A journalist from Pisteros magazine, an enthusiast publication in Argentina, is traveling to Los Angeles in April and is interested in interviewing SEMA members about innovative new products. He will also be arranging photo shoots of products and project vehicles for both Pisteros magazine as well as a Spanish-language publication in the United States—Automundo Magazine.

For more information, contact Linda Spencer, SEMA’s international director, at lindas@sema.org.

European cars are quite popular in Argentina with the Fiat Palio, Peugeot 206, Renault Clio and VW Golf and Fox among the most popular cars to modify.

Two Argentinean journalists, Paulo Di Renzo of Maxi Tuning/Maxi Audio and Alex Saligari of Pisteros, selected a total of 20 products (listed below with their commentary on why they selected these products) from the more than 1,500 products in the New Products Showcase at the 2008 SEMA Show which they believe will have the best chance of success in Argentina.

Mobile Suitcase Display, Auto Meter Products
“Interesting product presentation based on a versatile commercial proposal. Variety of models and ranges exhibited with clarity and simplicity.”

American Muscle Gauge Series, Auto Meter Products
“Product of great adaptability for classic cars and hot rods. Exquisite design and notable quality of completion, endorsed by a prestige marque.”

Multi Pro R2, Eibach Springs Inc.
“A specialistic marque that does not stop surprising us with its products. Of great reputation in Argentina, Eibach is synonymous with innovation and experience.”

Jack-Rack, Jack-Rack
“Pickups are the allies of heavy work in the Argentine fields. This product turns out to be very useful to distribute loads and increase the volume of the load.”

Competitor Series Mopar Throttle Assembly, Lokar Performance Products
“Quality of completion and design with the seal of one of the most prestigious companies. Ideal for a sport machine of long ago.”

Steering Wheel Y, Shutt Auto
“Shutt is a very well-known marque in Argentina. Their products always are well-received and are appraised in the majority of professional cars. The chromed details are an exclusive extra feature.”

G-Tech/Pro EGS, Tesla Electronics Inc.
“An efficient and very useful tool for those who look to operate at maximum aptitude at the track. Innovative, versatile and with the endorsement of a reputable company.”

Rattle Tracker, Thomas Automotive Industries
“A work tool that mechanics will adore. Technology is very well received when daily work can be more exact and simple.”

RangeFinderPro, TVK Industries Inc.
“Fascinating. An exquisite gearshift as much at the aesthetic level as at the functional level.”

3D Letter, Young Sung USA
“An accessory of great popularity that is always welcome. The possibility of combining letters and symbols is an added value."

Consumers in the United Arab Emirates and the neighboring countries that make up the Gulf Coast region (Bahrain, Kuwait, Oman, Saudi Arabia and Qatar) are spending increasing amounts of their considerable discretionary income on customizing their vehicles with styling and performance products. There are currently 7.1 million cars on the road. These consumers are passionate about their cars and light trucks.

Reach out to this market by attending or exhibiting at the Automechanika Middle East (AME) taking place in Dubai on May 31–June 2. SEMA members participating in this event will also be invited to SEMA-sponsored briefings and networking opportunities with distributors.

For more information, contact SEMA’s International Director Linda Spencer lindas@sema.org.

Consumers in the United Arab Emirates and the neighboring countries that make up the Gulf Coast region (Bahrain, Kuwait, Oman, Saudi Arabia and Qatar) are spending increasing amounts of their considerable discretionary income on customizing their vehicles with styling and performance products. There are currently 7.1 million cars on the road. These consumers are passionate about their cars and light trucks.

Reach out to this market by attending or exhibiting at the Automechanika Middle East (AME) taking place in Dubai on May 31–June 2. SEMA members participating in this event will also be invited to SEMA-sponsored briefings and networking opportunities with distributors.

For more information, contact SEMA’s International Director Linda Spencer lindas@sema.org.

President Obama mentioned a willingness to consider including such a program within his auto restructuring plans. 

In the letter, SEMA discussed the need to help consumers, automakers and dealerships with a program to stimulate new car sales. Assistance could come in the form of government-issued vouchers toward the purchase of fuel-efficient new vehicles, and allowing consumers to deduct the car interest payments on their taxes. SEMA, however, strongly opposed tying the vouchers to a scrappage program.  

Scappage programs accelerate the demise of older vehicles, which are then typically crushed into blocks of sheet metal. Program supporters focus on a car's age or fuel efficiency rating rather than its actual emissions or how much it is driven. SEMA has consistently warned against wasting taxpayer dollars on a program that may produce an artificial spike in sales, but does not reduce emissions or increase fuel efficiency. 

Automakers and dealers need to sell cars in order to survive, but potential buyers have hit the brakes in these tough economic times. Scrappage programs would actually deny vouchers to the majority of people who may want to buy a new car but don’t have an eligible older car to trade. Instead, these programs will be misused by those who own two or three older cars and seek to take advantage of the taxpayer give-away.

Many of these cars aren’t frequently driven, if at all, so destroying them will not clean the nation’s air or make us less dependent on foreign oil. 

While supporters tout a similar German program as evidence of success, the European Federation for Transport and the Environment, (the pan-European federation of environmental groups), has urged Germany and other countries to abandon scrappage subsidies because they do more environmental harm than good by artificially accelerating the car life cycle. 

Scrappage programs hurt thousands of independent repair shops, auto restorers, customizers and their customers across the country. This industry provides thousands of American jobs and generates millions of dollars in local, state and federal tax revenues.

SEMA encouraged the President to help the entire auto industry with programs that focus the incentive where it counts: on the purchase of new vehicles and not destroying older cars. 

Read SEMA's letter to President Obama.

For more information, contact Stuart Gosswein at stuartg@sema.org.

SEMA News -- April 2009
BUSINESS

“Consumers want seamless on-board vehicle connectivity with their homes, offices and the rest of the world,” said Waraniak. “They want simple and intuitive ways to operate cell phones and entertainment systems, connect to weather and traffic reports, as well as access to the information and content of electronic devices that are built in, brought in or beamed in to their vehicles.”

