SEMA News - February 2010

By Steve Campbell

Expert Insights Into Tire and Wheel Markets and Innovations

	“U.S. replacement passenger tires were expected to fall 6% in 2009 but could rebound in 2010 by about 3%, depending on the economy,” said David Zielasko, editor and vice president/publisher of Tire Business.

No single element can change the look of a car or truck like a set of tires and wheels. Thin or thick sidewalls, tall or small, chrome or painted, steel or aluminum—the combinations are endless, and each can thoroughly alter the appearance and the functionality of the vehicle. At last November’s SEMA Show in Las Vegas, a group of enthusiasts who were taking part in a marketing study confirmed the popularity of tire and wheel modifications. A whopping 84.6% of them said that they had bought tires or wheels for their vehicles, and for many—regardless of the type of vehicle they owned—tires and wheels were the first accessory they bought.

Changing Tires

Because tires are a wear item, the replacement industry is obviously huge. Price, tread life, traction, size and speed ratings are all high on the list of considerations for consumers, and a change in wheels may also be undertaken when tires are replaced. As new technologies come on line and economic conditions create or change markets, the wheel and tire industry shifts to provide innovative products and accommodate consumer needs. The increasing emphasis on climate change and pollution has brought about something of a revolution in the industry.

“Most tire manufacturers are launching low-rolling-resistance products, which offer improved fuel efficiency,” said David E. Zielasko, editor and vice president/publisher of Tire Business. “Tire companies are also experimenting with—and, in some cases, already offering—tires manufactured using more environmentally friendly materials and chemicals.”

Those efficiencies and environmental enhancements are coming about through both tread design and the use of different manufacturing materials.

	Many tire companies are promoting the use of winter tires as opposed to all-season tires in northern regions of the United States, said David Zielasko. Winter performance tires, such as Falken’s Eurowinter HS439, provide superior grip on ice and snow. Courtesy of Tire Business

“Tread design tackles two issues at once,” said Jim Smith, editor of Tire Review magazine. “First is trying to retain the best traction qualities for the given conditions—summertime or all-season—but also doing it in a fashion that delivers the lowest possible rolling resistance, which plays into tread life. The other part is the tread compound, with an increased use of silica and some heavier use of natural rubber versus synthetics, both of which tend to work better in terms of rolling resistance and traction capabilities. With regard to ‘green’ tires, we’re seeing the replacement of what are called the aromatic oils with products, such as citrus oil, which Yokohama uses, or other synthetics. Sumitomo and others are also reducing the use of oils and oil-based products in their synthetic rubbers.”

Unfortunately, Smith pointed out, there is no universally accepted way to grade tire fuel efficiency, although the National Highway Traffic Safety Administration is said to be working on one. While they wait, tire manufacturers have been treading lightly on their fuel-efficiency claims to avoid entanglements with consumer groups or the government.

On the enthusiast side of the street, compounds seem to be the magic word. According to David Freiburger, editor-in-chief of Hot Rod and Hot Rod Deluxe magazines, more makers are getting involved in drag-specific, DOT-approved street radials, changing over from longer-wearing streetable models to those that are super gummy and provide nearly the same performance as a drag slick.

“While drag radials for 15-inch wheels are the performance standard in the street-car drag-racing world, we are seeing more and more expansion into models for 18-inch and larger wheels for OE applications, such as Corvettes, where the owner wants a sticky tire but can’t run small-diameter wheels because they will not fit over the stock brakes,” Freiburger said. “There’s also the Pro Touring market, which has matured to the point where performance handling radials and even specific big-track and autocross tires are being consumed by musclecar builders. In the retro market covered by Hot Rod Deluxe, Coker Tire is on top of the heap with its reproduction vintage tires and its new radial that looks like a bias-ply.”

Tire Review’s Smith said that the hot-rod market is a great one to be in right now for tire retailers because it is so well sheltered.

“These guys are in love with what they drive,” he said. “They’re not casual consumers. They’re intensely interested in their hobby and their craft. Spending levels may ebb and flow based on the economy, but you’re not going to see the whole segment just disappear overnight like we saw with the tuner segment.”

 

Interchangeable bezels—such as a watch bezel—come in multiple colors, including hot pink and a glow-in-the-dark model. Courtesy of WTW Corp.

Wheels such as this Spezia-5 by Gianelle can be modified with colored bezels as well as spoke caps in chrome or a matte-black finish. Courtesy of WTW Corp.

 

The turbulence in the tuner segment is one indicator of how the automotive universe has suffered during the recession, and that’s not likely to change much for tire dealers in the coming months. Zielasko said that dealers will see stiffer competition in 2010 from larger tire chains and non-traditional outlets that have gobbled up smaller independents. In addition, car dealerships are taking a more aggressive approach to selling tires along with other types of accessories. Even so, Bob Ulrich, editor of Modern Tire Dealer magazine, pointed out that there is pent-up demand for tires as people hold on to vehicles longer and spend their money on maintenance of used vehicles rather than buying new. Ulrich also said, however, that the demand will be mitigated somewhat because tires will cost more than they did in 2009.

“There are two reasons,” he said. “Shortages in entry-level tires due to a 35% tariff on China-made consumer tires and rising raw material costs that will lead to higher prices across the board.”

In addition, tire manufacturers had been cleaning out inventory for eight months while trimming production, which will contribute to the rise.

	In the performance category, more makers are getting involved in drag-specific, DOT-approved street radials, such as this Hankook Ventus Z214 symmetrically designed semi-slick tire.

The tariffs were placed on Chinese passenger and light-truck consumer tires in 2009, Zielasko said, and nearly all of the major tire companies raised prices about 3%–10% by January 2010, so consumers will be paying more for tires. Still, that also creates an opportunity.

“The greatest opportunity for tire manufacturers is to fill the void created by the Chinese tire tariff,” Zielasko said. “This is primarily in the entry-level segment—tires 15 inches in rim diameter and below. Tire makers will also gain from selling higher-margin tires, such as those with higher speed ratings; rim diameters that are 17 inches and higher; and those with special qualities, such as winter and eco tires.”

On the topic of sizing, Smith and others believe that the days of ultra-tall plus sizes are coming to an end and that diameters will return to the more moderate 15-, 17- and 18-inch realm. He also noted that the tire market will change as vehicle sales shift somewhat from light trucks to smaller crossovers and more fuel-efficient vehicles.

“A lot of people are waiting to see how the public reacts to these new offerings,” he said. “If the market goes crazy for the Dodge/Fiat 500, the Chevy Volt and these vehicles that have been heavily touted as being incredibly fuel efficient, that’s going to tell the tire makers a lot about how they’ve got to react. Dealers need to monitor those activities, just as they also need to be very judicious about inventory levels, ensuring that they’ve got a ready supply. If that means that you’ve got to use a couple of additional distributors in your area to meet your needs, then that’s what you’ve got to do. Cash is going to continue to be king in 2010, and a large part of that is not tying up a ton of dollars in inventory.”

