Tue, 08/04/2009 - 14:35

SEMA News - August 2009

Agri-Cover (ACI)
Autolock Electric Roll Tarp

Agri-Cover announces the release of the all-new Autolock electric tarp system. AutoLock’s exclusive dual-drive system consists of a high-strength Kevlar driveline and 3-inch aluminum roll tube that work together to provide a powerful front and rear drive system.

Agri-Cover (ACI)
800/233-4655

 

SEMA NEWS-AUGUST 2009-NEW PRODUCTS 
  
Applied Chemical Specialties
HyperKühl SuperCoolant

Applied Chemical Specialties introduces HyperKühl SuperCoolant, a unique new coolant additive that it claims can reduce engine-operating temperatures by up to 20 degrees Fahrenheit. It also provides 100% corrosion and electrolysis protection for all metals in a cooling system—particularly high-dollar, sensitive aluminum radiators. SuperCoolant was awarded a 2008 Global Media Award for being one of this year’s best new products.

Applied Chemical Specialties
847/477-9262

SEMA NEWS-AUGUST 2009-NEW PRODUCTS 
  


Air Flow Research (AFR)
Small-Block Ford Head

AFR is proud to introduce a new version of its small-block Ford head with 72cc combustion chambers for large-cubic-inch or forced-induction applications. In addition, all AFR small-block Ford heads now come with lightweight 8mm bead-lock valves and lightweight Pacaloy valve springs.

Air Flow Research (AFR)
877/235-4466

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS 


Ansani Designs
Toyota Tundra Fiberglass Light Pod Bumper Insert

Ansani Designs now offers a fiberglass front bumper insert for 2007-current Toyota Tundras. This insert is a direct replacement for the factory urethane section. The Ansani Designs piece includes three molded light pods for 8-inch KC Rally 800 auxiliary lights.

Ansani Designs
480/323-0504

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS 

TruXedo
Products Now Available for the ’04–’06 Jeep Wrangler Rubicon

TruXedo is pleased to announce the shipment of the Lo Pro QT and Lo Pro QT Harley-Davidson Edition tonneau covers for the ’04–’06 Jeep Wrangler Rubicon. The TruXedo custom application is specially designed for Jeeps with a half-cab conversion.

TruXedo
877/878-9336

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS
  

BedSlide (A Brand of IFW)
BedSlide

According to BedSlide, its product is the only accessory that turns the largest cargo space—the back of the pickup truck—into easily accessed and organized compartments. With just the turn of the latch and a pull on the handle, the BedSlide rolls all of the cargo out.

BedSlide (A Brand of IFW)
888/807-0099

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS
  

Slime
Slime Safety Spair

A flat tire, dead battery or minor medical emergency is no longer a problem with the Safety Spair, a 36-piece roadside essentials kit that includes jumper cables, a first-aid kit, triangle reflectors, tire-pressure gauge and Slime tire sealant packed in a cordura nylon case. A one-touch button on the Safety Spair injects sealant into the tire, seals the puncture and reinflates the tire in as little as seven minutes, according to the company

Slime
888/45-SLIME

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS 
  

Cernium Corporation
Mobile Video Intelligence Surveillance System

Cernium Corporation introduces what it claims is the world’s first mobile video intelligence surveillance system that notifies users of events via their mobile device, e-mail or personal Archerfish portal. Access live video from Archerfish SmartPortal and view from any web-enabled PC, PDA or mobile device.

Cernium Corporation
703/483-3367

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS 
  

Daystar
Dash Panels

The best-selling Daystar dash and switch panels for the Jeep Wrangler TJ, JK and Hummer H3 are now available in camouflage. They feature a main tray that is suitable for mounting a GPS unit, or they can be used as convenient storage for cell phones, sunglasses, MP3 players and other small items.

Daystar
800/595-7659

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS
  

CelCat International LTD
Maxx Fuel

According to the manufacturer, Maxx Fuel’s simple design allows for easy installation on most engines. The device is mounted near the engine and connected to the engine’s air intake with a rubber hose. Once installed, the Maxx Fuel system delivers small amounts of cerium oxide via the air induction system of the engine into the combustion chamber. The cerium oxide acts as a catalyst inside the combustion chamber, enhancing burn efficiency. The net result is a cleaner, better-performing engine.

CelCat International LTD
618/531-8054

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS 
  

Hunter Engineering Company
TPMSpecs Database

According to the company, Hunter’s TPMSpecs database takes the frustration out of servicing TPMS wheels by organizing and condensing more than 110 unique OE TPMS procedures into an easy-to-understand, tech-friendly format. TPMSpecs provides the sensor type, tools needed, service procedures and any special instructions based on the specific vehicle being serviced.

Hunter Engineering Company
800/448-6848

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS 

Kicker
Performance Audio Upgrades for
Mustangs

Kicker Performance Audio system upgrades are now available for purchase for most Ford Mustang models exclusively through Shelby Performance Parts dealers nationwide. According to the company, these true plug-and-play upgrades are significantly louder and clearer than stock Mustang systems, dramatically improving low-, mid- and high-frequency response. The subwoofer upgrade is only half the size of a Mustang’s stock sub, reducing subwoofer weight by 60% while remarkably improving audio output. The sub enclosure also vastly increases cargo space by fitting snugly against the inner trunk wall.

Kicker
800/256-5425

SEMA NEWS-AUGUST 2009-NEW PRODUCTS 

Superchips
Market Release of ’07–’09 GM 2.0L Turbo Coverage

According to Superchips, the all-new GM Gas Flashpaq (PN 2865) is the first programmer available for the 2.0L turbo, delivering Superchips tuning for improved drivability and performance. Coverage includes the ’08–’09 Cobalt SS, ’07–’09 Solstice GXP, ’07–’09 Sky Redline and ’08–’09 HHR SS.

Superchips
888/227-2447

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS
  

Toyo Tires
M647 Premium Drive Tire

Toyo Tires introduces the M647 premium drive tire, designed for local and long-haul highway applications. The newest product in an extensive line of tires for commercial trucks. The M647 has a deep, 30/32-inch tread that provides improved wear and long service life.

Toyo Tires
West Coast: 800/442-8696
East Coast: 888/444-8696

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS 
  

OK Spark USA
Sparkplug Sensor

OK Spark USA proudly introduces its revolutionary OK Spark brand sparkplug sensor. This tool detects both voltage and spark without having to remove the sparkplug. Winner of three SEMA Global Media awards, this sturdy handheld sparkplug and maintenance diagnostic tool “sees” inside the cylinder head to look for an electrical arc, verifying that the plug is igniting while under compression.

OK Spark USA
866/OK-SPARK

SEMA NEWS-AUGUST 2009-NEW PRODUCTS 
  

Rostra Precision Controls
Custom-Designed Hands-Free Car Kits Featuring Bluetooth

The ConVerse car kit allows calls to route through the vehicle’s existing stereo system, providing the driver with the highest quality sound. Full duplex digital signal processing allows both parties to converse simultaneously, and the system will easily pair up to 10 phones.

Rostra Precision Controls Inc.
800/782-3379

 
SEMA NEWS-AUGUST 2009-NEW PRODUCTS 
Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Joe Dysart

Holding Out for Windows 7: A Wise Move?

SEMA NEWS-AUGUST 2009-INTERNET 

Microsoft has posted an informational video on the forthcoming Windows 7 on its website. 

While most businesses have soundly rejected Vista and are tenaciously hanging on to Windows XP until Microsoft comes up with a better operating system (OS), the day of reckoning approaches.

The reason: Microsoft drove another bloody stake into XP on April 14, 2009, when it officially ended “mainstream support” for the OS. This means that your warranty on XP is void. It also means that if you want support on XP other than basic patches or basic security upgrades, you’ll have to pay Microsoft under a separate, “extended support” agreement.

Got an unusual problem you’re having with XP that you need resolved? That’ll cost you. Need to add a new device to your system that isn’t currently supported by XP? You’ll have to pony up for that, too. Even worse, Microsoft may return the bad news that XP will never support a new device or new software you’ve recently added.

It’s a nasty jolt that has many businesses once again re-evaluating their commitment to XP and wondering if they really can skip Vista altogether and simply wait for Microsoft’s next upgrade, Windows 7, which is due out in the first quarter of 2010.

Not surprisingly, the case for hanging tough with XP until you see the whites of their eyes is still very strong. Despite numerous attempts by Microsoft to convince businesses otherwise, Vista is still very much a flop. Initial reports that Vista was slower than XP, featured draconian, productivity-sapping security provisions and would not work with a raft of hardware and software have stuck. That same image continues to haunt the OS.

Even today, less than 10% of all businesses in North America and Europe use Vista, and 71% of those businesses still use and swear by XP, according to a January 2009 report from Benjamin Gray, an IT analyst with market research firm Forrester.

Indeed, business support for XP has been so strong that the sentiment has forced Microsoft to grant some major computer makers the right to continue to sell new XP PCs right alongside machines sporting Vista. Those same computer makers have also snagged the ability to woo buyers leery of Vista to “downgrade” to XP on any Vista machine they buy. Talk about a public relations nightmare.

Moreover, “hold-out” mentality is further being buttressed by the numerous, positive oohs and ahhs surfacing about the first beta version of Windows 7, which was released earlier this year. The evaluation by Matt Hartley, a reviewer for Lockergnome, a highly respected industry insider publication, is typical.

“After spending a few days with the Windows 7 beta, I will admit that overall, it proved to be vastly better than I expected on a few important fronts,” Hartley said. “The biggest front proved to be the speed front. From installation to the first boot, the OS release did really well.”

SEMA NEWS-AUGUST 2009-INTERNET 

Vista never lived down its image as a cumbersome, resource-hogging, often incompatible operating system. 

Businesses hanging tough for Windows 7 also have the reassurance that Windows 7 is actually an incremental upgrade of Vista or, as some might say, “Vista done right.” Microsoft has had a number of years to work out the flaws in Vista, and apparently it’s showing with the first iteration of Windows 7.

“More than five times as many users will run the beta version for Windows 7 as ran the beta for Windows 95,” said Michael A. Silver, an IT analyst with market research firm Gartner. “More importantly, the instrumentation by which Microsoft will get data back on performance and software features did not exist when Windows 95 was in beta and is significantly improved compared with what was available with Windows 2000. This enables Microsoft not only to receive more data, but also to characterize and classify the problems and work with vendors responsible for a large number of the problems to fix them before the product ships.”

Another plus: Microsoft plans to offer XP stalwarts an upgrade discount once Windows 7 hits the streets. Under the plan, XP users will still need to do a clean, complete install of Windows 7 rather than popping in a disk and letting XP do an auto-migrate to Windows 7. But even so, XP users know that they can save real money if they stay with what they have and upgrade only when Windows 7 becomes available.

