Tire Group International (TGI) opened a new office in Qingdao, China. Heading it will be Jing Dong Ling, formerly a quality and mixing engineer with Yellow Sea Tire. Ling brings more than 10 years of experience and knowledge from the quality control side of the tire building process and will oversee all of TGI’s private-label production coming out of China (Cosmo, Luna and Industar).

SEMA News contributor Doug Newcomb released a new book, “Car Audio for Dummies,” earlier this month. The book details everything that beginners need to know about how to plan, buy and install car audio and video systems that fit their lifestyles. The book also covers how to evaluate car audio sound quality, iPod integration, wiring and installation accessories needed and much more.

Doug Newcomb
 
The Goodguys Rod & Custom Association reported that eight of the nation’s top hot rod builders will select exclusive “Pro’s Pick” awards at select 2008 Goodguys National events. In addition to the long standing tradition of the Boyd Coddington Pro’s Picks, seven other elite rod shops around the country will present Pro Picks this year, including America’s premier hot rod designer Chip Foose. Joining Boyd and Foose are Rad Rides by Troy, Pinkees Rod Shop, Johnson’s Hot Rod Shop, Art Morrison Performance, Roger Burman’s Lakeside Rods and Alloway’s Rod Shop.  At each 2008 national event, a special Goodguys “Pro’s Pick” parking area will be staged. To be eligible for a Pro’s Pick award, participants must park in the Pro’s Pick area.

Check the list below to see the 2008 Goodguys National events which feature celebrity Pro’s Pick awards.

• 8th Meguiar’s Del Mar Nationals—April 4–6, Del Mar Fairgrounds
  Pro’s Pick Awards Selected by: Boyd Coddington’s Hot Rod Garage
• 11th Colorado Nationals—May 30–June 1, The Ranch at Larimer Co. Fairgrounds, Loveland CO
  Pro’s Pick Awards Selected by: Pinkees Rod Shop (Eric Peratt)
• 20th Hot Rod Nationals—June 6–8, O’Reilly Raceway Park, Indianapolis, IN
  Pro’s Pick Awards Selected by: Rad Rides by Troy (Troy Trepanier)
• 2nd NAPA Southern Nationals—June 13–15, Atlanta Motor Speedway, Hampton, GA
  Pro’s Pick Awards Selected by: Johnson’s Hot Rod Shop (Alan Johnson)
• 3rd Nashville Nationals—June 27–29, LP Field, Nashville, TN
  Pro’s Pick Awards Selected by: Alloway’s Rod Shop (Bobby Alloway)
• 17th 3M Heartland Nationals—July 4–6, Iowa State Fairgrounds, Des Moines, IA
  Pro’s Pick Awards Selected by: Lakeside Rods & Rides (Roger Burman)
• 11th PPG Nationals—July 11–13, Ohio Expo Center/State Fairgrounds, Columbus, OH
  Pro’s Pick Awards Selected by: Boyd Coddington’s Hot Rod Garage
• 21st Pacific NW Nationals—July 25–27, Puyallup Fair & Expo Center, Puyallup, WA
  Pro’s Pick Awards Selected by: Art Morrison Performance (Art & Craig Morrison)
• 22nd West Coast Nationals—August 22–24, Pleasanton Fairgrounds, Pleasanton, CA
  Pro’s Pick Awards Selected by: Foose Design (Chip Foose)
• 11th Southwest Nationals—November 14–16, Westworld Showgrounds, Scottsdale, AZ
  Pro's Pick Awards Selected by: Boyd Coddington's Hot Rod Garage 

For more information, visit www.good-guys.com.

Carlisle Events announced a new business partnership with Brickel’s Racing Collectibles. Brickel’s will manage all on-site and online sales of the Carlisle Events apparel, gear and collectibles through traditional retail at a new location on the Carlisle, Pennsylvania, Fairgrounds and through an established e-commerce system on CarlisleEvents.com.

