Sun, 11/01/2009 - 15:57

SEMA News - November 2009 

By Linda Spencer

Developments in Key Global Markets


SEMA NEWS-NOVEMBER 2009-INTERNATIONALThis is the latest periodic roundup of legislative/regulatory developments in key global markets. This edition includes updates from Europe, Australia and the global harmonization body looking at creating uniform standards for a range of products—including automotive aftermarket products—under the auspices of the United Nations. SEMA members may contact Linda Spencer for more information on any of these issues.

European Officials Send Message to National Governments: Stop Hindering Intra-European Trade of Goods

European officials have recently implemented new laws to ensure that the 27 countries comprising the European Union allow the sale and use of specialty-equipment products and other manufactured goods. If the products are legally sold in one member state, they must also be allowed to be sold within the borders of the others. EC No. 764/2008, as it is officially known, is expected to have the largest impact on countries that have the greatest government oversight over the industry, such as Germany and Spain, which require much more extensive testing, and in those countries that have outright banned many or nearly all specialty-equipment products, such as France and Italy.

The new stipulations are designed to combat the common practice of government officials banning or limiting the use of a product through national laws—or, more typically, technical guidelines or other semi-official documents—from intra-Europe trade. The regulations now clearly state that “…a member state may not prohibit the sale on its territory of products which are lawfully marketed in another member state, even where those products were manufactured in accordance with technical rules different from those to which domestic products are subject.”

In an important test case, a U.K. carbon wheel company, DYMAG, which has numerous customers in the Netherlands and the United Kingdom, sold some of its motorcycle wheels to a German consumer in Ludwigsburg, southern Germany. State officials refused to provide the consumer with a license to drive the motorcycle due to the presence of these wheels. DYMAG fought the case, and an administrative court issued a ruling on July 9 of this year in support of the consumer, noting that the state had not provided proof that the product was dangerous and thus should be banned. The court said, in part, “The long-lasting, unproblematic and accident-free use in Great Britain and the Netherlands in public road traffic and at international motorcycle racing makes such proof unlikely.” State officials are appealing the ruling.

Unfair Advantage Alleged: Aluminum Wheels From China Under Investigation in Europe

The European Commission (EC) has opened an investigation into the possible dumping of aluminum road wheels into the European market by Chinese manufacturers. The petition was brought by the Association of European Wheel Manufacturers, which claims that the wheels are being sold at below-market prices. The EC is required to make a decision with 15 months of the August publication of the start of the investigation in the Official Journal of the European Union.

Half-way There: U.K. Scrappage Program to Continue, But No Plans to Extend Beyond Original Deadline

British officials have indicated that there are no plans to extend the car-scrapping scheme that will run until early next year unless the ₤300 million ($495 million USD) that has been allocated is spent. Currently, about half of the funds have been spent, with motorists receiving ₤2,000 ($3,312 USD) to trade in cars more than 10 years old for new models.
 
German Scrappage Program Ends, But Not Before Costing Government Nearly $7.5 Billion USD

In Germany, the popular program in which the government provided subsidies of €2,500 ($3,590 USD) to scrap old cars to buy new vehicles has ended with a total €5 billion ($7.47 billion USD) paid out to nearly 2 million applicants, The German automobile association VDA has forecasted that new-car registrations in Germany will total more than 3.5 million units this year but decline in 2010.

European Commission Delays Tobacco-Style Labeling for Car Manufacturers

The EC has delayed—for at least a year—the development of a proposal to require that a minimum of 20% of the space for new-vehicle advertising be devoted to information on fuel economy and C02 emissions. The regulations would cover any magazine, television or billboard advertising or point-of-sale displays in showrooms. The proposal was originally planned to be considered this year, but the development of these warning labels has been pushed back until 2010.

The new requirements, mirrored after measures imposed on cigarette producers, is being pushed by the EC and a number of members of the Parliament, citing a “dissatisfaction” with car assemblers’ compliance with more general guidelines in place since 1999 that call on them to include information [regarding fuel economy and C02 emissions] that is “easily legible and no less pronounced than the main part of the advertising message” and “easily understood, even when read briefly.”

Meanwhile, the EC has urged the car industry to sign a European code of good practices on car marketing and advertising.

Don’t Tell, Don’t Ask: Chip Tuning Being Approved in Germany, But Legality Remains Murky

The legality of chip tuning remains murky in Germany following a notice by the German government that, effective immediately, they are prohibited from approving engine-management software (chip tuning) modifications. The government has cited lack of knowledge on the effects these modifications have on exhaust emissions as well as other vehicle systems, such as braking and steering. Despite this edict, engine-management systems are being approved by some technical services using the same tests that are currently used for general engine tuning (such as tests for headers, valves and engine swaps). However, other testing facilities are declining to test these products because no clear procedure has been defined for them and issued certificates might eventually end up being rescinded for that reason.

The German specialty-equipment association, VDAT, has asked the German Transport Ministry to clarify the situation and to provide the industry with the specific test requirements. They have not yet heard back from the government.

Selling Into Germany—Recyclable Packaging a Requirement

As of January 2009, all new packaging sold in Germany must be registered with an officially recognized German recycler or risk a fine of €50,000 ($77,855 USD). The obligation to enroll in a recycling system (to reclaim retail packaging) rests with the originator of the packaged merchandise (i.e., the party that first brings the merchandise-filled packaging into circulation). The government has a list of approved companies with which firms may contract. For small-volume shippers, the annual fees for so-called “dual-system” companies appear to start at about €75 ($90 USD).

As a basic rule, anyone introducing packaging materials to be discarded by the end user will be required to participate. The importer, not the manufacturer, is generally responsible for meeting the recycling and packaging requirements. Yet U.S. companies will likely face a new hurdle in selling into the market, as importers will be liable for all products they carry. Importers of overseas products are typically offering to register the packaging, though the cost of that registration is typically passed onto the manufacturer.

Italian Companies Seek Allowance of German-Approved Products

Italy currently bans all specialty-equipment products unless an EU-wide or global harmonized standard exists for the product. So-called harmonized or common laws exist for a limited number of products, including exhaust systems, trailer couplings, lighting devices, automotive-related electronic products, brake linings, mirrors and bull bars, but no such multilateral regulations or laws govern the vast majority of optical and performance-enhancing products. The only other exception is if the product has been approved by the vehicle manufacturers. The industry in Italy has appealed to the government to allow aftermarket products and has offered to support legislation that allows products that have German approval to be allowed into Italy. As Italy does not have a domestic network of testing agencies, the industry is urging the government to allow consumers to obtain approvals according to German regulations from German testing agencies located throughout the world, including in Italy. The government is requiring a product-by-product phase-in, with wheels being among the first products that are likely to be approved through the system before the end of this year.

French Insurance Inspectors the New Specialty-Equipment Experts?

A new national law in France, entitled Procédure Véhicule Endommagé, authorized insurance industry personnel to conduct inspections to determine whether vehicles that have been involved in an accident are still road-worthy. Buried in this law was language that the insurance industry should also note the presence of aftermarket specialty products and whether the products conform with relevant laws. The local specialty-equipment association, FICAT, protested this provision, noting that these private-sector employees are not equipped to judge the legality of specialty products and might simply declare them banned. The government has tentatively agreed to remove specialty products from the scope of the law, but the industry remains vigilant until the changes are made official.

