Over 25% of respondents indicate that they currently own some type of vehicle navigation system, according to results from the Morpace Inc. Omnibus Study fielded in July 2008. The rate of ownership of this technology is highest for married respondents and those earning at least $50,000 annually, and 39% plan to purchase a navigation system in the future.

"This survey confirms that the ownership of navigation systems will continue to grow in the marketplace," states Bryan Krulikowski, vice president, Morpace Automotive Research Practice.

Portability is especially important among those who own or are considering a navigation system. Nearly three-quarters of respondents prefer a navigation system that can be moved from vehicle to vehicle versus a system built into the dashboard of their vehicle or a system integrated into a cell phone.

"Consumers overwhelmingly prefer a system that can be used in multiple household vehicles," says Krulikowski. "Aftermarket manufacturers will surely benefit from this trend, and OEMs are already starting to integrate portable systems into their vehicles."

Prevention of getting lost is ranked as the highest reason for owning a navigation system. Other important reasons include the convenience of not having to pre-plan a route and the ability to change routes "on the fly."

Of those not interested in navigation systems, 36% say it's primarily because they don't need them rather than because of cost; 67% cite they don't travel to unfamiliar places often enough or they don't mind using maps or Internet-based directions. Only 14% cite cost as the primary reason.

SEMA market research shows that sales of navigation systems/video/entertainment products reached $1.53 billion in 2007, a jump of 7% from 2006. Each year, specialty-equipment manufacturers unveil their latest GPS navigation and multimedia systems. At the 2007 SEMA Show for example, stand-alone GPS units accounted for 9.6% of the mobile electronics entries in the SEMA New Products Showcase. Multimedia receivers that come equipped with GPS navigation accounted for 6.6% of the entries.

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

Source: "Morpace Reports Ownership of Vehicle Navigation Systems Expected to Grow" (press release), Morpace Inc., August 18, 2008.

Although high fuel-prices have led to an overall decrease in sales within the light-truck category, CUVs have managed to climb out of the downward trend with seven vehicles experiencing improved sales in 2008.

For the first two quarters of 2008, overall light-truck sales (which, for our purposes, include light-duty pickups, SUVs and crossover utility vehicles [CUVs]) were down 17.7%. Pickup sales dropped 23.3%, while SUV sales dropped 32.5%. CUV sales decreased by a mere 1.7%.

“As the U.S. economy experiences a downturn due, in part, to high gas prices, consumers have began to shift their vehicle buying preferences,” said Ty Michael, SEMA market research manager. “While drivers still seek the family hauling capabilities and utility that pickups and SUVs offer, they now find similar attributes in crossover utility vehicles (CUVs), which also offer improved fuel economy and handling compared to their body-on-frame counterparts.”

The Isuzu i-Series was the only pickup that experienced increased sales for January through June 2008 over the same period the previous year, and the Chrysler Aspen experienced an increase on the SUV side. CUVs fared much better, with seven vehicles seeing improved sales so far in 2008.

The top seven CUVs that witnessed a growth in sales within January through June 2008 were: Chevrolet HHR (50,818 units, up 9.6% from the previous year); Jeep Patriot (36,684 units, up 145.1% from the previous year); Ford Edge (68,727, up 16.9% from the previous year); Chevrolet Equinox (42,101 units, up 1.0% from the previous year); GMC Acadia (38,269 units, up 8.5% from the previous year); Buick Enclave (21,757 units, up 291.0% from the previous year); and Suzuki XL7 (17,077 units, up 30.6% from the previous year).

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

Despite slumps in pickup sales, the more than 1,000 pickup owners surveyed for a SEMA-commissioned study indicate that consumers within this market segment are still planning to customize their vehicles.

A large component of SEMA’s annual light-truck report consists of Foresight Research’s Pickup Truck Market Accessory Study, commissioned by SEMA. Between February 21, 2008 and April 21, 2008, data regarding products that had been purchased or are going to be purchased were collected along with demographic information. For the 2008 study, owners of nine different fullsize pickup models and eight different midsize or compact pickup models were surveyed.

Table 4 and 5 display the data for the top 10 accessories purchased or planned to be purchased for the five top-selling fullsize and midsize pickups. The heavy-duty trailer hitch is a top pick for three of the fullsize nameplates and two of the midsize nameplates.

"Even with declining pickup truck sales, the truck enthusiasts who are buying new pickups are still spending money to accessorize them,” said Megan McKernan, SEMA market research special projects manager. “It is also important to remember that new pickup sales do not tell the whole story: There are plenty of current pickup truck owners to target. Pickup truck owners whose vehicles are just a couple of years old may just now be deciding to accessorize them."

