Even in the sour state of the 2008 economy, the merger and acquisition environment holds promise for visionary specialty-equipment companies bold enough to explore its opportunities. Equity fund investment groups, flush with cash from retiring baby boomers looking for sound investments, are ready to invest in specialty automotive businesses.

Whether it’s to expand, consolidate or sell your business, learn how you can tap into this capital wellspring by attending “Prepare for Sale: Specialty Vehicle M&A Environment,” one of more than 60 free seminars at the 2008 SEMA Show.

Learn how to mitigate the risks involved when buying or affiliating with a weaker competitor, and focus on the acquisitions or joint ventures that deliver untapped or under-served niches.

More and more those niches exist in overseas markets. Yet establishing export markets—dealing with national regulations, foreign legal issues, payment protection, not to mention working through language barriers—can prove costly and frustrating.

But the payoff can mean the difference between survival and insolvency, especially as domestic markets sag. Thousands of well-heeled international investors are ready to unite with innovative specialty-equipment businesses. Learn how to tap into this international capital and leverage your strengths as an American company, seen in the world’s developing markets as the leading innovators of specialty-equipment products.

Title: “Prepare for Sale: Specialty Vehicle M&A Environment”

Presenters:

• Deborah L. Douglas, Managing Director, Douglas Group, and author (“Cashing In,” “Ripe,” spring 2009)
• Tom Marx, Marx Group
  

Date/Time: Monday, November 3, 10:30 a.m.–12:00 p.m.

Location: Las Vegas Convention Center, Room N254

For more information on SEMA’s free Education Days during the 2008 SEMA Show, click here.

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Dates and locations for several upcoming SEMA-sponsored shows and activities have been announced. Details are:

SEMA SPC Youth Focus Panel, October 11, 2008 3:00 p.m., Irwindale Speedway, Irwindale, California
SEMA Webinar, "Right-On, No-Bull Guide to Marketing in a Tough Economy," October 16, 2008 10:00 a.m. (PDT)
SEMA WTC Open Meeting, November 3, 2008, Las Vegas
SEMA Show 2008, November 4–7, 2008, Las Vegas 
SEMA Dealer Day, November 5, 2008, Las Vegas
SEMA PRO Open Meeting, November 6, 2008, Las Vegas
SEMA ARMO Shopkeeper's Roundtable, November 6, 2008, Las Vegas
SEMA Speed Networking Breakfast—Powered by SBN, November 6, 2008 7:15 a.m.–9:00 a.m. (PDT), Las Vegas
SEMA Installer Certification Program, Exam date: November 13, 2008
 SEMA Webinar, "Fast Track Product Developement with 3-D Design Technology," November 20, 2008 10:00 a.m. (PDT)
SEMA MPMC Media Trade Conference, January 20–22, 2009, El Segundo, California
SEMA Technical Skills & Training Conference, March 27–28, 2009, Orlando, Florida
PAACE Automechanika Mexico, July 15–17, 2009, Mexico

For association-related travel, contact Manya Petropaki (manya.p@travelstoreusa.com) at Travel Store USA, 949/930-9268.

Looking for Some Extra Publicity for Your Industry Event?
Publicize your events through the SEMA Online Calendar of Events located at www.sema.org/calendar. The calendar is stocked with information on events taking place throughout the year, broken down by month. Examples of events featured in the calendar include consumer shows and club events, educational and training workshops, conventions and trade shows, races and more.

To submit your event details for the calendar, e-mail company name and the date(s), location and name of the event to Shirley Presecan at shirleyp@sema.org.

There is no doubt that consumers are buying fewer new vehicles due to economic concerns, high gas prices and the increased difficulty of securing financing. Throughout 2008, the number of consumers who have entered new-vehicle dealerships has been on the decline, according to data obtained from CNW Marketing Research. The company’s Floor Traffic Index, which tracks levels at which vehicle buyers actually enter new-vehicle dealerships every 10 days throughout each month, averaged just above 100 in January but dropped just below 60 in September.

There is, however, good news for the specialty-equipment industry despite weak new-vehicle demand. Demand for specialty equipment is now starting to bounce back as dealership visits continue to decline. The SEMA Performance Parts and Accessories Demand Index (PADI) which tracks consumer demand for specialty equipment, has risen over the past two months despite the dismal demand for new vehicles.

The SEMA PADI is devised from a survey administered to roughly 900 consumers each month, which helps predict whether consumers plan to purchase custom parts and accessories within the following three months of each respective survey. The chart above compares 2008 PADI data to the CNW Floor Traffic Index to show that, while consumer demand for new vehicles is dropping off, their intent to personalize the vehicles they already own is trending upward.

The SEMA PADI is calculated using a monthly random digit dial (RDD) telephone survey to collect the survey data. The margin of error is plus/minus 3.3%.

Consumers are holding on to the vehicles they already own a bit longer than they perhaps expected to, causing new-vehicle sales to continue decreasing over last year’s sales. However, high fuel prices have sparked interest in buying performance parts that also help to improve fuel economy and accessories to enhance the look and feel of older cars and trucks on the road.