Dollars/Euros/Pounds But No Sense: Proposal Being Discussed to Extend Coverage of UNECE Harmonized Wheel Standard to Cover Specialty Wheels

Several representatives on the harmonization panel have called for the scope of the current United Nations Economic Commission for Europe (UNECE) wheel regulation (UNECE 124) to be extended to specialty wheels that, as spelled out in the document, are known as other-than-OE-sized wheels. There is speculation that countries such as Germany, which currently have one of the only wheel tests for specialty wheels throughout Europe, will oppose such a measure because they will lose their monopoly. Other countries that have a network of indigenous testing services but lack a wheel regulation might support such a measure in an effort to create some business for these entities.
 SEMA NEWS-NOVEMBER 2009-INTERNATIONAL

UNECE 90 spells out the proposed standards for brakes to be applicable throughout Europe and for all other countries that have agreed to abide by the rules of this global body (including South Korea, Japan and Australia). The regulation deals only with replacement brakes and is silent on specialty brakes.  



A Break for Specialty Brakes: ETO-Sponsored Clarification on UNECE Harmonized Rules on Brakes Moving Forward

NECE 90 spells out the proposed standards for brakes to be applicable throughout Europe and for all other countries that have agreed to abide by the rules of this global body (including South Korea, Japan and Australia). The regulation deals only with replacement brakes and is silent on specialty brakes. The European Tuning Organization (ETO) has sought to clarify that specialty brakes, though not mentioned in this regulation, are still permitted in Europe. This step was necessary as many European countries are apt to consider the lack of a specific measure on specialty brakes within this document as the equivalent of a ban on such products. The panel appears favorable to supporting the pan-European association, of which SEMA is a member.

The Hoon Squad: New South Wales Suspension Restrictions Narrowly Averted

Proposed suspension restrictions in the Australian state of New South Wales (NSW) have been put on hold at least temporarily thanks to a vigorous campaign mounted by the Australian Automotive Aftermarket Association (AAAA) and local industry. In July, NSW Transport Minister for Roads Michael Daley had proposed a maximum height change—raising or lowering modifications—to 5 centimeters (2 inches) and require these changes to undergo an “engineering inspection.” Local industry protested, led by AAAA, and the minister has now agreed to convene an advisory group (including industry) that can formulate some recommendations.

A press release from Daley’s office announced the proposed new restrictions on July 16, 2009, noting that the changes were being made to deter “car hoons.” Hoon is a local derogatory term used in Australia to refer to young people who drive “loud” cars and are “prone to street racing.” In the press release, entitled “Tough New Rules for Car Hoons,” the Minister stated: “I don’t want to see young hoons putting their lives or the lives of others at risk just because they think their car looks better 15 centimeters closer to the ground. These hoons may think their car looks cool, but as far as I’m concerned, anything more than a 5-centimeter change in a car’s suspension is dangerous and doesn’t belong on our roads.”

The AAAA is seeking “self certification” of suspension modifications of +/-5 centimeters without the need for an authorized engineer to sign off on such vehicles. Currently, throughout most of Australia, vehicles can be raised or lowered by up to 5 centimeters (2 inches) without approval and by up to 15 centimeters (5.9 inches) with authorized engineering approval. This would be similar to laws that exist elsewhere in Australia.

Lack of Testing Facilities and Vague Regulations Put Following Industry Complaints on Hold

The Australian state of Western Australia (WA) proposed new oversight over vehicles with engine modifications. With no input from industry, the WA Department of Transport introduced a regulation (Bulletin IB-124A) requiring special emissions testing for all vehicles that have been “significantly modified.” No definition of “significantly modified” was provided in the regulation.

The Australian Automotive Aftermarket Association has been at the forefront of industry efforts to seek a halt to these new regulations, which were drafted without the benefit of input from the industry. In the latest developments, the government has called for a delay in order to convene a panel that includes industry experts to acknowledge that the new requirements were not well thought-out and, in any case, that they did not have a structure in place. It turns out that there is currently only one testing facility in the entire state accredited to carrying out IM240 testing.  

Sun, 11/01/2009 - 15:57

SEMA News - November 2009 

By Linda Spencer

Developments in Key Global Markets


SEMA NEWS-NOVEMBER 2009-INTERNATIONALThis is the latest periodic roundup of legislative/regulatory developments in key global markets. This edition includes updates from Europe, Australia and the global harmonization body looking at creating uniform standards for a range of products—including automotive aftermarket products—under the auspices of the United Nations. SEMA members may contact Linda Spencer for more information on any of these issues.

European Officials Send Message to National Governments: Stop Hindering Intra-European Trade of Goods

European officials have recently implemented new laws to ensure that the 27 countries comprising the European Union allow the sale and use of specialty-equipment products and other manufactured goods. If the products are legally sold in one member state, they must also be allowed to be sold within the borders of the others. EC No. 764/2008, as it is officially known, is expected to have the largest impact on countries that have the greatest government oversight over the industry, such as Germany and Spain, which require much more extensive testing, and in those countries that have outright banned many or nearly all specialty-equipment products, such as France and Italy.

The new stipulations are designed to combat the common practice of government officials banning or limiting the use of a product through national laws—or, more typically, technical guidelines or other semi-official documents—from intra-Europe trade. The regulations now clearly state that “…a member state may not prohibit the sale on its territory of products which are lawfully marketed in another member state, even where those products were manufactured in accordance with technical rules different from those to which domestic products are subject.”

In an important test case, a U.K. carbon wheel company, DYMAG, which has numerous customers in the Netherlands and the United Kingdom, sold some of its motorcycle wheels to a German consumer in Ludwigsburg, southern Germany. State officials refused to provide the consumer with a license to drive the motorcycle due to the presence of these wheels. DYMAG fought the case, and an administrative court issued a ruling on July 9 of this year in support of the consumer, noting that the state had not provided proof that the product was dangerous and thus should be banned. The court said, in part, “The long-lasting, unproblematic and accident-free use in Great Britain and the Netherlands in public road traffic and at international motorcycle racing makes such proof unlikely.” State officials are appealing the ruling.

Unfair Advantage Alleged: Aluminum Wheels From China Under Investigation in Europe

The European Commission (EC) has opened an investigation into the possible dumping of aluminum road wheels into the European market by Chinese manufacturers. The petition was brought by the Association of European Wheel Manufacturers, which claims that the wheels are being sold at below-market prices. The EC is required to make a decision with 15 months of the August publication of the start of the investigation in the Official Journal of the European Union.

Half-way There: U.K. Scrappage Program to Continue, But No Plans to Extend Beyond Original Deadline

British officials have indicated that there are no plans to extend the car-scrapping scheme that will run until early next year unless the ₤300 million ($495 million USD) that has been allocated is spent. Currently, about half of the funds have been spent, with motorists receiving ₤2,000 ($3,312 USD) to trade in cars more than 10 years old for new models.
 
German Scrappage Program Ends, But Not Before Costing Government Nearly $7.5 Billion USD

In Germany, the popular program in which the government provided subsidies of €2,500 ($3,590 USD) to scrap old cars to buy new vehicles has ended with a total €5 billion ($7.47 billion USD) paid out to nearly 2 million applicants, The German automobile association VDA has forecasted that new-car registrations in Germany will total more than 3.5 million units this year but decline in 2010.

European Commission Delays Tobacco-Style Labeling for Car Manufacturers

The EC has delayed—for at least a year—the development of a proposal to require that a minimum of 20% of the space for new-vehicle advertising be devoted to information on fuel economy and C02 emissions. The regulations would cover any magazine, television or billboard advertising or point-of-sale displays in showrooms. The proposal was originally planned to be considered this year, but the development of these warning labels has been pushed back until 2010.

The new requirements, mirrored after measures imposed on cigarette producers, is being pushed by the EC and a number of members of the Parliament, citing a “dissatisfaction” with car assemblers’ compliance with more general guidelines in place since 1999 that call on them to include information [regarding fuel economy and C02 emissions] that is “easily legible and no less pronounced than the main part of the advertising message” and “easily understood, even when read briefly.”

