Thu, 04/01/2010 - 15:34

SEMA News - April 2010

By Steve Campbell

An Insiders’ Look at Where the Truck Roads Lead

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

One of the newest and most exciting forms of off-road racing is “The King of the Hammers”—a cross between all-out desert sprints and the tactical sport of rock crawling. Purpose-built machines such as this one pound and scramble over 100-plus-mile courses, clawing for the upper hand.  

   
The entire automotive landscape has changed over the past two years, but the effects of higher fuel prices and a deep recession may be most evident in the truck, sport utility and off-road segments of the industry. Super-sized SUVs have been particularly hard hit, with sales dropping precipitously and one previously vaunted brand vanishing into the dust of a receding market. Still, while ruts and rocks obscure the way, brighter vistas are coming into view.

In many cases, people own trucks and high-capacity vehicles because nothing else will do. Whether they’re tradesmen hauling bulky cargo or moms transporting gangs of kids, people must still get their loads to their appointed destinations. And while the entire ultra-large SUV segment may eventually succumb to market forces, smaller versions of pickups and utility vehicles—including the crossover segment that began to bloom even before the recession hit—can more than make up for the shortfall in the automotive specialty-equipment market.

“Small is beautiful,” said Douglas McColloch, editor in chief of Four Wheeler magazine. “There is likely to be a contraction in the number of truck-based fullsize V8 SUVs over the next few years in favor of higher-mileage unitbody all-wheel-drive midsize vehicles running smaller-displacement direct-injection engines. The market for a genuinely small pickup—à la ’80s-vintage Toyotas and Nissans—is ripe for the taking.”

For specialty-equipment businesses, perhaps even more telling than vehicle downsizing is a trend toward vehicle retention.

“We’ve seen a resurgence in the pre-owned truck market,” said Seth Gortenburg, owner of Chux Trux Inc. “It appears that enthusiasts are either keeping their vehicles rather than trading them in or are purchasing pre-owned instead of new. Many of the conversions that we are currently working on are not for the current body style.”

At the same time, the automakers are incorporating increasingly useful but also complex technology in each new vehicle iteration. Aftermarket manufacturers must therefore also continually upgrade and innovate to stay abreast of the marketplace. Specialty-equipment manufacturers must learn what affect such developments create and then adjust their products accordingly.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

The automotive landscape has changed over the past two years, but brighter vistas are on the horizon. Many people own trucks and high-capacity vehicles because nothing else will do, and smaller versions of pickups and utility vehicles—including the crossover segment that began to bloom even before the recession hit—can make up for the shortfall created by a flagging economy and rising fuel costs.  

   
“Electronic stability control will change the way truck owners outfit their vehicles with aftermarket products,” said Melanie White, marketing manager for Hellwig Products.” Consumers will need to be educated about how aftermarket products such as sway bars can help stabilize their vehicles and improve their vehicle’s handling.”

The automakers have also incorporated aftermarket-driven advances into their latest truck and SUV offerings. In years past, consumers sought specialty-equipment products to remedy the shortcomings of showroom vehicles. Recognizing
opportunity, some automakers have refined their products to directly target certain hardcore segments.

“The OEMs are coming up with real four-wheeling vehicles, such as the new Jeep JK Wrangler,” said Rick Pewe, editor of 4-Wheel & Off-Road magazine. “You can drive it over the Rubicon Trail or in Moab and then drive across the country to another hardcore ’wheeling area. It has selectable lockers, a four-to-one transfer case, 33-inch mud terrain tires—it’s already done for you as a factory offering.”

The upshot of those developments and the effects of the recession is an evolution in the marketplace, including adjustments in product development to accommodate consumer spending and consumer perceptions. There has been movement away from expensive specialty systems, for instance.

“The emergence of the leveling kit has opened up a lot of opportunities,” Gortenburg said. “People who want the aggressive look but either didn’t want to invest in the bigger kits or still wanted to park their trucks in the garage can now affordably fit larger tires and wheels.”

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

The recession has led some consumers to shy away from more expensive lift kits in favor of leveling kits, which allow the addition of plus-one or plus-two tire sizes at an affordable price.   

   
The shift is not limited to suspension products, according to McColloch. He cited a whole range of parts that have either maintained market share or actually seen sales increases, including off-road lights, shock absorbers and intake and exhaust systems, while more specialized products, such as complete IFS lift kits and larger off-road tire sizes have suffered because of the recession. 

At the same time, recreational truck owners have become more involved in family pursuits, such as camping, boating and family off-road travel. That upsurge can be a boon for those who manufacture and market towing products.

“Towing—and specifically more towing capacity—is a big deal,” Pewe said. “We’re seeing more and more people doing it the right way, setting up a vehicle to ride correctly rather than having the tail down. A lot of people are using air suspension to level their vehicles under tow, and they’re dispersing the weight better with weight-distributing hitches.”

Another recreational niche that has seen significant growth is the “overlander” market segment, in which truck owners enter into longer-term hunting, fishing, camping or backcountry trekking expeditions.

“There was an explosion of overland-related products at last year’s SEMA Show,” McColloch said, “and I imagine we’ll see this market segment expand in the coming years. The prospective truck owner doesn’t need to spend a lot of time and money re-engineering his truck to accommodate 44-inch tires in order to build a capable backcountry exploration rig.”

McColloch also predicted significant growth in the diesel truck market—though perhaps not in its current guise. Just as a trend toward smaller vehicles seems to be developing, the diesel market may also be evolving toward a more economical version.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

One recreational niche that has seen significant growth is the “overlander” market segment, in which truck owners enter into longer-term hunting, fishing, camping or  backcountry trekking expeditions.  

   
“We will almost surely see a proliferation of small-displacement, high-mileage, direct-injection diesel engines in midsize trucks and SUVs over the next decade,” McColloch said, adding as a caveat that both state and federal governments must first agree upon emissions standards that can be relied upon by the automakers. “Nearly all of the OEMs—and/or their European partners—have some truly awesome diesel powerplants ready to bring to market,” he said. “The only hang-ups are uncertainty over government regulations and some perceived softness in American consumer demand for diesel, which has begun to slacken with the proven success of small cars, such as the Volkswagen Jetta TDI, which can deliver up to 50 mpg on the highway.”

That perception of softness may be partially a result of what happened to the price of diesel when fuel prices skyrocketed. A large part of diesel’s appeal has always been its economic advantage over gasoline.

“It used to be that you had to have a diesel truck if you were pulling anything,” said Bob Carpenter, editor of 8-Lug HD Truck magazine. “But the cost of diesel fuel and the added cost to the initial purchase price for diesel-powered trucks has led a small percentage—maybe 5% but growing—to go with heavy-duty gas-powered trucks. That is one reason why we dropped the word ‘diesel’ from of our magazine title and replaced it with ‘HD,’ so we can cover those trucks, too.”

Hybrid and electric trucks are another phenomenon that the marketplace is anticipating. Several of the automakers market such vehicles, but they’ve not caught full fire with the public. Gortenburg said that his company is seeing quite a few hybrid crossovers come in for accessories such as towing and convenience products, but the pickup-buying public hasn’t followed suit.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

Soft and hard-plastic truck-bed covers are among the products that continue to do well in today’s economy. Tonneaus not only provide lockable bed storage but have also been shown to aid fuel economy.  

   
“There’s a lot of stuff that could be great about an electric 4x4, where you have torque right off the bat,” said Pewe, “You’d have a completely unique suspension because you don’t need axle shafts; you have the wheel motors. We’re not there because we don’t have the need or the technology yet. Electrics aren’t so great if you run out of juice in the middle of nowhere.”

For the most part, truck racing is also in status quo. The NASCAR truck series has drawn a consistent audience, and the various desert and short-course off-road series continue to draw well—although desert aficionados have been clamoring for a less-expensive grassroots alternative for some time. McColloch said that the Stock Mini and Stock Full classes in the SCORE series allow for some “average guy” competition, and White noted that Ivan Stewart’s “Pro Truck” is designed as a cost-effective vehicle for both short- and long-course off-road racing. But the real news in the dirt is the King of the Hammers series, which  McColloch said combines the thrills of high-speed desert racing with the technical skills of rock crawling and has grown from a small cult following to a full-on race series that will likely attract close to 100,000 fans this year.

“The King of the Hammers is basically about 135 miles of hard-core rock crawling and real desert racing,” said Pewe. “It’s one day and 100 entrants, and you have to qualify ahead of time. All of the desert racers thought they’d easily win it, and all of the rock guys thought the desert racers didn’t know how to crawl. So far, the rock guys have been right.”

Whether for recreation or competition, all off-road activities require one common denominator: land. Conflicts over land use between enthusiasts and environmentalists are likely to continue, but divergent communities—including the businesses whose livelihood depends upon off-road and outdoors consumers—could unite under a single banner to make their voices heard.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

Towing has become more popular over the past few years, and consumers have gradually become more cognizant of proper techniques. Products such as weight-distributing hitches, air suspension systems and helper springs remain popular for these applications.  

   
“SEMA does a commendable job of lobbying on behalf of the off-road market segment,” said McColloch, “but I’d love to see the varied 4x4 advocacy groups convene a summit with the intention of forming a truly nationwide organization with the financial and political wherewithal to compete vigorously—and negotiate compromises when necessary—with the larger, better-funded environmental groups, such as the Sierra Club or the World Wildlife Federation. I’ve often wondered if those of us in the off-road community have made the best of our opportunities to form partnerships with other outdoor enthusiasts who enjoy recreating in the backcountry.”