Consumers have embraced and, in fact, have come to demand in-vehicle technology. From performance audio and navigation systems to the iPod and from Ford Sync to GM OnStar, automotive and consumer electronics technologies are making cars and trucks more connected, more integrated and safer. Automotive electronics for infotainment, connectivity and active-passive safety have become major product differentiators and selling points in the showroom and in the performance aftermarket. That’s why the most progressive companies and associations from the consumer electronics and automotive industries have come together to form the Automotive Electronics Connectivity Committee (AECC). John Waraniak, SEMA’s vice president of vehicle technology was instrumental in creating the AECC.

“The AECC is a cross-industry, cross-association collaborative alliance,” Waraniak said. “It provides a forum and acts as a catalyst to help SEMA members address in-vehicle electronics integration and installation concerns. Open architectures, interoperability and accessory-friendly systems drive integration, and integration drives innovation and growth. I believe the aftermarket will play an increasing role in the development of cars that don’t crash and devices that don’t distract as consumers and enthusiasts demand seamless integration of electronics whether they are built in, brought in or beamed in to their vehicles. While OEMs may own the vehicle product-development process, they do not own innovation.”

The committee is comprised of representatives from SEMA, the Consumer Electronics Association (CEA), the Mobile Enhancement Retailers Association (MERA), the Society of Automotive Engineers (SAE) and the Convergence Transportation Electronics Association (CTEA). Administered by the CEA, the committee works to stimulate collaboration and bring disparate points of view together to benefit consumers by accelerating the integration of consumer electronics into automobiles. The companies participating in the AECC represent virtually every segment of the mobile-electronics and automotive industries. With automakers becoming more willing to discuss and explore open platforms for infotainment and application integration, SEMA is currently considering the addition of electronics development (ECAD) to the association’s Technology Transfer Program.

Consumer spending on in-car consumer electronics (both from the factory and from specialty-equipment manufacturers) grew 21.5% in 2007 to $11.4 billion, according to a recent CEA study, which also concluded that consumers are more likely to spend money on electronic products that are not permanently installed in vehicles than on permanently installed products. The J.D. Power Automotive Performance, Execution and Layout Study, which measures “owner delight with the design, content, layout and performance of their new vehicles,” found that consumers have given increasingly high marks to audio, entertainment and navigation systems.

AECC members believe that by openly collaborating and working together, the automotive electronics and consumer electronics industries as well as service providers, installers, restylers and dealers can meet increasing consumer demands for personalization and customization and grow as a whole as the mobile-electronics industry continues to evolve. The ultimate benefit will be decreased warranty concerns, increased profitability and increased customer satisfaction.

SEMA News -- April 2009
LEGISLATIVE AND TECHNICAL AFFAIRS

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

Massachusetts

Street Rods/Custom Vehicles: Governor Deval Patrick “pocket vetoed” SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles after he failed to sign the bill within 10 days of receiving it. SEMA has pledged to work to resolve concerns raised by the governor and his administration so that the bill may be revived in 2009. The Massachusetts bill defined a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allowed kit cars and replica vehicles to be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble.

Montana

Exhaust Noise: Montana legislation to repeal a SEMA-sponsored law enacted in 2007 that permits vehicles with modified exhaust systems that do not emit an excess of 95 decibels was tabled in committee. Under the repeal legislation, all exhaust system modifications that are subjectively determined to increase noise would have been illegal. Similar legislation to restrict exhaust system noise has been introduced this year in Connecticut and New Jersey. The Montana bill is effectively dead for the year.

New York

Tire Efficiency: Legislation that seeks to require the development of a statewide program to mandate that replacement tires for passenger cars and light trucks be as energy efficient as tires sold as original equipment was reintroduced in the New York State Legislature. SEMA has defeated previous versions of this bill. While the measure contains a SEMA-drafted exemption for some hobbyist tires, including limited-production and off-road tires, SEMA has consistently recommended that the bill be rejected, since the replacement-tire efficiency program conflicts with federal law by regulating fuel economy, imposes substantial redesign costs on tire manufacturers, competes with federal consumer information requirements and essentially sets a 50-state standard.

Oregon

Aftermarket Parts: The Oregon House Environment and Water Committee will consider SEMA-opposed legislation to prohibit the sale and distribution of aftermarket motor vehicle parts if alternatives are available that “decrease greenhouse gas emissions from motor vehicles.” The bill is primarily focused on aftermarket tires and would authorize the Environmental Quality Commission to implement enforcement regulations, likely based on a rolling-resistance calculation. The bill was introduced at the request of Governor Theodore Kulongoski.

Texas

Nitrous Oxide: Texas has introduced SEMA-model legislation to allow for nitrous-oxide systems on motor vehicles. The bill allows the system if the vehicle is en route to or from a track, the device is inoperative or the container has been removed from the vehicle.

Virginia

Inoperable Vehicles: The sponsor for SEMA-opposed legislation to allow the city of Newport News to adopt a more restrictive inoperable vehicle ordinance has withdrawn the bill from consideration by the Virginia Legislature. Under the bill, the city could have adopted an ordinance prohibiting any person from keeping more than one inoperable motor vehicle on private property except within a fully enclosed building. Further, the bill required that the one vehicle now be shielded from view by the “installation of an opaque fence.” In 2004, Virginia signed into law a SEMA-negotiated bill to exempt at least two inoperable vehicles being actively repaired or restored on private property from any local ordinance if shielded or screened from public view. The law defines “shielded or screened from view” as not visible by someone standing at ground level from outside of the property on which the inoperable vehicles are located. This measure would have changed the rules of this fairly negotiated compromise.

Wyoming

Rods/Custom Vehicles: SEMA-model legislation to create a vehicle registration and titling class for street rods and custom vehicles was approved by the Wyoming House and awaits final passage by the Wyoming Senate before being sent to the governor for his signature. The measure defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows kit cars and replica vehicles to be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble.

STATE UPDATE

State Automotive Enthusiast Leadership Caucus: Two members of the State Automotive Enthusiast Leadership Caucus won seats in the U.S. Congress. Former State Senators Tom McClintock and Bill Posey were sworn into the 111th Congress in January. No stranger to SEMA members in California, Tom McClintock has been a long-time supporter of the automotive hobby in the California State Legislature. In 2004, he worked tirelessly against the repeal of the 30-year rolling emissions exemption in the state. An avid enthusiast, Bill Posey introduced and worked to enact into law the SEMA Street Rod/Custom Vehicle bill in Florida. In addition, fellow caucus members Johnny Key of Arkansas, Bob Huff of California, David Parks of Nevada and Daylin Leach of Pennsylvania were successful in their campaigns to move from the House to the Senate in their respective legislatures. Founded in 2005 and supported by SEMA, the caucus is a nonpartisan group of approximately 350 state legislators whose common thread is a love and appreciation for automobiles. Working with the state legislatures in recent years, SEMA has sought legislation to overhaul existing statutes and create brand-new programs to safeguard and expand the automotive hobby. These efforts have brought a series of significant legislative and regulatory accomplishments for the specialty-equipment industry on issues ranging from equipment standards and registration classifications to emissions test policies and hobbyist rights.