Of course, there is some real risk involved for businesses that want to stick with XP until the bitter end. While basic security patches for XP will still be available, other more esoteric security threats may be less of a priority at a company that is more interested in selling Vista and Windows 7 than in supporting an OS that it considers passé. Essentially, IT managers who opt for tried-and-true XP won’t look like wunderkinds if a security breach brings down the entire company computer system and has no known solution.

Given that Windows 7 is really an incremental upgrade of Vista, there’s also a lot to be said for migrating away from XP to Vista, working out the kinks and being ready to go to Windows 7 when it hits the market. The reality is that, like it or not, companies planning to stick with Microsoft are going to be running on a Vista-like system during the next couple of years one way or another. They might as well get used to it.

Moreover, migrating to Vista in preparation for Windows 7 will also enable many companies to hold off on installing Microsoft’s first attempt at Windows 7 and instead wait for the first service pack for the OS to be released. The conventional wisdom with this approach is that businesses will be able to operate with a seasoned copy of Vista, allow pioneers to go through the inevitable growing pains anticipated with the initial release of Windows 7, and then be ready to migrate with a much more stable and refined Windows 7, SP1.

Deciding to let go of XP also makes sense considering that the OS would be already dead if Microsoft had its druthers. It’s hard to go up against a giant company, year after year, if that company really prefers that you part with more coin to stay in its good graces. Granted, XP users worldwide have been able to tame the Goliath from Redmond so far, given that reviews for Vista have been so uniformly negative. But this time around, initial reviews of Windows 7 are heavily in Microsoft’s favor. It’ll be much tougher to say “no thanks” to Microsoft if it rolls out a new, gleaming Windows 7 that has the same, positive reviews.

Bottom line: Business users who are perfectly happy with XP, do not plan on doing a major computer hardware upgrade during the next few years and are willing to assume a prudent risk when it comes to a security vulnerability that may or may not materialize will probably be staying with XP until Windows 7 delivers on its promise.

But businesses that are planning major computer hardware upgrades soon and would rather prepare for the inevitable move to Windows 7 than be last to the party will want to think long and hard about making an initial migration to Vista or being among the pioneering firms that adopt Windows 7 the moment it drops.

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: www.joedysart.com

 

Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Joe Dysart

Holding Out for Windows 7: A Wise Move?

SEMA NEWS-AUGUST 2009-INTERNET 

Microsoft has posted an informational video on the forthcoming Windows 7 on its website. 

While most businesses have soundly rejected Vista and are tenaciously hanging on to Windows XP until Microsoft comes up with a better operating system (OS), the day of reckoning approaches.

The reason: Microsoft drove another bloody stake into XP on April 14, 2009, when it officially ended “mainstream support” for the OS. This means that your warranty on XP is void. It also means that if you want support on XP other than basic patches or basic security upgrades, you’ll have to pay Microsoft under a separate, “extended support” agreement.

Got an unusual problem you’re having with XP that you need resolved? That’ll cost you. Need to add a new device to your system that isn’t currently supported by XP? You’ll have to pony up for that, too. Even worse, Microsoft may return the bad news that XP will never support a new device or new software you’ve recently added.

It’s a nasty jolt that has many businesses once again re-evaluating their commitment to XP and wondering if they really can skip Vista altogether and simply wait for Microsoft’s next upgrade, Windows 7, which is due out in the first quarter of 2010.

Not surprisingly, the case for hanging tough with XP until you see the whites of their eyes is still very strong. Despite numerous attempts by Microsoft to convince businesses otherwise, Vista is still very much a flop. Initial reports that Vista was slower than XP, featured draconian, productivity-sapping security provisions and would not work with a raft of hardware and software have stuck. That same image continues to haunt the OS.

Even today, less than 10% of all businesses in North America and Europe use Vista, and 71% of those businesses still use and swear by XP, according to a January 2009 report from Benjamin Gray, an IT analyst with market research firm Forrester.

Indeed, business support for XP has been so strong that the sentiment has forced Microsoft to grant some major computer makers the right to continue to sell new XP PCs right alongside machines sporting Vista. Those same computer makers have also snagged the ability to woo buyers leery of Vista to “downgrade” to XP on any Vista machine they buy. Talk about a public relations nightmare.

Moreover, “hold-out” mentality is further being buttressed by the numerous, positive oohs and ahhs surfacing about the first beta version of Windows 7, which was released earlier this year. The evaluation by Matt Hartley, a reviewer for Lockergnome, a highly respected industry insider publication, is typical.

“After spending a few days with the Windows 7 beta, I will admit that overall, it proved to be vastly better than I expected on a few important fronts,” Hartley said. “The biggest front proved to be the speed front. From installation to the first boot, the OS release did really well.”

SEMA NEWS-AUGUST 2009-INTERNET 

Vista never lived down its image as a cumbersome, resource-hogging, often incompatible operating system. 

Businesses hanging tough for Windows 7 also have the reassurance that Windows 7 is actually an incremental upgrade of Vista or, as some might say, “Vista done right.” Microsoft has had a number of years to work out the flaws in Vista, and apparently it’s showing with the first iteration of Windows 7.

“More than five times as many users will run the beta version for Windows 7 as ran the beta for Windows 95,” said Michael A. Silver, an IT analyst with market research firm Gartner. “More importantly, the instrumentation by which Microsoft will get data back on performance and software features did not exist when Windows 95 was in beta and is significantly improved compared with what was available with Windows 2000. This enables Microsoft not only to receive more data, but also to characterize and classify the problems and work with vendors responsible for a large number of the problems to fix them before the product ships.”

Another plus: Microsoft plans to offer XP stalwarts an upgrade discount once Windows 7 hits the streets. Under the plan, XP users will still need to do a clean, complete install of Windows 7 rather than popping in a disk and letting XP do an auto-migrate to Windows 7. But even so, XP users know that they can save real money if they stay with what they have and upgrade only when Windows 7 becomes available.

Of course, there is some real risk involved for businesses that want to stick with XP until the bitter end. While basic security patches for XP will still be available, other more esoteric security threats may be less of a priority at a company that is more interested in selling Vista and Windows 7 than in supporting an OS that it considers passé. Essentially, IT managers who opt for tried-and-true XP won’t look like wunderkinds if a security breach brings down the entire company computer system and has no known solution.

Given that Windows 7 is really an incremental upgrade of Vista, there’s also a lot to be said for migrating away from XP to Vista, working out the kinks and being ready to go to Windows 7 when it hits the market. The reality is that, like it or not, companies planning to stick with Microsoft are going to be running on a Vista-like system during the next couple of years one way or another. They might as well get used to it.

Moreover, migrating to Vista in preparation for Windows 7 will also enable many companies to hold off on installing Microsoft’s first attempt at Windows 7 and instead wait for the first service pack for the OS to be released. The conventional wisdom with this approach is that businesses will be able to operate with a seasoned copy of Vista, allow pioneers to go through the inevitable growing pains anticipated with the initial release of Windows 7, and then be ready to migrate with a much more stable and refined Windows 7, SP1.

Deciding to let go of XP also makes sense considering that the OS would be already dead if Microsoft had its druthers. It’s hard to go up against a giant company, year after year, if that company really prefers that you part with more coin to stay in its good graces. Granted, XP users worldwide have been able to tame the Goliath from Redmond so far, given that reviews for Vista have been so uniformly negative. But this time around, initial reviews of Windows 7 are heavily in Microsoft’s favor. It’ll be much tougher to say “no thanks” to Microsoft if it rolls out a new, gleaming Windows 7 that has the same, positive reviews.

Bottom line: Business users who are perfectly happy with XP, do not plan on doing a major computer hardware upgrade during the next few years and are willing to assume a prudent risk when it comes to a security vulnerability that may or may not materialize will probably be staying with XP until Windows 7 delivers on its promise.

But businesses that are planning major computer hardware upgrades soon and would rather prepare for the inevitable move to Windows 7 than be last to the party will want to think long and hard about making an initial migration to Vista or being among the pioneering firms that adopt Windows 7 the moment it drops.

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: www.joedysart.com

 

Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Joe Dysart

Holding Out for Windows 7: A Wise Move?

SEMA NEWS-AUGUST 2009-INTERNET 

Microsoft has posted an informational video on the forthcoming Windows 7 on its website. 

While most businesses have soundly rejected Vista and are tenaciously hanging on to Windows XP until Microsoft comes up with a better operating system (OS), the day of reckoning approaches.

The reason: Microsoft drove another bloody stake into XP on April 14, 2009, when it officially ended “mainstream support” for the OS. This means that your warranty on XP is void. It also means that if you want support on XP other than basic patches or basic security upgrades, you’ll have to pay Microsoft under a separate, “extended support” agreement.

Got an unusual problem you’re having with XP that you need resolved? That’ll cost you. Need to add a new device to your system that isn’t currently supported by XP? You’ll have to pony up for that, too. Even worse, Microsoft may return the bad news that XP will never support a new device or new software you’ve recently added.

It’s a nasty jolt that has many businesses once again re-evaluating their commitment to XP and wondering if they really can skip Vista altogether and simply wait for Microsoft’s next upgrade, Windows 7, which is due out in the first quarter of 2010.

Not surprisingly, the case for hanging tough with XP until you see the whites of their eyes is still very strong. Despite numerous attempts by Microsoft to convince businesses otherwise, Vista is still very much a flop. Initial reports that Vista was slower than XP, featured draconian, productivity-sapping security provisions and would not work with a raft of hardware and software have stuck. That same image continues to haunt the OS.

Even today, less than 10% of all businesses in North America and Europe use Vista, and 71% of those businesses still use and swear by XP, according to a January 2009 report from Benjamin Gray, an IT analyst with market research firm Forrester.

Indeed, business support for XP has been so strong that the sentiment has forced Microsoft to grant some major computer makers the right to continue to sell new XP PCs right alongside machines sporting Vista. Those same computer makers have also snagged the ability to woo buyers leery of Vista to “downgrade” to XP on any Vista machine they buy. Talk about a public relations nightmare.

Moreover, “hold-out” mentality is further being buttressed by the numerous, positive oohs and ahhs surfacing about the first beta version of Windows 7, which was released earlier this year. The evaluation by Matt Hartley, a reviewer for Lockergnome, a highly respected industry insider publication, is typical.

“After spending a few days with the Windows 7 beta, I will admit that overall, it proved to be vastly better than I expected on a few important fronts,” Hartley said. “The biggest front proved to be the speed front. From installation to the first boot, the OS release did really well.”