Meanwhile, the EC has urged the car industry to sign a European code of good practices on car marketing and advertising.

Don’t Tell, Don’t Ask: Chip Tuning Being Approved in Germany, But Legality Remains Murky

The legality of chip tuning remains murky in Germany following a notice by the German government that, effective immediately, they are prohibited from approving engine-management software (chip tuning) modifications. The government has cited lack of knowledge on the effects these modifications have on exhaust emissions as well as other vehicle systems, such as braking and steering. Despite this edict, engine-management systems are being approved by some technical services using the same tests that are currently used for general engine tuning (such as tests for headers, valves and engine swaps). However, other testing facilities are declining to test these products because no clear procedure has been defined for them and issued certificates might eventually end up being rescinded for that reason.

The German specialty-equipment association, VDAT, has asked the German Transport Ministry to clarify the situation and to provide the industry with the specific test requirements. They have not yet heard back from the government.

Selling Into Germany—Recyclable Packaging a Requirement

As of January 2009, all new packaging sold in Germany must be registered with an officially recognized German recycler or risk a fine of €50,000 ($77,855 USD). The obligation to enroll in a recycling system (to reclaim retail packaging) rests with the originator of the packaged merchandise (i.e., the party that first brings the merchandise-filled packaging into circulation). The government has a list of approved companies with which firms may contract. For small-volume shippers, the annual fees for so-called “dual-system” companies appear to start at about €75 ($90 USD).

As a basic rule, anyone introducing packaging materials to be discarded by the end user will be required to participate. The importer, not the manufacturer, is generally responsible for meeting the recycling and packaging requirements. Yet U.S. companies will likely face a new hurdle in selling into the market, as importers will be liable for all products they carry. Importers of overseas products are typically offering to register the packaging, though the cost of that registration is typically passed onto the manufacturer.

Italian Companies Seek Allowance of German-Approved Products

Italy currently bans all specialty-equipment products unless an EU-wide or global harmonized standard exists for the product. So-called harmonized or common laws exist for a limited number of products, including exhaust systems, trailer couplings, lighting devices, automotive-related electronic products, brake linings, mirrors and bull bars, but no such multilateral regulations or laws govern the vast majority of optical and performance-enhancing products. The only other exception is if the product has been approved by the vehicle manufacturers. The industry in Italy has appealed to the government to allow aftermarket products and has offered to support legislation that allows products that have German approval to be allowed into Italy. As Italy does not have a domestic network of testing agencies, the industry is urging the government to allow consumers to obtain approvals according to German regulations from German testing agencies located throughout the world, including in Italy. The government is requiring a product-by-product phase-in, with wheels being among the first products that are likely to be approved through the system before the end of this year.

French Insurance Inspectors the New Specialty-Equipment Experts?

A new national law in France, entitled Procédure Véhicule Endommagé, authorized insurance industry personnel to conduct inspections to determine whether vehicles that have been involved in an accident are still road-worthy. Buried in this law was language that the insurance industry should also note the presence of aftermarket specialty products and whether the products conform with relevant laws. The local specialty-equipment association, FICAT, protested this provision, noting that these private-sector employees are not equipped to judge the legality of specialty products and might simply declare them banned. The government has tentatively agreed to remove specialty products from the scope of the law, but the industry remains vigilant until the changes are made official.

Dollars/Euros/Pounds But No Sense: Proposal Being Discussed to Extend Coverage of UNECE Harmonized Wheel Standard to Cover Specialty Wheels

Several representatives on the harmonization panel have called for the scope of the current United Nations Economic Commission for Europe (UNECE) wheel regulation (UNECE 124) to be extended to specialty wheels that, as spelled out in the document, are known as other-than-OE-sized wheels. There is speculation that countries such as Germany, which currently have one of the only wheel tests for specialty wheels throughout Europe, will oppose such a measure because they will lose their monopoly. Other countries that have a network of indigenous testing services but lack a wheel regulation might support such a measure in an effort to create some business for these entities.
 SEMA NEWS-NOVEMBER 2009-INTERNATIONAL

UNECE 90 spells out the proposed standards for brakes to be applicable throughout Europe and for all other countries that have agreed to abide by the rules of this global body (including South Korea, Japan and Australia). The regulation deals only with replacement brakes and is silent on specialty brakes.  



A Break for Specialty Brakes: ETO-Sponsored Clarification on UNECE Harmonized Rules on Brakes Moving Forward

NECE 90 spells out the proposed standards for brakes to be applicable throughout Europe and for all other countries that have agreed to abide by the rules of this global body (including South Korea, Japan and Australia). The regulation deals only with replacement brakes and is silent on specialty brakes. The European Tuning Organization (ETO) has sought to clarify that specialty brakes, though not mentioned in this regulation, are still permitted in Europe. This step was necessary as many European countries are apt to consider the lack of a specific measure on specialty brakes within this document as the equivalent of a ban on such products. The panel appears favorable to supporting the pan-European association, of which SEMA is a member.

The Hoon Squad: New South Wales Suspension Restrictions Narrowly Averted

Proposed suspension restrictions in the Australian state of New South Wales (NSW) have been put on hold at least temporarily thanks to a vigorous campaign mounted by the Australian Automotive Aftermarket Association (AAAA) and local industry. In July, NSW Transport Minister for Roads Michael Daley had proposed a maximum height change—raising or lowering modifications—to 5 centimeters (2 inches) and require these changes to undergo an “engineering inspection.” Local industry protested, led by AAAA, and the minister has now agreed to convene an advisory group (including industry) that can formulate some recommendations.

A press release from Daley’s office announced the proposed new restrictions on July 16, 2009, noting that the changes were being made to deter “car hoons.” Hoon is a local derogatory term used in Australia to refer to young people who drive “loud” cars and are “prone to street racing.” In the press release, entitled “Tough New Rules for Car Hoons,” the Minister stated: “I don’t want to see young hoons putting their lives or the lives of others at risk just because they think their car looks better 15 centimeters closer to the ground. These hoons may think their car looks cool, but as far as I’m concerned, anything more than a 5-centimeter change in a car’s suspension is dangerous and doesn’t belong on our roads.”

The AAAA is seeking “self certification” of suspension modifications of +/-5 centimeters without the need for an authorized engineer to sign off on such vehicles. Currently, throughout most of Australia, vehicles can be raised or lowered by up to 5 centimeters (2 inches) without approval and by up to 15 centimeters (5.9 inches) with authorized engineering approval. This would be similar to laws that exist elsewhere in Australia.

Lack of Testing Facilities and Vague Regulations Put Following Industry Complaints on Hold

The Australian state of Western Australia (WA) proposed new oversight over vehicles with engine modifications. With no input from industry, the WA Department of Transport introduced a regulation (Bulletin IB-124A) requiring special emissions testing for all vehicles that have been “significantly modified.” No definition of “significantly modified” was provided in the regulation.

The Australian Automotive Aftermarket Association has been at the forefront of industry efforts to seek a halt to these new regulations, which were drafted without the benefit of input from the industry. In the latest developments, the government has called for a delay in order to convene a panel that includes industry experts to acknowledge that the new requirements were not well thought-out and, in any case, that they did not have a structure in place. It turns out that there is currently only one testing facility in the entire state accredited to carrying out IM240 testing.  

Sun, 11/01/2009 - 15:57

SEMA News - November 2009

By Megan McKernan

Custom Wheels and Performance Tires

 

SEMA NEWS-NOVEMBER 2009-RESEARCHThe specialty-equipment market is divided into nine niches. For each of these, there are three segments, one of which is the wheel, tire and suspension category. Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).

