SEMA members have a wealth of market research information available to them that is designed to keep decision makers up-to-date on the latest trends. For example, the following is a short excerpt from the “2006 SEMA Compact Performance Market Report”:

Demographics—Consumer Profile

Gender
 
It’s no secret that this industry has a disproportionate leaning towards males, but a growing number of female enthusiasts have changed the landscape, participating in everything from customizing to racing. This is especially true for this niche. Unfortunately, for unknown reasons, our survey was skewed heavily towards men; much more so than in the actual market. While we estimate female participation to inch closer to 20%, the participants from this survey were just 3%–4%. Other sources, such as Foresight Research, the Sports Car Club of America and SEMA’s past research indicate that men comprise roughly 79%–83% of the market, with the ratio of females climbing steadily. Keep this factor in mind when viewing the following information and express caution when applying these results to your market. 

Age

The age range of enthusiasts from our study coincides with the slight shift we have seen at events. The segment is often labeled the youth market, but such a title is no longer a precise fit, as the average age hovers around 25–27 years old. Older enthusiasts have embraced this segment, younger ones have been attracted like the ones before them and the original base has retained interest while growing older. The spectrum has stretched to incorporate a broader range of people. We are seeing groups in their 40s, 50s, and even 60s who are just as motivated to customize their compacts as the younger crowd, but the majority of consumers have been spread to fit the 18–30 range. Also, the “youth-market” application can be misapplied. For one reason in particular—some young enthusiasts also like musclecars, off-road vehicles, light trucks and hot rods—the title misrepresents the youth market as a whole. 

Education

More than half (58%) of those surveyed attended some amount of college, with 25% obtaining a degree. More telling, 89% had graduated high school. This illustrates a bump in education compared to previous years and could explain the growing trend of consumers adopting research into their buying decisions. We have witnessed the rise of Internet searches, tech forums and product reviews which all imply a general increase in awareness and the ability to conduct research. This new generation of tech-savvy consumers value proven results and has the capability of tracking down meaningful information before going to market.

Occupation

True to their age, many compact-performance enthusiasts are full-time college students. They balance their hobby with a desire to better educate themselves. For careers, 24% of those surveyed came from skilled trades or technical professions. These industries lend themselves to hands-on working environments, and often those skills can be carried into other passions, such as car customizing. Other popular positions include serving the community and working as salespeople and middle managers. Only 6.8% claimed to work directly in the automotive industry.

Household Income

Household income can be difficult to assess as participants dislike divulging personal information, even if their anonymity is assured. More than 12% of respondents abstained from giving their household incomes, a dip from the previous year when nearly 20% did not want to reveal their incomes. A nationwide economic slump could have caused people to be more secretive about their status. Regardless, the average household income has risen steadily over the past few years to $47,000, in line with inflation.

SEMA members can receive a complimentary copy of the “2006 SEMA Compact Performance Market Report” as another benefit to being a SEMA member. This data-intensive report may be downloaded by visiting www.sema.org/research.

Source: SEMA Research & Information Center

“VIP” is commonly tagged throughout American culture, but the acronym has permeated the hobby and lifestyles of automotive enthusiasts. While the root of the phrase is easy to understand, the usage as a specific car style is more equivocal. The main reason, and not to keep you waiting, is that VIP Style is not interchangeable with the traditional VIP meaning. The general label can be affixed to everything from extreme hospitality to the cars of the stars. But, VIP style from Japan demands a unique set of parameters. This trend has spread from the streets of Osaka to a global audience, and in the United States, this style has stirred up enough commotion to warrant an independent study. SEMA’s Market Research Department tapped into a leading VIP community, VIPstyleCars.com, to illustrate how the movement is being adopted by North American enthusiasts.

In this installment, we will highlight the cars that these consumers are focusing their attention on. If you want to start a serious argument, jump into a conversation and ask, “Is my Rolls-Royce a VIP car?” Your inquiry may be met with a quick retort that borders on the aggressive. Many enthusiasts interested in this concept abide by rules they learned from other enthusiasts or by flipping through Japanese magazines that they are unable to read. The purists of the group will even stand by stringent rules that classify cars down to chassis type. The view of some is that if a car is not a specific luxury Nissan or Toyota, it simply does not qualify. Due to the brief nature of this article, we will not spend time discussing these beliefs but felt the necessity to report that they exist.

