SEMA has called upon the U.S. Congress to prevent the U.S. Environmental Protection Agency (EPA) from moving forward with its program to allow the ethanol content in gasoline to increase from 10% (E10) to 15% (E15). SEMA worked with lawmakers and senior staff to help secure House approval of an EPA restriction as part of a 2011 federal government funding measure. The bill is now under consideration in the U.S. Senate. SEMA, along with a coalition of other industry organizations, is seeking to include a similar provision in the fiscal-year 2012 bill. SEMA also supports a separate bill to place an indefinite ban on E15.

The use of ethanol in gasoline is a sensitive topic. Who would oppose an alternative fuel that can help wean Americans from fossil fuels and reduce the nation’s dependence on foreign oil? The problem is that ethanol in certain quantities has chemical side effects that may pose a threat to older vehicles and some high-performance equipment. SEMA is leading the fight to support the alternative fuel while protecting vulnerable auto equipment and its owners.

A main challenge is the fact that ethanol attracts moisture, leading to increased water formation that can create formic acid and corrode metals, plastics and rubber. Newer vehicles, engines and exhaust systems may have been designed to work compatibly with E10. They may even tolerate E15; however, the materials found in many older vehicles and certain high-performance equipment will not endure the corrosive effects, especially if the vehicles are not regularly used. SEMA is seeking to protect that segment of its membership producing these parts and a large enthusiast base that owns such equipment.

The number of concerns expressed by SEMA members and SEMA Action Network enthusiasts regarding E10 has increased significantly in recent years. In response, SEMA has examined the science behind ethanol and defined its position on ethanol content. The research included in-depth discussions with SEMA members and industry leaders along with representatives from the Environmental Protection Agency (EPA), U.S. Department of Energy and Argonne Laboratory, where extensive ethanol research is conducted.

E10 has been around for a number of years, and its use has recently skyrocketed. More than 90% of gasoline sold in 2010 was E10. However, most consumers are unaware of that fact, since E10 labeling rules are subject to state regulation. Some states do not require labels; for those that do, the label is inconsistent in appearance and location on the pump. SEMA has fielded a number of enthusiast complaints about E10 concerns, the inability to locate pure gasoline and confusion on what is being dispensed at the gas station.

In 2009, the ethanol industry asked the EPA for a waiver to market E15. SEMA joined with a diverse coalition of industry leaders in opposing the waiver based on scientific concerns that a 50% increase in ethanol content could harm automobile parts in many model years of vehicles. SEMA supported further study so that there is a clearer understanding of the issue. Besides the corrosion issue, SEMA observed that E15 also has different combustion characteristics from E10 and may cause problems with air/fuel mixtures, fuel-pump sealing and related on-board fuel delivery components.

In November 2010, the EPA approved a partial waiver to allow the use of E15 in ’07 and newer vehicles. In January 2011, the EPA expanded the waiver to include ’01 and newer vehicles. Nevertheless, the EPA agreed with SEMA’s concerns and made it “illegal to fuel pre-’01 vehicles” with E15. The EPA determined that pre-’01 vehicles have the potential for increased material degradation with E15 use, that some of these vehicles may have been designed for only limited exposure to E10 and that the oldest vehicles on the road pre-date ethanol blends in the marketplace altogether. The EPA concluded that the potential for material degradation may make emissions control and fuel systems more susceptible to corrosion and other chemical reactions. (Several lawsuits have been filed to challenge the partial waiver.)

As it turns out, making it “illegal to fuel pre-2001 vehicles” are essentially words without meaning, since E15 will be available to everyone. The EPA would simply rely on a gas pump caution label to instruct motorists that E15 is only to be used in ’01 and newer cars and that it is prohibited in other vehicles because the fuel may damage the vehicles and engines. Despite the potential for economic harm and equipment breakdowns, the EPA is placing responsibility for understanding the difference between E10 and E15 directly on vehicle owners.

According to EPA estimates, the number of vehicles in the United States subject to misfueling includes nearly 74 million pre-’01 model cars and light trucks. Gas stations, automakers and SEMA-member manufacturers would not be granted immunity from lawsuits if a consumer alleges a problem from E15. Moreover, auto manufacturers won’t cover engine problems that result from using fuel blended with more than 10% ethanol.

