SEMA News—March 2013

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

STATE UPDATE

2013 State Legislatures: As state legislators and governors return to their respective capitols this year, many will find themselves among political allies as each state progressively inches farther from the center. In other words, the red states are getting redder and the blue progressively bluer. From Kansas to Texas and from Florida to Tennessee, Republican supermajorities have taken hold. As the deep South grows more conservative, the West Coast has filled its state houses with democratic leaders, with California’s legislature including twice as many democrats as republicans in both its House and Senate. Ultimately, the 2012 elections in the states reflect the divisive nature of politics in the country and the increasing gulf between the ideology of the right and the left. Each party may find that increases to its numbers benefit attempts to get measures through. While state budgets are seeing some relief from an uptick in revenue as the recession eases, the implementation of the new healthcare law will require new and complex systems to be put into place, such as state insurance exchanges and expanded Medicaid for citizens unable to afford private insurance. The unbalanced composition of these state’s representatives will be important to keep in mind when watching each state’s policies unfold over the coming months.

Illinois Scrappage: Legislation to create the Illinois Oil Independence Commission to develop a plan to reduce the state’s dependence on oil died when the legislature adjourned for 2012. The bill required that the commission make recommendations for short-term and mid-term policies needed to achieve the overall reductions in oil use. SEMA opposed a provision in the bill that would have established rebates or other consumer incentives for retiring older vehicles.

Massachusetts Greenhouse Gas: SEMA-opposed legislation to establish a progressive purchase surcharge for some new motor vehicles based on state calculations of carbon emissions died when the legislature adjourned. The Joint Committee on Environment, Natural Resources and Agriculture had approved the bill. Under the measure, depending on the vehicle purchased, this surcharge could have required owners to pay up to 10% of the price of the vehicle. Vehicles purchased by state residents outside the state would have been similarly taxed.

Michigan Ethanol: SEMA-supported legislation requiring retail dealers that offer gasoline for sale to label those pumps dispensing ethanol-blended gasoline with a notice that indicates the grade of gasoline and the percentage of ethanol contained died in the legislature without receiving committee consideration. Under current Michigan law, gasoline that contains 10% or less ethanol is not subject to the
labeling requirement.

Pennsylvania Emissions Exemption: Despite being approved by the Senate, a bill to extend the emissions inspection exemption to vehicles never before registered in the state or any other jurisdiction for 10 years from the date of original registration died when the legislature adjourned. Current law exempts only new vehicles that have fewer than 5,000 miles on their odometers for one year after their first registration. The bill, supported by SEMA, acknowledged the relatively minimal environmental impact of the new vehicles targeted for this exemption.

Virginia License Plates: SEMA is supporting legislation prefiled in the Virginia state legislature for 2013 that would reduce the number of license plates furnished by the Department of Motor Vehicles (DMV) to registered motor vehicles. Under the bill, favored by state hobbyists, the DMV would issue only one license plate and require the single plate to be attached to the rear of the vehicle.

FEDERAL UPDATE

As a result of the efforts of SEMA, the Off-Road Business Association and a coalition of other land-use groups, continued off-highway vehicle (OHV) access to Johnson Valley, California, has been guaranteed for now by the U.S. Congress.

Protection for Johnson Valley OHV Area: As a result of the efforts of SEMA, the Off-Road Business Association and a coalition of other land-use groups, continued off-highway vehicle (OHV) access to Johnson Valley, California, has been guaranteed for now by the U.S. Congress. Congress included a provision in the 2013 Defense Authorization Act that requires the U.S. Marines to study alternative ways to share the area with the OHV community without taking ownership of the land. The Johnson Valley off-road area draws at least 200,000 visitors annually and may generate as much as $191 million annually into the economy. Johnson Valley is home to “King of the Hammers” and many other OHV events. The land has been controlled for years by the U.S. Bureau of Land Management, which provides special-use permits for various motorized recreation activities. The Marine Corps wants to expand its base at Twentynine Palms, California, to include nearly 147,000 acres of adjacent land within Johnson Valley in order to conduct large-scale training exercises for one or two months per year. The land-use coalition is urging the Marines to simply obtain BLM special-use permits. Any transfer of land rights is subject to Congressional approval.