SEMA NEWS-AUGUST 2009-INTERNET 

Vista never lived down its image as a cumbersome, resource-hogging, often incompatible operating system. 

Businesses hanging tough for Windows 7 also have the reassurance that Windows 7 is actually an incremental upgrade of Vista or, as some might say, “Vista done right.” Microsoft has had a number of years to work out the flaws in Vista, and apparently it’s showing with the first iteration of Windows 7.

“More than five times as many users will run the beta version for Windows 7 as ran the beta for Windows 95,” said Michael A. Silver, an IT analyst with market research firm Gartner. “More importantly, the instrumentation by which Microsoft will get data back on performance and software features did not exist when Windows 95 was in beta and is significantly improved compared with what was available with Windows 2000. This enables Microsoft not only to receive more data, but also to characterize and classify the problems and work with vendors responsible for a large number of the problems to fix them before the product ships.”

Another plus: Microsoft plans to offer XP stalwarts an upgrade discount once Windows 7 hits the streets. Under the plan, XP users will still need to do a clean, complete install of Windows 7 rather than popping in a disk and letting XP do an auto-migrate to Windows 7. But even so, XP users know that they can save real money if they stay with what they have and upgrade only when Windows 7 becomes available.

Of course, there is some real risk involved for businesses that want to stick with XP until the bitter end. While basic security patches for XP will still be available, other more esoteric security threats may be less of a priority at a company that is more interested in selling Vista and Windows 7 than in supporting an OS that it considers passé. Essentially, IT managers who opt for tried-and-true XP won’t look like wunderkinds if a security breach brings down the entire company computer system and has no known solution.

Given that Windows 7 is really an incremental upgrade of Vista, there’s also a lot to be said for migrating away from XP to Vista, working out the kinks and being ready to go to Windows 7 when it hits the market. The reality is that, like it or not, companies planning to stick with Microsoft are going to be running on a Vista-like system during the next couple of years one way or another. They might as well get used to it.

Moreover, migrating to Vista in preparation for Windows 7 will also enable many companies to hold off on installing Microsoft’s first attempt at Windows 7 and instead wait for the first service pack for the OS to be released. The conventional wisdom with this approach is that businesses will be able to operate with a seasoned copy of Vista, allow pioneers to go through the inevitable growing pains anticipated with the initial release of Windows 7, and then be ready to migrate with a much more stable and refined Windows 7, SP1.

Deciding to let go of XP also makes sense considering that the OS would be already dead if Microsoft had its druthers. It’s hard to go up against a giant company, year after year, if that company really prefers that you part with more coin to stay in its good graces. Granted, XP users worldwide have been able to tame the Goliath from Redmond so far, given that reviews for Vista have been so uniformly negative. But this time around, initial reviews of Windows 7 are heavily in Microsoft’s favor. It’ll be much tougher to say “no thanks” to Microsoft if it rolls out a new, gleaming Windows 7 that has the same, positive reviews.

Bottom line: Business users who are perfectly happy with XP, do not plan on doing a major computer hardware upgrade during the next few years and are willing to assume a prudent risk when it comes to a security vulnerability that may or may not materialize will probably be staying with XP until Windows 7 delivers on its promise.

But businesses that are planning major computer hardware upgrades soon and would rather prepare for the inevitable move to Windows 7 than be last to the party will want to think long and hard about making an initial migration to Vista or being among the pioneering firms that adopt Windows 7 the moment it drops.

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: www.joedysart.com

 

Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Joe Dysart

Holding Out for Windows 7: A Wise Move?

SEMA NEWS-AUGUST 2009-INTERNET 

Microsoft has posted an informational video on the forthcoming Windows 7 on its website. 

While most businesses have soundly rejected Vista and are tenaciously hanging on to Windows XP until Microsoft comes up with a better operating system (OS), the day of reckoning approaches.

The reason: Microsoft drove another bloody stake into XP on April 14, 2009, when it officially ended “mainstream support” for the OS. This means that your warranty on XP is void. It also means that if you want support on XP other than basic patches or basic security upgrades, you’ll have to pay Microsoft under a separate, “extended support” agreement.

Got an unusual problem you’re having with XP that you need resolved? That’ll cost you. Need to add a new device to your system that isn’t currently supported by XP? You’ll have to pony up for that, too. Even worse, Microsoft may return the bad news that XP will never support a new device or new software you’ve recently added.

It’s a nasty jolt that has many businesses once again re-evaluating their commitment to XP and wondering if they really can skip Vista altogether and simply wait for Microsoft’s next upgrade, Windows 7, which is due out in the first quarter of 2010.

Not surprisingly, the case for hanging tough with XP until you see the whites of their eyes is still very strong. Despite numerous attempts by Microsoft to convince businesses otherwise, Vista is still very much a flop. Initial reports that Vista was slower than XP, featured draconian, productivity-sapping security provisions and would not work with a raft of hardware and software have stuck. That same image continues to haunt the OS.

Even today, less than 10% of all businesses in North America and Europe use Vista, and 71% of those businesses still use and swear by XP, according to a January 2009 report from Benjamin Gray, an IT analyst with market research firm Forrester.

Indeed, business support for XP has been so strong that the sentiment has forced Microsoft to grant some major computer makers the right to continue to sell new XP PCs right alongside machines sporting Vista. Those same computer makers have also snagged the ability to woo buyers leery of Vista to “downgrade” to XP on any Vista machine they buy. Talk about a public relations nightmare.

Moreover, “hold-out” mentality is further being buttressed by the numerous, positive oohs and ahhs surfacing about the first beta version of Windows 7, which was released earlier this year. The evaluation by Matt Hartley, a reviewer for Lockergnome, a highly respected industry insider publication, is typical.

“After spending a few days with the Windows 7 beta, I will admit that overall, it proved to be vastly better than I expected on a few important fronts,” Hartley said. “The biggest front proved to be the speed front. From installation to the first boot, the OS release did really well.”

SEMA NEWS-AUGUST 2009-INTERNET 

Vista never lived down its image as a cumbersome, resource-hogging, often incompatible operating system. 

Businesses hanging tough for Windows 7 also have the reassurance that Windows 7 is actually an incremental upgrade of Vista or, as some might say, “Vista done right.” Microsoft has had a number of years to work out the flaws in Vista, and apparently it’s showing with the first iteration of Windows 7.

“More than five times as many users will run the beta version for Windows 7 as ran the beta for Windows 95,” said Michael A. Silver, an IT analyst with market research firm Gartner. “More importantly, the instrumentation by which Microsoft will get data back on performance and software features did not exist when Windows 95 was in beta and is significantly improved compared with what was available with Windows 2000. This enables Microsoft not only to receive more data, but also to characterize and classify the problems and work with vendors responsible for a large number of the problems to fix them before the product ships.”

Another plus: Microsoft plans to offer XP stalwarts an upgrade discount once Windows 7 hits the streets. Under the plan, XP users will still need to do a clean, complete install of Windows 7 rather than popping in a disk and letting XP do an auto-migrate to Windows 7. But even so, XP users know that they can save real money if they stay with what they have and upgrade only when Windows 7 becomes available.

Of course, there is some real risk involved for businesses that want to stick with XP until the bitter end. While basic security patches for XP will still be available, other more esoteric security threats may be less of a priority at a company that is more interested in selling Vista and Windows 7 than in supporting an OS that it considers passé. Essentially, IT managers who opt for tried-and-true XP won’t look like wunderkinds if a security breach brings down the entire company computer system and has no known solution.

Given that Windows 7 is really an incremental upgrade of Vista, there’s also a lot to be said for migrating away from XP to Vista, working out the kinks and being ready to go to Windows 7 when it hits the market. The reality is that, like it or not, companies planning to stick with Microsoft are going to be running on a Vista-like system during the next couple of years one way or another. They might as well get used to it.

Moreover, migrating to Vista in preparation for Windows 7 will also enable many companies to hold off on installing Microsoft’s first attempt at Windows 7 and instead wait for the first service pack for the OS to be released. The conventional wisdom with this approach is that businesses will be able to operate with a seasoned copy of Vista, allow pioneers to go through the inevitable growing pains anticipated with the initial release of Windows 7, and then be ready to migrate with a much more stable and refined Windows 7, SP1.

Deciding to let go of XP also makes sense considering that the OS would be already dead if Microsoft had its druthers. It’s hard to go up against a giant company, year after year, if that company really prefers that you part with more coin to stay in its good graces. Granted, XP users worldwide have been able to tame the Goliath from Redmond so far, given that reviews for Vista have been so uniformly negative. But this time around, initial reviews of Windows 7 are heavily in Microsoft’s favor. It’ll be much tougher to say “no thanks” to Microsoft if it rolls out a new, gleaming Windows 7 that has the same, positive reviews.

Bottom line: Business users who are perfectly happy with XP, do not plan on doing a major computer hardware upgrade during the next few years and are willing to assume a prudent risk when it comes to a security vulnerability that may or may not materialize will probably be staying with XP until Windows 7 delivers on its promise.

But businesses that are planning major computer hardware upgrades soon and would rather prepare for the inevitable move to Windows 7 than be last to the party will want to think long and hard about making an initial migration to Vista or being among the pioneering firms that adopt Windows 7 the moment it drops.

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: www.joedysart.com

 

Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Linda Spencer


Gateway to the Middle East

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies. There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for,” said Jim Cozzie, SEMA Board of Directors Immediate Past Chairman. 

More than 50 personnel from SEMA-member companies as well as association executives visited Dubai recently to explore business opportunities. Many of the companies also exhibited at the sixth edition of the Automechanika Middle East Show, held in Dubai on May 31-June 2. A total of 15,431 visitors attended the three-day event.

Of that number, said organizer Epoc Messe Frankfurt GmbH, 46% were international visitors who had converged on Dubai from 114 countries.

“The United Arab Emirates (UAE) and the Gulf region are very important markets for Evosport, as they represent a growing percentage of our business,” said Simon Atik about his retail and wholesale accessory sales company based in Huntington Beach, California. “It’s also a very exciting time, as the potential for the specialized aftermarket is immense, albeit in its infancy stages. The entire Gulf region is exploding with potential buyers, and there is an overwhelming demand for quality products.”

Bob Scheid of Perry, Ohio-based Fidanza Engineering Corp. was also among the visiting SEMA contingent and agreed that the UAE represents a real opportunity.

“We like to believe that Americans love their cars and this hobby more than anything else,” he said. “I really think we have some competition with what I saw. Not only is there passion, but they have the disposable income to spend. The markets are so similar in that they want good quality parts. The market in Dubai is not only the same, but they are willing to pay much more for quality. In the U.S., we love to customize, but there they want to do whatever it takes to make sure that their car is like no other on the road. If you pull up to a light and see two Corvettes, they will almost certainly be built totally differently. Uniqueness is not a goal; it’s mandatory.”

