel street rod for $50,000–$60,000.” Voelkel also noted that the National Street Rod Association has opened its ranks to a sliding 30-year scale rather than only ’48-and-older vehicles, again demonstrating that the limits of acceptability have broadened—as has the desire for a little more luxury.

“Street rods used to be built solely for looks, not creature comforts,” said S. Kellie Colf, market development manager for Eaton Detroit Spring Inc. “They were widely built for limited mileage—a lifespan of 30,000 or so miles—but customers are now keeping their cars longer and are looking for improvements in ride and handling.”

Specialty-equipment manufacturers are taking advantage of the increasing drivability of hot rods by investing more in consumer events, said Greg Parker, sales representative for Kunzman & Associates. “They spend a lot of money in magazines to get to the consumer,” he said, “but they’ve also decided that they need to be in front of their customers in person. Consumers want to confirm what they’ve read to find out if what they’re considering will fit with their combination. The manufacturers have realized that they need to be at those consumer events so they can talk to the public and provide that confirmation.”

The movement toward better drivability and more comfort has been abetted by technology. Electronic systems in particular have improved every facet of performance. In addition, high-tech electronics in the form or computer-aided design and computer-aided manufacturing allow new products to come on line in a fraction of the time it used to take.

“Now you can draw and design a product and then bring it to life a few hours later,” said Michael Jonas, president of Stainless Steel Brakes Corporation. “We’ve seen that particularly in the development of suspension, which also affects our brake programs. Something that might have taken a year or more to develop is now being rapid-prototyped in as little as a week. That allows us to do more product development and testing.”

Computers have been a boon to hot-rod builders and performance parts manufacturers, but they have also altered the way people buy, use and even view cars and transportation. Obtaining a driver’s license used to be a right of passage, allowing young people to expand their horizons and broaden their social networks. Now those networks are being formed and traversed on the Internet, and at least two peripheral hot-rod segments that were once popular among younger buyers have suffered: late-model sport trucks and import tuning.

“A lot of vendors who were heavily invested in the import market were caught flat-footed,” said Hunkins. “We’ve seen quite a drop in sales for that market due to the economy. A lot of the price-sensitive youth hobbyists have gone away, substituting music or technology and not working with their cars. On the other hand, at least two of those companies that typically hadn’t been involved with our part of the market have started offering products for late-model musclecars.”

The Internet has also wrought industry-altering changes in the way products are researched, priced and marketed. Voelkel said that his print ads are now simply signposts that point the way to RideTech’s website, where each market segment is given its own section. “We can tell the whole story on the website,” he said. “Print ads are there simply to pique the consumer’s interest.”

Love said that computers and digital photography have allowed a more level marketing field. Just as they provide accelerated manufacturing processes, computers permit even small companies to produce high-quality advertising and promotional materials. “The advent of digital photography and Photoshop allow you to know immediately if your photo is good,” he explained. “The end consumer can now get a better feel for what he’s purchasing.”

	Market forces have provided far greater latitude about what may be acceptable as a “hot rod,” and the segment’s manufacturers have obliged with an ever-expanding portfolio of parts from which to choose.

Computerization has led to a revolution on the retail side in a number of different ways, as well. The market has become fragmented as small manufacturers target a select array of vehicles—sometimes only a single model—and produce parts for that specific niche. Where brick-and-mortar speed shops once catered to every segment of the hot-rod market, specialized Internet retailers today specialize in only a handful of products.

“Many businesses are now doing only drop shipments,” said Hunkins. “They take the orders, and the products are shipped direct from the manufacturer. It’s become a very compartmentalized hobby where special pieces are manufactured and marketed with very little cost.”

Retailers that do stock extensive parts lines must maintain a thorough inventory and good communications with their suppliers, said Jonas. They may otherwise miss sales either because they don’t know what suppliers have available or because they don’t have a product on their shelves.

“Education is the key to product sales and to keeping the customer,” added John Menzler of Comp Cams. “Education of dealers, installers and warehouse distributors has moved farther in the past three years than in the previous 10. The market is wide open to all manufacturers that want to listen to the consumer and build products that fit, work, are priced right and have factory backing.”

Manufacturer education is all the more critical in a market segment that mixes high-tech computerized systems with older vehicles that were originally less refined. Retailers and manufacturers have learned to rely upon each other to ensure that their customers receive the right parts for a given application.

	Electronic systems have improved every facet of performance. In addition to electronic fuel injection and drive-by-wire systems, high-tech electronics in the form or computer-aided design and computer-aided manufacturing allow new products to come on line in a fraction of the time it used to take.

“We listen to our dealers and retailers just as much as we try to give them information,” Love said. “Our customers are a lot better informed now than they were years ago. They use the Internet and read magazines, and they’re a lot more careful about where they spend their dollars. When they call a retailer, they expect the person they’re talking with to be as versed on the parts as they are. We have two-day dealer meetings and go to our larger dealers to promote product education. We try to keep our dealers as well-informed as we can. The Internet has made the world smaller.”

The world has also encroached on a hot-rod market that was once dominated by U.S.-based manufacturing. As trade rules have become more lenient, intellectual property rights and trademark violations have become more commonplace.

“The import of off-shore parts will be a never-ending problem,” Colf said. “But consumers and business-to-business customers soon learn the difference between high-quality and low-quality parts. A part that should have been relatively plug-and-play requires extra man-hours trying to either make it fit and work or having to engineer other systems to get it to work. People quickly realize that they could have had a no-fuss installation for just a few extra dollars, which usually turns out to be less than what they spent on extra parts or manpower because of the cheaper part.”

Colf noted that legislation within our own boundaries also bears watching. “We as an industry need to continue to be aware of any legislation affecting our hobby and make sure our voices are heard,” she said. “Unfavorable legislation alone could be enough to kill the hobby.”

Vigilance must be coupled with quality products, knowledgeable sales teams and unending innovation. Hot-rod enthusiasts thrive on building, improving and using their vehicles.

