Thu, 10/08/2009 - 12:20

Seth Gortenburg, owner of Chux Trux understands that trade shows hold a wealth of information. In order to be as efficient as possible, he approaches each day of the SEMA Show with a plan based on his upcoming business needs—as well as the information he and his team gathered the previous day.

 

 

Thu, 10/08/2009 - 12:20

Seth Gortenburg, owner of Chux Trux understands that trade shows hold a wealth of information. In order to be as efficient as possible, he approaches each day of the SEMA Show with a plan based on his upcoming business needs—as well as the information he and his team gathered the previous day.

 

 

Thu, 10/08/2009 - 12:20

Seth Gortenburg, owner of Chux Trux understands that trade shows hold a wealth of information. In order to be as efficient as possible, he approaches each day of the SEMA Show with a plan based on his upcoming business needs—as well as the information he and his team gathered the previous day.

 

 

Thu, 10/08/2009 - 12:20

Seth Gortenburg, owner of Chux Trux understands that trade shows hold a wealth of information. In order to be as efficient as possible, he approaches each day of the SEMA Show with a plan based on his upcoming business needs—as well as the information he and his team gathered the previous day.

 

 

Fri, 10/02/2009 - 16:41

SEMA News - October 2009


Keynote Coffee with eBay Motors at the 2009 SEMA Show


  SEMA NEWS-OCTOBER 2009-INDUSTRY NEWS
 

Rob Chesney, vice president of eBay Motors will lead a panel on the influence of the internet. 

The Internet is known for shaping industries by providing transparency in content, inventory and eventually pricing. Several industries have seen this cycle mature over the past 10 years. The new-car industry was the first to see this cycle of transparency play out in its space and emerge with a new set of assets to compete. On Monday, November 2, from 8:00-9:00 AM at the Las Vegas Hilton, Ballroom C, Rob Chesney, vice president of eBay Motors, will lead a panel of industry experts to explore the eventual end state of the industry, as influenced by the Internet. Sub-topics will include: the role of content; pricing transparency; video; the evolution and role of aggregators; the co-mingling of services and parts; the role of catalog provider content and application data; and shifts in search behavior.

In “The Role of the Internet in Shaping Parts and Accessories Sales in 2009 and Beyond,” Chesney will draw from his personal experience leading the world’s largest automotive site through these decisions at eBay with its vehicles and parts business over the past eight years. Chesney has seen the evolution of the vehicles business as impacted by the current macroeconomic climate, along with the major changes occurring in the automotive industry.

The panel will have a range of experts including Rob Chesney, Vice President of eBay Motors; Jad Dunning, CEO of DriverSide; Michelle Morris, Director of North America Automotive Sales for Google; Bryan Murphy, CEO of WHI Solutions, Inc.; Famous Rhodes, Director of Parts and Accessories for eBay Motors; Glenn Rogers, CEO of CarDomain; Steve Sigg, eBusiness Manager for ACDelco.

Click here for more information on the program.

 

SEMA Phase II and III CAR Reports Premiere at SEMA State of the Association

Through a multi-phased series of specialty-equipment industry forecasting reports put out by SEMA and the Center for Automotive Research (CAR), members are able to increase their understanding and awareness of vehicle technology challenges and opportunities to support their business development and planning efforts.

The Phase I report, released last year, is entitled “The Specialty-Equipment Company of the Future: Guideposts for Technology Forecasting and Strategic Planning.”

The Phase II report is entitled “Powertrain Forecast and Analysis: What is Coming and What Are the Implications for the Specialty-Equipment and Performance Aftermarket Industry?” It addresses the rapidly changing powertrain plans of the OEMs for the U.S. Market.

Also available now is the Phase III report entitled “The Major Determinants of U.S. Automotive Demand: Factors Driving the U.S. Automotive Market and Their Implications for Specialty-Equipment Suppliers,” which presents an analysis of the economic drivers of the U.S. automotive market and their potential impact on SEMA-member companies.

