SEMA members will have the opportunity to meet with pre-vetted distributors and retailers from throughout China at the 2011 SEMA CIAPE China Business Development Conference in Beijing from September 7–10, 2011.

SEMA recently interviewed a number of off-road shops throughout China—in Hangzhou, Yunnan Province, Beijing, Shanghai and Shenzhen—about the type of vehicles they are currently working on, how brand-aware are their customers and typical customizations.

The results for top vehicles for customization were: Jeep (Wrangler, Grand Cherokee and Commander), followed by Toyota (LC100, FJ Cruiser, Land Cruiser). To a lesser extent, Mitsubishi also made the list with the Pajero.

As for which customizations were most popular, the responses were quite unanimous with the top upgrades being suspension, wheels/tires and bull bars. A few installers also added lights and body kits to the list of top modifications. Among products sought: additional functional products for the off-roading customer as well as general packages for off-road vehicles (both American and Japanese).

Off-road shops noted that their customers relied on them to recommend customization options. Overseas, U.S. brands in general have a very good reputation, but when choosing among U.S. brands, the customer, we are told, often relies on guidance from the shop owner. Typically, as one retailer noted, only up to 30% of buyers enter their shop requesting specific brands. Others thought that number might be as low as 10%–15%.

One retailer noted: “Only about 30% of our customers ask for specific brands. When the majority of customers come to our tuning shop, they ask us to recommend some brands and analyze the advantages and disadvantages of each brand and the cost of the modifications. They consider this information and then make a final decision on what work they would like.

As for business trends, some companies report good business while another installer noted that while the consumer is desiring more extensive modifications—and their own skill level and expertise has grown to the point that they can provide the customer with the work desired—a bottleneck has developed due to the difficulty of obtaining products in a timely fashion.

Off-road shops have identified working with their overseas suppliers and distributors to reduce the typical delivery time for orders to better serve their customers. They acknowledge that their capacity to purchase larger amounts of products—thus resulting in better prices from the manufacturer and more products on hand—is a work in progress and will improve dramatically only as sales increase and they have access to sufficient capital. Others noted that the import taxes were raising the cost of doing business, yet quite a few of the companies were generally optimistic.

One retailer noted: “Now more and more Chinese can afford to purchase specialty products. We can handle any problems that arise. For the time being, we do not have any problems that we could not overcome.”

All the companies interviewed expressed an eagerness to meet with SEMA members at the next SEMA China International Auto Parts Expo (CIAPE) China Business Development Conference in Beijing in September. With one respondent noting, “I want to take a look at all of the new products from overseas and new technology in the tuning field. I have been in business for many years and pride myself on providing my customers with the best products.”

Meet with these and other buyers who have already registered to participate in the 2011 SEMA CIAPE China Business Development Conference—a low-cost one-on-one program bringing together United States manufacturers with Chinese retailers and distributors. More information is available at sema.org/china or by contacting Linda Spencer at lindas@sema.org.

Legislation to exempt vehicles more than 25 years old from the state’s annual emissions-inspection and maintenance program was passed by the Tennessee House and Senate. To qualify for the exemption, these vehicles must be registered as “antique motor vehicles.” The bill now moves to Governor Bill Haslam for his signature and enactment into law.

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

Legislation to exempt vehicles more than 25 years old from the state’s annual emissions-inspection and maintenance program was passed by the Tennessee House and Senate. To qualify for the exemption, these vehicles must be registered as “antique motor vehicles.” The bill now moves to Governor Bill Haslam for his signature and enactment into law.

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

SEMA-model legislation that would create a vehicle-registration classification for street rods and custom vehicles and provide for special license plates for these vehicles was approved by the Texas House Transportation Committee. 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 will now be considered on the floor for a vote by all House members. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

SEMA-model legislation that would create a vehicle-registration classification for street rods and custom vehicles and provide for special license plates for these vehicles was approved by the Texas House Transportation Committee. 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 will now be considered on the floor for a vote by all House members. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

Legislation to exempt all vehicles manufactured in the 1974 model year and earlier from the state’s mandatory biennial emissions inspection program was signed into law by Arizona Governor Jan Brewer. Under previous law, only vehicles manufactured in 1966 and earlier and “collectibles” were exempt. The governor’s signature acknowledges the relatively minimal environmental impact of older vehicles, such as the historic cars targeted for this exemption. These vehicles constitute a small portion of the vehicle fleet and are well maintained and infrequently operated. 

For details, contact Steve McDonald at stevem@sema.org.

Legislation to exempt all vehicles manufactured in the 1974 model year and earlier from the state’s mandatory biennial emissions inspection program was signed into law by Arizona Governor Jan Brewer. Under previous law, only vehicles manufactured in 1966 and earlier and “collectibles” were exempt. The governor’s signature acknowledges the relatively minimal environmental impact of older vehicles, such as the historic cars targeted for this exemption. These vehicles constitute a small portion of the vehicle fleet and are well maintained and infrequently operated. 

For details, contact Steve McDonald at stevem@sema.org.

After Congress acted last week to repeal the costly 1099 reporting requirement included in last year’s health care law, President Obama today signed the legislation into law. SEMA congratulates Congress and the President for acting to eliminate this burdensome requirement. Through this bipartisan agreement, small-business owners can continue to focus on economic growth and revitalization.