“If you can provide information—advice on how to use a particular product, how to install it, how it fits an application—customers will gravitate to you,” Voelkel said. “Offer a different finish, a different performance level, expedite shipping or figure out how to make something less expensive without sacrificing quality or service. The people who can do that are going to have the most to offer the customer.” 

SEMA News - June 2010 

Economy and Aging Consumer Base Bring Changes

By Steve Campbell

	Musclecar builders who would have shunned anything less than a strict restoration are now employing techniques that were once reserved strictly for street rods, with upgraded suspension and brakes, more highly refined engines, greater interior comfort, better gauges and real climate control systems.

Each of us may have different definitions of what constitutes a “hot rod,” but we all know one when we see it. The classification can encompass anything from a ’27 T-bucket roadster to a current-model Mustang, from a ’67 Camaro to a ’92 pickup, from a four-door station wagon to an early-‘80s Malibu. Only a few years ago, those last two might have raised some eyebrows among performance aficionados, but the wobbly economy and an aging consumer base have led to even greater latitude in what hot rodders consider acceptable raw material, and the segment’s manufacturers have obliged with an ever-expanding portfolio of parts from which to choose.  “The performance product industry is as strong as ever,” said Chuck Lenhart, sales representative for R&R Marketing Consultants Inc. “Despite the economy, performance businesses found ways to keep making outstanding new products and move them out the door. We are seeing more and more musclecars on the streets and at the car shows, which is a sign that people are driving them again. It’s time to get the hot rod out of the garage, shake some windows and wake the neighbors!”

Dennis Overholser, executive vice president of Painless Performance, attributes at least some of the market resilience to America’s large but aging post World War II generation. “Baby boomers are buying the cars they grew up with and restoring them to drive on a regular basis,” he said of the street-machine segment, while noting that street-rod builders are revisiting time-honored conventions. “Traditional styling is returning,” he said. “Billet is slowly going away in favor of paint. Steel and wire wheels are also on the comeback.”

	Cars that used to be reserved for shows or the drags are now seeing service in autocrossing, road racing and even at driving schools. Consumers are more aware of the entire performance package.

Perhaps the most prevalent trend on the hot-rod scene today is the metamorphosis from 100-point musclecar restorations toward the customization of vehicles that were less-than-stellar performers in stock trim. Vehicles that came off the assembly lines with anemic V8s or even V6s have become fodder for builders who are still seeking performance but have a diminished account from which to bankroll the effort.

“There have been some very nice ‘true musclecar’ restorations done lately, and I do not think that will ever go away,” said Del Austin, director of sales for Egge Machine & Speed, “but turning a musclecar into a restomod is much more affordable, drivable and enjoyable. They are being fitted with all the latest drivability features, and the engines are being used pretty much as crated—cleaned up and dressed up but pretty stock.” 

Musclecar builders who would have shunned anything less than a strict restoration are now employing techniques that were once reserved strictly for street rods, with upgraded suspension and brakes, more highly refined engines, greater interior comfort, better gauges and real climate control systems.

“They’re basically building a street rod out of a musclecar,” said Rick Love, executive vice president of Vintage Air Inc. “The only things they’re keeping from the original musclecar are the body and basic frame. Years ago, most of those cars were more restored; a lot of them are being upgraded. That seems to be the real area of growth right now.”

Love also said that today’s hot rodders have more refined tastes, access to more information and a higher degree of sophistication.

“If your daily driver is a late-model Mustang, Camaro or even a BMW, you’re going to want the hot rod you drive on the weekend to be more like a late-model car,” he said. “We know now what good steering is, what good brakes are, what real climate control or real handling is. You may like the look of the old car, but you want it to be on par with what’s available today if you’re going to drive it.”

And driving has become the name of the game. While there is still a highly respected contingent of car builders who trailer their creations to elite competitions and vie for high-end titles, such as America’s Most Beautiful Roadster or the Ridler Award, the mainstream has returned to the road. Car shows are replete these days with vehicles that arrived under their own power, and hot-rod competitions have also gone from strictly straight to maximum curves.

“People are using their cars in a greater variety of ways,” said Johnny Hunkins, editor of Source Interlink Media's Popular Hot Rodding. “They used to compete at just car shows and drags, but now they’re into autocrossing, road racing and even driving schools. They’re more conscious of the entire performance package, and they’re willing to tune them, break parts and make them better.”

In the street-rod market, tradition has resurfaced. Tried-and-true techniques have come back to the fore along with less-expensive buildups.

			“Education of dealers, installers and warehouse distributors has moved farther in the past three years than in the previous 10. The market is wide open to all manufacturers that want to listen to the consumer and build products that fit, work, are priced right and have factory backing.” —John Menzler, Comp Cams

“You see a lot more mainstream cars, such as ’32 to ’40 Fords, with straight axles, coil-overs and small-block engines,” said Bret Voelkel, president of RideTech. “It wasn’t unusual 10 years ago to see a $100,000 street rod that was all hand carved, hand rolled, hand everything. Now you can take your pick of a really nice steel street rod for $50,000–$60,000.” Voelkel also noted that the National Street Rod Association has opened its ranks to a sliding 30-year scale rather than only ’48-and-older vehicles, again demonstrating that the limits of acceptability have broadened—as has the desire for a little more luxury.

“Street rods used to be built solely for looks, not creature comforts,” said S. Kellie Colf, market development manager for Eaton Detroit Spring Inc. “They were widely built for limited mileage—a lifespan of 30,000 or so miles—but customers are now keeping their cars longer and are looking for improvements in ride and handling.”

Specialty-equipment manufacturers are taking advantage of the increasing drivability of hot rods by investing more in consumer events, said Greg Parker, sales representative for Kunzman & Associates. “They spend a lot of money in magazines to get to the consumer,” he said, “but they’ve also decided that they need to be in front of their customers in person. Consumers want to confirm what they’ve read to find out if what they’re considering will fit with their combination. The manufacturers have realized that they need to be at those consumer events so they can talk to the public and provide that confirmation.”

The movement toward better drivability and more comfort has been abetted by technology. Electronic systems in particular have improved every facet of performance. In addition, high-tech electronics in the form or computer-aided design and computer-aided manufacturing allow new products to come on line in a fraction of the time it used to take.