At the 2009 SEMA State of the Association gathering, John Waraniak, SEMA vice president of vehicle technology, and Brett Smith of CAR shared exclusive insights from the CAR reports.

“This is must-read material for those who plan to survive and thrive in the challenging years ahead,” said Waraniak. “These reports will be useful to the decisions you make today. The information will increase your understanding and knowledge about vehicle manufacturer plans for powertrain technology and economic forecasts that feature the specialty-equipment industry.”


The 2009 CAR reports can be downloaded here. Member login and password are required to download the reports. For password assistance, please contact Tim Johnson at 909/396-0289, ext. 138.


 

SEMA and Clemson University Announce Innovative Partnership


  SEMA NEWS-OCTOBER 2009-INDUSTRY NEWS-JIM COZZIE
 

Immediate Past Chairman Jim Cozzie announced a unique collaboration between SEMA and Clemson University. 

SEMA’s outgoing chairman, Jim Cozzie, took the podium during the annual board officer’s installation ceremony prior to handing over the gavel to incoming chair, Rick Rollins, and announced one of the most innovative alliances in SEMA’s 47-year history to the audience of more than 500 attendees. Cozzie outlined a partnership between California-headquartered SEMA and South Carolina-based Clemson University, which launched the $215 million International Center for Automotive Research (CU-ICAR) in 2003.

“The new alliance represents an unprecedented industry/academia platform for advanced vehicle technology and performance aftermarket education program development, notably forged in the midst of one of the automotive industry’s most challenging periods in history,” Cozzie said. “The automotive original-equipment and aftermarket industries are undergoing serious transformations and will continue to evolve in the coming years. The Clemson relationship can benefit SEMA-member companies by providing vehicle technology integration, development and support to help members leverage new business opportunities.”

According to Chris Przirembel, Clemson University’s vice president for research and economic development, the partnership represents “…an extraordinary opportunity for Clemson, as a major university committed to becoming one of the world’s leading automotive and motorsports research and education centers, to join with SEMA and its powerful industry membership base in a shared mission to help shape the future of the automotive performance aftermarket industry.”

As part of the agreement, Clemson University’s Campbell Graduate Engineering Center on the 250-acre CU-ICAR campus—located midway between Atlanta and Charlotte along I-85 in Greenville, South Carolina—is positioned to serve as a systems integration and testing center for SEMA and its 7,500 members.

SEMA President and CEO Chris Kersting said that the Clemson-SEMA relationship supports SEMA’s vehicle technology strategic goals for identifying industry needs and developing effective solutions to assist members with complex vehicle technology challenges and opportunities.

“In the midst of these difficult times, we hope to collaboratively develop a clear pathway for the multi-billion automotive aftermarket industry and SEMA-member companies,” Kersting said.

Clemson University is a nationally ranked science and technology-oriented public research university known for its emphasis on collaboration, focus and a culture that encourages faculty and students to embrace bold ideas. For more information, visit Clemson's research homepage.

 

Powersports 20 Group to Meet at 2009 SEMA Show

 SEMA NEWS-OCTOBER 2009-INDUSTRY NEWS
The 2009 SEMA Show will be the site of Gart Sutton’s early November 20 Group meeting. Well-known in the powersports, marine and recreational vehicle industries, Sutton operates 23 powersports 20 Groups nationwide, helping dealers boost sales, profits and operational efficiency through his educational and consulting firm, Gart Sutton & Associates.
In addition to the two-day meeting during the Show, Sutton and attending dealers will walk the Show floor checking out exhibitor products.

“I’m excited about attending this year’s Show,” Sutton said. “Given the SEMA Show’s existing powersports buyer interests and exhibitor offerings, it only makes sense to have a dedicated powersports section. Giving powersports a higher profile at the SEMA Show will also help satisfy the industry need for a West Coast powersports trade show.”

