According to Honda, the next-generation FCX Concept fuel-cell vehicle made its European driving debut at the Gotland Ring in Sweden. They claim the vehicle is 60% energy efficient, about three times that of a petrol-engine vehicle and twice that of a hybrid.

The FCX will be the basis for a new fuel-cell vehicle that Honda is currently developing. Limited marketing for the vehicle is scheduled to begin in 2008 in Japan and the United States. The focus will be, according to Honda, to deliver a new dimension in environment-friendly driving pleasure not found with petrol-engine vehicles. The FCX Concept is equipped with a V Flow fuel-cell platform. In prior versions of fuel-cell stacks, the electricity generation flowed horizontally. This vehicle features a vertical-flow design, which allows gravity to assist in discharging the water that is produced. The result is an improvement in water drainage, which is the key to high-efficiency fuel-stack performance.

The new fuel stack is 20% smaller and 30% lighter than the current FCX FC Stack, but its power output is 14kW greater. The drive motor is positioned coaxially with the gearbox for a more compact design. Overall, the powerplant is about 180kg lighter than that of the current FCX and is about 40% smaller in volume. The V Flow platform has allowed designers to create a low-riding sedan form that would have been difficult to achieve in a conventional fuel-cell vehicle.

Cold-weather starts can occur at lower temperatures than the current FCX model. The FCX Concept carries a compact and highly efficient lithium ion battery as an auxiliary power source. The efficiency improvements amount to a travel range that is 30% greater than that of the current FCX. The interior includes upholstery and door linings made from Honda Bio-Fabric, a plant-based material that offers outstanding durability and resistance to sunlight damage.  The vehicle will hold four passengers and has a horsepower rating of 127.

Source: (June 25, 2007). Honda Motor Co. “FCX Concept Makes its European Driving Debut.” Retrieved July 5, 2007 from http://world.honda.com/news/2007/c070625FCXConcept/

Filler for eNews

SEMA members are invited to a free listing in the 2007–2008 SEMA International Buyers Guide, an exclusive directory of specialty-equipment companies seeking overseas business. The International Buyers Guide is distributed worldwide each year to every international buyer that attends the SEMA Show, and throughout the year at international trade shows. It’s also sent to more than 50 U.S. embassies including those in Germany, United Kingdom, Mexico, Japan, Australia, Italy, Brazil and South Africa.

The listing form is available online at www.SEMAshow.com/ibg.

With industry professionals from more than 100 countries expected at the 2007 SEMA Show, the annual trade-only event has taken extra steps to include several services and business opportunities specifically for international visitors.

Taking place Tuesday, October 30–Friday, November 2, in Las Vegas, the SEMA Show is the premier automotive specialty-products trade event in the world.

International programs at the Show will include a custom-fit trade leads program, a full-service Center for International Commerce, wide-ranging education programs, social functions and networking opportunities. 

 “The automotive specialty-equipment market is booming worldwide,” said Linda Spencer, SEMA director of international relations. “As the market’s largest trade event, the SEMA Show is attracting more and more international businesses each year.”

SEMA Vice President of Communications and Events Peter MacGillivray reports that the 2007 SEMA Show will feature exhibitors in more than 1 million square feet of exhibit space. “More than 2,000 unique automotive vehicles will be on display in and around the convention center, too. These will provide Show attendees with a vast number of creative new ideas for vehicle personalization,” he stated.

Special services for international visitors to the SEMA Show include dozens of free seminars and roundtable discussions about selling in international markets as well as the U.S. market, a SEMA International Buyers Guide, multilingual “We Export” signs at exhibitors’ booths and export experts at key booths. SEMA staff from the United States and overseas offices, as well as representatives from the U. S. Department of Commerce and the U.S. Embassy, will be available to assist SEMA Show attendees from around the world.

The Center for International Commerce will have interpreters, conference rooms, Internet access, international phone service, fax, and e-mail service, 45 international specialty-equipment magazines and up-to-date international research reports. An electronic locator will also make it even easier for buyers to locate the products they seek at the Show.

