Decades ago, the traditional business of selling used cars was most well associated with dishonest car salesman pitching old rust-buckets in leisure suits to college students and high school teens. During the past two decades, dealerships began to understand the value of trade-ins and undertook efforts to revolutionize the perception.

When taking into account the current economy, improving certified programs and extended warranty options, the old preconceptions of the used-car market no longer apply. For 2009, J.D. Power and Associates forecast vehicle sales to drop to 10.4 million units, while R.L. Polk forecasts a slightly more optimistic 10.7 million units, down from nearly 17 million in 2005.

Manufacturers of custom parts and accessories need to understand the transition from a new-vehicle-driven market to one with a heavier ratio of used models. In a recent survey of its visitors, Cars.com reports that 32% of people who were originally looking to purchase a new car are now in the market to purchase a used car. Four months earlier, the percentage of people willing to do the same was 27%.

SEMA research shows that enthusiasts have proceeded to buy used cars more than they have in the past. Year over year, the ratio of used vehicles has climbed. Based on thousands of survey responses each year, the research shows that 72% of enthusiasts drove used cars in 2008, up from 67% in 2007 and 54% in 2005.

To SEMA members, this displacement of buyers from one market to another must be understood, especially if a product portfolio has relied on new vehicle purchases during recent years. According to data from Experian Automotive, more than 137 million 2000–2008 model-year vehicles are on the road. — SEMA Research & Information Center

Decades ago, the traditional business of selling used cars was most well associated with dishonest car salesman pitching old rust-buckets in leisure suits to college students and high school teens. During the past two decades, dealerships began to understand the value of trade-ins and undertook efforts to revolutionize the perception.

When taking into account the current economy, improving certified programs and extended warranty options, the old preconceptions of the used-car market no longer apply. For 2009, J.D. Power and Associates forecast vehicle sales to drop to 10.4 million units, while R.L. Polk forecasts a slightly more optimistic 10.7 million units, down from nearly 17 million in 2005.

Manufacturers of custom parts and accessories need to understand the transition from a new-vehicle-driven market to one with a heavier ratio of used models. In a recent survey of its visitors, Cars.com reports that 32% of people who were originally looking to purchase a new car are now in the market to purchase a used car. Four months earlier, the percentage of people willing to do the same was 27%.

SEMA research shows that enthusiasts have proceeded to buy used cars more than they have in the past. Year over year, the ratio of used vehicles has climbed. Based on thousands of survey responses each year, the research shows that 72% of enthusiasts drove used cars in 2008, up from 67% in 2007 and 54% in 2005.

To SEMA members, this displacement of buyers from one market to another must be understood, especially if a product portfolio has relied on new vehicle purchases during recent years. According to data from Experian Automotive, more than 137 million 2000–2008 model-year vehicles are on the road. — SEMA Research & Information Center

Norwegian electric-vehicle (EV) maker Think Global has aspirations of expanding into the U.S. market. Although the company is presently feeling the burdens of a sour global economy, they are motivated to expand operations into North America. Managers for the brand have announced their intention to build a technical center and manufacturing plant as early as 2010.

With $25 billion in grants and funding being provided by the U.S. Department of Energy for such companies, the charge to electrify the vehicle market has a more solid grounding than it did the first time around.

Think Global is not just another startup. They have been around for 17 years and have established a presence in the electric driveline supply chain. Despite being under the Norwegian version of Chapter 11 bankruptcy, the EV maker believes it will be able to successfully establish itself within the coming months.

The company’s CEO, Richard Canny, formerly of Ford, has confidence in the domestic manufacturing base.

“The United States is quickly overtaking Europe as an attractive market for EVs and is an ideal location to engineer and build EVs," Canny said. Think Global has even begun partnering with SEMA-member A123 Systems and others for compact lithium-ion battery packs.

Other members in the business have had success campaigning their technology and integrating their products into the current fleet. AC Propulsion, developers of electric-vehicle components and systems, partnered with BMW Group on the MINI E, a limited-edition electric version of the popular modern MINI.


SEMA-member company AC Propulsion helped supply components to BMW Group’s electric MINI project. This limited-edition model will test the viability of electric powertrains in real-world conditions.