A complete report and analysis of the data collected from this representative sample will be available in SEMA’s 2008 Light-Truck Personalization Report.

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

SEMA Show exhibitors have one week left to reserve their free listings in the SEMA International Buyers' Guide. The annual buyers' guide is shipped to every U.S. embassy and distributed to every international buyer at the SEMA Show and automotive trade shows worldwide. All exhibitors and SEMA members are invited to take advantage of this opportunity.

All exhibitors that sign up for the free listing by Friday, September 5 will receive a complimentary “We Export” sign for their booths, signaling to international buyers at the SEMA Show your interest in selling overseas. A copy of the form is available online at www.SEMAShow.com/ibg.

Questions? Contact Linda Spencer at lindas@sema.org.

More than 4,000 international buyers have pre-registered to attend the 2008 SEMA Show. Exhibitors: Find out which international buyers are interested in your products by visiting www.SEMAShow.com/tradeleads.

SEMA Show exhibitors are invited to attend the largest industry international networking event of the year, designed to bring together international buyers and manufacturers. A registration form is available online at www.SEMAShow.com/happyhour.

Note that pre-registration is required, and while there is no cost for this November 5 event, invitations are on a space-available basis only.

Questions? Contact Linda Spencer at lindas@sema.org.

Filler for eNews

Honoring a 24-year tradition of awarding scholarships to students pursuing careers in the automotive industry, SEMA is awarding 93 students more than $130,000 in scholarships for the 2008–2009 academic year. The SEMA Memorial Scholarship Fund began awarding scholarships to students pursuing careers in the automotive industry in 1984.

"SEMA is pleased to reward the hard work of these students and provide financial assistance to support their education and career goals,” said Paul “Scooter” Brothers, SEMA Scholarship Committee chairman. "We are consistently amazed by what our scholarship winners have accomplished in their academic careers. By investing in the education of these young people, we are investing in the future of our industry. Their academic achievements, as well as their leadership and volunteer activities, speak to their commitment to make a difference in the automotive industry.”

The program rewards the best and brightest students engaged in studies leading to a career in the automotive specialty-equipment market or a related field. 

• Sophomores enrolled in two-year universities or colleges, and students in vocational or technical schools received $1,000.
  

• Graduates and undergraduates with at least a junior standing at a four-year school received $2,000–$4,000. To qualify for the scholarships, each student must have a minimum 2.5 grade-point average and be enrolled in an accredited university, college or proprietary program.

Although SEMA affiliation is not a requirement of the scholarships, added consideration is given to employees of, and relatives of employees at, SEMA-member companies. This year, seven scholarships were awarded to relatives and employees of SEMA-member companies, including:

• Daniel Kaskinen, Kaskinen Auto Sales
• James Kuklewski, ADAC Technologies (ADAC Plastics Inc.)
• Patrick Stasko, Design Engineering Inc.
• Joe Von Dohlen, Flowmaster Inc.
• Mitchell Langford, Stylin' Trucks (Division of Whitney Automotive Group)
• Austin Dodd, Midwest Wheel Companies
• Martin Balgach, National Business Media

As a benefit of SEMA membership, SEMA also presented the Loan Forgiveness Scholarship Award to qualified graduates with outstanding student loans, who have worked at a SEMA-member company for at least one year. This program was developed four years ago as further incentive for students to seek employment in the automotive specialty-equipment industry upon graduation. Seven employees of SEMA-member companies received $1,000 paid directly to their loan company to satisfy outstanding student loans.

The complete list of 2008 scholarship winners is listed below.

Students who are interested in applying for scholarships from SEMA’s Memorial Scholarship Fund during the 2009–2010 academic year should contact education@sema.org or visit www.sema.org/scholarship.