As the soft murmurs of economic recovery creep into conversations within the industry, retailers might pay closer attention to these trends. “People don’t spend the kind of money on their trucks that they used to,” Carpenter said. “Retailers are going to have to find a way to make a profit without the easy big-ticket items. They will have to be more efficient, more up-to-date and more helpful in order to win a customer’s business.”

They’re also going to have to diversify and educate themselves about new technologies. They’ll need to maintain inventory, tailor space to sales, embrace the Internet where necessary but provide personalized service whenever possible. Above all, they’ll need to deliver quality.

“Retailers need to guard against fly-by-night companies with prices that are too good to be true,” said Nick Gramelspacher, director of sales for Meyer Distributing. “A $50 leveling or lift kit gets you exactly that much quality, design and history.”

George Lathouris, Keystone Automotive Operations senior category manager said that his company sees steady sales through tried-and-true products that it has sold for many years. And Mandi Woodell, Weathers Auto Supply Inc. purchasing manager, said that soft- and hard-plastic truck-bed covers remain strong, even with a wealth of manufactures in that category. Woodell said that toolbox sales have diminished within her company as pricing in the category has climbed, but she thinks that part of the attrition may stem from encroachment by big-box retailers, which are quick to pounce on specialty sales when a market grows large enough to be seen as a more generalized accessory.

Lathouris pointed out that such product migration can go both ways. While big-box stores may elect to include some specialty products, specialty retailers can turn to replacement parts as an often-overlooked profit center.

“We don’t talk enough about some of the replacement products that everybody needs for trucks,” Lathouris said. “Whether a part is used under the hood or goes into the brake system, it’s tremendous business that is just not being taken advantage of by aftermarket retailers. All of us are always looking for the hot new trend, but stuff breaks as people hold on to their vehicles for longer periods. That becomes a selling opportunity. Some of the aftermarket shops should acknowledge those opportunities, embrace them and fill in those parts.”

They just need to follow where the roads lead.

Reps Report: What's Hot

As in previous stories on market trends, we asked a select group of manufacturers’ reps what was selling particularly well in the truck, SUV and off-road segment.

Greg Bernheisel, Considine Sales & Marketing vice president and partner:

Tubular products, such as grille guards and especially nerf bars, remain hot to this day. Tonneau covers and floor protection have also been growing, and people want to protect the interior of their vehicles. Tonneau covers help with gas mileage, and they also give you security. You can haul more stuff, and keep it hidden. The economy and gas prices play a big part in what people are going to put on their vehicles today. There are still a lot of opportunities out there, though, with the expansion of products and even territories.

Mike Bolio, RepForce Inc. accessories and performance parts representative:

Programmers are very hot right now, as are air intakes. Fuel economy is one reason, but people also want performance, especially in the diesel market. Both of those lines are easy add-ons, as are tubular parts. They’re big but very competitive markets. Mats and roll-up tonneau covers are doing well for us, and we’ve got a new water methanol injection system that we’re working with. Fleet business is an opportunity, and dress-up products are big. But right now, in this economy, function is the biggest consideration.

Chuck Lenhart, R&R Marketing Consultants Inc. sales representative:

New-truck sales being down has led to a resurgence of sorts in older vehicle product applications. This has presented a challenge for some vendors who have reduced production of some items thinking that sales may have peaked. Quality products from mainstay brands are always the best bet. Superchips and Edge programmers are solid product lines, and air-intake systems and fuel-mileage improvements from companies such as Airaid and Poweraid are still very much in demand. Revtek Suspensions, which makes quality leveling kits, is filling a need. Energy Suspension replacement bushings are also very much in demand and so are Baer Brakes. On the accessory side, Revolution airbag steering wheels from Grant Products are hot, and Bulldog Winch has an outstanding product line. Edelbrock’s new E-Force superchargers are really making a splash on the performance side. Really cool stuff!  

 

 

 

Thu, 04/01/2010 - 15:34

SEMA News - April 2010

By Steve Campbell

An Insiders’ Look at Where the Truck Roads Lead

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

One of the newest and most exciting forms of off-road racing is “The King of the Hammers”—a cross between all-out desert sprints and the tactical sport of rock crawling. Purpose-built machines such as this one pound and scramble over 100-plus-mile courses, clawing for the upper hand.  

   
The entire automotive landscape has changed over the past two years, but the effects of higher fuel prices and a deep recession may be most evident in the truck, sport utility and off-road segments of the industry. Super-sized SUVs have been particularly hard hit, with sales dropping precipitously and one previously vaunted brand vanishing into the dust of a receding market. Still, while ruts and rocks obscure the way, brighter vistas are coming into view.

In many cases, people own trucks and high-capacity vehicles because nothing else will do. Whether they’re tradesmen hauling bulky cargo or moms transporting gangs of kids, people must still get their loads to their appointed destinations. And while the entire ultra-large SUV segment may eventually succumb to market forces, smaller versions of pickups and utility vehicles—including the crossover segment that began to bloom even before the recession hit—can more than make up for the shortfall in the automotive specialty-equipment market.

“Small is beautiful,” said Douglas McColloch, editor in chief of Four Wheeler magazine. “There is likely to be a contraction in the number of truck-based fullsize V8 SUVs over the next few years in favor of higher-mileage unitbody all-wheel-drive midsize vehicles running smaller-displacement direct-injection engines. The market for a genuinely small pickup—à la ’80s-vintage Toyotas and Nissans—is ripe for the taking.”

For specialty-equipment businesses, perhaps even more telling than vehicle downsizing is a trend toward vehicle retention.

“We’ve seen a resurgence in the pre-owned truck market,” said Seth Gortenburg, owner of Chux Trux Inc. “It appears that enthusiasts are either keeping their vehicles rather than trading them in or are purchasing pre-owned instead of new. Many of the conversions that we are currently working on are not for the current body style.”

At the same time, the automakers are incorporating increasingly useful but also complex technology in each new vehicle iteration. Aftermarket manufacturers must therefore also continually upgrade and innovate to stay abreast of the marketplace. Specialty-equipment manufacturers must learn what affect such developments create and then adjust their products accordingly.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

The automotive landscape has changed over the past two years, but brighter vistas are on the horizon. Many people own trucks and high-capacity vehicles because nothing else will do, and smaller versions of pickups and utility vehicles—including the crossover segment that began to bloom even before the recession hit—can make up for the shortfall created by a flagging economy and rising fuel costs.  

   
“Electronic stability control will change the way truck owners outfit their vehicles with aftermarket products,” said Melanie White, marketing manager for Hellwig Products.” Consumers will need to be educated about how aftermarket products such as sway bars can help stabilize their vehicles and improve their vehicle’s handling.”

The automakers have also incorporated aftermarket-driven advances into their latest truck and SUV offerings. In years past, consumers sought specialty-equipment products to remedy the shortcomings of showroom vehicles. Recognizing
opportunity, some automakers have refined their products to directly target certain hardcore segments.

“The OEMs are coming up with real four-wheeling vehicles, such as the new Jeep JK Wrangler,” said Rick Pewe, editor of 4-Wheel & Off-Road magazine. “You can drive it over the Rubicon Trail or in Moab and then drive across the country to another hardcore ’wheeling area. It has selectable lockers, a four-to-one transfer case, 33-inch mud terrain tires—it’s already done for you as a factory offering.”

The upshot of those developments and the effects of the recession is an evolution in the marketplace, including adjustments in product development to accommodate consumer spending and consumer perceptions. There has been movement away from expensive specialty systems, for instance.

“The emergence of the leveling kit has opened up a lot of opportunities,” Gortenburg said. “People who want the aggressive look but either didn’t want to invest in the bigger kits or still wanted to park their trucks in the garage can now affordably fit larger tires and wheels.”

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

The recession has led some consumers to shy away from more expensive lift kits in favor of leveling kits, which allow the addition of plus-one or plus-two tire sizes at an affordable price.   

   
The shift is not limited to suspension products, according to McColloch. He cited a whole range of parts that have either maintained market share or actually seen sales increases, including off-road lights, shock absorbers and intake and exhaust systems, while more specialized products, such as complete IFS lift kits and larger off-road tire sizes have suffered because of the recession. 

At the same time, recreational truck owners have become more involved in family pursuits, such as camping, boating and family off-road travel. That upsurge can be a boon for those who manufacture and market towing products.

“Towing—and specifically more towing capacity—is a big deal,” Pewe said. “We’re seeing more and more people doing it the right way, setting up a vehicle to ride correctly rather than having the tail down. A lot of people are using air suspension to level their vehicles under tow, and they’re dispersing the weight better with weight-distributing hitches.”

Another recreational niche that has seen significant growth is the “overlander” market segment, in which truck owners enter into longer-term hunting, fishing, camping or backcountry trekking expeditions.

“There was an explosion of overland-related products at last year’s SEMA Show,” McColloch said, “and I imagine we’ll see this market segment expand in the coming years. The prospective truck owner doesn’t need to spend a lot of time and money re-engineering his truck to accommodate 44-inch tires in order to build a capable backcountry exploration rig.”

McColloch also predicted significant growth in the diesel truck market—though perhaps not in its current guise. Just as a trend toward smaller vehicles seems to be developing, the diesel market may also be evolving toward a more economical version.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

One recreational niche that has seen significant growth is the “overlander” market segment, in which truck owners enter into longer-term hunting, fishing, camping or  backcountry trekking expeditions.  