Under the terms of the repeal, businesses will no longer be required to issue 1099 forms to all vendors from whom they buy more than $600 worth of goods or services in any year, beginning in 2012. The requirement was intended to prompt vendors receiving 1099 forms to pay taxes on the income.

In a letter sent to the White House asking President Obama to sign the bill into law, SEMA President and CEO Chris Kersting said, “Small businesses remain the most important economic engine driving America’s expanded recovery. Eliminating the 1099 reporting burden will allow our companies to focus on producing tangible goods and services rather than wasteful paperwork.

After signing the bill into law, President Obama said, “I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law. Small-business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork.”

SEMA contended that the 1099 requirement would fail to generate much under-reported income but would succeed in punishing businesses that already comply with U.S. tax law. SEMA was an active leader in the repeal effort, working on its own and with a number of other small-business organizations.

After Congress acted last week to repeal the costly 1099 reporting requirement included in last year’s health care law, President Obama today signed the legislation into law. SEMA congratulates Congress and the President for acting to eliminate this burdensome requirement. Through this bipartisan agreement, small-business owners can continue to focus on economic growth and revitalization.

Under the terms of the repeal, businesses will no longer be required to issue 1099 forms to all vendors from whom they buy more than $600 worth of goods or services in any year, beginning in 2012. The requirement was intended to prompt vendors receiving 1099 forms to pay taxes on the income.

In a letter sent to the White House asking President Obama to sign the bill into law, SEMA President and CEO Chris Kersting said, “Small businesses remain the most important economic engine driving America’s expanded recovery. Eliminating the 1099 reporting burden will allow our companies to focus on producing tangible goods and services rather than wasteful paperwork.

After signing the bill into law, President Obama said, “I was pleased to take another step to relieve unnecessary burdens on small businesses by signing H.R. 4 into law. Small-business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork.”

SEMA contended that the 1099 requirement would fail to generate much under-reported income but would succeed in punishing businesses that already comply with U.S. tax law. SEMA was an active leader in the repeal effort, working on its own and with a number of other small-business organizations.

 

	Bill sponsor Senator Mike Carrell (left) and Art and Craig Morrison (center) of SEMA-member Art Morrison Enterprises join Washington state Governor Christine Gregoire as she signs into law SEMA-model legislation to create a vehicle titling and registration classification for street rods and custom vehicles.

Washington joined the growing list of states to enact SEMA-model legislation to amend the vehicle titling and registration classification for street rods and create a classification for custom vehicles. The bill was approved by the Washington State Legislature and signed into law by Governor Christine Gregoire. Under the new law, a street rod is defined as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 30 years old and manufactured after 1948. Importantly, kit cars and replica vehicles will be assigned a certificate of title bearing the same model-year designation as the production vehicle they most closely resemble.

Washington joins California (2001), Illinois (2002), Missouri (2004), Rhode Island (2004), Hawaii (2004), Montana (2005), Maine (2005), Colorado (2006), Arkansas (2007), Virginia (2007), Nevada (2007), Florida (2007), Idaho (2008), Iowa (2008), Tennessee (2008), Wyoming (2009), Utah (2009), North Carolina (2009) and  Massachusetts (2010) as states that have enacted similar bills into law.

The new law allows for the use of non-original materials, provides for special license plates and exempts street rods and customs from the law requiring vehicles to be equipped with a hood and bumpers. The law also exempts street rods and customs from emissions test requirements. Vehicles titled and registered as street rods and custom vehicles may only be used for occasional transportation, exhibitions, club activities, parades and similar functions.  

“As in the other states that have enacted the SEMA model, the new Washington law recognizes the unique nature of these vehicles as hobbyist cars,” said SEMA Vice President of Government Affairs Steve McDonald. “For many vehicle enthusiasts in Washington and throughout America, building, maintaining and enjoying their vehicles is a favorite pastime. This law represents an opportunity to acknowledge their commitment to the hobby and to protect it for future generations.”

The new law is the product of months of consultation with state legislators, regulators and the local hobbyist and business community, including Art and Craig Morrison of SEMA-member Art Morrison Enterprises in Fife, Washington. “It was an honor being involved in the political system to create positive change and to give back to the automotive enthusiasts of Washington state,” Craig Morrison said. “The SEMA-model legislation that Senator Carrell sponsored should definitely make it easier for enthusiasts in the Evergreen State to get their vehicles out on the road.”

Washington State Senator Mike Carrell, the bill’s sponsor, remarked, “I couldn’t believe how important this bill had become to those in the hobby-car community. I’ve received dozens of e-mails, phone calls and letters—one from as far away as Paris, France—thanking me for sponsoring this bill. There’s a huge groundswell of support for this legislation, and as a car collector myself, I’m very proud to have sponsored it.”

The model bill will continue to be pursued by SEMA in states that either don’t have registration classifications for these vehicles or have laws that are lacking in some way. SEMA efforts are ongoing this year to work with the state legislatures in New York, New Jersey and Texas on this initiative and to add others to that list in the coming legislative sessions.