SEMA News - August 2009

As the ad says, the SEMA Show truly is “Like a Pit Stop for Your Business.”

SEMA is employing highly targeted methods to attract tire and wheel buyers to this year’s SEMA Show. More than 11,000 tire, wheel and equipment buyers attended last year’s Show. The extensive, multi-channel marketing is targeting not only past attendees but also fresh new prospects that have never attended the SEMA Show.

“The key to relevant messaging is to provide useful content that will help buyer’s businesses succeed during these challenging times,” said Dan Hobgood, SEMA senior director of marketing. “For example, e-mail and direct mail to wheel and tire buyers include specific wheel and tire market and industry information, hot new products, exhibitors that have already signed up and education sessions that key in on that buyer group’s interests.”

Full-page color ads featuring the Wheel, Tire & Equipment section of the Show are already running in major industry trade publications, including Tire Review, Modern Tire Dealer and Tire Business. Banner ads are also running on trade websites.

From more than 100,000 direct mailers, e-mails and voicemails, the message is clear: There is no better place than the SEMA Show to find everything you need to work smarter and increase sales.

SEMA Webinar Simplifies Process of Obtaining Emissions Certification

SEMA recently hosted a webinar entitled “Meeting Federal and California Emissions Regulations Without Penalties and Fines.” It was presented by Jim McFarland, SEMA technical consultant, to clarify discrepancies and answer questions that have surrounded emissions certification standards.

SEMA recently hosted a webinar entitled “Meeting Federal and California Emissions Regulations Without Penalties and Fines,” which helped answer many of the questions regarding emissions regulations.

• Obtain required forms from CARB
• List vehicle brands, engine families and model years for which emissions-related products will be sold
• Complete forms and submit to CARB in El Monte, California
• Review “test letter” and select test facility
• Coordinate testing with emissions lab
• Be prepared to determine solutions to any emissions failure issues
• Upon completion of EO, utilize compliance in the proper fashion

SEMA has also produced the Black Book—a collection of information designed to give members a step-by-step guide in obtaining emissions certification.

For any questions on obtaining compliance status, refer to the SEMA Black Book or contact Jim McFarland at 901/377-1210. To download a PDF and audio version of this webinar as well as to access an archive of past webinars, visit SEMA webinar archives.

Top 10 New Exterior Accessory Products

SEMA used a new digital tracking method for the 2008 SEMA Show New Products Showcase, allowing buyers to scan product bar codes with an electronic fob and receive product details via printout or e-mail. The following are the Top 10 New Exterior Accessory Products scanned by attendees. See all of the products entered in the New Products Showcase at www.semadigital.com.

Big Time Auto Parts/Austin International Four-Channel Full-Version Vehicle Monitor System 310/513-8222 PN: BT-264
Tricplate.com Switchable License Plate Film 954/328-9507
Mr. Gasket/Prestolite Performance AnchorTrax Cargo Kit 216/688-8300 PN: 3375
Young Sung USA 3D Letter 213/427-2580 PN: ys3dcrm let
PlasmaGlow LED Headlight Strobes 480/222-0285 PN: 1065
Husky Liners Add-A-Vent 800-344-8759 or 620/221-226 PN: 1900
Nathan Airchime Over The Road Nathan Airchime Over the Road K5LA 860/423-4575 PN: TH30170
Mr. Gasket/Prestolite Performance AnchorTrax 6-Foot Truck Kit 216/688-8300 PN: 3370
Lund International Seamless Vent Visors 800/241-7219 PN: Varies by application
Applied Coatings International LLC ACI PaintFilm 918/283-2938

FAST FACTS

Dick Wells has received a Sparco High Performer Award for his dedication to the sport of drag racing. He was the editor of National Dragster in the ‘60s before moving on to work at Hot Rod magazine. Wells is responsible for creating the SEMA News publication as well as starting the National Street Rod Association magazine, Street Scene, and the Performance Warehouse Association’s newsletter.

PPG Industries appointed Steve Lampe vice president of purchasing and distribution. Lampe began his career with the company in 1978 as senior auditor. PPG Industries, Strongsville, OH; 440/572-2800.

EnerSys Energy Products Inc., makers of the Odyssey line of batteries, and Richard Childress Racing (RCR) reached an agreement that makes Odyssey the technical partner of RCR. The Odyssey logo will be included on the No. 7 Jack Daniel’s Chevrolet driven by Casey Mears. EnerSys Energy Products Inc., Reading, PA; 610/208-1991.

Hastings Manufacturing Co. named Paul Garzelloni the company’s senior applications engineer. Garzelloni has more than 30 years of experience in piston ring design, process and applications engineering. Hastings Manufacturing; 269/945-2491.

The Goodguys Rod & Custom Association announced that the 2010 season will kick off with a brand new event—the Goodguys 1st Spring Nationals, at WestWorld in Scottsdale, Arizona, March 12–14. The 2010 Goodguys event season will officially begin and close in Scottsdale at Westworld. Early-bird registration forms are available here. .

Kumho Tires has opened Tires 4U, an outlet in North America dedicated to the Kumho Tire global retail format. The store, which opened on June 3 in Buena Park, California, sells a full line of passenger, competition, light truck and SUV tires and includes mounting, balancing and alignment services. Kumho Tires, Rancho Cucamonga, CA; 800/445-8646.

Marx Group Advisors launched a new resources page on its website. The new resources provide information and advice to anyone undergoing a merger or acquisition. Marx Group Advisors, San Rafael, CA; 415/453-0844.

ATX Group hired Tom Metzger as senior vice president over the company’s global sales and account management functions. Metzger comes to ATX after a distinguished 24-year career at Harman Becker Automotive Systems, the automotive division of Harman International.

Snap-on Inc. was recognized as having the “Overall Best Power Tools in the United States” among its top competitors by Frost & Sullivan’s independent research, 2008 United States (U.S.) Automotive Technicians’ Choice: Evaluation of Automotive Tools. The company also celebrated the official grand opening of its new 15,000-square-foot “Innovation Works” facility in Kenosha, Wisconsin. Snap-on Inc., Conway, AR; 501/450-1500.

Advanstar Communications has launched its 2009 Top Shop Contests for Motor Age and Automotive Body Repair News (ABRN) magazines. The competition for Motor Age identifies the top 10 U.S. mechanical repair shops, and the ABRN competition, in its inaugural year, honors the top 10 collision-repair facilities. For complete information and registration, visit the registration page. Advanstar Communications, Woodland Hills, CA; 818/593-5000.

International Speedway Corp. promoted Craig Neeb to vice president of multi-channel marketing and chief information officer (CIO). Neeb, formerly the company’s managing director and CIO since 2000, is responsible for executing multi-channel marketing programs associated with International Speedway’s marketing strategy.

Steele Rubber Products has partnered with the East Lincoln Speedway to become the official sponsor of the Steele Rubber Products Limited Sportsman division. Steele Rubber Products, Denver, NC; 704/483-9343.