E15 Ethanol: SEMA continues to oppose the sale of gasoline with 15% ethanol content (E15). Many older cars were not constructed with materials to counteract ethanol’s harmful effects. E15 can also burn hotter than E10 gasoline and cause damage to certain high-performance specialty parts. The American Automobile Association (AAA) is now opposing the sale of E15 as well. A recent survey found that 95% of AAA members were unaware of E15 or that the fuel could damage their vehicles and void their warranties. With only 5% of vehicles currently approved by automakers to use the fuel, AAA has called for a suspension of E15 sales until motorists are better protected. The U.S. Environmental Protection Agency (EPA) has approved the sale of E15 for use in ’01 and newer vehicles while making it illegal to fuel older cars, motorcycles and other motorized equipment. However, the EPA is requiring only a gas pump warning label instructing unsuspecting consumers that it is “illegal” to fill those machines with E15. SEMA has joined with a number of other trade associations in seeking to repeal the E15 rule.

PM Standards: The EPA lowered by 20% the National Ambient Air Quality Standards for fine particle pollution (PM2.5) from 15 micrograms to 12 micrograms per cubic meter averaged over a year. The EPA did not change the standard for coarse particle pollution (PM10), which remains at 150 micrograms averaged over a 24-hour period. The small soot particles come from a variety of man-made and natural sources, including diesel tailpipe emissions, smokestacks and fires. The agency’s new PM2.5 standard is approximately 1/30 the width of a human hair. The EPA is concerned that the particles can cause aggravated asthma and other respiratory and heart ailments once in the bloodstream or lungs. The agency estimates that 66 of the nation’s 3,033 counties will be found in violation of the new standard when the EPA updates its nonattainment designations around 2015. States would then have five years to meet the revised standard. The EPA contends that many counties will not need to take any additional actions to comply with the rule as long as other air pollution rules the EPA is pursuing are implemented as scheduled. These actions include diesel emission limits for off-road vehicles and installation of new pollution-abatement equipment at oil refineries, power plants and some large-scale manufacturing facilities.

Black boxes are already voluntarily installed in over 95% of model-year ’13 light-duty vehicles.

Black Boxes: The National Highway Traffic Safety Administration (NHTSA) is proposing to mandate installation of event data recorders (black boxes) on all new light-duty automobiles as of September 2014. Black boxes are already voluntarily installed in over 95% of model-year ’13 light-duty vehicles. They are subject to the NHTSA’s “Part 563” regulation, which specifies uniform methods for collecting, storing and retrieving onboard motor-vehicle crash data. The collected data includes crash speed, brake, accelerator pedal, safety belt and airbag deployment information. The proposed rule does not directly address consumer privacy concerns, since these issues are generally subject to state and federal law outside of the NHTSA’s jurisdiction. Within the limits of its own authority, the NHTSA would seek access to information only with the owner’s permission. With respect to vehicle modifications made after first retail sale, it would be illegal to market or install a product that would knowingly take the black boxes out of compliance (e.g. altering the collected measurements).

 

Racers Against Street Racing:

The SEMA Action Network (SAN) has welcomed the Racers Against Street Racing (RASR) brand to its network. RASR is devoted to promoting safe and legal alternatives to illegal street racing. The goal of RASR is to provide resources to allow racing enthusiasts to participate in automotive-related events throughout the United States in a safe and controlled environment.

The reconfigured RASR website now includes newsworthy topics, a state-by-state racetrack locator, downloadable public service announcements, SEMA-model legislation and more. To learn more about RASR, visit www.rasr.org.  

SEMA News—March 2013

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

STATE UPDATE

2013 State Legislatures: As state legislators and governors return to their respective capitols this year, many will find themselves among political allies as each state progressively inches farther from the center. In other words, the red states are getting redder and the blue progressively bluer. From Kansas to Texas and from Florida to Tennessee, Republican supermajorities have taken hold. As the deep South grows more conservative, the West Coast has filled its state houses with democratic leaders, with California’s legislature including twice as many democrats as republicans in both its House and Senate. Ultimately, the 2012 elections in the states reflect the divisive nature of politics in the country and the increasing gulf between the ideology of the right and the left. Each party may find that increases to its numbers benefit attempts to get measures through. While state budgets are seeing some relief from an uptick in revenue as the recession eases, the implementation of the new healthcare law will require new and complex systems to be put into place, such as state insurance exchanges and expanded Medicaid for citizens unable to afford private insurance. The unbalanced composition of these state’s representatives will be important to keep in mind when watching each state’s policies unfold over the coming months.