SEMA supports ethanol as an alternative fuel so long as it does not pose a risk. In fact, there would be no need to raise the fuel content from E10 to E15 if existing flex-fueled vehicles were filled with E85 fuel and more flex-fuel vehicles were sold. Instead, owners generally buy gasoline because the operating price is traditionally lower and many gas stations don’t
market E85.

As the debate continues, SEMA will remain a leader in preventing decisions from being made without unbiased testing on the impact of E15 on vehicle components and engines. If you would like more information or to share how E15 would impact your business or vehicles, please contact Stuart Gosswein, SEMA’s senior director of federal government affairs at 202/783-6007 x30 or stuartg@sema.org. 

By Steve McDonald

Arizona Emissions Tests:

SEMA-supported legislation to exempt all vehicles 25 years old and older from the state’s mandatory biennial emissions inspection and maintenance program was approved by the Senate Rules and Natural Resources and Transportation Committees. The bill will now make its way to the floor for a vote by the full Senate. Existing law in Arizona exempts only pre-’67 model-year vehicles and those vehicles designated as “collectible.”

Arkansas Inoperable Vehicles:

SEMA is opposing legislation that would allow cities to remove inoperable vehicles from private property if the vehicle is deemed a “nuisance” under a local ordinance. The bill was approved by the Arkansas House of Representatives. Among other things, the measure provides no reasonable safeguards for legitimate automotive hobbyists who choose to work on inoperable collector vehicles on private property and establishes no provisions that would enable vehicles located out of public view to avoid being classified as abandoned.

California Air Resources Board:

SEMA-supported legislation to require that one appointed member of the Air Resources Board be a current small-business owner has been introduced in the California Legislature. The bill has been referred to the Assembly Committee on Natural Resources but has not yet been scheduled for hearing.

Connecticut Antique Vehicles:

Legislation to increase the age requirement for vehicles eligible for registration as “antique, rare or special-interest motor vehicles” has been introduced in the Connecticut General Assembly. Under the SEMA-opposed bill, vehicles seeking registration under these classes would be required to be at least 25 years old. Currently, vehicles 20 years old or older are eligible for such status and a reduced assessment for personal property tax purposes. Antique, rare or special-interest motor vehicles are currently assessed at a rate of $500, and owners pay personal property taxes on that amount.

Hawaii Car Audio Equipment:

SEMA-opposed legislation to ban the installation, ownership or use of any car with aftermarket speakers more than 6.5 in. in height or depth; any five-speaker aftermarket system; any aftermarket speaker more than 100 watts; and any aftermarket speaker installed external to the passenger compartment or in an open-hatch back will not be considered in the Hawaii legislature this year. The measure was discriminatory toward aftermarket products, as it did not seek to limit systems installed by the original vehicle manufacturer or dealer. If enacted, the bill would have denied hobbyists the opportunity to purchase and install a range of aftermarket alternatives to original-equipment stereos. The measure was deferred following a hearing on the bill in the House Transportation Committee.

Nebraska Parts Cars:

Nebraska Governor Dave Heineman signed into law a bill to redefine parts cars and make such vehicles easier to transfer. Prior to the bill’s enactment, Nebraska required a certificate of title when transferring any vehicle. The new law, effective immediately, allows for parts cars to be transferred using a bill of sale issued by the DMV. Parts vehicles eligible to be transferred using only a bill of sale under the new provisions include vehicles for which title has been surrendered due to the vehicle being destroyed, dismantled or scrapped or for which title has been surrendered to another state or an insurance company to render it fit for sale for scrap parts.

New Mexico Street Rods/Customs:  

SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles and provide for special license plates for these vehicles was approved by the Senate Transportation Committee. The Senate Finance Committee will now consider the bill, which 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. Among other things, the measure allows for the use of non-original materials; creates a titling and registration criterion that assigns these vehicles the same model-year designation as the production vehicle they most closely resemble; holds only street rods, customs and replicas to the equipment standards specified by law during the model year listed on the title of the vehicle; and provides for a one-time registration and plate fee of $100.

North Dakota Vehicle Modifications:

A bill in North Dakota to severely restrict the modification of any motor vehicle that alters the manufacturer’s original suspension, steering or brake system has been amended and approved by the House of Representatives. At the insistence of SEMA and the North Dakota hobbyist community, among the provisions that were deleted from the bill are those requiring the state highway patrol to issue an inspection certificate for all modifications (without indicating objective criteria that would be used to determine which modifications are legal) and requiring fenders on all vehicles regardless of whether or not they were originally manufactured with this equipment. The Senate Transportation Committee will now consider the bill.

