SEMA News - December 2009

By Steve Campbell

Both Sides Have Much to Gain From Collaborative Efforts

There is no better place than the SEMA Show for OEM engineers, marketing and public relations personnel to learn firsthand about the breadth of products available from the aftermarket.

This is the first in a series of SEMA News stories based on the idea of “Best Practices”—the use of reliable and repeatable methods to ensure business success. In coming issues, we will delve into topics ranging from digital and traditional marketing to employer/employee relations, from getting the most out of trade shows to exploring global distribution. In each case, we will point the way to overcoming what the American Productivity & Quality Center has identified as one of three major hurdles to developing Best Practices: lack of knowledge. And we hope to help in conquering the other two: lack of motivation and lack of skills.

SEMA-member companies have a vested interest in the new- and used-vehicle marketplace. The more cars and trucks rolling out the showroom doors, the larger the potential for accessory sales. Conversely, the original-equipment manufacturers (OEMs) and their dealers stand to profit from working with SEMA companies to ensure that those vehicles offer the best prospect for personalization. In this era when doing it your way may mean the difference between a consumer making a purchase or keeping a closed wallet, every incentive counts. The following comprise the Best Practices for the OEMs to work with SEMA-member companies for the benefit of both.

Measuring Sessions

SEMA Measuring Sessions provide an opportunity for SEMA companies to develop products using data—measurements—gained from late prototypes or production versions of yet-to-be released vehicles. Based on Measuring Session data, specialty-equipment manufacturers have developed interior and exterior components and even some powertrain and drivetrain parts. The association’s manufacturer members are alerted weeks in advance of each session, and the resulting products eventually become one more sales tools for dealerships to promote on the showroom floor—or even to incorporate into their own private-label branding through supplier partnerships. The investment for the OEMs is insignificant compared with the potential returns.

Technology Transfer

While Measuring Sessions offer after-the-fact help with product development, the SEMA Technology Transfer program provides a more accurate and definitive means of first-generation design. The forward-thinking automakers who take part in Technology Transfer provide computer-aided-design (CAD) data directly from their own files so that specialty-equipment companies may develop ancillary products for upcoming cars and trucks. With such precise data, SEMA companies can use advanced software to deliver properly engineered and fitted parts well before a vehicle reaches the dealership. When the first customer walks in the door, a dealer salesperson can provide personalization options from both proprietary and third-party sources. The customer gets exactly what he or she wants, and the aftermarket helps sell another vehicle.

Vehicle Technology Briefing Sessions

As vehicle technology advances and systems become increasingly complex, SEMA educates and updates its members by providing information, research and insights for developing products, services and solutions quickly to enhance driver performance, safety, connectivity and entertainment. The Vehicle Technology Briefing series of seminars brings together the best minds from the most innovative companies to share not only the latest technological developments, but also the opportunities that result for both the OEMs and specialty-equipment companies. Organized by John Waraniak, SEMA’s vice president of vehicle technology, the sessions have covered topics that range from electronic stability control systems and green performance to electronics systems integration for both safety and infotainment. Interactive discussions with the audience are a major part of each program, and every session has included comments from the OEMs as well as specialty-equipment companies—both of which profit from keeping an eye on tomorrow.

The SEMA Show

The OEMs have become increasingly active at the SEMA Show, with more than a dozen brands exhibiting in the past two years. There is no better place for OEM engineers and marketing and public relations personnel to learn firsthand about the breadth of products available from the aftermarket for use in today’s vehicles and incorporation into future offerings through accessory-friendly designs. With the Show segmented into 12 market channels—including trucks, SUVs and off-road; wheels and tires; mobile electronics and technology; paint, body and equipment and many more—every phase of automotive design and innovation is covered. Partnerships that are now decades old were born at the SEMA Show.

Dealer Day at the SEMA Show

While the manufacturing arm of the new-car market is well-represented at the SEMA Show, it also holds a wealth of information and profit potential for car dealers. Dealer Day at the SEMA Show is designed to provide new- and used-vehicle dealers with a clear understanding of how to increase profits through accessory sales and how to integrate an accessory program into the fixed operations of any dealership. Held in cooperation with the National Automobile Dealers Association (NADA) and NAIDA, Dealer Day delivers educational meetings hosted by industry professionals and dealerships that have successfully incorporated accessory sales into their businesses. The programs also educate dealers about the use of third-party installers, inventory processes and stimulating floor traffic through display vehicles. Learning about the market makes sense for those who wish to expand profits during difficult times.

ProPledge

The ProPledge warranty assurance initiative is designed to increase sales of specialty automotive products through new- and used-car dealers by offering customers a standardized, uniform warranty that covers defects in products and installation for a minimum of 36 months/36,000 miles. Administered by the Specialty Equipment Warranty Alliance (SEWA) subsidiary of SEMA, ProPledge shows that the industry stands behind its products and services and gives both auto dealers and consumers peace of mind in personalizing vehicles. ProPledge includes protection in the event that a product or installation defect results in the denial of a vehicle warranty claim. Here is the complete list of participating manufacturers and installers and information about ProPledge. For more information, e-mail sewa@propledge.com.

Installer Certification Programs

The SEMA Installer Certification Program is a voluntary process through which accessory installers prove their abilities either within car dealerships or at independent repair and service businesses. By meeting all of the eligibility criteria and passing one or more tests, installers earn credentials that promote consumer trust and confidence. Because the tests are a true measure of an installer’s know-how and expertise, certification provides a higher level of professionalism. SEMA partnered with ASE, the National Institute of Automotive Service Excellence, to develop this nationwide program exclusively for accessory installation professionals, helping to make dealerships and independent businesses stronger and more competitive.

Getting to Know John Waraniak and Bill Wolf

John Waraniak and Bill Wolf are distinguished professionals who engage in almost daily contact with OEM companies, providing them with unique insights into the auto manufacturing community as well as SEMA members. Waraniak heads up SEMA’s advanced vehicle technology strategy, programs and initiatives and has worked for automotive, motorsports, aerospace and consumer products companies for more than two decades. Wolf, SEMA’s senior director of OEM relations, is the direct liaison between the association and the automakers, and he has held executive positions with Mazda, Hyundai and Nissan. Both are available for consultation on any collaborative effort and can provide help in detailing a wide range of options and establishing contact between key personnel in the industry.

Don’t Assume; Take the Time to Learn

SEMA and its member companies recognize the pivotal role that the OEMs play in their businesses. As many vehicle sales outlets have discovered, SEMA companies can also be the fulcrum on which to leverage profits for the OEMs and their dealer networks. “Tighter profit margins and decreased service revenue have dealers eager to find new profit centers,” said Chris Kersting, SEMA president and CEO. “Adding new dealerships to the retail ranks means market growth because dealers reach a broad range of consumers and can offer financing as part of the vehicle package. SEMA is working hard to help dealers learn more about these opportunities.” As more and more OEMs work to create accessory-friendly vehicles, those profit prospects will continue to grow. That type of collaboration ranks as the top Best Practice of all.