   
“We will almost surely see a proliferation of small-displacement, high-mileage, direct-injection diesel engines in midsize trucks and SUVs over the next decade,” McColloch said, adding as a caveat that both state and federal governments must first agree upon emissions standards that can be relied upon by the automakers. “Nearly all of the OEMs—and/or their European partners—have some truly awesome diesel powerplants ready to bring to market,” he said. “The only hang-ups are uncertainty over government regulations and some perceived softness in American consumer demand for diesel, which has begun to slacken with the proven success of small cars, such as the Volkswagen Jetta TDI, which can deliver up to 50 mpg on the highway.”

That perception of softness may be partially a result of what happened to the price of diesel when fuel prices skyrocketed. A large part of diesel’s appeal has always been its economic advantage over gasoline.

“It used to be that you had to have a diesel truck if you were pulling anything,” said Bob Carpenter, editor of 8-Lug HD Truck magazine. “But the cost of diesel fuel and the added cost to the initial purchase price for diesel-powered trucks has led a small percentage—maybe 5% but growing—to go with heavy-duty gas-powered trucks. That is one reason why we dropped the word ‘diesel’ from of our magazine title and replaced it with ‘HD,’ so we can cover those trucks, too.”

Hybrid and electric trucks are another phenomenon that the marketplace is anticipating. Several of the automakers market such vehicles, but they’ve not caught full fire with the public. Gortenburg said that his company is seeing quite a few hybrid crossovers come in for accessories such as towing and convenience products, but the pickup-buying public hasn’t followed suit.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

Soft and hard-plastic truck-bed covers are among the products that continue to do well in today’s economy. Tonneaus not only provide lockable bed storage but have also been shown to aid fuel economy.  

   
“There’s a lot of stuff that could be great about an electric 4x4, where you have torque right off the bat,” said Pewe, “You’d have a completely unique suspension because you don’t need axle shafts; you have the wheel motors. We’re not there because we don’t have the need or the technology yet. Electrics aren’t so great if you run out of juice in the middle of nowhere.”

For the most part, truck racing is also in status quo. The NASCAR truck series has drawn a consistent audience, and the various desert and short-course off-road series continue to draw well—although desert aficionados have been clamoring for a less-expensive grassroots alternative for some time. McColloch said that the Stock Mini and Stock Full classes in the SCORE series allow for some “average guy” competition, and White noted that Ivan Stewart’s “Pro Truck” is designed as a cost-effective vehicle for both short- and long-course off-road racing. But the real news in the dirt is the King of the Hammers series, which  McColloch said combines the thrills of high-speed desert racing with the technical skills of rock crawling and has grown from a small cult following to a full-on race series that will likely attract close to 100,000 fans this year.

“The King of the Hammers is basically about 135 miles of hard-core rock crawling and real desert racing,” said Pewe. “It’s one day and 100 entrants, and you have to qualify ahead of time. All of the desert racers thought they’d easily win it, and all of the rock guys thought the desert racers didn’t know how to crawl. So far, the rock guys have been right.”

Whether for recreation or competition, all off-road activities require one common denominator: land. Conflicts over land use between enthusiasts and environmentalists are likely to continue, but divergent communities—including the businesses whose livelihood depends upon off-road and outdoors consumers—could unite under a single banner to make their voices heard.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

Towing has become more popular over the past few years, and consumers have gradually become more cognizant of proper techniques. Products such as weight-distributing hitches, air suspension systems and helper springs remain popular for these applications.  

   
“SEMA does a commendable job of lobbying on behalf of the off-road market segment,” said McColloch, “but I’d love to see the varied 4x4 advocacy groups convene a summit with the intention of forming a truly nationwide organization with the financial and political wherewithal to compete vigorously—and negotiate compromises when necessary—with the larger, better-funded environmental groups, such as the Sierra Club or the World Wildlife Federation. I’ve often wondered if those of us in the off-road community have made the best of our opportunities to form partnerships with other outdoor enthusiasts who enjoy recreating in the backcountry.”

As the soft murmurs of economic recovery creep into conversations within the industry, retailers might pay closer attention to these trends. “People don’t spend the kind of money on their trucks that they used to,” Carpenter said. “Retailers are going to have to find a way to make a profit without the easy big-ticket items. They will have to be more efficient, more up-to-date and more helpful in order to win a customer’s business.”

They’re also going to have to diversify and educate themselves about new technologies. They’ll need to maintain inventory, tailor space to sales, embrace the Internet where necessary but provide personalized service whenever possible. Above all, they’ll need to deliver quality.

“Retailers need to guard against fly-by-night companies with prices that are too good to be true,” said Nick Gramelspacher, director of sales for Meyer Distributing. “A $50 leveling or lift kit gets you exactly that much quality, design and history.”

George Lathouris, Keystone Automotive Operations senior category manager said that his company sees steady sales through tried-and-true products that it has sold for many years. And Mandi Woodell, Weathers Auto Supply Inc. purchasing manager, said that soft- and hard-plastic truck-bed covers remain strong, even with a wealth of manufactures in that category. Woodell said that toolbox sales have diminished within her company as pricing in the category has climbed, but she thinks that part of the attrition may stem from encroachment by big-box retailers, which are quick to pounce on specialty sales when a market grows large enough to be seen as a more generalized accessory.

Lathouris pointed out that such product migration can go both ways. While big-box stores may elect to include some specialty products, specialty retailers can turn to replacement parts as an often-overlooked profit center.

“We don’t talk enough about some of the replacement products that everybody needs for trucks,” Lathouris said. “Whether a part is used under the hood or goes into the brake system, it’s tremendous business that is just not being taken advantage of by aftermarket retailers. All of us are always looking for the hot new trend, but stuff breaks as people hold on to their vehicles for longer periods. That becomes a selling opportunity. Some of the aftermarket shops should acknowledge those opportunities, embrace them and fill in those parts.”

They just need to follow where the roads lead.

Reps Report: What's Hot

As in previous stories on market trends, we asked a select group of manufacturers’ reps what was selling particularly well in the truck, SUV and off-road segment.

Greg Bernheisel, Considine Sales & Marketing vice president and partner:

Tubular products, such as grille guards and especially nerf bars, remain hot to this day. Tonneau covers and floor protection have also been growing, and people want to protect the interior of their vehicles. Tonneau covers help with gas mileage, and they also give you security. You can haul more stuff, and keep it hidden. The economy and gas prices play a big part in what people are going to put on their vehicles today. There are still a lot of opportunities out there, though, with the expansion of products and even territories.

Mike Bolio, RepForce Inc. accessories and performance parts representative:

Programmers are very hot right now, as are air intakes. Fuel economy is one reason, but people also want performance, especially in the diesel market. Both of those lines are easy add-ons, as are tubular parts. They’re big but very competitive markets. Mats and roll-up tonneau covers are doing well for us, and we’ve got a new water methanol injection system that we’re working with. Fleet business is an opportunity, and dress-up products are big. But right now, in this economy, function is the biggest consideration.

Chuck Lenhart, R&R Marketing Consultants Inc. sales representative:

New-truck sales being down has led to a resurgence of sorts in older vehicle product applications. This has presented a challenge for some vendors who have reduced production of some items thinking that sales may have peaked. Quality products from mainstay brands are always the best bet. Superchips and Edge programmers are solid product lines, and air-intake systems and fuel-mileage improvements from companies such as Airaid and Poweraid are still very much in demand. Revtek Suspensions, which makes quality leveling kits, is filling a need. Energy Suspension replacement bushings are also very much in demand and so are Baer Brakes. On the accessory side, Revolution airbag steering wheels from Grant Products are hot, and Bulldog Winch has an outstanding product line. Edelbrock’s new E-Force superchargers are really making a splash on the performance side. Really cool stuff!  

 

 

 

Thu, 04/01/2010 - 15:34

SEMA News - April 2010

By Steve Campbell

An Insiders’ Look at Where the Truck Roads Lead

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

One of the newest and most exciting forms of off-road racing is “The King of the Hammers”—a cross between all-out desert sprints and the tactical sport of rock crawling. Purpose-built machines such as this one pound and scramble over 100-plus-mile courses, clawing for the upper hand.  

   
The entire automotive landscape has changed over the past two years, but the effects of higher fuel prices and a deep recession may be most evident in the truck, sport utility and off-road segments of the industry. Super-sized SUVs have been particularly hard hit, with sales dropping precipitously and one previously vaunted brand vanishing into the dust of a receding market. Still, while ruts and rocks obscure the way, brighter vistas are coming into view.

In many cases, people own trucks and high-capacity vehicles because nothing else will do. Whether they’re tradesmen hauling bulky cargo or moms transporting gangs of kids, people must still get their loads to their appointed destinations. And while the entire ultra-large SUV segment may eventually succumb to market forces, smaller versions of pickups and utility vehicles—including the crossover segment that began to bloom even before the recession hit—can more than make up for the shortfall in the automotive specialty-equipment market.

“Small is beautiful,” said Douglas McColloch, editor in chief of Four Wheeler magazine. “There is likely to be a contraction in the number of truck-based fullsize V8 SUVs over the next few years in favor of higher-mileage unitbody all-wheel-drive midsize vehicles running smaller-displacement direct-injection engines. The market for a genuinely small pickup—à la ’80s-vintage Toyotas and Nissans—is ripe for the taking.”

For specialty-equipment businesses, perhaps even more telling than vehicle downsizing is a trend toward vehicle retention.