“Before the Show, SEMA’s International Trade Leads program will match buyers with the exhibitors of products of particular interest,” said Spencer. “Buyers who will attend the SEMA Show can tell us in advance what products they are looking for. We then pass those requests along to our Show exhibitors who contact the international buyers and make appointments to meet during the Show,” she explained.

Easy online registration is available in seven languages—English, Spanish, French, German, Japanese, Chinese and Portuguese—at www.SEMAshow.com. The Show’s comprehensive website contains complete information about the SEMA Show (schedule, floor plan, exhibitor list and travel and accommodations). The site will be continually updated until the Show opens.

The SEMA Show is certified by the U.S. Department of Commerce’s International Buyer Program. For more information about programs and services available to international visitors at the SEMA Show, contact Linda Spencer, 202/783-4032 or lindas@sema.org.

The SEMA Ambassador Program for 2007 is in full swing. SEMA Ambassadors are current members of the association who actively seek to recruit new members, thus fortifying support for the industry and helping to grow the force of the SEMA membership.

The easiest way to get started in the 2007 program, which started in October (2006) and runs through September 30 (2007), is to simply share your experiences on how SEMA has benefited your company with potential SEMA members. To make recruiting even easier, SEMA membership applications are available 24 hours a day on www.sema.org.

Rewards for ambassadors who have recruited the most members during the program’s year are given at three levels—Gold Medal (recruited the most, $1,000 American Express Gift Check), Silver Medal (first runner-up, $750 American Express Gift Check) and Bronze Medal (second runner-up, $500 American Express Gift Check). There is a even a drawing held during the SEMA Show 2007 that provides all ambassadors a chance at an American Express Gift Check worth $250.

For complete information on the program, e-mail the SEMA Membership department at member@sema.org or call 909/396-0289.

The following are the 2007 SEMA Board of Directors election results. 

Chair-Elect

• Rick Rollins, Superchips, Inc.

Manufacturers Category

• Gale Banks, Gale Banks Engineering
• Mike Spagnola, Street Scene Equipment
• Doug Evans, Primedia (Incumbent)
• Richard Sherman, Baer Brakes (Incumbent)
• David Stutts, Hot Rod Air, Inc.
• Dennis Gage, Bradley David Productions (Incumbent)
• Jeep Worthan, Auto Meter
• Larry Erickson, Ford Motor Company

Distributor/Retailer Category

• Anne Johnson, CTW, Inc. (Incumbent)
• Van Woodell, Weathers Auto Supply
• Donnie Eatherly, P&E Distributors, Inc.
• Tony Napoli, American Speed Centers
• Bob Price, CE Band, LLC (Incumbent)

Manufacturers’ Rep Category

• Bill Perry, Bill Perry & Associates (Incumbent)
• Dave Wrobleski, Jim Wrobleski & Co., Inc.
  

On June 28, 2007, the Supreme Court decided to shift the playing field and overrule 100 years of legal precedent banning agreements between manufacturers and their resellers to set the minimum price charged by the resellers to their customers. The decision of the Court was very close—5 to 4—and the opinion makes clear that setting a minimum resale price is not now automatically legal. 

Instead, what the Court said, in a very detailed opinion, was that there are situations where resale price agreements would be illegal under the antitrust laws and courts must examine them closely to determine the effect such agreements have on competition.

Summary of the Case

In 1995, Leegin, a manufacturer of the Brighton brand of women's accessories, began selling its products to PSKS, a women's clothing store. PSKS began promoting the Brighton brand heavily and by 1999 the Brighton brand became PSKS' most profitable line. 

In 1997, Leegin implemented a resale price policy stating that it would only do business with retailers who followed the Leegin suggested retail prices. This new policy made clear that Leegin would not do business with retailers who discounted Brighton products. Later, Leegin also introduced a marketing initiative designed to provide incentives to Brighton retailers that created a separate section for the Brighton brand within their stores. To participate in this initiative, retailers had to pledge to "follow the Brighton Suggested Pricing Policy at all times."