For the average consumer, wheels and tires are a matter of function. But for an automotive enthusiast, wheels and tires are also about looks and performance. This is evidenced by the popularity of specialty-equipment products, such as low-profile tires and big rims. Custom wheels are often purchased for the addition they make to the overall look of a vehicle. But that is not always the case. A pickup owner who tows a boat or a race-car trailer is also concerned with the strength of the wheel. He or she will likely pick a forged-aluminum wheel rather than a cast-aluminum or multipiece wheel. Of course, this does not mean that design is ignored. There are awesome-looking forged-aluminum wheels available in the market. A similar scenario holds true for tires as well. Enthusiasts will typically purchase a set of new tires to go along with their custom wheels. And, contrary to what some might think, not all tires are created equal. Some are meant for high-performance driving, others are for off-road use, and still others are made for wet road conditions.

In recent years, the original-equipment manufacturers (OEMs) have ventured into the custom wheel market. Option packages now include wheel upgrades on many vehicles, such as the Chevrolet Silverado and Dodge Ram 1500. Many vehicles have been equipped with performance tires. For example, the Cadillac STS comes standard with tires made for performance driving, and a Chevy Tahoe Z71 off-road package includes off-road tires. In cases such as these, it is more likely that a vehicle owner would simply change the wheels rather than the wheels and tires together.

What SEMA Members Are Saying

SEMA NEWS-NOVEMBER 2009-RESEARCHOne of SEMA’s numerous councils is the Wheel & Tire Council (WTC). Input from council members is very valuable when trying to get a handle on the market. After all, these folks are the ones who live the market every day. According to some WTC members, 2009 is down a bit compared to 2008 but, as most of them mentioned, this was to be expected. Carl Robinson of Mickey Thompson Performance Tires noticed that wheel sales are down, particularly for 4x4 vehicles and lifted trucks. On the other hand, companies such as BMF Wheels, which has introduced new wheel designs, have noticed an increase in sales in the past couple of years. Barry Horlick of Voxx Products Inc. believes that “…sales for calendar year 2009 will actually be slightly better than the previous calendar year,” with the expectation that the last four months of 2009 will be healthier than the first eight.

SEMA members have noticed some trends in the wheel and tire market as well. It seems that 17- to 20-inch wheels remain the most popular. WTC Select Committee member Kelly Austin pointed out that trends often differ across different regions of the United States. He said that it’s best “…to listen to your wholesale customers and attend car shows where your products are sold most.” Horlick noticed an increase in sales of OEM replacement-size wheels as dealers work to jazz up their vehicles to move inventory.

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Robinson. Russ Fuller of Revolution Supply Inc. has seen an increase in demand for wheels and tires for Ford vehicles. And Horlick noted an emphasis on options for “…CUV, passenger and tuner applications rather than for the truck and SUV market.”

In fact, there may be a correlation between wheel purchases and the decrease in sales for trucks and SUVs and subsequent increases seen in the CUV market. The specialty-equipment market has typically ignored the customization of crossover vehicles, but as the popularity of this segment grows, more attention should be focused here.

SEMA NEWS-NOVEMBER 2009-RESEARCH 

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Carl Robinson of Mickey Thompson Performance Tires.   

Brandon Stotsenburg of Mobile Awareness LLC mentioned the customer’s need for value. Joe Schaefer of Konig Motoring Accessories echoed that sentiment: “Whenever we deal with a tough economy, we always find that people become better shoppers and look to get the most for their money.”

Custom Wheels

One-piece cast wheels represent the majority of custom wheels offered today. These wheels can be painted, polished or chrome plated. Painted wheels—particularly black—are a popular choice among enthusiasts.There are more and more companies offering wheels that look similar to race-car wheels. As mentioned earlier, forged-aluminum wheels are popular for truck owners who tow a lot of weight. Forged wheels are much stronger and more structurally sound than multipiece wheels. Interestingly, multipiece wheels are typically at the higher end of the price spectrum of the custom wheel market. The wheels, often referred to as “bling,” usually fall into this category. SEMA market research reported that custom wheel sales reached $3.8 billion in 2008 in retail sales, down from $4.7 billion in 2007.

Performance Tires

There are various types of performance tires offered in the market today. Tires are made for high-speed driving, racing, snow conditions or off-road use. Enthusiasts with pickups will often replace their stock tires with a set that has a much wider stance. Owners of vehicles such as the Chrysler 300 or Cadillac Escalade will often choose low-profile tires—the type that does not have much rubber between the wheel and tread. Street-performance vehicles will typically be equipped with performance-built tires. In many cases, the tire sizes differ between the front of the vehicle to the back.

Enthusiast Data

SEMA NEWS-NOVEMBER 2009-RESEARCH 

Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).  

SEMA’s market research department has traditionally surveyed automotive enthusiasts throughout the year to track various buying trends. In the 2008 Automotive Lifestyles Survey, SEMA found that 33% of enthusiasts had purchased custom wheels for their vehicles, while 19% planned to purchase custom wheels in the next 12 months. Twenty-four percent of enthusiasts had purchased plus-size tires, and 36% had purchased performance tires. Eleven percent planned to purchase plus-size tires, while 16% planned to purchase performance tires.

The 2009 SEMA Show will be home to more than 260 wheel and tire companies for four days. The aisles of lower South Hall at the Las Vegas Convention Center will be filled with shiny wheels and tires of all sizes. Attendees will have the opportunity to view the latest trends in the wheel and tire market and be able to talk directly to the companies that design and produce them. Some of the most exciting features of lower South Hall are vehicles equipped with the latest and greatest that wheel and tire manufacturers have to offer.

Wheels and tires might be a necessity, but that does not mean they can’t be cool.   

 

Sun, 11/01/2009 - 15:57

SEMA News - November 2009

By Megan McKernan

Custom Wheels and Performance Tires

 

SEMA NEWS-NOVEMBER 2009-RESEARCHThe specialty-equipment market is divided into nine niches. For each of these, there are three segments, one of which is the wheel, tire and suspension category. Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).

For the average consumer, wheels and tires are a matter of function. But for an automotive enthusiast, wheels and tires are also about looks and performance. This is evidenced by the popularity of specialty-equipment products, such as low-profile tires and big rims. Custom wheels are often purchased for the addition they make to the overall look of a vehicle. But that is not always the case. A pickup owner who tows a boat or a race-car trailer is also concerned with the strength of the wheel. He or she will likely pick a forged-aluminum wheel rather than a cast-aluminum or multipiece wheel. Of course, this does not mean that design is ignored. There are awesome-looking forged-aluminum wheels available in the market. A similar scenario holds true for tires as well. Enthusiasts will typically purchase a set of new tires to go along with their custom wheels. And, contrary to what some might think, not all tires are created equal. Some are meant for high-performance driving, others are for off-road use, and still others are made for wet road conditions.

In recent years, the original-equipment manufacturers (OEMs) have ventured into the custom wheel market. Option packages now include wheel upgrades on many vehicles, such as the Chevrolet Silverado and Dodge Ram 1500. Many vehicles have been equipped with performance tires. For example, the Cadillac STS comes standard with tires made for performance driving, and a Chevy Tahoe Z71 off-road package includes off-road tires. In cases such as these, it is more likely that a vehicle owner would simply change the wheels rather than the wheels and tires together.

