SEMA News—March 2014

CHRIS KERSTING

Involving the Next Generation

Organizations such as SEMA put a good deal of attention on long-range, strategic planning. One truly long-range initiative at SEMA is about engaging with the younger members—and future members—of our industry. The next generation really is the future of the industry. But let’s face it: If the association doesn’t pay close attention and evolve, it’s like asking the next generation to drive their father’s Oldsmobile—and folks in our industry know exactly how that doesn’t always work out!

Among SEMA’s most prominent youth programs are the SEMA Memorial Scholarship Fund, the Young Executive Network (YEN) and the “35 Under 35” recognition program—all examples of well-received association programs.

Less visible are a number of other association activities aimed at creating opportunities—programs that even the most involved SEMA members might not be aware of.

For example, there is the student program at the SEMA Show, which gives SEMA-member companies an opportunity to interact with the future workforce of the automotive aftermarket. To make that happen, we bring scholarship winners and other graduating students to the SEMA Show so they can meet with key players and identify companies they may want to send résumés to. The program had record participation this past year, involving more than 400 students from 45 colleges and technical institutions.

Another SEMA youth-development activity will take place this summer when SEMA will embed a team of 10 YEN members into the Hot Rod Power Tour to give them the opportunity to connect with students, enthusiasts and SEMA members on a national, grassroots level. The young people in this group will spend their days visiting local vocational and technical schools and their afternoons with enthusiasts and SEMA members gathered on the tour. They will share insights with students about careers in our industry and gain a chance to build a broader network of contacts.

Another new initiative came to fruition at the 2013 SEMA Show: the SEMA Launch Pad. The Launch Pad gives us a way to spotlight the commercial aspirations of young SEMA entrepreneurs so they may more easily acquire the resources needed to move their inventions forward.

It was also encouraging to find ways to see that students from technical schools were included in vehicle builds for the SEMA Show. The WD-40 F-150 buildup allowed students from the Alex Xydias Center of Automotive Arts to meet with factory reps who guided them through the installation of performance parts on this year’s SEMA Cares charity vehicle. The WD-40 F-150 will be raffled off in April (purchase your raffle ticket here). Another build, this one at the Show, allowed students from technical colleges across the country to completely customize a Jeep over three days under the guidance of Omix-ADA employees. In both cases, these interactions provided students with the opportunity to learn how to work with performance parts as well as give them quality time with member companies that may want to hire them in the future.

Through these efforts and others, we are making progress in meeting the next generation of SEMA members and helping to attract qualified young talent to work in our industry. And we’re also working on how to stoke these next generations as consumers of our industry’s products.

There is currently an open Key Initiative at the board level that seeks to identify an effective role for the association in kindling excitement for performance aftermarket lifestyle products. Our initial research suggests that the most productive consumers to court would be in the 26–34 “millennial” age range, so the goal of reaching younger consumers overlaps with our goal of connecting our industry to consumers on a broader scale. This is an area that will take some time to assess and decide how to deploy resources, but the advent of social media leaves us encouraged that some good work might yield progress on this front as well.

—Chris Kersting, SEMA President and CEO

SEMA News—March 2014

CHRIS KERSTING

Involving the Next Generation

Organizations such as SEMA put a good deal of attention on long-range, strategic planning. One truly long-range initiative at SEMA is about engaging with the younger members—and future members—of our industry. The next generation really is the future of the industry. But let’s face it: If the association doesn’t pay close attention and evolve, it’s like asking the next generation to drive their father’s Oldsmobile—and folks in our industry know exactly how that doesn’t always work out!

Among SEMA’s most prominent youth programs are the SEMA Memorial Scholarship Fund, the Young Executive Network (YEN) and the “35 Under 35” recognition program—all examples of well-received association programs.

Less visible are a number of other association activities aimed at creating opportunities—programs that even the most involved SEMA members might not be aware of.

