BMW has recently announced that it will begin production of the long-awaited 3-Series CUV, according to a recent AutoWeek.com article.  It is expected to be labeled as the F3 when it hits dealerships sometime in 2010, BMW says, and will likely target Honda CR-V and Toyota RAV4 buyers. 



The F3 crossover will sit on a modified version of the existing 3-series platform and share various BMW X3 components, such as the new FlexRay system that will provide the network for the CUV's driver-aid and safety features. BMW says that its new crossover will come optional with its xDrive four-wheel-drive system along with top-end versions being powered by a 3.0L, 300-hp, twin-turbocharged V6 engine.

The automaker says that its decision to give the F3 the green light came from recognizing that CUV sales have been growing in both European and U.S. markets. Autoweek quotes a BMW insider as saying that the company has "looked carefully at prevailing market trends, and there appears to be a clear shift away from old-style [multi] purpose vehicles. By combining the high seating position of a SUV with the space afforded by a traditional stationwagon, crossovers appear to be providing a clear alternative to buyers."

Source: Greg Kable. (May 21, 2007). "F3 Gets a Go: BMW Greenlights 3-Series-based Crossover." AutoWeek.com. Retrieved May 31, 2007 from www.autoweek.com.

Outsourcing is the process of having certain services that could be, or have been, provided internally performed on a continuing basis by companies or individuals outside your organization. It's long been common in manufacturing for companies to depend on external suppliers to provide them with components made to their specifications. Most business decisions favoring outsourcing are made for economic reasons, according to a recent article from the National Federation of Independent Businesses (NFIB). It notes that if a product or service can be obtained externally for less cost than providing it internally, outsourcing may be a preferred alternative as long as the external source meets the company's quality requirements.

Sometimes the economic decisions favoring outsourcing are driven by volume restrictions. Consider, for example, a service requiring specialized expertise but potentially consuming only a few hours per week. There may be nowhere near enough volume to justify recruiting specially qualified staff, so outsourcing may be the more practical-and ultimately less costly-alternative. Numerous potential outsourcing decisions may hinge upon the presence or absence of particular skills or capabilities in the manner just described. To cite another frequently encountered example, many organizations outsource the administration of their workers' compensation programs because the complexity of the system is most effectively addressed by individuals who specialize in workers' comp issues.

The pluses of outsourcing include:

• Outsourcing is used to tap the knowledge and resources of specialists. It can conserve the time of regular employees so they can focus on needs more relevant to the company's purposes; that is, it redirects resources to more productive and strategically more important work.
• Outsourcing can sometimes reduce administrative costs.
• Outsourcing can be instrumental in preserving confidentiality. For example, the administration of an employee assistance program (EAP) is usually outsourced so that no company employees are privy to personal information about other employees.
• It can compensate for overload or help eliminate backlogs.
• Outsourcing can, at times, facilitate budget reductions.

Any number of people may offer multiple reasons why outsourcing's use in facilitating budget reductions is anything but a plus. In most companies, the majority of employees equate outsourcing with budget cuts and thus with staff reductions. That is, outsourcing's greatest minus is that it's perceived by many as primarily intended to reduce labor costs and thus eliminate employees.

It's no secret to anyone working in American business today that many jobs have been lost as a result of shifting activity to largely foreign areas where labor costs are lower than in this country. Under increasing competitive pressure, companies quickly learned that they could save money by going to outside suppliers for everything from raw materials to finished products to customer service. Indeed, entire industries have essentially outsourced themselves. Consider, for example, textiles: At one time, the New England states comprised a center of textile manufacturing, but as competition intensified and costs continued to rise, many of the textile manufacturers fled to the Southern states from where they later jumped again, mostly to foreign countries.

There are many instances in which outsourcing is undeniably good for business while, at the same time, damaging to employee relations. Thus, the decision to outsource could mean reduced cost and increased efficiency at the price of layoffs and employee unrest. Surely there are times when it is wiser to forego modest improvement rather than alienate the workforce. It is just as likely, however, given the economics of business today, that extensive outsourcing may be needed to ensure survival.