Illinois Scrappage: Legislation to create the Illinois Oil Independence Commission to develop a plan to reduce the state’s dependence on oil died when the legislature adjourned for 2012. The bill required that the commission make recommendations for short-term and mid-term policies needed to achieve the overall reductions in oil use. SEMA opposed a provision in the bill that would have established rebates or other consumer incentives for retiring older vehicles.

Massachusetts Greenhouse Gas: SEMA-opposed legislation to establish a progressive purchase surcharge for some new motor vehicles based on state calculations of carbon emissions died when the legislature adjourned. The Joint Committee on Environment, Natural Resources and Agriculture had approved the bill. Under the measure, depending on the vehicle purchased, this surcharge could have required owners to pay up to 10% of the price of the vehicle. Vehicles purchased by state residents outside the state would have been similarly taxed.

Michigan Ethanol: SEMA-supported legislation requiring retail dealers that offer gasoline for sale to label those pumps dispensing ethanol-blended gasoline with a notice that indicates the grade of gasoline and the percentage of ethanol contained died in the legislature without receiving committee consideration. Under current Michigan law, gasoline that contains 10% or less ethanol is not subject to the
labeling requirement.

Pennsylvania Emissions Exemption: Despite being approved by the Senate, a bill to extend the emissions inspection exemption to vehicles never before registered in the state or any other jurisdiction for 10 years from the date of original registration died when the legislature adjourned. Current law exempts only new vehicles that have fewer than 5,000 miles on their odometers for one year after their first registration. The bill, supported by SEMA, acknowledged the relatively minimal environmental impact of the new vehicles targeted for this exemption.

Virginia License Plates: SEMA is supporting legislation prefiled in the Virginia state legislature for 2013 that would reduce the number of license plates furnished by the Department of Motor Vehicles (DMV) to registered motor vehicles. Under the bill, favored by state hobbyists, the DMV would issue only one license plate and require the single plate to be attached to the rear of the vehicle.

FEDERAL UPDATE

As a result of the efforts of SEMA, the Off-Road Business Association and a coalition of other land-use groups, continued off-highway vehicle (OHV) access to Johnson Valley, California, has been guaranteed for now by the U.S. Congress.

Protection for Johnson Valley OHV Area: As a result of the efforts of SEMA, the Off-Road Business Association and a coalition of other land-use groups, continued off-highway vehicle (OHV) access to Johnson Valley, California, has been guaranteed for now by the U.S. Congress. Congress included a provision in the 2013 Defense Authorization Act that requires the U.S. Marines to study alternative ways to share the area with the OHV community without taking ownership of the land. The Johnson Valley off-road area draws at least 200,000 visitors annually and may generate as much as $191 million annually into the economy. Johnson Valley is home to “King of the Hammers” and many other OHV events. The land has been controlled for years by the U.S. Bureau of Land Management, which provides special-use permits for various motorized recreation activities. The Marine Corps wants to expand its base at Twentynine Palms, California, to include nearly 147,000 acres of adjacent land within Johnson Valley in order to conduct large-scale training exercises for one or two months per year. The land-use coalition is urging the Marines to simply obtain BLM special-use permits. Any transfer of land rights is subject to Congressional approval.

E15 Ethanol: SEMA continues to oppose the sale of gasoline with 15% ethanol content (E15). Many older cars were not constructed with materials to counteract ethanol’s harmful effects. E15 can also burn hotter than E10 gasoline and cause damage to certain high-performance specialty parts. The American Automobile Association (AAA) is now opposing the sale of E15 as well. A recent survey found that 95% of AAA members were unaware of E15 or that the fuel could damage their vehicles and void their warranties. With only 5% of vehicles currently approved by automakers to use the fuel, AAA has called for a suspension of E15 sales until motorists are better protected. The U.S. Environmental Protection Agency (EPA) has approved the sale of E15 for use in ’01 and newer vehicles while making it illegal to fuel older cars, motorcycles and other motorized equipment. However, the EPA is requiring only a gas pump warning label instructing unsuspecting consumers that it is “illegal” to fill those machines with E15. SEMA has joined with a number of other trade associations in seeking to repeal the E15 rule.