Indy 500 champion Helio Castroneves and his Penske Racing teammate Ryan Briscoe visited Snap-on’s Milwaukee manufacturing facility on May 29. Both drivers received a tour of the plant and signed autographs for the Snap-on associates who work at the facility.

ASA Tire Systems announced that response to the $1M Tire Dealer Bailout Program continues to grow. Nearly 250 independent tire dealerships nationwide have submitted grant requests and are currently being considered for funding. Dealers interested in applying for funding still have time and are invited to visit the company’s website, to fill out an application. ASA Tire Systems, Nashua, NH; 603/889-8700.

Robert Allen has joined the Firestone Industrial Products Company LLC Ride-Rite Division as regional sales manager. He has more than 15 years of experience in manufacturing sales, previously working as national sales manager at Danaher Corp. Firestone Industrial Products Company, Indianapolis, IN; 317/575-7000.

Predator Motor Corp. has added two new dealerships for its X-18 off-road vehicle. The new dealerships are Chaparral Motorsports in San Bernardino, California; and CBM Motorsports in Rancho Cucamonga, California. Predator Motor Corp., Temecula, CA; 951/699-4370.

Mitchell 1’s national training manager, Tim McDonnell, was named a 2009–2010 Automotive Management Institute (AMI) board member during the AMI board of trustees meeting recently held in Orlando, Florida. McDonnell has been Mitchell 1’s national training manager since 2004. Mitchell 1, Poway, CA; 858/391-5000.

Yakima was recognized by Subaru of America with the 2008 Subaru Supplier Excellence Award for overall excellence in product development, marketing, quality, sourcing, supply, transportation, warranty and accounting. Yakima, Beaverton, OR; 971/249-7536.

The San Bernardino Convention & Visitors Bureau, producer of the Stater Bros. Route 66 Rendezvous, has redesigned its website. New elements allow car enthusiasts to post photos, videos and comments from past years.

Brandware Public Relations was selected as the agency of record for Johnny Pag Motorcycles. Brandware is set to provide brand and product public relations services to support Johnny Pag’s mission of “getting more riderson the road.” Brandware Public Relations, Atlanta, GA; 770/649-0880.

Summit Racing Equipment updated its website. New enhancements include user-friendly shopping tools, a new look and more content and technical information. Summit Racing Equipment, Akron, OH; 330/630-0270.

SEMA News - August 2009

As the ad says, the SEMA Show truly is “Like a Pit Stop for Your Business.”

SEMA is employing highly targeted methods to attract tire and wheel buyers to this year’s SEMA Show. More than 11,000 tire, wheel and equipment buyers attended last year’s Show. The extensive, multi-channel marketing is targeting not only past attendees but also fresh new prospects that have never attended the SEMA Show.

“The key to relevant messaging is to provide useful content that will help buyer’s businesses succeed during these challenging times,” said Dan Hobgood, SEMA senior director of marketing. “For example, e-mail and direct mail to wheel and tire buyers include specific wheel and tire market and industry information, hot new products, exhibitors that have already signed up and education sessions that key in on that buyer group’s interests.”

Full-page color ads featuring the Wheel, Tire & Equipment section of the Show are already running in major industry trade publications, including Tire Review, Modern Tire Dealer and Tire Business. Banner ads are also running on trade websites.

From more than 100,000 direct mailers, e-mails and voicemails, the message is clear: There is no better place than the SEMA Show to find everything you need to work smarter and increase sales.

SEMA Webinar Simplifies Process of Obtaining Emissions Certification

SEMA recently hosted a webinar entitled “Meeting Federal and California Emissions Regulations Without Penalties and Fines.” It was presented by Jim McFarland, SEMA technical consultant, to clarify discrepancies and answer questions that have surrounded emissions certification standards.

SEMA recently hosted a webinar entitled “Meeting Federal and California Emissions Regulations Without Penalties and Fines,” which helped answer many of the questions regarding emissions regulations.

• Obtain required forms from CARB
• List vehicle brands, engine families and model years for which emissions-related products will be sold
• Complete forms and submit to CARB in El Monte, California
• Review “test letter” and select test facility
• Coordinate testing with emissions lab
• Be prepared to determine solutions to any emissions failure issues
• Upon completion of EO, utilize compliance in the proper fashion

SEMA has also produced the Black Book—a collection of information designed to give members a step-by-step guide in obtaining emissions certification.

For any questions on obtaining compliance status, refer to the SEMA Black Book or contact Jim McFarland at 901/377-1210. To download a PDF and audio version of this webinar as well as to access an archive of past webinars, visit SEMA webinar archives.

Top 10 New Exterior Accessory Products

SEMA used a new digital tracking method for the 2008 SEMA Show New Products Showcase, allowing buyers to scan product bar codes with an electronic fob and receive product details via printout or e-mail. The following are the Top 10 New Exterior Accessory Products scanned by attendees. See all of the products entered in the New Products Showcase at www.semadigital.com.

Big Time Auto Parts/Austin International Four-Channel Full-Version Vehicle Monitor System 310/513-8222 PN: BT-264
Tricplate.com Switchable License Plate Film 954/328-9507
Mr. Gasket/Prestolite Performance AnchorTrax Cargo Kit 216/688-8300 PN: 3375
Young Sung USA 3D Letter 213/427-2580 PN: ys3dcrm let
PlasmaGlow LED Headlight Strobes 480/222-0285 PN: 1065
Husky Liners Add-A-Vent 800-344-8759 or 620/221-226 PN: 1900
Nathan Airchime Over The Road Nathan Airchime Over the Road K5LA 860/423-4575 PN: TH30170
Mr. Gasket/Prestolite Performance AnchorTrax 6-Foot Truck Kit 216/688-8300 PN: 3370
Lund International Seamless Vent Visors 800/241-7219 PN: Varies by application
Applied Coatings International LLC ACI PaintFilm 918/283-2938

FAST FACTS

Dick Wells has received a Sparco High Performer Award for his dedication to the sport of drag racing. He was the editor of National Dragster in the ‘60s before moving on to work at Hot Rod magazine. Wells is responsible for creating the SEMA News publication as well as starting the National Street Rod Association magazine, Street Scene, and the Performance Warehouse Association’s newsletter.

PPG Industries appointed Steve Lampe vice president of purchasing and distribution. Lampe began his career with the company in 1978 as senior auditor. PPG Industries, Strongsville, OH; 440/572-2800.

EnerSys Energy Products Inc., makers of the Odyssey line of batteries, and Richard Childress Racing (RCR) reached an agreement that makes Odyssey the technical partner of RCR. The Odyssey logo will be included on the No. 7 Jack Daniel’s Chevrolet driven by Casey Mears. EnerSys Energy Products Inc., Reading, PA; 610/208-1991.

Hastings Manufacturing Co. named Paul Garzelloni the company’s senior applications engineer. Garzelloni has more than 30 years of experience in piston ring design, process and applications engineering. Hastings Manufacturing; 269/945-2491.