SEMA Immediate Past Chairman Jim Cozzie noted that SEMA traveled to the region to determine the viability of the market and identify the opportunities as well as hurdles regarding entry to the marketplace for member companies.

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

SEMA Board of Directors Immediate Past Chairman Jim Cozzie (left) and SEMA CEO and President Chris Kersting answered questions on car modification regulations at a seminar during Automechanika Middle East. 

“As part of this assessment, SEMA talked with SEMA members about their dealings in the region, with local companies about the market and trends and with government officials—including U.S., UAE and Dubai-based—to discuss the legal environment in which the specialty market operates,” Cozzie said. “More broadly, we spent the week shoring up our understanding of the key factors influencing the market currently and its short- and medium-term potential. Among the factors we investigated were the current and potential market size including population, the number and type of vehicles on the road and disposable income, the car culture and laws and regulations regarding vehicle modification as well as tariff levels and each country’s laws regarding counterfeit products. Those are some of the most important factors in determining an overseas market’s viability for SEMA members.”

The UAE is a federation of seven emirates, including the capital, Abu Dhabi, as well as Dubai. Founded in 1971, this small but wealthy nation has a population of 4.7 million. The UAE borders Saudi Arabia and Oman and serves as the gateway to the other members of the Gulf Cooperation Council (GCC), which includes the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman. A significant percentage of products are shipped to Abu Dhabi or Dubai and then re-shipped to other GCC or middle Eastern countries.

The specialty-equipment market is quite new to the UAE and the region. A real passion for everything modified has spurred the growth of world-class distributors and installers, including Chrome and Carbon, Liberty Motor Sports, TAM, Lap57 and Extreme Performance. Well-known international companies are also setting up shop in the UAE. West Coast Customs has a showroom in Dubai, and Yellow Hat—a Japanese-based accessories chain—has signed an agreement to open five shops in the country. See SEMA's list of UAE distributors and installers.

Size of the Market

There are approximately 8.7 million vehicles in the Gulf region, with about 2.6 million vehicles registered in the UAE. The Dubai market represents about 45% of this total and Abu Dhabi accounts for another 30%. Market analyst Auto Strategies International estimates the number of cars in the road in the other GCC countries at 3.6 million in Saudi Arabia; 1.1 million in Kuwait; 352,000 in Qatar; 243,000 in Bahrain; and 793,000 in Oman.

Vehicle Mix

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Slime was one of 50 SEMA-member companies exhibiting at the Automechanika Middle East Show recently held in Dubai. 

Some quick observations to be noted when driving through Dubai and Abu Dhabi reveal high-end vehicles, lots of SUVs and a great diversity of cars. Said Scheid: “I have traveled a lot. Nowhere have I seen the diversity of vehicles. Ferraris, Porsches, Lambos, Corvettes, EVOs, BMWs, Toyotas—you name it. The laws for importing the cars leave them open to having a diverse mix of vehicles. What a pleasure to just car watch!”

Zlatko Mulabegovic of Top Performance magazine took note of the number of light trucks on the road, commenting that the UAE market is similar to the one in the U.S. but is significantly smaller. It is also heavily influenced by aftermarket trends in the United States, and Mulabegovic estimated that at least 25% of the customized vehicles in the UAE are SUVs or light pickups.

“SUVs dominated alongside foreign compacts like Mitsubishi, Honda and Toyota,” said Mike Robleto of U.S.-based Motor Media.

Mulabegovic identified other top modified vehicles that included the Honda Civic, the Mitsubishi EVO, the Ford Mustang and the Nissan 350Z and Patrol.

Robleto said that one of the highlights of his visit was a trip to Dubai-based TAM Automotive.

“TAM Automotive is an over-the-top impressive tuning shop that modified sport compacts but also a slew of high-end Euros and hot rods like an AC Cobra and a ’60s Corvette Stingray,” he said. “This amazing facility has a four-wheel dyno and maintains two race teams that compete in the local road course championship series. An engine-building room and a bustling crew of mechanics solidified the UAE’s seriousness about aftermarket performance.”

Quality and Brand Awareness

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

The SEMA delegation visited Dubai-based TAM Automotive. The shop houses a state-of-the-art dyno and is currently working on a dizzying array of vehicles, including sport compacts and American hot rods as well as a host of Japanese and high-end European vehicles. 

The UAE is a gateway to the Middle East. Ford, GM and many of the other car manufacturers use the UAE—and Dubai in particular—as their regional headquarters. Specialty-equipment companies are also increasingly looking at the UAE as a launching pad for the region. That type of regional strategy is an important one for Treatment Products, a manufacturer of chemicals, waxes, polishes and other car-care products.

“When business gets more challenging, that is the time to get more aggressive in procuring new customers,” said Jeff Victor of Treatment Products. “Our goal was to sign new distributors in previously untapped markets. Although we do currently sell our products to the major Middle East markets, such as the UAE and Saudi Arabia, there are still many other markets in the region that are clamoring for U.S. products. Markets such as Qatar, Oman, Bahrain and Kuwait are all very receptive to U.S. goods and are good places for U.S. companies to do business.”

Tariff Levels

The UAE has one of the most open economies in the world. Tariff levels are low—up to 5% on manufactured goods—and the liberal use of free-trade zones (which offer 100% foreign ownership and zero taxes throughout the UAE) has further reduced the costs of doing business in the region. The U.S. and UAE governments have begun talks on a tariff-free arrangement between the two countries, and free-trade agreements exist with two other countries in the Gulf region—Bahrain and Oman

Buying Power

With a per-capita income (on a purchasing parity basis) of U.S. $55,000 compared to U.S. $46,000 in the U.S., the UAE offers a significant number of buyers who are in a position to purchase specialty- automotive products—and do. A unique characteristic of the specialty-equipment market in the UAE is its combination of passion and good buying power.

The industry in the UAE started much like it did in the United States. Look at Abdulla Al Zaabi of Extreme Performance. Al Zaabi’s business grew out of his personal interest in drag racing. “The origin of the company was when I used to race my old four-cylinder Mitsubishi Turbo at the drag strip back in 2002. I realized that I couldn’t find a decent shop which could take care of my own performance upgrades. The result is a thriving company which is a leader in modifying SUVs (particularly Jeeps) and sport vehicles.” Abdulla shares the credit for this firm “It’s combining Sheikh Abdulla’s[Sheikh Abdulla Bin Mohammed Bin Butti Al Hamed] vision, my experience in the performance and tuning industry and the guys in the shop.”

Challenges

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Drag racing in Umm Al Quwain.
(Photo courtesy of Top Performance magazine)
 

The regulation of vehicle modifications appears to fall into a gray area. There is confusion as to what is or is not legal. This is not surprising, given the newness of the industry. As it has grown, so too has the number of reports of police harassment, particularly if they think an aftermarket part appears to be “too loud.” There is also no consistency when a car goes for a safety inspection, with some inspectors questioning products. A number of consumers and specialty shops talked about safety-inspection station shopping, in which one group of inspectors fails a car but another then approves.

One of the goals for the SEMA trip was to talk to local industry and government leaders about the size of the market, the important role the industry plays in the U.S. and to gain a better understanding about the legal environment in the GCC as well as the UAE. SEMA had fruitful discussions with local industry and government leaders, which afforded the opportunity to discuss the legal environment, markets and trends in both countries.

“We found the UAE and Dubai government officials very welcoming to SEMA’s input as they begin to contemplate a regulatory framework addressing the specialty-equipment industry,” reflected SEMA CEO and President Chris Kersting. “U.S.-type regulations would fit well in the UAE. The country already has developed into a key gateway to the region with its low tariffs, free trade zones and tradition of allowing products which conform to overseas safety and emissions requirements to be sold in the UAE.”

The global economic crisis presents another challenge affecting the UAE. The credit crunch, job layoffs and uncertainties are present in this part of the world, and while the sale of luxury vehicles and the products to accessorize them continues nearly unabated, there has been a slowdown in sales to the non-Emirati buyer. Non-UAE citizens (85% of the population in Dubai) present the greatest potential for growth. According to analyst Business Monitor International (BMI), Emirati households own 2.35 vehicles per family on average. BMI reported that European, North Americans and East Asian expatriate (11%) as well as non-Emirati Arabs (21%) provide market potential. While sales growth has been temporarily dampened by the financial crisis, this presents another niche opportunity for SEMA members.

As in the U.S., education is an important component in growing the UAE market. Greater knowledge among enthusiasts as well as those who install and sell specialty products will improve safety as brand-name quality products coupled with installation by knowledgeable technicians help grow the market. This is an important task of industry said Mohammed Al-Bannai, manager of tuning shop Lap57, noting that the industry should pull together for the common purpose of educating not only the public but also tuners about their products.

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies,” Cozzie said. “There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for. It is evident from observations at the street level that this is a market waiting to be serviced. I have always said that car guys are car guys no matter where one travels in the world, and the Gulf region is no different. There is a passion for all types of vehicles there along with a growing community of racing competitors and a thirst for the ability to accessorize and customize one’s ride. And the timing couldn’t be better for exploring this growing market.”

Concluded SEMA Vice President of Events and Communications Peter MacGillivray: “This market is a tangible example that there are opportunities in the world when the domestic market is down, and it underscores the importance for all of our members to seek out overseas customers.”

Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Linda Spencer


Gateway to the Middle East

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies. There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for,” said Jim Cozzie, SEMA Board of Directors Immediate Past Chairman. 

More than 50 personnel from SEMA-member companies as well as association executives visited Dubai recently to explore business opportunities. Many of the companies also exhibited at the sixth edition of the Automechanika Middle East Show, held in Dubai on May 31-June 2. A total of 15,431 visitors attended the three-day event.

Of that number, said organizer Epoc Messe Frankfurt GmbH, 46% were international visitors who had converged on Dubai from 114 countries.

“The United Arab Emirates (UAE) and the Gulf region are very important markets for Evosport, as they represent a growing percentage of our business,” said Simon Atik about his retail and wholesale accessory sales company based in Huntington Beach, California. “It’s also a very exciting time, as the potential for the specialized aftermarket is immense, albeit in its infancy stages. The entire Gulf region is exploding with potential buyers, and there is an overwhelming demand for quality products.”

Bob Scheid of Perry, Ohio-based Fidanza Engineering Corp. was also among the visiting SEMA contingent and agreed that the UAE represents a real opportunity.