“Now you can draw and design a product and then bring it to life a few hours later,” said Michael Jonas, president of Stainless Steel Brakes Corporation. “We’ve seen that particularly in the development of suspension, which also affects our brake programs. Something that might have taken a year or more to develop is now being rapid-prototyped in as little as a week. That allows us to do more product development and testing.”

Computers have been a boon to hot-rod builders and performance parts manufacturers, but they have also altered the way people buy, use and even view cars and transportation. Obtaining a driver’s license used to be a right of passage, allowing young people to expand their horizons and broaden their social networks. Now those networks are being formed and traversed on the Internet, and at least two peripheral hot-rod segments that were once popular among younger buyers have suffered: late-model sport trucks and import tuning.

“A lot of vendors who were heavily invested in the import market were caught flat-footed,” said Hunkins. “We’ve seen quite a drop in sales for that market due to the economy. A lot of the price-sensitive youth hobbyists have gone away, substituting music or technology and not working with their cars. On the other hand, at least two of those companies that typically hadn’t been involved with our part of the market have started offering products for late-model musclecars.”

The Internet has also wrought industry-altering changes in the way products are researched, priced and marketed. Voelkel said that his print ads are now simply signposts that point the way to RideTech’s website, where each market segment is given its own section. “We can tell the whole story on the website,” he said. “Print ads are there simply to pique the consumer’s interest.”

Love said that computers and digital photography have allowed a more level marketing field. Just as they provide accelerated manufacturing processes, computers permit even small companies to produce high-quality advertising and promotional materials. “The advent of digital photography and Photoshop allow you to know immediately if your photo is good,” he explained. “The end consumer can now get a better feel for what he’s purchasing.”

	Market forces have provided far greater latitude about what may be acceptable as a “hot rod,” and the segment’s manufacturers have obliged with an ever-expanding portfolio of parts from which to choose.

Computerization has led to a revolution on the retail side in a number of different ways, as well. The market has become fragmented as small manufacturers target a select array of vehicles—sometimes only a single model—and produce parts for that specific niche. Where brick-and-mortar speed shops once catered to every segment of the hot-rod market, specialized Internet retailers today specialize in only a handful of products.

“Many businesses are now doing only drop shipments,” said Hunkins. “They take the orders, and the products are shipped direct from the manufacturer. It’s become a very compartmentalized hobby where special pieces are manufactured and marketed with very little cost.”

Retailers that do stock extensive parts lines must maintain a thorough inventory and good communications with their suppliers, said Jonas. They may otherwise miss sales either because they don’t know what suppliers have available or because they don’t have a product on their shelves.

“Education is the key to product sales and to keeping the customer,” added John Menzler of Comp Cams. “Education of dealers, installers and warehouse distributors has moved farther in the past three years than in the previous 10. The market is wide open to all manufacturers that want to listen to the consumer and build products that fit, work, are priced right and have factory backing.”

Manufacturer education is all the more critical in a market segment that mixes high-tech computerized systems with older vehicles that were originally less refined. Retailers and manufacturers have learned to rely upon each other to ensure that their customers receive the right parts for a given application.

	Electronic systems have improved every facet of performance. In addition to electronic fuel injection and drive-by-wire systems, high-tech electronics in the form or computer-aided design and computer-aided manufacturing allow new products to come on line in a fraction of the time it used to take.

“We listen to our dealers and retailers just as much as we try to give them information,” Love said. “Our customers are a lot better informed now than they were years ago. They use the Internet and read magazines, and they’re a lot more careful about where they spend their dollars. When they call a retailer, they expect the person they’re talking with to be as versed on the parts as they are. We have two-day dealer meetings and go to our larger dealers to promote product education. We try to keep our dealers as well-informed as we can. The Internet has made the world smaller.”

The world has also encroached on a hot-rod market that was once dominated by U.S.-based manufacturing. As trade rules have become more lenient, intellectual property rights and trademark violations have become more commonplace.

“The import of off-shore parts will be a never-ending problem,” Colf said. “But consumers and business-to-business customers soon learn the difference between high-quality and low-quality parts. A part that should have been relatively plug-and-play requires extra man-hours trying to either make it fit and work or having to engineer other systems to get it to work. People quickly realize that they could have had a no-fuss installation for just a few extra dollars, which usually turns out to be less than what they spent on extra parts or manpower because of the cheaper part.”

Colf noted that legislation within our own boundaries also bears watching. “We as an industry need to continue to be aware of any legislation affecting our hobby and make sure our voices are heard,” she said. “Unfavorable legislation alone could be enough to kill the hobby.”

Vigilance must be coupled with quality products, knowledgeable sales teams and unending innovation. Hot-rod enthusiasts thrive on building, improving and using their vehicles.

“If you can provide information—advice on how to use a particular product, how to install it, how it fits an application—customers will gravitate to you,” Voelkel said. “Offer a different finish, a different performance level, expedite shipping or figure out how to make something less expensive without sacrificing quality or service. The people who can do that are going to have the most to offer the customer.” 

SEMA News - June 2010 

Economy and Aging Consumer Base Bring Changes

By Steve Campbell

	Musclecar builders who would have shunned anything less than a strict restoration are now employing techniques that were once reserved strictly for street rods, with upgraded suspension and brakes, more highly refined engines, greater interior comfort, better gauges and real climate control systems.

Each of us may have different definitions of what constitutes a “hot rod,” but we all know one when we see it. The classification can encompass anything from a ’27 T-bucket roadster to a current-model Mustang, from a ’67 Camaro to a ’92 pickup, from a four-door station wagon to an early-‘80s Malibu. Only a few years ago, those last two might have raised some eyebrows among performance aficionados, but the wobbly economy and an aging consumer base have led to even greater latitude in what hot rodders consider acceptable raw material, and the segment’s manufacturers have obliged with an ever-expanding portfolio of parts from which to choose.  “The performance product industry is as strong as ever,” said Chuck Lenhart, sales representative for R&R Marketing Consultants Inc. “Despite the economy, performance businesses found ways to keep making outstanding new products and move them out the door. We are seeing more and more musclecars on the streets and at the car shows, which is a sign that people are driving them again. It’s time to get the hot rod out of the garage, shake some windows and wake the neighbors!”

