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:

• Outside Sales Rep, Nationwide
• Western Regional Sales Manager, Story City, Iowa
• CNC/Programmer/Operator, Camanche, Iowa
• Territory Sales Manager, Wisconsin/Minnesota
• Director of Product Management, Eastern, Pennsylvania
• Casting Superintendent, Southeastern United States

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.

SEMA members now have exclusive access to the 2007 Trends and Forecasts Quarterly Update - Q1, the latest update to the popular Trends and Forecasts series of reports, as an additional benefit to being a SEMA member. This most recent edition provides an industry overview of relevant developments and trends in the automotive industry during the first three months of 2007. In this report, which can be downloaded on www.sema.org/research, you will find:

* New-vehicle sales data
* The latest consumer buying trends
* New development and vehicle releases from the OEMs
* SEMA-member business benchmark data and more.

More than half (53%) of SEMA members recently surveyed said they have utilized the Trends and Forecasts report over the past three years. This report is one of many market research reports SEMA publishes for its members on a regular basis. To access this and other reports, go to www.sema.org/research or e-mail Shirley Presecan at shirleyp@sema.org.

Source: SEMA Research & Information Center

Imagine a fullsize street diesel pickup running a quarter-mile drag race in 10 seconds while achieving speeds of around 130 mph, or pulling a 36,000-pound "sled" on a 300-foot clay dirt track in 13 seconds. Next, imagine the same guy who owns that diesel pickup driving it home and using it for everyday driving. This scenario describes a growing segment of die-hard diesel enthusiasts who are using their diesel-powered pickups for more than just everyday hauling and towing. These diesel owners are taking their everyday work trucks and installing bigger turbochargers, computer tuners and much more and competing in drag races and sled pulls, all in the name of bragging rights—showing a crowd of excited spectators that diesels are actually capable of high performance.

The Diesel Hot Rod Association (DHRA) has been putting on national drag races and sled pulls for years now. The organization first incorporated in 2003 when, according to the DHRA, several diesel drag pickups could not get race time from the NHRA. Since then they have been putting on yearly national events, and each year the number of spectators and competitors who attend these events has grown beyond the DHRA's expectation. As a result of this growth, for the first time ever, the organization brought its event out to Las Vegas this year, in addition to its Indiana and Texas national events. Each of these events are filled with thousands of spectators eagerly watching displays of raw power during the side-by-side drag race, sled pull and dyno competitions.




The images above show diesel pickups in action. These trucks are specifically tuned for drag racing and sled pulling, which often involves using more diesel fuel than necessary in order to obtain the desired horsepower. When on the street, however, these drivers say that they reset their diesels to burn cleaner without the plumes of black smoke.

Why are diesel trucks being used for racing anyhow? The DHRA notes that the large amounts of torque and horsepower attained from these trucks after just a few modifications make them ideal "weekend racers." Typical diesel competitors are young guys who use their trucks for work but have improved the power capabilities by installing custom air intakes, turbochargers, intercoolers, exhausts, handheld computer tuners and much more.



The DHRA says some of these trucks can have $25-$50,000 worth of upgrades installed in order to race in DHRA events, which includes four classes of drag racing and four classes of sled pulls. They say that although both sports have grown in popularity, the DHRA has seen larger growth of participants and spectators of the sled-pull events.

Recently, the DHRA held its national racing event in Indiana, in which 9,592 spectators attended—which they say was the largest crowd to date—as well as 296 race teams and/or individual trucks participated. A listing of all of the drag-race classes and winners of each class is shown in the table below. Although the winning pickups are older diesels, there were several newer Chevrolet, Dodge and Ford diesel pickups in the competitions.



Attendees of DHRA's national events typically range from young adults to families who bring their children along, according to the DHRA. SEMA research staff attended both the Las Vegas event in May and the Indiana event in June to learn more about the types of consumers attending these shows. Both spectators and drivers were surveyed, most of whom own diesel-powered vehicles, in order to find out how this crowd of consumers modifies their diesels, where they buy and how much they have spent over the past year on specialty equipment.

The average age of those surveyed who attended either of the Las Vegas or Indiana events was 27—showing that diesel parts manufactures could be marketing their products to a relatively young crowd of diesel enthusiasts at these events. A total of 92 attendees completed the survey. Those surveyed were primarily male (94%), and when asked whether they have modified their diesel trucks over the past year, 84% responded "yes." On average, those who purchased specialty equipment for their vehicles spent around $3,500 doing so over the past year alone!