“We like to believe that Americans love their cars and this hobby more than anything else,” he said. “I really think we have some competition with what I saw. Not only is there passion, but they have the disposable income to spend. The markets are so similar in that they want good quality parts. The market in Dubai is not only the same, but they are willing to pay much more for quality. In the U.S., we love to customize, but there they want to do whatever it takes to make sure that their car is like no other on the road. If you pull up to a light and see two Corvettes, they will almost certainly be built totally differently. Uniqueness is not a goal; it’s mandatory.”

SEMA Immediate Past Chairman Jim Cozzie noted that SEMA traveled to the region to determine the viability of the market and identify the opportunities as well as hurdles regarding entry to the marketplace for member companies.

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

SEMA Board of Directors Immediate Past Chairman Jim Cozzie (left) and SEMA CEO and President Chris Kersting answered questions on car modification regulations at a seminar during Automechanika Middle East. 

“As part of this assessment, SEMA talked with SEMA members about their dealings in the region, with local companies about the market and trends and with government officials—including U.S., UAE and Dubai-based—to discuss the legal environment in which the specialty market operates,” Cozzie said. “More broadly, we spent the week shoring up our understanding of the key factors influencing the market currently and its short- and medium-term potential. Among the factors we investigated were the current and potential market size including population, the number and type of vehicles on the road and disposable income, the car culture and laws and regulations regarding vehicle modification as well as tariff levels and each country’s laws regarding counterfeit products. Those are some of the most important factors in determining an overseas market’s viability for SEMA members.”

The UAE is a federation of seven emirates, including the capital, Abu Dhabi, as well as Dubai. Founded in 1971, this small but wealthy nation has a population of 4.7 million. The UAE borders Saudi Arabia and Oman and serves as the gateway to the other members of the Gulf Cooperation Council (GCC), which includes the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman. A significant percentage of products are shipped to Abu Dhabi or Dubai and then re-shipped to other GCC or middle Eastern countries.

The specialty-equipment market is quite new to the UAE and the region. A real passion for everything modified has spurred the growth of world-class distributors and installers, including Chrome and Carbon, Liberty Motor Sports, TAM, Lap57 and Extreme Performance. Well-known international companies are also setting up shop in the UAE. West Coast Customs has a showroom in Dubai, and Yellow Hat—a Japanese-based accessories chain—has signed an agreement to open five shops in the country. See SEMA's list of UAE distributors and installers.

Size of the Market

There are approximately 8.7 million vehicles in the Gulf region, with about 2.6 million vehicles registered in the UAE. The Dubai market represents about 45% of this total and Abu Dhabi accounts for another 30%. Market analyst Auto Strategies International estimates the number of cars in the road in the other GCC countries at 3.6 million in Saudi Arabia; 1.1 million in Kuwait; 352,000 in Qatar; 243,000 in Bahrain; and 793,000 in Oman.

Vehicle Mix

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Slime was one of 50 SEMA-member companies exhibiting at the Automechanika Middle East Show recently held in Dubai. 

Some quick observations to be noted when driving through Dubai and Abu Dhabi reveal high-end vehicles, lots of SUVs and a great diversity of cars. Said Scheid: “I have traveled a lot. Nowhere have I seen the diversity of vehicles. Ferraris, Porsches, Lambos, Corvettes, EVOs, BMWs, Toyotas—you name it. The laws for importing the cars leave them open to having a diverse mix of vehicles. What a pleasure to just car watch!”

Zlatko Mulabegovic of Top Performance magazine took note of the number of light trucks on the road, commenting that the UAE market is similar to the one in the U.S. but is significantly smaller. It is also heavily influenced by aftermarket trends in the United States, and Mulabegovic estimated that at least 25% of the customized vehicles in the UAE are SUVs or light pickups.

“SUVs dominated alongside foreign compacts like Mitsubishi, Honda and Toyota,” said Mike Robleto of U.S.-based Motor Media.

Mulabegovic identified other top modified vehicles that included the Honda Civic, the Mitsubishi EVO, the Ford Mustang and the Nissan 350Z and Patrol.

Robleto said that one of the highlights of his visit was a trip to Dubai-based TAM Automotive.

“TAM Automotive is an over-the-top impressive tuning shop that modified sport compacts but also a slew of high-end Euros and hot rods like an AC Cobra and a ’60s Corvette Stingray,” he said. “This amazing facility has a four-wheel dyno and maintains two race teams that compete in the local road course championship series. An engine-building room and a bustling crew of mechanics solidified the UAE’s seriousness about aftermarket performance.”

Quality and Brand Awareness

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

The SEMA delegation visited Dubai-based TAM Automotive. The shop houses a state-of-the-art dyno and is currently working on a dizzying array of vehicles, including sport compacts and American hot rods as well as a host of Japanese and high-end European vehicles. 

The UAE is a gateway to the Middle East. Ford, GM and many of the other car manufacturers use the UAE—and Dubai in particular—as their regional headquarters. Specialty-equipment companies are also increasingly looking at the UAE as a launching pad for the region. That type of regional strategy is an important one for Treatment Products, a manufacturer of chemicals, waxes, polishes and other car-care products.

“When business gets more challenging, that is the time to get more aggressive in procuring new customers,” said Jeff Victor of Treatment Products. “Our goal was to sign new distributors in previously untapped markets. Although we do currently sell our products to the major Middle East markets, such as the UAE and Saudi Arabia, there are still many other markets in the region that are clamoring for U.S. products. Markets such as Qatar, Oman, Bahrain and Kuwait are all very receptive to U.S. goods and are good places for U.S. companies to do business.”

Tariff Levels

The UAE has one of the most open economies in the world. Tariff levels are low—up to 5% on manufactured goods—and the liberal use of free-trade zones (which offer 100% foreign ownership and zero taxes throughout the UAE) has further reduced the costs of doing business in the region. The U.S. and UAE governments have begun talks on a tariff-free arrangement between the two countries, and free-trade agreements exist with two other countries in the Gulf region—Bahrain and Oman

Buying Power

With a per-capita income (on a purchasing parity basis) of U.S. $55,000 compared to U.S. $46,000 in the U.S., the UAE offers a significant number of buyers who are in a position to purchase specialty- automotive products—and do. A unique characteristic of the specialty-equipment market in the UAE is its combination of passion and good buying power.

The industry in the UAE started much like it did in the United States. Look at Abdulla Al Zaabi of Extreme Performance. Al Zaabi’s business grew out of his personal interest in drag racing. “The origin of the company was when I used to race my old four-cylinder Mitsubishi Turbo at the drag strip back in 2002. I realized that I couldn’t find a decent shop which could take care of my own performance upgrades. The result is a thriving company which is a leader in modifying SUVs (particularly Jeeps) and sport vehicles.” Abdulla shares the credit for this firm “It’s combining Sheikh Abdulla’s[Sheikh Abdulla Bin Mohammed Bin Butti Al Hamed] vision, my experience in the performance and tuning industry and the guys in the shop.”

Challenges

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Drag racing in Umm Al Quwain.
(Photo courtesy of Top Performance magazine)
 

The regulation of vehicle modifications appears to fall into a gray area. There is confusion as to what is or is not legal. This is not surprising, given the newness of the industry. As it has grown, so too has the number of reports of police harassment, particularly if they think an aftermarket part appears to be “too loud.” There is also no consistency when a car goes for a safety inspection, with some inspectors questioning products. A number of consumers and specialty shops talked about safety-inspection station shopping, in which one group of inspectors fails a car but another then approves.

One of the goals for the SEMA trip was to talk to local industry and government leaders about the size of the market, the important role the industry plays in the U.S. and to gain a better understanding about the legal environment in the GCC as well as the UAE. SEMA had fruitful discussions with local industry and government leaders, which afforded the opportunity to discuss the legal environment, markets and trends in both countries.

“We found the UAE and Dubai government officials very welcoming to SEMA’s input as they begin to contemplate a regulatory framework addressing the specialty-equipment industry,” reflected SEMA CEO and President Chris Kersting. “U.S.-type regulations would fit well in the UAE. The country already has developed into a key gateway to the region with its low tariffs, free trade zones and tradition of allowing products which conform to overseas safety and emissions requirements to be sold in the UAE.”

The global economic crisis presents another challenge affecting the UAE. The credit crunch, job layoffs and uncertainties are present in this part of the world, and while the sale of luxury vehicles and the products to accessorize them continues nearly unabated, there has been a slowdown in sales to the non-Emirati buyer. Non-UAE citizens (85% of the population in Dubai) present the greatest potential for growth. According to analyst Business Monitor International (BMI), Emirati households own 2.35 vehicles per family on average. BMI reported that European, North Americans and East Asian expatriate (11%) as well as non-Emirati Arabs (21%) provide market potential. While sales growth has been temporarily dampened by the financial crisis, this presents another niche opportunity for SEMA members.

As in the U.S., education is an important component in growing the UAE market. Greater knowledge among enthusiasts as well as those who install and sell specialty products will improve safety as brand-name quality products coupled with installation by knowledgeable technicians help grow the market. This is an important task of industry said Mohammed Al-Bannai, manager of tuning shop Lap57, noting that the industry should pull together for the common purpose of educating not only the public but also tuners about their products.

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies,” Cozzie said. “There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for. It is evident from observations at the street level that this is a market waiting to be serviced. I have always said that car guys are car guys no matter where one travels in the world, and the Gulf region is no different. There is a passion for all types of vehicles there along with a growing community of racing competitors and a thirst for the ability to accessorize and customize one’s ride. And the timing couldn’t be better for exploring this growing market.”

Concluded SEMA Vice President of Events and Communications Peter MacGillivray: “This market is a tangible example that there are opportunities in the world when the domestic market is down, and it underscores the importance for all of our members to seek out overseas customers.”

Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Linda Spencer


Gateway to the Middle East

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies. There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for,” said Jim Cozzie, SEMA Board of Directors Immediate Past Chairman. 

More than 50 personnel from SEMA-member companies as well as association executives visited Dubai recently to explore business opportunities. Many of the companies also exhibited at the sixth edition of the Automechanika Middle East Show, held in Dubai on May 31-June 2. A total of 15,431 visitors attended the three-day event.

Of that number, said organizer Epoc Messe Frankfurt GmbH, 46% were international visitors who had converged on Dubai from 114 countries.

“The United Arab Emirates (UAE) and the Gulf region are very important markets for Evosport, as they represent a growing percentage of our business,” said Simon Atik about his retail and wholesale accessory sales company based in Huntington Beach, California. “It’s also a very exciting time, as the potential for the specialized aftermarket is immense, albeit in its infancy stages. The entire Gulf region is exploding with potential buyers, and there is an overwhelming demand for quality products.”