Dennis Overholser, executive vice president of Painless Performance, attributes at least some of the market resilience to America’s large but aging post World War II generation. “Baby boomers are buying the cars they grew up with and restoring them to drive on a regular basis,” he said of the street-machine segment, while noting that street-rod builders are revisiting time-honored conventions. “Traditional styling is returning,” he said. “Billet is slowly going away in favor of paint. Steel and wire wheels are also on the comeback.”

	Cars that used to be reserved for shows or the drags are now seeing service in autocrossing, road racing and even at driving schools. Consumers are more aware of the entire performance package.

Perhaps the most prevalent trend on the hot-rod scene today is the metamorphosis from 100-point musclecar restorations toward the customization of vehicles that were less-than-stellar performers in stock trim. Vehicles that came off the assembly lines with anemic V8s or even V6s have become fodder for builders who are still seeking performance but have a diminished account from which to bankroll the effort.

“There have been some very nice ‘true musclecar’ restorations done lately, and I do not think that will ever go away,” said Del Austin, director of sales for Egge Machine & Speed, “but turning a musclecar into a restomod is much more affordable, drivable and enjoyable. They are being fitted with all the latest drivability features, and the engines are being used pretty much as crated—cleaned up and dressed up but pretty stock.” 

Musclecar builders who would have shunned anything less than a strict restoration are now employing techniques that were once reserved strictly for street rods, with upgraded suspension and brakes, more highly refined engines, greater interior comfort, better gauges and real climate control systems.

“They’re basically building a street rod out of a musclecar,” said Rick Love, executive vice president of Vintage Air Inc. “The only things they’re keeping from the original musclecar are the body and basic frame. Years ago, most of those cars were more restored; a lot of them are being upgraded. That seems to be the real area of growth right now.”

Love also said that today’s hot rodders have more refined tastes, access to more information and a higher degree of sophistication.

“If your daily driver is a late-model Mustang, Camaro or even a BMW, you’re going to want the hot rod you drive on the weekend to be more like a late-model car,” he said. “We know now what good steering is, what good brakes are, what real climate control or real handling is. You may like the look of the old car, but you want it to be on par with what’s available today if you’re going to drive it.”

And driving has become the name of the game. While there is still a highly respected contingent of car builders who trailer their creations to elite competitions and vie for high-end titles, such as America’s Most Beautiful Roadster or the Ridler Award, the mainstream has returned to the road. Car shows are replete these days with vehicles that arrived under their own power, and hot-rod competitions have also gone from strictly straight to maximum curves.

“People are using their cars in a greater variety of ways,” said Johnny Hunkins, editor of Source Interlink Media's Popular Hot Rodding. “They used to compete at just car shows and drags, but now they’re into autocrossing, road racing and even driving schools. They’re more conscious of the entire performance package, and they’re willing to tune them, break parts and make them better.”

In the street-rod market, tradition has resurfaced. Tried-and-true techniques have come back to the fore along with less-expensive buildups.

			“Education of dealers, installers and warehouse distributors has moved farther in the past three years than in the previous 10. The market is wide open to all manufacturers that want to listen to the consumer and build products that fit, work, are priced right and have factory backing.” —John Menzler, Comp Cams

“You see a lot more mainstream cars, such as ’32 to ’40 Fords, with straight axles, coil-overs and small-block engines,” said Bret Voelkel, president of RideTech. “It wasn’t unusual 10 years ago to see a $100,000 street rod that was all hand carved, hand rolled, hand everything. Now you can take your pick of a really nice steel street rod for $50,000–$60,000.” Voelkel also noted that the National Street Rod Association has opened its ranks to a sliding 30-year scale rather than only ’48-and-older vehicles, again demonstrating that the limits of acceptability have broadened—as has the desire for a little more luxury.

“Street rods used to be built solely for looks, not creature comforts,” said S. Kellie Colf, market development manager for Eaton Detroit Spring Inc. “They were widely built for limited mileage—a lifespan of 30,000 or so miles—but customers are now keeping their cars longer and are looking for improvements in ride and handling.”

Specialty-equipment manufacturers are taking advantage of the increasing drivability of hot rods by investing more in consumer events, said Greg Parker, sales representative for Kunzman & Associates. “They spend a lot of money in magazines to get to the consumer,” he said, “but they’ve also decided that they need to be in front of their customers in person. Consumers want to confirm what they’ve read to find out if what they’re considering will fit with their combination. The manufacturers have realized that they need to be at those consumer events so they can talk to the public and provide that confirmation.”

The movement toward better drivability and more comfort has been abetted by technology. Electronic systems in particular have improved every facet of performance. In addition, high-tech electronics in the form or computer-aided design and computer-aided manufacturing allow new products to come on line in a fraction of the time it used to take.

“Now you can draw and design a product and then bring it to life a few hours later,” said Michael Jonas, president of Stainless Steel Brakes Corporation. “We’ve seen that particularly in the development of suspension, which also affects our brake programs. Something that might have taken a year or more to develop is now being rapid-prototyped in as little as a week. That allows us to do more product development and testing.”

Computers have been a boon to hot-rod builders and performance parts manufacturers, but they have also altered the way people buy, use and even view cars and transportation. Obtaining a driver’s license used to be a right of passage, allowing young people to expand their horizons and broaden their social networks. Now those networks are being formed and traversed on the Internet, and at least two peripheral hot-rod segments that were once popular among younger buyers have suffered: late-model sport trucks and import tuning.

“A lot of vendors who were heavily invested in the import market were caught flat-footed,” said Hunkins. “We’ve seen quite a drop in sales for that market due to the economy. A lot of the price-sensitive youth hobbyists have gone away, substituting music or technology and not working with their cars. On the other hand, at least two of those companies that typically hadn’t been involved with our part of the market have started offering products for late-model musclecars.”