2008 SEMA Memorial Scholarship Winners, Four-Year, Two-Year

• Brandon Anderson, De Anza College, CA
• Casey Arthur, University of Northwestern Ohio, OH
• Cliff Backler, Minnesota State University Mankato, MN
• Nathan Bailey, Montgomery County Community College, PA
• Rick Ballard, Weber State University, UT
• Raynor Bemis, University of Northwestern Ohio, OH
• James Benham. Jr., University of Northwestern Ohio, OH
• Heath Blake, Wilkes Community College, NC
• Nicholas Brownson, University of Northwestern Ohio, OH
• Brittany Bruce, Northeast Mississippi Community College, MS
• Justin Campbell, University of Northwestern Ohio, OH
• Mark Cleland, University of Northwestern Ohio, OH
• Natasha Cramer, Dunwoody College of Technology, MN
• Rena Crockett, Community College Baltimore County, Catonsville, MD
• Adam Crook, Lake Superior College, MN
• Joseph Dahlhausen, Montana State University, Northern, MT
• Ryan Deschambault, Algonquin College in the Ottawa Valley, ON Canada
• Eric Doke, University of Northwestern Ohio, OH
• Grant Feichter, University of Cincinnati, OH
• Andrew Fida, Georgia Institute of Technology, GA
• Thomas Fischer, Southern Illinois University Carbondale, IL
• Derek Flint, University of Northwestern Ohio, OH
• Joshua Frank, OR
• Jack Frederick, Pittsburgh State University, KS
• Eric Gardner, Weber State University, UT
• Andrew Garrett, University of Northwestern Ohio, OH
• Matt Garwick, University of Northwestern Ohio, OH
• Eric Geistkemper, Hawkeye Community College, IA
• Wei-Yun Gibson, Colorado State University - Pueblo, CO
  
• Roy Grauberger, Morgan Community High School through Brush High School, CO
• John Graves, SUNY Delhi, NY
• Jason Gray, University of Northwestern Ohio, OH
• Daryl Green, Minnesota State University Mankado, MN
• Autumn Hawkins, University of Northwestern Ohio, OH
• Sean Hayes, South Dakota School of Mines & Technology, SD
• Bryan Haywood, University of Northwestern Ohio, OH
  
• Justin Hockenberry, Colorado State University, Pueblo, CO
• Robert Jobe-Shields, Southwest Tennessee Community College, TN
• Jason Kawakami, Honolulu Community College, HI
• Karalei Kaye, College of Marin (IVC), CA
• Thomas Kuznicki, University of Northwestern Ohio, OH
• Justin Lindke, University of Northwestern Ohio, OH
• Mark Mallory, Southwestern Community College, NC
• Clayton Manning, Colorado State University, Pueblo, CO
• Mike Marr, Chemeketa Community College, OR
• Jason May, University of Northwestern Ohio, OH
• Marcus McKean, University of Northwestern Ohio, OH
• Mark McKinney, University of Northwestern Ohio, OH
• John McMillan, Belmont Abbey College, NC
• Diane Melville, Miami-Dade Honors College, FL
• Douglas Meyung, University of Northwestern Ohio, OH
• Sean Miller, Northwood University, MI
• John Narcisco, Art Center College of Design, CA
• Blaine Olson, Lincoln College of Technology, CO
• Brent Opiela, Northwood University, MI
• Eric Oswald , Chemeketa Community College, OR
• Spencer Pearson, Minnesota State University Mankado, MN
• Ryan Roybal, CA
• Anthony Rusciano, College of Marin (IVC), CA
• Jay Schwanger, University of Northwestern Ohio, OH
• Deepak Sequeira, Greenville Technical College, SC
• Matthew Shinabery, University of Northwestern Ohio, OH
• Hiroko Shono, St. John's University, NY
• Charles Smith, Lakeshore Technical College, WI
• Jeremy Snavely, University of Northwestern Ohio, OH
• Andrew Spurr, Bluegrass Community & Technical College, KY
• Steven Steely, Delta College, MI
• Molly Stephens, Marian College, IN
• William Wegner, Minnesota State University, Mankato, MN
• Dan Welle, Universal Technical Institute, CA
• Clayton Workman, Washington State Community College, OH
• Rumi Yamaguchi, Truman College, IL
• Seth Zombory, Ferris State University, MI

2008 Scholarship Winners - Graduates and SEMA Dependents or Employees

• Martin Balgach, Vermont College/Union Institute & University, VT
• Yakira Braden, University of Wisconsin, Madison, WI
• Austin Dodd, Grand View College, IA
• Daniel Kaskinen, Northwood University, MI
• James Kuklewski, Grand Valley State University, MI
• Mitchell Langford, Kent State University, OH
• Randolph Leach, Colorado State University, CO
• Weason Liang, Northwest University, Kellogg School of Management, IL
• Reza Saeidpourazar, Clemson University, SC
• Patrick Stasko, University of Cincinnati, OH
• Joe Von Dohlen, Pacific Union College, CA
• Sarah Warren, UCLA, School of Engineering, CA

2008 SEMA Loan Forgiveness Scholarship Winners

• Christopher Batsch, California State University, Long Beach, CA
• Jason Fashner, University of North Florida, FL
• Daniel Felsted, Mercy College, NY
• Michael Goodman, Universal Technical Institute, FL
• Patrick Hill, University of Central Florida, FL
• Michael Malloy, Drexel University, PA
• Melanie White, CSU Chico, CA

Ford is going small and Honda is thinking big. Perhaps no duality better illustrates the state of the American automobile industry, as auto executives gathered last week at the Management Briefing Seminars, hosted by the Center for Automotive Research in Traverse City, Michigan, to discuss a market changing faster than anyone expected.