For example, there is the student program at the SEMA Show, which gives SEMA-member companies an opportunity to interact with the future workforce of the automotive aftermarket. To make that happen, we bring scholarship winners and other graduating students to the SEMA Show so they can meet with key players and identify companies they may want to send résumés to. The program had record participation this past year, involving more than 400 students from 45 colleges and technical institutions.

Another SEMA youth-development activity will take place this summer when SEMA will embed a team of 10 YEN members into the Hot Rod Power Tour to give them the opportunity to connect with students, enthusiasts and SEMA members on a national, grassroots level. The young people in this group will spend their days visiting local vocational and technical schools and their afternoons with enthusiasts and SEMA members gathered on the tour. They will share insights with students about careers in our industry and gain a chance to build a broader network of contacts.

Another new initiative came to fruition at the 2013 SEMA Show: the SEMA Launch Pad. The Launch Pad gives us a way to spotlight the commercial aspirations of young SEMA entrepreneurs so they may more easily acquire the resources needed to move their inventions forward.

It was also encouraging to find ways to see that students from technical schools were included in vehicle builds for the SEMA Show. The WD-40 F-150 buildup allowed students from the Alex Xydias Center of Automotive Arts to meet with factory reps who guided them through the installation of performance parts on this year’s SEMA Cares charity vehicle. The WD-40 F-150 will be raffled off in April (purchase your raffle ticket here). Another build, this one at the Show, allowed students from technical colleges across the country to completely customize a Jeep over three days under the guidance of Omix-ADA employees. In both cases, these interactions provided students with the opportunity to learn how to work with performance parts as well as give them quality time with member companies that may want to hire them in the future.

Through these efforts and others, we are making progress in meeting the next generation of SEMA members and helping to attract qualified young talent to work in our industry. And we’re also working on how to stoke these next generations as consumers of our industry’s products.

There is currently an open Key Initiative at the board level that seeks to identify an effective role for the association in kindling excitement for performance aftermarket lifestyle products. Our initial research suggests that the most productive consumers to court would be in the 26–34 “millennial” age range, so the goal of reaching younger consumers overlaps with our goal of connecting our industry to consumers on a broader scale. This is an area that will take some time to assess and decide how to deploy resources, but the advent of social media leaves us encouraged that some good work might yield progress on this front as well.

—Chris Kersting, SEMA President and CEO

SEMA News—April 2014

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archives

The Kiss

You could say that much of Anthony “Andy” Granatelli’s life had been leading up to this day, this moment. The man known as “Mr. 500” seemed irresistibly drawn to the Indianapolis Motor Speedway. In 1946, he and his brothers Vince and Joe sponsored a car in the first Indy 500 after World War II but watched it sputter to a stop, out of fuel, before completing the race. Two years later Andy tried driving at Indy but crashed hard in practice. Grancor, the speed shop and warehouse-distribution business the brothers formed in Chicago, sponsored Indy roadsters in the ’50s, and the Granatellis brought Novi roadsters back to run the Brickyard for several years in the early and mid ’60s.

While campaigning the Novis, the Granatelli brothers were also working on a project to win at Indy using turbine power. And they came so close. Parnelli Jones was within three laps of winning the 1967 race in the futuristic, four-wheel-drive, turbine-powered STP Oil Treatment Special before a $10 transmission bearing failed, bringing the “whooshmobile” to a stop. The Granatellis came back to Indy in 1968 with another turbine-powered car but again had to watch a late-race lead disappear, this time due to a fuel pump failure.

For the 1969 race, the Granatellis returned to conventional piston power, commissioning a four-wheel-drive Ford/Lotus for driver Mario Andretti. During practice, Andretti crashed hard and suffered burns to his face when a wheel hub failed. Undaunted, he went on to qualify second fastest in a year-old backup car and led the race for most of its second half, despite an overheating engine and slipping clutch. He finished a full lap ahead of second-place Dan Gurney at an average speed of 156.867 mph.

It’s no wonder, then, that a jubilant Andy Granatelli, finally victorious at Indianapolis after so many years of trying, pushed his way up to Andretti in Victory Circle and planted the kiss seen ’round the world.

