New-vehicle buyers are increasingly demanding customized vehicle interiors that make their vehicles feel uniquely theirs, according to a recent WardsAuto.com article. The trend spans newly licensed “Echo Boomers” to well-experienced baby boomers. However, the latter is more concerned with comfort while the former want different interior colors for their personalization needs, commented Erich Merkle, IRN Inc. director of forecasting, in the WardsAuto.com article.

A panel of experts at the 2007 Ward’s Auto Interiors Show commented that one of the best opportunities for automakers and suppliers to customize vehicle interiors at a low cost is through the use of lights. Ford is already using lights to customize its Mustang for customers. Automakers are showing more concept cars at auto shows with lighting schemes that add the feel of personalization to the vehicles.

Mazda, for example, has received positive feedback from showgoers about its use of lighting in its Ryuga concept, which the company says would complement a driver’s character. Scion’s Fuse concept is another example of how lighting is used to add personalization. Lighting is used to create different gauge configurations, as well as accent the seats.

Finally, the WardsAuto.com article cites the Chevrolet Volt concept as another indicator of vehicle interior lighting becoming key to personalization. The Volt incorporates adaptable lighting and ultraviolet light-projected displays that are projected over the vehicle’s instrumentation. The reconfigurable displays relay information on the status of the intricate E-Flex system and can provide a driver with his e-mail status, traffic patterns and personal reminders.

Although vehicle concepts provide an idea of where automakers are going in the future, the article cites that the vehicle lighting concepts are not making their way into production vehicles today due to a disconnect among designers and executives. However, specialty-equipment companies could take advantage of this growing design trend and give consumers interior-lighting products to fulfill demand today.

Source: Byron Pope. (June 7, 2007). “Auto Makers Strive to Personalize Interiors.” WardsAuto.com. Retrieved June 7, 2007 from www.wardsauto.com.

Gasoline prices continuing to hover well over $3 per gallon helped to entice more U.S. drivers to buy more cars than light trucks last month. In fact, May 2002 marked the last time cars outsold light trucks. Of the 1,555,374 new light vehicles sold in May, 778,651 were cars and 776,723 were light trucks.

Small cars continue to dominate the car segment in terms of sales growth—11.7% growth compared to May 2005—while growth of CUVs continues to outpace all other light-truck segments with its 28.2% growth. Automakers are heavily promoting CUVs, and consumers are becoming more aware of the gas-saving benefits of driving smaller crossovers.

Despite gasoline prices being 8% higher this past May compared to the same month last year, consumers purchased more trucks last month compared to the previous year. The redesign of the Chevrolet Silverado helped it take the top spot away from the Ford F-Series by growing 15.3% from last year’s sales. Rebates and a total redesign helped boost Toyota Tundra sales 122.3% this May compared to last year.

On the car side, the Honda Civic, Chevrolet Impala and Toyota Prius experienced the highest sales growth. Toyota increased Prius output this year to meet the growing demand of this gas-saving hybrid, which grew 196.3% in sales compared to last May.

A host of factors have contributed to the shift to more cars being sold. Gasoline prices, along with overall inflation, have led more consumers to buy lesser expensive vehicles that have better fuel economy compared to larger cars and SUVs. However, shifts in vehicle-buying behavior may not be permanent, as shown by the growth in sales of trucks last month. The tables below show sales for each of the vehicle segments, along with the top 10 selling cars and light trucks in May.

Source: SEMA Research & Information Center

Gas prices are averaging $3.20 across the United States, and the cost for a gallon of gasoline is likely to remain high. Lynn Westfall, chief economist for Tesoro, recently told BusinessWeek that consumers have already spent $20 billion more on gasoline this year than last—a considerable dent in their disposable incomes.

Tesoro is a major gasoline distributor, owning a half-dozen refineries and 278 Shell gas stations. Oil prices and refinery capacities continue to push gasoline prices up. Westfall says the jump of crude oil from $30 to $70 a barrel has caused spikes in fuel costs since 60%–70% of gasoline costs is the cost of crude oil.

Tesoro said that some of its refineries were down this spring while gasoline demand continues to grow at a rate of 2.5 refineries every couple of years. Westfall told BusinessWeek that they simply cannot build additional refineries because it costs $32 billion to build one in the United States. In the meantime, he says that growing demand for gasoline will continue to drive the price of gasoline higher, and he does not expect the problem to be resolved any time soon.

Source: BusinessWeek (June 4, 2007). “Why Gas Prices Will Stay High.” Retrieved June 8, 2007 from www.businessweek.com.