As the decision to outsource shouldn't be taken lightly, so too should the selection of an outsource supplier be approached very seriously. In selecting a vendor, you should consider:

• The potential vendor's experience and reputation. If possible, check with some of the vendor's other clients.
• Whether the vendor is equipped to provide computer systems and technology needed to ensure efficient access to all applicable data and reports.
• Whether the vendor has invested in the necessary internal resources needed to support any employee who might be assigned on-site.
• The extent to which the vendor takes responsibility for ongoing training of its staff.
• Whether the vendor has sufficient understanding of your company's organization and culture.

It's probably not possible to explain away all employees' fears and misgivings about outsourcing. Nevertheless, the NFIB notes that thorough and conscientious communication of the necessity for outsourcing can go a long way toward ensuring employee acceptance of the practice.

Source: McConnell, Charles, R. (May 4, 2007). "The Pluses and Minuses of Outsourcing." The National Federation of Independent Businesses. Retrieved May 31, 2007.

What does is take to be successful in business? According to Larry Mersereau-small business consultant, speaker and author in the field of marketing and promotion-a look at successful people tells you that the ability to spot opportunity in these rapidly changing times is one major key. And it's not enough to just see opportunity, he says. It's not even enough to see it and act on it. It's at least equally important to be able to assess whether the opportunity you're looking at is right for you...before you act on it.

You must first have the capabilities necessary to pursue the opportunity. If you don't have the knowledge, facilities, equipment, personnel or capital necessary to go after an opportunity, you have to be smart enough to pass.

The most successful people are really good at spotting opportunity. But they're also really good at recognizing whether they're equipped to pursue them or not.

You also have to look at whether an opportunity fits into your "big picture." What are you trying to accomplish in the long term? You must have a specific kind of customer in mind, and you must have some purpose in serving them.

For example, Larry Mersereau helps business owners and sales professionals bring in more business, and he helps companies bring in more business by getting more from their resellers (business owners and sales professionals). He says that if an opportunity comes along that will help him do that more effectively, and he has the resources he needs to pursue the opportunity, he will be "all over it." If the opportunity pulls him in some other direction...away from his business mission or if he doesn't have everything he needs to do it right, he says that he will pass on it.

Do you have a "big picture?" If you don't, you need to step back and take a look at your business.

And don't forget the "big picture" of where your business or job fits with the rest of your life. Mersereau says that he won't pursue things that might conflict with his personal life, sense of ethics, relationships,  health or religious beliefs.

If your business decisions do not align with your life, you're not going to be very happy. Making money is a good thing. But it's not worth sacrificing what's really important to get it, Mersereau notes.

Source: Larry Mersereau (May 29, 2007). "What Does it Take? Bringing In More Business..."(electronic newsletter).

Frank Homann, Siemens VDO vice president of cockpit modules, "declared the in-vehicle CD player a dead man walking, doomed by a rising tide of portable digital music players, high-tech cell phones and packaging issues" during the SAE International World Congress. According to Ward's Auto, Homann stated that Siemens is working on systems for 2012, which include CD players, but that by 2015 they won't be around.
   
The future of the CD has been affected by the invention of technologies such as the iPod and iPhone. Homann says that "You will see [in-vehicle] cradles in the future; iPhone cradles. And then some of the technology will migrate into the [vehicle]." However, not everyone involved with in-vehicle entertainment agrees. T.C. Wingrove, senior manager of North American Innovation for Visteon Corp. is one of those people. "I don't think the CD player will be gone by 2015 at all" he told Ward's Auto. 
   