 

SEMA News - December 2009

By Steve Campbell

Both Sides Have Much to Gain From Collaborative Efforts

There is no better place than the SEMA Show for OEM engineers, marketing and public relations personnel to learn firsthand about the breadth of products available from the aftermarket.

This is the first in a series of SEMA News stories based on the idea of “Best Practices”—the use of reliable and repeatable methods to ensure business success. In coming issues, we will delve into topics ranging from digital and traditional marketing to employer/employee relations, from getting the most out of trade shows to exploring global distribution. In each case, we will point the way to overcoming what the American Productivity & Quality Center has identified as one of three major hurdles to developing Best Practices: lack of knowledge. And we hope to help in conquering the other two: lack of motivation and lack of skills.

SEMA-member companies have a vested interest in the new- and used-vehicle marketplace. The more cars and trucks rolling out the showroom doors, the larger the potential for accessory sales. Conversely, the original-equipment manufacturers (OEMs) and their dealers stand to profit from working with SEMA companies to ensure that those vehicles offer the best prospect for personalization. In this era when doing it your way may mean the difference between a consumer making a purchase or keeping a closed wallet, every incentive counts. The following comprise the Best Practices for the OEMs to work with SEMA-member companies for the benefit of both.

Measuring Sessions

SEMA Measuring Sessions provide an opportunity for SEMA companies to develop products using data—measurements—gained from late prototypes or production versions of yet-to-be released vehicles. Based on Measuring Session data, specialty-equipment manufacturers have developed interior and exterior components and even some powertrain and drivetrain parts. The association’s manufacturer members are alerted weeks in advance of each session, and the resulting products eventually become one more sales tools for dealerships to promote on the showroom floor—or even to incorporate into their own private-label branding through supplier partnerships. The investment for the OEMs is insignificant compared with the potential returns.

Technology Transfer

While Measuring Sessions offer after-the-fact help with product development, the SEMA Technology Transfer program provides a more accurate and definitive means of first-generation design. The forward-thinking automakers who take part in Technology Transfer provide computer-aided-design (CAD) data directly from their own files so that specialty-equipment companies may develop ancillary products for upcoming cars and trucks. With such precise data, SEMA companies can use advanced software to deliver properly engineered and fitted parts well before a vehicle reaches the dealership. When the first customer walks in the door, a dealer salesperson can provide personalization options from both proprietary and third-party sources. The customer gets exactly what he or she wants, and the aftermarket helps sell another vehicle.

Vehicle Technology Briefing Sessions

As vehicle technology advances and systems become increasingly complex, SEMA educates and updates its members by providing information, research and insights for developing products, services and solutions quickly to enhance driver performance, safety, connectivity and entertainment. The Vehicle Technology Briefing series of seminars brings together the best minds from the most innovative companies to share not only the latest technological developments, but also the opportunities that result for both the OEMs and specialty-equipment companies. Organized by John Waraniak, SEMA’s vice president of vehicle technology, the sessions have covered topics that range from electronic stability control systems and green performance to electronics systems integration for both safety and infotainment. Interactive discussions with the audience are a major part of each program, and every session has included comments from the OEMs as well as specialty-equipment companies—both of which profit from keeping an eye on tomorrow.

The SEMA Show

The OEMs have become increasingly active at the SEMA Show, with more than a dozen brands exhibiting in the past two years. There is no better place for OEM engineers and marketing and public relations personnel to learn firsthand about the breadth of products available from the aftermarket for use in today’s vehicles and incorporation into future offerings through accessory-friendly designs. With the Show segmented into 12 market channels—including trucks, SUVs and off-road; wheels and tires; mobile electronics and technology; paint, body and equipment and many more—every phase of automotive design and innovation is covered. Partnerships that are now decades old were born at the SEMA Show.

Dealer Day at the SEMA Show

While the manufacturing arm of the new-car market is well-represented at the SEMA Show, it also holds a wealth of information and profit potential for car dealers. Dealer Day at the SEMA Show is designed to provide new- and used-vehicle dealers with a clear understanding of how to increase profits through accessory sales and how to integrate an accessory program into the fixed operations of any dealership. Held in cooperation with the National Automobile Dealers Association (NADA) and NAIDA, Dealer Day delivers educational meetings hosted by industry professionals and dealerships that have successfully incorporated accessory sales into their businesses. The programs also educate dealers about the use of third-party installers, inventory processes and stimulating floor traffic through display vehicles. Learning about the market makes sense for those who wish to expand profits during difficult times.

ProPledge

The ProPledge warranty assurance initiative is designed to increase sales of specialty automotive products through new- and used-car dealers by offering customers a standardized, uniform warranty that covers defects in products and installation for a minimum of 36 months/36,000 miles. Administered by the Specialty Equipment Warranty Alliance (SEWA) subsidiary of SEMA, ProPledge shows that the industry stands behind its products and services and gives both auto dealers and consumers peace of mind in personalizing vehicles. ProPledge includes protection in the event that a product or installation defect results in the denial of a vehicle warranty claim. Here is the complete list of participating manufacturers and installers and information about ProPledge. For more information, e-mail sewa@propledge.com.

Installer Certification Programs

The SEMA Installer Certification Program is a voluntary process through which accessory installers prove their abilities either within car dealerships or at independent repair and service businesses. By meeting all of the eligibility criteria and passing one or more tests, installers earn credentials that promote consumer trust and confidence. Because the tests are a true measure of an installer’s know-how and expertise, certification provides a higher level of professionalism. SEMA partnered with ASE, the National Institute of Automotive Service Excellence, to develop this nationwide program exclusively for accessory installation professionals, helping to make dealerships and independent businesses stronger and more competitive.

Getting to Know John Waraniak and Bill Wolf

John Waraniak and Bill Wolf are distinguished professionals who engage in almost daily contact with OEM companies, providing them with unique insights into the auto manufacturing community as well as SEMA members. Waraniak heads up SEMA’s advanced vehicle technology strategy, programs and initiatives and has worked for automotive, motorsports, aerospace and consumer products companies for more than two decades. Wolf, SEMA’s senior director of OEM relations, is the direct liaison between the association and the automakers, and he has held executive positions with Mazda, Hyundai and Nissan. Both are available for consultation on any collaborative effort and can provide help in detailing a wide range of options and establishing contact between key personnel in the industry.

Don’t Assume; Take the Time to Learn

SEMA and its member companies recognize the pivotal role that the OEMs play in their businesses. As many vehicle sales outlets have discovered, SEMA companies can also be the fulcrum on which to leverage profits for the OEMs and their dealer networks. “Tighter profit margins and decreased service revenue have dealers eager to find new profit centers,” said Chris Kersting, SEMA president and CEO. “Adding new dealerships to the retail ranks means market growth because dealers reach a broad range of consumers and can offer financing as part of the vehicle package. SEMA is working hard to help dealers learn more about these opportunities.” As more and more OEMs work to create accessory-friendly vehicles, those profit prospects will continue to grow. That type of collaboration ranks as the top Best Practice of all.