Canny has been in the United States to discuss plans of plant and engineering operations with eight different states. The outcome, if Think Global succeeds in obtaining grant money from the Department of Energy, would be a 60,000-sq.-ft. tech center and test facility that would employ 70 engineers and 300 assembly workers.

The desired first year’s production capacity is set to be 16,000 with an expected growth to 60,000 annually. Think Global's current goal is to begin production in 2010 and release an initial batch of 2,500 vehicles.

While Think Global is not as famous of a name as Ford, the two automakers have collaborated. Ford co-sold the City and Neighborhood electric vehicles earlier in the decade. Think Global's flagship car, the City, is a small two-seater that would end up selling for around $20,000 after rebates and incentives, plus an extra $80 to $90 dollar lease fee for the batteries.

Performance claims include a range of 112 miles with a recharge time of 10 hours. Think Global is currently researching possible spin-offs of the City in the form of a small cargo van, a flatbed truck and even a convertible.


Think City electric vehicle could provide SEMA members with an opportunity to engage urban dwelling consumers.

In late 2008, SEMA asked enthusiasts about their future vehicle plans and included a list of available and reasonably viable fuel options. Gasoline remained the top choice, but 17% of enthusiasts said that they would consider an electric model as their next vehicle. Whether or not they make the plunge is unclear, but the possibility is looming in the background. Most people who consider an electric vehicle an option are in their 40s and earn an average of $95,000 a year.

With a possible surge of electric vehicles headed toward the market, SEMA members are in a unique position to share their expertise, develop new products and capture new customers. — SEMA Research & Information Center

Norwegian electric-vehicle (EV) maker Think Global has aspirations of expanding into the U.S. market. Although the company is presently feeling the burdens of a sour global economy, they are motivated to expand operations into North America. Managers for the brand have announced their intention to build a technical center and manufacturing plant as early as 2010.

With $25 billion in grants and funding being provided by the U.S. Department of Energy for such companies, the charge to electrify the vehicle market has a more solid grounding than it did the first time around.

Think Global is not just another startup. They have been around for 17 years and have established a presence in the electric driveline supply chain. Despite being under the Norwegian version of Chapter 11 bankruptcy, the EV maker believes it will be able to successfully establish itself within the coming months.

The company’s CEO, Richard Canny, formerly of Ford, has confidence in the domestic manufacturing base.

“The United States is quickly overtaking Europe as an attractive market for EVs and is an ideal location to engineer and build EVs," Canny said. Think Global has even begun partnering with SEMA-member A123 Systems and others for compact lithium-ion battery packs.

Other members in the business have had success campaigning their technology and integrating their products into the current fleet. AC Propulsion, developers of electric-vehicle components and systems, partnered with BMW Group on the MINI E, a limited-edition electric version of the popular modern MINI.


SEMA-member company AC Propulsion helped supply components to BMW Group’s electric MINI project. This limited-edition model will test the viability of electric powertrains in real-world conditions.

Canny has been in the United States to discuss plans of plant and engineering operations with eight different states. The outcome, if Think Global succeeds in obtaining grant money from the Department of Energy, would be a 60,000-sq.-ft. tech center and test facility that would employ 70 engineers and 300 assembly workers.

The desired first year’s production capacity is set to be 16,000 with an expected growth to 60,000 annually. Think Global's current goal is to begin production in 2010 and release an initial batch of 2,500 vehicles.

While Think Global is not as famous of a name as Ford, the two automakers have collaborated. Ford co-sold the City and Neighborhood electric vehicles earlier in the decade. Think Global's flagship car, the City, is a small two-seater that would end up selling for around $20,000 after rebates and incentives, plus an extra $80 to $90 dollar lease fee for the batteries.

Performance claims include a range of 112 miles with a recharge time of 10 hours. Think Global is currently researching possible spin-offs of the City in the form of a small cargo van, a flatbed truck and even a convertible.


Think City electric vehicle could provide SEMA members with an opportunity to engage urban dwelling consumers.

In late 2008, SEMA asked enthusiasts about their future vehicle plans and included a list of available and reasonably viable fuel options. Gasoline remained the top choice, but 17% of enthusiasts said that they would consider an electric model as their next vehicle. Whether or not they make the plunge is unclear, but the possibility is looming in the background. Most people who consider an electric vehicle an option are in their 40s and earn an average of $95,000 a year.