FEDERAL UPDATE

Vehicle Scrappage Programs: SEMA is opposing efforts in Congress to provide federal funds for a “Cash for Clunkers” program. The program accelerates the normal retirement of vehicles through the purchase of older cars that are then typically crushed into blocks of scrap metal. As a consequence, the vehicle hobby loses potential collector cars and parts forever. In early 2009, thousands of SEMA members and motor-vehicle enthusiasts responded to a call for action urging lawmakers to reject the program as part of the economic stimulus bill passed into law in February. The effort was a success. Both the House and Senate rejected inclusion of vehicle scrappage. Two proposals were put forth during the debate. The first was an $8 billion program targeting SUVs and pickups of any year that make less than 18 mpg. The second would have provided $16 billion worth of cash vouchers to individuals making less than $50,000 a year ($75,000 for families) who allowed their turned-in cars to be destroyed. The two Cash for Clunker proposals may reemerge later this year, so SEMA will remain vigilant in educating legislators on the need to oppose programs that do not spur car sales, reduce emissions or raise fuel economy. The economic stimulus bill included a SEMA-supported amendment allowing taxpayers to claim a tax deduction for state and local sales and excise taxes when they buy a new car in 2009.

Greenhouse Gases: The U.S. Environmental Protection Agency (EPA) is reconsidering its decision to deny California and 13 other states from regulating greenhouse gases emitted from motor vehicles. The EPA had cited a 2007 law raising the Corporate Average Fuel Economy (CAFE) standards as justification for denying the waiver request to regulate carbon dioxide (CO2) emissions starting in 2009. The EPA ruled that the new CAFE law will produce greater CO2 savings than the California program and that a federal approach provides a national solution, as opposed to a potential patchwork of state rules. SEMA has joined with the automakers in support of a national approach to greenhouse gases, contending that the California rule is actually a fuel-economy regulation. Only the federal government can establish fuel standards. The EPA will review public comments before making a decision on the waiver later this year.

Early-Warning Rule: The National Highway Traffic Safety Administration (NHTSA) has proposed increasing the reporting threshold under the early-warning rules, but the changes should have no impact on most manufacturers of specialty equipment. Under the current rules, all vehicle and equipment manufacturers must provide the NHTSA with notice of fatalities that are alleged or proven to be the result of product defects. Furthermore, large-volume vehicle manufacturers (more than 500 vehicles annually), large-volume tire manufacturers (more than 15,000 tires of the same size and design annually) and child restraint-system manufacturers must supply the NHTSA with “early-warning” information about injuries, property damage, consumer complaints, warranty claims, field reports and production data every calendar quarter. Equipment manufacturers are not required to supply early-warning materials, but reporting is triggered if there is an incident or allegation involving a death or the company issues recall notices or advisories referencing a defect or malfunction. The NHTSA is proposing to raise the threshold for large-volume vehicle manufacturers to 5,000 or more vehicles and require more recall information from tire manufacturers.

Labor Legislation: President Obama signed into law the “Ledbetter Fair Pay Act,” which overturns a 2007 Supreme Court ruling that enforced a 180-day statute of limitations for filing a pay discrimination complaint. At issue was whether an employee could pursue an allegation of pay discrimination beyond a 180-day filing deadline. The new law relaxes the statute of limitations and clarifies that discrimination can be alleged each time a paycheck is issued. SEMA joined the National Association of Manufacturers and the U.S. Chamber of Commerce in opposing the bill since it could potentially open the door to frivolous litigation and open-ended lawsuits without time limits.

Wilderness Legislation: The House of Representatives is expected to approve legislation already passed by the U.S. Senate to add more than 2 million acres to the National Wilderness Preservation System. The “wilderness” designation is consequential since no mechanized activity is permitted on lands so designated. The issue is of keen interest to off-roaders and the SEMA-member companies that market products to those groups. The legislation designates wilderness in nine states and establishes several new national parks, monuments and conservation areas. Covered areas include portions in and around Joshua Tree National Park and the Eastern Sierras in California, Owyhee-Bruneau Canyonlands in Idaho, Mt. Hood in Oregon and Zion National Park in Utah. Some roads and trails were excluded from the wilderness designations and, therefore, remain available to the OHV enthusiast. Nevertheless, SEMA expressed regret that lawmakers had moved too quickly since not all roads and trails received protection.

SEMA News -- April 2009
LEGISLATIVE AND TECHNICAL AFFAIRS

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

Massachusetts

Street Rods/Custom Vehicles: Governor Deval Patrick “pocket vetoed” SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles after he failed to sign the bill within 10 days of receiving it. SEMA has pledged to work to resolve concerns raised by the governor and his administration so that the bill may be revived in 2009. The Massachusetts bill defined a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allowed kit cars and replica vehicles to be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble.

Montana

Exhaust Noise: Montana legislation to repeal a SEMA-sponsored law enacted in 2007 that permits vehicles with modified exhaust systems that do not emit an excess of 95 decibels was tabled in committee. Under the repeal legislation, all exhaust system modifications that are subjectively determined to increase noise would have been illegal. Similar legislation to restrict exhaust system noise has been introduced this year in Connecticut and New Jersey. The Montana bill is effectively dead for the year.

New York

Tire Efficiency: Legislation that seeks to require the development of a statewide program to mandate that replacement tires for passenger cars and light trucks be as energy efficient as tires sold as original equipment was reintroduced in the New York State Legislature. SEMA has defeated previous versions of this bill. While the measure contains a SEMA-drafted exemption for some hobbyist tires, including limited-production and off-road tires, SEMA has consistently recommended that the bill be rejected, since the replacement-tire efficiency program conflicts with federal law by regulating fuel economy, imposes substantial redesign costs on tire manufacturers, competes with federal consumer information requirements and essentially sets a 50-state standard.