The iconic photo of the kiss was taken by Petersen Publishing photographer Bob D’Olivo. The original negative has long since disappeared from the Petersen photo archive, but we did find a print of the famous shot, as well as a proof sheet of the original photo job. Look closely at the frames and you can see Andretti waving to the crowd and Granatelli approaching him before smacking him on the cheek.

Granatelli passed away in December at age 90 due to heart failure. During his “supercharged” life (as he called it), he would famously turn two businesses into household names—STP and Tuneup Masters. He and his brothers set speed records on the dry lakes and Bonneville driving Paxton-supercharged cars. He himself turned over 241 mph at Bonneville at age 62. Could he have been any happier, though, than at this moment in May 1969?

SEMA News—April 2014

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archives

The Kiss

You could say that much of Anthony “Andy” Granatelli’s life had been leading up to this day, this moment. The man known as “Mr. 500” seemed irresistibly drawn to the Indianapolis Motor Speedway. In 1946, he and his brothers Vince and Joe sponsored a car in the first Indy 500 after World War II but watched it sputter to a stop, out of fuel, before completing the race. Two years later Andy tried driving at Indy but crashed hard in practice. Grancor, the speed shop and warehouse-distribution business the brothers formed in Chicago, sponsored Indy roadsters in the ’50s, and the Granatellis brought Novi roadsters back to run the Brickyard for several years in the early and mid ’60s.

While campaigning the Novis, the Granatelli brothers were also working on a project to win at Indy using turbine power. And they came so close. Parnelli Jones was within three laps of winning the 1967 race in the futuristic, four-wheel-drive, turbine-powered STP Oil Treatment Special before a $10 transmission bearing failed, bringing the “whooshmobile” to a stop. The Granatellis came back to Indy in 1968 with another turbine-powered car but again had to watch a late-race lead disappear, this time due to a fuel pump failure.

For the 1969 race, the Granatellis returned to conventional piston power, commissioning a four-wheel-drive Ford/Lotus for driver Mario Andretti. During practice, Andretti crashed hard and suffered burns to his face when a wheel hub failed. Undaunted, he went on to qualify second fastest in a year-old backup car and led the race for most of its second half, despite an overheating engine and slipping clutch. He finished a full lap ahead of second-place Dan Gurney at an average speed of 156.867 mph.

It’s no wonder, then, that a jubilant Andy Granatelli, finally victorious at Indianapolis after so many years of trying, pushed his way up to Andretti in Victory Circle and planted the kiss seen ’round the world.

The iconic photo of the kiss was taken by Petersen Publishing photographer Bob D’Olivo. The original negative has long since disappeared from the Petersen photo archive, but we did find a print of the famous shot, as well as a proof sheet of the original photo job. Look closely at the frames and you can see Andretti waving to the crowd and Granatelli approaching him before smacking him on the cheek.

Granatelli passed away in December at age 90 due to heart failure. During his “supercharged” life (as he called it), he would famously turn two businesses into household names—STP and Tuneup Masters. He and his brothers set speed records on the dry lakes and Bonneville driving Paxton-supercharged cars. He himself turned over 241 mph at Bonneville at age 62. Could he have been any happier, though, than at this moment in May 1969?

SEMA News—April 2014

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archives

The Kiss

You could say that much of Anthony “Andy” Granatelli’s life had been leading up to this day, this moment. The man known as “Mr. 500” seemed irresistibly drawn to the Indianapolis Motor Speedway. In 1946, he and his brothers Vince and Joe sponsored a car in the first Indy 500 after World War II but watched it sputter to a stop, out of fuel, before completing the race. Two years later Andy tried driving at Indy but crashed hard in practice. Grancor, the speed shop and warehouse-distribution business the brothers formed in Chicago, sponsored Indy roadsters in the ’50s, and the Granatellis brought Novi roadsters back to run the Brickyard for several years in the early and mid ’60s.