With a possible surge of electric vehicles headed toward the market, SEMA members are in a unique position to share their expertise, develop new products and capture new customers. — SEMA Research & Information Center

Get the Inside Scoop on SBN Members.

Get the Inside Scoop on SBN Members.

The SEMA Technology Transfer Program has expanded its offerings of data files to include the 2010 Chevrolet Camaro. Data is available for both the V6 and V8 Camaro and includes engine, drivetrain, exterior body panels, suspension assemblies and other vehicle components available upon request.

SEMA members can access the data by visiting www.sema.org/techtransfer.

SEMA’s Technology Transfer program is a data-sharing initiative between automakers, SEMA and its members. The program’s intent is to alleviate the necessity for reverse engineering and allow manufacturers to concentrate on product development. The information available through the program is exclusive to SEMA-member manufacturers.

Visit www.sema.org/techtransfer to see the automakers currently involved and view the available data. Program data is always expanding, so if you don’t see something you need, e-mail a request to: techtransfer@sema.org.

For additional information, contact Gary Pis at garyp@sema.org or Oscar Muñoz at oscarm@sema.org.

Hundreds of exhibitors have already signed up for the 2009 SEMA Show. Have you? Don't miss May 8th deadline for priority booth space selection.

The 2009 SEMA Show opens in just seven months, and industry-leading manufacturers have already signed on for the opportunity to connect with buyers, builders, designers and suppliers from around the world.  

More than 400 exhibitors have already committed to the 2009 SEMA Show.

“It’s great to see so many manufacturers taking advantage of the value opportunities that the Show represents, specifically forging new business contacts among highly qualified attendees, strengthening existing relationships and using the Show as a platform to launch new products and technologies,” said Peter MacGillivray, SEMA vice president communications and events.

Haven’t signed up yet to exhibit at the Show? Visit www.SEMAShow.com to get started.

Click here to view the Exhibit Space Rental Agreement, exhibitor prospectus, floorplan layout and other vital exhibitor information.

To participate in the priority booth space selection, agreements and deposits must be received by Friday, May 8, 2009.

This year, SEMA has expanded the free drayage program, allotting free drayage to exhibitors with 1,000 lbs. or less of freight that is transported to the Show in their personal vehicles. Exhibitors will also enjoy rock-bottom, SEMA-negotiated room rates starting at less than $65 per night. Rooms will be available mid-April at www.SEMAShow.com (watch SEMA eNews for an announcement of when reservations open).

Questions? Contact ConvExx Show Management at sema-exhibit@convexx.com or call 702/450-7662, ext. 120.

The 2009 SEMA Show will be held November 3–6 in Las Vegas.

The Obama Administration is taking a series of steps aimed at unfreezing the credit markets for small businesses. The move is intended to augment other small-business programs contained in the recently enacted economic stimulus bill.

Under the new plan, the Treasury Department will begin making direct purchases of securities backed by Small Business Administration (SBA) loans, thereby allowing community banks and other lending institutions to start lending again. The SBA normally guarantees around $20 billion in loans a year, but the current level has dropped to about $10 billion. The credit markets have been frozen since last fall as lenders have been scared away by a rapid rise in defaults.

The Treasury Department will guarantee up to 90% of SBA loans and spend up to $15 billion purchasing the loans. Previously, the government would guarantee up to 80% on SBA loans less than $150,000 and 75% for larger loans. SBA loan fees will also be waived. The Obama Administration will pay for the initiatives with funds from the $700 billion financial rescue program.

The nation’s 21 largest banks receiving aid under the financial stability plan will have to file monthly reports on the amount of small business loans they have extended. This is in addition to quarterly reports that all banks must currently file stating the total amount of loans they make to small businesses.

The lending program joins other small-business initiatives contained in the $787 billion economic stimulus bill intended to jump-start the nation’s economy. Below are highlights:

• Extension of Bonus Depreciation: The law extends a bonus depreciation already in effect, permitting businesses to immediately write-off 50% of the cost of new equipment purchased in 2009.
  