“We’ve seen a resurgence in the pre-owned truck market,” said Seth Gortenburg, owner of Chux Trux Inc. “It appears that enthusiasts are either keeping their vehicles rather than trading them in or are purchasing pre-owned instead of new. Many of the conversions that we are currently working on are not for the current body style.”

At the same time, the automakers are incorporating increasingly useful but also complex technology in each new vehicle iteration. Aftermarket manufacturers must therefore also continually upgrade and innovate to stay abreast of the marketplace. Specialty-equipment manufacturers must learn what affect such developments create and then adjust their products accordingly.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

The automotive landscape has changed over the past two years, but brighter vistas are on the horizon. Many people own trucks and high-capacity vehicles because nothing else will do, and smaller versions of pickups and utility vehicles—including the crossover segment that began to bloom even before the recession hit—can make up for the shortfall created by a flagging economy and rising fuel costs.  

   
“Electronic stability control will change the way truck owners outfit their vehicles with aftermarket products,” said Melanie White, marketing manager for Hellwig Products.” Consumers will need to be educated about how aftermarket products such as sway bars can help stabilize their vehicles and improve their vehicle’s handling.”

The automakers have also incorporated aftermarket-driven advances into their latest truck and SUV offerings. In years past, consumers sought specialty-equipment products to remedy the shortcomings of showroom vehicles. Recognizing
opportunity, some automakers have refined their products to directly target certain hardcore segments.

“The OEMs are coming up with real four-wheeling vehicles, such as the new Jeep JK Wrangler,” said Rick Pewe, editor of 4-Wheel & Off-Road magazine. “You can drive it over the Rubicon Trail or in Moab and then drive across the country to another hardcore ’wheeling area. It has selectable lockers, a four-to-one transfer case, 33-inch mud terrain tires—it’s already done for you as a factory offering.”

The upshot of those developments and the effects of the recession is an evolution in the marketplace, including adjustments in product development to accommodate consumer spending and consumer perceptions. There has been movement away from expensive specialty systems, for instance.

“The emergence of the leveling kit has opened up a lot of opportunities,” Gortenburg said. “People who want the aggressive look but either didn’t want to invest in the bigger kits or still wanted to park their trucks in the garage can now affordably fit larger tires and wheels.”

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

The recession has led some consumers to shy away from more expensive lift kits in favor of leveling kits, which allow the addition of plus-one or plus-two tire sizes at an affordable price.   

   
The shift is not limited to suspension products, according to McColloch. He cited a whole range of parts that have either maintained market share or actually seen sales increases, including off-road lights, shock absorbers and intake and exhaust systems, while more specialized products, such as complete IFS lift kits and larger off-road tire sizes have suffered because of the recession. 

At the same time, recreational truck owners have become more involved in family pursuits, such as camping, boating and family off-road travel. That upsurge can be a boon for those who manufacture and market towing products.

“Towing—and specifically more towing capacity—is a big deal,” Pewe said. “We’re seeing more and more people doing it the right way, setting up a vehicle to ride correctly rather than having the tail down. A lot of people are using air suspension to level their vehicles under tow, and they’re dispersing the weight better with weight-distributing hitches.”

Another recreational niche that has seen significant growth is the “overlander” market segment, in which truck owners enter into longer-term hunting, fishing, camping or backcountry trekking expeditions.

“There was an explosion of overland-related products at last year’s SEMA Show,” McColloch said, “and I imagine we’ll see this market segment expand in the coming years. The prospective truck owner doesn’t need to spend a lot of time and money re-engineering his truck to accommodate 44-inch tires in order to build a capable backcountry exploration rig.”

McColloch also predicted significant growth in the diesel truck market—though perhaps not in its current guise. Just as a trend toward smaller vehicles seems to be developing, the diesel market may also be evolving toward a more economical version.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

One recreational niche that has seen significant growth is the “overlander” market segment, in which truck owners enter into longer-term hunting, fishing, camping or  backcountry trekking expeditions.  

   
“We will almost surely see a proliferation of small-displacement, high-mileage, direct-injection diesel engines in midsize trucks and SUVs over the next decade,” McColloch said, adding as a caveat that both state and federal governments must first agree upon emissions standards that can be relied upon by the automakers. “Nearly all of the OEMs—and/or their European partners—have some truly awesome diesel powerplants ready to bring to market,” he said. “The only hang-ups are uncertainty over government regulations and some perceived softness in American consumer demand for diesel, which has begun to slacken with the proven success of small cars, such as the Volkswagen Jetta TDI, which can deliver up to 50 mpg on the highway.”

That perception of softness may be partially a result of what happened to the price of diesel when fuel prices skyrocketed. A large part of diesel’s appeal has always been its economic advantage over gasoline.

“It used to be that you had to have a diesel truck if you were pulling anything,” said Bob Carpenter, editor of 8-Lug HD Truck magazine. “But the cost of diesel fuel and the added cost to the initial purchase price for diesel-powered trucks has led a small percentage—maybe 5% but growing—to go with heavy-duty gas-powered trucks. That is one reason why we dropped the word ‘diesel’ from of our magazine title and replaced it with ‘HD,’ so we can cover those trucks, too.”

Hybrid and electric trucks are another phenomenon that the marketplace is anticipating. Several of the automakers market such vehicles, but they’ve not caught full fire with the public. Gortenburg said that his company is seeing quite a few hybrid crossovers come in for accessories such as towing and convenience products, but the pickup-buying public hasn’t followed suit.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

Soft and hard-plastic truck-bed covers are among the products that continue to do well in today’s economy. Tonneaus not only provide lockable bed storage but have also been shown to aid fuel economy.  

   
“There’s a lot of stuff that could be great about an electric 4x4, where you have torque right off the bat,” said Pewe, “You’d have a completely unique suspension because you don’t need axle shafts; you have the wheel motors. We’re not there because we don’t have the need or the technology yet. Electrics aren’t so great if you run out of juice in the middle of nowhere.”

For the most part, truck racing is also in status quo. The NASCAR truck series has drawn a consistent audience, and the various desert and short-course off-road series continue to draw well—although desert aficionados have been clamoring for a less-expensive grassroots alternative for some time. McColloch said that the Stock Mini and Stock Full classes in the SCORE series allow for some “average guy” competition, and White noted that Ivan Stewart’s “Pro Truck” is designed as a cost-effective vehicle for both short- and long-course off-road racing. But the real news in the dirt is the King of the Hammers series, which  McColloch said combines the thrills of high-speed desert racing with the technical skills of rock crawling and has grown from a small cult following to a full-on race series that will likely attract close to 100,000 fans this year.

“The King of the Hammers is basically about 135 miles of hard-core rock crawling and real desert racing,” said Pewe. “It’s one day and 100 entrants, and you have to qualify ahead of time. All of the desert racers thought they’d easily win it, and all of the rock guys thought the desert racers didn’t know how to crawl. So far, the rock guys have been right.”

Whether for recreation or competition, all off-road activities require one common denominator: land. Conflicts over land use between enthusiasts and environmentalists are likely to continue, but divergent communities—including the businesses whose livelihood depends upon off-road and outdoors consumers—could unite under a single banner to make their voices heard.

  SEMA NEWS-APRIL 2010-BUSINESS TRENDS 
 

Towing has become more popular over the past few years, and consumers have gradually become more cognizant of proper techniques. Products such as weight-distributing hitches, air suspension systems and helper springs remain popular for these applications.  

   
“SEMA does a commendable job of lobbying on behalf of the off-road market segment,” said McColloch, “but I’d love to see the varied 4x4 advocacy groups convene a summit with the intention of forming a truly nationwide organization with the financial and political wherewithal to compete vigorously—and negotiate compromises when necessary—with the larger, better-funded environmental groups, such as the Sierra Club or the World Wildlife Federation. I’ve often wondered if those of us in the off-road community have made the best of our opportunities to form partnerships with other outdoor enthusiasts who enjoy recreating in the backcountry.”

As the soft murmurs of economic recovery creep into conversations within the industry, retailers might pay closer attention to these trends. “People don’t spend the kind of money on their trucks that they used to,” Carpenter said. “Retailers are going to have to find a way to make a profit without the easy big-ticket items. They will have to be more efficient, more up-to-date and more helpful in order to win a customer’s business.”

They’re also going to have to diversify and educate themselves about new technologies. They’ll need to maintain inventory, tailor space to sales, embrace the Internet where necessary but provide personalized service whenever possible. Above all, they’ll need to deliver quality.

“Retailers need to guard against fly-by-night companies with prices that are too good to be true,” said Nick Gramelspacher, director of sales for Meyer Distributing. “A $50 leveling or lift kit gets you exactly that much quality, design and history.”

George Lathouris, Keystone Automotive Operations senior category manager said that his company sees steady sales through tried-and-true products that it has sold for many years. And Mandi Woodell, Weathers Auto Supply Inc. purchasing manager, said that soft- and hard-plastic truck-bed covers remain strong, even with a wealth of manufactures in that category. Woodell said that toolbox sales have diminished within her company as pricing in the category has climbed, but she thinks that part of the attrition may stem from encroachment by big-box retailers, which are quick to pounce on specialty sales when a market grows large enough to be seen as a more generalized accessory.

Lathouris pointed out that such product migration can go both ways. While big-box stores may elect to include some specialty products, specialty retailers can turn to replacement parts as an often-overlooked profit center.