For tire manufacturers, the challenge will be to maintain profitability in a market that’s shrunk, Zielasko said, citing statistics from the Rubber Manufacturers Association (RMA).

“U.S. replacement passenger tires were expected to fall 6% in 2009 but could rebound in 2010 by about 3%, depending on the economy,” he explained. “Light-truck tire replacement shipments were predicted to fall 11% in 2009, with no improvement for 2010. Overall, the RMA projects tire shipments to fall 13% in 2009, including commercial tires, but to rebound by nearly 6% in 2010.”

The Wheel Deal

	Design and color remain the soul of innovation for wheel manufacturers, including inserts, colored bezels, relief graphics and new spoke configurations.

While the eco/fuel-efficiency trend is a hot topic in tire circles, design and color remain the soul of innovation for wheel manufacturers. According to Diko Sulahian, founder of WTW Corp., which produces Giovanna Wheels, Gianelle Designs, Koko Kuture and GFG forged modular wheels, two-tone finishes have been the most popular for about the past six months.

“The trend in design is to personalize the wheels,” he said, “adding your own touch to your vehicle by adding a colored bezel such as one from our Koko Kuture line in various colors or by custom painting the spoke caps of the wheels the same color as your car. One-piece forged wheels are also a new trend for many companies, although mine have had them available for years and it’s a limited application. And plastic spoke caps that attach to the wheels are now offered by numerous wheel companies, allowing you to interchange the look of the wheel by changing a cap, or you can use ABS plastic interchangeable bezels—such as a watch bezel—that come in all colors, including hot pink and a glow-in-the-dark model.”

Kelly Austin, director of sales for Ultra Wheel Company, said that painted wheels are outselling chrome wheels in the majority of the country, though the Southeast Unites States is keeping chrome sales going for now.

“Pricing is tight,” Austin said, “and that is hampering exotic construction types for traditional wheels. One-piece cast aluminum is still the most popular construction type. Some one-piece and multipiece forgings are still moving, but one-piece cast still dominates the volume side of the market.”

Ron Escue, director of business development for Wheel Pros LLC, said that the latest innovations are reveal patterns or graphics that are either cast into the wheel or airbrushed onto the face of the finished product. Freiburger said that he noticed two emerging trends at the SEMA Show: single or double-spoke wheels, and five-spoke wheels with one spoke painted a different tone than the others. He also concurred that the ultra-tall phenomenon appears to be fading.

	No single element can change the look of a car or truck like a set of tires and wheels. Thin or thick sidewalls, tall or small, chrome or painted, steel or aluminum—the combinations are endless, and each can thoroughly alter the appearance and the functionality of the vehicle.

“It seems that 20-inch and larger wheels are being used on higher-end musclecar builds these days,” he explained, “but there is a core audience which feels that anything larger than 18s turns a car into a cartoon. Diehard performance builders feel that huge diameters are a detriment to handling and ride quality.”

The truck market appears to be in agreement with that assessment, according to Bob Carpenter, editor of 8-Lug HD Truck magazine.

“Biggest is no longer hottest,” he said. “Things have pulled back, and people are looking for more reasonable sizes for their trucks. The whole point of custom wheels and tires is to make your truck stand out and be different. So going with what’s simply ‘hot’ at the moment is probably the wrong direction for a lot of people.”

Carpenter said that show-truck builders seem to be remaining in the chrome camp, but he’s seeing more color and more gray or black centers.

“Some think chrome adds a lot of weight, and everyone is conscious of fuel mileage, so weight plays a factor,” Carpenter said. “Plus, the darker colors are easier to keep clean.”

As with tires, the wheel experts advised retailers to pursue just-in-time inventory delivery. Escue said that improved methods should allow retailers to quickly secure product once a sale has been determined, and Austin said that additional sales training is more important than ever in order to capitalize on any and all opportunities, including negotiation and listening to the customer’s needs.

“Consumer confidence is climbing,” he said. “That will bring more retail opportunities in 2010 than we had in 2009. Make sure you’re prepared to take advantage of them.”

 

SEMA News - February 2010

By Steve Campbell

Expert Insights Into Tire and Wheel Markets and Innovations

	“U.S. replacement passenger tires were expected to fall 6% in 2009 but could rebound in 2010 by about 3%, depending on the economy,” said David Zielasko, editor and vice president/publisher of Tire Business.

No single element can change the look of a car or truck like a set of tires and wheels. Thin or thick sidewalls, tall or small, chrome or painted, steel or aluminum—the combinations are endless, and each can thoroughly alter the appearance and the functionality of the vehicle. At last November’s SEMA Show in Las Vegas, a group of enthusiasts who were taking part in a marketing study confirmed the popularity of tire and wheel modifications. A whopping 84.6% of them said that they had bought tires or wheels for their vehicles, and for many—regardless of the type of vehicle they owned—tires and wheels were the first accessory they bought.

Changing Tires

Because tires are a wear item, the replacement industry is obviously huge. Price, tread life, traction, size and speed ratings are all high on the list of considerations for consumers, and a change in wheels may also be undertaken when tires are replaced. As new technologies come on line and economic conditions create or change markets, the wheel and tire industry shifts to provide innovative products and accommodate consumer needs. The increasing emphasis on climate change and pollution has brought about something of a revolution in the industry.

“Most tire manufacturers are launching low-rolling-resistance products, which offer improved fuel efficiency,” said David E. Zielasko, editor and vice president/publisher of Tire Business. “Tire companies are also experimenting with—and, in some cases, already offering—tires manufactured using more environmentally friendly materials and chemicals.”

Those efficiencies and environmental enhancements are coming about through both tread design and the use of different manufacturing materials.

	Many tire companies are promoting the use of winter tires as opposed to all-season tires in northern regions of the United States, said David Zielasko. Winter performance tires, such as Falken’s Eurowinter HS439, provide superior grip on ice and snow. Courtesy of Tire Business

“Tread design tackles two issues at once,” said Jim Smith, editor of Tire Review magazine. “First is trying to retain the best traction qualities for the given conditions—summertime or all-season—but also doing it in a fashion that delivers the lowest possible rolling resistance, which plays into tread life. The other part is the tread compound, with an increased use of silica and some heavier use of natural rubber versus synthetics, both of which tend to work better in terms of rolling resistance and traction capabilities. With regard to ‘green’ tires, we’re seeing the replacement of what are called the aromatic oils with products, such as citrus oil, which Yokohama uses, or other synthetics. Sumitomo and others are also reducing the use of oils and oil-based products in their synthetic rubbers.”