Microsoft Corp. and Alpine Electronics Inc. signed an agreement to cross-license the companies’ respective patent portfolios. The agreement expands the relationship between the two companies to promote the exchange of information and the incorporation of patented technologies in car navigation systems and other consumer electronics products. Since 2002, Alpine has adopted Microsoft’s automotive specific operating system, Windows Automotive, on almost all of its navigation systems for both the aftermarket and automotive OEM factory installations.

Internet Brands Inc. and Digital Performance Inc. (DPI) launched an initiative to integrate the DPI Shopping Guide into a variety of Internet Brands’ auto community forums. “We’re excited to give our millions of enthusiast community members a new way of shopping for parts and accessories with DPI,” said Alvin Fong, director of business operations at Internet Brands. “Fixing, tuning, styling and modifying vehicles is up there with eating and breathing for many of our users, and we believe they’ll embrace a robust, easy-to-use channel for finding the products they need.” There are more than 1 million parts from more than 800 leading brands in the DPI database, with thousands more parts being added every week. “While a few retailers offer the ability to shop for parts by year, make and model, they typically cover a fraction of available brands,’” said Andy Wilson, CEO of DPI. “We believe giving the consumer access to a selection of hundreds of merchants from which to choose from delivers the best buying experience.”

WTC Select Committee Nominations
WTC members have the unique opportunity to help shape the future of the wheel and tire industry by choosing appropriate representatives to serve on the WTC Select Committee as their eyes, ears and voice. Select Committee nomination forms have been mailed and are due Friday, March 7. The forms are also available on the WTC website at www.sema.org/wtc. If you have any questions regarding the elections, contact Paul Moritz at 909/396-0289, ext. 112, or paulm@sema.org.

• All members of the WTC are invited to join the WTC Select Committee at the council’s open Long-Range Planning Meeting. The details are:
   
  When: Thursday, March 13, 10:00 a.m.–5:00 p.m.
  Where: SEMA Headquarters – AAA Building, 1575 S. Valley Vista Dr., Diamond Bar, CA 91765
   
  If you have any questions about the Long-Range Planning Meeting or to RSVP, contact Paul Moritz at 909/396-0289, ext. 112, or e-mail paulm@sema.org.

WTC Column in SEMA Member News
Read WTC's column featured in the January/February issue of SEMA Member News by clicking here.

For information about WTC, visit www.sema.org/wtc or contact Paul Moritz at paulm@sema.org.

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ARMO Members—Help Shape the Future of Your Industry
Members of ARMO have the unique opportunity to help shape the future of the restoration industry by choosing appropriate representatives to serve on the Select Committee as their eyes, ears and voice. 

ARMO’s primary goals are to ensure the longevity and prosperity of the automotive restoration industry and to represent a unified voice on behalf of its members. ARMO is dedicated to developing effective strategies and programs, all of which address the specific needs of the restoration industry.

Nominations forms have been mailed to all ARMO member companies, and are also available online by clicking here. Criteria and responsibilities of Select Committee members are also available here. The deadline for nominations is Friday, March 7, 2008. Please do not miss out on this opportunity to shape our industry! 

ARMO Members Invited to Participate in Free New Products Showcase
ARMO-member companies are invited to participate in the 11th annual New Products Showcase being held in conjunction with Spring Carlisle, April 23–27. Be sure to take advantage of this fantastic opportunity to introduce your creative and innovative products to the industry and enthusiasts. 

All ARMO-member companies are eligible to participate for free. There will be two categories for products: Best New Original Restoration Product of the Year and Best Restomod Product of the Year. The winning products and companies will be honored at the ARMO Industry Awards Reception during the 2008 SEMA Show. For an entry form, click here. All entry forms must be received by SEMA no later than Wednesday, April 16, 2008.  

ARMO Column in SEMA Member News
Read ARMO's column featured in the January/February issue of SEMA Member News by clicking here.

For more information about ARMO, visit www.sema.org/armo or contact Jan Desma at jand@sema.org.

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HRIA Seminar Workshop Lineup for the Hotrod & Restoration Trade Show
Located in the Indiana Convention Center on Thursday, February 28, 2008, all SEMA members are encouraged to participate in the workshops that focus on product use, tips and techniques at the Hotrod & Restoration Trade Show  Click here to access additional information and a registration form, or contact Jan Desma (jand@sema.org) at 909/396-0289, ext. 134.