When looking at the Las Vegas-Indiana combined results in the tables below, notice that these groups of consumers prefer to modify their diesel pickups with engine performance tuners and exhaust kits most often—probably a result of these products offering noticeable power gains at relatively inexpensive prices. Although most enthusiasts surveyed go to custom shops/installers to buy their parts, shows, such as the DHRA events, represented the second-most popular avenue for these consumers to purchase their parts. The reason: spectators become motivated to make purchases when immersed in the sport while drivers often feel the need to upgrade their diesels prior to racing.



The demand for diesel performance parts has grown over the last few years, and several specialty-equipment companies selling diesel performance parts are growing their sales by becoming involved in diesel competitions put forth by the DHRA. Advanced Flow Engineering (AFE), a manufacturer of performance air filters, was among one of the many manufactures present. Paul Hardley, director of marketing for AFE, indicated that his company has "grown in the past five years primarily because of diesel."

Along with AFE, DiabloSport, a manufacturer of performance engine tuners, has also witnessed growth in its diesel business over the past three years. As of right now, the company's diesel sales are "usually around 40% of [its] total sales," commented Max Wyman, assistant director of marketing for DiabloSport. Exhaust manufacturers are noticing the same effect on their business from the growth of the diesel market. Phil Smith, technical field representative and product specialist for Flowmaster, a manufacturer of performance mufflers and exhaust systems, made the remark that "the diesel market has really taken off, so we have really started to promote our diesel exhaust."

AFE, DiabloSport and Flowmaster were just three of the many SEMA manufacturer members present at the DHRA Indiana national event taking advantage of the growing market for diesel motorsports.

The DHRA drag racing and sled-pull events provide an opportunity for diesel pickup owners to show-off what their diesels were capable of in front of thousands of diesel enthusiasts at events where diesel performance parts manufacturers and jobbers have the opportunity to market products one-on-one with consumers. Events like these not only give manufacturers an opportunity to connect with diesel owners, but pickup owners in general as well, as shown in the parking lot photo above. Although diesel pickups once had the image of pure work trucks or toy haulers, diesel drag racing and sled-pull events are showing consumers that diesels can do much more!

For more information about the Diesel Hot Rod Association, visit www.dhraonline.com.

Source: SEMA Research & Information Center

According to Kelley Blue Book's 'Driving Performance' portion of its consumer automotive perceptions research study Brand Watch, Toyota and BMW each claimed two number-one spots for best driving performance. Toyota took the top spot in both the minivan and non-luxury SUV segments, while BMW was singled out for top honors among luxury SUVs and luxury sedans, according to its latest results.

Domestic brands sweep the truck segment when it comes to driving performance in Brand Watch, with Chevrolet, GMC and Dodge placing first, second and third, respectively. Domestic brands previously had been singled out as top picks for interior and exterior styling in the truck segment. Import brands dominate across most segments when it comes to driving performance, says Kelley Blue Book, claiming the top three spots in every vehicle segment except trucks and also, with the exception of Ford, placing third among non-luxury SUVs. Porsche claimed the top spot in the convertible/sports car segment, a category in which performance is the most desired characteristic.

Toyota, Honda, BMW and Mercedes-Benz each garnered three top-three finishes in various categories, displaying consumers' overall perception of those brands having the best driving performance. Nissan and Lexus garnered two top-three finishes each.

"BMW's top rankings in the luxury sedan and luxury SUV segments demonstrate that it has a lock on performance characteristics in the luxury category according to new-car buyers, an instance where brand image and the consumer brand perception are in perfect alignment," said Jack R. Nerad, executive editorial director and executive market analyst of Kelley Blue Book and kbb.com. "Meanwhile, pickups are the last bastion of domestic dominance and that dominance is strong with Chevrolet, GMC and Dodge sweeping the top three spots for performance with not an import in sight."



"Perceptions are a key factor and drive car buyers' decisions as to which makes and models will be on their shopping list," said Rick Wainschel vice president of marketing research and brand communications for Kelley Blue Book. "This report can show manufacturers their relative position against other makes in specific vehicle segments, which strengths to emphasize and which weaknesses may need to be addressed."

Source: Kelley Blue Book. (June 21, 2007). "Kelley Blue Book's 'Brand Watch' Study Finds Toyota, BMW Lead New-Vehicle Shoppers' Opinions on Driving Performance." Kelley Blue Book press release courtesy of PR Newswire.

According to a recent WardsAuto.com article, the Hummer H2 and Chevrolet and GMC light-duty pickups built after 2009 will come available with an all-new 4.5L V8 Duramax turbodiesel. The new powerplant will be produced at General Motors Corp.'s Tonawanda, New York, plant.
   