For more original SEMA Market Research, visit www.sema.org/research.

The Association of European Vehicle Manufacturers (ACEA) is calling for European policymakers to implement a European-wide scrappage program to include incentives for owners who trade in cars at least eight years old. The association of 15 European automakers—which includes the European operations of General Motors and Ford—has announced its plans to forward a formal request for taxpayer-financed incentives to European policymakers. 

The ACEA issued this statement: “A scrapping scheme for older cars is a further important way of accelerating the take-up of fuel-efficient technologies and renew the car fleet on Europe’s roads, which has a clear environmental benefit. In the EU15, cars older than eight years represent 36% of the existing fleet. Their replacement with new cars would result in CO2 savings of 20 megatons per year or 4.5% of total passenger-car emissions. There would also be a significant reduction on emissions of nitrogen oxide and particulate matter.”   

European car companies are also expected to ask the European government for taxpayer-financed low-cost loans (expected to cost €40 billion Euro; $55 billion USD) citing the recently passed taxpayer loan package approved by the United States Congress to benefit the Big Three.

Sergio Marchionne, chief executive of Fiat, noted in a recent interview with Bloomberg News, "We've seen that the U.S. industry is now getting $25 billion worth of support in terms of financing. It would be absolutely necessary that the European Commission do exactly the same thing. It was $25 billion for the United States; in our case it's €40 billion because we have twice the capacity." 

Declining car sales (down about 16% in August) as well as expected high costs to fund product development to meet European-mandated CO2 reductions to be phased in by 2012 are among the factors cited by the car companies in announcing their intention to seek funding. European government officials have noted that they have not yet received a proposal from the ACEA and thus will not comment until they receive that request.

SEMA members that would like updates as they become available are encouraged to e-mail to Linda Spencer at lindas@sema.org and request future e-mails regarding a possible European scrappage program.

Two sessions added to the 2008 SEMA Show seminar schedule aim to unravel the complexities of small-business healthcare and liability insurance.

Businesses of any size need health insurance, but don't need to pay through the nose for it. In the “Health Insurance: Avoiding Double-Digit Increases” seminar, you’ll learn how to buy responsible and affordable insurance for your employees, how to get better rates by aggressively putting your best foot forward, and find the services that your agent and other insurance parties should automatically offer you.

“Insurance 101: Advice from the Experts” covers the trickier aspects of liability coverage. Make sure you carry the proper protection, as the specialty insurance market has unique definitions and coverages that set it apart from regular vehicle coverages. Knowing what’s available and how the coverage works will save you money and keep you from being "naked." This session will cover the types of coverages available for builders, restorers and owners and the advantage of specialty coverage over regular insurance.

Title: “Health Insurance: Avoiding Double-Digit Increases”
Date/Time: November 4, 10:30 a.m.—12:00 p.m.
Presenter: Chris Stickney, United Agencies

Title: “Insurance 101: Advice from the Experts”
Date/Time: November 4, 2:00 p.m.—3:30 p.m.
Panelists:

• Moderator TBD
• Bob Corwin, Alliant Insurance Services Inc.
• Scott Sky, SkySmith Insurance Agency
• Chris Stickney, United Agencies

The 2008 SEMA Show will be held November 4-7 at the Las Vegas Convention Center. For more information on Show seminars, please visit www.semashow.com and click on "Education/Events" in the menu at left.

Mercedes-Benz will make its debut as an official OEM exhibitor at the 2008 SEMA Show.

The number of automakers tapping into the customization and specialization craze at this year’s SEMA Show has reached a record high. There will be 15 manufacturers representing 32 nameplates exhibiting sophisticated displays, making major announcements and debuting new vehicles during the week.

Regarded by many as the strongest indicator of automotive specialty-equipment trends, the SEMA Show has become a must-attend event for the world’s automakers. Unlike any other event in the auto show circuit, the SEMA Show is unique because it is a trade-only event that caters to key decision makers, designers, media and businesses that form a powerful voice in the automotive industry.

“Recognizing the demand for personalization and customization, automakers are collaborating more and more to discover how they can attract niche consumers effectively,” said Bill Wolf, SEMA senior director of OEM relations.

The SEMA Show, which is dedicated to the accessories market, is designed to help SEMA members increase accessory sales. By collaborating with automakers, SEMA members are able to take advantage of new business opportunities while helping automakers sell more vehicles.

General Motors will play a major role this year with the debut of the production 2010 Chevrolet Camaro, the official vehicle of the 2008 SEMA Show. Through several of its vehicle brands, including Chevrolet, GMC, Cadillac and Saturn, GM is a long-time supporter of the SEMA Show. The automaker has exhibited at the event since 1996 and also demonstrates a strong commitment to vehicle personalization by collaborating in numerous SEMA programs that make it easier and more cost-effective for its members to develop products.