The Goodguys Rod & Custom Association announced that the 2010 season will kick off with a brand new event—the Goodguys 1st Spring Nationals, at WestWorld in Scottsdale, Arizona, March 12–14. The 2010 Goodguys event season will officially begin and close in Scottsdale at Westworld. Early-bird registration forms are available here. .

Kumho Tires has opened Tires 4U, an outlet in North America dedicated to the Kumho Tire global retail format. The store, which opened on June 3 in Buena Park, California, sells a full line of passenger, competition, light truck and SUV tires and includes mounting, balancing and alignment services. Kumho Tires, Rancho Cucamonga, CA; 800/445-8646.

Marx Group Advisors launched a new resources page on its website. The new resources provide information and advice to anyone undergoing a merger or acquisition. Marx Group Advisors, San Rafael, CA; 415/453-0844.

ATX Group hired Tom Metzger as senior vice president over the company’s global sales and account management functions. Metzger comes to ATX after a distinguished 24-year career at Harman Becker Automotive Systems, the automotive division of Harman International.

Snap-on Inc. was recognized as having the “Overall Best Power Tools in the United States” among its top competitors by Frost & Sullivan’s independent research, 2008 United States (U.S.) Automotive Technicians’ Choice: Evaluation of Automotive Tools. The company also celebrated the official grand opening of its new 15,000-square-foot “Innovation Works” facility in Kenosha, Wisconsin. Snap-on Inc., Conway, AR; 501/450-1500.

Advanstar Communications has launched its 2009 Top Shop Contests for Motor Age and Automotive Body Repair News (ABRN) magazines. The competition for Motor Age identifies the top 10 U.S. mechanical repair shops, and the ABRN competition, in its inaugural year, honors the top 10 collision-repair facilities. For complete information and registration, visit the registration page. Advanstar Communications, Woodland Hills, CA; 818/593-5000.

International Speedway Corp. promoted Craig Neeb to vice president of multi-channel marketing and chief information officer (CIO). Neeb, formerly the company’s managing director and CIO since 2000, is responsible for executing multi-channel marketing programs associated with International Speedway’s marketing strategy.

Steele Rubber Products has partnered with the East Lincoln Speedway to become the official sponsor of the Steele Rubber Products Limited Sportsman division. Steele Rubber Products, Denver, NC; 704/483-9343.

Indy 500 champion Helio Castroneves and his Penske Racing teammate Ryan Briscoe visited Snap-on’s Milwaukee manufacturing facility on May 29. Both drivers received a tour of the plant and signed autographs for the Snap-on associates who work at the facility.

ASA Tire Systems announced that response to the $1M Tire Dealer Bailout Program continues to grow. Nearly 250 independent tire dealerships nationwide have submitted grant requests and are currently being considered for funding. Dealers interested in applying for funding still have time and are invited to visit the company’s website, to fill out an application. ASA Tire Systems, Nashua, NH; 603/889-8700.

Robert Allen has joined the Firestone Industrial Products Company LLC Ride-Rite Division as regional sales manager. He has more than 15 years of experience in manufacturing sales, previously working as national sales manager at Danaher Corp. Firestone Industrial Products Company, Indianapolis, IN; 317/575-7000.

Predator Motor Corp. has added two new dealerships for its X-18 off-road vehicle. The new dealerships are Chaparral Motorsports in San Bernardino, California; and CBM Motorsports in Rancho Cucamonga, California. Predator Motor Corp., Temecula, CA; 951/699-4370.

Mitchell 1’s national training manager, Tim McDonnell, was named a 2009–2010 Automotive Management Institute (AMI) board member during the AMI board of trustees meeting recently held in Orlando, Florida. McDonnell has been Mitchell 1’s national training manager since 2004. Mitchell 1, Poway, CA; 858/391-5000.

Yakima was recognized by Subaru of America with the 2008 Subaru Supplier Excellence Award for overall excellence in product development, marketing, quality, sourcing, supply, transportation, warranty and accounting. Yakima, Beaverton, OR; 971/249-7536.

The San Bernardino Convention & Visitors Bureau, producer of the Stater Bros. Route 66 Rendezvous, has redesigned its website. New elements allow car enthusiasts to post photos, videos and comments from past years.

Brandware Public Relations was selected as the agency of record for Johnny Pag Motorcycles. Brandware is set to provide brand and product public relations services to support Johnny Pag’s mission of “getting more riderson the road.” Brandware Public Relations, Atlanta, GA; 770/649-0880.

Summit Racing Equipment updated its website. New enhancements include user-friendly shopping tools, a new look and more content and technical information. Summit Racing Equipment, Akron, OH; 330/630-0270.

SEMA News - August 2009

The images and information provided in “Spy Photos” are supplied by the spy shooters at Brenda Priddy & Co. “Spy Photos” are included each week in SEMA eNews, the association’s electronic newsletter. To receive your copy of SEMA eNews, e-mail enews@sema.org.

Honda Crosstour When it Hits: Production will begin in September at Honda’s factory in East Liberty, Ohio. What Priddy Says: The CUV, called the Crosstour, is based on a modified Accord chassis and will offer Honda’s new VTM-4 all-wheel-drive option. Powertrains are still an unknown, but the 2.3L four-cylinder turbo from the Acura RDX is one likely choice.
BMW M7 When it Hits: According to Priddy, the M7 to debut later this year. What Priddy Says: BMW will fit the new M with an aluminum hood for weight savings and improved handling. Under that hood, expect the dual-turbo V8 used in the current X6 or perhaps the 5.0L V10 from the M5 and M6. Either engine should be good for 550-600 hp, a marked upgrade from the 407 hp currently offered in the 750i as well as the 507hp unit powering the Alpina B7.
Dodge Ram Hybrid When it Hits: A diesel-powered Dodge Ram 1500 has been delayed, but the hybrid Hemi version is definitely happening for 2010. What Priddy Says: The two-mode hybrid powertrain was co-developed with GM, Mercedes and BMW and is the same setup found in the Chevrolet Silverado and GMC Sierra gas-electric hybrid pickups. The electrically variable two-mode transmission, supplied by GM, houses two 60kW electric motors that can power the truck on their own up to about 25 mph, depending on driving conditions.
Chevy Viva When it Hits: GM’s forthcoming small car offering is currently scheduled to arrive sometime in 2010. What Priddy Says: Insiders and enthusiasts have dubbed it both the next-gneration Chevy Aveo or the Chevy Lecetti, but recent internet chatter has pegged it as the Chevy Viva, reported to be an American-built GM answer to the Ford Fiesta.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

SEMA News - August 2009

The images and information provided in “Spy Photos” are supplied by the spy shooters at Brenda Priddy & Co. “Spy Photos” are included each week in SEMA eNews, the association’s electronic newsletter. To receive your copy of SEMA eNews, e-mail enews@sema.org.

