Filler for eNews

Filler for eNews

Don't forget : you can find continual updates to events happening in your industry anywhere in the world! Just visit the SEMA Calendar of Industry events here to view our continually updated database of races, car shows, conventions, educational activities, even swap meets and auctions. The database is searchable by date, type of event, segment, location and includes everything from upcoming LeMans and Formula 1 events to tuning shows and expos in Slovakia and Uzbekistan.

Posting your event in the database is easy. Just contact Shirley Presecan in SEMA's Market Research department with the details.

Dates and locations for several upcoming SEMA-sponsored shows and activities have been announced. Details are:

>> SEMA Webinar: Urban-Lifestyle Report, July 26, 10 a.m. (PST)
>> SEMA Installation Banquet & Gala Fundraiser, July 27, Irvine, California
>> SEMA Webinar: SEMA Show Case Study Review—How Exhibitors Create Success, August 7, 10 a.m. (PST)
>> MRC Rep Conference, September 26–27, Phoenix
>> SEMA Show, October 30–November 2, Las Vegas
>> MPMC Media Trade Conference, January 22–24, 2008, Los Angeles

For association-related travel, contact Manya Petropaki (manya.p@travelstoreusa.com) at Travel Store USA, 949/930-9268.

SEMA-members companies have posted several new listings for job opportunities at www.sema.org/classifieds. Working for a SEMA-member company has many advantages. In addition to working for a company that supports and contributes to the success of the overall industry, being employed by a SEMA-member company enable the employee to participate in webinars, access free market research, join SEMA committees and more. The newest classified listings posted under Positions Available include:

• Territory Manager, Denver, Colorado 
• Design Engineer, Clackamas, Oregon
• Sales Manager, Baltimore, Maryland
• Customer Service/Salesman, Baltimore, Maryland 
• Mechanical Engineer, Cedar Rapids, Iowa 

SEMA members: Have a job opening that you need filled? Members are invited to post classified ads on www.sema.org/classifieds free of charge. Categories include Positions Available, Positions Wanted, Rep Opportunities, WD Opportunities, For Sale, Items Wanted, Business Opportunities and Internships. Visit the site for details.

The world automotive electrical products market is projected to grow at a compounded annual rate (CAR) of 3.9% during the analysis period 2001–2010 and reach about $52 billion by 2010, according to Global Industry Analysts. According to the company’s latest report on the automotive market, Europe, accounting for an estimated share of 27.83% in 2006, constitutes the largest market, while, in terms of growth rate, Asia-Pacific and Latin America are forecast to surpass all other regions. The automotive connectors market is projected to emerge as the fastest-growing segment in the global automotive electrical products market with a compounded annual growth rate (CAGR) of over 11% during the 2001–2010 analysis-period.

The automotive electrical products market is about to witness a tremendous change in the near future with the advent of 42-volt (42V) electrical system replacing the present 14V system. Introduction of 42V system increases demand for a variety of equipment, including integrated starter alternators, high-intensity lighting systems, wiring harnesses, connectors, power-steering systems and several other electrical and electronic equipments.

Miniaturization and integration are expected to increase considerably in the automobile industry. The major concentration would be on realizing small size with adequate cooling at an assured low cost. Miniaturization and integration demand electronic systems that can withstand high temperatures. Some of the new products in the world of automotive electrical include night vision, electronic power-steering system, OnStar mobile concierge service, intelligent cruise control, collision-warning systems, smart airbags, antilock-braking systems (ABS), drive-by-wire systems, smart sensors and telematics.

The market for automotive electrical products is driven by various factors, including new technological innovations that demand more power, and government regulations regarding fuel economy and emissions control. Increasing electronic content in automobiles is expected to drive the growth of electrical components.

Europe, Japan and North America represent the major markets for automotive electrical products worldwide, with a wide number of vehicles used and manufactured in these regions. Asia-Pacific and Latin America, on the other hand, epitomize the fastest-growing markets for automotive electrical products. Eastern European countries are expected to increase their market shares significantly in the future.

The automotive connectors market is projected to emerge as the fastest-growing segment in the global automotive electrical products market with a CAGR of over 11% during the 2001–2010 analysis period. Automotive connectors have been slowly evolving into a major component of modern automobiles. A wide range of new applications, such as advanced in-car entertainment systems and intelligent driving systems, among others, have been the major drivers of growth in automotive connectors in the recent past. The advent of intelligent driving systems, such as adaptive front lighting (AFS), telematics, collision warning systems and collision control systems have been the major drivers of growth for automotive connectors.