What SEMA Members Are Saying

SEMA NEWS-NOVEMBER 2009-RESEARCHOne of SEMA’s numerous councils is the Wheel & Tire Council (WTC). Input from council members is very valuable when trying to get a handle on the market. After all, these folks are the ones who live the market every day. According to some WTC members, 2009 is down a bit compared to 2008 but, as most of them mentioned, this was to be expected. Carl Robinson of Mickey Thompson Performance Tires noticed that wheel sales are down, particularly for 4x4 vehicles and lifted trucks. On the other hand, companies such as BMF Wheels, which has introduced new wheel designs, have noticed an increase in sales in the past couple of years. Barry Horlick of Voxx Products Inc. believes that “…sales for calendar year 2009 will actually be slightly better than the previous calendar year,” with the expectation that the last four months of 2009 will be healthier than the first eight.

SEMA members have noticed some trends in the wheel and tire market as well. It seems that 17- to 20-inch wheels remain the most popular. WTC Select Committee member Kelly Austin pointed out that trends often differ across different regions of the United States. He said that it’s best “…to listen to your wholesale customers and attend car shows where your products are sold most.” Horlick noticed an increase in sales of OEM replacement-size wheels as dealers work to jazz up their vehicles to move inventory.

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Robinson. Russ Fuller of Revolution Supply Inc. has seen an increase in demand for wheels and tires for Ford vehicles. And Horlick noted an emphasis on options for “…CUV, passenger and tuner applications rather than for the truck and SUV market.”

In fact, there may be a correlation between wheel purchases and the decrease in sales for trucks and SUVs and subsequent increases seen in the CUV market. The specialty-equipment market has typically ignored the customization of crossover vehicles, but as the popularity of this segment grows, more attention should be focused here.

SEMA NEWS-NOVEMBER 2009-RESEARCH 

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Carl Robinson of Mickey Thompson Performance Tires.   

Brandon Stotsenburg of Mobile Awareness LLC mentioned the customer’s need for value. Joe Schaefer of Konig Motoring Accessories echoed that sentiment: “Whenever we deal with a tough economy, we always find that people become better shoppers and look to get the most for their money.”

Custom Wheels

One-piece cast wheels represent the majority of custom wheels offered today. These wheels can be painted, polished or chrome plated. Painted wheels—particularly black—are a popular choice among enthusiasts.There are more and more companies offering wheels that look similar to race-car wheels. As mentioned earlier, forged-aluminum wheels are popular for truck owners who tow a lot of weight. Forged wheels are much stronger and more structurally sound than multipiece wheels. Interestingly, multipiece wheels are typically at the higher end of the price spectrum of the custom wheel market. The wheels, often referred to as “bling,” usually fall into this category. SEMA market research reported that custom wheel sales reached $3.8 billion in 2008 in retail sales, down from $4.7 billion in 2007.

Performance Tires

There are various types of performance tires offered in the market today. Tires are made for high-speed driving, racing, snow conditions or off-road use. Enthusiasts with pickups will often replace their stock tires with a set that has a much wider stance. Owners of vehicles such as the Chrysler 300 or Cadillac Escalade will often choose low-profile tires—the type that does not have much rubber between the wheel and tread. Street-performance vehicles will typically be equipped with performance-built tires. In many cases, the tire sizes differ between the front of the vehicle to the back.

Enthusiast Data

SEMA NEWS-NOVEMBER 2009-RESEARCH 

Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).  

SEMA’s market research department has traditionally surveyed automotive enthusiasts throughout the year to track various buying trends. In the 2008 Automotive Lifestyles Survey, SEMA found that 33% of enthusiasts had purchased custom wheels for their vehicles, while 19% planned to purchase custom wheels in the next 12 months. Twenty-four percent of enthusiasts had purchased plus-size tires, and 36% had purchased performance tires. Eleven percent planned to purchase plus-size tires, while 16% planned to purchase performance tires.

The 2009 SEMA Show will be home to more than 260 wheel and tire companies for four days. The aisles of lower South Hall at the Las Vegas Convention Center will be filled with shiny wheels and tires of all sizes. Attendees will have the opportunity to view the latest trends in the wheel and tire market and be able to talk directly to the companies that design and produce them. Some of the most exciting features of lower South Hall are vehicles equipped with the latest and greatest that wheel and tire manufacturers have to offer.

Wheels and tires might be a necessity, but that does not mean they can’t be cool.   

 

Sun, 11/01/2009 - 15:57

SEMA News - November 2009

By Megan McKernan

Custom Wheels and Performance Tires

 

SEMA NEWS-NOVEMBER 2009-RESEARCHThe specialty-equipment market is divided into nine niches. For each of these, there are three segments, one of which is the wheel, tire and suspension category. Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).

For the average consumer, wheels and tires are a matter of function. But for an automotive enthusiast, wheels and tires are also about looks and performance. This is evidenced by the popularity of specialty-equipment products, such as low-profile tires and big rims. Custom wheels are often purchased for the addition they make to the overall look of a vehicle. But that is not always the case. A pickup owner who tows a boat or a race-car trailer is also concerned with the strength of the wheel. He or she will likely pick a forged-aluminum wheel rather than a cast-aluminum or multipiece wheel. Of course, this does not mean that design is ignored. There are awesome-looking forged-aluminum wheels available in the market. A similar scenario holds true for tires as well. Enthusiasts will typically purchase a set of new tires to go along with their custom wheels. And, contrary to what some might think, not all tires are created equal. Some are meant for high-performance driving, others are for off-road use, and still others are made for wet road conditions.

In recent years, the original-equipment manufacturers (OEMs) have ventured into the custom wheel market. Option packages now include wheel upgrades on many vehicles, such as the Chevrolet Silverado and Dodge Ram 1500. Many vehicles have been equipped with performance tires. For example, the Cadillac STS comes standard with tires made for performance driving, and a Chevy Tahoe Z71 off-road package includes off-road tires. In cases such as these, it is more likely that a vehicle owner would simply change the wheels rather than the wheels and tires together.

What SEMA Members Are Saying

SEMA NEWS-NOVEMBER 2009-RESEARCHOne of SEMA’s numerous councils is the Wheel & Tire Council (WTC). Input from council members is very valuable when trying to get a handle on the market. After all, these folks are the ones who live the market every day. According to some WTC members, 2009 is down a bit compared to 2008 but, as most of them mentioned, this was to be expected. Carl Robinson of Mickey Thompson Performance Tires noticed that wheel sales are down, particularly for 4x4 vehicles and lifted trucks. On the other hand, companies such as BMF Wheels, which has introduced new wheel designs, have noticed an increase in sales in the past couple of years. Barry Horlick of Voxx Products Inc. believes that “…sales for calendar year 2009 will actually be slightly better than the previous calendar year,” with the expectation that the last four months of 2009 will be healthier than the first eight.

SEMA members have noticed some trends in the wheel and tire market as well. It seems that 17- to 20-inch wheels remain the most popular. WTC Select Committee member Kelly Austin pointed out that trends often differ across different regions of the United States. He said that it’s best “…to listen to your wholesale customers and attend car shows where your products are sold most.” Horlick noticed an increase in sales of OEM replacement-size wheels as dealers work to jazz up their vehicles to move inventory.

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Robinson. Russ Fuller of Revolution Supply Inc. has seen an increase in demand for wheels and tires for Ford vehicles. And Horlick noted an emphasis on options for “…CUV, passenger and tuner applications rather than for the truck and SUV market.”

In fact, there may be a correlation between wheel purchases and the decrease in sales for trucks and SUVs and subsequent increases seen in the CUV market. The specialty-equipment market has typically ignored the customization of crossover vehicles, but as the popularity of this segment grows, more attention should be focused here.

SEMA NEWS-NOVEMBER 2009-RESEARCH 

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Carl Robinson of Mickey Thompson Performance Tires.   