Honda Crosstour When it Hits: Production will begin in September at Honda’s factory in East Liberty, Ohio. What Priddy Says: The CUV, called the Crosstour, is based on a modified Accord chassis and will offer Honda’s new VTM-4 all-wheel-drive option. Powertrains are still an unknown, but the 2.3L four-cylinder turbo from the Acura RDX is one likely choice.
BMW M7 When it Hits: According to Priddy, the M7 to debut later this year. What Priddy Says: BMW will fit the new M with an aluminum hood for weight savings and improved handling. Under that hood, expect the dual-turbo V8 used in the current X6 or perhaps the 5.0L V10 from the M5 and M6. Either engine should be good for 550-600 hp, a marked upgrade from the 407 hp currently offered in the 750i as well as the 507hp unit powering the Alpina B7.
Dodge Ram Hybrid When it Hits: A diesel-powered Dodge Ram 1500 has been delayed, but the hybrid Hemi version is definitely happening for 2010. What Priddy Says: The two-mode hybrid powertrain was co-developed with GM, Mercedes and BMW and is the same setup found in the Chevrolet Silverado and GMC Sierra gas-electric hybrid pickups. The electrically variable two-mode transmission, supplied by GM, houses two 60kW electric motors that can power the truck on their own up to about 25 mph, depending on driving conditions.
Chevy Viva When it Hits: GM’s forthcoming small car offering is currently scheduled to arrive sometime in 2010. What Priddy Says: Insiders and enthusiasts have dubbed it both the next-gneration Chevy Aveo or the Chevy Lecetti, but recent internet chatter has pegged it as the Chevy Viva, reported to be an American-built GM answer to the Ford Fiesta.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

SEMA News - August 2009

The images and information provided in “Spy Photos” are supplied by the spy shooters at Brenda Priddy & Co. “Spy Photos” are included each week in SEMA eNews, the association’s electronic newsletter. To receive your copy of SEMA eNews, e-mail enews@sema.org.

Honda Crosstour When it Hits: Production will begin in September at Honda’s factory in East Liberty, Ohio. What Priddy Says: The CUV, called the Crosstour, is based on a modified Accord chassis and will offer Honda’s new VTM-4 all-wheel-drive option. Powertrains are still an unknown, but the 2.3L four-cylinder turbo from the Acura RDX is one likely choice.
BMW M7 When it Hits: According to Priddy, the M7 to debut later this year. What Priddy Says: BMW will fit the new M with an aluminum hood for weight savings and improved handling. Under that hood, expect the dual-turbo V8 used in the current X6 or perhaps the 5.0L V10 from the M5 and M6. Either engine should be good for 550-600 hp, a marked upgrade from the 407 hp currently offered in the 750i as well as the 507hp unit powering the Alpina B7.
Dodge Ram Hybrid When it Hits: A diesel-powered Dodge Ram 1500 has been delayed, but the hybrid Hemi version is definitely happening for 2010. What Priddy Says: The two-mode hybrid powertrain was co-developed with GM, Mercedes and BMW and is the same setup found in the Chevrolet Silverado and GMC Sierra gas-electric hybrid pickups. The electrically variable two-mode transmission, supplied by GM, houses two 60kW electric motors that can power the truck on their own up to about 25 mph, depending on driving conditions.
Chevy Viva When it Hits: GM’s forthcoming small car offering is currently scheduled to arrive sometime in 2010. What Priddy Says: Insiders and enthusiasts have dubbed it both the next-gneration Chevy Aveo or the Chevy Lecetti, but recent internet chatter has pegged it as the Chevy Viva, reported to be an American-built GM answer to the Ford Fiesta.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

SEMA News - August 2009

The images and information provided in “Spy Photos” are supplied by the spy shooters at Brenda Priddy & Co. “Spy Photos” are included each week in SEMA eNews, the association’s electronic newsletter. To receive your copy of SEMA eNews, e-mail enews@sema.org.

Honda Crosstour When it Hits: Production will begin in September at Honda’s factory in East Liberty, Ohio. What Priddy Says: The CUV, called the Crosstour, is based on a modified Accord chassis and will offer Honda’s new VTM-4 all-wheel-drive option. Powertrains are still an unknown, but the 2.3L four-cylinder turbo from the Acura RDX is one likely choice.
BMW M7 When it Hits: According to Priddy, the M7 to debut later this year. What Priddy Says: BMW will fit the new M with an aluminum hood for weight savings and improved handling. Under that hood, expect the dual-turbo V8 used in the current X6 or perhaps the 5.0L V10 from the M5 and M6. Either engine should be good for 550-600 hp, a marked upgrade from the 407 hp currently offered in the 750i as well as the 507hp unit powering the Alpina B7.
Dodge Ram Hybrid When it Hits: A diesel-powered Dodge Ram 1500 has been delayed, but the hybrid Hemi version is definitely happening for 2010. What Priddy Says: The two-mode hybrid powertrain was co-developed with GM, Mercedes and BMW and is the same setup found in the Chevrolet Silverado and GMC Sierra gas-electric hybrid pickups. The electrically variable two-mode transmission, supplied by GM, houses two 60kW electric motors that can power the truck on their own up to about 25 mph, depending on driving conditions.
Chevy Viva When it Hits: GM’s forthcoming small car offering is currently scheduled to arrive sometime in 2010. What Priddy Says: Insiders and enthusiasts have dubbed it both the next-gneration Chevy Aveo or the Chevy Lecetti, but recent internet chatter has pegged it as the Chevy Viva, reported to be an American-built GM answer to the Ford Fiesta.

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

SEMA News - August 2009

LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

California

Emissions Tests

SEMA-opposed legislation to require annual smog check inspections for vehicles 15 years old and older was held in the California Assembly Appropriations Committee and is essentially dead for the year. The bill would also have required that funds generated through the additional inspection fees be deposited into an account that could have been used to scrap older cars. Pre-1976 motor vehicles would have remained exempt under the measure. SEMA launched a statewide lobbying campaign to oppose the bill.

Scrappage

SEMA is opposing a California Air Resources Board (CARB) proposal to spend roughly $30 million annually to augment the state’s existing vehicle scrappage program. The proposal would provide incentives for vehicles not currently eligible under the Consumer Assistance Program by removing the existing requirements that vehicles be subject to and fail smog check to participate. CARB is specifically targeting for scrappage pre-1976 vehicles that are not currently required to undergo smog check inspections. According to CARB, allowing vehicles that are not currently undergoing registration or that have passed their smog check to participate greatly expands the vehicle population that can be retired. Participants would receive $1,000 per vehicle or $1,500 per vehicle if they meet low-income requirements. The proposal would also establish a pilot voucher program in the south coast and San Joaquin Valley air basins that targets the highest-emitting vehicles and requires their replacement with newer, cleaner vehicles. Consumers would retire their vehicles at participating dismantlers, receiving an immediate compensation of $1,000 to $1,500 for vehicle retirement. Consumers could then redeem their vouchers at participating car dealerships toward the purchase of replacement vehicles. CARB is proposing that the voucher compensation be $2,000 or $2,500 per vehicle, depending on income level.