Skeptics believe that "stubborn consumers," including "late adopters" and "semi-computer-literate baby boomers" will keep the CD alive for a long time. The CD may eventually disappear like the 8 track, but not by 2015. The Chrysler Group is leading the movement away from the conventional audio-system layout with its MyGig navigation system that uses a computer hard drive to store navigational data instead of an optical disk. MyGig can also store about 100 hours of music, photos and other information. Even with the MyGig, Mike Kane, director for feature innovation and advanced technology strategy for Chrysler, does not see the demise of the CD happening anytime soon. In fact, he believes that "the optical disk is probably around for another 30 years or so."
   
Newer types of optical disks are expected to be able to store hundreds of songs as compressed audio files.  Furthermore, "digital-rights management issues and the growing popularity of high-definition formats mean DVDs will likely remain the preferred method for viewing movies in vehicles in the foreseeable future, further preserving the optical disk's turf" says Kane.
   
On the other side of the table, Homann is attempting to make a compelling argument for automakers to eliminate CD players altogether. He claims that the elimination of the CD will "save auto makers $20-$40 per vehicle and will free up real estate within the car." The center stack of the dashboard where most CD players are located, is a great place for navigation systems. According to Ward's data, 19.6% of all 2006 cars built in North America for the United States market had MP3 capability, more than eight times greater than in the 2004 model year. During that same period, "the proliferation of CD players slipped to 95.2% from 99.1%." And only 11.7% of cars featured cassette- tape players in 2006, down from 29.6% in 2004. However, 0.8% of U.S. consumers purchased full-length cassette tapes in 2006, and suppliers shipped more than 700,000 cassette-playing automotive head units to customers last year. Nearly 86% of sound recordings still are purchased on full-length CDs, down only 5% from the 2002 peak of 90.5%. Only 6.7% of recordings were purchased as digital downloads in 2006. Data suggests that consumers load music onto their MP3 players from CDs, and the CDs are still played at home and in their cars.
   
The data suggests that the CD will be around for a while. However, it is important to start thinking about the future as technologies begin to be replaced by the latest and greatest. If automakers were to stop including CD players in vehicles, this would be a great opportunity for aftermarket sales of CD players to grow. On the other hand, specialty-equipment manufacturers will need to continue to work with the automakers to develop interfaces that will work with all kinds of entertainment systems, from CD players to navigation systems.

Source: Drew Winter. (May 29, 2007). "Are CD Players Headed for Mass Extinction?" WardsAuto.com. Retrieved May 31, 2007 from www.wardsauto.com.

In the wake of other successful B-segment icons, such as the Scion xB, Honda Fit and Toyota Yaris, Nissan has signaled its plans of transplanting another diminutive Japanese vehicle to the U.S. market—the Cube.
   
Rumors have been circling for months regarding a stateside version of "the other econobox." Larry Dominique, Nissan North American's vice president of product planning, recently confirmed that a new model has been slated. While the current version will not make it to the U.S. market, the 2008-scheduled redesign should bring the Cube here by 2009. Sales for Nissan's larger passenger vehicles have been slow as of late, but the smaller Versa has been a huge success. Through April, 21,208 units have been sold this year, placing it directly behind the class-leading Toyota Yaris. Official images of the next-generation Cube have not been released, but Shiro Nakamura, Nissan's senior vice president and design director, claims the U.S.-market Cube "will look exactly the same as the Japanese model, otherwise there's no meaning." Minor tweaks are expected, but the overall shape should not change significantly. The boxy design worked for the original xB and Honda Element and Nissan believes the same recipe will work for the Cube.
   
Dominique openly shares the company's plan to market the Cube as a "gender-neutral" alternative to the Scion xB, which he states has adopted a "little young, macho-dude car" image. Female buyers should receive a fair amount of marketing when the new iteration arrives, and Nissan hopes to ignite a consumer base like it has in Japan. These types of vehicles are commonly customized by female enthusiasts for their "cute factor."
   
