There are several new compact-performance vehicles that have been introduced, or are slated for a 2008–2009 release, into the U.S. market, each offering its own unique design aimed at attracting the most enthusiastic and individual of customizers.

"Never before have compact-performance enthusiasts had such a wide spectrum of genuine performance models to choose from, and as a result of gas prices, vehicle manufacturers are scheduled to continue their development of options slated under the traditional sports car threshold,” said SEMA Research Analyst Zack Krelle, who recently conducted a market forecast study on compact-performance vehicles. “Consequently, it is conceivable that this niche will refine and grow; something it has done for over a decade."

BMW released its 1 Series to appeal to consumers interested in an upscale, affordable car. Production began in 2004, with an update in 2007, but this is the first time the model has been released in the United States. Notable features include rear-wheel drive, dynamic handling and a powerful engine borrowed from the 3 and 5 Series sedans. If tuners find the price reasonable, the 1 Series has the potential to continue its overseas success. 

“The BMW 1 series uses the same engine as the 335i, so it’s a twin-turbo engine in a smaller platform,” said Daryl Sampson, Sales and Marketing Manager for Advanced Clutch Technology Inc. “The price point makes it attractive for younger enthusiasts that typically cannot afford the 335i. The demographic for the 1 Series is the same as the people who would be able to afford the Subaru STI and the Mitsubishi Evolution.”

Hyundai’s Genesis coupe, scheduled for a spring 2009 release, has the characteristics to disrupt the leaders. It boasts rear-wheel drive and big power, but is set to start at an attractive price point in the low-to-mid $20,000 range. The concept mock-up was fitted with trick parts, and it appeared to be accessory-friendly.

“The Hyundai Genesis coupe promotes Hyundai as a sport-compact performance brand, which prior to this hasn’t been their forte at all. The Genesis will catapult them into a tuner market,” said Sampson.

Infiniti released its new G Sedan, dubbed the G37, to replace its Skyline-based G35 predecessor. The exterior has been remodeled, the chassis has been strengthened, and the engine has been bumped up in power and features. It should continue to be a widely popular coupe.

“Infiniti has definitely hit the mark with their G37,” said Eric Breslow, Chairman of SEMA’s Sport-Compact Council. “The technology and performance are remarkable.”

Nissan’s much-hyped GT-R will make its North American debut in June 2008. While its output is impressive and bargain-based compared to similarly performing vehicles, it will be less attainable for enthusiasts than they would imagine. The buzz-machine has been cranked up so high over the course of its long development that the markup could be extreme when it hits the showrooms. Furthermore, concerns about its highly secure engine control unit (ECU) and turbochargers—which are integrated directly into the exhaust manifold—will require extensive and expensive work to improve upon. Nevertheless, Breslow maintains that the GT-R is “poised to be Japan’s answer to the Corvette.”

“The Nissan GT-R is probably the biggest thing in the sport-compact market right now. The price puts it out of range for a lot of the traditional sport-compact performance enthusiast, but in the last 10 years or so that market itself has grown up, so you are dealing with a little more of an affluent buyer. The people who would buy this car are the same as those who would buy the Porsche, because essentially you are looking at a $70,000 car,” said Sampson.  

Mitsubishi’s Lancer Evolution X, Subaru’s Impreza WRX STI and Volkswagen’s GTI R32 have all been updated. These famed all-wheel-drive, factory-tuned machines are good for daily driving and weekend track days, and all three models come with loads of power, big brakes and sticky tires. Aside from the Subaru becoming a hatchback, the formulas have not changed.

Not typically seen as a sport compact, the Smart Fortwo should be something on everyone’s radar. It has a huge global following and trendy appeal. Despite an array of overwhelming performance features, it could become a nice target for accessorizing. Wheel options could be problematic, as it has an uncommon three-lug bolt pattern.

“There are some very exciting new cars on the road these days,” said Breslow. “These cars all have their own personality ripe for tuners to customize."

To read the full report on the compact-performance market, visit http://www.sema.org/main/semaorghome.aspx?id=59337.

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

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SEMA Webinar: “Advanced Guide to High Search Engine Rankings”
Thursday, May 8, 2008, 10:00 a.m. (PST)

Don't underestimate the business importance of a good website. A clear, uncluttered web presence can mean the difference between a walk and a sale. But if customers can't find your site to begin with, you're simply leaving money on the table.

If you missed Thursday's webinar, "Beginner's Guide to High Search Engine Rankings," don't worry. An archived audio version of the webinar will be available for download next week. Make sure to tune in for next week's follow-up, "Advanced Guide to High Search Engine Rankings" to learn the next vital steps to your web marketing success.