“We don’t talk enough about some of the replacement products that everybody needs for trucks,” Lathouris said. “Whether a part is used under the hood or goes into the brake system, it’s tremendous business that is just not being taken advantage of by aftermarket retailers. All of us are always looking for the hot new trend, but stuff breaks as people hold on to their vehicles for longer periods. That becomes a selling opportunity. Some of the aftermarket shops should acknowledge those opportunities, embrace them and fill in those parts.”

They just need to follow where the roads lead.

Reps Report: What's Hot

As in previous stories on market trends, we asked a select group of manufacturers’ reps what was selling particularly well in the truck, SUV and off-road segment.

Greg Bernheisel, Considine Sales & Marketing vice president and partner:

Tubular products, such as grille guards and especially nerf bars, remain hot to this day. Tonneau covers and floor protection have also been growing, and people want to protect the interior of their vehicles. Tonneau covers help with gas mileage, and they also give you security. You can haul more stuff, and keep it hidden. The economy and gas prices play a big part in what people are going to put on their vehicles today. There are still a lot of opportunities out there, though, with the expansion of products and even territories.

Mike Bolio, RepForce Inc. accessories and performance parts representative:

Programmers are very hot right now, as are air intakes. Fuel economy is one reason, but people also want performance, especially in the diesel market. Both of those lines are easy add-ons, as are tubular parts. They’re big but very competitive markets. Mats and roll-up tonneau covers are doing well for us, and we’ve got a new water methanol injection system that we’re working with. Fleet business is an opportunity, and dress-up products are big. But right now, in this economy, function is the biggest consideration.

Chuck Lenhart, R&R Marketing Consultants Inc. sales representative:

New-truck sales being down has led to a resurgence of sorts in older vehicle product applications. This has presented a challenge for some vendors who have reduced production of some items thinking that sales may have peaked. Quality products from mainstay brands are always the best bet. Superchips and Edge programmers are solid product lines, and air-intake systems and fuel-mileage improvements from companies such as Airaid and Poweraid are still very much in demand. Revtek Suspensions, which makes quality leveling kits, is filling a need. Energy Suspension replacement bushings are also very much in demand and so are Baer Brakes. On the accessory side, Revolution airbag steering wheels from Grant Products are hot, and Bulldog Winch has an outstanding product line. Edelbrock’s new E-Force superchargers are really making a splash on the performance side. Really cool stuff!  

 

 

 

Thu, 04/01/2010 - 15:34

SEMA News - April 2010 

  SEMA NEWS-APRIL 2010-INDUSTRY NEWS 
 

Simmons, who passed away in February, was named SEMA Person of the Year in 1980 and was inducted into the SEMA Hall of Fame in 2004.  

   

Performance parts pioneer, SEMA Hall of Fame member and founder of SECO Equipment Company and SECO Performance Centers John Simmons passed away on Sunday, February 14.

“John Simmons was more than my mentor for more than 20 years,” said SEMA Chairman of the Board Rick Rollins. “He was like a father that you could always go to for the answers, and not the answers that you wanted to hear, but the ones that came from his many years of experience and, more importantly, from his heart.”

Simmons started his warehouse distribution business for performance parts in 1962. He began by selling parts from a trailer that he hauled to race tracks on weekends. By 1967, Simmons was committed to the performance parts business, but he also owned and operated the Helena Dragstrip. Soon after the track was closed in 1967 due to noise, Simmons, along with several partners, acquired Lassiter Mountain Speedway, which they ran for 10 years.

Simmons joined SEMA in 1969. He served three terms on the SEMA Board of Directors from 1978–1982, and he chaired the SEMA Finance Committee in 1981. He served on the awards judging committee from 1984–1986, chaired the Person of the Year Committee in 1987 and also served as Membership Committee chairman. Simmons was named SEMA Person of the Year in 1980 and was inducted into the SEMA Hall of Fame in 2004.

“John didn’t have time for the modern-day marketing surveys or 30,000-foot views of what was going on, because he knew,” Rollins said. “He stayed in touch with what was going on in the streets, on the race tracks and at the car shows. As a manufacturer sales manager, I made very few decisions concerning selling into distribution or running promotions without first consulting John. I will miss him.” 

 

  SEMA NEWS-APRIL 2010-INDUSTRY NEWS 
 

More than 50 educational seminars conducted at the 2009 SEMA Show are now available to download at www.sema.org/seminars.   

   

SEMA Show Seminars Delivered to Your Desktop

Did you miss the 50 world-class seminars at the 2009 SEMA Show? No problem. For the first time, SEMA has recorded and uploaded audio from every education session presented at the 2009 Show.

More than 50 sessions are now available for you to download, listen to at your convenience and refer back to at any time.

Members pay just $4.95 per session, or $9.95 per session for non-SEMA members.

Gain fresh insight and learn practical tools that can improve your business today from the SEMA Education Institute (SEI). Get started at www.sema.org/seminars.

 

 

  SEMA NEWS-APRIL 2010-INDUSTRY NEWS 
 

Exhibitor applications for the 2010 SEMA Show must be returned by May 7 in order for companies to participate in the priority space-selection process.  

   

Exhibit Space Applications for 2010 SEMA Show Now Available

Exhibitor applications are now available for the 2010 SEMA Show, which will be held Tuesday through Friday, November 2–5, 2010, in Las Vegas.

The forms are posted on the SEMA Show website and must be returned by May 7 in order for companies to participate in the priority space-selection process.

The SEMA Show is the premiere automotive accessories trade show in the world. The annual event draws more than 100,000 industry professionals, including 50,000 buyers and 2,300 media representatives.

To learn more about the SEMA Show and how to exhibit, visit www.SEMAShow.com or contact SEMA Show Management at 702/450-7662, x120.

 

SEMA Show Enhances Offerings for Paint and Body Market

  SEMA NEWS-APRIL 2010-INDUSTRY NEWS 
 

SEMA Show organizers are working with the Society of Collision and Repair Specialists and the Collision Industry Conference to enhance the Paint, Body & Equipment section of the 2010 SEMA Show.   

   

The Paint, Body & Equipment (PBE) area of the 2010 SEMA Show will be larger and in a more prominent location than it was in 2009, and educational sessions specific to the paint and body market will be offered during the event, set for November 2–5, in Las Vegas.

The move to enhance the PBE section by Show organizers was made due to SEMA Show attendees increasingly expressing interest in the paint and body market. While the PBE floor section was formally introduced in 2009, Show organizers had seen an increase in the product category for many years.

“We’re constantly adapting to changes in the industry,” said Chris Kersting, SEMA president and CEO. “We challenge ourselves to deliver high value to both exhibitors and attendees, all with the goal of providing them with a Show that is current and relevant.”

Organizers are also working with the Society of Collision and Repair Specialists (SCRS) and the Collision Industry Conference (CIC), both of which will host meetings for their groups in Las Vegas during the week of the SEMA Show. The SCRS is collaborating closely with SEMA to develop targeted educational seminars at the SEMA Show.

The Exhibit Space Rental Agreement (ESRA) for manufacturers is now available. Attendee registration opens in May. Updated SEMA Show information is also available at www.SEMAShow.com.

 

FAST FACTS

The Sports Car Club of America Inc. (SCCA) appointed Reece White to the position of public relations manager. White will manage the public relations efforts for such SCCA Pro Racing series as the World Challenge Championships, Playboy Mazda MX-5 Cup and Trans-Am Series as well as SCCA’s Club Racing, Solo and Rally programs. His duties will include producing feature articles, press releases and media materials on each of the SCCA programs. SCCA, Topeka, KS; 785/357-7222. 
 

THI Corp., parent company of Extang, TruXedo and BedRug, has hired Michael McGunagle as marketing director. He is responsible for the marketing and branding efforts for all THI product lines. McGunagle has 13 years of experience in the automotive aftermarket industry, working with companies such as Maxxis Tires and Eaton Corp. Extang, Ann Arbor, MI; 800/877-2588. TruXedo, Yankton, SD; 877/878-9336.

The team at CWR Electronics will participate in the American Cancer Society’s Relay for Life in Berkley Township, New Jersey, May 15–16. Team CWR will camp out overnight and take turns walking around the track at Veterans Park to raise money and awareness for the battle against cancer.

In December 2009, Carlisle Companies Inc. created Carlisle Engineered Transportation Solutions, which is comprised of Carlisle Tire & Wheel, Carlisle Industrial Brake & Friction and Carlisle Power Transmission. According to the company, combining the operations into one unit will strengthen the value of the Carlisle brand, create a differentiated platform for its markets and bolster Carlisle’s position with key manufacturing and distribution customers. Carlisle Tire & Wheel, Carson, CA; 310/816-1001.
 

Deeza Chassis Parts has added eCommerce capabilities to its website. The enhancements include the ability for customers to review stock quantities, place regular or drop-ship orders and review order history, statements and invoices.

Advantage Truck Acc. Inc. announced that the company’s quality management system has been assessed and registered by Intertek Testing Services NA Inc. as conforming to the requirements of ISO 9001:2008 as of January 25, 2010. Advantage Truck Accessories Inc., Elkhart, IN; 574/293-0979.

Mishimoto Automotive announced that its T-shirt Design Contest is underway as of February 8. The contest provides enthusiasts with the opportunity to determine the next installment in the Mishimoto apparel line. Mishimoto Automotive, Wilmington, DE; 877/GO-MISHI.

Edelbrock and the Center for Learning Unlimited have once again teamed up in support of helping children with learning disabilities to present the 5th Annual Rev’ved Up 4 Kidz VIP gala charity auction and car show, April 24–25. The weekend kicks off with a gala dinner and charity auction on Saturday evening at “Vic’s Garage,” hosted by event organizer Christi Edelbrock. Sunday, Edelbrock hosts the Rev’ved Up 4 Kidz Car Show, where all makes and models are welcome. Interested participants can pre-register here. Edelbrock, Torrance, CA; 310/781-2222.