Oregon Suspension/Tire Alterations:

SEMA is opposing a bill in the Oregon legislature that would severely limit vehicle suspension, body lift and wheel/tire alterations. Specifically, the measure would ban vehicles whose bumpers are elevated more than 3 in. over the original manufactured bumper clearance. Identical legislation was last introduced in Oregon in 2001. Among other things, the bill discriminates against hobbyists and aftermarket parts makers by leaving it solely to the vehicle manufacturers to choose bumper heights; would force owners of modified vehicles to spend large sums of money to reinstall original components; and would ban useful alterations that provide adequate clearance for on-/off-road capability and accommodate heavy loads, larger tires, improved suspension and water-fording capability. The bill would also impose a fine of up to $360 per offense for vehicles that exceed the 3-in. clearance requirement.

Oregon Exhaust Systems:  

A bill to ban the sale of certain new motor-vehicle exhaust systems or exhaust system components that cause motor vehicles to produce noise that exceeds noise limits has been introduced in Oregon. Under the bill, noise limits would be specified in rules adopted by the Environmental Quality Commission (EQC). However, in 1991 the EQC terminated its noise control program. Among other things, the bill would prohibit the sale of these exhaust systems in Oregon and the sale of these systems by an Oregon-based business to an out-of-state customer; provides no clear standard to enforce and refers to EQC noise standards that are not currently in use; and makes no accommodation for SEMA-model legislation to allow vehicle hobbyists to buy and install aftermarket modified exhaust systems that meet a 95-decibel limit under a fair and predictable test.

Tennessee Emissions Tests:

SEMA is supporting identical legislation in the Tennessee House of Representatives and Senate to exempt vehicles more than 25 years old from the state’s annual emissions inspection and maintenance program, where applicable. To qualify for the exemption, these vehicles must be registered as “antique motor vehicles.” Existing law defines an antique vehicle as a motor vehicle more than 25 years old with a non-modified engine and body that is used for club activities, exhibits, tours, parades and similar uses as a collector’s item; on the highways for the purpose of selling, testing the operation of, or obtaining repairs or maintenance; and for general transportation on Saturday and Sunday.

Texas Street Rods/Customs:

The Texas Senate has joined the House in introducing SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles and provide for special license plates for these vehicles. Both bills define 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 measures also allow for the use of non-original materials and create a titling and registration criterion that assigns these vehicles the same model-year designations as the production vehicles they most closely resemble.

 

 

 

Utah Vintage Vehicles:

SEMA-supported legislation to allow vehicles 30 years old and older to be classified as “vintage vehicles” was approved by the Utah House of Representatives and Senate. Currently, Utah reserves the vintage vehicle class only to vehicles 40 years old and older. Under the bill, vintage vehicles 30–40 years old would now be included in the class and be charged a $45 annual registration fee. When the vehicle reaches 40 years old, the registrant would pay a one-time $40 fee. Vintage vehicles are exempted from annual emissions and safety inspections. The bill now moves to Governor Gary Herbert for his signature and enactment into law.

Washington Street Rods/Customs:

SEMA-model legislation to create a vehicle titling and registration classification for street rods and custom vehicles was approved unanimously by the Washington State Senate. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 30 years old and manufactured after 1948. Under the bill, kit cars and replica vehicles will be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble. Among other things, the measure exempts street rods and customs from a range of standard-equipment requirements (only that equipment required in the model year that the vehicle resembles) and emissions inspections, provides that vehicles titled and registered as street rods and custom vehicles may be used for only occasional transportation, exhibitions, club activities, parades, tours, etc., and not for general daily transportation and permits the use of blue-dot taillights. The House Committee on Transportation will now consider the bill.

Washington Collector License Plates:

Legislation that originally sought to increase the age requirement for vehicles eligible for registration as “collector vehicles” was amended and approved by the Washington House Transportation Committee. Under the amended bill, vehicles seeking registration as collector vehicles and the one-time registration fee would only be required to be at least 30 years old rather than 40 years old. The amended bill also deletes provisions that would have created penalties for violating the limited-use provisions. The measure now only requires the Department of Licensing to establish a method for law enforcement to readily access collector vehicle information using the collector vehicle’s plate number, which will aid in ensuring that a plate is being used on its properly assigned vehicle.