Among the new exhibitors for this year is Mercedes-Benz, who has participated in the SEMA Show in past years through various partnerships and programs. The automaker is increasing its level of involvement by becoming an exhibitor for the first time. In addition to having a customized GLK unveiled by Renntech, the well-known American tuner, there will be a Mercedes-Benz Lounge located on the 2nd level between Halls C1 and C2.

“It’s great to have Mercedes-Benz as a first-time vehicle manufacturer at the Show. It reinforces the fact that owners of luxury vehicles that typically come “fully loaded” still want to personalize their cars after it’s purchased,” added Wolf.

Joining GM and Mercedes-Benz at the SEMA Show are: Ford Motor Company, Hyundai Motor America, American Honda, Kia Motors America Inc., Lexus, Mazda North America Operations, Chrysler, Nissan North America, Scion, Subaru of America Inc., Suzuki, Toyota and Volkswagen.

In addition to exhibiting, automakers support the SEMA Show through a number of programs. SEMA's Project Vehicle Program is an example of original equipment manufacturers (OEMs) and exhibiting member companies working together to attract buyers, media and, eventually, consumers. The program begins with OEM brand teams providing stock vehicles to SEMA-member companies.

SEMA members equip the stock vehicles with those accessories that best suit the vehicle's lifestyle, adventure or general-use applications. For participating automakers, the modified vehicles illustrate design versatility and utility while adding flair and performance not available from the stock equipment catalog.

"Early collaboration between OEMs and SEMA suppliers can make the difference between built-in profits and reverse-engineered costs," said John Waraniak, SEMA’s vice president of vehicle technology. "Customization validates the platform's authenticity. OEMs make cool products. SEMA members help make those products cool. This new dynamic enables OEMs to better connect with, and profitably serve, customers by having immediate access to cutting-edge, purpose-built aftermarket goods."

Press conferences and sponsored media events make up a significant part of automaker activity at the SEMA Show, where manufacturers have access to a global media pool ranging from key industry communicators to the latest lifestyle broadcast programs.

The 2008 SEMA Show will be held November 4-7 at the Las Vegas Convention Center. For more information or to register for the Show, please visit www.SEMAShow.com.

Lobbying efforts from General Motors, Ford and Chrysler paid off last Wednesday as Congress approved $25 billion in government loans designed to refuel growth in the declining auto industry. According to a report from foxnews.com, the House approved the loans as part of a larger spending bill intended to help the industry refurbish plants for the production of fuel-efficient vehicles and to develop advanced batteries and gas-electric hybrids.

The loans, which were authorized in last year’s energy bill but not funded, are aimed at helping automakers meet costly new fuel-efficient standards of at least 35 miles per gallon by 2020, a 40% increase. Auto suppliers are also eligible for the loans.

Loans will be issued from the government at discounted rates and administered by the Energy Department, which is currently writing regulations for the program. The spending plan would enable the department to speed up the rule-making process. Companies would apply to the Energy Department for a loan, so it was unclear how the funding would be divided.

The companies hope to receive the loans at government interest rates of about 5%, which would save them about $100 million a year for every $1 billion in loans. Auto manufacturers have poor bond ratings and would only qualify for double-digit interest rates.

SEMA will team up with Rick Hendrick and the National Marrow Donor Program (NMDP) to sponsor a bone marrow testing program at the 2008 SEMA Show. Attendees are urged to come to the Marrow Donor Testing booth, co-located in the SEMA Cares booth in the Grand Lobby. Rick Hendrick’s charity organization, the Hendrick Marrow Program (HMP), has announced that it will underwrite 100% of the costs of anyone being tested at the Show (at a cost of $52 per test). 

“Our mission is to help patients, and by adding new donors to the NMDP Registry, we may be able to offer someone a second chance at life," says Rick Hendrick, chairman and CEO of Hendrick Motorsports. 

Hendrick established the Hendrick Marrow Program in 1997 after he was diagnosed with leukemia. Even though he did not need a marrow transplant himself, he wanted to help other patients who did not have the resources to find a marrow match or to cover the uninsured transplant-related costs that are often barriers to treatment. The HMP works in collaboration the NMDP in two key areas: donor recruitment and patient assistance.
 
Rick Hendrick, the HMP and SEMA invite you to join their team by becoming a volunteer marrow donor on the NMDP Registry. Each year, more than 35,000 children and adults are diagnosed with life-threatening diseases that could be treated by a marrow or cord blood transplant. Only 30% of those individuals will find a matched donor within their family. The remaining 70% must turn to the NMDP Registry to search for a volunteer donor.

You may be the one who can offer hope to these searching patients. To volunteer to work at the SEMA Cares booth/bone marrow registry drive, contact Judi Ritchie at judir@sema.org. For more information on the SEMA Show bone marrow registry drive, contact Linda Spencer at lindas@sema.org.

Stop by the SEMA Cares booth for information on two other important programs that SEMA supports: Childhelp and Victory Junction Gang Camp.

The 2008 SEMA Show will be held November 4-7 at the Las Vegas Convention Center. For more information or to register for the Show, please visit www.SEMAShow.com.

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