  
• Extension of Enhanced Small Business Expensing: The law extends a small-business expensing provision, allowing small businesses to write-off up to $250,000 of capital expenditures made during 2009 rather than recovering the costs over time through depreciation, and increases the phase-out threshold to $800,000.
  
  
• 5-Year Carryback of Net Operating Losses for Small Businesses: Under previous law, net operating losses (“NOLs”) may be carried back to the two taxable years before the year that the loss arises (the “NOL carryback period”) and carried forward to each of the succeeding 20 taxable years after the year that the loss arises. For 2008, the new law extends the maximum NOL carryback period from two years to five years for small businesses with gross receipts of $15 million or less. For example, a business that currently is losing money may apply these losses to a previous profitable year and then claim a refund for taxes paid that year.

Applying for SBA Loans:
 
Borrowers can apply for loans directly with their lending institutions. Only lenders who have been approved to participate in SBA lending programs can assist you with an SBA-guaranteed loan, however. Contact your local SBA District Office to obtain a list of approved participants in your area. Follow this link to locate the District Office nearest you: www.sba.gov/localresources/index.html.
 
For answers to frequently asked questions about the new SBA loan initiative, click on this link: 
www.sba.gov/idc/groups/public/documents/sba_homepage/recovery_act_faqs.pdf.

If you have been turned down by your bank, you are still eligible to apply for a loan. Revisit your lender and specifically ask about the economic stimulus bill (the “Recovery Act”) and SBA loans. These government programs are intended to provide incentives to lenders to get more dollars in the hands of the small businesses that need it most.

The most frequently financed industries in 2008 were service, retail trade, accommodation/food service, construction firm and manufacturing.

For further details, contact Stuart Gosswein at stuartg@sema.org.

Racers and onlookers crowd around the finish line in anticipation at the 2008 SEMA Pinewood Drag Race.

The Light-Truck Accessory Alliance (TORA) has set the spirit of giving by donating a new track to be used at the second annual SEMA Pinewood Drag Race, presented by eBay Motors, held 10:00 a.m.–5:00 p.m. on August 1, 2009, at the Pasadena Convention Center in Pasadena, California.

The racetrack was purchased with proceeds from the vehicle exhibits displayed in the light-truck area of the 2008 SEMA Show. The racetrack will replace the two tracks used at last year’s event, which were donated to the charities. 

"We are excited that the SEMA TORA council has stepped up to help out this great event by donating a brand-new derby racetrack," said Gregory Parker, 2009 SEMA Pinewood Drag Race committee chair.  "The donation will not only help us out for the event this year but, hopefully, for years to come. All of us involved in the Pinewood committee, SEMA and the kids of Childhelp and Victory Junction Gang whom this event supports, want to thank the TORA for its generosity."

The drag race, held in conjunction with the 2009 SEMA Installation Banquet & Gala Fundraiser, was established last year to raise money for children’s charities Childhelp and Victory Junction Gang Camp. Childhelp is an organization that assists abused and neglected children, and Victory Junction Gang Camp provides life-changing camping experiences to disabled and chronically ill children.

“I was at the first Pinewood Drag Race last year, and it was extremely successful and a lot of fun,” said Tom Brooks, TORA Select Committee member. “I think this year’s race will be even more exciting; there will be a lot more participants, and, most importantly, the two charities will continue to benefit greatly from it.”

About 150 cars were entered in last year’s derby, raising approximately $40,000 for the two charities. Stock cars were built by children at their camps and then sponsored by SEMA-member companies through their donations to the charities. SEMA manufacturers are also allowed to design and build their own entries for the Modified class.

“Regardless of the size of the race car, if you say the word ‘race’ to SEMA members, they are ready to go,” said Brooks.

The day-long event will be followed by the SEMA Installation Banquet & Gala Fundraiser, where the 2009 SEMA Hall of Fame inductees will be announced.

To sponsor a child at the SEMA Pinewood Drag Race, presented by eBay Motors, click here.

For questions about the Pinewood Drag Races and the SEMA Installation Banquet & Gala Fundraiser, contact Lisa Moreno at 909/396-0289, ext. 105 or e-mail lisam@sema.org.