According to the article, the 4.5L Duramax is a means of improving the fuel efficiency of some of the automaker's biggest vehicles. The new engine is expected to emit 13% less carbon dioxide than existing gasoline engines. It will also reduce the particulates and oxides of nitrogen emissions by 90% over today's diesel powerplants. Tom Stephens, group vice-president of GM's global powertrain and quality, says that the new diesel "is expected to become a favorite among customers who require excellent towing ability and fuel efficiency." The new Duramax will meet all 2010 emissions standards in the United States and will be 50-state compliant.

The 4.5L will be a DOHC V8 with more than 310 hp and 520 lb.-ft. of torque. It will also be the first GM engine to feature selective catalytic-reduction exhaust aftertreatment and a diesel particulate filter, which will help it meet the new U.S. Tier 2 Bin 5 emissions standards. The powerplant will feature a graphite-iron block, aluminum cylinder heads with integrated manifolds, an intercooled variable-geometry turbocharger and a high-pressure common-rail fuel-injection system capable of five injection events per cycle.
   
GM officials who were on hand for test drives of the 2008 Hummer H2 and H3 Alpha declined to confirm any details on the aftertreatment technology. However, a urea-injection system will likely be needed to meet future emissions standards, according to the WardsAuto.com article. One of the most interesting features of new Duramax is its ability to be mounted in the same space as GM's small-block V8 lineup. This allows for easier adaptation for a wide variety of vehicles, as the diesel market continues to grow. Could we see this Duramax in any of GM's passenger cars?
   
Not only will the new Duramax serve to boost the fuel efficiency of vehicles such as the H2, but as WardsAuto.com points out, it will also help to improve the image of the Hummer brand, which is under constant attack by the environmentalists. The 4.5L Duramax will also be capable of running on some mix of biodiesel, according to Martin Walsh, Hummer General Manager. GM will be investing $100 million in the Tonawanda, New York, plant where the new diesel will be produced. GM will also dispense an additional $41 million for vendor tooling, containers and investment at other locations. Output of the new diesel is slated to get underway in the fourth quarter of 2009, and the project is expected to retain 150 hourly jobs at the plant.

Source: Sutton, Mike. (June 15, 2007). "Hummer H2 to Feature All-New Diesel After 2009." WardsAuto.com. Retrieved June 18, 2007 from www.wardsauto.com.

June North American output will be unimpressive but give way to a major rebound in July, according to a recent WardsAuto.com article. June will finish with an estimated production of 1,425,251 cars and trucks, falling 6.3% short of 1,521,101 units last year. That means second-quarter 2007 will wrap up with a total production of 4,162,319 vehicles, which is a decline of 2.6% from last year's 4,274,339. First-half 2007 should finish near 8,099,673 vehicles, down 5.4% from the 8,561,519 built during the second half of 2006.

But production schedules for the third quarter undoubtedly have been pumped up as the showdown between Detroit's automakers and the United Auto Workers union approaches and the potential for a labor strike looms. July traditionally is an uneventful month due to shutdowns and changeovers, but WardsAuto.com forecasts automakers will exceed last July's production by 20.3%. Volume will total 972,517 vehicles, compared with 808,735 a year ago.

General Motors Corp. will beef up its light-truck output 32.7% in July, according to the WardsAuto.com forecast, with across-the-board build increases and some extra boost from production of its latest CUVs, the GMC Acadia, Saturn Outlook and Buick Enclave. The Saturn Aura that launched last summer at lower production rates will anchor a 7.4% increase in passenger-car production. GM's total production in July is expected to reach 243,970 units, 22.4% higher than last year's 199,396.

Ford Motor Co. also is forecast to take a significant 35.2% jump in light-truck production next month, most of that a result of its new Ford Edge/Lincoln MKX CUVs and upcoming Taurus X. Ford's passenger cars will see a slight 2.6% increase, while total builds are estimated to rise 22.1% from last year's 118,401 units to 144,554.

The Chrysler Group is forecast to see similar double-digit production gains, with an 18.8% increase from last July to 153,281 vehicles. Unlike Ford and GM, though, Chrysler's stronger pace will come from the passenger-car side.

WardsAuto.com predicts Toyota Motor Mfg. North America Inc. will see an output tally of 138,196 units in July, up 37.9% from last year's 100,231. A universal upswing in both car and truck production prevails at Toyota's North American plants, but the year-on-year increase is driven by the new Tundra fullsize pickup, which accounts for 60% of the gain.

Other automakers are expected to see similar jumps in July production, collectively realizing a 20.4% gain.

Source: Elnick, Diane. (June 18, 2007). "July Production to Soar Over Year Ago." WardsAuto.com. Retrieved June 20, 2007 from www.wardsauto.com.