 

SEMA NEWS - December 2009

By Annie Kang

Two Programs Lead to Huge Time Savings for SEMA-Member Companies

	Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

Designing new specialty-equipment products is a laborious, time-consuming procedure, and time is not a friend, as manufacturers will attest. With SEMA market research revealing that most consumers purchase specialty-equipment parts within the first three months of buying new cars, manufacturers must often race to place their products on the shelves by the time new vehicles hit the dealerships. SEMA offers two manufacturer-friendly programs—Technology Transfer and Measuring Sessions—that help SEMA-member companies meet that goal.

SEMA-hosted OEM Measuring Sessions allow members hands-on access to new vehicles in order to collect surface data, while the Technology Transfer program provides members with computer-aided design (CAD) data provided by participating OEMs.

“In order to gain access to new vehicles prior to these programs, members would either have to go to the dealers, which is inconvenient and dealers don’t always agree to that, or they would have to travel to trade shows, such as the SEMA Show, where it is crowded and there is a lot going on,” said Bill Wolf, SEMA senior director of OEM relations.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

According to Wolf, Measuring Sessions save members time spent in both effort and extended travel in order to obtain access to the vehicles, as well as providing them with a more controlled environment in which to collect their data.

With the Technology Transfer program, members can request data through the SEMA website. SEMA then electronically delivers the CAD files, which can be processed directly into their machinery and computers.

“Members can build the exact same product as the OEM without even seeing the car,” said Wolf. “That’s the beauty of the program—the first time they see the vehicle is when they go to fit the part.”

The intent of the program, which is open only to SEMA-member manufacturers, is to alleviate the necessity for reverse engineering.

“The Technology Transfer data eases my workload by eliminating most of the need to disassemble a vehicle and measure a part in order to get the basic dimensions needed to initiate a design,” said Aric Pogel, design engineer for Florida-based Steeda Autosports, a Ford-centric manufacturer of performance parts and accessories. “Further into the design, more time is saved by being able to predict interferences in a virtual environment rather than repeated test-fittings followed by design modifications.”

Steeda requests Technology Transfer data about once a month to design products for power upgrades; suspension and handling upgrades; and exterior body modifications, including bumper covers, rocker panels, hoods and trunks.

“For almost everything that we design, we request Technology Transfer data,” said Pogel.

Shane Wagner, engineering manager for Scott Drake Enterprises, a Nevada-based manufacturer of reproduction parts for classic and late-model Mustangs, agreed that the Technology Transfer program cuts a huge amount of time out of the design process.

“The program definitely speeds up the time it takes to produce a part,” said Wagner. “What would take us months now only takes us weeks. It’s night and day.”

Wagner first learned about the program while exhibiting at the 2006 SEMA Show with his prior employer.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

“I started using the program at my previous company after I learned about it at the SEMA Show, and then I implemented it when I came to Scott Drake,” said Wagner.

Wagner estimated that the program has saved the company thousands of dollars due to the reduced need for multiple prototypes and redesigns.

Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

“A lot of the complex stuff that we do would be impossible by just measuring the vehicles,” said Wagner.

Member companies that have participated in either Measuring Sessions or the Technology Transfer program qualify to vote for the SEMA Most Accessory-Friendly Vehicles, which are awarded annually.

The first Measuring Session took place in 1997 for the ’98 Dodge Dakota and Durango and ’98 Ford Ranger and F-Series HD. The Technology Transfer program was established in 1999, providing data for the ’00 Ford Focus.

“Both programs came about as an offshoot of members asking for additional information on products,” said Wolf.

The challenge lay in getting the first of one of the major OEMs to participate in the programs. According to Wolf, once Ford signed on, many of the other OEMs soon followed.

“I think the OEMs started to realize how important customization is to a lot of consumers,” said Wolf. “It really behooves the OEMs to share information because it helps sells cars, it protects brand identity by helping aftermarket companies produce quality products, and it makes for a happy customer overall.”

 

 

 

SEMA NEWS - December 2009

By Annie Kang

Two Programs Lead to Huge Time Savings for SEMA-Member Companies

	Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

Designing new specialty-equipment products is a laborious, time-consuming procedure, and time is not a friend, as manufacturers will attest. With SEMA market research revealing that most consumers purchase specialty-equipment parts within the first three months of buying new cars, manufacturers must often race to place their products on the shelves by the time new vehicles hit the dealerships. SEMA offers two manufacturer-friendly programs—Technology Transfer and Measuring Sessions—that help SEMA-member companies meet that goal.

SEMA-hosted OEM Measuring Sessions allow members hands-on access to new vehicles in order to collect surface data, while the Technology Transfer program provides members with computer-aided design (CAD) data provided by participating OEMs.

“In order to gain access to new vehicles prior to these programs, members would either have to go to the dealers, which is inconvenient and dealers don’t always agree to that, or they would have to travel to trade shows, such as the SEMA Show, where it is crowded and there is a lot going on,” said Bill Wolf, SEMA senior director of OEM relations.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

According to Wolf, Measuring Sessions save members time spent in both effort and extended travel in order to obtain access to the vehicles, as well as providing them with a more controlled environment in which to collect their data.

With the Technology Transfer program, members can request data through the SEMA website. SEMA then electronically delivers the CAD files, which can be processed directly into their machinery and computers.

“Members can build the exact same product as the OEM without even seeing the car,” said Wolf. “That’s the beauty of the program—the first time they see the vehicle is when they go to fit the part.”

The intent of the program, which is open only to SEMA-member manufacturers, is to alleviate the necessity for reverse engineering.

“The Technology Transfer data eases my workload by eliminating most of the need to disassemble a vehicle and measure a part in order to get the basic dimensions needed to initiate a design,” said Aric Pogel, design engineer for Florida-based Steeda Autosports, a Ford-centric manufacturer of performance parts and accessories. “Further into the design, more time is saved by being able to predict interferences in a virtual environment rather than repeated test-fittings followed by design modifications.”

Steeda requests Technology Transfer data about once a month to design products for power upgrades; suspension and handling upgrades; and exterior body modifications, including bumper covers, rocker panels, hoods and trunks.

“For almost everything that we design, we request Technology Transfer data,” said Pogel.

Shane Wagner, engineering manager for Scott Drake Enterprises, a Nevada-based manufacturer of reproduction parts for classic and late-model Mustangs, agreed that the Technology Transfer program cuts a huge amount of time out of the design process.

“The program definitely speeds up the time it takes to produce a part,” said Wagner. “What would take us months now only takes us weeks. It’s night and day.”

Wagner first learned about the program while exhibiting at the 2006 SEMA Show with his prior employer.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

“I started using the program at my previous company after I learned about it at the SEMA Show, and then I implemented it when I came to Scott Drake,” said Wagner.

Wagner estimated that the program has saved the company thousands of dollars due to the reduced need for multiple prototypes and redesigns.

Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

“A lot of the complex stuff that we do would be impossible by just measuring the vehicles,” said Wagner.

Member companies that have participated in either Measuring Sessions or the Technology Transfer program qualify to vote for the SEMA Most Accessory-Friendly Vehicles, which are awarded annually.

The first Measuring Session took place in 1997 for the ’98 Dodge Dakota and Durango and ’98 Ford Ranger and F-Series HD. The Technology Transfer program was established in 1999, providing data for the ’00 Ford Focus.

“Both programs came about as an offshoot of members asking for additional information on products,” said Wolf.

The challenge lay in getting the first of one of the major OEMs to participate in the programs. According to Wolf, once Ford signed on, many of the other OEMs soon followed.

“I think the OEMs started to realize how important customization is to a lot of consumers,” said Wolf. “It really behooves the OEMs to share information because it helps sells cars, it protects brand identity by helping aftermarket companies produce quality products, and it makes for a happy customer overall.”

 

 

 

SEMA NEWS - December 2009

By Annie Kang

Two Programs Lead to Huge Time Savings for SEMA-Member Companies

	Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

Designing new specialty-equipment products is a laborious, time-consuming procedure, and time is not a friend, as manufacturers will attest. With SEMA market research revealing that most consumers purchase specialty-equipment parts within the first three months of buying new cars, manufacturers must often race to place their products on the shelves by the time new vehicles hit the dealerships. SEMA offers two manufacturer-friendly programs—Technology Transfer and Measuring Sessions—that help SEMA-member companies meet that goal.

SEMA-hosted OEM Measuring Sessions allow members hands-on access to new vehicles in order to collect surface data, while the Technology Transfer program provides members with computer-aided design (CAD) data provided by participating OEMs.

“In order to gain access to new vehicles prior to these programs, members would either have to go to the dealers, which is inconvenient and dealers don’t always agree to that, or they would have to travel to trade shows, such as the SEMA Show, where it is crowded and there is a lot going on,” said Bill Wolf, SEMA senior director of OEM relations.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

According to Wolf, Measuring Sessions save members time spent in both effort and extended travel in order to obtain access to the vehicles, as well as providing them with a more controlled environment in which to collect their data.

With the Technology Transfer program, members can request data through the SEMA website. SEMA then electronically delivers the CAD files, which can be processed directly into their machinery and computers.

“Members can build the exact same product as the OEM without even seeing the car,” said Wolf. “That’s the beauty of the program—the first time they see the vehicle is when they go to fit the part.”

The intent of the program, which is open only to SEMA-member manufacturers, is to alleviate the necessity for reverse engineering.

“The Technology Transfer data eases my workload by eliminating most of the need to disassemble a vehicle and measure a part in order to get the basic dimensions needed to initiate a design,” said Aric Pogel, design engineer for Florida-based Steeda Autosports, a Ford-centric manufacturer of performance parts and accessories. “Further into the design, more time is saved by being able to predict interferences in a virtual environment rather than repeated test-fittings followed by design modifications.”

Steeda requests Technology Transfer data about once a month to design products for power upgrades; suspension and handling upgrades; and exterior body modifications, including bumper covers, rocker panels, hoods and trunks.

“For almost everything that we design, we request Technology Transfer data,” said Pogel.

Shane Wagner, engineering manager for Scott Drake Enterprises, a Nevada-based manufacturer of reproduction parts for classic and late-model Mustangs, agreed that the Technology Transfer program cuts a huge amount of time out of the design process.

“The program definitely speeds up the time it takes to produce a part,” said Wagner. “What would take us months now only takes us weeks. It’s night and day.”

Wagner first learned about the program while exhibiting at the 2006 SEMA Show with his prior employer.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

“I started using the program at my previous company after I learned about it at the SEMA Show, and then I implemented it when I came to Scott Drake,” said Wagner.

Wagner estimated that the program has saved the company thousands of dollars due to the reduced need for multiple prototypes and redesigns.

Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

“A lot of the complex stuff that we do would be impossible by just measuring the vehicles,” said Wagner.

Member companies that have participated in either Measuring Sessions or the Technology Transfer program qualify to vote for the SEMA Most Accessory-Friendly Vehicles, which are awarded annually.

The first Measuring Session took place in 1997 for the ’98 Dodge Dakota and Durango and ’98 Ford Ranger and F-Series HD. The Technology Transfer program was established in 1999, providing data for the ’00 Ford Focus.

“Both programs came about as an offshoot of members asking for additional information on products,” said Wolf.

The challenge lay in getting the first of one of the major OEMs to participate in the programs. According to Wolf, once Ford signed on, many of the other OEMs soon followed.

“I think the OEMs started to realize how important customization is to a lot of consumers,” said Wolf. “It really behooves the OEMs to share information because it helps sells cars, it protects brand identity by helping aftermarket companies produce quality products, and it makes for a happy customer overall.”

 

 

 

SEMA NEWS - December 2009

By Annie Kang

Two Programs Lead to Huge Time Savings for SEMA-Member Companies

	Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

Designing new specialty-equipment products is a laborious, time-consuming procedure, and time is not a friend, as manufacturers will attest. With SEMA market research revealing that most consumers purchase specialty-equipment parts within the first three months of buying new cars, manufacturers must often race to place their products on the shelves by the time new vehicles hit the dealerships. SEMA offers two manufacturer-friendly programs—Technology Transfer and Measuring Sessions—that help SEMA-member companies meet that goal.

SEMA-hosted OEM Measuring Sessions allow members hands-on access to new vehicles in order to collect surface data, while the Technology Transfer program provides members with computer-aided design (CAD) data provided by participating OEMs.

“In order to gain access to new vehicles prior to these programs, members would either have to go to the dealers, which is inconvenient and dealers don’t always agree to that, or they would have to travel to trade shows, such as the SEMA Show, where it is crowded and there is a lot going on,” said Bill Wolf, SEMA senior director of OEM relations.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

According to Wolf, Measuring Sessions save members time spent in both effort and extended travel in order to obtain access to the vehicles, as well as providing them with a more controlled environment in which to collect their data.

With the Technology Transfer program, members can request data through the SEMA website. SEMA then electronically delivers the CAD files, which can be processed directly into their machinery and computers.

“Members can build the exact same product as the OEM without even seeing the car,” said Wolf. “That’s the beauty of the program—the first time they see the vehicle is when they go to fit the part.”

The intent of the program, which is open only to SEMA-member manufacturers, is to alleviate the necessity for reverse engineering.

“The Technology Transfer data eases my workload by eliminating most of the need to disassemble a vehicle and measure a part in order to get the basic dimensions needed to initiate a design,” said Aric Pogel, design engineer for Florida-based Steeda Autosports, a Ford-centric manufacturer of performance parts and accessories. “Further into the design, more time is saved by being able to predict interferences in a virtual environment rather than repeated test-fittings followed by design modifications.”