Meyer Distributing added a new cross dock in Nashville that will act as a key location for the company’s distribution network. Meyer will provide route delivery to the Nashville metro area, Clarksville, Columbia and greater Tennessee from the new location. Meyer Distributing, Jasper, IN; 800/MEYERUSA.


 

The Association of Diesel Specialists Guadalajara regional event is set for May 19–23 at the Camino Real Hotel in Guadalajara, Jalisco, Mexico. The event showcases technical training courses and new technologies regarding fuel-injection systems. Attendees will also have the chance to explore the packed exhibit hall for the latest products and resources available.

Skyjacker Suspensions is offering a $35 consumer rebate on all Skyjacker Hydro H7000 series and Nitro N8000 series shocks and leveling kits. Unlike similar promotions, the rebate does not require the dealer to fill out any paperwork. Dealers simply sell the product, and the consumer and Skyjacker handle the rebate portion of the transaction. The promotion runs from March 1 to May 31. For more information, visit www.skyjacker.com/shockrebate. Skyjacker Suspensions, Monroe, LA; 318/388-0816.

Continental Tire North America announced a name change that better reflects the growth of the tire maker in both North and South America. The new name for the passenger and light-truck and commercial vehicle tire divisions in the region is now Continental Tire the Americas LLC. One of the key actions in 2009 that led to the decision to modify the name was the acquisition of a leading tire company in Latin America, Compañia Ecuatoriana del Caucho S.A. (ERCO).

RCH Designs announced the opening of its Studio Garage, a white room that is 25 ft. long and 35 ft. wide, with a custom silk ceiling baffle. The studio has lighting options for video and still photography. The studio currently offers the use of basic tools and machinery (an air compressor and air tools, a work bench, cordless power tools, wrenches, sockets, etc). RCH Designs, Huntington Beach, CA; 714/842-9899.

Fear This Inc., a nonprofit organization that provides safe-driver education to teens, has incorporated five exercises in its program that teach drivers to think and react quickly. Based on the Emergency Vehicle Operation Course (EVOC) undergone at all levels of law enforcement, Fear This Inc., founded by Woodrow Gaines, employs the Teen Vehicle Operation Course taught by peace officers and certified EVOC instructors. Fear This Inc., Snellville, GA; 770/823-7823.

Autobytel Inc. named Steve Lind executive vice president of corporate development. Lind brings to the company nearly 15 years of online and offline automotive experience, a rich collection of industry contacts and a proven track record of executive leadership honed at Nissan North America, LeadPoint, Stealing Home Media and through nearly 10 previous years of service
at Autobytel.

The first annual Winfield Award—presented by master customizer and designer Gene Winfield in recognition of automotive excellence—will be presented during the 2010 Syracuse Nationals, July 16–18. Winfield will choose six vehicles known as the Select Six from the entries, and the vehicles will be prominently displayed inside one of the main buildings at the nationals. Winfield will conduct the final judging at the show, and the winner will be announced on Saturday, July 17. The winner will receive a one-of-a-kind personalized commemorative jacket and $5,000. For additional details, call 800/753-3978.

Fidanza and Zoom Performance Products formed a new partnership known as the Clutch Alliance, which allows the two companies to work together on engineering and product development while continuing to exist as separate entities. Fidanza, Perry, OH;
440/259-5656.

Classic Instruments announced that it will sponsor the Pros Pick award at all National Street Rod Association (NSRA) events. The Classic Instruments Pros Pick award will be presented by the NSRA at all 11 events yearly, and the company will determine five Pros Pick recipients at each event. At the Street Rod Nationals, there will be 12 recipients chosen. Classic Instruments, Boyne City, MI; 231/582-0461.    

 

Thu, 04/01/2010 - 15:34

SEMA News - April 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.

Audi A7

When It Hits: The 2011 A7 will go into production during the second half of 2010, according to Priddy.

What Priddy Says: Priddy’s shooters caught the 2011 Audi A7 powersliding on a frozen lake and noticed a new feature—an automatic spoiler. Priddy says that the A7 is riding on a version of the next-gen A6 platform, and she expects Audi’s 300hp, supercharged V6 and a 4.2L V8 as the engine options in the United States.

SEMA NEWS-APRIL 2010-INDUSTRY NEWS-SPY PHOTOS 
   

2011 Jeep Grand Cherokee 

When It Hits: The new Jeep Grand Cherokee is expected to hit dealerships in September 2010.

What Priddy Says: Chrysler is already taking some stick at Jeep headquarters for making the 2011 Jeep Grand Cherokee look like nearly every other “soft-roader” SUV on the market. But a 280hp base V6 and an available Hemi V8 making 360 hp provide additional grunt to placate the faithful. If these spy shots are any indication, though, the Grand Cherokee looks to be able to handle itself off-road just fine. 

SEMA NEWS-APRIL 2010-INDUSTRY NEWS-SPY PHOTOS 
   

Lamborghini Jota 

When It Hits: Priddy said not to expect to see this Italian’s debut for at least a year. 

What Priddy Says: One photographer in Priddy’s spy network caught these shots of ice-track mule testing for what Priddy said is the Lamborghini Murciélago’s replacement—likely to be called the Jota. A direct-injection V12, aluminum space-frame chassis and extensive carbon fiber are likely to form the heart and body of the new bull, and Priddy speculated that a Haldex all-wheel-drive system will anchor the powertrain.

SEMA NEWS-APRIL 2010-INDUSTRY NEWS-SPY PHOTOS 
   

Porsche 911 

When It Hits: The 2011 Porsche 911 is expected to go on sale in May in Europe. A U.S. release is expected later this year.

What Priddy Says: The next-generation Porsche 911, internally called the 998, has begun winter testing. Earlier reports in some media suggested that this was the 911 Turbo, but Priddy noted the fake side air intakes in front of the rear wheels and the huge rear wing hiding the smaller spoiler typical of standard 911s to disprove those assumptions. Judging from the quad tailpipes on this prototype, Priddy said that this is most likely one of the “S” models.

SEMA NEWS-APRIL 2010-INDUSTRY NEWS-SPY PHOTOS 
Thu, 04/01/2010 - 15:34

SEMA News - April 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.

Audi A7

When It Hits: The 2011 A7 will go into production during the second half of 2010, according to Priddy.

What Priddy Says: Priddy’s shooters caught the 2011 Audi A7 powersliding on a frozen lake and noticed a new feature—an automatic spoiler. Priddy says that the A7 is riding on a version of the next-gen A6 platform, and she expects Audi’s 300hp, supercharged V6 and a 4.2L V8 as the engine options in the United States.

SEMA NEWS-APRIL 2010-INDUSTRY NEWS-SPY PHOTOS 
   

2011 Jeep Grand Cherokee 

When It Hits: The new Jeep Grand Cherokee is expected to hit dealerships in September 2010.

What Priddy Says: Chrysler is already taking some stick at Jeep headquarters for making the 2011 Jeep Grand Cherokee look like nearly every other “soft-roader” SUV on the market. But a 280hp base V6 and an available Hemi V8 making 360 hp provide additional grunt to placate the faithful. If these spy shots are any indication, though, the Grand Cherokee looks to be able to handle itself off-road just fine. 

SEMA NEWS-APRIL 2010-INDUSTRY NEWS-SPY PHOTOS 
   

Lamborghini Jota 

When It Hits: Priddy said not to expect to see this Italian’s debut for at least a year. 

What Priddy Says: One photographer in Priddy’s spy network caught these shots of ice-track mule testing for what Priddy said is the Lamborghini Murciélago’s replacement—likely to be called the Jota. A direct-injection V12, aluminum space-frame chassis and extensive carbon fiber are likely to form the heart and body of the new bull, and Priddy speculated that a Haldex all-wheel-drive system will anchor the powertrain.

SEMA NEWS-APRIL 2010-INDUSTRY NEWS-SPY PHOTOS 
   

Porsche 911 

When It Hits: The 2011 Porsche 911 is expected to go on sale in May in Europe. A U.S. release is expected later this year.

What Priddy Says: The next-generation Porsche 911, internally called the 998, has begun winter testing. Earlier reports in some media suggested that this was the 911 Turbo, but Priddy noted the fake side air intakes in front of the rear wheels and the huge rear wing hiding the smaller spoiler typical of standard 911s to disprove those assumptions. Judging from the quad tailpipes on this prototype, Priddy said that this is most likely one of the “S” models.

SEMA NEWS-APRIL 2010-INDUSTRY NEWS-SPY PHOTOS 
Thu, 04/01/2010 - 15:34

SEMA News - April 2010

By Dan Frio

With a Growing Middle Class and Avid Automotive Enthusiasm, Mexico and Its Neighbors Offer a Great International Expansion Opportunity for SEMA Members 

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

Mexico City will host the 12th edition of the PAACE Automechanika, where buyers from throughout Latin America will converge.  

   
As one of the fastest-growing market sectors in Mexico, the automotive industry presents a timely opportunity for SEMA members seeking to establish a foothold in this expanding consumer base. The annual SEMA Show is one of the best places for specialty-equipment manufacturers to meet with buyers from Mexico, with more than 1,157 attending the Show in 2009. But don’t wait until November to start making contacts. The 12th edition of the PAACE Automechanika, July 14–16 in Mexico City, draws automotive professionals and buyers from throughout Latin America and presents a great opportunity to test the market.