Small-business owners showed neither excitement nor anxiety over the state of the economy in May, according to the National Federation of Independent Business (NFIB). Their outlook, as measured by the NFIB Small Business Optimism Index, edged up four-tenths of a point from April to 97.2 (1986=100). The good news is that the NFIB says that there is no recession signal—its Index has been consistent in anticipating the approach of recessions throughout the organization's 34-year history. NFIB's data also provides specialty-equipment companies, many of which are small businesses themselves, a benchmark to compare the activity of their own business to others in the country.

Job openings fell and are expected to nudge unemployment up, but unfilled positions remain high. Job-creation plans, although strong, were flat. Reports of price hikes eased, but continue higher than desired. Capital-spending plans, such as actual outlays, were unchanged from the previous month.

On the labor front, employment gains were solid but not spectacular—about 50,000 fewer workers were hired per month in May 2007 than in May 2006. "This year's May employment gains were as expected," said NFIB Chief Economist William Dunkelberg. "The NFIB survey has anticipated solid gains all year."

Nearly one-fourth of owners, 24%, reported unfilled job openings, down two points from April, but historically strong. Twelve percent said the availability of qualified labor was their top business problem, unchanged since February.

Over the next three months, one-fourth plan to create new jobs, up one point, and 6% plan workforce reductions, up two points, yielding a seasonally adjusted net 13% of owners planning to create new jobs, historically strong and unchanged from April. Fifty-four percent reported hiring or trying to hire new workers, though 78% of those reported "few or no qualified applicants" for their positions. Job-creation plans were positive in all industry groups.

Capital spending in May was flat. Plans to make outlays in the coming months remained weak, unchanged from April's 29% of owners. Profit gains have not triggered a boom in spending. Reported capital outlays over the past six months held firm at 60%. Nearly half (45%) reported spending on new equipment, 24% acquired vehicles, 17% bought fixtures and furniture and 13% improved or expanded their facilities. Five percent acquired new buildings or land for expansion.

An unchanged and rather weak 12% said now is a good time to expand facilities. A net-negative 3% expect conditions to improve over the next six months, up five points from April and typical of readings at later stages of an expansion. A net 16% expect higher real sales, up two points, and a positive sign for growth. Overall, expectations for economic growth are soft, but better. "Growth will continue," said Dunkelberg, "but the increase in GDP will be closer to 2% than 3%."

There were signs of inventory investment. A net 2% of owners reported a gain in inventory stocks, seasonally adjusted, four points higher than April. A seasonally adjusted, net-negative 6% reported stocks too low, a three-point drop from April. Dunkelberg noted, "The build in inventories was apparently unexpected and unwelcome."

Twenty-eight percent of those surveyed reported higher sales, and 31% had lower sales, producing a seasonally adjusted net 1% of all firms with higher sales in the most recent three-month period, compared to the prior three months, down three points from April.

Of the 21% reporting higher earnings, nearly two-thirds (65%) cited stronger sales, and 5% each cited lower materials costs and higher selling prices. For the 40% reporting lower earnings, two-fifths cited weaker sales, 8% blamed higher labor costs, 10% cited higher materials costs and 5% each pointed to higher insurance costs, lower selling prices and regulatory costs.

Unadjusted, 29% reported raising average selling prices, up one point, and 12% reported lowering them, down one point. The number of firms with earnings improvements gained in May, but the number of those reporting higher worker compensation rose three points to 29%. Only 16% managed to raise average selling prices. "Labor compensation will be pressuring profit margins all year," the NFIB economist said.

"The good news is that prices appear to be leveling off," Dunkelberg said. "The net percent of those reporting higher-average selling prices, seasonally adjusted, fell but only by two points to 16%, not enough to get real inflation down to the level the Fed would like."

Source: Sharp, Melissa. (June 12, 2007). "SBET: Small Business Chugs Along: No Signs of Recession." The National Federation of Independent Businesses. Retrieved June 20, 2007 from www.nfib.com. 

Dealerships around the nation are receiving a growing number of Alternative Fuel Automobiles (AFA), claims a survey by R.L. Polk & Co. The continual rise in these vehicle configurations might signal a widespread acceptance of hybrids, diesels and other forms of energy.
   
The number of AFAs on our roads today totals 11 million, with 434,000 being sold in the first quarter of 2007—a 27% increase over last year's account for this period. E85-capable vehicles jumped 40% from 159,882 to 266,859. Hybrid vehicles also climbed during the period, bumping 31% from 51,285 to 74,056. Clean diesel technology continues to be touted as an upcoming solution to our energy demands, yet sales declined slightly from 108,100 to 93,012.