Steeda requests Technology Transfer data about once a month to design products for power upgrades; suspension and handling upgrades; and exterior body modifications, including bumper covers, rocker panels, hoods and trunks.

“For almost everything that we design, we request Technology Transfer data,” said Pogel.

Shane Wagner, engineering manager for Scott Drake Enterprises, a Nevada-based manufacturer of reproduction parts for classic and late-model Mustangs, agreed that the Technology Transfer program cuts a huge amount of time out of the design process.

“The program definitely speeds up the time it takes to produce a part,” said Wagner. “What would take us months now only takes us weeks. It’s night and day.”

Wagner first learned about the program while exhibiting at the 2006 SEMA Show with his prior employer.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

“I started using the program at my previous company after I learned about it at the SEMA Show, and then I implemented it when I came to Scott Drake,” said Wagner.

Wagner estimated that the program has saved the company thousands of dollars due to the reduced need for multiple prototypes and redesigns.

Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

“A lot of the complex stuff that we do would be impossible by just measuring the vehicles,” said Wagner.

Member companies that have participated in either Measuring Sessions or the Technology Transfer program qualify to vote for the SEMA Most Accessory-Friendly Vehicles, which are awarded annually.

The first Measuring Session took place in 1997 for the ’98 Dodge Dakota and Durango and ’98 Ford Ranger and F-Series HD. The Technology Transfer program was established in 1999, providing data for the ’00 Ford Focus.

“Both programs came about as an offshoot of members asking for additional information on products,” said Wolf.

The challenge lay in getting the first of one of the major OEMs to participate in the programs. According to Wolf, once Ford signed on, many of the other OEMs soon followed.

“I think the OEMs started to realize how important customization is to a lot of consumers,” said Wolf. “It really behooves the OEMs to share information because it helps sells cars, it protects brand identity by helping aftermarket companies produce quality products, and it makes for a happy customer overall.”

 

 

 

SEMA NEWS - December 2009

By Annie Kang

Two Programs Lead to Huge Time Savings for SEMA-Member Companies

	Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

Designing new specialty-equipment products is a laborious, time-consuming procedure, and time is not a friend, as manufacturers will attest. With SEMA market research revealing that most consumers purchase specialty-equipment parts within the first three months of buying new cars, manufacturers must often race to place their products on the shelves by the time new vehicles hit the dealerships. SEMA offers two manufacturer-friendly programs—Technology Transfer and Measuring Sessions—that help SEMA-member companies meet that goal.

SEMA-hosted OEM Measuring Sessions allow members hands-on access to new vehicles in order to collect surface data, while the Technology Transfer program provides members with computer-aided design (CAD) data provided by participating OEMs.

“In order to gain access to new vehicles prior to these programs, members would either have to go to the dealers, which is inconvenient and dealers don’t always agree to that, or they would have to travel to trade shows, such as the SEMA Show, where it is crowded and there is a lot going on,” said Bill Wolf, SEMA senior director of OEM relations.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

According to Wolf, Measuring Sessions save members time spent in both effort and extended travel in order to obtain access to the vehicles, as well as providing them with a more controlled environment in which to collect their data.

With the Technology Transfer program, members can request data through the SEMA website. SEMA then electronically delivers the CAD files, which can be processed directly into their machinery and computers.

“Members can build the exact same product as the OEM without even seeing the car,” said Wolf. “That’s the beauty of the program—the first time they see the vehicle is when they go to fit the part.”

The intent of the program, which is open only to SEMA-member manufacturers, is to alleviate the necessity for reverse engineering.

“The Technology Transfer data eases my workload by eliminating most of the need to disassemble a vehicle and measure a part in order to get the basic dimensions needed to initiate a design,” said Aric Pogel, design engineer for Florida-based Steeda Autosports, a Ford-centric manufacturer of performance parts and accessories. “Further into the design, more time is saved by being able to predict interferences in a virtual environment rather than repeated test-fittings followed by design modifications.”

Steeda requests Technology Transfer data about once a month to design products for power upgrades; suspension and handling upgrades; and exterior body modifications, including bumper covers, rocker panels, hoods and trunks.

“For almost everything that we design, we request Technology Transfer data,” said Pogel.

Shane Wagner, engineering manager for Scott Drake Enterprises, a Nevada-based manufacturer of reproduction parts for classic and late-model Mustangs, agreed that the Technology Transfer program cuts a huge amount of time out of the design process.

“The program definitely speeds up the time it takes to produce a part,” said Wagner. “What would take us months now only takes us weeks. It’s night and day.”

Wagner first learned about the program while exhibiting at the 2006 SEMA Show with his prior employer.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

“I started using the program at my previous company after I learned about it at the SEMA Show, and then I implemented it when I came to Scott Drake,” said Wagner.

Wagner estimated that the program has saved the company thousands of dollars due to the reduced need for multiple prototypes and redesigns.

Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

“A lot of the complex stuff that we do would be impossible by just measuring the vehicles,” said Wagner.

Member companies that have participated in either Measuring Sessions or the Technology Transfer program qualify to vote for the SEMA Most Accessory-Friendly Vehicles, which are awarded annually.

The first Measuring Session took place in 1997 for the ’98 Dodge Dakota and Durango and ’98 Ford Ranger and F-Series HD. The Technology Transfer program was established in 1999, providing data for the ’00 Ford Focus.

“Both programs came about as an offshoot of members asking for additional information on products,” said Wolf.

The challenge lay in getting the first of one of the major OEMs to participate in the programs. According to Wolf, once Ford signed on, many of the other OEMs soon followed.

“I think the OEMs started to realize how important customization is to a lot of consumers,” said Wolf. “It really behooves the OEMs to share information because it helps sells cars, it protects brand identity by helping aftermarket companies produce quality products, and it makes for a happy customer overall.”

 

 

 

SEMA NEWS - December 2009

By Annie Kang

Two Programs Lead to Huge Time Savings for SEMA-Member Companies

	Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

Designing new specialty-equipment products is a laborious, time-consuming procedure, and time is not a friend, as manufacturers will attest. With SEMA market research revealing that most consumers purchase specialty-equipment parts within the first three months of buying new cars, manufacturers must often race to place their products on the shelves by the time new vehicles hit the dealerships. SEMA offers two manufacturer-friendly programs—Technology Transfer and Measuring Sessions—that help SEMA-member companies meet that goal.

SEMA-hosted OEM Measuring Sessions allow members hands-on access to new vehicles in order to collect surface data, while the Technology Transfer program provides members with computer-aided design (CAD) data provided by participating OEMs.

“In order to gain access to new vehicles prior to these programs, members would either have to go to the dealers, which is inconvenient and dealers don’t always agree to that, or they would have to travel to trade shows, such as the SEMA Show, where it is crowded and there is a lot going on,” said Bill Wolf, SEMA senior director of OEM relations.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

According to Wolf, Measuring Sessions save members time spent in both effort and extended travel in order to obtain access to the vehicles, as well as providing them with a more controlled environment in which to collect their data.