Oregon

Aftermarket Parts: The Oregon House Environment and Water Committee will consider SEMA-opposed legislation to prohibit the sale and distribution of aftermarket motor vehicle parts if alternatives are available that “decrease greenhouse gas emissions from motor vehicles.” The bill is primarily focused on aftermarket tires and would authorize the Environmental Quality Commission to implement enforcement regulations, likely based on a rolling-resistance calculation. The bill was introduced at the request of Governor Theodore Kulongoski.

Texas

Nitrous Oxide: Texas has introduced SEMA-model legislation to allow for nitrous-oxide systems on motor vehicles. The bill allows the system if the vehicle is en route to or from a track, the device is inoperative or the container has been removed from the vehicle.

Virginia

Inoperable Vehicles: The sponsor for SEMA-opposed legislation to allow the city of Newport News to adopt a more restrictive inoperable vehicle ordinance has withdrawn the bill from consideration by the Virginia Legislature. Under the bill, the city could have adopted an ordinance prohibiting any person from keeping more than one inoperable motor vehicle on private property except within a fully enclosed building. Further, the bill required that the one vehicle now be shielded from view by the “installation of an opaque fence.” In 2004, Virginia signed into law a SEMA-negotiated bill to exempt at least two inoperable vehicles being actively repaired or restored on private property from any local ordinance if shielded or screened from public view. The law defines “shielded or screened from view” as not visible by someone standing at ground level from outside of the property on which the inoperable vehicles are located. This measure would have changed the rules of this fairly negotiated compromise.

Wyoming

Rods/Custom Vehicles: SEMA-model legislation to create a vehicle registration and titling class for street rods and custom vehicles was approved by the Wyoming House and awaits final passage by the Wyoming Senate before being sent to the governor for his signature. The measure defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows kit cars and replica vehicles to be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble.

STATE UPDATE

State Automotive Enthusiast Leadership Caucus: Two members of the State Automotive Enthusiast Leadership Caucus won seats in the U.S. Congress. Former State Senators Tom McClintock and Bill Posey were sworn into the 111th Congress in January. No stranger to SEMA members in California, Tom McClintock has been a long-time supporter of the automotive hobby in the California State Legislature. In 2004, he worked tirelessly against the repeal of the 30-year rolling emissions exemption in the state. An avid enthusiast, Bill Posey introduced and worked to enact into law the SEMA Street Rod/Custom Vehicle bill in Florida. In addition, fellow caucus members Johnny Key of Arkansas, Bob Huff of California, David Parks of Nevada and Daylin Leach of Pennsylvania were successful in their campaigns to move from the House to the Senate in their respective legislatures. Founded in 2005 and supported by SEMA, the caucus is a nonpartisan group of approximately 350 state legislators whose common thread is a love and appreciation for automobiles. Working with the state legislatures in recent years, SEMA has sought legislation to overhaul existing statutes and create brand-new programs to safeguard and expand the automotive hobby. These efforts have brought a series of significant legislative and regulatory accomplishments for the specialty-equipment industry on issues ranging from equipment standards and registration classifications to emissions test policies and hobbyist rights.

FEDERAL UPDATE

Vehicle Scrappage Programs: SEMA is opposing efforts in Congress to provide federal funds for a “Cash for Clunkers” program. The program accelerates the normal retirement of vehicles through the purchase of older cars that are then typically crushed into blocks of scrap metal. As a consequence, the vehicle hobby loses potential collector cars and parts forever. In early 2009, thousands of SEMA members and motor-vehicle enthusiasts responded to a call for action urging lawmakers to reject the program as part of the economic stimulus bill passed into law in February. The effort was a success. Both the House and Senate rejected inclusion of vehicle scrappage. Two proposals were put forth during the debate. The first was an $8 billion program targeting SUVs and pickups of any year that make less than 18 mpg. The second would have provided $16 billion worth of cash vouchers to individuals making less than $50,000 a year ($75,000 for families) who allowed their turned-in cars to be destroyed. The two Cash for Clunker proposals may reemerge later this year, so SEMA will remain vigilant in educating legislators on the need to oppose programs that do not spur car sales, reduce emissions or raise fuel economy. The economic stimulus bill included a SEMA-supported amendment allowing taxpayers to claim a tax deduction for state and local sales and excise taxes when they buy a new car in 2009.

Greenhouse Gases: The U.S. Environmental Protection Agency (EPA) is reconsidering its decision to deny California and 13 other states from regulating greenhouse gases emitted from motor vehicles. The EPA had cited a 2007 law raising the Corporate Average Fuel Economy (CAFE) standards as justification for denying the waiver request to regulate carbon dioxide (CO2) emissions starting in 2009. The EPA ruled that the new CAFE law will produce greater CO2 savings than the California program and that a federal approach provides a national solution, as opposed to a potential patchwork of state rules. SEMA has joined with the automakers in support of a national approach to greenhouse gases, contending that the California rule is actually a fuel-economy regulation. Only the federal government can establish fuel standards. The EPA will review public comments before making a decision on the waiver later this year.

Early-Warning Rule: The National Highway Traffic Safety Administration (NHTSA) has proposed increasing the reporting threshold under the early-warning rules, but the changes should have no impact on most manufacturers of specialty equipment. Under the current rules, all vehicle and equipment manufacturers must provide the NHTSA with notice of fatalities that are alleged or proven to be the result of product defects. Furthermore, large-volume vehicle manufacturers (more than 500 vehicles annually), large-volume tire manufacturers (more than 15,000 tires of the same size and design annually) and child restraint-system manufacturers must supply the NHTSA with “early-warning” information about injuries, property damage, consumer complaints, warranty claims, field reports and production data every calendar quarter. Equipment manufacturers are not required to supply early-warning materials, but reporting is triggered if there is an incident or allegation involving a death or the company issues recall notices or advisories referencing a defect or malfunction. The NHTSA is proposing to raise the threshold for large-volume vehicle manufacturers to 5,000 or more vehicles and require more recall information from tire manufacturers.

Labor Legislation: President Obama signed into law the “Ledbetter Fair Pay Act,” which overturns a 2007 Supreme Court ruling that enforced a 180-day statute of limitations for filing a pay discrimination complaint. At issue was whether an employee could pursue an allegation of pay discrimination beyond a 180-day filing deadline. The new law relaxes the statute of limitations and clarifies that discrimination can be alleged each time a paycheck is issued. SEMA joined the National Association of Manufacturers and the U.S. Chamber of Commerce in opposing the bill since it could potentially open the door to frivolous litigation and open-ended lawsuits without time limits.