“Mexico is a very important market for us and offers growing potential for our products,” says Joseph Lombardi, director of international sales for transmission and driveline supplier Sonnax. Last year was the company’s fourth time exhibiting at PAACE Mexico City.

“It’s a great show, an entry point into building and growing already existing or new sales in the region. In spite of the economic downturn that affected Mexico, last year’s show was well-attended, and our booth was quite busy all three days.”

This year’s show will feature new additions to the program, as well as some popular favorites. West Coast Customs Mexico will return to the show with its popular workshop series, customizing several vehicles over the course of the show days, and bringing more exposure to Mexico’s specialty-equipment market.

One new feature of the 2010 event is a New Products Showcase area, offering exhibitors the opportunity to display products released into the market within the last year, along with an 8.5- x 11-inch document listing technical information for installers.

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

In addition to top show vehicles from local clubs and domestic manufacturers, this year’s PAACE Automechanika show floor will feature expanded product categories, including collision and repair.   

   
Another new development involves the Automotive Service Association (ASA), the key association for U.S. automotive service and repair professionals. The ASA will host a series of complimentary educational sessions that will feature nine seminars covering collision repair, business management and mechanical topics.

Service and repair professionals attending PAACE Automechanika Mexico 2010 will benefit from an enhanced educational program and expanded product categories on the show floor, with support from the association. In addition to the enhanced seminar program, PAACE Automechanika Mexico expects to expand the presence of collision repair manufacturers on the show floor, showcasing their products to the Mexican market. And, as in past shows, exhibitors are offered the opportunity to host seminars at the show free of charge.

PAACE Automechanika is also certified by the U.S. Department of Commerce, which is working to bring buyer delegations from Central American countries and provide matchmaking assistance to U.S. exhibitors.

“PAACE Automechanika is an excellent venue for U.S. companies to connect not only with Mexican buyers, but to take advantage of the growing number of buyers from surrounding countries and throughout Latin America,” says Linda Spencer, SEMA director of international relations. The Mexican automotive market is one of the fastest-growing markets in the country. In 2008, SEMA reported that there were about 10 million passenger vehicles on the road—about one to every 13.3 people. (For comparison, there is one vehicle per 2.2 people in the United States) Many among the growing middle class in Mexico are seeking to purchase their first vehicles.

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

Retail sales of specialty equipment in Mexico were estimated at around $1.5 billion.  

   
The country has not been immune to the global economic slump, however. Mexico’s automotive trade association, asociación mexicana de la industria automotriz a.c. (AMIA), noted that sales of light vehicles in 2009 were down 26% from the year prior. Still, Mexican car buyers bought 2 million vehicles in 2007 alone, split evenly among new- and used-vehicle purchases, which capped a trend of four consecutive years of more than 1 million car sales.

SEMA reported that about 60% of new cars sold in Mexico are U.S. brands, although they are often the European versions. The best-selling Chevrolet Chevy, for example, is based on the European Opel Corsa.

The most popular cars to customize, according to the 2008 report, include the Chevy, Ford Focus and Ford Mustang. Ford trucks are similarly popular, with the Ranger among the most modified trucks, and the Explorer Eco Sport is one of the top tricked-out SUVs. Other popular trucks targeted for customization include the Dodge Ram, Toyota Tundra and various Nissans. The Jeep Cherokee is another popular SUV.

The U.S. Embassy in Mexico estimates retail sales in the specialty-equipment industry at about $1.1 billion, although distributors surveyed by SEMA placed the number slightly higher, at $1.5 billion. The specialty-equipment/accessories segment represents approximately 11% of the total aftermarket segment, according to SEMA research.

What are Mexican enthusiasts buying? According to data complied by the U.S. Embassy in Mexico, the most popular products are specialty wheels and tires, audio and interior accessories, pickup bed covers, toolboxes, security systems and car-care products. And styling products just edged performance goods as most popular by a slim margin of 52% to 49%, according to SEMA’s 2008 report.

American-made products enjoy the most esteemed reputation for quality among Mexican buyers, followed by European brands and domestic offerings. 

For more information on PAACE, contact Linda Spencer.  
Thu, 04/01/2010 - 15:34

SEMA News - April 2010

By Dan Frio

With a Growing Middle Class and Avid Automotive Enthusiasm, Mexico and Its Neighbors Offer a Great International Expansion Opportunity for SEMA Members 

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

Mexico City will host the 12th edition of the PAACE Automechanika, where buyers from throughout Latin America will converge.  

   
As one of the fastest-growing market sectors in Mexico, the automotive industry presents a timely opportunity for SEMA members seeking to establish a foothold in this expanding consumer base. The annual SEMA Show is one of the best places for specialty-equipment manufacturers to meet with buyers from Mexico, with more than 1,157 attending the Show in 2009. But don’t wait until November to start making contacts. The 12th edition of the PAACE Automechanika, July 14–16 in Mexico City, draws automotive professionals and buyers from throughout Latin America and presents a great opportunity to test the market.

“Mexico is a very important market for us and offers growing potential for our products,” says Joseph Lombardi, director of international sales for transmission and driveline supplier Sonnax. Last year was the company’s fourth time exhibiting at PAACE Mexico City.

“It’s a great show, an entry point into building and growing already existing or new sales in the region. In spite of the economic downturn that affected Mexico, last year’s show was well-attended, and our booth was quite busy all three days.”

This year’s show will feature new additions to the program, as well as some popular favorites. West Coast Customs Mexico will return to the show with its popular workshop series, customizing several vehicles over the course of the show days, and bringing more exposure to Mexico’s specialty-equipment market.

One new feature of the 2010 event is a New Products Showcase area, offering exhibitors the opportunity to display products released into the market within the last year, along with an 8.5- x 11-inch document listing technical information for installers.

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

In addition to top show vehicles from local clubs and domestic manufacturers, this year’s PAACE Automechanika show floor will feature expanded product categories, including collision and repair.   

   
Another new development involves the Automotive Service Association (ASA), the key association for U.S. automotive service and repair professionals. The ASA will host a series of complimentary educational sessions that will feature nine seminars covering collision repair, business management and mechanical topics.

Service and repair professionals attending PAACE Automechanika Mexico 2010 will benefit from an enhanced educational program and expanded product categories on the show floor, with support from the association. In addition to the enhanced seminar program, PAACE Automechanika Mexico expects to expand the presence of collision repair manufacturers on the show floor, showcasing their products to the Mexican market. And, as in past shows, exhibitors are offered the opportunity to host seminars at the show free of charge.

PAACE Automechanika is also certified by the U.S. Department of Commerce, which is working to bring buyer delegations from Central American countries and provide matchmaking assistance to U.S. exhibitors.

“PAACE Automechanika is an excellent venue for U.S. companies to connect not only with Mexican buyers, but to take advantage of the growing number of buyers from surrounding countries and throughout Latin America,” says Linda Spencer, SEMA director of international relations. The Mexican automotive market is one of the fastest-growing markets in the country. In 2008, SEMA reported that there were about 10 million passenger vehicles on the road—about one to every 13.3 people. (For comparison, there is one vehicle per 2.2 people in the United States) Many among the growing middle class in Mexico are seeking to purchase their first vehicles.

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

Retail sales of specialty equipment in Mexico were estimated at around $1.5 billion.  

   
The country has not been immune to the global economic slump, however. Mexico’s automotive trade association, asociación mexicana de la industria automotriz a.c. (AMIA), noted that sales of light vehicles in 2009 were down 26% from the year prior. Still, Mexican car buyers bought 2 million vehicles in 2007 alone, split evenly among new- and used-vehicle purchases, which capped a trend of four consecutive years of more than 1 million car sales.

SEMA reported that about 60% of new cars sold in Mexico are U.S. brands, although they are often the European versions. The best-selling Chevrolet Chevy, for example, is based on the European Opel Corsa.

The most popular cars to customize, according to the 2008 report, include the Chevy, Ford Focus and Ford Mustang. Ford trucks are similarly popular, with the Ranger among the most modified trucks, and the Explorer Eco Sport is one of the top tricked-out SUVs. Other popular trucks targeted for customization include the Dodge Ram, Toyota Tundra and various Nissans. The Jeep Cherokee is another popular SUV.

The U.S. Embassy in Mexico estimates retail sales in the specialty-equipment industry at about $1.1 billion, although distributors surveyed by SEMA placed the number slightly higher, at $1.5 billion. The specialty-equipment/accessories segment represents approximately 11% of the total aftermarket segment, according to SEMA research.

What are Mexican enthusiasts buying? According to data complied by the U.S. Embassy in Mexico, the most popular products are specialty wheels and tires, audio and interior accessories, pickup bed covers, toolboxes, security systems and car-care products. And styling products just edged performance goods as most popular by a slim margin of 52% to 49%, according to SEMA’s 2008 report.

American-made products enjoy the most esteemed reputation for quality among Mexican buyers, followed by European brands and domestic offerings. 

For more information on PAACE, contact Linda Spencer.  
Thu, 04/01/2010 - 15:34

SEMA News - April 2010

By Dan Frio

With a Growing Middle Class and Avid Automotive Enthusiasm, Mexico and Its Neighbors Offer a Great International Expansion Opportunity for SEMA Members 

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

Mexico City will host the 12th edition of the PAACE Automechanika, where buyers from throughout Latin America will converge.  