With the Technology Transfer program, members can request data through the SEMA website. SEMA then electronically delivers the CAD files, which can be processed directly into their machinery and computers.

“Members can build the exact same product as the OEM without even seeing the car,” said Wolf. “That’s the beauty of the program—the first time they see the vehicle is when they go to fit the part.”

The intent of the program, which is open only to SEMA-member manufacturers, is to alleviate the necessity for reverse engineering.

“The Technology Transfer data eases my workload by eliminating most of the need to disassemble a vehicle and measure a part in order to get the basic dimensions needed to initiate a design,” said Aric Pogel, design engineer for Florida-based Steeda Autosports, a Ford-centric manufacturer of performance parts and accessories. “Further into the design, more time is saved by being able to predict interferences in a virtual environment rather than repeated test-fittings followed by design modifications.”

Steeda requests Technology Transfer data about once a month to design products for power upgrades; suspension and handling upgrades; and exterior body modifications, including bumper covers, rocker panels, hoods and trunks.

“For almost everything that we design, we request Technology Transfer data,” said Pogel.

Shane Wagner, engineering manager for Scott Drake Enterprises, a Nevada-based manufacturer of reproduction parts for classic and late-model Mustangs, agreed that the Technology Transfer program cuts a huge amount of time out of the design process.

“The program definitely speeds up the time it takes to produce a part,” said Wagner. “What would take us months now only takes us weeks. It’s night and day.”

Wagner first learned about the program while exhibiting at the 2006 SEMA Show with his prior employer.

SEMA holds about 20 Measuring Sessions a year, and they are available only to SEMA-member manufacturers. Through Measuring Sessions, which are generally held at the OEM’s location, members have the opportunity to communicate directly with the automaker’s engineers.

“I started using the program at my previous company after I learned about it at the SEMA Show, and then I implemented it when I came to Scott Drake,” said Wagner.

Wagner estimated that the program has saved the company thousands of dollars due to the reduced need for multiple prototypes and redesigns.

Not only is the Technology Transfer program a time and cost-saving initiative, but it also allows manufacturers to achieve designs that otherwise would be difficult to explore.

“A lot of the complex stuff that we do would be impossible by just measuring the vehicles,” said Wagner.

Member companies that have participated in either Measuring Sessions or the Technology Transfer program qualify to vote for the SEMA Most Accessory-Friendly Vehicles, which are awarded annually.

The first Measuring Session took place in 1997 for the ’98 Dodge Dakota and Durango and ’98 Ford Ranger and F-Series HD. The Technology Transfer program was established in 1999, providing data for the ’00 Ford Focus.

“Both programs came about as an offshoot of members asking for additional information on products,” said Wolf.

The challenge lay in getting the first of one of the major OEMs to participate in the programs. According to Wolf, once Ford signed on, many of the other OEMs soon followed.

“I think the OEMs started to realize how important customization is to a lot of consumers,” said Wolf. “It really behooves the OEMs to share information because it helps sells cars, it protects brand identity by helping aftermarket companies produce quality products, and it makes for a happy customer overall.”

 

 

 

SEMA News - December 2009

By Alysha Webb

The internal-combustion engine will still be the dominant powertrain technology for quite a while.

These are tough times for automotive performance aftermarket companies. The entire paradigm on which many built their existence—the dominance of the internal-combustion engine—appears to be collapsing.

Actually, however, the best of times for some specialty-equipment companies is yet to come. The internal-combustion engine will still be the dominant powertrain technology for quite a while. Aftermarket firms can continue to benefit from demand for products to make the internal-combustion engine increasingly more fuel efficient.

Meanwhile, alternative powertrains are grabbing greater market share and offer a myriad of business opportunities for SEMA companies as well. A landmark study conducted by the Center for Automotive Research (CAR) and commissioned by SEMA noted this and other powertrain trends. The study, titled “Powertrain Forecast and Analysis: What Is Coming and What Are the Implications for the Specialty-Equipment and Performance Aftermarket Industry?”—aims to help SEMA members capitalize on today’s opportunities and plan for the future. And the future is very promising for SEMA members, said John Waraniak, SEMA’s vice president of vehicle technology.

“Niche markets are where SEMA members excel,” he said. “Markets are fragmenting into smaller segments, and automakers are building more models off of fewer platforms, so customization and personalization matter even more. Cost-effective lower-volume production business models leverage SEMA members’ strengths and capabilities. The future of vehicle electrification is fusing with the golden age of the internal-combustion engine, and that spells opportunities for today’s motorheads as well as tomorrow’s.”

There are certainly risks but even greater rewards, Waraniak noted. The biggest risk is introducing a technology that doesn’t meet consumer and marketplace expectations. (Think GM and its diesel engine in the late-’70s or the Honda Accord HEV.) There is also the risk of choosing the wrong technology or one with a short market life.

SEMA companies are innovative, quick, small and nimble. They have the agility to build low volumes profitably and move in and out of new markets more quickly, said Waraniak. That will help them to succeed in the changing powertrain landscape.

“Green performance is one of fastest-growing segments in the specialty-equipment and performance aftermarket industry,” he said. “The new generation of clean diesels, hybrid powertrains, extended-range and pure electric vehicles represent blank canvases for SEMA-member companies.”

The Making Green Cool Zone (MGCZ) at the 2009 SEMA Show displayed the most innovative vehicles, products and people working to accelerate the adoption and commercialization of alternative powertrains, new technologies and continued improvements in the next generation of direct injection and turbocharged gasoline engines. SEMA is dedicated to keeping members informed about the latest vehicle technology opportunities, challenges and solutions associated with high-performance engineering, energy efficiency and demonstrating that horsepower and green power can coexist without sacrificing the cool factor.

And no matter what the technology, there will always be ways to enhance performance, said Gale Banks, founder and president of Banks Power in Azusa, California. Looking to the past is not an option, he warned.

“You can deal in retro tech or future tech,” said Banks, a SEMA Board member. “Retro tech is a dying business opportunity.”

From gasoline direct injection to plug-in electric, Banks sees a common denominator in future powertrains: the electronics and software that control the mechanical devices.

“Get some electronics background or form an alliance with someone who has one,” Banks advised.

Gasoline Engine Dominance Will Diminish, But It Ain’t Going Away

The SEMA-CAR report surveyed 17 powertrain industry experts. All survey questions were asked in reference to U.S. light-duty vehicles with a gross vehicle weight under 8,500 lbs. Two time points—2011 and 2015—were included, as were two gasoline price scenarios—$2.50 per gallon and $6 per gallon.

The experts agreed that despite all the talk of vehicle electrification, gasoline engines will continue to have the greatest market share in 2015, even with gas at $6 a gallon. But stiffer Corporate Average Fuel Economy (CAFE) and emissions requirements will create business opportunities for technology, such as turbocharging, that improves gasoline engine efficiency and boosts power, the report said.