The automotive batteries market, the second-largest segment for automotive electrical products, is estimated to account for a market share of 19.8% in 2006. Asia-Pacific, the fastest-growing market, is expected to exceed the U.S. sales by 2008 to become the second-largest market for automotive connectors. The region is projected to grow at a CAR of 10.5% over the analysis period.

Driven by advanced lighting systems, the automotive lighting-equipment market is projected to witness the second-fastest growth, registering a CAGR of 4.8% during the analysis period 2001–2010. Asia-Pacific is projected to register sales of $2.3 billion by 2010 and emerge as the largest market for automotive lighting equipment. Latin America is the fastest-growing market registering a CAGR of 9.8% over the analysis period.

Advanced technologies, such as light-emitting diodes (LED), high-intensity discharge (HID) and neon lighting are having a strong impact on the automotive lighting sector. The global automotive lighting industry has become more competitive with companies unveiling new technologies to improve product performance, safety and styling. The global automotive alternators and starters market is projected to reach a total of $8.6 billion by 2010. Europe was the largest market for alternators and starters in 2006, closely followed by Asia-Pacific and Japan. However, by the end of the forecast period, Asia-Pacific is likely to attain the leading position, leaving behind Europe and Japan.

Source: Global Industry Analysts (July 17, 2007). “Automotive Electrical Products Market to Reach US $52 Billion by 2010 According to New Report by Global Industry Analysts, Inc.” Global Industry Analysts press release.

As consumers become more realistic about the fuel-efficiency capabilities of hybrid vehicles, the percentage of new-vehicle shoppers who are considering a hybrid has declined, according to recently released J.D. Power and Associates' 2007 Alternative Powertrain Study. Their study examines the percentage of consumers that are considering purchasing either hybrid or clean-diesel powertrains.

Now in its second year, the Alternative Powertrain Study examines the reasons why consumers consider or avoid alternative powertrain vehicles. The study includes the Automotive Environmental Index, which combines U.S. Environmental Protection Agency (EPA) publicly available data related to fuel economy, air pollution and greenhouse gases for 2007 model-year vehicles and J.D. Power and Associates’ voice-of-the-customer data related to stated fuel economy. Voice-of-the-customer data—consumer data derived from other J.D. Power studies—is also used to help determine the relative importance of these environmental factors.

The study finds that 50% of new-vehicle shoppers are considering a hybrid—down from 57% in the 2006 study. While a general decline can be observed across all age groups, in particular, younger vehicle shoppers (16 to 25 years old), appear less interested in the powertrain technology, with 60% considering a hybrid in 2007, down from 73% in 2006. The average additional price potential hybrid buyers are willing to pay for this powertrain is $2,396, with the expectation of receiving an improvement of 18.5 miles per gallon (MPG) over a traditional vehicle of similar size.

“In the 2006 study, we found consumers often overestimated the fuel efficiency of hybrid-electric vehicles, and the decrease in consideration of hybrids in 2007 may be a result of their more realistic understanding of the actual fuel-economy capabilities,” said Mike Marshall, director of automotive emerging technologies at J.D. Power and Associates. “While hybrid sales are steadily increasing, they continue to face competition for market share against an increasing offering of other alternative powertrains and fuels options.”

The study also finds that consumer consideration for purchasing clean-diesel vehicles, which were newly introduced to the market in 2007, is at 23%. In 2006, only 12% of shoppers considered purchasing diesel vehicles. On average, fans of this powertrain are willing to pay an additional $1,491 for the clean-diesel option and expect an average additional fuel economy improvement of 15 mpg.

“As the automotive industry steadily offers more alternative powertrain/fuel options to consumers, buyer preferences will continue to shift the market in the coming years,” said Marshall. “With high fuel prices, perceived dependency on foreign oil and an increased focus on environmental issues all being top of mind among consumers, manufacturers will not only have to continuously make efforts to produce more fuel efficient vehicles, but also to diversify the range of options.”

Toyota is the highest-ranking nameplate in the Automotive Environmental Index, followed by Volkswagen and Honda, respectively. Toyota has improved by six rank positions since the 2006 study and has a strong showing with both hybrid and gasoline-powered models. Honda also performs well, with four models in the top 30. Ford and Nissan follow, each with three models. Similar to 2006 results, there are only two luxury models in the top 30—the Lexus GS 450h and RX 400h.

The 2007 Alternative Powertrain Study includes responses from more than 4,000 consumers in May and June 2007 who plan to purchase a new vehicle within the next two years. The voice-of-the-customer components of the Automotive Environmental Index are derived from the 2007 Alternative Powertrain Study and the J.D. Power and Associates 2007 Initial Quality Study.