Bob Scheid of Perry, Ohio-based Fidanza Engineering Corp. was also among the visiting SEMA contingent and agreed that the UAE represents a real opportunity.

“We like to believe that Americans love their cars and this hobby more than anything else,” he said. “I really think we have some competition with what I saw. Not only is there passion, but they have the disposable income to spend. The markets are so similar in that they want good quality parts. The market in Dubai is not only the same, but they are willing to pay much more for quality. In the U.S., we love to customize, but there they want to do whatever it takes to make sure that their car is like no other on the road. If you pull up to a light and see two Corvettes, they will almost certainly be built totally differently. Uniqueness is not a goal; it’s mandatory.”

SEMA Immediate Past Chairman Jim Cozzie noted that SEMA traveled to the region to determine the viability of the market and identify the opportunities as well as hurdles regarding entry to the marketplace for member companies.

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

SEMA Board of Directors Immediate Past Chairman Jim Cozzie (left) and SEMA CEO and President Chris Kersting answered questions on car modification regulations at a seminar during Automechanika Middle East. 

“As part of this assessment, SEMA talked with SEMA members about their dealings in the region, with local companies about the market and trends and with government officials—including U.S., UAE and Dubai-based—to discuss the legal environment in which the specialty market operates,” Cozzie said. “More broadly, we spent the week shoring up our understanding of the key factors influencing the market currently and its short- and medium-term potential. Among the factors we investigated were the current and potential market size including population, the number and type of vehicles on the road and disposable income, the car culture and laws and regulations regarding vehicle modification as well as tariff levels and each country’s laws regarding counterfeit products. Those are some of the most important factors in determining an overseas market’s viability for SEMA members.”

The UAE is a federation of seven emirates, including the capital, Abu Dhabi, as well as Dubai. Founded in 1971, this small but wealthy nation has a population of 4.7 million. The UAE borders Saudi Arabia and Oman and serves as the gateway to the other members of the Gulf Cooperation Council (GCC), which includes the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman. A significant percentage of products are shipped to Abu Dhabi or Dubai and then re-shipped to other GCC or middle Eastern countries.

The specialty-equipment market is quite new to the UAE and the region. A real passion for everything modified has spurred the growth of world-class distributors and installers, including Chrome and Carbon, Liberty Motor Sports, TAM, Lap57 and Extreme Performance. Well-known international companies are also setting up shop in the UAE. West Coast Customs has a showroom in Dubai, and Yellow Hat—a Japanese-based accessories chain—has signed an agreement to open five shops in the country. See SEMA's list of UAE distributors and installers.

Size of the Market

There are approximately 8.7 million vehicles in the Gulf region, with about 2.6 million vehicles registered in the UAE. The Dubai market represents about 45% of this total and Abu Dhabi accounts for another 30%. Market analyst Auto Strategies International estimates the number of cars in the road in the other GCC countries at 3.6 million in Saudi Arabia; 1.1 million in Kuwait; 352,000 in Qatar; 243,000 in Bahrain; and 793,000 in Oman.

Vehicle Mix

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Slime was one of 50 SEMA-member companies exhibiting at the Automechanika Middle East Show recently held in Dubai. 

Some quick observations to be noted when driving through Dubai and Abu Dhabi reveal high-end vehicles, lots of SUVs and a great diversity of cars. Said Scheid: “I have traveled a lot. Nowhere have I seen the diversity of vehicles. Ferraris, Porsches, Lambos, Corvettes, EVOs, BMWs, Toyotas—you name it. The laws for importing the cars leave them open to having a diverse mix of vehicles. What a pleasure to just car watch!”

Zlatko Mulabegovic of Top Performance magazine took note of the number of light trucks on the road, commenting that the UAE market is similar to the one in the U.S. but is significantly smaller. It is also heavily influenced by aftermarket trends in the United States, and Mulabegovic estimated that at least 25% of the customized vehicles in the UAE are SUVs or light pickups.

“SUVs dominated alongside foreign compacts like Mitsubishi, Honda and Toyota,” said Mike Robleto of U.S.-based Motor Media.

Mulabegovic identified other top modified vehicles that included the Honda Civic, the Mitsubishi EVO, the Ford Mustang and the Nissan 350Z and Patrol.

Robleto said that one of the highlights of his visit was a trip to Dubai-based TAM Automotive.

“TAM Automotive is an over-the-top impressive tuning shop that modified sport compacts but also a slew of high-end Euros and hot rods like an AC Cobra and a ’60s Corvette Stingray,” he said. “This amazing facility has a four-wheel dyno and maintains two race teams that compete in the local road course championship series. An engine-building room and a bustling crew of mechanics solidified the UAE’s seriousness about aftermarket performance.”

Quality and Brand Awareness

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

The SEMA delegation visited Dubai-based TAM Automotive. The shop houses a state-of-the-art dyno and is currently working on a dizzying array of vehicles, including sport compacts and American hot rods as well as a host of Japanese and high-end European vehicles. 

The UAE is a gateway to the Middle East. Ford, GM and many of the other car manufacturers use the UAE—and Dubai in particular—as their regional headquarters. Specialty-equipment companies are also increasingly looking at the UAE as a launching pad for the region. That type of regional strategy is an important one for Treatment Products, a manufacturer of chemicals, waxes, polishes and other car-care products.

“When business gets more challenging, that is the time to get more aggressive in procuring new customers,” said Jeff Victor of Treatment Products. “Our goal was to sign new distributors in previously untapped markets. Although we do currently sell our products to the major Middle East markets, such as the UAE and Saudi Arabia, there are still many other markets in the region that are clamoring for U.S. products. Markets such as Qatar, Oman, Bahrain and Kuwait are all very receptive to U.S. goods and are good places for U.S. companies to do business.”

Tariff Levels

The UAE has one of the most open economies in the world. Tariff levels are low—up to 5% on manufactured goods—and the liberal use of free-trade zones (which offer 100% foreign ownership and zero taxes throughout the UAE) has further reduced the costs of doing business in the region. The U.S. and UAE governments have begun talks on a tariff-free arrangement between the two countries, and free-trade agreements exist with two other countries in the Gulf region—Bahrain and Oman

Buying Power

With a per-capita income (on a purchasing parity basis) of U.S. $55,000 compared to U.S. $46,000 in the U.S., the UAE offers a significant number of buyers who are in a position to purchase specialty- automotive products—and do. A unique characteristic of the specialty-equipment market in the UAE is its combination of passion and good buying power.

The industry in the UAE started much like it did in the United States. Look at Abdulla Al Zaabi of Extreme Performance. Al Zaabi’s business grew out of his personal interest in drag racing. “The origin of the company was when I used to race my old four-cylinder Mitsubishi Turbo at the drag strip back in 2002. I realized that I couldn’t find a decent shop which could take care of my own performance upgrades. The result is a thriving company which is a leader in modifying SUVs (particularly Jeeps) and sport vehicles.” Abdulla shares the credit for this firm “It’s combining Sheikh Abdulla’s[Sheikh Abdulla Bin Mohammed Bin Butti Al Hamed] vision, my experience in the performance and tuning industry and the guys in the shop.”

Challenges

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Drag racing in Umm Al Quwain.
(Photo courtesy of Top Performance magazine)
 

The regulation of vehicle modifications appears to fall into a gray area. There is confusion as to what is or is not legal. This is not surprising, given the newness of the industry. As it has grown, so too has the number of reports of police harassment, particularly if they think an aftermarket part appears to be “too loud.” There is also no consistency when a car goes for a safety inspection, with some inspectors questioning products. A number of consumers and specialty shops talked about safety-inspection station shopping, in which one group of inspectors fails a car but another then approves.

One of the goals for the SEMA trip was to talk to local industry and government leaders about the size of the market, the important role the industry plays in the U.S. and to gain a better understanding about the legal environment in the GCC as well as the UAE. SEMA had fruitful discussions with local industry and government leaders, which afforded the opportunity to discuss the legal environment, markets and trends in both countries.

“We found the UAE and Dubai government officials very welcoming to SEMA’s input as they begin to contemplate a regulatory framework addressing the specialty-equipment industry,” reflected SEMA CEO and President Chris Kersting. “U.S.-type regulations would fit well in the UAE. The country already has developed into a key gateway to the region with its low tariffs, free trade zones and tradition of allowing products which conform to overseas safety and emissions requirements to be sold in the UAE.”

The global economic crisis presents another challenge affecting the UAE. The credit crunch, job layoffs and uncertainties are present in this part of the world, and while the sale of luxury vehicles and the products to accessorize them continues nearly unabated, there has been a slowdown in sales to the non-Emirati buyer. Non-UAE citizens (85% of the population in Dubai) present the greatest potential for growth. According to analyst Business Monitor International (BMI), Emirati households own 2.35 vehicles per family on average. BMI reported that European, North Americans and East Asian expatriate (11%) as well as non-Emirati Arabs (21%) provide market potential. While sales growth has been temporarily dampened by the financial crisis, this presents another niche opportunity for SEMA members.

As in the U.S., education is an important component in growing the UAE market. Greater knowledge among enthusiasts as well as those who install and sell specialty products will improve safety as brand-name quality products coupled with installation by knowledgeable technicians help grow the market. This is an important task of industry said Mohammed Al-Bannai, manager of tuning shop Lap57, noting that the industry should pull together for the common purpose of educating not only the public but also tuners about their products.

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies,” Cozzie said. “There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for. It is evident from observations at the street level that this is a market waiting to be serviced. I have always said that car guys are car guys no matter where one travels in the world, and the Gulf region is no different. There is a passion for all types of vehicles there along with a growing community of racing competitors and a thirst for the ability to accessorize and customize one’s ride. And the timing couldn’t be better for exploring this growing market.”

Concluded SEMA Vice President of Events and Communications Peter MacGillivray: “This market is a tangible example that there are opportunities in the world when the domestic market is down, and it underscores the importance for all of our members to seek out overseas customers.”

Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Linda Spencer


Gateway to the Middle East

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies. There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for,” said Jim Cozzie, SEMA Board of Directors Immediate Past Chairman. 

More than 50 personnel from SEMA-member companies as well as association executives visited Dubai recently to explore business opportunities. Many of the companies also exhibited at the sixth edition of the Automechanika Middle East Show, held in Dubai on May 31-June 2. A total of 15,431 visitors attended the three-day event.

Of that number, said organizer Epoc Messe Frankfurt GmbH, 46% were international visitors who had converged on Dubai from 114 countries.

