Millions of tax-paying consumers have began receiving their federal tax rebate checks, and according to a survey sent to automotive enthusiasts last week, 18% said that they plan to purchase custom parts and accessories for their vehicles. The consumers surveyed were current subscribers to automotive enthusiast magazines. The average age and income of these respondents were 46 and $97,000, respectively. 

A total of 1,032 enthusiasts answered the survey. The highest percentage of these consumers noted that they plan to pay off credit card bills (21%), followed closely by those that plan to put their rebate check money in the bank (20%).

Other survey findings include:
•    Of those who plan to buy specialty equipment, the top “first” accessory choices were custom wheels (8%), exhaust kits (7%), cold air intakes (4%), engine performance tuners (3%), and custom suspension parts (3%).

•    For consumers 30 years old and younger, 29% indicated that they plan to purchase specialty equipment and 22% indicated that they plan to put the money in the bank. The most popular specialty-equipment product this group will purchase first: custom wheels (12%).

•    10% of the entire sample surveyed plan to use their rebate money to pay for everyday items, such as groceries and clothing; 8% toward a vacation; 2% for home improvements; 2% to purchase home electronics, such as big-screen televisions; and 19% indicated “other.” These “other” write-in responses included regular bills, new furniture, college tuition, fixing their vehicles and off-setting the higher costs of gasoline and diesel.

The increasing cost of gasoline is affecting whether enthusiasts purchase custom automotive parts and accessories. When asked whether current fuel prices have caused them to delay buying specialty equipment for their vehicles, 50% said “yes.” Only 33% of survey respondents gave the same answer two months ago when the national average for a gallon of gasoline was $0.35 less than the current average. 

Jeff Lawson, an enthusiast from North Carolina, remarked: “I am a car guy, but with rising fuel costs, grocery costs and high unemployment rates, I have altered my automotive spending habits.”

Enthusiasts recognize that certain specialty-equipment products are beneficial in order to mitigate the effects of higher fuel costs, however. “Right now anything that helps on gas mileage is sounding pretty good," noted Darin Tenney from Oklahoma.

Consumers want specialty-equipment products that help to increase fuel economy, and many products manufactured have been shown to actually enhance fuel economy along with performance gains. So companies that effectively communicate this message to their customers could profit from upcoming tax-rebate spending.  

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

Small-car purchases seem to be the trend, but what about the segment of the population that needs the interior capacity to fulfill their weekend dreams? SEMA’s 2007 Automotive Lifestyles Survey showed that about a third of automotive enthusiasts partook in running, jogging, walking, bicycling, mountain biking, hunting, fishing, shooting, camping and/or hiking in the last year.

About a quarter of enthusiasts said they have worked out in a gym, boated and/or sailed in the last year. For these “outdoor” people, a small, limited-cargo-room car may not suffice. Therefore, there is a whole active population that is looking for fuel efficiency and cargo room.

In the past, pickups and SUVs were popular with this same sample of people that were surveyed for their “outdoor” habits. This survey showed that six of the 10 most popular vehicles are capable of taking on an active outdoor lifestyle. These most popular vehicles, according to the 2007 Automotive Lifestyles Survey, that are capable of “outdoors” are:

•    Ford F-Series
•    Dodge Ram
•    Chevrolet Silverado
•    Chevrolet C/K Pickup
•    Jeep Wrangler
•    Chevrolet S-10

At the 2007 SEMA Show, it seemed that Americans wanted the best of both worlds. They want to be able to go where they want and take whatever cargo they desire. As voted on by specialty-equipment manufacturers, the Chevrolet Tahoe Hybrid was named the most accessory-friendly vehicle at the 2007 SEMA Show. With its fuel economy that matches the Camry, the Tahoe Hybrid and other fuel efficient SUVs, CUVs, and pickups may be the way of the future for Americans that are stubborn for their large vehicles.

Only time will tell if automotive manufacturers will be able to make big cars that have enough fuel economy to keep them popular. Large-vehicle sales may be hurting, but vehicle technology is increasing faster than ever. Mostly fueled by high gas prices and potential scarcity, we may still see automotive manufacturers give consumers what they want. Keep an eye on these vehicles that allow for consumers to live their life how they want to. As fuel economy improves, popularity may once again rise among the fullsize truck/SUV segment.

Discover better ways to connect with your customers through the SEMA Internet Symposium on July 25, in Irvine, California. 

From everyday products to specialty items, the Internet has changed the way customers research and buy. To meet the needs of the more empowered consumer, businesses need to take advantage of opportunities through the Internet to deliver product messages and drive sales. Whether your company is ready to learn the fundamentals or prepared for focused Internet solutions, take advantage of the 2008 SEMA Internet Symposium on July 25.

The symposium’s curriculum covers broad-based topics, such as Internet marketing and understanding legal rights online, as well as more advanced subjects, such as pay-per-click web design and web-based customer relationship management.    

The event is facilitated by SEMA’s Sport-Compact Council, and course descriptions, complete information and registration for the SEMA Internet Symposium are available by clicking here. The 2008 SEMA Internet Symposium is held in conjunction with the SEMA Installation Banquet & Gala Fundraiser. For more information on the gala and its related fundraising activities, click here.