The SEMA Show is a trade-only event open to qualified industry professionals. For more information on registration or exhibit space, visit the SEMA Show website.


 

Fast Facts

Meyer Distributing Inc. opened a new stocking facility in Denver, Colorado. Marking the first step of Meyer’s planned westward expansion, the new warehouse will hold one of the largest inventories of truck and SUV accessories in the region for same-day shipment, next-day route truck delivery and warehouse pick-up. Meyer Distributing Inc., Jasper, IN; 800/639-3787.   Hankook Tire America Corp. named Todd Hershberger senior vice president of sales and marketing for the United States. In the newly created position, Hershberger is responsible for directing the company’s replacement-tire sales and marketing efforts, which include directing the company’s field sales organization, corporate account managers and brand activities. Hankook Tire America Corp., Wayne, NJ; 800/426-5665.   SEMA NEWS-OCTOBER 2009-INDUSTRY NEWS

Bed Wood and Parts retained bonspeedMedia to assist with its brand position, marketing and corporate image in the automotive aftermarket. bonspeedMedia is known for its specialized branding, event and product marketing in the automotive, luxury and motorsports markets. Bed Wood and Parts, Hopkinsville, KY; 270/424-3000.

TruXedo introduced a new dealer website at www.truxedo.com. Dealers now have access to company news, technical information and downloadable images and flyers as well as the ability to order marketing materials and replacement parts online. TruXedo, Yankton, SD; 877/878-9336.

Eastern Catalytic named Michael Dougherty national sales manager. He will be responsible for developing new sales accounts and account management activities. Before joining Eastern Catalytic, Dougherty worked for the Ford Motor Co. as its Philadelphia regional accessories sales manager. Eastern Catalytic, Langhorne, PA; 215/702-3600.

 
  

Mitchell 1 named Mark T. Kennedy of Westminster, Maryland, the 2009 automotive technology outstanding student. The company presented Kennedy with a check for $2,500 and a recognition certificate during an awards ceremony. Kennedy graduated from the Carroll County Career & Technology Center in Westminster, and he plans to further his educational goals at the Community College of Baltimore County in the General Motors automotive technology program. Mitchell 1 also named Mike Godson (pictured) 2009 educator of the year during the North American Council of Automotive Teachers (NACAT) Conference held recently at Central Piedmont Community College in Charlotte, North Carolina. Mitchell 1, Poway, CA; 858/391-5000.  

 SEMA NEWS-OCTOBER 2009-INDUSTRY NEWS

Permatex named Diane Nesprido (left) senior product manager and promoted Lauren Mencarini (right) to creative director. Nesprido, who has been with Permatex since 2003, is responsible for the company’s product management and marketing departments, oversees No Touch appearance products, Spray Nine Cleaners and the Permatex Silicone Gasketing and Adhesive and Sealants lines. She is in charge of overall marketing communications, including trade shows and new product introductions. Mencarini has more than 20 years of experience in in-house marketing communications and worked in Permatex’s creative department for the past 10 years.  SEMA NEWS-OCTOBER 2009-FAST FACTS SEMA NEWS-OCTOBER 2009-FAST FACTS 

The Busted Knuckle Garage, a brand of Almost There! Inc., will sponsor Kevin Parker of Parker Motorsports, the 2007 rookie of the year in late-model stocks. The Busted Knuckle Garage, Prescott, AZ; 928/708-0897.

Perris Auto Speedway promoter Don Kazarian recently addressed a rumor about the track being turned into an off-road, racing-only facility in 2010. Stated Kazarian: “Not sure who started the rumor or why, but let me assure everybody, it is absolutely not true. Like they are today, sprint cars, stock cars, motorcycles and off-road racing are all part of the future at Perris Auto Speedway."