Brandon Stotsenburg of Mobile Awareness LLC mentioned the customer’s need for value. Joe Schaefer of Konig Motoring Accessories echoed that sentiment: “Whenever we deal with a tough economy, we always find that people become better shoppers and look to get the most for their money.”

Custom Wheels

One-piece cast wheels represent the majority of custom wheels offered today. These wheels can be painted, polished or chrome plated. Painted wheels—particularly black—are a popular choice among enthusiasts.There are more and more companies offering wheels that look similar to race-car wheels. As mentioned earlier, forged-aluminum wheels are popular for truck owners who tow a lot of weight. Forged wheels are much stronger and more structurally sound than multipiece wheels. Interestingly, multipiece wheels are typically at the higher end of the price spectrum of the custom wheel market. The wheels, often referred to as “bling,” usually fall into this category. SEMA market research reported that custom wheel sales reached $3.8 billion in 2008 in retail sales, down from $4.7 billion in 2007.

Performance Tires

There are various types of performance tires offered in the market today. Tires are made for high-speed driving, racing, snow conditions or off-road use. Enthusiasts with pickups will often replace their stock tires with a set that has a much wider stance. Owners of vehicles such as the Chrysler 300 or Cadillac Escalade will often choose low-profile tires—the type that does not have much rubber between the wheel and tread. Street-performance vehicles will typically be equipped with performance-built tires. In many cases, the tire sizes differ between the front of the vehicle to the back.

Enthusiast Data

SEMA NEWS-NOVEMBER 2009-RESEARCH 

Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).  

SEMA’s market research department has traditionally surveyed automotive enthusiasts throughout the year to track various buying trends. In the 2008 Automotive Lifestyles Survey, SEMA found that 33% of enthusiasts had purchased custom wheels for their vehicles, while 19% planned to purchase custom wheels in the next 12 months. Twenty-four percent of enthusiasts had purchased plus-size tires, and 36% had purchased performance tires. Eleven percent planned to purchase plus-size tires, while 16% planned to purchase performance tires.

The 2009 SEMA Show will be home to more than 260 wheel and tire companies for four days. The aisles of lower South Hall at the Las Vegas Convention Center will be filled with shiny wheels and tires of all sizes. Attendees will have the opportunity to view the latest trends in the wheel and tire market and be able to talk directly to the companies that design and produce them. Some of the most exciting features of lower South Hall are vehicles equipped with the latest and greatest that wheel and tire manufacturers have to offer.

Wheels and tires might be a necessity, but that does not mean they can’t be cool.   

 

Sun, 11/01/2009 - 15:57

SEMA News - November 2009

By Megan McKernan

Custom Wheels and Performance Tires

 

SEMA NEWS-NOVEMBER 2009-RESEARCHThe specialty-equipment market is divided into nine niches. For each of these, there are three segments, one of which is the wheel, tire and suspension category. Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).

For the average consumer, wheels and tires are a matter of function. But for an automotive enthusiast, wheels and tires are also about looks and performance. This is evidenced by the popularity of specialty-equipment products, such as low-profile tires and big rims. Custom wheels are often purchased for the addition they make to the overall look of a vehicle. But that is not always the case. A pickup owner who tows a boat or a race-car trailer is also concerned with the strength of the wheel. He or she will likely pick a forged-aluminum wheel rather than a cast-aluminum or multipiece wheel. Of course, this does not mean that design is ignored. There are awesome-looking forged-aluminum wheels available in the market. A similar scenario holds true for tires as well. Enthusiasts will typically purchase a set of new tires to go along with their custom wheels. And, contrary to what some might think, not all tires are created equal. Some are meant for high-performance driving, others are for off-road use, and still others are made for wet road conditions.

In recent years, the original-equipment manufacturers (OEMs) have ventured into the custom wheel market. Option packages now include wheel upgrades on many vehicles, such as the Chevrolet Silverado and Dodge Ram 1500. Many vehicles have been equipped with performance tires. For example, the Cadillac STS comes standard with tires made for performance driving, and a Chevy Tahoe Z71 off-road package includes off-road tires. In cases such as these, it is more likely that a vehicle owner would simply change the wheels rather than the wheels and tires together.

What SEMA Members Are Saying

SEMA NEWS-NOVEMBER 2009-RESEARCHOne of SEMA’s numerous councils is the Wheel & Tire Council (WTC). Input from council members is very valuable when trying to get a handle on the market. After all, these folks are the ones who live the market every day. According to some WTC members, 2009 is down a bit compared to 2008 but, as most of them mentioned, this was to be expected. Carl Robinson of Mickey Thompson Performance Tires noticed that wheel sales are down, particularly for 4x4 vehicles and lifted trucks. On the other hand, companies such as BMF Wheels, which has introduced new wheel designs, have noticed an increase in sales in the past couple of years. Barry Horlick of Voxx Products Inc. believes that “…sales for calendar year 2009 will actually be slightly better than the previous calendar year,” with the expectation that the last four months of 2009 will be healthier than the first eight.

SEMA members have noticed some trends in the wheel and tire market as well. It seems that 17- to 20-inch wheels remain the most popular. WTC Select Committee member Kelly Austin pointed out that trends often differ across different regions of the United States. He said that it’s best “…to listen to your wholesale customers and attend car shows where your products are sold most.” Horlick noticed an increase in sales of OEM replacement-size wheels as dealers work to jazz up their vehicles to move inventory.

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Robinson. Russ Fuller of Revolution Supply Inc. has seen an increase in demand for wheels and tires for Ford vehicles. And Horlick noted an emphasis on options for “…CUV, passenger and tuner applications rather than for the truck and SUV market.”

In fact, there may be a correlation between wheel purchases and the decrease in sales for trucks and SUVs and subsequent increases seen in the CUV market. The specialty-equipment market has typically ignored the customization of crossover vehicles, but as the popularity of this segment grows, more attention should be focused here.

SEMA NEWS-NOVEMBER 2009-RESEARCH 

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Carl Robinson of Mickey Thompson Performance Tires.   

Brandon Stotsenburg of Mobile Awareness LLC mentioned the customer’s need for value. Joe Schaefer of Konig Motoring Accessories echoed that sentiment: “Whenever we deal with a tough economy, we always find that people become better shoppers and look to get the most for their money.”

Custom Wheels

One-piece cast wheels represent the majority of custom wheels offered today. These wheels can be painted, polished or chrome plated. Painted wheels—particularly black—are a popular choice among enthusiasts.There are more and more companies offering wheels that look similar to race-car wheels. As mentioned earlier, forged-aluminum wheels are popular for truck owners who tow a lot of weight. Forged wheels are much stronger and more structurally sound than multipiece wheels. Interestingly, multipiece wheels are typically at the higher end of the price spectrum of the custom wheel market. The wheels, often referred to as “bling,” usually fall into this category. SEMA market research reported that custom wheel sales reached $3.8 billion in 2008 in retail sales, down from $4.7 billion in 2007.

Performance Tires

There are various types of performance tires offered in the market today. Tires are made for high-speed driving, racing, snow conditions or off-road use. Enthusiasts with pickups will often replace their stock tires with a set that has a much wider stance. Owners of vehicles such as the Chrysler 300 or Cadillac Escalade will often choose low-profile tires—the type that does not have much rubber between the wheel and tread. Street-performance vehicles will typically be equipped with performance-built tires. In many cases, the tire sizes differ between the front of the vehicle to the back.

Enthusiast Data

SEMA NEWS-NOVEMBER 2009-RESEARCH 

Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).  