A recent study by the Propane Education & Research Council (PERC) found that if a select 10% of the U.S. commercial fleet vehicle population switched to propane, the country could displace nearly 1 billion gallons of gasoline annually by 2017.

The study was commissioned by PERC to help policymakers and commercial fleet managers understand the role that existing alternative fuel sources, such as propane, can play in helping the nation achieve energy independence while reducing emissions. The study examined the 86-million trucks on the roads in the United States and determined that if fleet owners switched 4.5 million of the vehicles to propane, more than 830-million gallons of gasoline could be displaced by 2017.

Conducted by Energy and Environmental Analysis, Inc. (an ICF International Company) of Arlington, Virginia, the study focused on commercial fleets consisting of six or more vehicles that operate within a 100-mile radius.

“To succeed, any plan to reduce gasoline consumption at the levels Congress and the administration are proposing must include both renewable and alternative fuels, as well as efficiency measures,” said Roy Willis, president and CEO of PERC. “One proven alternative fuel option that is both domestic and available today is propane.”

Readily available propane gas and propane-powered vehicles are a cost-effective and environmentally friendly fuel with a proven record of success with more than 10-million vehicles operating worldwide.

Compared to gasoline, propane produces fewer greenhouse gas emissions and cuts emissions of toxins and carcinogens by up to 96%. Operating costs are up to 30% lower than conventional or reformulated gasoline. Propane infrastructure costs are minimal compared to other alternative fuels, with fuel dispensers placed directly onsite at a fleet location.

Most importantly, there are new commercially available vehicles that run on propane. They do not require any additional conversion costs, and they are fully warranted by their respective manufacturer. In the past year, the propane industry has worked with its partners to introduce three new vehicles for fleet applications: the Roush F-150 truck, the propane-powered Vision school bus from Blue Bird Corporation and a GM 8.1L engine.

Introduced in April 2007, the Roush F-150 is the first dedicated propane-powered truck using an advanced liquid propane injection (LPI) system. The Roush F-150 LPI is designed and manufactured to operate solely on propane while providing the same horsepower, torque and drivability of an F-150 equipped with a gasoline-powered 5.4L, three-valve Triton V8 engine.

The propane-powered Vision school bus is the latest offering from Blue Bird Corporation to help school districts meet the challenges of the 2007 Environmental Protection Agency (EPA) school-bus engine-emissions requirements. The bus can be used to displace the diesel consumed by more than 617,000 school buses in the United States.

A dedicated propane GM 8.1L platform is also available for medium-duty private commercial fleets, which according to the study, equals more than 2-million trucks. The GM platform can be used for a variety of fleet applications including airport shuttles, municipal transit and package delivery.

“Success in alternative fuel markets requires a keen focus on niche applications where the fuel makes sense,” added Roy Willis. “These new propane-powered vehicles give fleet operators an option that reduces emissions, operating costs and our dependency on foreign oil.”

In his January State of the Union address, President Bush challenged Americans to reduce gasoline consumption by 20% over 10 years. That 20% equates to nearly 35-billion gallons of gasoline. Since then, congressional leaders have introduced similar plans in the House and Senate.

To find out more about clean, abundant, domestic propane and propane-powered fleet vehicles, or to compare the cost of propane-powered vehicles to traditional gasoline or diesel vehicles, visit http://www.propanefreedom.com/.

Source: Propane Education & Research Council. (June 7, 2007). “Increased Fleet Use of Propane Can Reduce U.S. Gasoline Consumption by Nearly 1 Billion Gallons, New Study Says.” Propane Education & Research Council press release courtesy of PR Newswire.

Automakers are increasing their use of “environmental-friendly” materials in vehicle interiors, according to a recent WardsAuto.com article. The article notes that one of the hottest “eco-friendly” interior materials is soybeans, which in the form of soybean oil can be used in place of petroleum polyols to create foam for headrests, armrests and seat cushions.

On average, 30–40 pounds of petroleum-based foam is used in every vehicle interior, says Ash Galbreath, director of foam and comfort engineering for Lear Corp. The company says that they have developed what they call “SoyFoam” which will be used in a 2008 vehicle model.

Basalt, essentially volcanic rock, is another green material gaining stream. Azdel Inc., a joint venture of GE Plastics and PPG, makes a product it calls VolcaLite, which is used in the headliner of the current-generation Acura MDX cross/utility vehicle.

Basalt mineral fibers are combined with polypropylene resins to create this substrate, which Frederick S. Deans, market leader for Azdel’s glass mat thermoplastics business says is attractive to Japanese OEMs because of end-of-life regulations in Japan, which require vehicles to be recycled. Although the supply of basalt is limited—about 5,000 tons of it is currently available globally—its use is desirable among automakers that wish to substitute fiberglass used in headliners.