Michigan

Inoperable Vehicles

A version of SEMA-model legislation has been reintroduced in the Michigan State Legislature that would outlaw local zoning ordinances that prohibit the hobby of collecting and restoring motor vehicles. Junked, wrecked or inoperable vehicles (including parts cars) stored on private property could still require screening from public view by fencing, vegetation or other means. The bill has been referred to the Senate Committee on Local, Urban and State Affairs.

Ohio

Street Rods/Customs

SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles has been reintroduced in the Ohio State Legislature. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble.

Oregon

Aftermarket Parts

The Oregon House of Representatives approved an alternative to legislation that originally sought to prohibit the sale and distribution of aftermarket motor vehicle parts if alternatives are available that “decrease greenhouse gas emissions from motor vehicles.” Under the alternative, negotiated between SEMA and the Oregon Department of Environmental Quality, the bill would only give the department authority to adopt the present California certification process for aftermarket emissions-related parts, allowing parts manufacturers to meet one uniform standard rather than a patchwork of multiple state standards. The amended legislation will also incorporate a California law that requires state regulators to develop a tire fuel-efficiency program for passenger-car and light-truck replacement tires. As in California, Oregon will include a SEMA-drafted provision to exempt limited-production tires (15,000 or less annually), deep-tread snow tires, limited-use spares, motorcycle tires and tires manufactured for use on off-road vehicles. The bill is now being considered by the Oregon Senate.

Texas

Street Rods/Customs

SEMA-model legislation to create a vehicle registration classification for street rods, custom vehicles and replicas and provide for special license plates for these vehicles did not receive a vote by the Texas House of Representatives before the legislature’s crossover deadline. The crossover deadline requires legislation to be approved by a certain date by at least one of the legislative chambers, House or Senate. Bills must be approved by both the House and Senate in order to be sent to the governor and enacted into law.

FEDERAL UPDATE

Vehicle Scrappage

SEMA convinced lawmakers to include a provision that excludes vehicles of model-year 1983 and earlier from the scope of the scrappage program.

After months of contentious debate, Congress passed “cash for clunkers” legislation that will pay consumers to scrap cars and trucks that get 18 miles per gallon or less in exchange for a cash voucher to buy a new car. The one-year program is primarily intended to spur car sales, but lawmakers insisted on including a scrappage component. Consumers will receive either $3,500 or $4,500, depending on the fuel economy improvement of the new vehicle. SEMA convinced lawmakers to include a provision that excludes vehicles of model-year 1983 and earlier from the scope of the scrappage program. This provision serves to safeguard vehicles that may possess unique historic or aesthetic value qualities and are irreplaceable to hobbyists as a source of restoration parts. The law allows all parts to be recycled except the engine. SEMA and other aftermarket associations convinced lawmakers to permit the drivetrain to be recycled if the transmission, driveshaft or rear end are sold as separate parts. The vehicle scrappage program primarily targets SUVs, pickups and minivans, since most passenger cars manufactured during the last 25 years get more than the 18 mpg combined city/highway requirement. SEMA maintained that a better environmental approach would have been to support vehicle repairs, installation of specialty equipment to reduce emissions and increase fuel economy, and engine recycling.

Fuel Economy and CO2 Emissions

The Obama administration will set tough, new fuel-economy standards for model-year (MY) 2012-2016 cars and trucks and will simultaneously reduce carbon dioxide (CO2) emissions through a national standard. The decision ends years of debate between California, the federal government and the automakers over who can regulate CO2 emissions. Fuel economy and CO2 emissions are directly related, since CO2 is released in proportion to the amount of carbon-based fuel that is burned. In 2007, the Bush administration blocked implementation of a California CO2 rule that had been adopted by 13 other states. California will now rewrite its CO2 rule to match the national standard. The National Highway Traffic Safety Administration (NHTSA) will set Corporate Average Fuel Economy (CAFE) standards for MY 2012-2016 vehicles that nearly match CO2 emission standards adopted by California. The EPA will also establish corresponding CO2 emissions standards using its authority under the Clean Air Act. The average CAFE rating will be 35.5 mpg in 2016, based on a combined 39 mpg rating for passenger cars and 30 mpg for light trucks. The EPA will set a CO2 emissions standard of 250 grams per mile for vehicles sold in 2016, roughly equivalent to 35.5 mpg.

Health Care Reform

SEMA is working in an alliance with the National Federation of Independent Business and the Small Business Coalition for Affordable Healthcare to enact legislation that will reduce skyrocketing premiums and protect small companies from costly mandates.

Small-Business Credit Relief

The U.S. Small Business Administration will provide a 100% guarantee on America’s Recovery Capital (ARC) loans, a $255 million program established under the Recovery Act of 2009. The program will provide interest-free, deferred-payment loans of up to $35,000 to established for-profit small businesses that need short-term help making principal and interest payments on existing debt such as credit card obligations, capital leases and notes payable to vendors/suppliers. Repayment of the loan principal begins 12 months after the final disbursement and extends over a five-year period. The program will last until September 2010 or until the $255 million has been spent, whichever comes first. ARC loans are provided by commercial lenders, not the SBA.

OHV Access to Public Lands

A House subcommittee held a hearing on a SEMA-opposed bill called the Northern Rockies Ecosystem Protection Act, which would designate as wilderness 19 million acres of land in Idaho, Montana, Wyoming, Oregon and Washington. By law, roads and motorized vehicles are generally prohibited in wilderness areas. The issue is consequential to SEMA members, since off-roaders would have less riding areas in the region and potentially less demand for off-highway (OHV) equipment. SEMA contends that the legislation is overly broad in scope and does not reflect the views of local communities and stakeholders on how the land should be managed.

SEMA News - August 2009

LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

California

Emissions Tests

SEMA-opposed legislation to require annual smog check inspections for vehicles 15 years old and older was held in the California Assembly Appropriations Committee and is essentially dead for the year. The bill would also have required that funds generated through the additional inspection fees be deposited into an account that could have been used to scrap older cars. Pre-1976 motor vehicles would have remained exempt under the measure. SEMA launched a statewide lobbying campaign to oppose the bill.

Scrappage

SEMA is opposing a California Air Resources Board (CARB) proposal to spend roughly $30 million annually to augment the state’s existing vehicle scrappage program. The proposal would provide incentives for vehicles not currently eligible under the Consumer Assistance Program by removing the existing requirements that vehicles be subject to and fail smog check to participate. CARB is specifically targeting for scrappage pre-1976 vehicles that are not currently required to undergo smog check inspections. According to CARB, allowing vehicles that are not currently undergoing registration or that have passed their smog check to participate greatly expands the vehicle population that can be retired. Participants would receive $1,000 per vehicle or $1,500 per vehicle if they meet low-income requirements. The proposal would also establish a pilot voucher program in the south coast and San Joaquin Valley air basins that targets the highest-emitting vehicles and requires their replacement with newer, cleaner vehicles. Consumers would retire their vehicles at participating dismantlers, receiving an immediate compensation of $1,000 to $1,500 for vehicle retirement. Consumers could then redeem their vouchers at participating car dealerships toward the purchase of replacement vehicles. CARB is proposing that the voucher compensation be $2,000 or $2,500 per vehicle, depending on income level.