The specialty-equipment industry could take this as another sign of future trends, as it's yet another small car that young buyers can outfit with custom parts. The current Cube has been on the market since 2002 and has already started a buzz on Internet forums in the United States. When the next generation hits U.S. streets, it should not take long for enthusiasts to start personalizing them. Most of the discussions refer to the growing adoption of VIP-style modifications. In short, that means making them luxurious, comfortable and stylish. Here are a few examples of what is presently on the market and the direction consumers might want to take with their Cubes.

Kenstyle (SEMA member)



Impul



Wald



Gialla




Source: Christie Schweinsberg. (May 25, 2007). "Nissan Cube Won't Target Scion xB, Exec Says." WardsAuto.com. Retrieved May 31, 2007 from www.wardsauto.com.

California SEMA members  converged on the state capitol in Sacramento to help educate state lawmakers on the importance of the $36.7 billion automotive specialty-equipment industry to the state economy and the impact of government initiatives on the industry's continued viability. The association's first-ever state legislative rally on May 23rd featured SEMA members and California state lawmakers meeting face-to-face on significant state issues, including the governor's proposed universal health-care plan, emissions standards, vehicle scrappage, titling and registration and off-road land access.

"SEMA has been engaged over the years with the California Legislature on a series of industry-specific issues and a range of business concerns impacting the health of the state's specialty-equipment industry," said Steve McDonald, SEMA's vice president of government affairs.  "Our successes in Sacramento would not have been possible without the relationships we have developed with California legislators over the years. By including California SEMA members in these efforts, the Sacramento Legislative Rally helped further increase awareness of our industry by state legislators and signal SEMA's intention to increase its contribution to the debate on significant state issues."    

The SEMA Sacramento Legislative Rally agenda included a breakfast briefing by SEMA government affairs personnel, meetings with lawmakers, regulators and the governor's key staff, in addition to an evening reception. SEMA members were briefed on critical issues by, among others, Governor Schwarzenegger's Deputy Chief of Staff Cynthia Bryant, State Small Business Advocate Marty Keller, Assembly Transportation Committee Chairman Pedro Nava, Assembly Minority Floor Leader Mike Villines, Labor Commissioner Bob Jones and Occupational Safety and Health Standards Board Officer Keith Umemoto.

During the Rally, State Senators Ron Calderon and Dick Ackerman and State Assembly Members Martin Garrick and Nicole Parra joined the State Automotive Enthusiast Leadership Caucus. Supported by the SEMA Government Affairs office, the caucus is a bipartisan group of state lawmakers whose common thread is a love and appreciation for automobiles. Working in state capitals around the country, caucus members have sought to preserve and protect the automotive hobby by seeking the amendment of existing motor-vehicle statutes and creating new programs to safeguard and expand the hobby. These legislators join Senators Dennis Hollingsworth, Tom McClintock, Gloria Negrete McLeod and Assembly Members Mike Duvall, Bonnie Garcia, Bob Huff, Kevin Jeffries, Doug La Malfa, Alberto Torrico and Michael Villines as California members of the caucus. For a full caucus listing in all 50 states, please click here.

SEMA Member Comments:

Joel Ayres, Leer:  "Fantastic job by the SEMA staff. I feel it was a good start to building relationships with the California legislators. The speakers were interesting and informative. By Wednesday night, many additional people in the Sacramento Capitol knew about SEMA and what our industry was doing for California. I feel the next event in Sacramento will be even bigger."

Ken Yoder, RCD Suspension:  "This was a great experience. I was able to talk to the assembly member and senator for the area that my facility is located in. We discussed several issues including worker compensation costs, the health-care plan that the governor has proposed and land-use issues. I was very impressed with the quality and enthusiasm of the lawmakers and regulators that spoke to us at the briefings. Every SEMA member should be involved in this type of an event."

Doug Evans, Primedia:  "I would like to congratulate the SEMA staff on a job well done with the Sacramento Rally. I found the meetings and presentations informative and extremely important. I would urge my fellow SEMA members to get involved in this event in the future as well as the Washington, D.C. rally. California in particular is looking at many pieces of legislation that could be disastrous to our industry. We must be united in our efforts to ensure that any legislation passed recognizes the importance of our livelihood and the thousands of jobs that could be adversely affected by poorly crafted bills that do not have our input."