While campaigning the Novis, the Granatelli brothers were also working on a project to win at Indy using turbine power. And they came so close. Parnelli Jones was within three laps of winning the 1967 race in the futuristic, four-wheel-drive, turbine-powered STP Oil Treatment Special before a $10 transmission bearing failed, bringing the “whooshmobile” to a stop. The Granatellis came back to Indy in 1968 with another turbine-powered car but again had to watch a late-race lead disappear, this time due to a fuel pump failure.

For the 1969 race, the Granatellis returned to conventional piston power, commissioning a four-wheel-drive Ford/Lotus for driver Mario Andretti. During practice, Andretti crashed hard and suffered burns to his face when a wheel hub failed. Undaunted, he went on to qualify second fastest in a year-old backup car and led the race for most of its second half, despite an overheating engine and slipping clutch. He finished a full lap ahead of second-place Dan Gurney at an average speed of 156.867 mph.

It’s no wonder, then, that a jubilant Andy Granatelli, finally victorious at Indianapolis after so many years of trying, pushed his way up to Andretti in Victory Circle and planted the kiss seen ’round the world.

The iconic photo of the kiss was taken by Petersen Publishing photographer Bob D’Olivo. The original negative has long since disappeared from the Petersen photo archive, but we did find a print of the famous shot, as well as a proof sheet of the original photo job. Look closely at the frames and you can see Andretti waving to the crowd and Granatelli approaching him before smacking him on the cheek.

Granatelli passed away in December at age 90 due to heart failure. During his “supercharged” life (as he called it), he would famously turn two businesses into household names—STP and Tuneup Masters. He and his brothers set speed records on the dry lakes and Bonneville driving Paxton-supercharged cars. He himself turned over 241 mph at Bonneville at age 62. Could he have been any happier, though, than at this moment in May 1969?

SEMA News—April 2014

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archives

The Kiss

You could say that much of Anthony “Andy” Granatelli’s life had been leading up to this day, this moment. The man known as “Mr. 500” seemed irresistibly drawn to the Indianapolis Motor Speedway. In 1946, he and his brothers Vince and Joe sponsored a car in the first Indy 500 after World War II but watched it sputter to a stop, out of fuel, before completing the race. Two years later Andy tried driving at Indy but crashed hard in practice. Grancor, the speed shop and warehouse-distribution business the brothers formed in Chicago, sponsored Indy roadsters in the ’50s, and the Granatellis brought Novi roadsters back to run the Brickyard for several years in the early and mid ’60s.

While campaigning the Novis, the Granatelli brothers were also working on a project to win at Indy using turbine power. And they came so close. Parnelli Jones was within three laps of winning the 1967 race in the futuristic, four-wheel-drive, turbine-powered STP Oil Treatment Special before a $10 transmission bearing failed, bringing the “whooshmobile” to a stop. The Granatellis came back to Indy in 1968 with another turbine-powered car but again had to watch a late-race lead disappear, this time due to a fuel pump failure.

For the 1969 race, the Granatellis returned to conventional piston power, commissioning a four-wheel-drive Ford/Lotus for driver Mario Andretti. During practice, Andretti crashed hard and suffered burns to his face when a wheel hub failed. Undaunted, he went on to qualify second fastest in a year-old backup car and led the race for most of its second half, despite an overheating engine and slipping clutch. He finished a full lap ahead of second-place Dan Gurney at an average speed of 156.867 mph.

It’s no wonder, then, that a jubilant Andy Granatelli, finally victorious at Indianapolis after so many years of trying, pushed his way up to Andretti in Victory Circle and planted the kiss seen ’round the world.

The iconic photo of the kiss was taken by Petersen Publishing photographer Bob D’Olivo. The original negative has long since disappeared from the Petersen photo archive, but we did find a print of the famous shot, as well as a proof sheet of the original photo job. Look closely at the frames and you can see Andretti waving to the crowd and Granatelli approaching him before smacking him on the cheek.

Granatelli passed away in December at age 90 due to heart failure. During his “supercharged” life (as he called it), he would famously turn two businesses into household names—STP and Tuneup Masters. He and his brothers set speed records on the dry lakes and Bonneville driving Paxton-supercharged cars. He himself turned over 241 mph at Bonneville at age 62. Could he have been any happier, though, than at this moment in May 1969?