Crane Cams has reopened under the new ownership of S&S Cycle. With manufacturing and sales operations of its ignition and motorcycle lines up and running, the company is newly housed in a facility at 1640 Mason Ave. in Daytona Beach. S&S Cycle acquired Crane’s intellectual properties, patents, trademarks, camshaft masters, inventory and some equipment in April 2009. Crane Cams, Daytona Beach, FL; 866/388-5120.

  Bossco International hired Jeremy Janke as operations manager. Janke’s background includes working with factories in China and facilitating product importing and exporting to major retailers around the world. SEMA NEWS-OCTOBER 2009-FAST FACTS 

Toyo Tire (USA) Corp.’s website, www.toyotires.com, won best in class in the consumer goods category of the 2009 Interactive Media Awards. The awards are presented annually by the Interactive Media Council Inc., a non-profit organization consisting of web designers, programmers, advertisers and web-related professionals. Toyo Tire (USA) Corp., Cypress, CA; 714/236-2080.

To help employers find the right talent in the least amount of time while keeping expenses in check, WyoTech has launched Corporate-Connect. The virtual recruiting tool is an online hub that allows employers to post free job campaigns, interview applicants online and build their brands with targeted users. Learn more about Corporate-Connect by contacting Helene DeAlleaume at WyoTech-Long Beach at 562/624-5879. WyoTech, Laramie, WY; 307/742-3776.

“Autoworld Radio”—a live, three-hour talk show on Sundays from 5:00 to 8:00 p.m. on The National Radio Network—has expanded its reach through the Genesis Communication Network (GCN). The show is now available through GCN online, and listeners have access to on-demand play, archives of all programs and the availability of a free “AutoWorld” podcast. Hosted by Bob Long for 17 years, “AutoWorld” is devoted to America’s love affair with the automobile and reaches a combined audience of more than 1.4 million avid listeners each week.

  CADNA Automotive Inc.’s founder and chairman of the board, David Rognlien, has reached an agreement with Devin Hart, the company’s president and CEO, for Hart to acquire a significant ownership stake in the company. Specific terms of the buy-sell agreement were not disclosed. CADNA Automotive is an automotive aftermarket supplier and licensee of well-known premium brands Prestone, Autolite, Fram and proprietary brand Armor Mark.  SEMA NEWS-OCTOBER 2009-FAST FACTS 
Thu, 10/01/2009 - 16:41

SEMA News - October 2009

ROI at the SEMA Show?

Make Me a Match!

 SEMA NEWS-OCTOBER 2009-CHRIS KERSTING 
The SEMA Show is a reflection of our specialty-equipment industry—an industry fueled by passion, perseverance, and a gut-sense that people who love cars and trucks will always demand outstanding, innovative products. It is a challenging time for our member companies, and you can expect exhibitors will adjust their Show presence wisely. But SEMA members know that eventually the market will turn, and those ready with the best products will reap substantial rewards. Case in point: At press time, we are still two months from the Show and already there are more than 1,500 manufacturers exhibiting and a tremendous list of buyer registrations to match. And matching is what it is all about! 
 
How so? It’s no surprise that exhibitors and Show attendees are asking, “How can I get even more ROI from my investment in the Show this year?” Without a doubt, the common and most important goal of Show participants is to efficiently make connections that will result in increased sales and profits for both. SO, HERE’S THE PART THAT GIVES YOU A NEW TOOL TO MAKE YOUR SEMA SHOW INVESTMENT MORE SUCCESSFUL! SEMA now has available an effective, easy-to-use online tool for buyers and exhibitors to match up in advance of the Show, share information and make the Show connections more likely to bring sales.

Here’s how it works. When exhibitors and buyers register for the Show, they are asked to list products and services that are pertinent to them.

The Matchmaking Tool pairs exhibitors and buyers according to their preferences, then e-mails to each a list of contacts that match their product categories. The buyers and exhibitors are able to contact their matches to arrange appointments long before the SEMA Show even begins. Sound like it could improve results from your SEMA Show investment? The answer is that it will—but you will only get out of it what you put into it. If you have not done so already, start by registering online now. Anyone who is registered can just click on the “Buyers & Exhibitors Connect Matchmaking” starburst on the website home page.