“The United Arab Emirates (UAE) and the Gulf region are very important markets for Evosport, as they represent a growing percentage of our business,” said Simon Atik about his retail and wholesale accessory sales company based in Huntington Beach, California. “It’s also a very exciting time, as the potential for the specialized aftermarket is immense, albeit in its infancy stages. The entire Gulf region is exploding with potential buyers, and there is an overwhelming demand for quality products.”

Bob Scheid of Perry, Ohio-based Fidanza Engineering Corp. was also among the visiting SEMA contingent and agreed that the UAE represents a real opportunity.

“We like to believe that Americans love their cars and this hobby more than anything else,” he said. “I really think we have some competition with what I saw. Not only is there passion, but they have the disposable income to spend. The markets are so similar in that they want good quality parts. The market in Dubai is not only the same, but they are willing to pay much more for quality. In the U.S., we love to customize, but there they want to do whatever it takes to make sure that their car is like no other on the road. If you pull up to a light and see two Corvettes, they will almost certainly be built totally differently. Uniqueness is not a goal; it’s mandatory.”

SEMA Immediate Past Chairman Jim Cozzie noted that SEMA traveled to the region to determine the viability of the market and identify the opportunities as well as hurdles regarding entry to the marketplace for member companies.

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

SEMA Board of Directors Immediate Past Chairman Jim Cozzie (left) and SEMA CEO and President Chris Kersting answered questions on car modification regulations at a seminar during Automechanika Middle East. 

“As part of this assessment, SEMA talked with SEMA members about their dealings in the region, with local companies about the market and trends and with government officials—including U.S., UAE and Dubai-based—to discuss the legal environment in which the specialty market operates,” Cozzie said. “More broadly, we spent the week shoring up our understanding of the key factors influencing the market currently and its short- and medium-term potential. Among the factors we investigated were the current and potential market size including population, the number and type of vehicles on the road and disposable income, the car culture and laws and regulations regarding vehicle modification as well as tariff levels and each country’s laws regarding counterfeit products. Those are some of the most important factors in determining an overseas market’s viability for SEMA members.”

The UAE is a federation of seven emirates, including the capital, Abu Dhabi, as well as Dubai. Founded in 1971, this small but wealthy nation has a population of 4.7 million. The UAE borders Saudi Arabia and Oman and serves as the gateway to the other members of the Gulf Cooperation Council (GCC), which includes the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman. A significant percentage of products are shipped to Abu Dhabi or Dubai and then re-shipped to other GCC or middle Eastern countries.

The specialty-equipment market is quite new to the UAE and the region. A real passion for everything modified has spurred the growth of world-class distributors and installers, including Chrome and Carbon, Liberty Motor Sports, TAM, Lap57 and Extreme Performance. Well-known international companies are also setting up shop in the UAE. West Coast Customs has a showroom in Dubai, and Yellow Hat—a Japanese-based accessories chain—has signed an agreement to open five shops in the country. See SEMA's list of UAE distributors and installers.

Size of the Market

There are approximately 8.7 million vehicles in the Gulf region, with about 2.6 million vehicles registered in the UAE. The Dubai market represents about 45% of this total and Abu Dhabi accounts for another 30%. Market analyst Auto Strategies International estimates the number of cars in the road in the other GCC countries at 3.6 million in Saudi Arabia; 1.1 million in Kuwait; 352,000 in Qatar; 243,000 in Bahrain; and 793,000 in Oman.

Vehicle Mix

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Slime was one of 50 SEMA-member companies exhibiting at the Automechanika Middle East Show recently held in Dubai. 

Some quick observations to be noted when driving through Dubai and Abu Dhabi reveal high-end vehicles, lots of SUVs and a great diversity of cars. Said Scheid: “I have traveled a lot. Nowhere have I seen the diversity of vehicles. Ferraris, Porsches, Lambos, Corvettes, EVOs, BMWs, Toyotas—you name it. The laws for importing the cars leave them open to having a diverse mix of vehicles. What a pleasure to just car watch!”

Zlatko Mulabegovic of Top Performance magazine took note of the number of light trucks on the road, commenting that the UAE market is similar to the one in the U.S. but is significantly smaller. It is also heavily influenced by aftermarket trends in the United States, and Mulabegovic estimated that at least 25% of the customized vehicles in the UAE are SUVs or light pickups.

“SUVs dominated alongside foreign compacts like Mitsubishi, Honda and Toyota,” said Mike Robleto of U.S.-based Motor Media.

Mulabegovic identified other top modified vehicles that included the Honda Civic, the Mitsubishi EVO, the Ford Mustang and the Nissan 350Z and Patrol.

Robleto said that one of the highlights of his visit was a trip to Dubai-based TAM Automotive.

“TAM Automotive is an over-the-top impressive tuning shop that modified sport compacts but also a slew of high-end Euros and hot rods like an AC Cobra and a ’60s Corvette Stingray,” he said. “This amazing facility has a four-wheel dyno and maintains two race teams that compete in the local road course championship series. An engine-building room and a bustling crew of mechanics solidified the UAE’s seriousness about aftermarket performance.”

Quality and Brand Awareness

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

The SEMA delegation visited Dubai-based TAM Automotive. The shop houses a state-of-the-art dyno and is currently working on a dizzying array of vehicles, including sport compacts and American hot rods as well as a host of Japanese and high-end European vehicles. 

The UAE is a gateway to the Middle East. Ford, GM and many of the other car manufacturers use the UAE—and Dubai in particular—as their regional headquarters. Specialty-equipment companies are also increasingly looking at the UAE as a launching pad for the region. That type of regional strategy is an important one for Treatment Products, a manufacturer of chemicals, waxes, polishes and other car-care products.

“When business gets more challenging, that is the time to get more aggressive in procuring new customers,” said Jeff Victor of Treatment Products. “Our goal was to sign new distributors in previously untapped markets. Although we do currently sell our products to the major Middle East markets, such as the UAE and Saudi Arabia, there are still many other markets in the region that are clamoring for U.S. products. Markets such as Qatar, Oman, Bahrain and Kuwait are all very receptive to U.S. goods and are good places for U.S. companies to do business.”

Tariff Levels

The UAE has one of the most open economies in the world. Tariff levels are low—up to 5% on manufactured goods—and the liberal use of free-trade zones (which offer 100% foreign ownership and zero taxes throughout the UAE) has further reduced the costs of doing business in the region. The U.S. and UAE governments have begun talks on a tariff-free arrangement between the two countries, and free-trade agreements exist with two other countries in the Gulf region—Bahrain and Oman

Buying Power

With a per-capita income (on a purchasing parity basis) of U.S. $55,000 compared to U.S. $46,000 in the U.S., the UAE offers a significant number of buyers who are in a position to purchase specialty- automotive products—and do. A unique characteristic of the specialty-equipment market in the UAE is its combination of passion and good buying power.

The industry in the UAE started much like it did in the United States. Look at Abdulla Al Zaabi of Extreme Performance. Al Zaabi’s business grew out of his personal interest in drag racing. “The origin of the company was when I used to race my old four-cylinder Mitsubishi Turbo at the drag strip back in 2002. I realized that I couldn’t find a decent shop which could take care of my own performance upgrades. The result is a thriving company which is a leader in modifying SUVs (particularly Jeeps) and sport vehicles.” Abdulla shares the credit for this firm “It’s combining Sheikh Abdulla’s[Sheikh Abdulla Bin Mohammed Bin Butti Al Hamed] vision, my experience in the performance and tuning industry and the guys in the shop.”

Challenges

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Drag racing in Umm Al Quwain.
(Photo courtesy of Top Performance magazine)
 

The regulation of vehicle modifications appears to fall into a gray area. There is confusion as to what is or is not legal. This is not surprising, given the newness of the industry. As it has grown, so too has the number of reports of police harassment, particularly if they think an aftermarket part appears to be “too loud.” There is also no consistency when a car goes for a safety inspection, with some inspectors questioning products. A number of consumers and specialty shops talked about safety-inspection station shopping, in which one group of inspectors fails a car but another then approves.

One of the goals for the SEMA trip was to talk to local industry and government leaders about the size of the market, the important role the industry plays in the U.S. and to gain a better understanding about the legal environment in the GCC as well as the UAE. SEMA had fruitful discussions with local industry and government leaders, which afforded the opportunity to discuss the legal environment, markets and trends in both countries.

“We found the UAE and Dubai government officials very welcoming to SEMA’s input as they begin to contemplate a regulatory framework addressing the specialty-equipment industry,” reflected SEMA CEO and President Chris Kersting. “U.S.-type regulations would fit well in the UAE. The country already has developed into a key gateway to the region with its low tariffs, free trade zones and tradition of allowing products which conform to overseas safety and emissions requirements to be sold in the UAE.”

The global economic crisis presents another challenge affecting the UAE. The credit crunch, job layoffs and uncertainties are present in this part of the world, and while the sale of luxury vehicles and the products to accessorize them continues nearly unabated, there has been a slowdown in sales to the non-Emirati buyer. Non-UAE citizens (85% of the population in Dubai) present the greatest potential for growth. According to analyst Business Monitor International (BMI), Emirati households own 2.35 vehicles per family on average. BMI reported that European, North Americans and East Asian expatriate (11%) as well as non-Emirati Arabs (21%) provide market potential. While sales growth has been temporarily dampened by the financial crisis, this presents another niche opportunity for SEMA members.

As in the U.S., education is an important component in growing the UAE market. Greater knowledge among enthusiasts as well as those who install and sell specialty products will improve safety as brand-name quality products coupled with installation by knowledgeable technicians help grow the market. This is an important task of industry said Mohammed Al-Bannai, manager of tuning shop Lap57, noting that the industry should pull together for the common purpose of educating not only the public but also tuners about their products.

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies,” Cozzie said. “There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for. It is evident from observations at the street level that this is a market waiting to be serviced. I have always said that car guys are car guys no matter where one travels in the world, and the Gulf region is no different. There is a passion for all types of vehicles there along with a growing community of racing competitors and a thirst for the ability to accessorize and customize one’s ride. And the timing couldn’t be better for exploring this growing market.”

Concluded SEMA Vice President of Events and Communications Peter MacGillivray: “This market is a tangible example that there are opportunities in the world when the domestic market is down, and it underscores the importance for all of our members to seek out overseas customers.”

Tue, 08/04/2009 - 14:35

SEMA News - August 2009

By Linda Spencer


Gateway to the Middle East

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies. There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for,” said Jim Cozzie, SEMA Board of Directors Immediate Past Chairman. 

More than 50 personnel from SEMA-member companies as well as association executives visited Dubai recently to explore business opportunities. Many of the companies also exhibited at the sixth edition of the Automechanika Middle East Show, held in Dubai on May 31-June 2. A total of 15,431 visitors attended the three-day event.