 
The data we have been collecting from enthusiasts has helped to shed light on their buying habits, their perceptions and most importantly their demands. Car selection is a significant priority. Instead of modifying the cars they have in the driveway, the majority of these consumers proactively acquire luxury vehicles.

Lexus and Infiniti are the dominant brands since they parallel the models found in their Japanese-spec Toyota and Nissan counterparts. The top four models include the Infiniti Q45 (Nissan Cima/President), Lexus LS (Toyota Celsior), Lexus GS (Toyota Aristo) and Scion xB (Toyota bB). Scion’s inclusion stems from the reality that not all of the fans of this style have access to luxury cars. Additionally, kei-cars, vans and compacts in Japan have carved their own spot in this arena. Naturally, this sentiment is accepted by a pro-Japan fan base.

New cars are not less desirable but less accessible. Therefore, used cars provide enthusiasts an opportunity to enter this expensive niche while saving some of their paychecks for parts. The chart below can be slightly misleading since the cars from 2005 to the present are mostly the Scion xB. Cars that fit the “traditional” VIP theme are more costly, so more than three-quarters (76%) of the vehicles are pre-2004 models.

For more information regarding VIP style, the upcoming VIP Style Guide or to contribute your thoughts, contact Zack Krelle at zackk@sema.org.

Source: SEMA Market Research & Information Center

Consumers searching for wallet-friendly wheels don't need to sacrifice safety, reliability and cabin comfort, according to Cars.com. The site recently announced its list of the best late-model used cars shoppers can buy on a budget of $10,000. Consumers looking for used cars to purchase often turn to the Internet for information to help them make their purchase. In fact, SEMA research has shown that, after personal experience and magazines, consumers say that the Internet influences which vehicles they purchase. With that said, paying attention to which vehicles some websites are recommending could help to gauge the vehicles consumers will be buying.

Cars.com says that a lot of people don't want to commit to five years of monthly payments for a brand-new car. With that in mind, Cars.com crunched retail values for late-model used cars and factored in reliability ratings, safety equipment and crash-test scores. What began as a list of 215 contenders from 2002 models onward shrank to 40 finalists. To pare things further, criteria such as gas mileage, cabin comfort and driving refinement were also taken into account. Finally, the team took a hard look at how many of these used cars had key safety features such as side-impact airbags and antilock brakes installed.

These 10 cars top Cars.com's list of best used cars for $10,000 along with a brief description of why they chose that particular vehicle.

2005 Ford Focus: The restyled 2005 Focus offers nimble handling with few of the equipment recalls that beset the early-2000s original. With a manual transmission, the Focus returns highway gas mileage in the 30s.

2003 Ford Taurus: The Taurus is a sound used-car choice for families and sensible for young drivers, Cars.com comments. Both the wagon and sedan offer generous cabin and luggage space, not to mention top reliability and crash-test scores.

2003 Mazda Protégé: It's a fun little car, remarks Cars.com editors, with Mazda's trademark steering precision and affable styling that has yet to grow old. The 2.0L four-cylinder is quicker than consumers may think, and highway gas mileage rates in the high 20s.

2003 Mercury Sable: The Taurus' upscale twin offers slightly better reliability ratings and the same stalwart crash-test scores. Factor in standard antilock brakes and available side airbags—they were installed on nearly one-fifth of all 2003 Sables—making it a solid commuter car.

2002 Buick LeSabre: Cars.com states that the LeSabre is a comfortable car for drivers young and old, and the 2002 model came chock full of safety features: antilock brakes, side airbags and active head restraints were standard, and an optional electronic stability system—a rare safety feature five years ago.

2002 Chevrolet Impala: Chevy's 2000–05 iteration of the Impala arguably boasted sharper styling than its anonymous successor. Either of the two V6s provides adequate grunt, Cars.com says.

2002 Ford Windstar: Minivan lovers can fill the Windstar with up to seven people, and there are plenty of bells and whistles for those who want them—from power-sliding doors and rear parking sensors to power front seats and heated leather upholstery.

2002 Honda Accord: The sixth generation, built from 1998–2002, delivered excellent reliability and respectable crash-test ratings. High-ticket safety options were widely incorporated: side airbags came on 46% of 2002 Accords, and ABS made its way into nearly 60%. Combine the stick shift and four-cylinder for highway gas mileage in the high 20s; it drops to the mid-20s with the V6 and automatic.