Wisconsin Imported Collector Cars:

The Wisconsin Department of Transportation has officially withdrawn its proposal to prohibit the registration of imported vehicles manufactured after 1967 that do not meet Federal Motor Vehicle Safety Standards (FMVSS). SEMA opposed the proposal. U.S. law specifically exempts imported vehicles that are 25 years old and older from these safety standards. The Department of Transportation proposal offered no such reasonable exemption. The regulation would only have permitted the continued registration of subject vehicles that are already legally registered in Wisconsin, but only until they are transferred to a new owner. Among other things, the proposal failed to recognize the fact that collector vehicles are overwhelmingly well-maintained and infrequently driven, was inconsistent with federal law and would prohibit the registration of vehicles coming in from other states that have already been proven safe on U.S. roads.

Wyoming Vehicle Titles:

A bill to ease the burden on hobbyists by providing an exemption from bonded title requirements has been signed into law by Governor Matt Mead. By allowing enthusiasts to title vehicles being restored for personal use without posting bond, the exemption reduces costs associated with titling hobby vehicles when an original title was never issued or can no longer be located. The new law allows restorers to title their completed works by submitting an affidavit of vehicle ownership, a notarized bill of sale, a written statement of the value of the vehicle (based on a national appraisal guide or appraisal performed by a dealer) and a VIN inspection. To prevent abuse of the new procedure, titles issued under this procedure will not be transferable for the first 180 days after issuance.

1099 Reporting Rule:

		SEMA Congressional Affairs Manager Dan Sadowski (right) with Rep. Dan Lungren (R-CA), sponsor of 1099 repeal legislation.

Adopted after SEMA and other small business organizations advocated strongly on its behalf, the “Small Business Paperwork Mandate Elimination Act” has been sent to the Senate for action. Under the bill, 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 mandate has garnered widespread opposition on Capitol Hill, and President Barack Obama called for its repeal during his State of the Union address. The requirement was intended to prompt vendors receiving 1099 forms to declare and pay taxes on the income. SEMA was a leader among small-business organizations in supporting the repeal and was invited to participate in a press conference with the bill’s original sponsor, Representative Dan Lungren (R-CA) urging support for the legislation.

Ethanol:

The U.S. House of Representatives approved a provision to prevent the U.S. Environmental Protection Agency (EPA) from using agency funds to permit an increase in the amount of ethanol content in gasoline to 15% (E15). The provision is part of a larger bill to fund the federal government during fiscal-year 2011 that must also be approved by the U.S. Senate. SEMA requested this action and worked hard to secure the final vote, which was a significant temporary victory demonstrating widespread concern about E15 in Congress. SEMA is working with an industry coalition to secure Senate support for an E15 moratorium in both the fiscal-year 2011 and 2011 appropriation bills. SEMA will continue to oppose E15 until there are conclusive scientific findings that demonstrate that it will not harm automobiles of any age as a result of corrosion or other chemical incompatibilities.

Patent Reform:

The U.S. Senate is considering legislation that proposes to change how patents are awarded. Patents are currently granted to individuals who can prove that they were the original inventors. The Senate bill would switch the U.S. to a “first-to-file” system—a method utilized by most other nations. One major drawback to the current system is that it provides an incentive for individuals to claim credit for a patent and demand royalties and damage awards years after a product has been on the market. On the other hand, it has been considered advantageous to small businesses without the resources to get to the patent office first. The bill would make a number of administrative changes as well. If approved, the House of Representatives will consider the legislation.

Scrap Tires:

The EPA will continue to allow industrial facilities to recycle tires by burning them as fuel. Supported by SEMA, the decision preserves an important recycling option, which accounts for more than 50% of annual scrap-tire disposals. The EPA had initially ruled that the tires would be classified as solid waste, requiring the removal of metal before being burned. Paper mills, cement kilns and electric power plants are the major fuel users of recycled tires.

Air Conditioning Refrigerant:

The EPA approved hydrofluoroolefin (HFO-1234yf) as an acceptable substitute chemical for R-12 (Freon), R-134a and other chlorofluorocarbon refrigerants in new motor vehicles. The chemical is believed to have far less global-warming potential than the other chemicals. The EPA approval applies to only new vehicles. HFO-1234yf may not be used in retrofitted vehicles or by “do-it-yourselfers” to recharge vehicle air conditioners, pending further review.