Of that number, said organizer Epoc Messe Frankfurt GmbH, 46% were international visitors who had converged on Dubai from 114 countries.

“The United Arab Emirates (UAE) and the Gulf region are very important markets for Evosport, as they represent a growing percentage of our business,” said Simon Atik about his retail and wholesale accessory sales company based in Huntington Beach, California. “It’s also a very exciting time, as the potential for the specialized aftermarket is immense, albeit in its infancy stages. The entire Gulf region is exploding with potential buyers, and there is an overwhelming demand for quality products.”

Bob Scheid of Perry, Ohio-based Fidanza Engineering Corp. was also among the visiting SEMA contingent and agreed that the UAE represents a real opportunity.

“We like to believe that Americans love their cars and this hobby more than anything else,” he said. “I really think we have some competition with what I saw. Not only is there passion, but they have the disposable income to spend. The markets are so similar in that they want good quality parts. The market in Dubai is not only the same, but they are willing to pay much more for quality. In the U.S., we love to customize, but there they want to do whatever it takes to make sure that their car is like no other on the road. If you pull up to a light and see two Corvettes, they will almost certainly be built totally differently. Uniqueness is not a goal; it’s mandatory.”

SEMA Immediate Past Chairman Jim Cozzie noted that SEMA traveled to the region to determine the viability of the market and identify the opportunities as well as hurdles regarding entry to the marketplace for member companies.

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

SEMA Board of Directors Immediate Past Chairman Jim Cozzie (left) and SEMA CEO and President Chris Kersting answered questions on car modification regulations at a seminar during Automechanika Middle East. 

“As part of this assessment, SEMA talked with SEMA members about their dealings in the region, with local companies about the market and trends and with government officials—including U.S., UAE and Dubai-based—to discuss the legal environment in which the specialty market operates,” Cozzie said. “More broadly, we spent the week shoring up our understanding of the key factors influencing the market currently and its short- and medium-term potential. Among the factors we investigated were the current and potential market size including population, the number and type of vehicles on the road and disposable income, the car culture and laws and regulations regarding vehicle modification as well as tariff levels and each country’s laws regarding counterfeit products. Those are some of the most important factors in determining an overseas market’s viability for SEMA members.”

The UAE is a federation of seven emirates, including the capital, Abu Dhabi, as well as Dubai. Founded in 1971, this small but wealthy nation has a population of 4.7 million. The UAE borders Saudi Arabia and Oman and serves as the gateway to the other members of the Gulf Cooperation Council (GCC), which includes the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman. A significant percentage of products are shipped to Abu Dhabi or Dubai and then re-shipped to other GCC or middle Eastern countries.

The specialty-equipment market is quite new to the UAE and the region. A real passion for everything modified has spurred the growth of world-class distributors and installers, including Chrome and Carbon, Liberty Motor Sports, TAM, Lap57 and Extreme Performance. Well-known international companies are also setting up shop in the UAE. West Coast Customs has a showroom in Dubai, and Yellow Hat—a Japanese-based accessories chain—has signed an agreement to open five shops in the country. See SEMA's list of UAE distributors and installers.

Size of the Market

There are approximately 8.7 million vehicles in the Gulf region, with about 2.6 million vehicles registered in the UAE. The Dubai market represents about 45% of this total and Abu Dhabi accounts for another 30%. Market analyst Auto Strategies International estimates the number of cars in the road in the other GCC countries at 3.6 million in Saudi Arabia; 1.1 million in Kuwait; 352,000 in Qatar; 243,000 in Bahrain; and 793,000 in Oman.

Vehicle Mix

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Slime was one of 50 SEMA-member companies exhibiting at the Automechanika Middle East Show recently held in Dubai. 

Some quick observations to be noted when driving through Dubai and Abu Dhabi reveal high-end vehicles, lots of SUVs and a great diversity of cars. Said Scheid: “I have traveled a lot. Nowhere have I seen the diversity of vehicles. Ferraris, Porsches, Lambos, Corvettes, EVOs, BMWs, Toyotas—you name it. The laws for importing the cars leave them open to having a diverse mix of vehicles. What a pleasure to just car watch!”

Zlatko Mulabegovic of Top Performance magazine took note of the number of light trucks on the road, commenting that the UAE market is similar to the one in the U.S. but is significantly smaller. It is also heavily influenced by aftermarket trends in the United States, and Mulabegovic estimated that at least 25% of the customized vehicles in the UAE are SUVs or light pickups.

“SUVs dominated alongside foreign compacts like Mitsubishi, Honda and Toyota,” said Mike Robleto of U.S.-based Motor Media.

Mulabegovic identified other top modified vehicles that included the Honda Civic, the Mitsubishi EVO, the Ford Mustang and the Nissan 350Z and Patrol.

Robleto said that one of the highlights of his visit was a trip to Dubai-based TAM Automotive.

“TAM Automotive is an over-the-top impressive tuning shop that modified sport compacts but also a slew of high-end Euros and hot rods like an AC Cobra and a ’60s Corvette Stingray,” he said. “This amazing facility has a four-wheel dyno and maintains two race teams that compete in the local road course championship series. An engine-building room and a bustling crew of mechanics solidified the UAE’s seriousness about aftermarket performance.”

Quality and Brand Awareness

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

The SEMA delegation visited Dubai-based TAM Automotive. The shop houses a state-of-the-art dyno and is currently working on a dizzying array of vehicles, including sport compacts and American hot rods as well as a host of Japanese and high-end European vehicles. 

The UAE is a gateway to the Middle East. Ford, GM and many of the other car manufacturers use the UAE—and Dubai in particular—as their regional headquarters. Specialty-equipment companies are also increasingly looking at the UAE as a launching pad for the region. That type of regional strategy is an important one for Treatment Products, a manufacturer of chemicals, waxes, polishes and other car-care products.

“When business gets more challenging, that is the time to get more aggressive in procuring new customers,” said Jeff Victor of Treatment Products. “Our goal was to sign new distributors in previously untapped markets. Although we do currently sell our products to the major Middle East markets, such as the UAE and Saudi Arabia, there are still many other markets in the region that are clamoring for U.S. products. Markets such as Qatar, Oman, Bahrain and Kuwait are all very receptive to U.S. goods and are good places for U.S. companies to do business.”

Tariff Levels

The UAE has one of the most open economies in the world. Tariff levels are low—up to 5% on manufactured goods—and the liberal use of free-trade zones (which offer 100% foreign ownership and zero taxes throughout the UAE) has further reduced the costs of doing business in the region. The U.S. and UAE governments have begun talks on a tariff-free arrangement between the two countries, and free-trade agreements exist with two other countries in the Gulf region—Bahrain and Oman

Buying Power

With a per-capita income (on a purchasing parity basis) of U.S. $55,000 compared to U.S. $46,000 in the U.S., the UAE offers a significant number of buyers who are in a position to purchase specialty- automotive products—and do. A unique characteristic of the specialty-equipment market in the UAE is its combination of passion and good buying power.

The industry in the UAE started much like it did in the United States. Look at Abdulla Al Zaabi of Extreme Performance. Al Zaabi’s business grew out of his personal interest in drag racing. “The origin of the company was when I used to race my old four-cylinder Mitsubishi Turbo at the drag strip back in 2002. I realized that I couldn’t find a decent shop which could take care of my own performance upgrades. The result is a thriving company which is a leader in modifying SUVs (particularly Jeeps) and sport vehicles.” Abdulla shares the credit for this firm “It’s combining Sheikh Abdulla’s[Sheikh Abdulla Bin Mohammed Bin Butti Al Hamed] vision, my experience in the performance and tuning industry and the guys in the shop.”

Challenges

SEMA NEWS-AUGUST 2009-INTERNATIONAL 

Drag racing in Umm Al Quwain.
(Photo courtesy of Top Performance magazine)
 

The regulation of vehicle modifications appears to fall into a gray area. There is confusion as to what is or is not legal. This is not surprising, given the newness of the industry. As it has grown, so too has the number of reports of police harassment, particularly if they think an aftermarket part appears to be “too loud.” There is also no consistency when a car goes for a safety inspection, with some inspectors questioning products. A number of consumers and specialty shops talked about safety-inspection station shopping, in which one group of inspectors fails a car but another then approves.

One of the goals for the SEMA trip was to talk to local industry and government leaders about the size of the market, the important role the industry plays in the U.S. and to gain a better understanding about the legal environment in the GCC as well as the UAE. SEMA had fruitful discussions with local industry and government leaders, which afforded the opportunity to discuss the legal environment, markets and trends in both countries.

“We found the UAE and Dubai government officials very welcoming to SEMA’s input as they begin to contemplate a regulatory framework addressing the specialty-equipment industry,” reflected SEMA CEO and President Chris Kersting. “U.S.-type regulations would fit well in the UAE. The country already has developed into a key gateway to the region with its low tariffs, free trade zones and tradition of allowing products which conform to overseas safety and emissions requirements to be sold in the UAE.”

The global economic crisis presents another challenge affecting the UAE. The credit crunch, job layoffs and uncertainties are present in this part of the world, and while the sale of luxury vehicles and the products to accessorize them continues nearly unabated, there has been a slowdown in sales to the non-Emirati buyer. Non-UAE citizens (85% of the population in Dubai) present the greatest potential for growth. According to analyst Business Monitor International (BMI), Emirati households own 2.35 vehicles per family on average. BMI reported that European, North Americans and East Asian expatriate (11%) as well as non-Emirati Arabs (21%) provide market potential. While sales growth has been temporarily dampened by the financial crisis, this presents another niche opportunity for SEMA members.

As in the U.S., education is an important component in growing the UAE market. Greater knowledge among enthusiasts as well as those who install and sell specialty products will improve safety as brand-name quality products coupled with installation by knowledgeable technicians help grow the market. This is an important task of industry said Mohammed Al-Bannai, manager of tuning shop Lap57, noting that the industry should pull together for the common purpose of educating not only the public but also tuners about their products.

“The UAE market holds a large degree of promise as a growth opportunity for SEMA-member companies,” Cozzie said. “There is demand, resources and a wide variety of vehicles that our member companies currently offer parts for. It is evident from observations at the street level that this is a market waiting to be serviced. I have always said that car guys are car guys no matter where one travels in the world, and the Gulf region is no different. There is a passion for all types of vehicles there along with a growing community of racing competitors and a thirst for the ability to accessorize and customize one’s ride. And the timing couldn’t be better for exploring this growing market.”

Concluded SEMA Vice President of Events and Communications Peter MacGillivray: “This market is a tangible example that there are opportunities in the world when the domestic market is down, and it underscores the importance for all of our members to seek out overseas customers.”