The Internet has also wrought industry-altering changes in the way products are researched, priced and marketed. Voelkel said that his print ads are now simply signposts that point the way to RideTech’s website, where each market segment is given its own section. “We can tell the whole story on the website,” he said. “Print ads are there simply to pique the consumer’s interest.”

Love said that computers and digital photography have allowed a more level marketing field. Just as they provide accelerated manufacturing processes, computers permit even small companies to produce high-quality advertising and promotional materials. “The advent of digital photography and Photoshop allow you to know immediately if your photo is good,” he explained. “The end consumer can now get a better feel for what he’s purchasing.”

	Market forces have provided far greater latitude about what may be acceptable as a “hot rod,” and the segment’s manufacturers have obliged with an ever-expanding portfolio of parts from which to choose.

Computerization has led to a revolution on the retail side in a number of different ways, as well. The market has become fragmented as small manufacturers target a select array of vehicles—sometimes only a single model—and produce parts for that specific niche. Where brick-and-mortar speed shops once catered to every segment of the hot-rod market, specialized Internet retailers today specialize in only a handful of products.

“Many businesses are now doing only drop shipments,” said Hunkins. “They take the orders, and the products are shipped direct from the manufacturer. It’s become a very compartmentalized hobby where special pieces are manufactured and marketed with very little cost.”

Retailers that do stock extensive parts lines must maintain a thorough inventory and good communications with their suppliers, said Jonas. They may otherwise miss sales either because they don’t know what suppliers have available or because they don’t have a product on their shelves.

“Education is the key to product sales and to keeping the customer,” added John Menzler of Comp Cams. “Education of dealers, installers and warehouse distributors has moved farther in the past three years than in the previous 10. The market is wide open to all manufacturers that want to listen to the consumer and build products that fit, work, are priced right and have factory backing.”

Manufacturer education is all the more critical in a market segment that mixes high-tech computerized systems with older vehicles that were originally less refined. Retailers and manufacturers have learned to rely upon each other to ensure that their customers receive the right parts for a given application.

	Electronic systems have improved every facet of performance. In addition to electronic fuel injection and drive-by-wire systems, high-tech electronics in the form or computer-aided design and computer-aided manufacturing allow new products to come on line in a fraction of the time it used to take.

“We listen to our dealers and retailers just as much as we try to give them information,” Love said. “Our customers are a lot better informed now than they were years ago. They use the Internet and read magazines, and they’re a lot more careful about where they spend their dollars. When they call a retailer, they expect the person they’re talking with to be as versed on the parts as they are. We have two-day dealer meetings and go to our larger dealers to promote product education. We try to keep our dealers as well-informed as we can. The Internet has made the world smaller.”

The world has also encroached on a hot-rod market that was once dominated by U.S.-based manufacturing. As trade rules have become more lenient, intellectual property rights and trademark violations have become more commonplace.

“The import of off-shore parts will be a never-ending problem,” Colf said. “But consumers and business-to-business customers soon learn the difference between high-quality and low-quality parts. A part that should have been relatively plug-and-play requires extra man-hours trying to either make it fit and work or having to engineer other systems to get it to work. People quickly realize that they could have had a no-fuss installation for just a few extra dollars, which usually turns out to be less than what they spent on extra parts or manpower because of the cheaper part.”

Colf noted that legislation within our own boundaries also bears watching. “We as an industry need to continue to be aware of any legislation affecting our hobby and make sure our voices are heard,” she said. “Unfavorable legislation alone could be enough to kill the hobby.”

Vigilance must be coupled with quality products, knowledgeable sales teams and unending innovation. Hot-rod enthusiasts thrive on building, improving and using their vehicles.

“If you can provide information—advice on how to use a particular product, how to install it, how it fits an application—customers will gravitate to you,” Voelkel said. “Offer a different finish, a different performance level, expedite shipping or figure out how to make something less expensive without sacrificing quality or service. The people who can do that are going to have the most to offer the customer.” 

SEMA News - June 2010

Reaching Tier Two and Three

By Alysha Webb

	China’s urban market is often broken down into tiers based on population and gross domestic product. The tier-two cities have a combined population of 94 million people and per capita income of RMB 15,000 ($2,196 USD).

Aftermarket products that enhance performance, appearance or comfort are niche-market products in China, but auto enthusiasts who want to trick out their vehicle aren’t limited to China’s largest cities. Markets for SEMA members’ products exist in China’s second- and third-tier cities as well. 

“In recent years, the market for performance and customization products in China’s second- and third-tier cities has gradually been heating up,” said Yang Miao of FBLife, an off-road event promotion organization. “There is a lot of space for developing the market there.”

FBLife, established in 2002, promotes its events online. Many of FBLife’s more than 200,000 members who actively participate in off-road events are located in second- and third-tier cities, said Yang.

“They are also important automotive product consumers and enthusiasts,” he said.

The key, said Alex Borla, CEO of Borla Performance of Johnson City, Tennessee, is to let those enthusiasts in the smaller cities know about your product and how they can get it. Borla travels to China frequently.

“Geography has nothing to do with what drives this market,” said Borla, “This is a very small sub-market. It is almost a cult.

He recommended using the Internet to reach auto enthusiasts in the smaller cities—and having a Chinese-language page. A study by McKinsey & Co. backs him up. It found that people who have Internet accounts in China’s smaller cities spend 50% of their leisure time online.

Tier Two and Tier Three What?

China’s urban market is often broken down into tiers based on population and gross domestic product. Tier one consists of Shanghai, Beijing, Shenzhen and Guangzhou. They have a combined population of 30 million people. Of the two largest, Shanghai’s per capita GDP was $10,530 in 2009; Beijing’s per capita GDP was $9,229. But in an example of the wide regional differences in China, Guangzhou’s per capital GDP in 2009 was only $3,070. Cost of living varies widely in China’s cities, and direct comparisons of GDP per capita does not reflect the purchasing power of consumers in different locations.

There are 32 tier-two cities. They are either provincial capitals or major urban areas. The tier-two cities have a combined population of 94 million people and per capita income of RMB 15,000 ($2,196 USD).