Debbie Lewis, "Hotrod & Restoration":  "The Sacramento Legislative Rally was a great experience. It was well-planned and well-executed by our Washington, D.C., SEMA office. SEMA provided materials prior to the rally, making it easier for participants to be prepared and, in my case have a clearer understanding of our purpose and mission, and how the process works. I met with Senator Dick Ackerman and we signed him up to be part of the State Automotive Enthusiast Leadership Caucus. It was very encouraging to learn firsthand that all we had to do was ask. I look forward to participating in future rallies and carrying the flag to encourage others to do the same."

Ernie Silvers, Egge Machine Co. Inc.:  "All I can say is WOW! The Sacramento Rally had all the power and magic of its big brother, SEMA's DC Rally. Much like a well-organized surgical strike team, SEMA staff was flawless in its ability to arrange and attend multiple meetings with SEMA members and their respective lawmakers. My local assemblyman and senator were both eager to learn more about issues that concern my company, the restoration industry and SEMA. It was productive and time very well spent!"

SEMA is proud to announce Hot Wheels® as a title sponsor for the SEMA Installation Banquet & Gala Fundraiser supported by DUB Magazine and presented by Advanstar.

The SEMA Installation Banquet & Gala Fundraiser is where outgoing Board members are recognized for their service, newly elected Board members are introduced and the newest selections for the SEMA Hall of Fame are announced.
              
Beginning this year, the event was combined with charitable fundraising activities, and proceeds from the gala will be contributed to two very worthy causes—Childhelp and the Petty Victory Junction Gang Camp. Hot Wheels is donating $25,000 worth of toys for children at both organizations as part of this fundraising effort.

“Hot Wheels has been involved with SEMA for a number of years, and as we approach our 40th Anniversary in 2008, we’re thrilled to help them in their effort to support two great causes,” said Geoff Walker, Vice President of Wheels Marketing, Mattel Brands.  “For 40 years, our cars have always showcased the most extreme examples of vehicle design and customization, and this partnership with SEMA proved to be a perfect fit for us.”

One of the fundraising activities held in conjunction with the annual banquet is the silent auction. The silent auction features a multitude of one-of-a-kind collectibles and memorabilia. Items that have already been graciously donated include a two-night stay for two couples at the Cibolo Creek Ranch in Texas, as well as passes to the Barrett-Jackson Auction.
              
To donate an item for the silent auction, use the PDF donation form located here.

Click here for more information on the Installation Banquet & Gala Fundraiser.

American drivers continue to embrace the notion of customization and personalization, having purchased a record $36.72 billion worth of specialty automotive products in 2006. The number represents a 7% increase over 2005, when sales reached $34.28 billion.

"Today's consumer wants something unique and different," said Jim Spoonhower, vice president of market research for SEMA. "They're buying vehicles that are dependable and reliable, but then they're personalizing those vehicles so that they look distinctive, perform differently, are more comfortable, convenient, safe or just more fun."

SEMA has been actively monitoring the specialty automotive market since 1986. The association reports that the automotive specialty-equipment industry has seen sales grow an average of 7.4% per year during the last 10 years. Meanwhile, the growth of the total automotive aftermarket (which includes repair parts) and the U.S. economy has been much slower (4.4% and 3.2%, respectively).

"What's really exciting is that we're seeing more and more mainstream consumers discovering the benefits of vehicle personalization," said Spoonhower. A 2007 survey found that 25% of American drivers plan to purchase automotive specialty-equipment industry products in the next 90 days.

SEMA also notes that automakers are recognizing the importance of customization. In fact, many automakers collaborate with SEMA on programs that allow members to develop products better, faster and more efficiently than ever before. This trend is resulting in more products and giving consumers greater options.