HRIA Column in SEMA Member News
Read HRIA's column featured in the January/February issue of SEMA Member News by clicking here.

For more information about HRIA, visit www.sema.org/hria or contact Jan Desma at jand@sema.org.

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MPMC Column in SEMA Member News
Read MPMC's column featured in the January/February issue of SEMA Member News by clicking here.

For information about MPMC, visit www.sema.org/mpmc contact Jim Skelly at jimsk@sema.org.

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PRO Column in SEMA Member News
Read PRO's column featured in the January/February issue of SEMA Member News by clicking here.

For information about PRO, visit www.sema.org/pro or contact Jim Skelly at jimsk@sema.org.

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SCC Select Committee Nominations
SCC members have the unique opportunity to help shape the future of the industry by choosing appropriate representatives to serve on the SCC Select Committee as their eyes, ears and voice. Select Committee nomination forms have been mailed and are due Friday, March 7. The forms are also available on the SCC website at www.sema.org/scc. If you have any questions regarding the elections, contact Paul Moritz at 909/396-0289, ext. 112, or paulm@sema.org.

SCC Column in SEMA Member News
Read SCC's column featured in the January/February issue of SEMA Member News by clicking here.

Speed Networking Breakfast Powered by SBN
Check out this video of SBN members in action during the valuable Speed Networking Breakfast—Powered by SBN held annually at the SEMA Show. Check out the video by clicking here.  

SBN Select Committee Nominations
Members of SBN have the unique opportunity to help shape the future of the automotive aftermarket by choosing appropriate representatives to serve on the SBN Select committee as their eyes, ears and voice. Select Committee nomination forms were mailed and are due Friday, March 7. The forms are also available at www.sema.org/sbn. If you have any questions regarding the elections, contact Paul Moritz at 909/396-0289, ext. 112, or paulm@sema.org.

SBN Column in SEMA Member News
Read SBN's column featured in the January/February issue of SEMA Member News by clicking here.

Discover the SEMA Mentoring Program, Powered by the SEMA Businesswomen’s Network

 “I’ll Get By With A Little Help From My Friends” Joe Cocker

Everyone needs help or expert advice from time to time and SEMA’s Mentoring Program is an excellent resource to get answers to all your questions. Whether you need to know more about SEMA, market information for a start-up company or advice on how to approach your boss about a new position, the SEMA Mentoring Program can help.

“We’ve got CEOs, SEMA Board members and many industry leaders with vast expertise in many different areas signed up as mentors willing to share their knowledge!” explained S. Kellie Colf, SBN Chairman.

The SEMA Mentoring Program is meant to create structured, confidential and trusting relationships between SEMA mentors who offer their automotive industry experience, guidance and support to mentees interested in further developing their professional careers in the automotive industry. This program is available to all SEMA-member company employees and is administered by the SEMA Businesswomen’s Network. 

There are three ways to benefit from the SEMA Mentoring Program:

• One-time question/issue 
• Short-term assistance/guidance with a task 
• Long-term relationship

“Ask A Mentor” is perfect for one-time questions. You can expect multiple SEMA mentors to provide online guidance and answers to your industry-related questions submitted on the “Ask a Mentor” section.

If you need help with a specific project or task, sign up for short-term assistance/guidance. A certified SEMA council/committee mentor with the expertise you seek will be paired up with you to provide guidance with your project.

Need help developing your professional career in the automotive industry? Sign up for a long-term relationship. In this program segment you will be paired with a certified SEMA council/committee mentor who will provide guidance and assistance for ongoing career development or a long-term project. Long-term mentoring relationships are meant to last for more than one year.

So whether you just need an answer to a question or you want to cultivate a mentoring friendship, the SEMA Mentoring Program, powered by the SBN, is available to help. After all, we can all use a little help from our friends. To sign up as a mentor or mentee online, go to www.sema.org/mentoring. To learn more about SEMA’s Mentoring Program and the opportunity to network with proven industry leaders, attend the free SEMA Mentoring Seminar at the Hotrod & Restoration Trade Show.