Unfortunately, Smith pointed out, there is no universally accepted way to grade tire fuel efficiency, although the National Highway Traffic Safety Administration is said to be working on one. While they wait, tire manufacturers have been treading lightly on their fuel-efficiency claims to avoid entanglements with consumer groups or the government.

On the enthusiast side of the street, compounds seem to be the magic word. According to David Freiburger, editor-in-chief of Hot Rod and Hot Rod Deluxe magazines, more makers are getting involved in drag-specific, DOT-approved street radials, changing over from longer-wearing streetable models to those that are super gummy and provide nearly the same performance as a drag slick.

“While drag radials for 15-inch wheels are the performance standard in the street-car drag-racing world, we are seeing more and more expansion into models for 18-inch and larger wheels for OE applications, such as Corvettes, where the owner wants a sticky tire but can’t run small-diameter wheels because they will not fit over the stock brakes,” Freiburger said. “There’s also the Pro Touring market, which has matured to the point where performance handling radials and even specific big-track and autocross tires are being consumed by musclecar builders. In the retro market covered by Hot Rod Deluxe, Coker Tire is on top of the heap with its reproduction vintage tires and its new radial that looks like a bias-ply.”

Tire Review’s Smith said that the hot-rod market is a great one to be in right now for tire retailers because it is so well sheltered.

“These guys are in love with what they drive,” he said. “They’re not casual consumers. They’re intensely interested in their hobby and their craft. Spending levels may ebb and flow based on the economy, but you’re not going to see the whole segment just disappear overnight like we saw with the tuner segment.”

 

Interchangeable bezels—such as a watch bezel—come in multiple colors, including hot pink and a glow-in-the-dark model. Courtesy of WTW Corp.

Wheels such as this Spezia-5 by Gianelle can be modified with colored bezels as well as spoke caps in chrome or a matte-black finish. Courtesy of WTW Corp.

 

The turbulence in the tuner segment is one indicator of how the automotive universe has suffered during the recession, and that’s not likely to change much for tire dealers in the coming months. Zielasko said that dealers will see stiffer competition in 2010 from larger tire chains and non-traditional outlets that have gobbled up smaller independents. In addition, car dealerships are taking a more aggressive approach to selling tires along with other types of accessories. Even so, Bob Ulrich, editor of Modern Tire Dealer magazine, pointed out that there is pent-up demand for tires as people hold on to vehicles longer and spend their money on maintenance of used vehicles rather than buying new. Ulrich also said, however, that the demand will be mitigated somewhat because tires will cost more than they did in 2009.

“There are two reasons,” he said. “Shortages in entry-level tires due to a 35% tariff on China-made consumer tires and rising raw material costs that will lead to higher prices across the board.”

In addition, tire manufacturers had been cleaning out inventory for eight months while trimming production, which will contribute to the rise.

	In the performance category, more makers are getting involved in drag-specific, DOT-approved street radials, such as this Hankook Ventus Z214 symmetrically designed semi-slick tire.

The tariffs were placed on Chinese passenger and light-truck consumer tires in 2009, Zielasko said, and nearly all of the major tire companies raised prices about 3%–10% by January 2010, so consumers will be paying more for tires. Still, that also creates an opportunity.

“The greatest opportunity for tire manufacturers is to fill the void created by the Chinese tire tariff,” Zielasko said. “This is primarily in the entry-level segment—tires 15 inches in rim diameter and below. Tire makers will also gain from selling higher-margin tires, such as those with higher speed ratings; rim diameters that are 17 inches and higher; and those with special qualities, such as winter and eco tires.”

On the topic of sizing, Smith and others believe that the days of ultra-tall plus sizes are coming to an end and that diameters will return to the more moderate 15-, 17- and 18-inch realm. He also noted that the tire market will change as vehicle sales shift somewhat from light trucks to smaller crossovers and more fuel-efficient vehicles.

“A lot of people are waiting to see how the public reacts to these new offerings,” he said. “If the market goes crazy for the Dodge/Fiat 500, the Chevy Volt and these vehicles that have been heavily touted as being incredibly fuel efficient, that’s going to tell the tire makers a lot about how they’ve got to react. Dealers need to monitor those activities, just as they also need to be very judicious about inventory levels, ensuring that they’ve got a ready supply. If that means that you’ve got to use a couple of additional distributors in your area to meet your needs, then that’s what you’ve got to do. Cash is going to continue to be king in 2010, and a large part of that is not tying up a ton of dollars in inventory.”

For tire manufacturers, the challenge will be to maintain profitability in a market that’s shrunk, Zielasko said, citing statistics from the Rubber Manufacturers Association (RMA).

“U.S. replacement passenger tires were expected to fall 6% in 2009 but could rebound in 2010 by about 3%, depending on the economy,” he explained. “Light-truck tire replacement shipments were predicted to fall 11% in 2009, with no improvement for 2010. Overall, the RMA projects tire shipments to fall 13% in 2009, including commercial tires, but to rebound by nearly 6% in 2010.”

The Wheel Deal

	Design and color remain the soul of innovation for wheel manufacturers, including inserts, colored bezels, relief graphics and new spoke configurations.

While the eco/fuel-efficiency trend is a hot topic in tire circles, design and color remain the soul of innovation for wheel manufacturers. According to Diko Sulahian, founder of WTW Corp., which produces Giovanna Wheels, Gianelle Designs, Koko Kuture and GFG forged modular wheels, two-tone finishes have been the most popular for about the past six months.

“The trend in design is to personalize the wheels,” he said, “adding your own touch to your vehicle by adding a colored bezel such as one from our Koko Kuture line in various colors or by custom painting the spoke caps of the wheels the same color as your car. One-piece forged wheels are also a new trend for many companies, although mine have had them available for years and it’s a limited application. And plastic spoke caps that attach to the wheels are now offered by numerous wheel companies, allowing you to interchange the look of the wheel by changing a cap, or you can use ABS plastic interchangeable bezels—such as a watch bezel—that come in all colors, including hot pink and a glow-in-the-dark model.”

Kelly Austin, director of sales for Ultra Wheel Company, said that painted wheels are outselling chrome wheels in the majority of the country, though the Southeast Unites States is keeping chrome sales going for now.

“Pricing is tight,” Austin said, “and that is hampering exotic construction types for traditional wheels. One-piece cast aluminum is still the most popular construction type. Some one-piece and multipiece forgings are still moving, but one-piece cast still dominates the volume side of the market.”