China has 242 tier-three cities. They have an average per capita income of RMB 12,500 ($1,830 USD).

Don’t be fooled by the low income levels in China’s smaller cities. There are pockets of rich people in all of them who can afford expensive specialty performance products.

Indeed, Mercedes-Benz is now looking to open dealerships in tier-three cities, said an auto industry executive.

Per capita vehicle ownership in these cities is lower than in the tier-one cities, and vehicle sales are projected to grow most quickly in the tier-two and tier-three cities in the coming years. A caveat is that it will take longer for the used-car market to develop in China’s tier-two and -three cities, and a growing used-car market can provide a boost to the specialty-equipment market.

The niche-market nature of demand for automotive specialty products has created somewhat of a patchwork market in China’s tier-two and -three cities, cautioned Eric Tai, a project manager in the automotive sector with TNS Research International in Shanghai. Each shop in a tier-two city might serve only a specific geographic area or specific models and performance parts, he said.

“So you can imagine that the development of this market could be quite different from one shop to another within the city—let alone discussing the difference between different cities,” said Tai.

Still, in a country where light-vehicle sales grew by 48% in 2009 to 12.96 million units, according to J.D. Power and Associates, and where close to 10% growth is forecasted for the next decade, even a niche can be significant.

“First, assess the consumption habits of people in the second- and third-tier cities, the transportation situation and the standard of living,” said Yang. “Then start investigating the suitable markets for your products.”  

SEMA Helps Members Secure Place in Booming Chinese Auto Market

SEMA has created a unique program to assist members in exploring their products’ sales potential in China at the upcoming SEMA China International Auto Parts Expo (CIAPE) China Business Development Conference, September 23–26, in Beijing. American manufacturers will be paired with relevant Chinese buyers in up to a dozen private, pre-scheduled meetings, making the conference a low-cost way for SEMA members to explore the market and connect with leading players. The program also includes exclusive networking events and a VIP tour of the CIAPE. For additional information on the event, contact lindas@sema.org. or visit www.sema.org/china  

SEMA News - June 2010

Reaching Tier Two and Three

By Alysha Webb

	China’s urban market is often broken down into tiers based on population and gross domestic product. The tier-two cities have a combined population of 94 million people and per capita income of RMB 15,000 ($2,196 USD).

Aftermarket products that enhance performance, appearance or comfort are niche-market products in China, but auto enthusiasts who want to trick out their vehicle aren’t limited to China’s largest cities. Markets for SEMA members’ products exist in China’s second- and third-tier cities as well. 

“In recent years, the market for performance and customization products in China’s second- and third-tier cities has gradually been heating up,” said Yang Miao of FBLife, an off-road event promotion organization. “There is a lot of space for developing the market there.”

FBLife, established in 2002, promotes its events online. Many of FBLife’s more than 200,000 members who actively participate in off-road events are located in second- and third-tier cities, said Yang.

“They are also important automotive product consumers and enthusiasts,” he said.

The key, said Alex Borla, CEO of Borla Performance of Johnson City, Tennessee, is to let those enthusiasts in the smaller cities know about your product and how they can get it. Borla travels to China frequently.

“Geography has nothing to do with what drives this market,” said Borla, “This is a very small sub-market. It is almost a cult.

He recommended using the Internet to reach auto enthusiasts in the smaller cities—and having a Chinese-language page. A study by McKinsey & Co. backs him up. It found that people who have Internet accounts in China’s smaller cities spend 50% of their leisure time online.

Tier Two and Tier Three What?

China’s urban market is often broken down into tiers based on population and gross domestic product. Tier one consists of Shanghai, Beijing, Shenzhen and Guangzhou. They have a combined population of 30 million people. Of the two largest, Shanghai’s per capita GDP was $10,530 in 2009; Beijing’s per capita GDP was $9,229. But in an example of the wide regional differences in China, Guangzhou’s per capital GDP in 2009 was only $3,070. Cost of living varies widely in China’s cities, and direct comparisons of GDP per capita does not reflect the purchasing power of consumers in different locations.

There are 32 tier-two cities. They are either provincial capitals or major urban areas. The tier-two cities have a combined population of 94 million people and per capita income of RMB 15,000 ($2,196 USD).

China has 242 tier-three cities. They have an average per capita income of RMB 12,500 ($1,830 USD).

Don’t be fooled by the low income levels in China’s smaller cities. There are pockets of rich people in all of them who can afford expensive specialty performance products.

Indeed, Mercedes-Benz is now looking to open dealerships in tier-three cities, said an auto industry executive.

Per capita vehicle ownership in these cities is lower than in the tier-one cities, and vehicle sales are projected to grow most quickly in the tier-two and tier-three cities in the coming years. A caveat is that it will take longer for the used-car market to develop in China’s tier-two and -three cities, and a growing used-car market can provide a boost to the specialty-equipment market.

The niche-market nature of demand for automotive specialty products has created somewhat of a patchwork market in China’s tier-two and -three cities, cautioned Eric Tai, a project manager in the automotive sector with TNS Research International in Shanghai. Each shop in a tier-two city might serve only a specific geographic area or specific models and performance parts, he said.

“So you can imagine that the development of this market could be quite different from one shop to another within the city—let alone discussing the difference between different cities,” said Tai.

Still, in a country where light-vehicle sales grew by 48% in 2009 to 12.96 million units, according to J.D. Power and Associates, and where close to 10% growth is forecasted for the next decade, even a niche can be significant.

“First, assess the consumption habits of people in the second- and third-tier cities, the transportation situation and the standard of living,” said Yang. “Then start investigating the suitable markets for your products.”  