Source: J.D. Power and Associates (July 16, 2007). “J.D. Power and Associates Reports: Consumer Consideration of Hybrid Vehicles Drops as Fuel Efficiency Expectations Among Shoppers Become More Realistic.” J.D. Power and Associates press release courtesy of PR Newswire.

Team Toyota’s Denso-backed SARD Supra HV-R scored an impressive victory at the Tokachi 24-hour endurance race in Japan on July 15 and 16. News has already started circulating about the achievement as this feat marks the first time a hybrid car has won such a contest. Even more notable was the convincing fashion in which it dominated: 19 laps ahead of its nearest competitor. Starting from the pole position the car accumulated 1,960 miles and 616 laps without yielding its front-running slot.

The Supra was a retired work horse from a long string of Super GT races. Its new purpose is to test and develop hybrid systems for racing applications, and this past demonstration signaled a bright future for this technology. Supplementing the old 4,480-cc 3UZ-FE V8 were three electric engines; the two up-front were rated at 10kw each and housed within the wheels and a single 150kw mounted to the rear axle. Power came from a proprietary super capacitor that was charged from four-wheel regenerative braking. The benefits include quick bursts of power for urgent accelerating while shedding the burden of traditional batteries. Surprisingly, these additions do not carry a severe weight penalty as the Supra tips the scales at only 2,300 pounds.

The Denso SARD race team reported an enthusiastic assessment of the vehicle concluding the race. Substantial performance gains were reported during moments of severe acceleration and deceleration with the regenerative braking system supplementing power and decreasing energy lost. Fuel economy was also a major homerun, as the hybridized Supra consumed 10% less fuel than the gasoline system it ran in previous configurations. Brake-pad wear was reduced by roughly 50% over the non-regenerative system. In endurance racing these changes present opportunities to make fewer pit stops.

In 2006, Toyota was the world’s first manufacturer to enter a hybrid race vehicle in the endurance race with their Lexus GS450h, which finished 17th overall.

Source: SARD Corporation. Retrieved July 20, 2007, from www.sard.co.jp

Mobile consumers are quickly moving beyond traditional surprise-and-delight automotive features and asking themselves, “Why aren’t cars better equipped to accommodate today’s mobile technology?” A recent article by Rob Tregenza, vice president of consumer strategist, transportation/travel/leisure and sports/fitness for Iconoculture, discusses why consumer demands for access to personal media are set to reshape the future of automotive features. Iconoculture is a consumer-trend research and advisory-services company that works to enable innovation and business growth for its clients.

Specialty-equipment manufactures could benefit from knowing and reacting to what automobile features consumers are demanding. To access Tregenza’s article and learn more about future automobile trends, click here: http://www.sema.org/images/pdf/More_Pod_Less_Box_Iconoculture.pdf.

Source: SEMA Research & Information Center

General Motors recently announced that it has reached a joint venture agreement with Penske Corporation to purchase 50% equity of VM Motori S.p.A, a designer and manufacturer of diesel engines based in Cento, Italy.

This investment builds on GM’s existing relationship with VM Motori, GM’s diesel expertise worldwide, and its strong relationship with Isuzu. 

“Diesel engines have a very important role in GM’s global advanced propulsion strategy,” said Tom Stephens, group vice president of GM Global Powertrain and Quality. “We are leveraging expertise and resources within our company and through technology partners to ensure we develop the world’s best powertrains.”

GM announced at the Geneva Motor Show that it will jointly develop a new 2.9L V6 turbo diesel engine with VM Motori that is scheduled to launch in the Cadillac CTS in Europe in 2009. GM Powertrain Europe will focus on the development of the first industry application of a clean combustion process called closed-loop combustion control, electronic-engine control and exhaust-gas aftertreatment, as well as calibration and integration into GM vehicles. VM Motori plans to build the new unit at its plant in Cento, Italy, and is responsible for the mechanical aspects of the engine’s design, development and testing.

Penske Corporation, based in Bloomfield, Michigan, is a transportation services company that encompasses retail automotive sales and services, truck leasing, supply-chain logistics management, transportation components manufacturing, and high-performance racing.

VM Motori, founded in 1947, specializes in engine design and production for a variety of uses, including light commercial vehicles.

GM currently offers 17 diesel engine variants in 45 vehicle lines around the world. GM sells more than one million diesel engines annually, with products that offer a range of choices from the 1.3L four-cylinder diesel engine sold in the Opel Agila and Corsa, up to the 6.6L V8 Duramax diesel sold in fullsize vans, heavy-duty pickups and medium-duty trucks in the United States.

Source: General Motors Corp. (July 16, 2007). “GM Will Buy 50 Percent Equity Interest in VM Motori” General Motors Corp. press release.