Ford President of the Americas Mark Fields is betting that his company can turn double-digit profits on small-car sales in the United States by adding successful European models to the domestic lineup and ramping up production on a global small-car platform. "We are very much playing to win in small cars," Fields told the Detroit News.

Fields believes American consumers are willing to pay more for small cars that offer high levels of quality and comfort, as well as "cutting-edge" features that younger consumers demand. The fact that buyers are demanding small cars again is no longer news. The Detroit News reports that in May, 50% of all vehicle sales were four-cylinder models—the first time in U.S. history that has happened.

Meanwhile, Toyota announced that its next-generation Prius will debut at the 2009 Detroit Auto Show. Bob Carter, Toyota group vice president and general manager for the Toyota division at Toyota Motor Sales USA, also noted that Lexus would also offer a hybrid with a different design than the Prius. Consumers want more hybrids, more four-cylinders and "vehicles that exceed 30 miles per gallon," Carter told the conference.

Honda likewise plans to introduce a new five-door, five-passenger hybrid by April 2009 priced below the Prius and current Civic Hybrid. Both automakers are acutely aware of the shift away from trucks, but both believe in the long-term potential of the market.

American Honda Executive Vice President Dick Colliver told the conference that his company sees the market shifting back to larger vehicles once consumers adjust to higher fuel prices—even declaring that the "shock from oil prices is over."

Toyota's Carter notes that the large-truck market may fall as low as 1.4 million units this year, down from 2.15 million last year, reports Bloomberg.com. Even at 1.4 million, Carter says, it can't be ignored. Toyota adjustments include converting an Indiana plant slated to produce Tundras to now producing Highlanders.

Carter maintains that the U.S. truck market is still one of the most viable, largest segments on the industry. "We are confident in the long-term viability of the fullsize truck market," he says.

Chrysler remains unconvinced, however. According to The New York Times, the automaker believes the SUV era is over and announced that it was converting a plant used to produce Jeep Grand Cherokees.

Consumer Expectation Outpacing Auto Industry's Delivery
At the Management Briefing Seminars, IBM released a report showing that the auto industry is several steps behind the needs of increasingly sophisticated consumers. The IBM Automotive 2020 Study, based on global collaboration with 125 auto industry leaders, says consumers are demanding more information and entertainment from their vehicles.

They also want increased safety, economy and environmental responsibility, spurring the development of cars and trucks that use electronics to provide greater assistance with navigation and active safety (systems that monitor and react to changing road conditions).

The specialty-equipment industry will appreciate the sentiments behind one of the report's five imperatives: simplify complexity. As vehicles become more connected and intelligent, the electronics and embedded software become more complex. IBM recommends that OEMs establish common processes and standards to encourage innovation from traditional and non-traditional (read: specialty-equipment) suppliers to be rapidly integrated.

As automakers refocus their attention away from trucks and onto smaller cars, they face the dual challenge of manufacturing cars for consumers demanding more choice and personalization options.

“The auto industry is shifting away from a small number of high-volume, big-hit models and one-size-fits-all products, and moving toward a larger number of low-volume niches and smaller segments of customized products,” says John Waraniak, SEMA vice president of vehicle technology, who also chaired a seminar dedicated to specialty-equipment customization and spoke on a panel discussing the future of "connected" vehicles.

“These are SEMA’s roots, as well as the future and strength of SEMA companies," he adds. "Small is the new big, and SEMA is a lot of small to midsize companies with big ideas.”

For more information about SEMA's vehicle technology programs and Technical Briefing Seminars, please visit www.sema.org/tbs. 

Ford's press conference from the 2007 SEMA Show.

Exhibitors are invited to announce newsworthy information by conducting a press conference during the 2008 SEMA Show.

To schedule a press conference, exhibitors must submit Media Conference Applications by Friday, August 29, 2008. Media conferences are scheduled in advance by SEMA staff to avoid conflicts. Due to limited time slots, all media conference topics must be pre-qualified by SEMA. Exhibitors are not authorized to hold media conferences outside of the official schedule or off-site during Show hours.

To download the Media Conference Application, visit www.SEMAShow.com/mediaconference.