Another impressive addition goes hand-in-glove with the Matchmaking Tool. It’s the new highly interactive SEMA Show Floorplan—an innovative development which is accessible with a mouse click on the “Click Here for Floorplan” starburst on the SEMA Show home page. This tool offers an effective range of options to track down a buyer’s compatible exhibitors. Buyer’s can search by company name, by exhibit hall or by booth number. Once a buyer has selected an exhibitor, the website loads the appropriate SEMA Show floorplan section with the exhibitor’s booth highlighted. This presents an easy planning device to make efficient use of scarce time on the Show floor. Click on the booth, and a pop-up window provides the exhibitor’s contact information. You can then save the listing as a favorite, print it and e-mail it to your colleagues.

SEMA has developed these and other tools for one purpose: to make the 2009 SEMA Show the best, most effective trade show any attendee has ever experienced. To find out more about what will be offered, be sure to read “Define Your Perfect Show: A Preview of the 2009 SEMA Show,” which begins on page 24 of this issue. If you have any questions or need help using these tools, contact Gary Vigil or any of us at the SEMA offices at 909/396-0289.

Thu, 10/01/2009 - 16:41

SEMA News - October 2009

Spy Photos

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


 

Ford C-Max

When it Hits: The new C-Max is scheduled to make an official debut at next year’s Paris Motor Show. U.S. production is expected to start near the end of 2011 at Ford’s Michigan Assembly plant in Wayne, Michigan.

What Priddy Says: The C-Max will be bigger than its show-car alter ego, the Iosis Max, but also a lot less exciting, and should offer a few engine options, including the recently announced 2.0L Ecoboost. Priddy also points out that sliding doors will likely make it into production, evidenced by the slider rail above the fuel-filler cap.

 
 SEMA NEWS-OCTOBER 2009-SPY PHOTOS-FORD C-MAX 

Mercedes-Benz SLS

SEMA NEWS-OCTOBER 2009-SPY PHOTOS           SEMA NEWS-OCTOBER 2009-SPY PHOTOS 
 

When it Hits: The SLS won’t be launched for nearly two years.

          What Priddy Says: Priddy’s photo network caught up with the convertible version of Mercedes-Benz’s SLS supercar. Unlike the upcoming coupe with its iconic gullwing doors, the convertible will have a more traditional entry as well as an SLR-like powered soft-top.  


Ferrari Bella

 SEMA NEWS-OCTOBER 2009-SPY PHOTOS         SEMA NEWS-OCTOBER 2009-SPY PHOTOS 
When it Hits: The Ferrari Bella is expected to debut at the Frankfurt Motor Show in September          

What Priddy Says: Ferrari has confirmed that the replacement for its F430 will be dubbed the 458 Italia. The 4.5L V8-powered prancer is reported to have the highest specific power output of any road car in the world at 127 hp per liter. Doing the math, that’s a hair over 570 hp at a screaming 9,000 rpm.

 


Audi R8 V10

SEMA NEWS-OCTOBER 2009-SPY PHOTOS     SEMA NEWS-OCTOBER 2009-SPY PHOTOS 

When it Hits: It will go on sale in Germany in the second quarter of 2009. There is no information at this time regarding a U.S. launch date.

 
    

What Priddy Says: Decked out in full production trim, including the V10 badges, the Audi R8 5.2L V10 convertible is probably the best look we’ll get at the four-ringed halo car until the expected Frankfurt auto show debut. The latest rumors suggest that the V10 powertrain may be the only one offered in the droptop, Priddy adds. 

 

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

Thu, 10/01/2009 - 16:41

SEMA News - October 2009

By The SEMA News Bureau


Each year, thousands of media attend the SEMA Show, resulting in added exposure for the exhibitors’ products and companies. Based on early media registration numbers for the 2009 Show, this year will be no exception. Media representatives from trade and consumer publications will be in attendance.