SEMA member and turbocharger manufacturer BorgWarner of Auburn Hills, Michigan, predicted that 15% of all of North America’s light-vehicle gasoline engines will be turbocharged by 2015, up from 10% today.

“In order to achieve the [required] fuel efficiency, we will have to have smaller engines with more power,” said Tom Grissom, BorgWarner’s director of business development for turbo emissions. “The most efficient way to significantly increase power output is through turbocharging, which allows for engine downsizing and reduced fuel consumption while maintaining performance.”

BorgWarner supplies turbochargers to both the aftermarket (with its AirWerks brand) and to automakers, such as Ford Motor Co., which the automaker is using to turbocharge its Ecoboost engines.

Gasoline direct-injection (GDI) technology is also seen as a big beneficiary of rising fuel prices and stiffer government regulations. The CAR report predicted that 15% of gasoline engines will have direct injection if gas rises to $6 a gallon.

“GDI engines are inherently compatible with turbochargers,” said Grissom.

Electrification Equals SEMA Opportunity

Electric vehicles—including hybrids, plug-in electric and all other types—could grab nearly 30% of the powertrain market by 2015 if gas prices hit $6, the CAR report forecasted.

Electric vehicles—including hybrids, plug-in electric and all other types—could grab nearly 30% of the powertrain market by 2015 if gas prices hit $6, the CAR report forecasted. Even with lower gas prices, the report predicted that market share for electric vehicles will top 5%.

The electrification trend is allowing smaller, faster, entrepreneurial companies to compete with the industry giants, at least in the short run. Take Lithium-ion battery manufacturer and SEMA member A123 Systems of Watertown, Massachusetts. The small company didn’t comment for this story because it was preparing for a stock-market listing, but according to its Securities and Exchange filing, A123’s revenue in 2007, the most recent full-year data available, was $41.3 million, up from $749,000 at the end of 2005.

The filing documents also illustrate the risks of the new technologies. An example from the “Risk Factors” section: “Rapid and ongoing changes in technology and product standards could quickly render our products less competitive or even obsolete if we fail to continue to improve the performance of our battery chemistry and systems.”

Of course, that need for continual improvement and commercialization of these technologies offers new and exciting business opportunities for SEMA members, Waraniak noted.

“Find a problem, and fix it,” he advised, whether it be cooling the battery, controlling it, increasing its performance or a myriad of other issues.

Diesel Still Has Legs

Environmental awareness and efficiency meet tire-shredding performance: Galpin Auto Sports’ ‘65 Impala with 6.5L Duramax bio-diesel conversion in the Making Green Cool Zone at the 2008 SEMA Show.

Diesel engines don’t play a large role in the current administration’s energy policy, which focuses on electrification. Nonetheless, Lars Ullrich, director of diesel system marketing for Robert Bosch in Farmington Hills, Michigan, figured that diesel’s market share will continue to rise in the United States.

“We need to rely on all solutions to reach the CAFE targets,” said Ullrich.

The SEMA-CAR report predicted that there will be a niche for diesel technology applications in pickup trucks, large SUVs and CUVs. SEMA members are well positioned to take advantage of that niche, said Ullrich.

“They have the technology in their portfolio because the pickup is such a large market in the United States,” he said. “It’s not a radical change; it’s a migration compared to electrification.”

It’s All About Efficiency

The SEMA-CAR report includes input from traditional manufacturers. But SEMA members should also consider developing accessories for some of the new non-traditional companies, such as H-Line Conversions, and start-up car manufacturers, such as V Vehicle Car Company of Monroe, Louisiana, said Waraniak.

“If you aren’t selling much to existing or declining vehicle markets, shift part of your development efforts and product portfolio to the emerging vehicle markets with these new companies,” he said.

V Vehicle aims to produce high-volume, low-cost, environmentally correct cars. It has been quite secretive about exactly what technology that car will use, however.

H-Line’s Johnathan Goodwin, whose friend and partner, musician Neil Young, recently dubbed him the Motorhead Messiah in his latest video release, advised SEMA members to look for ways for their products or services to make vehicles more efficient and environmentally friendly and then emphasize efficiency and environmental friendliness as well as performance in their advertising.

“Not more horsepower; more miles per gallon plus extra horsepower,” he added. And don’t fixate on one powertrain technology.

“There is no one end solution,” Goodwin said. “Creating efficiency is where the core focus is.”

Additional details of the SEMA-CAR Report were provided at the “Driving Green: MPH+ MPGe” Vehicle Technology Briefing SuperSession during the SEMA Show. The panelists were Justin Ward, Toyota Technical Center; Dan Kapp, Ford Motor Co.; Johnathan Goodwin; Beau Boeckmann, Galpin Auto Sports; Ric Fulop, A123 Systems; Dean Tomazic, FEV Inc.; Gale Banks, Banks Power; Eric Cahill, Progressive Insurance Automotive X Prize; Azhar Hussain, TXGP eGrandPrix.

A media briefing in the Making Green Cool Zone at the SEMA Show immediately followed the seminar and offered SEMA members the opportunity to network with the speakers. Access the SEMA-CAR Report.

SEMA News - December 2009

By Alysha Webb

The internal-combustion engine will still be the dominant powertrain technology for quite a while.

These are tough times for automotive performance aftermarket companies. The entire paradigm on which many built their existence—the dominance of the internal-combustion engine—appears to be collapsing.

Actually, however, the best of times for some specialty-equipment companies is yet to come. The internal-combustion engine will still be the dominant powertrain technology for quite a while. Aftermarket firms can continue to benefit from demand for products to make the internal-combustion engine increasingly more fuel efficient.

Meanwhile, alternative powertrains are grabbing greater market share and offer a myriad of business opportunities for SEMA companies as well. A landmark study conducted by the Center for Automotive Research (CAR) and commissioned by SEMA noted this and other powertrain trends. The study, titled “Powertrain Forecast and Analysis: What Is Coming and What Are the Implications for the Specialty-Equipment and Performance Aftermarket Industry?”—aims to help SEMA members capitalize on today’s opportunities and plan for the future. And the future is very promising for SEMA members, said John Waraniak, SEMA’s vice president of vehicle technology.

“Niche markets are where SEMA members excel,” he said. “Markets are fragmenting into smaller segments, and automakers are building more models off of fewer platforms, so customization and personalization matter even more. Cost-effective lower-volume production business models leverage SEMA members’ strengths and capabilities. The future of vehicle electrification is fusing with the golden age of the internal-combustion engine, and that spells opportunities for today’s motorheads as well as tomorrow’s.”

There are certainly risks but even greater rewards, Waraniak noted. The biggest risk is introducing a technology that doesn’t meet consumer and marketplace expectations. (Think GM and its diesel engine in the late-’70s or the Honda Accord HEV.) There is also the risk of choosing the wrong technology or one with a short market life.

SEMA companies are innovative, quick, small and nimble. They have the agility to build low volumes profitably and move in and out of new markets more quickly, said Waraniak. That will help them to succeed in the changing powertrain landscape.