Discover The SEMA Mentoring Program and What It Can Do for You
HRIA Education Day, in conjunction with the Hotrod & Restoration Trade Show
Date: February 28, 2008
Time: 4:15—5:15 p.m.
Place: Indiana Convention Center, Indianapolis
To Register: http://www.hotrodshow.com/v4files/hotrodshow/08_Manufacturers_Workshop_Flyer12-20-07%20Updated.pdf

For information about SBN, visit www.sema.org/sbn or contact Paul Moritz at paulm@sema.org.

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YEN Select Committee Nominations
YEN members have the unique opportunity to help shape the future of the automotive aftermarket by choosing appropriate representatives to serve on the YEN Select Committee as their eyes, ears and voice. Select Committee nomination forms have been mailed and are due Friday, March 7. The forms are also available on the YEN website at www.sema.org/yen. If you have any questions regarding the elections, contact Paul Moritz at 909/396-0289, ext. 112, or paulm@sema.org.

Join YEN
Did you know that the SEMA Young Executives Network has over 500 members networking in the industry and is the largest SEMA committee? If you are employed by a SEMA-member company and are under the age of 39, then you can join the SEMA Young Executives Network for FREE. If you are interested in becoming part of the team, please visit our website at www.sema.org/yen.

YEN Member of the Month Spotlight
Did you know that YEN has a Member of the Month Spotlight on the SEMA website and that anyone can be nominated? To view previous selections or to make a nomination, visit www.sema.org/yen. 

YEN Column in SEMA Member News
Read YEN's column featured in the January/February issue of SEMA Member News by clicking here.

For information about YEN, visit www.sema.org/yen or contact Paul Moritz at paulm@sema.org.

The SEMA National Education Conference, scheduled April 10–11 in Nashville, is a concentrated, two-day leadership program developed exclusively for automotive specialty-equipment executives. With the knowledge shared at this conference, you'll discover how to lead your company to new levels of success. You'll receive real-world skills for immediate application, targeted information presented specifically for the automotive specialty-equipment industry and inspiration to make the necessary changes to more easily and effectively meet the challenges of a rapidly changing future.

As a communications expert who has been named one of 2006’s most highly rated resource speakers by Vistage International, Mike Allosso has traveled the world bringing this dynamic program to executives and corporations. He will enhance your communication skills at the executive level to ensure effectiveness and provide authentic, realistic secret weapons to help you achieve.

Filler for eNews

In January, the SEMA Performance Parts and Accessories Demand Index (PADI) dropped by 23 points, or 30%, going from 77 in December to its current reading of 54. Currently, 15% of adult American drivers (or approximately more than 15 million households) have indicated plans to purchase specialty-equipment products sometime within the next three months. Looking closer at the index values for each segment, racing and performance parts jumped to a reading of 76, while wheels/tires/suspension products dipped to 39 and accessory/appearance products fell to 61.

Overall, the PADI showed strong increases from April to August of 2007, indicative of stronger demand for specialty equipment during spring and summer months. With the exception of a December upswing, however, the PADI has fallen since September, possibly a reflection of the sales cycles for many of the industry’s products. The above chart and those that follow show both the index values (black line) as well as the percent of consumers indicating that they plan to purchase specialty equipment in the next three months (blue line).

Methodology
Although similar to economic indexes, the SEMA PADI is not designed to report past activity, but rather consumer expectations of future specialty-equipment purchases. The indices track consumer plans to purchase performance parts and/or accessories within the next three months after each respective survey. This helps provide a rough forecast for demand of specialty equipment in the near future.

The PADI, and each of the three sub-indices, is a weighted composite index computed relative to its own baseline value, calculated by taking an average of January through March 2007 raw percentages. This average is then set to 100, and each month’s index is computed relative to the change from its baseline. The indices and their movements are projectable to the national market for specialty-equipment products, which consists of more than 114 million U.S. households.