Notable television shows and news stations will also be there. Exhibitors are encouraged to begin developing and refining their message points now, as the chances of being featured in a magazine are pretty high. Just take a look at some of the coverage from last year.

Last year’s SEMA Show coverage lasted long after the Covention Center closed its doors. In fact, pictured above is just a sample of the numerous articles received by the SEMA News Bureau—titles include: Aftermarket Business, Automotive News, Diesel World, DUB, Four Wheeler, Hemmings Classic Car, Parts & People and Performance Business. Given the potential for media coverage at the 2009 SEMA Show, now is the time to get every element of your promotional campaigns dialed in. Get approval from your organization’s stakeholders for each element including press quality photos, broadcast quality videos, illustrations, campaign themes, talking points and staff schedules. With these items in hand, companies can accurately define their perfect Show.  

 SEMA NEWS-OCTOBER 2009-REQUIRED READING

 

 

 

 

Thu, 10/01/2009 - 16:41

SEMA News - October 2009

Vice President of Councils & Membership

SEMA News: Can you briefly explain your role and the role of your department at SEMA?

Nathan Ridnouer: As the vice president of councils and membership, I have the enviable job of working closely with the  association’s core membership—our councils and networks—and determining the strategic direction of the organization in terms of benefits provided to members.

 SEMA NEWS-OCTOBER 2009-INSIDE SEMA 
 Nathan Ridnouer, Vice President of Councils and Membership
  

SN: What are some of the challenges and opportunities that the association faces in terms of membership?

NR: Keeping member benefits in line with member needs. We must continue to strive to better understand our members’ needs and, in some cases, be out ahead of them in terms of what they need to help their businesses grow and prosper. In these days when companies are experiencing economic challenges, many are finding it harder to dedicate their time to organizations such as SEMA, so the association will have to change the way it delivers benefits.

Our newly redesigned website, is a great example of how products and services are being made available to our membership right at their fingertips. Members can download webinars for free instead of having to only attend the live event. Members can communicate with each other via our social networking platform built into the site or use one of our new group discussions to inquire about an innovative technology or solution for their businesses.

SN: How are the councils assisting their members in these challenging economic times?

NR: Our councils are producing innovative programs each day. Let’s take, for example, the third annual SEMA Internet Symposium that was held in Pasadena in early August as part of the association’s Leadership Days program. The more than 100 individuals who participated in this event, which was sponsored and hosted by the Street Performance Council (SPC), walked away with some of the best nuggets of information to take back to their companies and improve the way they use the Internet to enhance their businesses. They’ll not want to miss the 2010 event, where they’ll see an expanded lineup of speakers and topics.

SEMA also has a mentoring program. Thanks to the ladies of the SEMA Businesswomen’s Network (SBN), the SEMA Mentoring Program pairs our young leaders with some of the greatest minds and innovators present in today’s specialty-equipment market. In an effort to expand the program, SBN will be working with the Young Executives Network to offer mentoring to the students who will be taking part in the upcoming SEMA Show. This is one of the single best efforts made by the association to bridge the gap between a student’s transition from education to his or her professional career.

There are so many other things that our councils do—events such as our Motorsports Parts Manufacturers Media Trade Conference held each January, the Manufacturers Rep conference held during the PWA Conference each September, and the Hot Rod Industry Alliance’s Education Day at the Hot Rod & Restoration Show during the Spring. Even campaigns such as “Take a Friend to a Race” or “Take a Kid to a Car Show” demonstrate how the councils are doing their part in giving back to the businesses that support our industry.

If any of the above sounds appealing, members should check out the council efforts online or call our council staff or me to discuss how you can get engaged in SEMA volunteering through our council efforts. This truly is an exciting time!