PM Standards: The EPA lowered by 20% the National Ambient Air Quality Standards for fine particle pollution (PM2.5) from 15 micrograms to 12 micrograms per cubic meter averaged over a year. The EPA did not change the standard for coarse particle pollution (PM10), which remains at 150 micrograms averaged over a 24-hour period. The small soot particles come from a variety of man-made and natural sources, including diesel tailpipe emissions, smokestacks and fires. The agency’s new PM2.5 standard is approximately 1/30 the width of a human hair. The EPA is concerned that the particles can cause aggravated asthma and other respiratory and heart ailments once in the bloodstream or lungs. The agency estimates that 66 of the nation’s 3,033 counties will be found in violation of the new standard when the EPA updates its nonattainment designations around 2015. States would then have five years to meet the revised standard. The EPA contends that many counties will not need to take any additional actions to comply with the rule as long as other air pollution rules the EPA is pursuing are implemented as scheduled. These actions include diesel emission limits for off-road vehicles and installation of new pollution-abatement equipment at oil refineries, power plants and some large-scale manufacturing facilities.

Black boxes are already voluntarily installed in over 95% of model-year ’13 light-duty vehicles.

Black Boxes: The National Highway Traffic Safety Administration (NHTSA) is proposing to mandate installation of event data recorders (black boxes) on all new light-duty automobiles as of September 2014. Black boxes are already voluntarily installed in over 95% of model-year ’13 light-duty vehicles. They are subject to the NHTSA’s “Part 563” regulation, which specifies uniform methods for collecting, storing and retrieving onboard motor-vehicle crash data. The collected data includes crash speed, brake, accelerator pedal, safety belt and airbag deployment information. The proposed rule does not directly address consumer privacy concerns, since these issues are generally subject to state and federal law outside of the NHTSA’s jurisdiction. Within the limits of its own authority, the NHTSA would seek access to information only with the owner’s permission. With respect to vehicle modifications made after first retail sale, it would be illegal to market or install a product that would knowingly take the black boxes out of compliance (e.g. altering the collected measurements).

 

Racers Against Street Racing:

The SEMA Action Network (SAN) has welcomed the Racers Against Street Racing (RASR) brand to its network. RASR is devoted to promoting safe and legal alternatives to illegal street racing. The goal of RASR is to provide resources to allow racing enthusiasts to participate in automotive-related events throughout the United States in a safe and controlled environment.

The reconfigured RASR website now includes newsworthy topics, a state-by-state racetrack locator, downloadable public service announcements, SEMA-model legislation and more. To learn more about RASR, visit www.rasr.org.  

SEMA News—March 2013

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Midnight Oil

The pits at an NHRA drag race today are as much a part of the show as they are a place for work. They’re a maze of 18-wheelers, easy-ups and souvenir booths, where hawking T-shirts and collecting autographs go hand in hand with rebuilding engines in a tense but well-orchestrated effort to make the next round.

Petersen Publishing Company photographer Pat Brollier captured a whole different kind of NHRA pit action nearly 50 years ago when he came upon this scene in a motel parking lot. The first NHRA World Championship finals were under way in November 1965 in Tulsa, Oklahoma, and two Top Fuel teams were doing what they could to stay in the hunt.

Car Craft magazine ran a photo similar to this in its January 1966 coverage of the meet. (This is an unpublished outtake; the El Camino with the engine parts in its bed isn’t in the magazine photo.) The caption with the photo read: “Into the night, the oil burned for Alan Bockla and Logghe, Steffey and Rupp as both teams replaced pistons in the motel parking lot in preparation for the next hectic day of racing.”

Bockla’s hectic day ended early, as his team lost in the first Eliminator round. Rupp, on the other hand, made it all the way to the finals after beating Danny Ongais in the semis with a “good hole shot” and a 7.82-second pass at 200 mph. That, it turns out, was the final round of Fuel racing at the meet, as Rupp’s competition in the final, Red Lang, couldn’t get his rail started.

“Rules call for a car to be disqualified if it passes the staging lane and cannot fire,” wrote Bob Leif. “Lang’s engine popped a few times and only fired when pushed onto the strip, thus losing the hardest way possible [and] making for a big disappointment.”

 

SEMA News—March 2013

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Midnight Oil

The pits at an NHRA drag race today are as much a part of the show as they are a place for work. They’re a maze of 18-wheelers, easy-ups and souvenir booths, where hawking T-shirts and collecting autographs go hand in hand with rebuilding engines in a tense but well-orchestrated effort to make the next round.

Petersen Publishing Company photographer Pat Brollier captured a whole different kind of NHRA pit action nearly 50 years ago when he came upon this scene in a motel parking lot. The first NHRA World Championship finals were under way in November 1965 in Tulsa, Oklahoma, and two Top Fuel teams were doing what they could to stay in the hunt.