   
Dave McCurdy, president and CEO of the Alliance of Automobile Manufacturers, rationalized the shift by saying, "gas prices, consumer incentives and the increasing number of AFA models available to consumers all play a role in the rising popularity of these vehicles." The buzz of global warming, national fuel independence and celebrity endorsements have helped create awareness of AFAs. Nevertheless, the acceptance can only expand with a supported infrastructure. McCurdy adds, "however, while interest in AFAs continues to grow, we still need more gas stations to offer biofuels such as ethanol and biodiesel." 
   
The offerings of AFAs have met the increase in demand. Currently, 60 models are available with even more choices in development including hybrid-electric, clean diesel, ethanol capable, biodiesel, hydrogen and pure electric. Modern vehicles will need advanced fuel preparation and processing. The study examined consumer opinion in regard to energy and found popular opinion advocated government funding for research and development in alternative fuels. More than 170,000 fueling stations exist in the United States, yet only 1,221 offers E85. Consumers may be willing to purchase AFAs, but if they are incapable of accessing the proper fuel, they might consider other alternatives. In fact, more than 74% of American consumers are familiar with AFAs, but the deciding factor was the availability of fuels.

Source: "Record number of alternative fuel automotives rolled off dealer lots in first quarter." June 7, 2007. Aftermarket Business. www.aftermarketbusiness.com.

Google and Pacific Gas and Electric (PG&E), the utility serving Northern California, recently displayed its six Toyota Prius and Ford Escape hybrids that partly run on electricity provided by the power grid in order to achieve up to 75 mpg, according to a recent article by The New York Times. One of these vehicles was also modified to give back power to the power company while the vehicle is not in use. The conversions were led by Google's philanthropic foundation, Google.org, which plans to give away $10 million to accelerate the development of battery technology, plug-in hybrids and vehicles capable of returning stored energy to the grid.

The hybrids were given additional batteries that are capable of being recharged when plugged in, but the technology is currently not ready for commercialization because the batteries are not yet durable enough, according to the article. Google is using batteries from A123Systems of Watertown, Massachusetts, a company that sells an aftermarket kit to convert the Prius to a plug-in vehicle. The Prius that is capable of returning electricity to the power grid does so by means of wireless signal sent from PG&E while the car is parked and plugged in to determine its state of charge. It can then recharge the batteries or draw out power.

Plug-in hybrids lower emissions of carbon dioxide and smog-causing gases because they can travel three to four miles on just one kilowatt-hour of electricity. If the electricity used to power these hybrids is produced using natural gas, less than a quarter-pound of carbon dioxide is emitted each mile. In comparison, a vehicle that gets 20 miles per gallon on unleaded gas emits about a pound of carbon dioxide each mile.

The New York Times article also noted that Google's demonstration of its plug-in hybrid conversions is a great way to make the connection between young consumers and this technology—providing an image that hybrids are reliable and affordable.

Source: Barringer, Felicity. (June 19, 2007). "Google and Utility to Test Hybrids That Sell Back Power." The New York Times. Retrieved June 20, 2007 from www.nytimes.com.

Toyota recently released details of its new Valvematic variable-valve timing technology for improving the efficiency and performance of its gasoline internal-combustion engines, according to a recent WardsAuto.com article. In addition to employing elements of its existing VVT-i (Variable Valve Timing-intelligent) technology, Valvematic uses a new mechanism to control the volume of air entering the engine by precisely metering the opening/closing of the intake valves.

This development, Toyota says, improves performance by allowing the engine to operate without the use of a conventional throttle valve, or "butterfly." Benefits of the new technology include up to 10% gains in engine efficiency and power output, as well as reduced carbon-dioxide emissions and improved vehicle acceleration.

Toyota says a 2.0L four cylinder will be the first engine to feature Valvematic, with the first applications reportedly including the new Toyota Allion and Premio sedans, which go on sale in Japan this winter, slotting in between the Corolla and Camry.

Meanwhile, Honda is also working on advanced valvetrain systems and plans to release the next generation of its VTEC (Variable Valve Timing Electronic Control) technology in 2009 in an Accord-class vehicle. Honda currently is demonstrating the system on a 2.4L four cylinder, which it says is getting approximately 13% better fuel economy than its existing i-VTEC engines.

Although Toyota plans to continue refining its hybrid-electric powertrain technology, the automaker says Valvematic will add to its environmental-preservation efforts as it moves to revamp its entire IC engine and transmission lineup by 2010.

Source: Sutton, Mike. (June 20, 2007). "Toyota Introduces Throttle-Less Valve Control." WardsAuto.com. Retrieved June 20, 2007, from www.wardsauto.com.