Anti-Ejection Rule:

The National Highway Traffic Safety Administration (NHTSA) has established a new safety standard, FMVSS No. 226, intended to prevent occupants from being ejected through side windows during
a vehicle rollover or side-impact crash. Vehicle manufacturers will have flexibility in determining how to meet the standard’s performance requirements. Anticipated automaker alternatives include using advanced window glazing, making side airbags larger and more robust or tethering side airbags to the base of the vehicle’s pillars. FMVSS No. 226 will be phased in over a four-year period beginning in 2013.

		Off-roading on the sand dunes is also extremely popular, ranging from well-organized mega events at the Desert Challenge to car clubs and individuals who go out on the dunes over the weekend and then buy new products during the week. In fact, the UAE had one of the world’s highest per capita disposable incomes in 2010.			Executive Summary Government officials in the UAE have announced an initiative to develop laws and regulations to support and legitimize their fledgling automotive specialty-equipment market and have asked for SEMA’s assistance in creating that system. The Emirates Authority for Standardization and Metrology (ESMA) recently signed a memo of understanding with SEMA in recognition of the growing importance of the specialty-equipment market in the UAE. Government officials, noting that there are currently no UAE-wide regulations governing the customization market, are seeking to benefit from SEMA’s experience in working closely with regulators in the United States and worldwide as they seek to create a legal framework that allows the attainment of safety and environmental goals without excessive market-hindering restrictions.
		With the enjoyment of vehicles so central to the UAE, it is perhaps fitting that the UAE’s National Day celebrations in early December were marked with, among other events, a classic car show. The show featured hundreds of vehicles from around the world and wound its way down the Emaar Boulevard. Luxury cars and SUVs are seen in the UAE as a status symbol. Pictured here is a lovingly restored ’26–’27 Ford model T on display at the recent Dubai ESMA-SEMA signing.			Emirates Authority for Standardization and Metrology Acting Director General Mohamed Badri (center) and SEMA Vice President of Communications and Events Peter MacGillivray (left) joined U.S. Consul General Justin Siberell at the recent signing in Dubai of a memo of understanding with SEMA in recognition of the growing importance of the specialty-equipment market in the UAE.

The United Arab Emirates (UAE) is less than 40 years old and known as one of the most vibrant and passionate car-enthusiast markets in the world. Dubai, Abu Dhabi and the five other Emirates that make up the UAE offer exciting vehicle customizing markets by many measures. Per capita, the country boasts the largest number of motorsports facilities in the world, and a quick drive in Dubai or Abu Dhabi will delight any gearhead with the wide variety of customized vehicles plying its modern roads.

“Consumers go to great expense to have that one-of-a-kind customized ride,” said Roman Gavrilin of the Middle East Motor Tuning Show (MEMTS). “I see a lot of passion to customize cars because they are something people here are proud of. I would say that we have huge potential growth here, which is supported by quite high disposable income.”

In fact, the UAE had one of the world’s highest per capita disposable incomes in 2010. With the funds to pursue their hobby and low gas prices, consumers searching for products to personalize their luxury and sport-compact cars and light trucks are bringing savvy U.S. and other global companies to the market.

Companies interested in exploring this market might consider exhibiting or visiting the upcoming Automechanika Middle East show in Dubai June 7–9. SEMA will have a booth at this trade-only event featuring more than 1,000 exhibitors.

The UAE is also a strategic gateway to the Middle East. Geographically the size of Portugal, its long coastline and strategic location have made the country a viable route to providing product to others within the Gulf Cooperation Council (GCC), a political and economic union involving six Arab states, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. In recognition of the central role played by the UAE in the GCC and other Middle East countries, Ford, Chrysler and GM all have their Middle East headquarters in the UAE and view the it as an important market.

However, a major deterrent to growth in the absence of UAE-wide regulations regarding customization is law enforcement stopping customized vehicles on the roadway or failing consumers at annual inspections due to the presence of upgraded styling or performance products, particularly in Dubai. Customizing the approximately 8.7 million vehicles that are on the road in the Gulf region (with about 2.6 million registered in the UAE) is made more difficult due to uncertainty about what is allowable.

Zlatko Mulabegovic, managing director and editor of Dubai-based Top Performance magazine, said that the development of clear laws and regulations would have a tremendous impact on aftermarket business, giving business owners the much-needed confidence to stock legal products and providing end users with peace of mind when installing legal performance products on their vehicles. Mitch Perera, sales and marketing manager of Liberty Motorsports, agreed with that assessment.