Ron Escue, director of business development for Wheel Pros LLC, said that the latest innovations are reveal patterns or graphics that are either cast into the wheel or airbrushed onto the face of the finished product. Freiburger said that he noticed two emerging trends at the SEMA Show: single or double-spoke wheels, and five-spoke wheels with one spoke painted a different tone than the others. He also concurred that the ultra-tall phenomenon appears to be fading.

	No single element can change the look of a car or truck like a set of tires and wheels. Thin or thick sidewalls, tall or small, chrome or painted, steel or aluminum—the combinations are endless, and each can thoroughly alter the appearance and the functionality of the vehicle.

“It seems that 20-inch and larger wheels are being used on higher-end musclecar builds these days,” he explained, “but there is a core audience which feels that anything larger than 18s turns a car into a cartoon. Diehard performance builders feel that huge diameters are a detriment to handling and ride quality.”

The truck market appears to be in agreement with that assessment, according to Bob Carpenter, editor of 8-Lug HD Truck magazine.

“Biggest is no longer hottest,” he said. “Things have pulled back, and people are looking for more reasonable sizes for their trucks. The whole point of custom wheels and tires is to make your truck stand out and be different. So going with what’s simply ‘hot’ at the moment is probably the wrong direction for a lot of people.”

Carpenter said that show-truck builders seem to be remaining in the chrome camp, but he’s seeing more color and more gray or black centers.

“Some think chrome adds a lot of weight, and everyone is conscious of fuel mileage, so weight plays a factor,” Carpenter said. “Plus, the darker colors are easier to keep clean.”

As with tires, the wheel experts advised retailers to pursue just-in-time inventory delivery. Escue said that improved methods should allow retailers to quickly secure product once a sale has been determined, and Austin said that additional sales training is more important than ever in order to capitalize on any and all opportunities, including negotiation and listening to the customer’s needs.

“Consumer confidence is climbing,” he said. “That will bring more retail opportunities in 2010 than we had in 2009. Make sure you’re prepared to take advantage of them.”

 

SEMA News - February 2010

By Annie Kang

SEMA-Member Companies Help Customize Truck for Children’s Charities

This custom-built Ford F-150 is not something that can be easily picked up at the dealer lot. What makes it all the more special is that SEMA-member companies helped create this SuperCrew 4x4 to benefit children’s charities.

The idea of customizing and auctioning a new vehicle for charity was something that had been tossed around for several years by SEMA’s Light-Truck Accessory Alliance (TORA) council’s Select Committee. But it wasn’t until SEMA Cares Committee Chairman Joel Ayres devoted himself to the concept that it became a reality.

“Leer presented the idea to Ford Motor Company as a project truck to benefit the SEMA Cares Committee,” said Ayres, national marketing director of Leer, a division of Truck Accessories Group Inc.

Ford donated the new 2009 Ford F-150, and Street Scene Equipment came on board to customize the vehicle.

SEMA Cares Ford F-150 SuperCrew 4x4 Leer 700 Series Tonneau Cover Street Scene Equipment Power Cal Vu Signal Mirrors, Urethane Roll Pan, Urethane Bumper Cover, Billet Grille, Lower Valance Grille Doug Starbuck of Starside Design Custom Paint DuPont Hot Hues Paint Amp Research Retracktable Power Steps Roadwire Classic Soft Trim Interior Audio Innovations Audio System Audiovox Video Monitors Kicker Amps and Speakers Scosche Wiring and Connectors Wise Industries Bed Rug Carpet Kit Pro Comp Lift Kit Pro Comp Chrome 20-inch Wheels and 35/12.50R20 Tires Bushwacker Street Flares Magnaflow Exhaust

“Joel came to us and asked us to design and assemble the truck,” said Mike Spagnola, president of Street Scene Equipment. “We did all the building of the truck, adding Street Scene products as well as products donated from other companies. It is a great-looking truck, and it couldn’t have been built without everyone’s cooperation. Ford was also very happy with it because it was a clean build. It wasn’t overdone or over-accessorized.”

Spagnola, along with Pat Stewart from Leer, approached his industry peers and asked them to donate parts to the cause.

“There wasn’t a single company that turned us down,” Spagnola said. “They felt that it was for a great cause, and they realized that it was a very high-profile vehicle. The truck was displayed at the SEMA Show two years in a row and was featured on the Street Scene and Leer websites.”

The Ford F-150 made its first appearance at the 2008 SEMA Show.

“Any time you do a build like that, it’s a rush to get it done,” said Spagnola. “We received the truck about six weeks before the 2008 Show. At that time, there weren’t a lot of parts available for the vehicle, so we had to work quickly to get products and to install them. The paint was barely dry when we left for the 2008 SEMA Show, but we got a great response.”

The vehicle was showcased the following year at the 2009 SEMA Show and the inaugural SEMA Cares 2009 Show ’N Shine car show, which was held in Pasadena, California. It was also featured on the cover of Trucking Times and in Truckin’ and Restyling. Proceeds from the auction benefitted SEMA Cares charities ChildHelp and Victory Junction Gang Camp.

“Both charities were very appreciative and ecstatic,” said Spagnola, “not only in terms of the financial contribution, but for the exposure the vehicle has brought to them.”

The SEMA Cares Committee, established by the SEMA Board of Directors in 2007, aims to bring the voice and resources of the SEMA community together to make a positive difference in the lives of others.

“I just think it is wonderful that our association, even in tough times, has chosen to reach out to others,” said Spagnola. “I think it has brought goodwill not just to SEMA and the aftermarket companies that participated, but to our industry in general.”

 

 

SEMA News - February 2010

By Annie Kang

SEMA-Member Companies Help Customize Truck for Children’s Charities

This custom-built Ford F-150 is not something that can be easily picked up at the dealer lot. What makes it all the more special is that SEMA-member companies helped create this SuperCrew 4x4 to benefit children’s charities.

The idea of customizing and auctioning a new vehicle for charity was something that had been tossed around for several years by SEMA’s Light-Truck Accessory Alliance (TORA) council’s Select Committee. But it wasn’t until SEMA Cares Committee Chairman Joel Ayres devoted himself to the concept that it became a reality.

“Leer presented the idea to Ford Motor Company as a project truck to benefit the SEMA Cares Committee,” said Ayres, national marketing director of Leer, a division of Truck Accessories Group Inc.

Ford donated the new 2009 Ford F-150, and Street Scene Equipment came on board to customize the vehicle.