2002 Honda Civic: The Civic combines thriftiness and refinement in a way few others can, making it an excellent choice for those who often drive solo, Cars.com notes. The four-cylinder won't impress anyone with its performance, but it turns out highway gas mileage in the mid-30s.

2002 Oldsmobile Aurora: Cars.com comments that the Aurora is proof you can buy a used luxury car for around $10,000. The restyled early-2000s model earns high marks for reliability and crashworthiness. It says that most examples should have all the luxury consumers need; leather upholstery, a power driver's seat and automatic climate control came on all models, as did antilock brakes and side airbags.

Source: Cars.com. (August 6, 2007). "Cars.com Announces Wallet-Friendly Wheels." Cars.com press release courtesy of PR Newswire.com.

Although pickup sales have declined by nearly 18% in July compared to last year’s sales, consumer still plan to accessorize the pickups they are purchasing. According to the latest SEMA research, 17% of the 24 million households surveyed that plan to purchase specialty equipment over the next three months plan to accessorize a pickup. To help SEMA members make sense of the current buying behavior of pickup owners, SEMA put together the “2006 SEMA Light Truck Personalization Report.” The following is a short excerpt of that report.

Place of Purchase/Installation of Accessories
Pickup owners perceive performance parts and accessory retailers differently. Most full-size pickup owners, especially Chevy Avalanche, Dodge Ram and Ford F-Series owners, believe the franchise new-vehicle dealer provides better installation.

2006 Place of Purchase for Full-Size Pickup Modifications

SEMA members can now receive their complimentary copy of the “2006 SEMA Light-Truck Report” by visiting www.sema.org/research. 

Source: SEMA Research & Information Center

If you missed Friday's webinar about the Supreme Court's recent decision on minimum resale price agreements, get the download now from www.sema.org/webinar. The audio/video, as well as a PDF presentation, are available from the menu at the right of the page.

The U.S. Supreme Court decided to upset 100 years of case law related to agreement to set minimum retail or resale prices. Learn the legal and practical significance of this decision and how it can affect your business from presenter Barbara T. Sicalides of Pepper Hamilton, LLP, Vice Chair of the firm's Commercial Litigation Practice Group. Her practice covers antitrust litigation and counseling, distribution disputes/arrangements, class actions, securities and other general litigation. 

SEMA Manufacturing members are invited to get a look at the new, redesigned-for-2008 Honda Accord coupe and sedan at an upcoming measuring session, Friday, Sept. 7, in Torrance, California. Cameras are permitted at the session, which begins at 8:30 a.m. and ends at 4 p.m.

The deadline to register is Friday, August 31. E-mail responses with name(s), company name, address, phone number and e-mail address to: measuringsession@sema.org

Images of the coupe concept can be viewed at www.hondanews.com

Location:
American Honda Corporate Headquarters
1919 Torrance Blvd.
Torrance, CA 90501

Questions? Contact:
Bill Wolf : 909/396-0289 x177
Sandy Conolly: 909/396-0289 x155
www.sema.org/oem

Upfitter Integration, on behalf of General Motors Vehicle Engineering and GM Fleet & Commercial Operations, is extending an invitation to SEMA Manufacturer members to attend a product review for the 2008 Express/Savana vans and cut chassis, August 21 and 22, at the Wentzville Assembly Center in Wentzville, Missouri.

Discussions on product changes for the 2008 model year G van and G cutaway chassis, as well as the introduction of the 2009 model year G Cutaway Commercial Chassis (14,050 GVW; gas and diesel), will anchor the session agenda.

Upfitter has a complete program scheduled, including a plant tour for those who wish and a reception/dinner at Bear Creek Country Club on August 21.

The following day registration and continental breakfast at the Wentzville Assembly Center begins at 7:30 a.m., with product presentations, walk around, and wrap-up Q&A to follow. Lunch will be provided, and the meeting is expected to conclude by 2:30 p.m.

"Business casual" attire is requested, and due to the size of this preview, attendance is limited to the first 200 requests per advance registration, with only (2) persons per company allowed. A confirmation letter with a complete detailed package (maps, agenda, hotel recommendations) will be e-mailed upon receipt of registration form.