Michigan

Inoperable Vehicles

A version of SEMA-model legislation has been reintroduced in the Michigan State Legislature that would outlaw local zoning ordinances that prohibit the hobby of collecting and restoring motor vehicles. Junked, wrecked or inoperable vehicles (including parts cars) stored on private property could still require screening from public view by fencing, vegetation or other means. The bill has been referred to the Senate Committee on Local, Urban and State Affairs.

Ohio

Street Rods/Customs

SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles has been reintroduced in the Ohio State Legislature. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble.

Oregon

Aftermarket Parts

The Oregon House of Representatives approved an alternative to legislation that originally sought to prohibit the sale and distribution of aftermarket motor vehicle parts if alternatives are available that “decrease greenhouse gas emissions from motor vehicles.” Under the alternative, negotiated between SEMA and the Oregon Department of Environmental Quality, the bill would only give the department authority to adopt the present California certification process for aftermarket emissions-related parts, allowing parts manufacturers to meet one uniform standard rather than a patchwork of multiple state standards. The amended legislation will also incorporate a California law that requires state regulators to develop a tire fuel-efficiency program for passenger-car and light-truck replacement tires. As in California, Oregon will include a SEMA-drafted provision to exempt limited-production tires (15,000 or less annually), deep-tread snow tires, limited-use spares, motorcycle tires and tires manufactured for use on off-road vehicles. The bill is now being considered by the Oregon Senate.

Texas

Street Rods/Customs

SEMA-model legislation to create a vehicle registration classification for street rods, custom vehicles and replicas and provide for special license plates for these vehicles did not receive a vote by the Texas House of Representatives before the legislature’s crossover deadline. The crossover deadline requires legislation to be approved by a certain date by at least one of the legislative chambers, House or Senate. Bills must be approved by both the House and Senate in order to be sent to the governor and enacted into law.

FEDERAL UPDATE

Vehicle Scrappage

SEMA convinced lawmakers to include a provision that excludes vehicles of model-year 1983 and earlier from the scope of the scrappage program.

After months of contentious debate, Congress passed “cash for clunkers” legislation that will pay consumers to scrap cars and trucks that get 18 miles per gallon or less in exchange for a cash voucher to buy a new car. The one-year program is primarily intended to spur car sales, but lawmakers insisted on including a scrappage component. Consumers will receive either $3,500 or $4,500, depending on the fuel economy improvement of the new vehicle. SEMA convinced lawmakers to include a provision that excludes vehicles of model-year 1983 and earlier from the scope of the scrappage program. This provision serves to safeguard vehicles that may possess unique historic or aesthetic value qualities and are irreplaceable to hobbyists as a source of restoration parts. The law allows all parts to be recycled except the engine. SEMA and other aftermarket associations convinced lawmakers to permit the drivetrain to be recycled if the transmission, driveshaft or rear end are sold as separate parts. The vehicle scrappage program primarily targets SUVs, pickups and minivans, since most passenger cars manufactured during the last 25 years get more than the 18 mpg combined city/highway requirement. SEMA maintained that a better environmental approach would have been to support vehicle repairs, installation of specialty equipment to reduce emissions and increase fuel economy, and engine recycling.

Fuel Economy and CO2 Emissions

The Obama administration will set tough, new fuel-economy standards for model-year (MY) 2012-2016 cars and trucks and will simultaneously reduce carbon dioxide (CO2) emissions through a national standard. The decision ends years of debate between California, the federal government and the automakers over who can regulate CO2 emissions. Fuel economy and CO2 emissions are directly related, since CO2 is released in proportion to the amount of carbon-based fuel that is burned. In 2007, the Bush administration blocked implementation of a California CO2 rule that had been adopted by 13 other states. California will now rewrite its CO2 rule to match the national standard. The National Highway Traffic Safety Administration (NHTSA) will set Corporate Average Fuel Economy (CAFE) standards for MY 2012-2016 vehicles that nearly match CO2 emission standards adopted by California. The EPA will also establish corresponding CO2 emissions standards using its authority under the Clean Air Act. The average CAFE rating will be 35.5 mpg in 2016, based on a combined 39 mpg rating for passenger cars and 30 mpg for light trucks. The EPA will set a CO2 emissions standard of 250 grams per mile for vehicles sold in 2016, roughly equivalent to 35.5 mpg.

Health Care Reform

SEMA is working in an alliance with the National Federation of Independent Business and the Small Business Coalition for Affordable Healthcare to enact legislation that will reduce skyrocketing premiums and protect small companies from costly mandates.

Small-Business Credit Relief

The U.S. Small Business Administration will provide a 100% guarantee on America’s Recovery Capital (ARC) loans, a $255 million program established under the Recovery Act of 2009. The program will provide interest-free, deferred-payment loans of up to $35,000 to established for-profit small businesses that need short-term help making principal and interest payments on existing debt such as credit card obligations, capital leases and notes payable to vendors/suppliers. Repayment of the loan principal begins 12 months after the final disbursement and extends over a five-year period. The program will last until September 2010 or until the $255 million has been spent, whichever comes first. ARC loans are provided by commercial lenders, not the SBA.

OHV Access to Public Lands

A House subcommittee held a hearing on a SEMA-opposed bill called the Northern Rockies Ecosystem Protection Act, which would designate as wilderness 19 million acres of land in Idaho, Montana, Wyoming, Oregon and Washington. By law, roads and motorized vehicles are generally prohibited in wilderness areas. The issue is consequential to SEMA members, since off-roaders would have less riding areas in the region and potentially less demand for off-highway (OHV) equipment. SEMA contends that the legislation is overly broad in scope and does not reflect the views of local communities and stakeholders on how the land should be managed.

SEMA News - August 2009

LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

California

Emissions Tests

SEMA-opposed legislation to require annual smog check inspections for vehicles 15 years old and older was held in the California Assembly Appropriations Committee and is essentially dead for the year. The bill would also have required that funds generated through the additional inspection fees be deposited into an account that could have been used to scrap older cars. Pre-1976 motor vehicles would have remained exempt under the measure. SEMA launched a statewide lobbying campaign to oppose the bill.