SEMA Helps Members Secure Place in Booming Chinese Auto Market

SEMA has created a unique program to assist members in exploring their products’ sales potential in China at the upcoming SEMA China International Auto Parts Expo (CIAPE) China Business Development Conference, September 23–26, in Beijing. American manufacturers will be paired with relevant Chinese buyers in up to a dozen private, pre-scheduled meetings, making the conference a low-cost way for SEMA members to explore the market and connect with leading players. The program also includes exclusive networking events and a VIP tour of the CIAPE. For additional information on the event, contact lindas@sema.org. or visit www.sema.org/china  

	From left: SEMA President and CEO Chris Kersting, Sara O’Meara of Childhelp, Mike Spagnola of Street Scene Equipment, Joel Ayres of Truck Accessories Group and Yvonne Fedderson of Childhelp. (Photo Courtesy Jan Miller/Make a Difference Photography)

SEMA News - June 2010 

SEMA Named Childhelp 2010  Corporate Sponsor of the Year

Childhelp, a nonprofit organization headquartered in Scottsdale, Arizona, dedicated to helping victims of child abuse and neglect, presented SEMA with the Childhelp 2010 Corporate Award at a luncheon on April 14 at the annual Childhelp Day of Hope Ceremony in Washington, D.C.

Childhelp ambassador Jane Seymour—actress, artist and jewelry designer—was in attendance and spoke at the event.

Senator Diane Feinstein (D-CA) and Senator Jon Kyl (R-AZ) and his wife Caryll, who have been active in Childhelp for many years, also spoke.

A handful of other senators and congressmen were also in attendance. Joel Ayres, chairman of the SEMA Cares committee, and Mike Spagnola, president of Street Scene Equipment Inc., accepted the award on SEMA’s behalf.

 

Top Vehicle Program Evolves at the SEMA Show

	Exhibitors at the 2010 SEMA Show will determine which of the hottest cars and trucks will be named Vehicles of the Show.

The SEMA Show “Vehicle Manufacturer of the Show” program is being modified to showcase top trendsetting vehicles. Through this enhanced program, exhibitors at the 2010 SEMA Show will determine the hottest cars and trucks in three categories: car, truck and 4x4.

Show organizers will survey every booth vehicle at the SEMA Show, which takes place Tuesday–Friday, November 2–5, 2010, in Las Vegas. The most prominent vehicles in the three categories will be announced as the Vehicles of the Show.

Members of the specialty-equipment industry have defined trends and pioneered technology for several decades. Their cumulative voice influences consumer spending and creates business opportunities. This program is intended to leverage the special role that the specialty-equipment industry plays.

Contenders for the winning vehicles will be announced prior to the 2010 SEMA Show, with the winning vehicles named on the first day of the event, Tuesday, November 2, in Las Vegas. Here is more information about the SEMA Show.

 

Foose Returns as Grand Marshal of SEMA’s Summer Car Show

	Award-winning automotive designer and fabricator Chip Foose returns as the grand marshal of the SEMA Show ’N Shine public car show.

Chip Foose, award-winning automotive designer and fabricator, will return as grand marshal of the second annual SEMA Show ’N Shine public car show, Saturday, July 24, at the Pasadena Convention Center.

Held in connection with the SEMA Installation Banquet & Gala Fundraiser (taking place the evening before, on July 23) and the SEMA Pinewood Drag Races, also on July 24, the Show ’N Shine car show will draw some of the best local enthusiast cars, trucks and classics, with all proceeds benefiting children’s charities Childhelp and Victory Junction Gang Camp. More than 200 vehicles packed the Pasadena Convention Center in Pasadena, California, last year.

“I was thrilled to be a part of the inaugural SEMA Show ’N Shine last year and am even more excited to return for 2010,” said Foose. “SEMA is an important organization for car enthusiasts and industry people like myself, and I’m proud to take part and work in supporting children’s charities through this event.”

Foose’s design talent will be displayed at the show through his personal vehicles and those he’s worked on, including a ’59 Bel Air, among others. Last year, Foose brought a ’56 Ford F-100 pickup, an ’02 Ford T-Bird Speedbird that starred in “Rides” and his Foose Coupe.

Both the Show ’N Shine and Pinewood Drag Races are part of the 2010 SEMA Leadership Days. Other activities include the SPC Business Technology Conference and the Installation Banquet & Gala Fundraiser, both scheduled for the day and evening before, on July 23.

 

	Attendee and media registration are open for the 2010 SEMA Show and AAPEX.

Registration for 2010 SEMA Show and AAPEX Now Open

Attendee and media registration for the 2010 SEMA Show and AAPEX are now open at www.SEMAShow.com and www.aapexshow.com.

The two shows, held the first week of November in Las Vegas, are open to auto-related buyers, installers, retailers, dealers, manufacturer reps and other specified categories.

Registration allows attendees to enter both the SEMA Show (Tuesday–Friday, November 2–5, at the Las Vegas Convention Center) and AAPEX (Tuesday–Thursday, November 2–4, at the Sands Expo & Convention Center).

To register, visit www.SEMAShow.com or www.aapexshow.com and click the registration link. Enter an e-mail address in the attendee or media section to get started.

 

Fast Facts

The Eaton Vehicle Group hired Rodger Olson as automotive global aftermarket sales manager. Olson is responsible for developing the global aftermarket for all automotive products and has a successful history as an aftermarket sales manager for markets that include military, hybrid, electric and performance. Eaton, Cleveland, OH; 216/523-5000.

The Sports Car Club of America Inc. (SCCA) named Nate Siebens public relations manager of the SCCA Pro Racing Trans-Am Series for the 2010 season. Through his company, LCS Public Relations, founded in 2007, Siebens will oversee public relations efforts for the Trans-Am Series, working in concert with SCCA’s in-house public relations staff. His duties include feature articles, press releases and media materials for Trans-Am. SCCA, Topeka, KS; 785/357-7222.

S&W Race Cars announced that Rory Krupp has joined its sales team. According to S&W President Scott Weney, Krupp spends his days as a builder and fabricator and his weekends as the pilot of S&W’s dragster “house car.” Krupp has recently spent time learning a new skill—sales. “Some people can’t get enough, and Rory is living proof,” explained Weney. S&W, Spring City, PA; 610/948-7303.