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.  

SEMA News—April 2014

INTERNATIONAL
By Alysha Webb

China’s Growing Love Affair With Jeeps

China continues to be a very important market for Chrysler’s Jeep line. Last year it became the brand’s largest global market. Imported models have driven that growth, but Chrysler has been talking for years about producing Jeeps in China. It looks as though that will become a reality next year. Adding domestically produced models to the mix should boost both sales of Jeeps and opportunities for SEMA members.

Jeep is part of the fastest-growing segment in China’s automotive market: sport utility vehicles. SUV sales rose 51% in 2013 compared with the previous year to 3.03 million units, according to LMC Auto, a provider of automotive production, sales and powertrain forecasts and automotive industry market intelligence. Sales of light vehicles rose 14% to 21.9 million units in 2013, according to LMC Auto.

Imported models carry a heavy price premium in China because of import taxes. Producing Jeeps domestically will allow Chrysler to offer similar products at lower prices. The three models initially slated for domestic production are the Cherokee, the new Compass compact SUV and the Jeepster compact CUV, said Chinese sources. The first two models will cater to the same customer base as existing models; the Jeepster is aimed at pulling in a new kind of Jeep customer.

IHS forecasted that the start of production for the Cherokee will be August of 2014, but disputes over where the production should be located and issues related to the merger of Fiat and Chrysler will likely delay that date until 2015, said a Chinese source at a supplier company.

Chrysler produces models of the Cherokee for the North American and the European markets because the two have different emissions standards. The drivetrain in the Chinese Cherokee will closely resemble the European version because China’s emissions standards are based on Europe’s, said a Chrysler China executive.

The Chinese Cherokee will offer a 1.4L turbocharged engine and a 2.0L or a 2.4L naturally aspirated engine specially designed for China. Future versions will offer a 2.0L turbocharged engine.

Luxury SUVs are especially hot in China, and Jeep is seen as a luxury brand, shopped against Audi and BMW, Jeep CEO Mike Manley said. Both European companies produce SUV models in China. To help it compete in the luxury segment, the Chinese Cherokee will have a better entertainment system and rear-seat entertainment to cater to China’s larger base of chauffeur-driven passengers, said the Chrysler executive.

Sales volumes for the domestically produced Cherokee are hard to predict without knowing prices, but Jeep has a good brand image in China, and Cherokee sales will probably be in the range of 2,000 to 3,000 units per month, said Kevin Huang of WAY-S Consulting in Guangzhou, China.

“The product image of Jeep is good off-road performance and good brand value,” said Huang. “Typical owners are people with successful careers or private businesses who enjoy exploration and have aggressive personalities.”

The new Jeep Compass will be domestically produced beginning in 2016, HIS forecasted. The new Compass is a compact SUV based on a Fiat platform. After its launch, the Patriot will be phased out.

As for customization, products such as steps, roof accessories and assistance lamps are popular for the Cherokee and Patriot, said Yang Jie, an automotive designer in Shanghai who owned a Cherokee and now owns a Jeep Patriot. Mobile Internet is also popular, he said.

The imported Jeep Wrangler is the most-customized model in China, but its low sales volume makes domestic production unlikely, said the Chrysler China executive. More than 50% of Wranglers in China will be retrofitted with accessories such as chrome, handles, lights, underbody protection, bumpers, axle reinforcement and front-mounted wrenches, said Chinese sources.

According to IHS, production of the Jeepster in China should begin in late 2015, but it seems to present relatively few customization possibilities for SEMA members. The Jeepster is based on the Fiat 500L platform, and buyers will be urban and young, said WAY-S Analyst Huang. It will offer a 1.4L turbocharged engine or a 2.4L engine.

“The target customers will be younger generations who favor fashionable lifestyles but have relatively limited budgets for a bigger SUV or crossover,” he said. They will likely go for appearance-enhancing customizations rather than performance enhancements.