SEMA Cares Ford F-150 SuperCrew 4x4 Leer 700 Series Tonneau Cover Street Scene Equipment Power Cal Vu Signal Mirrors, Urethane Roll Pan, Urethane Bumper Cover, Billet Grille, Lower Valance Grille Doug Starbuck of Starside Design Custom Paint DuPont Hot Hues Paint Amp Research Retracktable Power Steps Roadwire Classic Soft Trim Interior Audio Innovations Audio System Audiovox Video Monitors Kicker Amps and Speakers Scosche Wiring and Connectors Wise Industries Bed Rug Carpet Kit Pro Comp Lift Kit Pro Comp Chrome 20-inch Wheels and 35/12.50R20 Tires Bushwacker Street Flares Magnaflow Exhaust

“Joel came to us and asked us to design and assemble the truck,” said Mike Spagnola, president of Street Scene Equipment. “We did all the building of the truck, adding Street Scene products as well as products donated from other companies. It is a great-looking truck, and it couldn’t have been built without everyone’s cooperation. Ford was also very happy with it because it was a clean build. It wasn’t overdone or over-accessorized.”

Spagnola, along with Pat Stewart from Leer, approached his industry peers and asked them to donate parts to the cause.

“There wasn’t a single company that turned us down,” Spagnola said. “They felt that it was for a great cause, and they realized that it was a very high-profile vehicle. The truck was displayed at the SEMA Show two years in a row and was featured on the Street Scene and Leer websites.”

The Ford F-150 made its first appearance at the 2008 SEMA Show.

“Any time you do a build like that, it’s a rush to get it done,” said Spagnola. “We received the truck about six weeks before the 2008 Show. At that time, there weren’t a lot of parts available for the vehicle, so we had to work quickly to get products and to install them. The paint was barely dry when we left for the 2008 SEMA Show, but we got a great response.”

The vehicle was showcased the following year at the 2009 SEMA Show and the inaugural SEMA Cares 2009 Show ’N Shine car show, which was held in Pasadena, California. It was also featured on the cover of Trucking Times and in Truckin’ and Restyling. Proceeds from the auction benefitted SEMA Cares charities ChildHelp and Victory Junction Gang Camp.

“Both charities were very appreciative and ecstatic,” said Spagnola, “not only in terms of the financial contribution, but for the exposure the vehicle has brought to them.”

The SEMA Cares Committee, established by the SEMA Board of Directors in 2007, aims to bring the voice and resources of the SEMA community together to make a positive difference in the lives of others.

“I just think it is wonderful that our association, even in tough times, has chosen to reach out to others,” said Spagnola. “I think it has brought goodwill not just to SEMA and the aftermarket companies that participated, but to our industry in general.”

 

 

SEMA News - February 2010

By Steve Campbell

Activist, Hobbyist, Enthusiastic Supporter of the Industry

	Doug Evans of Source Interlink Media is the 2009 SEMA Person of the Year. The award recognizes the honoree’s contributions to the industry.

The SEMA Person of the Year award was established in 1969 to honor an individual for outstanding contributions to the industry reaching beyond the person’s normal job functions. In the case of this year’s honoree, those contributions were extraordinary and ongoing. SEMA was proud to name Doug Evans of Source Interlink Media its 2009 Person of the Year at the recent SEMA Show in Las Vegas.

“Doug often operates behind the scenes, doing great work for the association without seeking the spotlight—which is exactly what being a SEMA volunteer is all about,” said Mitch Williams, COO of Pilot Automotive Inc. and former chairman of the SEMA Board of Directors. “He’s been a go-to guy whenever the Board needed leadership on a project. There is no better example of investing in our industry than Source Interlink Media, and that culture of investment was created by Doug.”

Evans got his start as an enthusiast by repairing the cars his older brother thrashed. Before he could even get a driver’s license, Evans had begun to acquire tools and learn the mechanical skills that would stick with him throughout his life. That hobby made him a fan of Robert E. Petersen’s Hot Rod magazine, which turned out to be a very fortuitous choice of reading materials.

After interrupting his college years for a hitch in the U.S. Marines during the late ’70s, Evans began to develop his trademark activism. His first stint on the political scene was as the president of the student body at Valparaiso University in Indiana. After graduation, he went to work as a media planner at Young & Rubicam, which was the largest advertising firm in the world at the time. It didn’t take him long to realize that he could do a better job of sales and publishing than the magazine guys he was dealing with at the agency, and he also knew that Petersen Publishing Company was the place he wanted to be. As his career developed, becoming involved with SEMA was a natural adjunct to his interests and his passions.

“There are issues that need to be addressed on virtually every level of the industry,” he said. “From the closure of public lands to noise regulations and bumper-height legislation, even well-meaning politicians have a tendency to not recognize the end result of their actions. If every one of those restrictive bills were passed, we could be legislated right out of existence.”

As he became more involved with the association, Evans was elected to three terms on the Select Committee of the Automotive Restoration Market Organization (ARMO), a SEMA council. While serving there, he came to recognize that helping to shape industry policies and programs was both beneficial to his professional work and to the hobby he loved. The next logical step, he reasoned, was to run for a seat on the Board of Directors, where he is now in his third term, and he served on the SEMA Executive Committee.

Evans’ career also progressed as he moved into sales positions and management jobs within Petersen. He stayed with the company through a series of ownership changes and by the time Source Interlink Media acquired the business, he had become senior vice president and group publisher, the title he holds today as he oversees the print and digital publication of more than 46 titles, two television shows and 35 events. In that capacity, he was the prime mover in convincing Source Interlink Media executives to grant SEMA access to the publishing icon’s priceless photographic archives.

“The holdings go back to the late ’40s when Robert E. Petersen started the company along with Wally Parks,” he said, “and there are about 5.5 million images just in the Los Angeles archive. Obviously, Source Interlink Media maintains the commercial rights to them, but allowing SEMA access so that the association can digitize the images and use them on the SEMA website allows people to get excited about the industry and its history. And the photos educate people about what we do. It’s beneficial to SEMA, but it’s also beneficial to Source Interlink Media. The more enthusiasts there are, the better it is for our circulation growth and for the future of our readers.”

	The Person of the Year award was presented to Evans (left) by the first chairman of SEMA’s Political Action Committee, Pat Judge. Evans succeeded Judge in the chairmanship and has worked tirelessly on behalf of the association.

Evans also bolstered his activism within the association by assuming the chairmanship of its political action committee, SEMA PAC. He has used his influence and the relationships he has built with politicians on both sides of the aisle to support and defend the industry.

“We’ve cooperated with lawmakers for the benefit of all,” he said. “For instance, we worked with the legislature in California to get the GreenRod project established. That’s one example of how our industry’s lobby and SEMA staff can benefit hobbyists and keep hot rods alive. Our ability to influence legislators to be friendly to a $33 billion industry that employs millions of people is critical. It helps more than 7,000 SEMA-member businesses thrive. It fuels the passions of millions of enthusiasts all over the world and allows us to fund charity work and other worthwhile projects.”