   
As one of the fastest-growing market sectors in Mexico, the automotive industry presents a timely opportunity for SEMA members seeking to establish a foothold in this expanding consumer base. The annual SEMA Show is one of the best places for specialty-equipment manufacturers to meet with buyers from Mexico, with more than 1,157 attending the Show in 2009. But don’t wait until November to start making contacts. The 12th edition of the PAACE Automechanika, July 14–16 in Mexico City, draws automotive professionals and buyers from throughout Latin America and presents a great opportunity to test the market.

“Mexico is a very important market for us and offers growing potential for our products,” says Joseph Lombardi, director of international sales for transmission and driveline supplier Sonnax. Last year was the company’s fourth time exhibiting at PAACE Mexico City.

“It’s a great show, an entry point into building and growing already existing or new sales in the region. In spite of the economic downturn that affected Mexico, last year’s show was well-attended, and our booth was quite busy all three days.”

This year’s show will feature new additions to the program, as well as some popular favorites. West Coast Customs Mexico will return to the show with its popular workshop series, customizing several vehicles over the course of the show days, and bringing more exposure to Mexico’s specialty-equipment market.

One new feature of the 2010 event is a New Products Showcase area, offering exhibitors the opportunity to display products released into the market within the last year, along with an 8.5- x 11-inch document listing technical information for installers.

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

In addition to top show vehicles from local clubs and domestic manufacturers, this year’s PAACE Automechanika show floor will feature expanded product categories, including collision and repair.   

   
Another new development involves the Automotive Service Association (ASA), the key association for U.S. automotive service and repair professionals. The ASA will host a series of complimentary educational sessions that will feature nine seminars covering collision repair, business management and mechanical topics.

Service and repair professionals attending PAACE Automechanika Mexico 2010 will benefit from an enhanced educational program and expanded product categories on the show floor, with support from the association. In addition to the enhanced seminar program, PAACE Automechanika Mexico expects to expand the presence of collision repair manufacturers on the show floor, showcasing their products to the Mexican market. And, as in past shows, exhibitors are offered the opportunity to host seminars at the show free of charge.

PAACE Automechanika is also certified by the U.S. Department of Commerce, which is working to bring buyer delegations from Central American countries and provide matchmaking assistance to U.S. exhibitors.

“PAACE Automechanika is an excellent venue for U.S. companies to connect not only with Mexican buyers, but to take advantage of the growing number of buyers from surrounding countries and throughout Latin America,” says Linda Spencer, SEMA director of international relations. The Mexican automotive market is one of the fastest-growing markets in the country. In 2008, SEMA reported that there were about 10 million passenger vehicles on the road—about one to every 13.3 people. (For comparison, there is one vehicle per 2.2 people in the United States) Many among the growing middle class in Mexico are seeking to purchase their first vehicles.

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

Retail sales of specialty equipment in Mexico were estimated at around $1.5 billion.  

   
The country has not been immune to the global economic slump, however. Mexico’s automotive trade association, asociación mexicana de la industria automotriz a.c. (AMIA), noted that sales of light vehicles in 2009 were down 26% from the year prior. Still, Mexican car buyers bought 2 million vehicles in 2007 alone, split evenly among new- and used-vehicle purchases, which capped a trend of four consecutive years of more than 1 million car sales.

SEMA reported that about 60% of new cars sold in Mexico are U.S. brands, although they are often the European versions. The best-selling Chevrolet Chevy, for example, is based on the European Opel Corsa.

The most popular cars to customize, according to the 2008 report, include the Chevy, Ford Focus and Ford Mustang. Ford trucks are similarly popular, with the Ranger among the most modified trucks, and the Explorer Eco Sport is one of the top tricked-out SUVs. Other popular trucks targeted for customization include the Dodge Ram, Toyota Tundra and various Nissans. The Jeep Cherokee is another popular SUV.

The U.S. Embassy in Mexico estimates retail sales in the specialty-equipment industry at about $1.1 billion, although distributors surveyed by SEMA placed the number slightly higher, at $1.5 billion. The specialty-equipment/accessories segment represents approximately 11% of the total aftermarket segment, according to SEMA research.

What are Mexican enthusiasts buying? According to data complied by the U.S. Embassy in Mexico, the most popular products are specialty wheels and tires, audio and interior accessories, pickup bed covers, toolboxes, security systems and car-care products. And styling products just edged performance goods as most popular by a slim margin of 52% to 49%, according to SEMA’s 2008 report.

American-made products enjoy the most esteemed reputation for quality among Mexican buyers, followed by European brands and domestic offerings. 

For more information on PAACE, contact Linda Spencer.  
Thu, 04/01/2010 - 15:34

SEMA News - April 2010

By Dan Frio

With a Growing Middle Class and Avid Automotive Enthusiasm, Mexico and Its Neighbors Offer a Great International Expansion Opportunity for SEMA Members 

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

Mexico City will host the 12th edition of the PAACE Automechanika, where buyers from throughout Latin America will converge.  

   
As one of the fastest-growing market sectors in Mexico, the automotive industry presents a timely opportunity for SEMA members seeking to establish a foothold in this expanding consumer base. The annual SEMA Show is one of the best places for specialty-equipment manufacturers to meet with buyers from Mexico, with more than 1,157 attending the Show in 2009. But don’t wait until November to start making contacts. The 12th edition of the PAACE Automechanika, July 14–16 in Mexico City, draws automotive professionals and buyers from throughout Latin America and presents a great opportunity to test the market.

“Mexico is a very important market for us and offers growing potential for our products,” says Joseph Lombardi, director of international sales for transmission and driveline supplier Sonnax. Last year was the company’s fourth time exhibiting at PAACE Mexico City.

“It’s a great show, an entry point into building and growing already existing or new sales in the region. In spite of the economic downturn that affected Mexico, last year’s show was well-attended, and our booth was quite busy all three days.”

This year’s show will feature new additions to the program, as well as some popular favorites. West Coast Customs Mexico will return to the show with its popular workshop series, customizing several vehicles over the course of the show days, and bringing more exposure to Mexico’s specialty-equipment market.

One new feature of the 2010 event is a New Products Showcase area, offering exhibitors the opportunity to display products released into the market within the last year, along with an 8.5- x 11-inch document listing technical information for installers.

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

In addition to top show vehicles from local clubs and domestic manufacturers, this year’s PAACE Automechanika show floor will feature expanded product categories, including collision and repair.   

   
Another new development involves the Automotive Service Association (ASA), the key association for U.S. automotive service and repair professionals. The ASA will host a series of complimentary educational sessions that will feature nine seminars covering collision repair, business management and mechanical topics.

Service and repair professionals attending PAACE Automechanika Mexico 2010 will benefit from an enhanced educational program and expanded product categories on the show floor, with support from the association. In addition to the enhanced seminar program, PAACE Automechanika Mexico expects to expand the presence of collision repair manufacturers on the show floor, showcasing their products to the Mexican market. And, as in past shows, exhibitors are offered the opportunity to host seminars at the show free of charge.

PAACE Automechanika is also certified by the U.S. Department of Commerce, which is working to bring buyer delegations from Central American countries and provide matchmaking assistance to U.S. exhibitors.

“PAACE Automechanika is an excellent venue for U.S. companies to connect not only with Mexican buyers, but to take advantage of the growing number of buyers from surrounding countries and throughout Latin America,” says Linda Spencer, SEMA director of international relations. The Mexican automotive market is one of the fastest-growing markets in the country. In 2008, SEMA reported that there were about 10 million passenger vehicles on the road—about one to every 13.3 people. (For comparison, there is one vehicle per 2.2 people in the United States) Many among the growing middle class in Mexico are seeking to purchase their first vehicles.

  SEMA NEWS-APRIL 2010-INTERNATIONAL-MEXICO 
 

Retail sales of specialty equipment in Mexico were estimated at around $1.5 billion.  

   
The country has not been immune to the global economic slump, however. Mexico’s automotive trade association, asociación mexicana de la industria automotriz a.c. (AMIA), noted that sales of light vehicles in 2009 were down 26% from the year prior. Still, Mexican car buyers bought 2 million vehicles in 2007 alone, split evenly among new- and used-vehicle purchases, which capped a trend of four consecutive years of more than 1 million car sales.

SEMA reported that about 60% of new cars sold in Mexico are U.S. brands, although they are often the European versions. The best-selling Chevrolet Chevy, for example, is based on the European Opel Corsa.

The most popular cars to customize, according to the 2008 report, include the Chevy, Ford Focus and Ford Mustang. Ford trucks are similarly popular, with the Ranger among the most modified trucks, and the Explorer Eco Sport is one of the top tricked-out SUVs. Other popular trucks targeted for customization include the Dodge Ram, Toyota Tundra and various Nissans. The Jeep Cherokee is another popular SUV.

The U.S. Embassy in Mexico estimates retail sales in the specialty-equipment industry at about $1.1 billion, although distributors surveyed by SEMA placed the number slightly higher, at $1.5 billion. The specialty-equipment/accessories segment represents approximately 11% of the total aftermarket segment, according to SEMA research.

What are Mexican enthusiasts buying? According to data complied by the U.S. Embassy in Mexico, the most popular products are specialty wheels and tires, audio and interior accessories, pickup bed covers, toolboxes, security systems and car-care products. And styling products just edged performance goods as most popular by a slim margin of 52% to 49%, according to SEMA’s 2008 report.

American-made products enjoy the most esteemed reputation for quality among Mexican buyers, followed by European brands and domestic offerings. 

For more information on PAACE, contact Linda Spencer.