The Index and three sub-indices (for each product segment) are based on responses to the following questions:

• How likely are you to purchase specialty accessories and appearance products, such as interior trim, restyling products, graphics, a sunroof, etc., for your vehicle in the next three months? Would you say very likely, somewhat likely, not very likely or not at all likely?

• How likely are you to purchase racing and performance products, such as internal engine parts, drivetrain, an exhaust system, a fuel system and ignition components, designed to improve performance through increased durability, capability or dependability for your vehicle in the next three months? Would you say very likely, somewhat likely, not very likely or not at all likely?

• How likely are you to purchase wheels, tires and suspension components, such as specialty shocks, struts, lowering packages, lift kits, custom wheels, performance tires or performance brakes, not including regular brake changes for your vehicle, in the next three months? Would you say very likely, somewhat likely, not very likely or not at all likely?

SEMA has contracted with market research firm TechnoMetrica to gather the data used in building and maintaining the PADI. Each month TechnoMetrica uses a random digit dial telephone survey to collect the data in order to provide a nationally representative sample of U.S. consumers. Responses typically total between 850 and 1,000 in any given month. The margin of error is normally within the plus or minus 3%–4% range.

Although the PADI is not a precise measure of absolute future purchasing activity, it is nonetheless a tool for understanding and predicting industry sales. There are two ways of interpreting the PADI. First, its "direction," whether the index is rising or falling. Second, the values themselves provide a guide as to the degree of change in consumer expectations for purchasing industry products.

PADI In-Depth
By product segment, wheels/tires/suspension components were the most popular specialty-equipment products consumers were likely to purchase (8% or about 8 million households), followed by racing and performance products (7% or about 7 million households) and accessory/appearance products (5% or about 5 million households). Looking at how this translates to index values for each segment, wheels/tires/suspension products dipped down to 39, accessory/appearance products fell to 61, while racing and performance jumped to a reading of 76.


 
While the big index drop for wheels/tires/suspension may raise a few eyebrows, especially since the product category is still the most popular among consumers, industry activity from past SEMA Shows could support this decline in demand. The number of wheel and tire buyers (wholesalers, jobbers, retailers, etc.) attending the SEMA Show has dropped nearly 11% per year, on average, during the past three years, showing that the industry may be responding to possible receding demand for custom wheels. Consumers could now be thinking twice about dressing up their vehicles with shiny wheels as they feel the pinch of increased fuel prices and an economic slowdown.

All is not so bad for the specialty-equipment industry, however. Demand for racing and performance products jumped in January, compared to the previous month. As consumers become more aware that our industry’s products can actually improve performance, thus increasing fuel economy, they may become more disposed to buying performance parts in order to save money in the long run.

In fact, the number of new street-performance products unveiled at the past three SEMA Shows has grown close to 18% per year, on average, showing that manufacturers are continuing to infuse new performance-boosting parts into the industry in order to respond to, and fuel, growing consumer demand.

 
Over the past three months, on average, midsize cars (21%) and pickups (20%) were the most common target vehicles for personalization, followed by fullsize (16%) and compact cars (13%). In addition, over the past three months, on average, car dealerships were in first place in terms of being the most popular purchase destinations among those planning to enhance their vehicles (26%), followed by independent parts stores (18%) and chain auto parts stores (16%).

Mainstream consumers still tend to prefer accessorizing their vehicles at dealerships, and sales of specialty equipment at the dealership level has grown by 11% per year, on average, since 2004.

 
In January, when specialty-equipment buyers were asked what form their vehicle would take after customization, the most common answer was “general personalization” or restyling (49%), followed distantly by “restoration” (17%), “street performance” (16%) and “off road” (8%). One of the most common reasons consumers say they customize their vehicles is to differentiate them from the other similar ones on the road, and mainstream consumers often associate this with simply restyling their vehicle.

Several factors contribute to fluctuations in mainstream consumer demand for specialty-equipment parts and accessories. Economic optimism is slowly declining as consumers feel the crunch from a declining housing market, increased unemployment and increased inflation.