Wilderness Legislation: The House of Representatives is expected to approve legislation already passed by the U.S. Senate to add more than 2 million acres to the National Wilderness Preservation System. The “wilderness” designation is consequential since no mechanized activity is permitted on lands so designated. The issue is of keen interest to off-roaders and the SEMA-member companies that market products to those groups. The legislation designates wilderness in nine states and establishes several new national parks, monuments and conservation areas. Covered areas include portions in and around Joshua Tree National Park and the Eastern Sierras in California, Owyhee-Bruneau Canyonlands in Idaho, Mt. Hood in Oregon and Zion National Park in Utah. Some roads and trails were excluded from the wilderness designations and, therefore, remain available to the OHV enthusiast. Nevertheless, SEMA expressed regret that lawmakers had moved too quickly since not all roads and trails received protection.

SEMA News -- April 2009
LEGISLATIVE AND TECHNICAL AFFAIRS

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

Massachusetts

Street Rods/Custom Vehicles: Governor Deval Patrick “pocket vetoed” SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles after he failed to sign the bill within 10 days of receiving it. SEMA has pledged to work to resolve concerns raised by the governor and his administration so that the bill may be revived in 2009. The Massachusetts bill defined a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allowed kit cars and replica vehicles to be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble.

Montana

Exhaust Noise: Montana legislation to repeal a SEMA-sponsored law enacted in 2007 that permits vehicles with modified exhaust systems that do not emit an excess of 95 decibels was tabled in committee. Under the repeal legislation, all exhaust system modifications that are subjectively determined to increase noise would have been illegal. Similar legislation to restrict exhaust system noise has been introduced this year in Connecticut and New Jersey. The Montana bill is effectively dead for the year.

New York

Tire Efficiency: Legislation that seeks to require the development of a statewide program to mandate that replacement tires for passenger cars and light trucks be as energy efficient as tires sold as original equipment was reintroduced in the New York State Legislature. SEMA has defeated previous versions of this bill. While the measure contains a SEMA-drafted exemption for some hobbyist tires, including limited-production and off-road tires, SEMA has consistently recommended that the bill be rejected, since the replacement-tire efficiency program conflicts with federal law by regulating fuel economy, imposes substantial redesign costs on tire manufacturers, competes with federal consumer information requirements and essentially sets a 50-state standard.

Oregon

Aftermarket Parts: The Oregon House Environment and Water Committee will consider SEMA-opposed legislation to prohibit the sale and distribution of aftermarket motor vehicle parts if alternatives are available that “decrease greenhouse gas emissions from motor vehicles.” The bill is primarily focused on aftermarket tires and would authorize the Environmental Quality Commission to implement enforcement regulations, likely based on a rolling-resistance calculation. The bill was introduced at the request of Governor Theodore Kulongoski.

Texas

Nitrous Oxide: Texas has introduced SEMA-model legislation to allow for nitrous-oxide systems on motor vehicles. The bill allows the system if the vehicle is en route to or from a track, the device is inoperative or the container has been removed from the vehicle.

Virginia

Inoperable Vehicles: The sponsor for SEMA-opposed legislation to allow the city of Newport News to adopt a more restrictive inoperable vehicle ordinance has withdrawn the bill from consideration by the Virginia Legislature. Under the bill, the city could have adopted an ordinance prohibiting any person from keeping more than one inoperable motor vehicle on private property except within a fully enclosed building. Further, the bill required that the one vehicle now be shielded from view by the “installation of an opaque fence.” In 2004, Virginia signed into law a SEMA-negotiated bill to exempt at least two inoperable vehicles being actively repaired or restored on private property from any local ordinance if shielded or screened from public view. The law defines “shielded or screened from view” as not visible by someone standing at ground level from outside of the property on which the inoperable vehicles are located. This measure would have changed the rules of this fairly negotiated compromise.

Wyoming

Rods/Custom Vehicles: SEMA-model legislation to create a vehicle registration and titling class for street rods and custom vehicles was approved by the Wyoming House and awaits final passage by the Wyoming Senate before being sent to the governor for his signature. The measure defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows kit cars and replica vehicles to be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble.

STATE UPDATE

State Automotive Enthusiast Leadership Caucus: Two members of the State Automotive Enthusiast Leadership Caucus won seats in the U.S. Congress. Former State Senators Tom McClintock and Bill Posey were sworn into the 111th Congress in January. No stranger to SEMA members in California, Tom McClintock has been a long-time supporter of the automotive hobby in the California State Legislature. In 2004, he worked tirelessly against the repeal of the 30-year rolling emissions exemption in the state. An avid enthusiast, Bill Posey introduced and worked to enact into law the SEMA Street Rod/Custom Vehicle bill in Florida. In addition, fellow caucus members Johnny Key of Arkansas, Bob Huff of California, David Parks of Nevada and Daylin Leach of Pennsylvania were successful in their campaigns to move from the House to the Senate in their respective legislatures. Founded in 2005 and supported by SEMA, the caucus is a nonpartisan group of approximately 350 state legislators whose common thread is a love and appreciation for automobiles. Working with the state legislatures in recent years, SEMA has sought legislation to overhaul existing statutes and create brand-new programs to safeguard and expand the automotive hobby. These efforts have brought a series of significant legislative and regulatory accomplishments for the specialty-equipment industry on issues ranging from equipment standards and registration classifications to emissions test policies and hobbyist rights.

FEDERAL UPDATE

Vehicle Scrappage Programs: SEMA is opposing efforts in Congress to provide federal funds for a “Cash for Clunkers” program. The program accelerates the normal retirement of vehicles through the purchase of older cars that are then typically crushed into blocks of scrap metal. As a consequence, the vehicle hobby loses potential collector cars and parts forever. In early 2009, thousands of SEMA members and motor-vehicle enthusiasts responded to a call for action urging lawmakers to reject the program as part of the economic stimulus bill passed into law in February. The effort was a success. Both the House and Senate rejected inclusion of vehicle scrappage. Two proposals were put forth during the debate. The first was an $8 billion program targeting SUVs and pickups of any year that make less than 18 mpg. The second would have provided $16 billion worth of cash vouchers to individuals making less than $50,000 a year ($75,000 for families) who allowed their turned-in cars to be destroyed. The two Cash for Clunker proposals may reemerge later this year, so SEMA will remain vigilant in educating legislators on the need to oppose programs that do not spur car sales, reduce emissions or raise fuel economy. The economic stimulus bill included a SEMA-supported amendment allowing taxpayers to claim a tax deduction for state and local sales and excise taxes when they buy a new car in 2009.