Car Craft magazine ran a photo similar to this in its January 1966 coverage of the meet. (This is an unpublished outtake; the El Camino with the engine parts in its bed isn’t in the magazine photo.) The caption with the photo read: “Into the night, the oil burned for Alan Bockla and Logghe, Steffey and Rupp as both teams replaced pistons in the motel parking lot in preparation for the next hectic day of racing.”

Bockla’s hectic day ended early, as his team lost in the first Eliminator round. Rupp, on the other hand, made it all the way to the finals after beating Danny Ongais in the semis with a “good hole shot” and a 7.82-second pass at 200 mph. That, it turns out, was the final round of Fuel racing at the meet, as Rupp’s competition in the final, Red Lang, couldn’t get his rail started.

“Rules call for a car to be disqualified if it passes the staging lane and cannot fire,” wrote Bob Leif. “Lang’s engine popped a few times and only fired when pushed onto the strip, thus losing the hardest way possible [and] making for a big disappointment.”

 

SEMA News—March 2013

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Midnight Oil

The pits at an NHRA drag race today are as much a part of the show as they are a place for work. They’re a maze of 18-wheelers, easy-ups and souvenir booths, where hawking T-shirts and collecting autographs go hand in hand with rebuilding engines in a tense but well-orchestrated effort to make the next round.

Petersen Publishing Company photographer Pat Brollier captured a whole different kind of NHRA pit action nearly 50 years ago when he came upon this scene in a motel parking lot. The first NHRA World Championship finals were under way in November 1965 in Tulsa, Oklahoma, and two Top Fuel teams were doing what they could to stay in the hunt.

Car Craft magazine ran a photo similar to this in its January 1966 coverage of the meet. (This is an unpublished outtake; the El Camino with the engine parts in its bed isn’t in the magazine photo.) The caption with the photo read: “Into the night, the oil burned for Alan Bockla and Logghe, Steffey and Rupp as both teams replaced pistons in the motel parking lot in preparation for the next hectic day of racing.”

Bockla’s hectic day ended early, as his team lost in the first Eliminator round. Rupp, on the other hand, made it all the way to the finals after beating Danny Ongais in the semis with a “good hole shot” and a 7.82-second pass at 200 mph. That, it turns out, was the final round of Fuel racing at the meet, as Rupp’s competition in the final, Red Lang, couldn’t get his rail started.

“Rules call for a car to be disqualified if it passes the staging lane and cannot fire,” wrote Bob Leif. “Lang’s engine popped a few times and only fired when pushed onto the strip, thus losing the hardest way possible [and] making for a big disappointment.”

 

SEMA News—March 2013

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Midnight Oil

The pits at an NHRA drag race today are as much a part of the show as they are a place for work. They’re a maze of 18-wheelers, easy-ups and souvenir booths, where hawking T-shirts and collecting autographs go hand in hand with rebuilding engines in a tense but well-orchestrated effort to make the next round.

Petersen Publishing Company photographer Pat Brollier captured a whole different kind of NHRA pit action nearly 50 years ago when he came upon this scene in a motel parking lot. The first NHRA World Championship finals were under way in November 1965 in Tulsa, Oklahoma, and two Top Fuel teams were doing what they could to stay in the hunt.

Car Craft magazine ran a photo similar to this in its January 1966 coverage of the meet. (This is an unpublished outtake; the El Camino with the engine parts in its bed isn’t in the magazine photo.) The caption with the photo read: “Into the night, the oil burned for Alan Bockla and Logghe, Steffey and Rupp as both teams replaced pistons in the motel parking lot in preparation for the next hectic day of racing.”

Bockla’s hectic day ended early, as his team lost in the first Eliminator round. Rupp, on the other hand, made it all the way to the finals after beating Danny Ongais in the semis with a “good hole shot” and a 7.82-second pass at 200 mph. That, it turns out, was the final round of Fuel racing at the meet, as Rupp’s competition in the final, Red Lang, couldn’t get his rail started.

“Rules call for a car to be disqualified if it passes the staging lane and cannot fire,” wrote Bob Leif. “Lang’s engine popped a few times and only fired when pushed onto the strip, thus losing the hardest way possible [and] making for a big disappointment.”