In 2002, Leegin learned that PSKS had violated its pricing policy by placing all of its Brighton merchandise on sale. In response to this violation, Leegin suspended all shipments to PSKS. As a result of Leegin's actions, PSKS' profits decreased significantly.

A jury found that Leegin and its retailers had agreed to fix the retail prices of Brighton products, and awarded triple damages in the amount of $3.6 million to PSKS. Leegin appealed that judgment. In its appeal, Leegin did not challenge the jury's findings; rather, it challenged the court's application of the long-standing antitrust rule requiring courts to find that all agreements setting minimum resale prices were automatically illegal.

Historically, courts have classified certain trade restraints, including minimum resale price, market allocation and horizontal price-fixing agreements, as automatically or per se illegal. Under the per se rule, the restraint at issue, if proven is automatically illegal. Agreements fixing resale-price minimums have been illegal since the Supreme Court's decision in 1911 in a case known as “Dr. Miles.” In the years since, the Court has increasingly limited the application of the per se rule to vertical restrictions (between upstream and downstream firms).

On appeal, Leegin argued that instead of applying the per se rule, a more flexible standard, the rule of reason, should be applied to its agreement with PSKS to resell products at a set price. Applying the rule of reason would have allowed Leegin to explain its business reasons for setting resale prices and any procompetitive effects of its policy. 

The court or jury would then be allowed to assess the truthfulness of the business reasons offered by Leegin and to weigh the pro- and anti-competitive effects of the resale-price agreement on the market. To bolster its argument, Leegin pointed out that in recent rulings, the Supreme Court had not been uniformly applying the per se rule in price-fixing cases. 

The Appeals Court found that although the Supreme Court had not applied the per se rule consistently to all price-fixing arrangements, it had been consistent in applying the per se rule in vertical minimum price-fixing cases. Therefore, the court refused to apply the more flexible rule of reason and upheld the jury verdict. 

Leegin, probably emboldened by the many recent pro-defense Supreme Court antitrust decisions, asked the Court to take its case. A number of business groups joined Leegin in its request that the Supreme Court review and reverse the per se rule in Dr. Miles. These groups argued that application of the per se rule to resale price restraints "has no foundation in economic theory" because minimum resale pricing agreements often can have "substantial pro-competitive effects."  

The U.S. antitrust enforcement agencies also argued that the Court should overrule Dr. Miles. Thirty-Seven state attorneys general along with other groups, however, argued that the automatic illegality rule should still apply to minimum resale-price agreements.

The Decision

Last week the Supreme Court rejected PSKS' arguments and decided that agreements between suppliers and their resellers to fix the resale price should not be automatically illegal. The Court wrote that minimum-price agreements can benefit consumers by enabling retailers to invest in customer services without fear of being undercut by discount rivals, and by giving consumers more options to choose among low-price/low-service and high-price/high-service brands, or brands that fall in between. 

The Court explained that such pricing agreements should encourage retail services that increase competition between different brands, which is good for the consumer. Such agreements also could make it easier for new products to enter the market because competent retailers will be more willing to invest the effort and expense required to distribute a new product if they are able to charge a higher price. Although the Court acknowledged that there could also be negative effects on competition, it concluded that because such negative effects were possible was not enough reason to continue to treat minimum resale-price agreements as automatically illegal.

Watch Your Step—Resale Price Agreements are NOT Automatically Legal

Many businesses may think that this decision grants manufacturers a "free pass" regarding resale pricing practices. Businesses should beware and tread carefully. The Supreme Court has changed the legal standard that courts will use to examine such practices, but it is not a "green light" for all manufacturers seeking to control resale-price minimums. 

These pricing policies will be examined by the courts and a number of factors will be weighed in the decisions regarding their legality, but still many pricing agreements are likely to be found to be illegal. 