Greenhouse Gases: The U.S. Environmental Protection Agency (EPA) is reconsidering its decision to deny California and 13 other states from regulating greenhouse gases emitted from motor vehicles. The EPA had cited a 2007 law raising the Corporate Average Fuel Economy (CAFE) standards as justification for denying the waiver request to regulate carbon dioxide (CO2) emissions starting in 2009. The EPA ruled that the new CAFE law will produce greater CO2 savings than the California program and that a federal approach provides a national solution, as opposed to a potential patchwork of state rules. SEMA has joined with the automakers in support of a national approach to greenhouse gases, contending that the California rule is actually a fuel-economy regulation. Only the federal government can establish fuel standards. The EPA will review public comments before making a decision on the waiver later this year.

Early-Warning Rule: The National Highway Traffic Safety Administration (NHTSA) has proposed increasing the reporting threshold under the early-warning rules, but the changes should have no impact on most manufacturers of specialty equipment. Under the current rules, all vehicle and equipment manufacturers must provide the NHTSA with notice of fatalities that are alleged or proven to be the result of product defects. Furthermore, large-volume vehicle manufacturers (more than 500 vehicles annually), large-volume tire manufacturers (more than 15,000 tires of the same size and design annually) and child restraint-system manufacturers must supply the NHTSA with “early-warning” information about injuries, property damage, consumer complaints, warranty claims, field reports and production data every calendar quarter. Equipment manufacturers are not required to supply early-warning materials, but reporting is triggered if there is an incident or allegation involving a death or the company issues recall notices or advisories referencing a defect or malfunction. The NHTSA is proposing to raise the threshold for large-volume vehicle manufacturers to 5,000 or more vehicles and require more recall information from tire manufacturers.

Labor Legislation: President Obama signed into law the “Ledbetter Fair Pay Act,” which overturns a 2007 Supreme Court ruling that enforced a 180-day statute of limitations for filing a pay discrimination complaint. At issue was whether an employee could pursue an allegation of pay discrimination beyond a 180-day filing deadline. The new law relaxes the statute of limitations and clarifies that discrimination can be alleged each time a paycheck is issued. SEMA joined the National Association of Manufacturers and the U.S. Chamber of Commerce in opposing the bill since it could potentially open the door to frivolous litigation and open-ended lawsuits without time limits.

Wilderness Legislation: The House of Representatives is expected to approve legislation already passed by the U.S. Senate to add more than 2 million acres to the National Wilderness Preservation System. The “wilderness” designation is consequential since no mechanized activity is permitted on lands so designated. The issue is of keen interest to off-roaders and the SEMA-member companies that market products to those groups. The legislation designates wilderness in nine states and establishes several new national parks, monuments and conservation areas. Covered areas include portions in and around Joshua Tree National Park and the Eastern Sierras in California, Owyhee-Bruneau Canyonlands in Idaho, Mt. Hood in Oregon and Zion National Park in Utah. Some roads and trails were excluded from the wilderness designations and, therefore, remain available to the OHV enthusiast. Nevertheless, SEMA expressed regret that lawmakers had moved too quickly since not all roads and trails received protection.

SEMA News -- April 2009

By Linda Spencer

Affordable U.S. Products Designed to Fit Region’s Market Sought

South Africans seek functional off-road accessories rather than those for show, given the serious off-roading excursions undertaken by many enthusiasts. Among the top-selling products for SUVs are protective and stylized aftermarket products, such as bull bars; recovery products, such as winches; performance products, such as engine enhancements; and traction products, such as specialty off-road tires and suspension. Courtesy of Leisure Wheels

For the last eight years, the activity of accessorizing and improving the performance of vehicles has transformed from a hobby to a fully fledged culture of fierce competition,” said Jaisivir Sewpual of the U.S. Embassy in Cape Town, South Africa. “In the race to individualize and distinguish their vehicles from others, enthusiasts constantly seek innovative, authentic specialty components and accessories. In this lucrative segment, South Africans are highly receptive to U.S. brands and often follow trends set in the United States.”

A group of journalists from leading South African enthusiast magazines along with a team of importers/distributors provided their insights into the market through a joint U.S. Embassy/SEMA survey that the embassy carried out over the past six months. The middle class in South Africa—especially the black middle class—has been a driving force in the growth of the specialty-equipment market.

“The emerging black middle-class segment of the South African population is not only satisfied with a new vehicle, but will spend considerable amounts of money customizing and accessorizing their vehicles,” Sewpual said. “Their need to be different and to distinguish themselves and their vehicles is incredibly high. Due to this demand, there has been a surge in the number of new automotive styling and tuning retailers/workshops around the country.”

There is a lot of focus on aftermarket accessories in South Africa, said Minesh Bhagaloo, a journalist for some of the largest daily newspapers in South Africa, including The Star, The Pretoria News and Cape Times, but affordability is critical. Buyers are very price conscious, as disposable income levels are still modest. As several distributors noted, higher-priced items are often out of the reach of most South Africans, and minimum order requirements often are a frustration to the typically smaller-sized importer.

European and Japanese cars are among the most often customized, such as this highly accessorized Honda. Courtesy of Top Car

This problem has gotten worse because the global crisis affects the car and tuning markets in South Africa, which had enjoyed a number of years of strong growth. The National Association of Automobile Manufacturers (NAAMSA) reported on its website that increasingly tight credit and the negative wealth effect of the global financial crisis resulting from falling house prices and asset values, sharp falls in business confidence and consumer sentiment have sharply curbed vehicle sales in this market of 4.6 million vehicles over the past several months.

One importer noted that it is even more critical these days that overseas manufacturers price their products by taking into account poor exchange rates, customs duties on certain items and freight. All are factors to be considered, but only products that can be reasonably priced will succeed. Also, the cost of an item can be prohibitive, even though it may be a sought-after item.