Recycled yarn is used by Ford in the seats of its 2008 Escape Hybrid, while Mercedes-Benz has been using animal wool and hair as sound-absorbing materials for years. As automakers begin pushing the use of environmentally friendly materials in their vehicles, there may be opportunities for specialty-equipment companies to promote “environment-friendliness” in their products as well.

Source: Christie Schweinsberg. (June 6, 2007). “Regulations, Awareness Causing Interest in Green Interiors.” WardsAuto.com. Retrieved 6/7/2007 from www.wardsauto.com.

MAXAIR, ATMI Inc. has developed a new tire-pressure monitoring system for light vehicles, called MAXAIR, which automatically inflates under-inflated tires on equipped vehicles while in transit. The company says that its new technology could help reduce the 30,000 accidents and 660 deaths that are blamed on under-inflated tires every year in the United States, as well as help save drivers a potential $5 billion in gas and reduce CO2 emissions by 250 pounds per car annually by improving gas mileage 3.3%. The images below, along with additional information about MAXAIR, can be found on the company’s website: www.maxairatmi.com.

 
“This feature is ready and available and could be on all new automobiles,” says Clyde Stech, president of MAXAIR, ATMI Inc. “It’s a matter of consumers demanding it and auto manufacturers making it available.”

The company says that ATMI product concept and patents are available for the automobile manufacturers to have on all-new vehicles, and they could also be made available for the aftermarket. While the company holds the patent on the technology, they are currently looking for an automotive supplier to build and make the product available on new vehicles.

MAXAIR not only detects when tires on cars, light trucks and SUVs are under-inflated, but it also automatically fills tires to the right pressure using air from an onboard compressor. But so far, auto manufacturers seem to be in the slow lane when it comes to offering this system on cars, SUVs and light trucks, MAXAIR notes.

Additionally, similar systems have been in existence in the heavy-duty trucking industry for over a decade. That industry has been experiencing the benefits of ATMI systems for years, and now it’s the automobile industry’s time. Monitoring systems currently on the market could be off by 20%–30%, MAXAIR says, and they only activate dashboard-warning lights to alert drivers that a tire needs air. Drivers then need to find air to fill the tires. With MAXAIR, it’s all done automatically and is accurate within 1%–2%.

MAXAIR says an automobile parts manufacturer could supply the device to automakers for about $200 a vehicle.

Source: MAXAIR, ATMI Inc. (June 7, 2007). “Auto Safety System Saves Lives, Fuel, & Greenhouse Gases.” MAXAIR, ATMI Inc. press release courtesy of PR Newswire.
 

The Initial Quality Study (IQS) released by J.D Power and Associates each year measures vehicle quality at 90 days of ownership. Problems experienced by vehicle owners are separated into two categories: quality of design and quality of production (defects and malfunctions).

“Over the past 20 years, the automotive industry has improved in quality at a rate of 6% per year on average—a 20-year improvement rate of more than 120%,” the report states, adding that every seven to eight years, problem counts have been reduced by 50%.

Since J.D. Power ratings are based on consumer feedback, quality ratings reflect personal experience of consumers, which other new-vehicle buyers take into consideration when buying their next vehicle. Nearly one in four new-vehicle buyers have said that personal experience and advice from others who have owned the considered vehicles influences buying decisions.

In fact, recent AutoPacific new-vehicle buyer data shows that vehicle quality, dependability and reliability were the most important characteristics that swayed new-vehicle purchases. With this in mind, vehicle ratings, such as those released by J.D. Power, could indicate what consumers will drive in the future.
 
This year, Ford Motor Company received five top-model segment awards, more than any other automaker. In fact, 14 Ford Motor Company models placed in the top three of their respective segments. Ford’s Lincoln nameplate received two segment awards and improved from a ranking of 12th in 2006 to 3rd this year.

According to J.D. Power, “vehicle redesigns and product launches create quality challenges for manufacturers as they continue to develop and introduce new and advanced automotive technologies. On average, a vehicle redesign increases problem counts by 10 problems per 100 (PP100) vehicles.” This year’s study is based on responses from more than 97,000 purchasers and lessees of new 2007 model-year cars and trucks.
 