Scrappage

SEMA is opposing a California Air Resources Board (CARB) proposal to spend roughly $30 million annually to augment the state’s existing vehicle scrappage program. The proposal would provide incentives for vehicles not currently eligible under the Consumer Assistance Program by removing the existing requirements that vehicles be subject to and fail smog check to participate. CARB is specifically targeting for scrappage pre-1976 vehicles that are not currently required to undergo smog check inspections. According to CARB, allowing vehicles that are not currently undergoing registration or that have passed their smog check to participate greatly expands the vehicle population that can be retired. Participants would receive $1,000 per vehicle or $1,500 per vehicle if they meet low-income requirements. The proposal would also establish a pilot voucher program in the south coast and San Joaquin Valley air basins that targets the highest-emitting vehicles and requires their replacement with newer, cleaner vehicles. Consumers would retire their vehicles at participating dismantlers, receiving an immediate compensation of $1,000 to $1,500 for vehicle retirement. Consumers could then redeem their vouchers at participating car dealerships toward the purchase of replacement vehicles. CARB is proposing that the voucher compensation be $2,000 or $2,500 per vehicle, depending on income level.

Michigan

Inoperable Vehicles

A version of SEMA-model legislation has been reintroduced in the Michigan State Legislature that would outlaw local zoning ordinances that prohibit the hobby of collecting and restoring motor vehicles. Junked, wrecked or inoperable vehicles (including parts cars) stored on private property could still require screening from public view by fencing, vegetation or other means. The bill has been referred to the Senate Committee on Local, Urban and State Affairs.

Ohio

Street Rods/Customs

SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles has been reintroduced in the Ohio State Legislature. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble.

Oregon

Aftermarket Parts

The Oregon House of Representatives approved an alternative to legislation that originally sought to prohibit the sale and distribution of aftermarket motor vehicle parts if alternatives are available that “decrease greenhouse gas emissions from motor vehicles.” Under the alternative, negotiated between SEMA and the Oregon Department of Environmental Quality, the bill would only give the department authority to adopt the present California certification process for aftermarket emissions-related parts, allowing parts manufacturers to meet one uniform standard rather than a patchwork of multiple state standards. The amended legislation will also incorporate a California law that requires state regulators to develop a tire fuel-efficiency program for passenger-car and light-truck replacement tires. As in California, Oregon will include a SEMA-drafted provision to exempt limited-production tires (15,000 or less annually), deep-tread snow tires, limited-use spares, motorcycle tires and tires manufactured for use on off-road vehicles. The bill is now being considered by the Oregon Senate.

Texas

Street Rods/Customs

SEMA-model legislation to create a vehicle registration classification for street rods, custom vehicles and replicas and provide for special license plates for these vehicles did not receive a vote by the Texas House of Representatives before the legislature’s crossover deadline. The crossover deadline requires legislation to be approved by a certain date by at least one of the legislative chambers, House or Senate. Bills must be approved by both the House and Senate in order to be sent to the governor and enacted into law.

FEDERAL UPDATE

Vehicle Scrappage

SEMA convinced lawmakers to include a provision that excludes vehicles of model-year 1983 and earlier from the scope of the scrappage program.

After months of contentious debate, Congress passed “cash for clunkers” legislation that will pay consumers to scrap cars and trucks that get 18 miles per gallon or less in exchange for a cash voucher to buy a new car. The one-year program is primarily intended to spur car sales, but lawmakers insisted on including a scrappage component. Consumers will receive either $3,500 or $4,500, depending on the fuel economy improvement of the new vehicle. SEMA convinced lawmakers to include a provision that excludes vehicles of model-year 1983 and earlier from the scope of the scrappage program. This provision serves to safeguard vehicles that may possess unique historic or aesthetic value qualities and are irreplaceable to hobbyists as a source of restoration parts. The law allows all parts to be recycled except the engine. SEMA and other aftermarket associations convinced lawmakers to permit the drivetrain to be recycled if the transmission, driveshaft or rear end are sold as separate parts. The vehicle scrappage program primarily targets SUVs, pickups and minivans, since most passenger cars manufactured during the last 25 years get more than the 18 mpg combined city/highway requirement. SEMA maintained that a better environmental approach would have been to support vehicle repairs, installation of specialty equipment to reduce emissions and increase fuel economy, and engine recycling.

Fuel Economy and CO2 Emissions

The Obama administration will set tough, new fuel-economy standards for model-year (MY) 2012-2016 cars and trucks and will simultaneously reduce carbon dioxide (CO2) emissions through a national standard. The decision ends years of debate between California, the federal government and the automakers over who can regulate CO2 emissions. Fuel economy and CO2 emissions are directly related, since CO2 is released in proportion to the amount of carbon-based fuel that is burned. In 2007, the Bush administration blocked implementation of a California CO2 rule that had been adopted by 13 other states. California will now rewrite its CO2 rule to match the national standard. The National Highway Traffic Safety Administration (NHTSA) will set Corporate Average Fuel Economy (CAFE) standards for MY 2012-2016 vehicles that nearly match CO2 emission standards adopted by California. The EPA will also establish corresponding CO2 emissions standards using its authority under the Clean Air Act. The average CAFE rating will be 35.5 mpg in 2016, based on a combined 39 mpg rating for passenger cars and 30 mpg for light trucks. The EPA will set a CO2 emissions standard of 250 grams per mile for vehicles sold in 2016, roughly equivalent to 35.5 mpg.

Health Care Reform

SEMA is working in an alliance with the National Federation of Independent Business and the Small Business Coalition for Affordable Healthcare to enact legislation that will reduce skyrocketing premiums and protect small companies from costly mandates.

Small-Business Credit Relief

The U.S. Small Business Administration will provide a 100% guarantee on America’s Recovery Capital (ARC) loans, a $255 million program established under the Recovery Act of 2009. The program will provide interest-free, deferred-payment loans of up to $35,000 to established for-profit small businesses that need short-term help making principal and interest payments on existing debt such as credit card obligations, capital leases and notes payable to vendors/suppliers. Repayment of the loan principal begins 12 months after the final disbursement and extends over a five-year period. The program will last until September 2010 or until the $255 million has been spent, whichever comes first. ARC loans are provided by commercial lenders, not the SBA.

OHV Access to Public Lands

A House subcommittee held a hearing on a SEMA-opposed bill called the Northern Rockies Ecosystem Protection Act, which would designate as wilderness 19 million acres of land in Idaho, Montana, Wyoming, Oregon and Washington. By law, roads and motorized vehicles are generally prohibited in wilderness areas. The issue is consequential to SEMA members, since off-roaders would have less riding areas in the region and potentially less demand for off-highway (OHV) equipment. SEMA contends that the legislation is overly broad in scope and does not reflect the views of local communities and stakeholders on how the land should be managed.

SEMA News - August 2009

LEGISLATIVE AND TECHNICAL AFFAIRS

By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

California

Emissions Tests

SEMA-opposed legislation to require annual smog check inspections for vehicles 15 years old and older was held in the California Assembly Appropriations Committee and is essentially dead for the year. The bill would also have required that funds generated through the additional inspection fees be deposited into an account that could have been used to scrap older cars. Pre-1976 motor vehicles would have remained exempt under the measure. SEMA launched a statewide lobbying campaign to oppose the bill.