The Court explained that resale price agreements are dangerous and warned the lower courts "to be diligent in eliminating their anti-competitive uses from the market.” The Court gave examples of situations where such pricing agreements will be particularly treacherous, specifically when a large number of manufacturers in a given industry decide to use this practice, when there is evidence that pressure from the resellers was the impetus for the price minimums, or when the manufacturer implementing such an agreement is dominant, the Supreme Court warned that setting resale price floors is particularly dangerous. 

Also, most states have their own competition statutes and bodies of case law that cover resale price restraints. Some of these states require or encourage the local courts to interpret their antitrust laws like the federal courts, but not all states have that requirement. Remember: 37 state attorneys general advocated that the Supreme Court keep the per se rule for minimum-resale price agreements. Moreover, minimum-price agreements are currently illegal in Canada and many other countries. 

Businesses considering establishing resale price policies or agreements should proceed with extreme caution and consult with antitrust counsel experienced in such practices. Even companies with the best intentions can find themselves in the middle of costly and lengthy antitrust litigation or investigations. — Barbara T. Sicalides, Pepper Hamilton LLP

Barbara Sicalides, a partner in the Philadelphia and Washington, D.C., offices of Pepper Hamilton LLP, is vice chair of the firm's Commercial Litigation Practice Group and head of that group's Antitrust Section. Ms. Sicalides' practice covers the full range of antitrust litigation and counseling matters. She may be reached at sicalidesb@pepperlaw.com. 

 For additional information, Ms. Sicalides presented the SEMA webinar "MAP and Resale Price Policies (AKA Colgate Policies)" on April 26, 2007 which is available at: http://www.sema.org/main/semaorghome.aspx?id=57377

In addition to its charity golf tournament, the SEMA Installation Banquet and Gala Fundraiser will feature an auction to benefit the Petty Victory Junction Gang Camp and Childhelp children's charities. Among the impressive roster of items to be offered at the upcoming charity auction are exotic resort and cruise vacations, one-of-a-kind prints and photography, performance driving school certificates and NASCAR collectibles are up for bid.

The Gala Auction begins at 6 p.m., Friday, July 27, at the Hyatt Regency Irvine, in Irvine, California.

If you would like to donate an item for the silent auction, please visit: http://www.sema.org/images/pdf/gala_silent_auction.pdf

More exciting auction items are being added daily. Stay tuned to your weekly eNews update to view the latest additions to the auction lineup.

Items currently entered in the Gala Auction:

Two-night stay for (2) couples at Cibolo Creek Ranch, near Big Bend National Park, Texas, donated by Cibolo Creek Ranch

Jeff Gordon-signed mini hood, donated by Joel Ayres

'32 75th Anniversary Roadster Pedal Car, donated by Warehouse 36

Framed watercolor print “Caravan Stop," donated by Dana Forrester Automotive Art

RR-56 Brute Race Ramps, donated by Brute Industries

The Shadow, Volumes 1–8, with original art, covers and illustrations, donated by Nostalgia Ventures

Skateboard hand-painted with SEMA logo donated by Peter MacGillivray

“How to Wire Your Hot Rod,” autographed and donated by author Dennis Overholser

NASCAR jacket (size XXL), donated by Dennnis Overholser

Large Giclee canvas piece by Bruce Kaier, donated by Hot Rod Heritage

Tony Stewart autographed side panel, donated by Victory Junction Gang Camp

Full-page ad in Restyling Magazine, donated by Restyling Magazine

Tour of the National Corvette Museum, Bowling Green, Kentucky donated by Carl Sheffer

Garmin Nuvi 350 Personal Travel Assistant GPS receiver, donated by Lokar Performance Products

2007 Master’s Pin Flag signed by Fuzzy Zoeller donated by Tommy Daniels

Framed photo of the 12th hole, Master’s Tournament, Augusta, Georgia, donated by Tommy Daniels

Framed photo of the 13th hole, Master’s Tournament, Augusta, Georgia, donated by Tommy Daniels

2008 SummitRacing.com NHRA Nationals VIP Package, including air, hotel, tickets and parking for two, donated by Summit Racing Equipment

Philip Stein ladies watch donated by Diane and Peter MacGillivray

Kyle Petty’s 2006 Charity Ride jacket, donated by Jeff Kelderman, Kelderman Air Ride

Three certificates for two-day Grand Prix Specialty Driving Course at Bob Bondurant’s School of Performance, donated by Ira Gabriel,  Primedia.