Gratified by his career and his role at SEMA, Evans is also optimistic about the future.

“With so much change occurring, it’s a fascinating time to be in the media,” he said. “I lived through the launch of cable television, through the launch of satellite-printed newspapers with USA Today, through the launch of 24-hour news channels. Few people believed that any of those would work, and now we’re seeing how the Internet and magazines play off one another. Twenty years from now, I hope that I’m still publishing great magazines, producing great TV shows and building great websites.”

It would benefit SEMA if he’s also still the activist and leader that he is today.

 

SEMA News - February 2010

By Steve Campbell

Activist, Hobbyist, Enthusiastic Supporter of the Industry

	Doug Evans of Source Interlink Media is the 2009 SEMA Person of the Year. The award recognizes the honoree’s contributions to the industry.

The SEMA Person of the Year award was established in 1969 to honor an individual for outstanding contributions to the industry reaching beyond the person’s normal job functions. In the case of this year’s honoree, those contributions were extraordinary and ongoing. SEMA was proud to name Doug Evans of Source Interlink Media its 2009 Person of the Year at the recent SEMA Show in Las Vegas.

“Doug often operates behind the scenes, doing great work for the association without seeking the spotlight—which is exactly what being a SEMA volunteer is all about,” said Mitch Williams, COO of Pilot Automotive Inc. and former chairman of the SEMA Board of Directors. “He’s been a go-to guy whenever the Board needed leadership on a project. There is no better example of investing in our industry than Source Interlink Media, and that culture of investment was created by Doug.”

Evans got his start as an enthusiast by repairing the cars his older brother thrashed. Before he could even get a driver’s license, Evans had begun to acquire tools and learn the mechanical skills that would stick with him throughout his life. That hobby made him a fan of Robert E. Petersen’s Hot Rod magazine, which turned out to be a very fortuitous choice of reading materials.

After interrupting his college years for a hitch in the U.S. Marines during the late ’70s, Evans began to develop his trademark activism. His first stint on the political scene was as the president of the student body at Valparaiso University in Indiana. After graduation, he went to work as a media planner at Young & Rubicam, which was the largest advertising firm in the world at the time. It didn’t take him long to realize that he could do a better job of sales and publishing than the magazine guys he was dealing with at the agency, and he also knew that Petersen Publishing Company was the place he wanted to be. As his career developed, becoming involved with SEMA was a natural adjunct to his interests and his passions.

“There are issues that need to be addressed on virtually every level of the industry,” he said. “From the closure of public lands to noise regulations and bumper-height legislation, even well-meaning politicians have a tendency to not recognize the end result of their actions. If every one of those restrictive bills were passed, we could be legislated right out of existence.”

As he became more involved with the association, Evans was elected to three terms on the Select Committee of the Automotive Restoration Market Organization (ARMO), a SEMA council. While serving there, he came to recognize that helping to shape industry policies and programs was both beneficial to his professional work and to the hobby he loved. The next logical step, he reasoned, was to run for a seat on the Board of Directors, where he is now in his third term, and he served on the SEMA Executive Committee.

Evans’ career also progressed as he moved into sales positions and management jobs within Petersen. He stayed with the company through a series of ownership changes and by the time Source Interlink Media acquired the business, he had become senior vice president and group publisher, the title he holds today as he oversees the print and digital publication of more than 46 titles, two television shows and 35 events. In that capacity, he was the prime mover in convincing Source Interlink Media executives to grant SEMA access to the publishing icon’s priceless photographic archives.

“The holdings go back to the late ’40s when Robert E. Petersen started the company along with Wally Parks,” he said, “and there are about 5.5 million images just in the Los Angeles archive. Obviously, Source Interlink Media maintains the commercial rights to them, but allowing SEMA access so that the association can digitize the images and use them on the SEMA website allows people to get excited about the industry and its history. And the photos educate people about what we do. It’s beneficial to SEMA, but it’s also beneficial to Source Interlink Media. The more enthusiasts there are, the better it is for our circulation growth and for the future of our readers.”

	The Person of the Year award was presented to Evans (left) by the first chairman of SEMA’s Political Action Committee, Pat Judge. Evans succeeded Judge in the chairmanship and has worked tirelessly on behalf of the association.

Evans also bolstered his activism within the association by assuming the chairmanship of its political action committee, SEMA PAC. He has used his influence and the relationships he has built with politicians on both sides of the aisle to support and defend the industry.

“We’ve cooperated with lawmakers for the benefit of all,” he said. “For instance, we worked with the legislature in California to get the GreenRod project established. That’s one example of how our industry’s lobby and SEMA staff can benefit hobbyists and keep hot rods alive. Our ability to influence legislators to be friendly to a $33 billion industry that employs millions of people is critical. It helps more than 7,000 SEMA-member businesses thrive. It fuels the passions of millions of enthusiasts all over the world and allows us to fund charity work and other worthwhile projects.”

Gratified by his career and his role at SEMA, Evans is also optimistic about the future.

“With so much change occurring, it’s a fascinating time to be in the media,” he said. “I lived through the launch of cable television, through the launch of satellite-printed newspapers with USA Today, through the launch of 24-hour news channels. Few people believed that any of those would work, and now we’re seeing how the Internet and magazines play off one another. Twenty years from now, I hope that I’m still publishing great magazines, producing great TV shows and building great websites.”

It would benefit SEMA if he’s also still the activist and leader that he is today.

 

SEMA News - February 2010

By Steve Campbell

Finding and Employing the Best People Possible

This series of SEMA News stories is based on the idea of using reliable and repeatable methods to ensure business success. In coming issues, we will delve into a range of topics aimed at developing Best Practices through knowledge, motivation and skills.

While good people are hard to find, there is no substitute. Recruiting and hiring the best possible person for a given job can be a time-consuming and arduous process. The right employee can be invaluable to a company, just as the wrong one can do immeasurable harm. A logical progression of looking in the proper places, asking informative questions and listening closely to the answers can lead to the person best suited for the job.

Planning Meeting

Before setting out to find the perfect employee, determine whether a new hire is really needed. Get together supervisors, other employees who might be affected by the new hire and the employment director or head of human resources to talk about alternatives. Determine whether the tasks that the new person would handle might be absorbed by other employees or other departments. Make sure that the company can actually afford a new hire, that there will be a return on the investment. If there is a vacancy in an existing job, determine whether a current employee—either in a junior grade or in a different department—might be the perfect replacement. If so, encourage that person to apply; process him or her through the rest of the hiring process; and then convene the next planning meeting to fill his or her old job. An already existing employee may possess skills or special knowledge that an outsider would take time to develop. Don’t overlook the obvious.