Scrappage

SEMA is opposing a California Air Resources Board (CARB) proposal to spend roughly $30 million annually to augment the state’s existing vehicle scrappage program. The proposal would provide incentives for vehicles not currently eligible under the Consumer Assistance Program by removing the existing requirements that vehicles be subject to and fail smog check to participate. CARB is specifically targeting for scrappage pre-1976 vehicles that are not currently required to undergo smog check inspections. According to CARB, allowing vehicles that are not currently undergoing registration or that have passed their smog check to participate greatly expands the vehicle population that can be retired. Participants would receive $1,000 per vehicle or $1,500 per vehicle if they meet low-income requirements. The proposal would also establish a pilot voucher program in the south coast and San Joaquin Valley air basins that targets the highest-emitting vehicles and requires their replacement with newer, cleaner vehicles. Consumers would retire their vehicles at participating dismantlers, receiving an immediate compensation of $1,000 to $1,500 for vehicle retirement. Consumers could then redeem their vouchers at participating car dealerships toward the purchase of replacement vehicles. CARB is proposing that the voucher compensation be $2,000 or $2,500 per vehicle, depending on income level.

Michigan

Inoperable Vehicles

A version of SEMA-model legislation has been reintroduced in the Michigan State Legislature that would outlaw local zoning ordinances that prohibit the hobby of collecting and restoring motor vehicles. Junked, wrecked or inoperable vehicles (including parts cars) stored on private property could still require screening from public view by fencing, vegetation or other means. The bill has been referred to the Senate Committee on Local, Urban and State Affairs.

Ohio

Street Rods/Customs

SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles has been reintroduced in the Ohio State Legislature. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble.

Oregon

Aftermarket Parts

The Oregon House of Representatives approved an alternative to legislation that originally sought to prohibit the sale and distribution of aftermarket motor vehicle parts if alternatives are available that “decrease greenhouse gas emissions from motor vehicles.” Under the alternative, negotiated between SEMA and the Oregon Department of Environmental Quality, the bill would only give the department authority to adopt the present California certification process for aftermarket emissions-related parts, allowing parts manufacturers to meet one uniform standard rather than a patchwork of multiple state standards. The amended legislation will also incorporate a California law that requires state regulators to develop a tire fuel-efficiency program for passenger-car and light-truck replacement tires. As in California, Oregon will include a SEMA-drafted provision to exempt limited-production tires (15,000 or less annually), deep-tread snow tires, limited-use spares, motorcycle tires and tires manufactured for use on off-road vehicles. The bill is now being considered by the Oregon Senate.

Texas

Street Rods/Customs

SEMA-model legislation to create a vehicle registration classification for street rods, custom vehicles and replicas and provide for special license plates for these vehicles did not receive a vote by the Texas House of Representatives before the legislature’s crossover deadline. The crossover deadline requires legislation to be approved by a certain date by at least one of the legislative chambers, House or Senate. Bills must be approved by both the House and Senate in order to be sent to the governor and enacted into law.

FEDERAL UPDATE

Vehicle Scrappage

SEMA convinced lawmakers to include a provision that excludes vehicles of model-year 1983 and earlier from the scope of the scrappage program.

After months of contentious debate, Congress passed “cash for clunkers” legislation that will pay consumers to scrap cars and trucks that get 18 miles per gallon or less in exchange for a cash voucher to buy a new car. The one-year program is primarily intended to spur car sales, but lawmakers insisted on including a scrappage component. Consumers will receive either $3,500 or $4,500, depending on the fuel economy improvement of the new vehicle. SEMA convinced lawmakers to include a provision that excludes vehicles of model-year 1983 and earlier from the scope of the scrappage program. This provision serves to safeguard vehicles that may possess unique historic or aesthetic value qualities and are irreplaceable to hobbyists as a source of restoration parts. The law allows all parts to be recycled except the engine. SEMA and other aftermarket associations convinced lawmakers to permit the drivetrain to be recycled if the transmission, driveshaft or rear end are sold as separate parts. The vehicle scrappage program primarily targets SUVs, pickups and minivans, since most passenger cars manufactured during the last 25 years get more than the 18 mpg combined city/highway requirement. SEMA maintained that a better environmental approach would have been to support vehicle repairs, installation of specialty equipment to reduce emissions and increase fuel economy, and engine recycling.

Fuel Economy and CO2 Emissions

The Obama administration will set tough, new fuel-economy standards for model-year (MY) 2012-2016 cars and trucks and will simultaneously reduce carbon dioxide (CO2) emissions through a national standard. The decision ends years of debate between California, the federal government and the automakers over who can regulate CO2 emissions. Fuel economy and CO2 emissions are directly related, since CO2 is released in proportion to the amount of carbon-based fuel that is burned. In 2007, the Bush administration blocked implementation of a California CO2 rule that had been adopted by 13 other states. California will now rewrite its CO2 rule to match the national standard. The National Highway Traffic Safety Administration (NHTSA) will set Corporate Average Fuel Economy (CAFE) standards for MY 2012-2016 vehicles that nearly match CO2 emission standards adopted by California. The EPA will also establish corresponding CO2 emissions standards using its authority under the Clean Air Act. The average CAFE rating will be 35.5 mpg in 2016, based on a combined 39 mpg rating for passenger cars and 30 mpg for light trucks. The EPA will set a CO2 emissions standard of 250 grams per mile for vehicles sold in 2016, roughly equivalent to 35.5 mpg.

Health Care Reform

SEMA is working in an alliance with the National Federation of Independent Business and the Small Business Coalition for Affordable Healthcare to enact legislation that will reduce skyrocketing premiums and protect small companies from costly mandates.

Small-Business Credit Relief

The U.S. Small Business Administration will provide a 100% guarantee on America’s Recovery Capital (ARC) loans, a $255 million program established under the Recovery Act of 2009. The program will provide interest-free, deferred-payment loans of up to $35,000 to established for-profit small businesses that need short-term help making principal and interest payments on existing debt such as credit card obligations, capital leases and notes payable to vendors/suppliers. Repayment of the loan principal begins 12 months after the final disbursement and extends over a five-year period. The program will last until September 2010 or until the $255 million has been spent, whichever comes first. ARC loans are provided by commercial lenders, not the SBA.

OHV Access to Public Lands

A House subcommittee held a hearing on a SEMA-opposed bill called the Northern Rockies Ecosystem Protection Act, which would designate as wilderness 19 million acres of land in Idaho, Montana, Wyoming, Oregon and Washington. By law, roads and motorized vehicles are generally prohibited in wilderness areas. The issue is consequential to SEMA members, since off-roaders would have less riding areas in the region and potentially less demand for off-highway (OHV) equipment. SEMA contends that the legislation is overly broad in scope and does not reflect the views of local communities and stakeholders on how the land should be managed.