“Backstage” Dinner for 10 at the 2007 SEMA Show Industry Banquet

Get Your Empties First at the 2007 SEMA Show certificate (Mobile Electronics, Racing & Performance hall, Wheel & Tire hall)

VIP Parking at the 2007 SEMA Show certificate (2)

Marriott gift basket certificate, donated by Experient

$500 towards a reception in a SEMA Show booth, donated by Aramark

3-day/2-night deluxe accommodations at the Mirage Hotel, Las Vegas, donated by the Mirage Hotel

3-day/2-night deluxe accommodations at Planet Hollywood Hotel & Casino, Las Vegas, donated by Planet Hollywood

3-day/2-night one-bedroom suite at the Hilton Grand, Las Vegas Strip, donated by Hilton Grand Vacations Las Vegas

3-day/2-night MGM Grand and Signature package including bungalow suite accommodations, limo transfer between airport and hotel and two tickets to Cirque Du Soliel’s “KA,” donated by MGM Grand Hotel and Casino

3-day/2-night package at the Las Vegas Hilton, including deluxe room and dinner for two at Benihana Village, donated by the Las Vegas Hilton

3-day/2-night stay at Circus Circus, donated by Circus Circus

3-day/2-night stay at Excalibur Hotel and two tickets to "Tournament of Kings" show, donated by Excalibur

2-night VIP accommodations at the Westin Casuarina, donated by the Westin Casuarina

3-day/2-night stay at Hooter’s Casino, including deluxe room and dinner for two at Hooter’s restaurant, donated by Hooters Casino Hotel

-3-day/2 night Imperial Palace package, including free bottle of champagne, "Legends" concert tickets w/one cocktail, Emperor’s Buffet and admission to IP Auto Collection, donated by Imperial Palace

-3-day/2 night stay at Sahara Hotel and dinner for two at Paco’s Mexican restaurant, donated by Sahara Hotel & Casino

More exciting auction items are being added daily. Stay tuned to your weekly eNews update to view the latest additions to the auction lineup.

Attention SEMA manufacturer members! This Friday, July 6, is your last day to register for the Chrysler Group's July 11 measuring session in Auburn Hills, Michigan. The session will feature the newest Dodge, Chrysler and Jeep sheetmetal that enthusiasts will soon clamor to accessorize. Cameras ARE allowed at the all-day session, which is open from 7:30 a.m.–4:00 p.m., with a formal presentation beginning at 8:30 a.m.

2008 vehicles featured at the session include:
-Jeep Liberty 4x4
-Jeep Patriot (new)
-Dodge Avenger (new)
-Dodge Charger/Magnum (refreshed exterior/interior)
-Dodge 4500/5500 cab chassis (new)
-Dodge Viper V10 (new engine and hood)
-Chrysler minivan (new)
-Chrysler 300C
-Chrysler Sebring convertible

E-mail response with name(s), company name, address, phone number and e-mail address(es) to: measuringsession@sema.org.

Location:
QEK (formerly MSX)
4400 Purks Rd.
Auburn Hills, MI 48326

Date and time:
Wednesday, July 11
7:30 a.m.-4:00 p.m. (formal presentation at 8:30 a.m.)

Questions?
Bill Wolf, (909) 396-0289 x177
Sandy Conolly, (909) 396-0289 x155.

More info available from SEMA's OEM department by visiting: www.sema.org/oem.