The South African vehicle market has indeed slumped in line with the international economic slowdown. Specialty-equipment businesses are obviously affected by this, as are all other business sectors.

BMW 3 Series

While the economic crisis has quelled demand across the board, the customization market for SUVs and off-road vehicles remains one of the strongest. Neil Harison of SA 4x4 magazine ventured a guess that the light-truck/off-road side of the market totaled 30%–40% of the overall South African specialty-equipment market. South Africans seek functional off-road accessories rather than those merely for show because of the serious off-roading excursions undertaken by many enthusiasts. Among the top-selling products for SUVs are protective and stylized aftermarket products, such as bull bars; recovery products, such as winches; performance products, such as engine enhancements; and traction products, such as specialty off-road tires and suspension. “However, there is a large demand for off-road trucks and SUVs due to the country’s large open spaces,” Angus Thompson, deputy editor of Top Car South Africa, said. “On the SUV and off-road side of things, it’s the older people with money who are buying the products that will enable them to do overlanding or camping in the bush. This is also growing in popularity as more and more South Africans use their 4x4s to explore not only their own country, but also the rest of Africa.”

Honda Civic

Jannie Herbst of Leisure Wheels said that SUVs and light pickups for overlanding and adventure form about 95% of the market his publication caters to.“In our magazine’s specific market, where we focus on overlanding adventures and lifestyle-oriented vehicles, that would be the Toyota Hilux pickup; Land Rover Defender; Toyota Land Cruiser Prado, 70 and 200 series; Mitsubishi Pajero and Nissan Navara pickup,” Herbst said. “The remaining 5% is made up of vehicles, such as the Land Rover Defender, which is still sold new here, and the Toyota Land Cruiser 70 wagon, which are dedicated overlanding-type vehicles.”

Thompson added that young guys with relatively little disposable income form the majority of those modifying their cars in South Africa. Among the most popular cars to accessorize are the BMW 3 Series, Honda Civic, Nissan 350Z and Volkswagen Golf.

Most of the cars on South African roads are European, Japanese or Korean brands, while American brands, such as Jeep, Dodge and Cadillac, sell in smaller numbers. Bhagaloo also emphasized this aspect of the market.

“We don’t have the range of American cars that you do,” he said. “Our market is probably more German and Japanese. Your aftermarket offerings need to factor this in. See www.naamsa.co.za for our monthly car-sales figures.”

Nissan 350Z

Many of the U.S. brands sold in South Africa are European rather than U.S. specs. Australia, Japan, South Africa and the United Kingdom drive on the opposite side of the road compared to in the United States, necessitating fitment changes in a number of U.S.-made accessories.

Those interviewed for the U.S. Embassy/SEMA study highlighted the challenges faced by the specialty-equipment industry. Unlike in many other markets, government regulations did not make it on the short list of problems. We were repeatedly told that South Africa’s legislation demands only that a vehicle be road-worthy, and there are effectively no limits on customization.

“The only legal restrictions we have pertain to the amount of noise certain aftermarket exhausts and mufflers make as well as the degree of window tinting,” Thompson said, “but this is seldom enforced by the authorities.”

Volkswagen Golf

Far and away the largest challenge faced by South African companies was counterfeit products. Businesses representatives and journalists alike noted the increasing number of inferior and cheap products flooding the market. They also said that U.S. products are more expensive in the South African market due to tariffs ranging between 5%–30%. This significantly raises the cost of U.S. products and puts American manufacturers at a disadvantage against competitors in countries in which South Africa has free-trade agreements, including Europe. U.S. products are more expensive in South Africa due to the rapid depreciation of the local currency, the rand, with an exchange rate of 10.10 rand to $1 compared to 7.1 rand to the dollar 18 months ago.

“As in other parts of the world, the ‘new vehicle’ situation in South Africa is dire,” Herbst said. “Almost 5,000 vehicles are repossessed every month, and the used-car market is hugely oversaturated. Meanwhile, many specialty-equipment businesses are coming up with innovative ways to brave the storm. And our magazine recently posted its highest circulation figures for the fiscal year.”

A South African importer echoed that view, saying “…a company that can work around that obstacle will find themselves in a good position to penetrate the market.” He noted that U.S. products were present in the major South African cities of Cape Town, the seat of the national legislature; Pretoria, where the government executive branch is based; Johannesburg, known as the commercial capital; and Durban, a fast-growing port city on the east coast. The U.S. Embassy emphasized that personal interviews with local retailers and importers indicated their eagerness to identify and establish distributor agreements with U.S. suppliers.

Below are links to lists of some of the top importers/distributors and media in the South African market. Also, a new trade show will take place this spring—Automechanika South Africa in Johannesburg. More information is available at www.automechanika.de.

Enthusiast Media

A SEMA-compiled list of South African media is available to members online at www.sema.org/international.

Importers/Distributors

SEMA has a new list of distributors/importers available for members online at www.sema.org/international. The list was compiled from a number of sources, including a recent survey conducted for SEMA by the U.S. Embassy in South Africa as well as input from South African media.

SEMA News -- April 2009

By Linda Spencer

Affordable U.S. Products Designed to Fit Region’s Market Sought

South Africans seek functional off-road accessories rather than those for show, given the serious off-roading excursions undertaken by many enthusiasts. Among the top-selling products for SUVs are protective and stylized aftermarket products, such as bull bars; recovery products, such as winches; performance products, such as engine enhancements; and traction products, such as specialty off-road tires and suspension. Courtesy of Leisure Wheels

For the last eight years, the activity of accessorizing and improving the performance of vehicles has transformed from a hobby to a fully fledged culture of fierce competition,” said Jaisivir Sewpual of the U.S. Embassy in Cape Town, South Africa. “In the race to individualize and distinguish their vehicles from others, enthusiasts constantly seek innovative, authentic specialty components and accessories. In this lucrative segment, South Africans are highly receptive to U.S. brands and often follow trends set in the United States.”

A group of journalists from leading South African enthusiast magazines along with a team of importers/distributors provided their insights into the market through a joint U.S. Embassy/SEMA survey that the embassy carried out over the past six months. The middle class in South Africa—especially the black middle class—has been a driving force in the growth of the specialty-equipment market.

“The emerging black middle-class segment of the South African population is not only satisfied with a new vehicle, but will spend considerable amounts of money customizing and accessorizing their vehicles,” Sewpual said. “Their need to be different and to distinguish themselves and their vehicles is incredibly high. Due to this demand, there has been a surge in the number of new automotive styling and tuning retailers/workshops around the country.”