“Green performance is one of fastest-growing segments in the specialty-equipment and performance aftermarket industry,” he said. “The new generation of clean diesels, hybrid powertrains, extended-range and pure electric vehicles represent blank canvases for SEMA-member companies.”

The Making Green Cool Zone (MGCZ) at the 2009 SEMA Show displayed the most innovative vehicles, products and people working to accelerate the adoption and commercialization of alternative powertrains, new technologies and continued improvements in the next generation of direct injection and turbocharged gasoline engines. SEMA is dedicated to keeping members informed about the latest vehicle technology opportunities, challenges and solutions associated with high-performance engineering, energy efficiency and demonstrating that horsepower and green power can coexist without sacrificing the cool factor.

And no matter what the technology, there will always be ways to enhance performance, said Gale Banks, founder and president of Banks Power in Azusa, California. Looking to the past is not an option, he warned.

“You can deal in retro tech or future tech,” said Banks, a SEMA Board member. “Retro tech is a dying business opportunity.”

From gasoline direct injection to plug-in electric, Banks sees a common denominator in future powertrains: the electronics and software that control the mechanical devices.

“Get some electronics background or form an alliance with someone who has one,” Banks advised.

Gasoline Engine Dominance Will Diminish, But It Ain’t Going Away

The SEMA-CAR report surveyed 17 powertrain industry experts. All survey questions were asked in reference to U.S. light-duty vehicles with a gross vehicle weight under 8,500 lbs. Two time points—2011 and 2015—were included, as were two gasoline price scenarios—$2.50 per gallon and $6 per gallon.

The experts agreed that despite all the talk of vehicle electrification, gasoline engines will continue to have the greatest market share in 2015, even with gas at $6 a gallon. But stiffer Corporate Average Fuel Economy (CAFE) and emissions requirements will create business opportunities for technology, such as turbocharging, that improves gasoline engine efficiency and boosts power, the report said.

SEMA member and turbocharger manufacturer BorgWarner of Auburn Hills, Michigan, predicted that 15% of all of North America’s light-vehicle gasoline engines will be turbocharged by 2015, up from 10% today.

“In order to achieve the [required] fuel efficiency, we will have to have smaller engines with more power,” said Tom Grissom, BorgWarner’s director of business development for turbo emissions. “The most efficient way to significantly increase power output is through turbocharging, which allows for engine downsizing and reduced fuel consumption while maintaining performance.”

BorgWarner supplies turbochargers to both the aftermarket (with its AirWerks brand) and to automakers, such as Ford Motor Co., which the automaker is using to turbocharge its Ecoboost engines.

Gasoline direct-injection (GDI) technology is also seen as a big beneficiary of rising fuel prices and stiffer government regulations. The CAR report predicted that 15% of gasoline engines will have direct injection if gas rises to $6 a gallon.

“GDI engines are inherently compatible with turbochargers,” said Grissom.

Electrification Equals SEMA Opportunity

Electric vehicles—including hybrids, plug-in electric and all other types—could grab nearly 30% of the powertrain market by 2015 if gas prices hit $6, the CAR report forecasted.

Electric vehicles—including hybrids, plug-in electric and all other types—could grab nearly 30% of the powertrain market by 2015 if gas prices hit $6, the CAR report forecasted. Even with lower gas prices, the report predicted that market share for electric vehicles will top 5%.

The electrification trend is allowing smaller, faster, entrepreneurial companies to compete with the industry giants, at least in the short run. Take Lithium-ion battery manufacturer and SEMA member A123 Systems of Watertown, Massachusetts. The small company didn’t comment for this story because it was preparing for a stock-market listing, but according to its Securities and Exchange filing, A123’s revenue in 2007, the most recent full-year data available, was $41.3 million, up from $749,000 at the end of 2005.

The filing documents also illustrate the risks of the new technologies. An example from the “Risk Factors” section: “Rapid and ongoing changes in technology and product standards could quickly render our products less competitive or even obsolete if we fail to continue to improve the performance of our battery chemistry and systems.”

Of course, that need for continual improvement and commercialization of these technologies offers new and exciting business opportunities for SEMA members, Waraniak noted.

“Find a problem, and fix it,” he advised, whether it be cooling the battery, controlling it, increasing its performance or a myriad of other issues.

Diesel Still Has Legs

Environmental awareness and efficiency meet tire-shredding performance: Galpin Auto Sports’ ‘65 Impala with 6.5L Duramax bio-diesel conversion in the Making Green Cool Zone at the 2008 SEMA Show.

Diesel engines don’t play a large role in the current administration’s energy policy, which focuses on electrification. Nonetheless, Lars Ullrich, director of diesel system marketing for Robert Bosch in Farmington Hills, Michigan, figured that diesel’s market share will continue to rise in the United States.

“We need to rely on all solutions to reach the CAFE targets,” said Ullrich.

The SEMA-CAR report predicted that there will be a niche for diesel technology applications in pickup trucks, large SUVs and CUVs. SEMA members are well positioned to take advantage of that niche, said Ullrich.

“They have the technology in their portfolio because the pickup is such a large market in the United States,” he said. “It’s not a radical change; it’s a migration compared to electrification.”

It’s All About Efficiency

The SEMA-CAR report includes input from traditional manufacturers. But SEMA members should also consider developing accessories for some of the new non-traditional companies, such as H-Line Conversions, and start-up car manufacturers, such as V Vehicle Car Company of Monroe, Louisiana, said Waraniak.

“If you aren’t selling much to existing or declining vehicle markets, shift part of your development efforts and product portfolio to the emerging vehicle markets with these new companies,” he said.

V Vehicle aims to produce high-volume, low-cost, environmentally correct cars. It has been quite secretive about exactly what technology that car will use, however.

H-Line’s Johnathan Goodwin, whose friend and partner, musician Neil Young, recently dubbed him the Motorhead Messiah in his latest video release, advised SEMA members to look for ways for their products or services to make vehicles more efficient and environmentally friendly and then emphasize efficiency and environmental friendliness as well as performance in their advertising.

“Not more horsepower; more miles per gallon plus extra horsepower,” he added. And don’t fixate on one powertrain technology.

“There is no one end solution,” Goodwin said. “Creating efficiency is where the core focus is.”

Additional details of the SEMA-CAR Report were provided at the “Driving Green: MPH+ MPGe” Vehicle Technology Briefing SuperSession during the SEMA Show. The panelists were Justin Ward, Toyota Technical Center; Dan Kapp, Ford Motor Co.; Johnathan Goodwin; Beau Boeckmann, Galpin Auto Sports; Ric Fulop, A123 Systems; Dean Tomazic, FEV Inc.; Gale Banks, Banks Power; Eric Cahill, Progressive Insurance Automotive X Prize; Azhar Hussain, TXGP eGrandPrix.

A media briefing in the Making Green Cool Zone at the SEMA Show immediately followed the seminar and offered SEMA members the opportunity to network with the speakers. Access the SEMA-CAR Report.