While industry hackers fine-tune their swings for the annual SEMA Charity Golf Tournament, to be held Friday, July 25, at the Strawberry Farms Golf Course, Irvine, California, others will be fine-tuning their bids to own Kyle Petty's 2006 Victory Jackpot motorcycle. Petty rode the bike on the 2006 Chick-fil-A Petty Charity Ride from Idaho to North Carolina. The black bike with a black custom luggage rack (fabricated by Petty) is one of several great items available in the Gala Fundraiser during the SEMA Installation Banquet.

All proceeds from the fundraiser benefit SEMA's two chosen charities, Childhelp and Victory Junction Gang Camp. Other available auction items include an expenses-paid spot on the 2009 Kyle Petty Ride Across America, a Brett Favre-autographed football, tickets to next season's Shootout Under the Lights at Daytona International Speedway, and hotel and accommodation packages in Las Vegas and Mammoth Lakes, among other goods.

Following Lexus' introduction to the SEMA Show in 2007, the automaker will continue its participation, starting with its Project Vehicle Program. This year, Lexus will focus on the high-performance IS F model and invites SEMA members to submit proposals for project build-ups.

Potential builders should adhere to the theme of High-Performance Luxury. Applicants should incorporate a focus on “innovation” with their design concept. All project vehicles will be located within the Lexus display, adjacent to the Motor Trend Proving Ground.

Vehicles for this project are prototypes not eligible for registration or operation on public roads. They will remain the property of Lexus. Accordingly, Lexus will provide vehicles on a loan basis for the duration of the build. Builders will return them to Lexus prior to the SEMA Show for photography purposes. Lexus will cover insurance requirements for the vehicles as long as the lease terms are met.

After the Show, Lexus and/or the builder will make the cars available for showing depending on mutually agreed upon timing/schedules. Vehicles will be available from June 2008, with a target completion date of October 1, 2008.

Lexus notes that budgets are limited and it will evaluate each project independently for possible financial support. More weighting will go to proposals that offer the highest likelihood of print and/or online coverage of the build-up process or finished product.

Lexus asks that builders submit IS F proposals electronically by May 22, with a project description plan that includes:

• Company Background
• Detailed description of objective of project vehicle—market segment appeal
• List of upgrades and partnered sources
• Proposed list of intended trade shows and events, advertising, website, catalogs where the vehicle will be promoted
• Your thoughts on where your project vehicle might achieve print or online coverage
• Examples of past project vehicles, including newspaper and magazine coverage
• Date vehicle will be required
• Color rendering illustrating front, side and interior color/graphic scheme
  

Mercedes-Benz will host a “Tastes of America” tuning competition for its GLK 350 that highlights the designs and craftsmanship of the specialty-equipment industry during the 2008 SEMA Show, November 4–7, in Las Vegas.  A total of four GLKs will be competing with one another for the most votes by Show attendees, as well as Internet voters. Of the four different themes, three are still available:

1. The Four Corners Rock Crawler: “The ultimate off-roader!”
2. The Pikes Peak Rally Racer: “The rally dominator”
3. The NYC Urban Whip: “This ride will turn heads and rule the road”

Only one GLK project vehicle per theme will be awarded to aftermarket companies that exhibit and compete with one another at SEMA.

Following the Show, the four aftermarket companies will take possession of the vehicle for the next 12–18 months for the purposes of the approved marketing plan. For complete information, visit www.sema.org/oem and click on the link next to the Mercedes-Benz logo.

Aftermarket companies that wish to apply for this opportunity must submit proposals which include the following information.

1. Executive Summary—One page that focuses on the key benefits of the proposal and prior experiences to support this new role.
2. Vehicle Description—List of specific modifications and accessories to be added, including a total customer pay price, along with a color rendering.
3. Promotional plan—Detailed Marketing/PR plan for the GLK over the next 12–18 months.
4. Timing—Specific dates, vehicle delivery and project timing and completion date.
5. Commit to feature vehicle with the Mercedes-Benz logos and nomenclature intact with visible likeness to production vehicle.
6. Finally, it should be made clear that a project vehicle will only be awarded upon the execution of an agreement as required by MBUSA.

All proposals need to be submitted to MBUSA via e-mail to sema@mbusa.com by June 1. Earlier proposals will receive preferential treatment.

SEMA has arranged a special trip to Childhelp for an afternoon of car crafting in preparation for the upcoming SEMA Pinewood Drag Race, sponsored by Fellers and DUB Publishing, one of the fundraising activities planned in conjunction with the SEMA Installation Banquet & Gala Fundraiser. SEMA members are invited to help the children of Childhelp sand, paint and assemble the cars for a set of races to take place that day. From there, the cars will travel to Irvine, California, to race in the SEMA Pinewood Drag Race set for July 25. Each car will be branded with each child's first name and last initial, and after the race, the cars will be returned to the children at Childhelp.

The build day will take place at The Village of Childhelp West in Beaumont, California. SEMA members interested in participating in the build day at Childhelp are invited to contact Mike Spagnola at mike@streetsceneeq.com.

The SEMA Installation Banquet & Gala Fundraiser is set for Friday, July 25, at the Hyatt Regency Irvine in Irvine, California. In addition to the SEMA Pinewood Drag Race, other fundraising activities include live and silent auctions. The proceeds from the fundraising activities benefit children's charities Childhelp and the Victory Junction Gang Camp.

For complete information on the event and activities, click here. For a list of available sponsorship opportunities, click here.

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