“Promoting or transferring a current employee into an open position can be a real morale booster,” said Bob Stanley, SEMA vice president of human resources. “It sends the message to other employees that there is upward mobility and growth opportunities in the organization.”

Develop a Job Description

There should be a written job description for every position in a company. Job descriptions provide direct guidance for hiring the right people, but they also point existing employees to a path for advancement. Each description should include the education, experience and personal qualities that the job holder should possess as well as the duties and responsibilities of the position—but the description should be flexible. As technology and conditions change or people develop, so may the demands of the job. Try to write descriptions that allow for those types of evolution.

The overall description should include the essentials as well as the less critical job functions along with required skills and task knowledge. If the job includes a physical component—lifting or carrying heavy parcels or moving equipment, for instance—those requirements should be spelled out. The description should also include information about the work location and the type of environment, whether it’s an office, a warehouse, a cubicle or a counter. In addition, the job description should establish the job’s reporting structure, including supervisors, coworkers and subordinates.

Advertising and Recruiting

The job description should be used as the template for a help-wanted ad, which must include the essential job duties as well as the education and experience requirements that an applicant must possess. While placing the ad in the largest available local newspaper is a good starting point, think about what other recruiting resources exist. Consider where the ideal candidate for a job might be searching, such as relevant website forums, school job boards, trade association publications (see www.sema.org/ed-classified, for instance) and specialty publications that cater to likely applicants. And don’t neglect internal job postings, including on company bulletin boards and through company-wide e-mail notices. Encourage current employees to tell their friends and relatives about openings. In this age of the Internet, also post job openings on MySpace, Facebook and the rest of the expanding universe of social-networking sites. Talk with supervisors, employees and friends about other recruiting tools that you may not have heard about or considered. As a matter of courtesy, let internal candidates know if you will also be seeking outside applicants.

Interviewing

Once you’ve got a stack of résumés in hand, turn to the job description again to begin the weeding-out process. Compare the listed requirements with the applicant’s experience and skills. When you’ve pared the bundle down to a manageable pile, use the telephone as a screening tool. Develop a set of job-related but general questions that you can ask every viable candidate, and set-up interviews with only those who offer the proper credentials and give acceptable answers.

Prior to beginning an in-person interview, provide the applicant with the written job description and give him or her a few minutes to look it over. When the interview begins, ask behavior-based questions (“If such-and-such happened, what would you do?” or “In your previous job, how did you handle X type of situation?”). The answers should allow you to assess how a candidate reads, thinks, plans and reacts to specific, job-related occurrences. Use his or her reactions to evaluate the candidate’s motivations for wanting the job, the level of interest in the company, the desire for advancement and for a career in your industry.

You may wish to have several interviewers involved in the process, each pursuing different information and with different goals in mind. For instance, there may be a technical element to the job that a fellow technician would best be able to evaluate. If there’s service involved, someone from that end should quiz the candidate about how he or she deals with difficult customers; you may want to have an expert test the applicant for particular skills.

“Include employees that would be in peer or subordinate positions in the interview process,” said Stanley. “This will give you more insight in determining the candidate’s potential fit and chemistry with the team. The employees involved with the process will also appreciate that their input is being considered and valued.”

Have each interviewer prepare questions in advance to learn about the applicant’s capabilities. Make the questions open-ended, not yes or no, so that the applicant provides as much detailed information as possible. Counsel the interviewers to listen carefully to the candidate’s own questions about the job and the company, which may help to establish his or her reason for seeking the job. Is it just for the paycheck, or is the applicant truly interested in the industry and making a career at your company.

Do not ask questions that may be discriminatory or illegal. For instance, don’t ask about age, race, ancestry, religion, gender or sexual preference, among others. Don’t ask about height or weight unless there is a direct correlation to job performance. If you have a doubt about the propriety of a question, don’t ask it!

Once all of the interviewers have completed the process, meet and discuss how the applicant performed. Make detailed notes after each interview to ensure that you remember and can distinguish between applicants later.

Background Checks

When you settle on someone (which should be a consensus decision by all of the interviewers but may come down to the boss making the choice if there is no agreement), confirm that the candidate wants the job at the salary and under the conditions you’ve discussed. Inform him or her that employment also depends upon the results of a check of references and other background information. Then have the hiring manager or human resources department verify the applicant’s education and previous employment (going back as many as three jobs and including position, length of time, salary and job performance). Also talk with the candidate’s business and personal references, but only ask about areas that are pertinent to the job you are offering. If a drug screening or a physical exam is required, have them performed before making an official job offer. Run a criminal check and (in the case of finance or accounting jobs) a credit check. Failure in any of these areas is sufficient grounds for denying employment.

Job Offer Letter

A formal job offer letter confirms that the candidate wants the job with the agreed-to terms and conditions. The letter should include the details of the employee’s compensation (salary and bonus), benefits (including insurances, pensions, 401k offering and educational assistance, if applicable) as well as the details of the vacation and sick-day/sick-leave plan. The letter should also explain how expense reimbursement is handled, including any provisions for moving expenses or other enticements for accepting the job.

While it’s always best to consult with a human resources professional and to seek legal advice when hiring a new employee, these general processes should get you well down the road to hiring someone who can make a positive difference in your business.

SEMA News - February 2010

By Annie Kang

The New Course of the Specialty-Equipment Industry

	The SEMA-CAR Industry Research reports and webinars are part of the association’s Vehicle Technology Briefing Program, which is focused on providing members with the latest information on the challenges and opportunities impacting the future of the specialty-equipment industry.

As the automotive industry continues to adapt to changes in the economy and consumer spending habits, SEMA-member companies are faced with the decision to either race ahead with the new course of the specialty-equipment market or to fall behind with the old status quo. In SEMA’s recent webinar—“The Major Determinants of U.S. Automotive Demand: Factors Driving the U.S. Automotive Market”—moderator John Waraniak, SEMA vice president of vehicle technology, urges members to focus on the upside of the industry’s current downturn.

“I strongly believe that now is the time to be energized—to leverage and capitalize on new niche markets and business opportunities that are coming ahead,” said Waraniak. “There will be fewer giants, more start-ups and infinite possibilities for those companies and entrepreneurs that don’t want to waste this crisis and are finding innovative ways to leverage this once-in-a-career convergence.”

The webinar reported results from the last of a three-phase study funded by SEMA and prepared by the Center for Automotive Research (CAR). Presented by Brett Smith, CAR director, automotive analysis group, and Bernard Swiecki, CAR senior program manager, the final stage of the report provided member companies with a look at the major factors affecting the automotive industry and their impact on specialty-equipment suppliers.