Presenter Brian Offenberger of BizGrowth Search Engine Solutions will cover advanced marketing techniques to ensure that prospects can easily find your website.

Learn the essentials of:

• Advanced strategies for high search-engine rankings
• How to use blogs, podcasts, YouTube, social networks and social media for high search-engine rankings
• FREE tools for evaluating performance 
• Common mistakes and how to avoid them 
• Education resource centers for do-it-yourselfers
  

• Low-cost/no-cost market testing for businesses of all sizes, both in online and offline marketing efforts
• FREE tools businesses can use for do-it-yourself testing programs
• How to inexpensively and effectively conduct a valid test
• Fatal mistakes to avoid when testing
• How to make testing work for you

Raymond Bleiweis, Ben Nighthorse Campbell, Corky Coker and Robert Cook will be inducted into the SEMA Hall of Fame, an elite group of industry innovators and pioneers who have played a key role in the automotive specialty equipment market.

Since 1969, the SEMA Hall of Fame has paid homage to the industry leaders who have contributed to the health and success of the automotive specialty equipment market. The induction of the four newest individuals brings the total SEMA Hall of Fame membership to 125, a relatively small and elite group in a $36.7 billion industry.

While there are clear and definite criteria that SEMA Hall of Fame members must meet, this year’s inductees represent a diverse group that includes innovators, businessmen and government leaders.

Raymond Bleiweis: In addition to founding Rocket Industries, the Pico Rivera, CA-based distributor of custom wheels and wheel accessories, Bleiweis is a pioneer in industry safety. He was instrumental in the formation of the SFI Foundation, Inc. (SFI), a non-profit organization that began as a program within SEMA. While the SFI Foundation now operates independent from SEMA, it remains strongly committed to safety.

Ben Nighthorse Campbell: The U.S. Senator from Colorado is the highest elected official on a national level to steadfastly support the industry. Campbell helped found the Congressional Automotive Performance and Motorsports Caucus and helped grow its membership to more than 100. Many credit him with raising the industry’s level of visibility and influence in Washington.

Corky Coker: Coker, well-known for the classic white-wall tires that bear his name, is a former SEMA chairman who also helped establish the Automotive Restoration Market Organization (ARMO). Having served on numerous SEMA committees and task forces, he implemented several changes to create new business opportunities for members.

Bob Cook: Cook began his career as a delivery boy for a NAPA store. After working retail for nearly a decade, he moved over to a rep agency and eventually formed Bob Cook Sales. In addition to leading his agency to being named SEMA Rep of the Year Award five times, Cook volunteered time to advancing the industry by serving on the SEMA Board of Directors and participating on several SEMA committees.

The Hall of Fame inductees will be officially introduced at the SEMA Installation Banquet & Gala Fundraiser, Friday, July 25, at the Hyatt Regency Irvine, in Irvine, California. The event includes dinner and includes the formal induction of the newly elected SEMA board members.

Tickets and details are available at www.sema.org/gala, or may be obtained from Lisa Moreno at lisam@sema.org, 909/396-0289, ext. 105.

Manufacturers of automotive accessories are showing no signs of slowing down, with 1,643 exhibitors already signed up to participate in the 2008 SEMA Show on Tuesday–Friday, Nov. 4–7, 2008, in Las Vegas. The trade-only event targets the $36.7 billion automotive specialty-equipment market, which includes products that enhance the styling and functionality of cars, trucks and SUVs.

“It’s early in the process, but it appears that the SEMA Show will be another sell-out year,” said Peter MacGillivray, SEMA vice president of communication and events. “It’s exciting to see such involvement and interest from the industry, especially in today’s challenging economic times. Recognizing the importance that the industry places on the SEMA Show, we’re working hard to provide Showgoers with high-value opportunities throughout the week.”

For 42 years, the SEMA Show has served as a trading post for the annual unveiling of new products and technology where manufacturers and buyers come together. Last year, the event featured more than 2,000 exhibitors and attracted more than 130,000 industry professionals from all over the world.

The SEMA Show, according to MacGillivray, is the single best place to learn what’s happening in the industry. “The Show features thousands of new products and manufacturers. But what’s more is that the seminars and activities make it possible for Showgoers to mix and mingle with key industry players, and learn new business skills and strategies.”