There is a lot of focus on aftermarket accessories in South Africa, said Minesh Bhagaloo, a journalist for some of the largest daily newspapers in South Africa, including The Star, The Pretoria News and Cape Times, but affordability is critical. Buyers are very price conscious, as disposable income levels are still modest. As several distributors noted, higher-priced items are often out of the reach of most South Africans, and minimum order requirements often are a frustration to the typically smaller-sized importer.

European and Japanese cars are among the most often customized, such as this highly accessorized Honda. Courtesy of Top Car

This problem has gotten worse because the global crisis affects the car and tuning markets in South Africa, which had enjoyed a number of years of strong growth. The National Association of Automobile Manufacturers (NAAMSA) reported on its website that increasingly tight credit and the negative wealth effect of the global financial crisis resulting from falling house prices and asset values, sharp falls in business confidence and consumer sentiment have sharply curbed vehicle sales in this market of 4.6 million vehicles over the past several months.

One importer noted that it is even more critical these days that overseas manufacturers price their products by taking into account poor exchange rates, customs duties on certain items and freight. All are factors to be considered, but only products that can be reasonably priced will succeed. Also, the cost of an item can be prohibitive, even though it may be a sought-after item.

The South African vehicle market has indeed slumped in line with the international economic slowdown. Specialty-equipment businesses are obviously affected by this, as are all other business sectors.

BMW 3 Series

While the economic crisis has quelled demand across the board, the customization market for SUVs and off-road vehicles remains one of the strongest. Neil Harison of SA 4x4 magazine ventured a guess that the light-truck/off-road side of the market totaled 30%–40% of the overall South African specialty-equipment market. South Africans seek functional off-road accessories rather than those merely for show because of the serious off-roading excursions undertaken by many enthusiasts. Among the top-selling products for SUVs are protective and stylized aftermarket products, such as bull bars; recovery products, such as winches; performance products, such as engine enhancements; and traction products, such as specialty off-road tires and suspension. “However, there is a large demand for off-road trucks and SUVs due to the country’s large open spaces,” Angus Thompson, deputy editor of Top Car South Africa, said. “On the SUV and off-road side of things, it’s the older people with money who are buying the products that will enable them to do overlanding or camping in the bush. This is also growing in popularity as more and more South Africans use their 4x4s to explore not only their own country, but also the rest of Africa.”

Honda Civic

Jannie Herbst of Leisure Wheels said that SUVs and light pickups for overlanding and adventure form about 95% of the market his publication caters to.“In our magazine’s specific market, where we focus on overlanding adventures and lifestyle-oriented vehicles, that would be the Toyota Hilux pickup; Land Rover Defender; Toyota Land Cruiser Prado, 70 and 200 series; Mitsubishi Pajero and Nissan Navara pickup,” Herbst said. “The remaining 5% is made up of vehicles, such as the Land Rover Defender, which is still sold new here, and the Toyota Land Cruiser 70 wagon, which are dedicated overlanding-type vehicles.”

Thompson added that young guys with relatively little disposable income form the majority of those modifying their cars in South Africa. Among the most popular cars to accessorize are the BMW 3 Series, Honda Civic, Nissan 350Z and Volkswagen Golf.

Most of the cars on South African roads are European, Japanese or Korean brands, while American brands, such as Jeep, Dodge and Cadillac, sell in smaller numbers. Bhagaloo also emphasized this aspect of the market.

“We don’t have the range of American cars that you do,” he said. “Our market is probably more German and Japanese. Your aftermarket offerings need to factor this in. See www.naamsa.co.za for our monthly car-sales figures.”

Nissan 350Z

Many of the U.S. brands sold in South Africa are European rather than U.S. specs. Australia, Japan, South Africa and the United Kingdom drive on the opposite side of the road compared to in the United States, necessitating fitment changes in a number of U.S.-made accessories.

Those interviewed for the U.S. Embassy/SEMA study highlighted the challenges faced by the specialty-equipment industry. Unlike in many other markets, government regulations did not make it on the short list of problems. We were repeatedly told that South Africa’s legislation demands only that a vehicle be road-worthy, and there are effectively no limits on customization.

“The only legal restrictions we have pertain to the amount of noise certain aftermarket exhausts and mufflers make as well as the degree of window tinting,” Thompson said, “but this is seldom enforced by the authorities.”

Volkswagen Golf

Far and away the largest challenge faced by South African companies was counterfeit products. Businesses representatives and journalists alike noted the increasing number of inferior and cheap products flooding the market. They also said that U.S. products are more expensive in the South African market due to tariffs ranging between 5%–30%. This significantly raises the cost of U.S. products and puts American manufacturers at a disadvantage against competitors in countries in which South Africa has free-trade agreements, including Europe. U.S. products are more expensive in South Africa due to the rapid depreciation of the local currency, the rand, with an exchange rate of 10.10 rand to $1 compared to 7.1 rand to the dollar 18 months ago.

“As in other parts of the world, the ‘new vehicle’ situation in South Africa is dire,” Herbst said. “Almost 5,000 vehicles are repossessed every month, and the used-car market is hugely oversaturated. Meanwhile, many specialty-equipment businesses are coming up with innovative ways to brave the storm. And our magazine recently posted its highest circulation figures for the fiscal year.”

A South African importer echoed that view, saying “…a company that can work around that obstacle will find themselves in a good position to penetrate the market.” He noted that U.S. products were present in the major South African cities of Cape Town, the seat of the national legislature; Pretoria, where the government executive branch is based; Johannesburg, known as the commercial capital; and Durban, a fast-growing port city on the east coast. The U.S. Embassy emphasized that personal interviews with local retailers and importers indicated their eagerness to identify and establish distributor agreements with U.S. suppliers.

Below are links to lists of some of the top importers/distributors and media in the South African market. Also, a new trade show will take place this spring—Automechanika South Africa in Johannesburg. More information is available at www.automechanika.de.

Enthusiast Media

A SEMA-compiled list of South African media is available to members online at www.sema.org/international.

Importers/Distributors

SEMA has a new list of distributors/importers available for members online at www.sema.org/international. The list was compiled from a number of sources, including a recent survey conducted for SEMA by the U.S. Embassy in South Africa as well as input from South African media.