All attendees are required by General Motors to sign a confidentiality statement (click here) and please be aware that cameras, video cameras, tape recorders or recording devices of any kind are prohibited inside the facility. This includes camera cell phones.

Due to the sensitive nature of this preview, all attendees are required to provide photo identification at the registration desk. Completed registration forms for each attendee should be faxed to 586/492-1085 and responses must be received no later than August 10, 2007.

Any questions, please contact:
Norma Muriel - 586/492-4982
Tom Vaclavik - 586/492-2331

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

SEMA’s upcoming Technical Briefing Seminar on Electronic Stability Control (ESC) systems will provide members with an overview of the impact of ESC implementation on the specialty-equipment industry. Representatives from Toyota, Bosch and Mechanical Simulation Corporation will be on hand to offer attendees a basic technical understanding of ESC, as well as practical approaches for determining compatibility and system integration of a given aftermarket product with ESC.

Methodologies and ways to assess the interaction between ESC and specific specialty-equipment product lines will be discussed and demonstrated with typical chassis and vehicle modification examples. This seminar, as well as all of the vehicle technology briefing seminars, will be highly interactive and responsive to immediate questions, concerns and priorities.

Key Topics will include:

• Why should the aftermarket be aware of ESC?
• What are the basics of ESC?
• Which aftermarket products could affect ESC performance?
• What methods are available to assess how your product might affect ESC?
• What are the options for changing the product interactions with ESC?
• What are the positive and growth aspects of ESC for the aftermarket?
• What advanced and emerging technologies will soon be introduced?

Toyota will present an overview of its current chassis control technologies, as well as new trends in stability control in Toyota, Lexus and Scion vehicles. Toyota has been a leading OEM in embracing specialty-equipment suppliers and using their capabilities to provide customization and accessorization of their products. As an industry leader, Toyota's actions have a profound impact on all OEMs.

Similarly, Bosch is a preeminent Tier 1 supplier, well known for their expertise in a wide variety of automotive products. Bosch was developing ESC with Mercedes from the very beginning of its introduction to the market. They produce ESC systems that are used on vehicles that range from the BMW 750 to the Chevrolet Silverado (The hybrid Silverado was a 2006 SEMA Design Award Vehicle). Bosch's approach to the aftermarket will also have a strong influence on the aftermarket supplier base.

Mechanical Simulations provides the de facto industry standard tools for vehicle dynamics simulation. Dr. Tom Gillespie is the co-founder of the company and a renowned expert on vehicle dynamics. He has authored one of the leading textbooks on vehicle dynamics that is widely used at universities and companies throughout the automotive industry.

The laptop computer-based tools that Mechanical Simulations provide will aid specialty-equipment companies in assessing the effect of their product on key ESC parameters. Basic capabilities and applications will be presented and discussed during the presentation. Depending on member interest and feedback, SEMA would help provide access to these capabilities on an as-needed basis.   

In addition to these interactive presentations, there will be further panel discussions and the opportunity to review the latest vehicle technology offerings from Toyota and hands-on use of Mechanical Simulations programs.

Toyota will be bringing its latest advanced technology platform vehicle, the Lexus IS-F, to showcase the future of chassis stability and control technologies and a special edition "Sport Version" of Toyota's Vehicle Dynamics Integrated Management (VDIM).

The content of this Technical Briefing Seminar on ESC is aimed at company owners, technical directors, engineers, and product planners. SEMA's goal is to provide the latest vehicle technology understanding and information on ESC to help address the challenges of compliance with NHTSA's rule on ESC, and turn these challenges into solutions and opportunities for member companies.

Presenters:

• John Waraniak, VP Vehicle Technology, SEMA
• Ed Browalski, SEMA ESC Advisor and Founder ACEC
• Paul Williamsen, National Manager, Lexus College, Toyota Motor Sales
• Scott Dahl, Marketing Director, Chassis Control Systems, Robert Bosch Corp.
• Tom Gillespie, Director, Product Planning, Mechanical Simulation Corporation

Technology Briefing Seminar
Electronic Stability Control (ESC) Systems
Thurs., Sept. 6, 2007
9 a.m. – 3 p.m.

Location:
SEMA Headquarters - AAA Building
1575 S. Valley Vista Dr.
Diamond Bar, CA 91765

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