The following are some of the highlights of the 2007 IQS:

• Mercedes-Benz captured three segment awards. The E-Class, SL-Class and S-Class received honors. The S-Class tied with the Audi A8 for having the fewest quality problems in the industry, with 72 problems per 100 vehicles—an improvement of 63 PP100 for the S-Class. Mercedes-Benz improved its nameplate rank by 20 positions, the greatest increase for any nameplate in the study.
• Toyota also received awards for three segments with the 4Runner, Sequoia and Tacoma.
• Porsche tops the overall nameplate rankings for the second year in a row with 91 PP100.
• Honda has the fewest problems per 100 among non-premium brands and improved in the rankings from 6th to 4th. The automaker earned awards for the Civic and CR-V.
• Kia improved from 24th to 12th in the rankings, earning an award for the Rio/Rio5.
• Other nameplates recognized for quality were the Chevrolet Express and Silverado Classic HD; Lexus RX350/RX400h; Pontiac Grand Prix; and Porsche Boxster.
• The most improved nameplates are Land Rover, Saab and Mercedes-Benz.

Awards were also given for assembly plant quality. The study reveals that for the first time since 1999, a North American assembly plant, Ford’s Wixom assembly plant in Michigan, received the Platinum Plant Quality Award for producing vehicles yielding the fewest defects. The following are highlights for the Assembly Plant Awards:

Image Courtesy J.D. Power and Associates 2007 Initial Quality Study

Source: “J.D. Power and Associates Reports: Ford Motor Company Captures Most Awards in 2007 Initial Quality Study,” J.D. Power and Associates. Retrieved June 7, 2007 from www.jdpower.com.

As summer approaches, consumers are buying vehicles that reflect their outdoor-loving lifestyles, and the purchase of convertible SUVs is growing in popularity among many of these drivers. SEMA-member Newport Convertible Engineering, a Placentia, California-based custom shop, has been taking the tops off of new FJ Cruisers and Hummer H3s for its customers for some time now, which the company says is a growing trend.

They make convertibles out of luxury and non-luxury and SUVs for one reason: “There is a tremendous growing demand for SUV convertibles much like when we introduced our sedan convertible at the time,” comments Matthew Kahnamelli of Newport Convertible Engineering.

Some of the sedans for which the company transforms into convertible include the Dodge Charger, Chrysler 300 and Cadillac CTS. But Kahnamelli notes that although his company has been making convertibles out of Ford Expedition and Range Rovers SUVs over the past few years, since the introduction of the FJ and H3, “the convertible market for these vehicles has gone through the roof,” he says. The company proudly displayed one of its FJ Cruiser convertibles at the 2006 SEMA Show, as shown in the picture below.

The H3 shown above also shows how Newport Convertible Engineering is making its customers the unique custom SUVs they want in order to differentiate themselves from others on the road. Kahnamelli indicates that typical customers for convertible SUVs are affluent individuals, from doctors to businesswomen, who want the functionality of an SUV with the fun of a convertible.

The convertible tops on these SUVs are hydraulically actuated with the latch closed by hand at the windshield header. Structural rigidity is maintained with some enhancements that increase the stiffness of the SUVs. Because Newport Convertible Engineering incorporates welded-in reinforcement around the window frames and behind the back seats, as well as roll hoops welded into all the right places, every vehicle sold comes with its original warranty intact, as well as an additional three-year warranty on the convertible top.

The dealer cost for a conversion is about $10,000 for the FJ Cruiser and $19,000 for the Hummer H3, and the company says that consumers are continuing to pay this in order to get a topless SUV that is unlike most others on the road.

Source: SEMA Research & Information Center

Filler for eNews

The road to success at the 2007 SEMA Show can be a rocky one, but you can make it a smooth trip with 10 essential steps. Tradeshow expert Chuck Schwartz shares the fundamentals of budgeting, developing a game plan and creating a winning team for the Show, Thursday, June 7, 2007 at 10 a.m. (PST). Learn the most important steps to creating an effective and efficient tradeshow exhibit, produce more foot traffic and generate more leads.

His 60-minute "10 Steps to Your SEMA Show Plan That Will Guarantee ROI and Success" webinar will not only provide you with an inside edge, but also guarantee your return on investment and overall success.

Tune in for expert tips on:

• Effective exhibit design and production
• Saving $$$ on Show services
• Avoiding common problems, such as lost/damaged freight, illness or injuries, intellectual property rights and other onsite conflicts

Employees of SEMA-member companies and SEMA Show exhibitors can participate for free from anywhere with Internet access.

How to Participate

During the webinar on Thursday, June 7, you will be able to interact and ask questions through the computer or over the phone. Simply follow these steps on Thursday, June 7, at 10 a.m. (Pacific Time).

• Download the PowerPoint presentation as a PDF file by clicking here.
• View the presentation during the webinar by clicking here the day of the webinar.
• Connect to the audio portion of the webinar by calling toll-free 866/637-2754, pin 1542.