Among the 2008 SEMA Show features that give Showgoers added value are:

• Pre-Show strategies for exhibitors: Exhibitors are invited to participate in free online webinars prior to the SEMA Show, where they will learn about specific programs and strategies for success at the SEMA Show.
• Pre-Show planners: Buyers and exhibitors are able to utilize an online show planner to pre-plan and pre-identify events and activities of specific interest.
• Media connections: Exhibitors can provide press kits and media materials in the SEMA Show Media Center, a location where more than 3,000 media representatives visit during the week.
• New product promotion: New products can be included in a special showcase, as well as photographed and promoted to thousands of media throughout the year.
• Business seminars: Nearly 50 educational seminars take place during the week, all are available to Showgoers free of charge.
• Project-vehicle connections: Exhibitors are able to gain added exposure by featuring their project vehicles at the Show; exhibitors may also offer their products to other project vehicle builders through SEMA’s Products for Project-Vehicle Builders Program.

Manufacturers interested in exhibiting at the 2008 SEMA Show should contact Show Management at 702/450-7662, ext. 120, or go online at www.SEMAShow.com/buyabooth. Industry professionals may register to attend online at www.SEMAShow.com.

SEMA announced the appointment of Brian Duggan as its new Director of Congressional Affairs. Duggan comes to the association with a broad range of public policy expertise. He has a combined experience of 20 years in lobbying, government relations and policy having previously worked in Washington, D.C., for the Motor and Equipment Manufacturers Association and the U.S. Department of Commerce. Brian is from Maryland and has a master’s degree from The George Washington University and a bachelor’s degree from Villanova University.

“Brian brings to SEMA a wealth of experience in government relations, legislative analyses and advocacy, as well as the development and implementation of policy,” SEMA’s Vice President of Government Affairs Steve McDonald commented. “We are pleased to have someone of his experience to supplement our continuing efforts on Capitol Hill in promoting the industry to federal lawmakers. The breadth of his knowledge on issues of critical importance to the aftermarket will provide SEMA with an effective advocate and a valuable resource in our efforts to protect and advance the aftermarket industry.” 

SEMA maintains an experienced government affairs staff and legal team in Washington, D.C. Responsible for communicating and advocating issues affecting the specialty automotive aftermarket, SEMA’s government affairs office has proven to be an influential and effective force in ensuring the continued growth and prosperity of the industry.

“I am very excited to have the opportunity to work with SEMA members and staff. The industry has a great history and is making important contributions to the American economy and society. Several members of Congress are already automobile collectors, restorers and enthusiasts.  We want to tap in more to that base to build a higher awareness and appreciation of the industry in Congress and its role in society across the board,” Duggan said. 

If you have already registered for the 2008 SEMA Show you should have received a confirmation e-mail that includes a link that ensures Show badges will be mailed two weeks prior to the event. Attendees who have not done so are encouraged to access the link to receive their badges in the mail, providing quicker access to the Show, November 4–7 in Las Vegas. If you don't have your registration confirmation, you can reprint it by visiting www.SEMAShow.com and click on the link to check your registration status. You can resend the confirmation to yourself in order to complete the process.

For complete information on the 2008 SEMA Show, visit www.SEMAShow.com.

Questions about the registration process? Contact customer service at 866/229-2386 (U.S.) or 001-301-694-5243 (outside the United States), or e-mail aiw081.attendee@experient-inc.com.

Reserve Your Hotel Room Now!
The 2007 SEMA Show attracted more than 130,000 industry leaders from more than 100 countries. Guarantee you have a room for the Show by making hotel reservations now. To make reservations, click here.

During the SEMA National Education Conference, April 10–11 in Nashville, Motor Age interviewed SEMA Vice President of Market Research and Information Jim Spoonhower about the specialty-equipment industry’s expansion.

"The big thing is a shift from an industry that is driven by enthusiasts to one that is driven by everyday consumers,” Spoonhower said. “[SEMA] member companies are accustomed to marketing for enthusiasts and their response to the message and the product. With mass customization, [members] may have to find new message points and ensure that the product is just right for non-enthusiast customers."

Specialty-equipment companies can profit from mass customization in much the same way as several consumer products that allow the end user to put their name, picture or logo on the final product. Performance parts and accessories can be marketed similarly.

For example, manufacturers could structure a way to custom order the chrome tubing on a cold-air intake so that consumers can get the name of their car club etched on the product prior to being shipped. The costs of integrating mass customization into the specialty-equipment market is likely to be outweighed by the added mainstream consumer base acquired, which is becoming an even bigger part of the industry today compared to years past.

Mainstream consumers are modifying their vehicles with aftermarket parts more than ever, and this change has helped industry sales more than double over the past decade, according to SEMA research. During this same period, the appearance and accessories segment has grown to a 13% market share. Mainstream consumers are a growing part of the industry and are not only turning to the industry for appearance products, but also mobile electronics and other car customizing options.

More specialty-equipment manufacturers have taken notice of the growth experienced by the GPS market, for example. In the 2007 SEMA Show New Products Showcase, manufacturers introduced 192% more GPS products than at the 2006 Show.

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