SEMA’s market research department has traditionally surveyed automotive enthusiasts throughout the year to track various buying trends. In the 2008 Automotive Lifestyles Survey, SEMA found that 33% of enthusiasts had purchased custom wheels for their vehicles, while 19% planned to purchase custom wheels in the next 12 months. Twenty-four percent of enthusiasts had purchased plus-size tires, and 36% had purchased performance tires. Eleven percent planned to purchase plus-size tires, while 16% planned to purchase performance tires.

The 2009 SEMA Show will be home to more than 260 wheel and tire companies for four days. The aisles of lower South Hall at the Las Vegas Convention Center will be filled with shiny wheels and tires of all sizes. Attendees will have the opportunity to view the latest trends in the wheel and tire market and be able to talk directly to the companies that design and produce them. Some of the most exciting features of lower South Hall are vehicles equipped with the latest and greatest that wheel and tire manufacturers have to offer.

Wheels and tires might be a necessity, but that does not mean they can’t be cool.   

 

Sun, 11/01/2009 - 15:57

SEMA News - November 2009

By Megan McKernan

Custom Wheels and Performance Tires

 

SEMA NEWS-NOVEMBER 2009-RESEARCHThe specialty-equipment market is divided into nine niches. For each of these, there are three segments, one of which is the wheel, tire and suspension category. Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).

For the average consumer, wheels and tires are a matter of function. But for an automotive enthusiast, wheels and tires are also about looks and performance. This is evidenced by the popularity of specialty-equipment products, such as low-profile tires and big rims. Custom wheels are often purchased for the addition they make to the overall look of a vehicle. But that is not always the case. A pickup owner who tows a boat or a race-car trailer is also concerned with the strength of the wheel. He or she will likely pick a forged-aluminum wheel rather than a cast-aluminum or multipiece wheel. Of course, this does not mean that design is ignored. There are awesome-looking forged-aluminum wheels available in the market. A similar scenario holds true for tires as well. Enthusiasts will typically purchase a set of new tires to go along with their custom wheels. And, contrary to what some might think, not all tires are created equal. Some are meant for high-performance driving, others are for off-road use, and still others are made for wet road conditions.

In recent years, the original-equipment manufacturers (OEMs) have ventured into the custom wheel market. Option packages now include wheel upgrades on many vehicles, such as the Chevrolet Silverado and Dodge Ram 1500. Many vehicles have been equipped with performance tires. For example, the Cadillac STS comes standard with tires made for performance driving, and a Chevy Tahoe Z71 off-road package includes off-road tires. In cases such as these, it is more likely that a vehicle owner would simply change the wheels rather than the wheels and tires together.

What SEMA Members Are Saying

SEMA NEWS-NOVEMBER 2009-RESEARCHOne of SEMA’s numerous councils is the Wheel & Tire Council (WTC). Input from council members is very valuable when trying to get a handle on the market. After all, these folks are the ones who live the market every day. According to some WTC members, 2009 is down a bit compared to 2008 but, as most of them mentioned, this was to be expected. Carl Robinson of Mickey Thompson Performance Tires noticed that wheel sales are down, particularly for 4x4 vehicles and lifted trucks. On the other hand, companies such as BMF Wheels, which has introduced new wheel designs, have noticed an increase in sales in the past couple of years. Barry Horlick of Voxx Products Inc. believes that “…sales for calendar year 2009 will actually be slightly better than the previous calendar year,” with the expectation that the last four months of 2009 will be healthier than the first eight.

SEMA members have noticed some trends in the wheel and tire market as well. It seems that 17- to 20-inch wheels remain the most popular. WTC Select Committee member Kelly Austin pointed out that trends often differ across different regions of the United States. He said that it’s best “…to listen to your wholesale customers and attend car shows where your products are sold most.” Horlick noticed an increase in sales of OEM replacement-size wheels as dealers work to jazz up their vehicles to move inventory.

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Robinson. Russ Fuller of Revolution Supply Inc. has seen an increase in demand for wheels and tires for Ford vehicles. And Horlick noted an emphasis on options for “…CUV, passenger and tuner applications rather than for the truck and SUV market.”

In fact, there may be a correlation between wheel purchases and the decrease in sales for trucks and SUVs and subsequent increases seen in the CUV market. The specialty-equipment market has typically ignored the customization of crossover vehicles, but as the popularity of this segment grows, more attention should be focused here.

SEMA NEWS-NOVEMBER 2009-RESEARCH 

In the 4x4 market, some of the most popular vehicles customized with aftermarket tires are Ford and Chevy pickups, Toyota FJ Cruisers and Jeeps, according to Carl Robinson of Mickey Thompson Performance Tires.   

Brandon Stotsenburg of Mobile Awareness LLC mentioned the customer’s need for value. Joe Schaefer of Konig Motoring Accessories echoed that sentiment: “Whenever we deal with a tough economy, we always find that people become better shoppers and look to get the most for their money.”

Custom Wheels

One-piece cast wheels represent the majority of custom wheels offered today. These wheels can be painted, polished or chrome plated. Painted wheels—particularly black—are a popular choice among enthusiasts.There are more and more companies offering wheels that look similar to race-car wheels. As mentioned earlier, forged-aluminum wheels are popular for truck owners who tow a lot of weight. Forged wheels are much stronger and more structurally sound than multipiece wheels. Interestingly, multipiece wheels are typically at the higher end of the price spectrum of the custom wheel market. The wheels, often referred to as “bling,” usually fall into this category. SEMA market research reported that custom wheel sales reached $3.8 billion in 2008 in retail sales, down from $4.7 billion in 2007.

Performance Tires

There are various types of performance tires offered in the market today. Tires are made for high-speed driving, racing, snow conditions or off-road use. Enthusiasts with pickups will often replace their stock tires with a set that has a much wider stance. Owners of vehicles such as the Chrysler 300 or Cadillac Escalade will often choose low-profile tires—the type that does not have much rubber between the wheel and tread. Street-performance vehicles will typically be equipped with performance-built tires. In many cases, the tire sizes differ between the front of the vehicle to the back.

Enthusiast Data

SEMA NEWS-NOVEMBER 2009-RESEARCH 

Overall, the wheel, tire and suspension category rose nearly 2% in retail sales and 3% in manufacturer sales from 2007 to 2008 (See Chart 1). Light truck is the niche in which wheels, tires and suspension represent the largest percentage at $1.29 billion in manufacturer sales (See Table 1).  

SEMA’s market research department has traditionally surveyed automotive enthusiasts throughout the year to track various buying trends. In the 2008 Automotive Lifestyles Survey, SEMA found that 33% of enthusiasts had purchased custom wheels for their vehicles, while 19% planned to purchase custom wheels in the next 12 months. Twenty-four percent of enthusiasts had purchased plus-size tires, and 36% had purchased performance tires. Eleven percent planned to purchase plus-size tires, while 16% planned to purchase performance tires.

The 2009 SEMA Show will be home to more than 260 wheel and tire companies for four days. The aisles of lower South Hall at the Las Vegas Convention Center will be filled with shiny wheels and tires of all sizes. Attendees will have the opportunity to view the latest trends in the wheel and tire market and be able to talk directly to the companies that design and produce them. Some of the most exciting features of lower South Hall are vehicles equipped with the latest and greatest that wheel and tire manufacturers have to offer.

Wheels and tires might be a necessity, but that does not mean they can’t be cool.   

 

Sun, 11/01/2009 - 15:57

SEMA News - November 2009 

By Drew Hardin

Photo Courtesy Source Interlink Media Archives

 

SEMA NEWS-NOVEMBER 2009-SEMA HERITAGE-BOBBY UNSERAt this year’s running of the Pikes Peak Hill Climb, Nobuhiro “Monster” Tajima was the fastest man up the 12.42-mile, 156-turn course. Driving an 880hp, four-wheel-drive Suzuki SX4 clad in carbon and Kevlar composites, Monster missed his goal of breaking the 10-minute barrier; but with a run of 10 minutes, 15.368 seconds, he was still nearly a full minute faster than the next closest competitor.