“Specialty-equipment products are an important element of our business here in the Emirates,” Perera said. “This work is addressing our business and the interests of our customers.”

For more information on the UAE market, contact SEMA Director of International Relations Linda Spencer.

		Off-roading on the sand dunes is also extremely popular, ranging from well-organized mega events at the Desert Challenge to car clubs and individuals who go out on the dunes over the weekend and then buy new products during the week. In fact, the UAE had one of the world’s highest per capita disposable incomes in 2010.			Executive Summary Government officials in the UAE have announced an initiative to develop laws and regulations to support and legitimize their fledgling automotive specialty-equipment market and have asked for SEMA’s assistance in creating that system. The Emirates Authority for Standardization and Metrology (ESMA) recently signed a memo of understanding with SEMA in recognition of the growing importance of the specialty-equipment market in the UAE. Government officials, noting that there are currently no UAE-wide regulations governing the customization market, are seeking to benefit from SEMA’s experience in working closely with regulators in the United States and worldwide as they seek to create a legal framework that allows the attainment of safety and environmental goals without excessive market-hindering restrictions.
		With the enjoyment of vehicles so central to the UAE, it is perhaps fitting that the UAE’s National Day celebrations in early December were marked with, among other events, a classic car show. The show featured hundreds of vehicles from around the world and wound its way down the Emaar Boulevard. Luxury cars and SUVs are seen in the UAE as a status symbol. Pictured here is a lovingly restored ’26–’27 Ford model T on display at the recent Dubai ESMA-SEMA signing.			Emirates Authority for Standardization and Metrology Acting Director General Mohamed Badri (center) and SEMA Vice President of Communications and Events Peter MacGillivray (left) joined U.S. Consul General Justin Siberell at the recent signing in Dubai of a memo of understanding with SEMA in recognition of the growing importance of the specialty-equipment market in the UAE.

The United Arab Emirates (UAE) is less than 40 years old and known as one of the most vibrant and passionate car-enthusiast markets in the world. Dubai, Abu Dhabi and the five other Emirates that make up the UAE offer exciting vehicle customizing markets by many measures. Per capita, the country boasts the largest number of motorsports facilities in the world, and a quick drive in Dubai or Abu Dhabi will delight any gearhead with the wide variety of customized vehicles plying its modern roads.

“Consumers go to great expense to have that one-of-a-kind customized ride,” said Roman Gavrilin of the Middle East Motor Tuning Show (MEMTS). “I see a lot of passion to customize cars because they are something people here are proud of. I would say that we have huge potential growth here, which is supported by quite high disposable income.”

In fact, the UAE had one of the world’s highest per capita disposable incomes in 2010. With the funds to pursue their hobby and low gas prices, consumers searching for products to personalize their luxury and sport-compact cars and light trucks are bringing savvy U.S. and other global companies to the market.

Companies interested in exploring this market might consider exhibiting or visiting the upcoming Automechanika Middle East show in Dubai June 7–9. SEMA will have a booth at this trade-only event featuring more than 1,000 exhibitors.

The UAE is also a strategic gateway to the Middle East. Geographically the size of Portugal, its long coastline and strategic location have made the country a viable route to providing product to others within the Gulf Cooperation Council (GCC), a political and economic union involving six Arab states, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. In recognition of the central role played by the UAE in the GCC and other Middle East countries, Ford, Chrysler and GM all have their Middle East headquarters in the UAE and view the it as an important market.

However, a major deterrent to growth in the absence of UAE-wide regulations regarding customization is law enforcement stopping customized vehicles on the roadway or failing consumers at annual inspections due to the presence of upgraded styling or performance products, particularly in Dubai. Customizing the approximately 8.7 million vehicles that are on the road in the Gulf region (with about 2.6 million registered in the UAE) is made more difficult due to uncertainty about what is allowable.

Zlatko Mulabegovic, managing director and editor of Dubai-based Top Performance magazine, said that the development of clear laws and regulations would have a tremendous impact on aftermarket business, giving business owners the much-needed confidence to stock legal products and providing end users with peace of mind when installing legal performance products on their vehicles. Mitch Perera, sales and marketing manager of Liberty Motorsports, agreed with that assessment.

“Specialty-equipment products are an important element of our business here in the Emirates,” Perera said. “This work is addressing our business and the interests of our customers.”

For more information on the UAE market, contact SEMA Director of International Relations Linda Spencer.

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