"The automotive specialty-equipment industry is made up of innovators," Spoonhower continued. "Because many enter the industry as enthusiasts who know and love the hobby, they have a deep understanding of what the end-users will want and need. "As a result, products are resonating with consumers more than ever before."

Industry manufacturers continue to develop an impressive number of new products year after year. The SEMA Show, referred to as the premier automotive accessories trade show in the world, consistently debuts more than 1,000 new products each year. Open exclusively to industry professionals, the annual event will be held October 30–November 2, 2007, in Las Vegas. Details about the Show are available at www.semashow.com.

Comprehensive details on the size of the automotive specialty-equipment market and other industry trends can be found in the June 2007 issue of SEMA News.

Automotive Specialty-Equipment Growth Trend

Year    Retail Sales    Year-Over-Year Change    GDP Change
1996    $17.65 billion                6.0%                      3.7%
1997    $19.33 billion                8.4%                      4.5%
1998    $21.20 billion                9.1%                      4.2%
1999    $23.24 billion                9.4%                      4.5%
2000    $24.86 billion                7.0%                      3.7%
2001    $25.90 billion                3.8%                      0.8%
2002    $26.84 billion                3.1%                      1.6%
2003    $28.91 billion                7.7%                      2.5%
2004    $31.45 billion                8.8%                      3.9%
2005    $34.28 billion                9.2%                      3.2%
2006    $36.72 billion                7.1%                      3.4%

Source: Specialty Equipment Market Association (SEMA)

SEMA Show exhibitors that would like to build a Nissan-based project vehicle are reminded that the deadline to submit project-vehicle proposals to Nissan is Thursday, June 15. Proposals based on all current Nissan models will be accepted. Nissan's 2007 SEMA Show strategy will focus primarily on the 2007 Sentra and the 2008 Altima Coupe.

Complete program information and proposal requirements are available by clicking here. For more information on project-vehicle programs, contact Bill Wolf at billw@sema.org or visit www.sema.org/oem.

SEMA's eight councils and two committees are set to tee off on the greens of the Strawberry Farms Golf Club as part of Council Cup - Cash for Kids, a friendly game of golf to benefit children's charities. All groups will compete in teams of four. The teams are:

Automotive Restoration Market Organization (ARMO)

Ernie Silvers, Egge Machine Co. Inc.
Jim Barber, Classic Automotive Restoration
Dave Mihalko Jr., Restoration Specialties
Alex Tainsh, SoffSeal Inc.

Light-Truck Accessory Alliance (TORA)

Anne Johnson, California Truck Works
Gary Long
Dave Madison
Corky Volp

Professional Restylers Organization (PRO)

Larry Riggle, Webasto Product North America
Kerry Howton, Arizona Sun Tops
Bob West, Westin Automotive Products
John LaBare, Westin Automotive Products

Young Executives Network (YEN)

Luanne Brown, eTool Developers LLC
S. Kellie Colf, Eaton Detroit Springs
Tammy Holland, Competition Cams Inc.
Don Colf, Eaton Detroit Springs

American Technologies and Cap World Team

Ron DiVincenzo
Kelly Kneifl
Charlie Holden
Todd Yeoman

If you want to tee up to help Childhelp and Victory Junction Gang Camp's charitable activities, you can form your own team. If you've already formed a team, please send us the details. For information on the SEMA Charity Golf Tournament, contact Arlene Wood at arlenew@sema.org or 909/396-0289 ext. 110. Even if you don't play, it's easy to support your favorite council by making a charitable pledge online. Click here to pledge anywhere from $10–$100 or the amount of your choice.

The Council Cup is just one event representing SEMA's charitable efforts to benefit two worthwhile organizations that have become favorites of SEMA-member companies—Childhelp and the Victory Junction Gang Camp.

This year, the association included charitable fundraising activities in conjunction with its traditional SEMA Installation Banquet to form the SEMA Installation Banquet & Gala Fundraiser. Proceeds from the gala event will be contributed to two organizations. For information on the event and activities, visit www.sema.org/gala.