Fifty years ago, it was a young Bobby Unser who set the pace on the Peak with a 13-minute, 36.5-second run that beat his own previous record. According to Hot Rod magazine’s Ray Brock, both Bobby and younger brother Al were set to race up the Peak in July 1959, but when USAC discovered that Al was still a few months shy of his 21st birthday, they wouldn’t let him run. Bobby surprised everyone by giving up his Jaguar-powered roadster to drive Al’s Pontiac-powered car. His reasoning, said Brock: Although the Jag handled better through the switchbacks, the Pontiac was more powerful and had the acceleration he needed to stay ahead of the other roadsters in his class. Unser acted as his own mechanic at the race and is seen here checking the throttle linkage on the 360-inch Pontiac mill. And, of course, Brock had an extra Hot Rod T-shirt to put on Bobby for the photo. 

 
 

 

Sun, 11/01/2009 - 15:57

SEMA News - November 2009 

By Drew Hardin

Photo Courtesy Source Interlink Media Archives

 

SEMA NEWS-NOVEMBER 2009-SEMA HERITAGE-BOBBY UNSERAt this year’s running of the Pikes Peak Hill Climb, Nobuhiro “Monster” Tajima was the fastest man up the 12.42-mile, 156-turn course. Driving an 880hp, four-wheel-drive Suzuki SX4 clad in carbon and Kevlar composites, Monster missed his goal of breaking the 10-minute barrier; but with a run of 10 minutes, 15.368 seconds, he was still nearly a full minute faster than the next closest competitor.

Fifty years ago, it was a young Bobby Unser who set the pace on the Peak with a 13-minute, 36.5-second run that beat his own previous record. According to Hot Rod magazine’s Ray Brock, both Bobby and younger brother Al were set to race up the Peak in July 1959, but when USAC discovered that Al was still a few months shy of his 21st birthday, they wouldn’t let him run. Bobby surprised everyone by giving up his Jaguar-powered roadster to drive Al’s Pontiac-powered car. His reasoning, said Brock: Although the Jag handled better through the switchbacks, the Pontiac was more powerful and had the acceleration he needed to stay ahead of the other roadsters in his class. Unser acted as his own mechanic at the race and is seen here checking the throttle linkage on the 360-inch Pontiac mill. And, of course, Brock had an extra Hot Rod T-shirt to put on Bobby for the photo. 

 
 

 

Sun, 11/01/2009 - 15:57

SEMA News - November 2009

 By Steve McDonald

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

Canada (Saskatchewan)

SEMA NEWS-NOVEMBER 2009-LAW AND ORDERRaised Vehicles: SEMA submitted technical comments to a regulatory proposal issued by Saskatchewan Government Insurance (SGI) to regulate raised vehicles in the province. SGI operates the province’s driver’s licensing and vehicle registration system. SGI regulators claim that the number of raised vehicles imported into and operating in Saskatchewan has increased, prompting inquiries from the general public, raised vehicle owners, off-road enthusiasts, vehicle inspection stations and law enforcement with requests to clarify the existing regulations and standards for raised vehicles. Under the proposal, all aftermarket raised vehicles operated on Saskatchewan highways would be subject to a raised vehicle inspection after January 1, 2011. The policy would be rolled out in two phases to mitigate the impact on existing raised vehicle owners and provide time to train and inform the public, inspection stations and law enforcement. Regulators are considering requiring owners to carry a “Letter of Authorization” issued by the province in order to operate a raised vehicle. The letter would signify that the vehicle has passed inspection and would be shown to law enforcement during roadside stops to demonstrate compliance with the applicable frame height limit. 

Indiana

Antiques: State hobbyist groups, working with SEMA and SEMA-member companies, have reached a tentative compromise with the Indiana Department of Environmental Management on an agency proposal that originally sought to redefine the term “antique vehicle” in order to force more of these hobby cars into the emissions inspection program. Under existing law, an antique vehicle is defined as “a motor vehicle or motor scooter that is at least 25 years old.” Under the initial regulation, the definition would be revised to require that the vehicle must be at least 25 years old; registered and plated as an historic motor vehicle; driven a maximum of 3,000 miles per calendar year; and include federally required pollution control equipment for that make and model year. Under the plan, the vehicle would be periodically forced into a vehicle emissions test site to verify that these requirements have been met. Under the current compromise, vehicles 25 years old and older would be exempted from the 3,000-mile limit and the pollution control equipment requirement if they were insured under a collectible vehicle or classic automobile insurance policy. 

FEDERAL UPDATE


Health Care Reform: Last August’s town hall meetings helped identify deficiencies in various approaches on health care reform legislation. Lawmakers were challenged to consider pursuing more incremental reform, tackle the root causes of skyrocketing premiums, preserve the private market and maintain fiscal responsibility. SEMA urged President Obama and Congress to focus attention on the structural changes needed to reduce costs and increase competition. SEMA coordinated member grassroots efforts to let lawmakers hear from their small-business constituency.

An estimated 27 million small-business owners, employees and dependents are now uninsured under the current system. SEMA continues to work with the National Federation of Independent Business and through the Small Business Coalition for Affordable Healthcare in pursuit of effective health reform changes. A common message has been the need to allow small businesses to pool their resources when shopping for insurance. This approach would spur competition for the small-group market and, in return, bring more choices for business owners struggling to afford health insurance for their employees.

Federal Tire Fuel-Efficiency Rating Program: The National Highway Traffic Safety Administration (NHTSA) is developing a program for mass-produced replacement tires, whereby tire manufacturers would be required to rate the tires for fuel efficiency, safety and durability based on performance tests established by the NHTSA. The program is required under a 2007 law that included a SEMA provision exempting from the rating system those tires that have been produced or imported in annual units of less than 15,000 and do not exceed 35,000 tires in total brand-name production. The specialty tires at issue are mostly produced for classic and antique cars and for some off-highway vehicles. SEMA urged the NHTSA not to impose unnecessary reporting requirements on the limited-production tires for which manufacturers had claimed the low-volume exemption. SEMA emphasized that a reporting requirement would run counter to the law’s intent, which recognizes that limited-volume tire producers are small businesses and ensures that the specialty tires will continue to be available to the consumer. The NHTSA is expected to finalize the program by December 2009.

Transmission Interlock: The NHTSA will soon require all automatic-transmission vehicles be equipped with an interlock device that requires that the brake pedal be pressed before the driver can shift the transmission out of Park. The action is required under a law passed in 2008 designed to protect children from vehicle rollaways in which a car is inadvertently shifted into Neutral or another gear. The NHTSA is proposing to amend Federal Motor Vehicle Safety Standard No. 114 (Theft Protection and Rollaway Prevention) to mandate a brake transmission shift interlock device on all passenger cars and light trucks weighing 10,000 lbs. or less.

Antilock Brakes: The NHTSA reported that antilock brake systems (ABS) have been generally effective in preventing crashes, especially when combined with an electronic stability control (ESC) system. However, the NHTSA observed an unexplained rise in accidents in which ABS-equipped vehicles have “run off the road.” The NHTSA notes that this may diminish as ESC systems are installed on all passenger vehicles by 2011. The report is based on crash data collected between 1997 and 2007. The report revealed significant reductions in collisions with pedestrians and other vehicles and noted that ABS is particularly effective on wet pavements and in improving overall vehicle stability during braking.