Technometrica’s TIPP Economic Optimism Index, a monthly economic survey sent to consumers in order to gauge their attitudes toward economic prosperity, for example, was on a steady decline in 2007 and continues to drop into 2008. This all could lead to consumers holding on to their discretionary income longer and holding off purchases they once planned. But while some areas of our industry may experience slowdowns, there often lies opportunity in other product areas to satisfy changing consumer demand, such as products that boost fuel economy.

For more information, visit www.sema.org/research.

One of the core segments of the specialty-equipment industry, Performance Street products showed substantial gains in components such as gauges, air filters and intakes, and headers, entered in the New Product Showcase.

Gauges showed one of the highest increases compared to the 2006 SEMA Show. Although accounting for 6.3% of total new performance street products, the number of gauges entered into the New Product Showcase jumped 112% from 2006.

Air filters and intakes accounted for the bulk of new performance street products entered in the Showcase at 9.7 percent, a jump of 73% from the 2006 SEMA Show. The number of headers entered in the Showcase, 11 total, was more than double those in 2006, although exhaust kits dipped slightly at 12.5 percent.

Engine management products, accounting for 7.1% of new performance street product entries, increased slightly, up 58.3% from 2006.

Performance fluids, meanwhile, marked one of the highest increases at 233.3%, jumping from just three new products in 2006 to 10 new entries in 2007. New performance street tire entries recorded similar growth, 200 percent from 2006 to 2007.

Categories that recorded close growth or decline include nitrous oxide kits (down 15%), shifters (up 15%), brake kits (down 22%) and cylinder heads (up 33%).

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

The U.S. Department of Commerce has recently issued a number of reports on the automotive aftermarket for countries around the world. Brief reports on the Mexican, Swiss, Polish, Turkish and Australian markets are among the newest reports available at www.sema.org/international.

More files have recently been added to the SEMA Tech Transfer Program, available exclusively to SEMA manufacturing members. Through the OEM data-sharing initiative, SEMA members can eliminate reverse engineering and bring products produced to OEM specs to market to meet the product demand for some of the industry's best-selling vehicles.

Latest CAD Files Added

• 2008 Cadillac CTS Rear Deck Lid
• 2007 Chevrolet Cobalt SS Supercharger Assembly
• 2005 GMC Yukon Front Side Doors and Arm Rest Assembly
• 2008 Suburban 2500 Transmission
• 2007 Suburban 1500 Transmission 4WD
• 2007 Suburban/Sierra/Silverado Transmission 4WD
• 2006 Ford Fusion Rear Subframe (FWD Model)
• 2008 Ford Focus Front Grille Area
• 2008 Ford Econoline Front Grille Area
• 2005 F-150 Lariat 18" Wheel

There are hundreds of files available through the program. If you need data on a specific component, or just have questions about the program, contact techtransfer@sema.org. To see what's currently available so that you can start building, visit www.sema.org/techtransfer.

Holley Performance Products Inc. announced Monday that its owner/investors approved a plan to enhance the company's capital structure by converting a majority of the company's debt into equity.

"This is a prudent financial move on the part of our owner/investors,” said Holley Chief Financial Officer Thomas W. Tomlinson. “It tremendously strengthens our company's financial position and provides substantial flexibility to invest in our future. This investment will allow the company to realize its full growth potential and will maximize the value we can return to our investors.

“The actual conversion of debt into equity will be accomplished through a ‘pre-packaged’ bankruptcy filing that will cancel out the old capital structure and formally establish the new one. Customers, suppliers and employees will not be affected."

Tomlinson emphasized that “it will be business as usual at Holley throughout the restructuring process, which we expect to be completed in as few as 45 days."

Chief Executive Officer James D. Wiggins added: "We are very pleased with the transformation that has taken place here at Holley over the last several years. Today Holley is a lean and focused enterprise with strong customer relationships, significant technological capabilities and diversified revenue sources.

“We have established a good track record of profitability and growth in enterprise value. This restructuring represents the culmination of tremendous effort on the part of the team at Holley and we are excited to share news of this successful program with you."

Holley's family of companies includes performance market brands such as Holley, Weiand, Hooker, FlowTech, Earl's, and NOS.