SN: Looking forward to the 2009 SEMA Show, what activities or programs do the councils have planned?

NR: Receptions, receptions and more receptions. Based on those five words, our readers might get the impression that we simply have parties on our minds. Sure, it’s the specialty-equipment market, so we do; however, we also know how to mix business and play.

Our receptions are some of the best-kept secrets at the annual SEMA Show. During these events, our councils and networks honor the industry’s top leaders and provide the absolute best networking opportunities during Industry Week in Las Vegas. It’s where old friendships are rekindled, new friendships are made and business partnerships are cultivated. Although more than 100,000 individuals attend the annual Show, fewer than 2% have the unique opportunity to attend one of these events. Everyone should strive to be there this year.

SN: What would you say to someone who is considering membership in SEMA?

NR: Did I mention that I get to work in one of the most exciting, vibrant industries—the automotive specialty-equipment market? As a relatively new SEMA staffer (just one-and-a-half years), I’m quickly learning that those individuals who make up our membership know how lucky they are to be in this industry. As a matter of fact, many have told me that they would still be in this industry—somehow, some way—even if they worked in healthcare, agriculture or another industry unrelated to the automotive specialty-equipment market.

Long story short, people join trade associations to be around and learn from individuals who have similar interests and needs. SEMA is no different, except that we believe we have a unique offering here. In addition to world-class benefits and volunteer engagement, we have the greatest collection of industry leaders and automotive enthusiasts in one place. Not so strangely, those individuals in the healthcare and agriculture industries are car nuts, too, and we often hear from them asking, “How can I join SEMA?”

Thu, 10/01/2009 - 16:41

SEMA News - October 2009

By Linda Spencer

New European Regulations Point to Sales Opportunities Abroad

Selling product to a half billion citizens in 27 countries may have become a little easier as of May 2009 with the implementation by the European Parliament and the European Council of new, beefed-up regulations requiring member states to allow the sale and use of specialty-equipment products—and other manufactured goods—that are legally sold in one member state to also be sold within the borders of the others.

  
  SEMA NEWS-OCTOBER 2009-INTERNATIONAL
  

EC No 764/2008, as it is officially called, 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.

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, bull bars, but the vast majority of optical and performance-enhancing products fall under the purview of this new regulation. Currently the sale of vehicle-modification products are often subject to quite divergent national laws and regulations.

European officials acknowledged in the passing of the recent amendments that companies routinely face unjustified barriers in exporting their products from one country to another. For example, if a U.S. company sells its products to a distributor in the UK or the Netherlands and the products conform to local law, the distributor should in theory also be able to sell the same products in Germany under the principle of mutual recognition. This is often not the case.

The new regulations are designed to combat the common practice of government officials banning or limiting the use of a product long sold in another European country without any problems through the imposition of technical regulations. 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.”

Member countries can apply for a case-by-case exemption in order to continue to require manufacturers to meet additional requirements or refrain from selling if they can prove that the product causes legitimate safety concerns. However, the burden of proof regarding the products’ safety risks shifts from businesses to the government. Moreover, a member state bears the burden of proof that the stated aim cannot be achieved by any other means.

In an important test case, a UK carbon wheel company, DYMAG, which has numerous customers in the Netherlands and the UK, 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.

The regulation is also designed to increase transparency regarding the free flow of goods between countries. Under the new action, member countries are required to set up points of contact from which firms can obtain, free of charge, information concerning their national technical rules and the application of the principle of mutual recognition regarding their products. The new regulation also sets out a procedure for firms to appeal a ruling by a member country.

Various differences between countries make it difficult for companies to market the same product in different member states or, at a minimum, lead to higher product development costs. These differences may be rooted in culture, language and the laws regulating the industry. While the former differences are likely to remain for the foreseeable future, the new regulations might help with the later as member countries are warned to remove unjustified obstacles to cross-border trade. The European Commission has posted information on the regulations. Contact Linda Spencer for more information.