Webinar attendees received a somewhat hopeful picture of the U.S. automotive sales market. The CAR study found that August 2009 experienced a 1% improvement over August 2008 in U.S. light vehicle sales. Unit sales for August 2009 was 1,262 (in thousands) compared to 1,250 for August 2008. Light-vehicle sales have been steadily growing since January 2009, when unit sales were at a yearly low of 657.

“We did have Cash for Clunkers in full effect so at least part of that result is driven by those incentives, but you can tell that we were on a fairly steady climb out of this sales disaster a few months before Cash for Clunkers hit, so it does appear that we have come back out,” said Swiecki. “We have seen automakers’ inventory go down and, therefore, production starting to ramp up.”

The report provided a breakdown of U.S. light-vehicle sales by light trucks and passenger cars. A year-to-date (YTD) look at 2009 vs. 2008 showed a -27.9% year over year (YOY) change in total light vehicles, a -30 YOY% change in light trucks and a -26 YOY% change in passenger trucks.

“For most of this year, we saw cars and light trucks with identical sales decreases,” said Swiecki. “So trucks by a small margin continue to do poorly, and we have a slight improvement in passenger cars, although it isn’t all that significant when looking at it from an annualized basis.”

The CAR study also analyzed the percentage change in sales of light vehicles per OEM: August 2009 vs. August 2008. GM (-20.1%) and Chrysler (-15.4%) stood out with the greatest decline, more than the total industry of -12.2%, while Ford (17.2%) and Honda (9.9%) showed the largest growth.

Having also completed a segment breakdown of the market share based on vehicle type, the study revealed that SUVs are down the most YTD through August, with vans and pickups also demonstrating a significant decline. Crossovers proved to be the segment that is down the least.

“To a degree, we have a substitution effect taking place,” said Swiecki. “What we are seeing is crossovers acting as a replacement for quite a few of those lost SUV sales and also as a decent replacement for quite a few large cars.”

According to Swiecki, a recovery in pickup sales should be expected. He forecasts that with an economic recovery, pickup sales will improve because they are used for agricultural purposes, construction and other trades that are tied to the overall U.S. economy. “There are not nearly as many substitutes for pickups,” he said.

Swiecki notes that SUVs are a different case. “We do not expect as pronounced a recovery, if at all a recovery, in SUV sales, especially if fuel prices return anywhere near last year’s level of three, even over four dollars per gallon,” he said. “We expect SUVs to be the significant loser while pickups recover—again crossovers being a very good substitute for that product.”

Apart from crossovers having the smallest market share decline, the other category showing the least drop-off is small cars. “In both of those situations, what we see is the market favoring vehicles that are fuel-efficient,” said Swiecki. “Small cars simply because they are fuel-efficient and crossovers because they are good substitutes for vehicles that are not fuel-efficient.”

The report also analyzed the top sales leaders by segment YTD. The Toyota Corolla and the Honda Civic were by far the top sellers of the small-car segment. For mid-size cars, the leaders were the Toyota Camry and the Honda Accord. The Jeep Grand Cherokee and the Ford Explorer topped the list of best-selling midsize SUVs. In the minivan category, the Honda Odyssey came in first, with the Dodge Caravan and the Chrysler Town & Country following. The competition within the CUV segment was more intense, allowing for a much smaller portion of the segment sales for market leaders. The Honda CR-V was the best seller, with the Ford Escape and Toyota RAV4 coming in second and third respectively.

The fullsize pickup leaders were the Ford F-Series and the Chevrolet Silverado. The international offerings of the Toyota Tundra and the Nissan Titan did not perform well, with the Titan in particular experiencing a bad sales year. “This is an area where the Detroit Three have remained very strong in the face of international competition,” said Swiecki.

Smith took over the presentation to provide both a mid-term and long-term outlook for the U.S. automotive market.

“The mid-term outlook is defined by one thing—the recovery from the credit bubble,” said Smith. “The banks and the autos were absolutely the beneficiaries of the credit bubble.”

The CAR study also revealed the following good news:

• GM and Chrysler still exist and have emerged from bankruptcy very quickly.
• GM will cut fixed costs by up to $5,000 per vehicle.
• GM has an adequate pipeline of new product starting next year.
• The U.S. government is committed to the long-term success of GM and Chrysler.
• The government is re-examining its support for suppliers.
• Cash for Clunkers was here: it was confusing, it was chaotic but it was a success.

The following automaker conclusions were provided as well:

• The U.S. market will mostly recover by 2013.
• GM and Chrysler market will shrink by one-third and one-half, but both are definitely much healthier companies.
• Ford is gaining with a shot at becoming potentially the highest selling carmaker in North America.
• OEMs Toyota and Honda remain solid performers.
• There will be new overseas automakers arriving in North America soon, opening the door for more competition.
• The supplier sector is still in danger, but it is consolidating, production is back up and the fact that there is still a functioning, viable supply base bodes well for the future.

The in-depth analysis completed by the CAR report provided attendees with both hopeful and grim data. Regardless of the nature of the news, it is clear that change is taking place within the U.S. automotive industry and the specialty-equipment segment. The webinar was presented to assist SEMA-member companies to better prepare for the changes to come.

“These are the times you need to be building up and creating your portfolio to compete when the recovery is taking place,” said Waraniak. “I realize that’s a tough thing to do, but again, the companies that do this are the ones that are going to win. To paraphrase my favorite American philosopher—Yogi Berra—‘If you don’t want to win, no one will stop you.’”

To download an audio or PDF version of the webinar, along with a PDF of the complete CAR report, visit www.sema.org/webinar. Downloads are free for SEMA members.

 

Following are dates and locations for several upcoming SEMA-sponsored shows and activities. Click on an item for more details.

NAMED: Argentine driver Jose Maria Lopez was officially named as the first of two drivers for the new U.S. Formula One team that opens competition in March.

FOUR WIDE: NHRA professional racing teams will compete four-wide during the inaugural NHRA 4-Wide Nationals at zMAX Dragway in Concord, North Carolina, March 25–28. It will be the first NHRA event held with competition in four lanes at the same time.

BIG BUCKS: Legends cars will compete for a purse of $1 million in a special event scheduled July 15–17 at Charlotte Motor Speedway’s infield quarter-mile oval.

OVER AND OUT: Tony George resigned from the Indianapolis Motor Speedway Board of Directors, ending all ties to the speedway.

NEW BACKER: K&N Engineering has taken over sponsorship of NASCAR’s East and West Series for the coming season. The NASCAR K&N Pro Series will kick off this weekend at Toyota Speedway at Irwindale (California).

DRAFT AWAY: NASCAR officials say they will allow drivers to bump draft and to police themselves during the upcoming season-opening Daytona 500 at Daytona International Speedway.

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