J. Craig Jordan will succeed Charles “Bud” Wise as vice president of human resources at PPG Industries. Wise will retire from the company effective August 1. Jordan will become a member of PPG’s operating committee, reporting to Chairman and CEO Charles Bunch. Jordan joined PPG in 1989 as director of human resources at the company’s plant in Natrium, West Virginia. He assumed responsibility for corporate industrial relations in 2003, and his responsibilities subsequently expanded to include employee relations, policy and compensation. PPG Industries, Strongsville, OH; 440/572-6131.

Go Rhino! Products named Kathryn Gallagher its marketing manager. She will manage advertising, events, marketing and branding efforts for all IDDEA brands, including Reflections and Big Country Truck Accessories. Gallagher has 11 years of experience in the automotive aftermarket industry, working with companies such as Advanstar Communications and CEC Wheels. She is also a member of the SEMA Businesswomen’s Network and the SEMA Young Executives Network. Go Rhino!, Brea, CA; 888/427-4466.

	Jim MacMaster, Yokohama Tire Corp.

On June 30, Jim MacMaster, Yokohama Tire Corp. executive vice president and chief operating officer, will retire after 39 years in the tire industry. MacMaster, who also served as chairman of the Rubber Manufacturers Association from 2007–2009, began his career with a three-year stint in the navy, followed by work in the defense and computer industries and then 10 years on the manufacturing and dealer side of the tire business. He joined Yokohama in January 1981. During his 30-year tenure at Yokohama, the organization grew from a $30 million company to nearly $1 billion. Yokohama, Fullerton, CA; 714/870-3800.

Holley Performance Products hired John Sonnefeldt as director of sales. He joins Holley with more than 15 years of experience in the performance aftermarket. He is an avid car enthusiast who has built and displays an award-winning ’71 restomod Chevelle. Holley Performance Products, Bowling Green, KY;
270/782-2900.

John York joined the Federated Auto Parts management team as corporate comptroller. York began his aftermarket career working for Perfection Hy-Test, where he held various positions, including financial analyst, regional sales manager, assistant comptroller and, most recently, sales manager of traditional business.

Four Seasons was presented an “Extra Miler” award at AutoZone’s Vendor Summit meeting in Memphis, Tennessee. According to AutoZone, the award is presented to vendors who are unfazed by obstacles, who go above and beyond the call of duty, who exceed expectations and consistently deliver more than
is expected.

Optima Batteries partnered with World Racing Inc. for the 2010 drag-racing season. As the official battery supplier of World Racing Inc., Optima Batteries will provide product and technical sport to World Racing and owner/driver Chris Rado for various competitions. Optima Batteries, Milwaukee, WI; 888/8OPTIMA.

Hastings East Manufacturing Company Ltd., a wholly foreign-owned enterprise of Hastings Manufacturing Company LLC, was recognized as a top 10 automotive parts brand in China. A Top Ten Foreign Automotive Parts Brand in China ceremony was held at the presidential guest house in Beijing. The award selections were made by a panel of state representatives, educational institutions, the Society of Automotive Engineers China, China Auto Parts Association and the automotive aftermarket media.

Mobileye Inc. established a partnership with InstallerNet Inc. that will provide Mobileye customers with immediate access to InstallerNet’s nationwide network of more than 1,500 installation facilities in addition to Mobileye’s existing dealer network. Mobileye driver assistance technologies, such as forward collision warning, headway monitoring and lane-departure warning systems, help alert drivers to potentially life-threatening situations. Mobileye Inc., Southfield, MI; 877/221-0280.

HRE Performance Wheels selected Kahn Media to assist with public relations and communication initiatives. In addition to providing media outreach and PR assistance, Kahn Media will work with HRE management on strategic planning initiatives and social media marketing campaigns to elevate brand visibility, increase sales and promote the company’s top products. HRE Performance Wheels, Vista, CA;
760/598-1960.

Illinois Tool Works Inc. (ITW) acquired Accessories Marketing Inc. (AMI), creator and manufacturer of the Slime brand of tire-sealant products. AMI is a leader in flat-tire prevention and repair. Accessories Marketing Inc. employs approximately 60 people and has a global headquarters in Grover Beach, California. The purchase was announced by David C. Parry, executive vice president of ITW, who indicated that AMI would become part of ITW’s performance polymers and fluids group and continue to operate as a separate entity. The AMI acquisition was led by Permatex, a business unit of ITW. Accessories Marketing Inc., Grover Beach, CA;
805/489-0490.

The Automobile Club of Southern California has expanded its sponsorship of the NHRA to include the title rights of the AAA Insurance NHRA Midwest Nationals at Gateway International Raceway outside St. Louis. The expansion also includes naming rights for Auto Club Raceway at Pomona, entitlement rights of the Automobile Club of Southern California NHRA Finals held at Auto Club Raceway at Pomona, sponsorship of the Auto Club “Road to the Future” award annually recognizing the sport’s professional rookie of the year, presenting sponsorship of the Wally Parks NHRA Motorsports Museum and presenting sponsorship of the popular California Hot Rod Reunion held at Auto Club Famoso Raceway in Bakersfield, California. NHRA, Glendora, CA; 626/963-7695. Automobile Club of Southern California;
800-352-5382.

Off Road Industry magazine recently named Alloy USA’s yoke conversion kits to its list of “10 Best Products for 2010.” Alloy USA is exclusively distributed by OMIX-ADA Inc. Alloy USA, Suwanee, GA; 800/449-6649. 

National Parts Wholesaler has selected Edgenet’s data services for product-information management and distribution for www.searchparts.com. According to National Parts Wholesaler, Edgenet will help customers of Searchparts.com locate the quality data needed to make informed purchasing decisions.

ID Agency’s open house and automotive photography exhibition in April featured custom cars and the works of DC Chavez, Mo Satarzadeh, Joey Redmond, Michael Carrillo and Estevan Oriol, and appearances by Formula Drift drivers Chris Forsberg and Dai Yoshihara. The Los Angeles marketing firm counts Falken Tire, Brembo and Formula Drift among its specialty-equipment industry clients.  

 

SEMA News - June 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.

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

SEMA News - June 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.

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

SEMA News - June 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.

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