 

SEMA News—March 2013

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Midnight Oil

The pits at an NHRA drag race today are as much a part of the show as they are a place for work. They’re a maze of 18-wheelers, easy-ups and souvenir booths, where hawking T-shirts and collecting autographs go hand in hand with rebuilding engines in a tense but well-orchestrated effort to make the next round.

Petersen Publishing Company photographer Pat Brollier captured a whole different kind of NHRA pit action nearly 50 years ago when he came upon this scene in a motel parking lot. The first NHRA World Championship finals were under way in November 1965 in Tulsa, Oklahoma, and two Top Fuel teams were doing what they could to stay in the hunt.

Car Craft magazine ran a photo similar to this in its January 1966 coverage of the meet. (This is an unpublished outtake; the El Camino with the engine parts in its bed isn’t in the magazine photo.) The caption with the photo read: “Into the night, the oil burned for Alan Bockla and Logghe, Steffey and Rupp as both teams replaced pistons in the motel parking lot in preparation for the next hectic day of racing.”

Bockla’s hectic day ended early, as his team lost in the first Eliminator round. Rupp, on the other hand, made it all the way to the finals after beating Danny Ongais in the semis with a “good hole shot” and a 7.82-second pass at 200 mph. That, it turns out, was the final round of Fuel racing at the meet, as Rupp’s competition in the final, Red Lang, couldn’t get his rail started.

“Rules call for a car to be disqualified if it passes the staging lane and cannot fire,” wrote Bob Leif. “Lang’s engine popped a few times and only fired when pushed onto the strip, thus losing the hardest way possible [and] making for a big disappointment.”

 

SEMA News—March 2013

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Midnight Oil

The pits at an NHRA drag race today are as much a part of the show as they are a place for work. They’re a maze of 18-wheelers, easy-ups and souvenir booths, where hawking T-shirts and collecting autographs go hand in hand with rebuilding engines in a tense but well-orchestrated effort to make the next round.

Petersen Publishing Company photographer Pat Brollier captured a whole different kind of NHRA pit action nearly 50 years ago when he came upon this scene in a motel parking lot. The first NHRA World Championship finals were under way in November 1965 in Tulsa, Oklahoma, and two Top Fuel teams were doing what they could to stay in the hunt.

Car Craft magazine ran a photo similar to this in its January 1966 coverage of the meet. (This is an unpublished outtake; the El Camino with the engine parts in its bed isn’t in the magazine photo.) The caption with the photo read: “Into the night, the oil burned for Alan Bockla and Logghe, Steffey and Rupp as both teams replaced pistons in the motel parking lot in preparation for the next hectic day of racing.”

Bockla’s hectic day ended early, as his team lost in the first Eliminator round. Rupp, on the other hand, made it all the way to the finals after beating Danny Ongais in the semis with a “good hole shot” and a 7.82-second pass at 200 mph. That, it turns out, was the final round of Fuel racing at the meet, as Rupp’s competition in the final, Red Lang, couldn’t get his rail started.

“Rules call for a car to be disqualified if it passes the staging lane and cannot fire,” wrote Bob Leif. “Lang’s engine popped a few times and only fired when pushed onto the strip, thus losing the hardest way possible [and] making for a big disappointment.”

 

SEMA News—March 2013

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Midnight Oil

The pits at an NHRA drag race today are as much a part of the show as they are a place for work. They’re a maze of 18-wheelers, easy-ups and souvenir booths, where hawking T-shirts and collecting autographs go hand in hand with rebuilding engines in a tense but well-orchestrated effort to make the next round.

Petersen Publishing Company photographer Pat Brollier captured a whole different kind of NHRA pit action nearly 50 years ago when he came upon this scene in a motel parking lot. The first NHRA World Championship finals were under way in November 1965 in Tulsa, Oklahoma, and two Top Fuel teams were doing what they could to stay in the hunt.

Car Craft magazine ran a photo similar to this in its January 1966 coverage of the meet. (This is an unpublished outtake; the El Camino with the engine parts in its bed isn’t in the magazine photo.) The caption with the photo read: “Into the night, the oil burned for Alan Bockla and Logghe, Steffey and Rupp as both teams replaced pistons in the motel parking lot in preparation for the next hectic day of racing.”

Bockla’s hectic day ended early, as his team lost in the first Eliminator round. Rupp, on the other hand, made it all the way to the finals after beating Danny Ongais in the semis with a “good hole shot” and a 7.82-second pass at 200 mph. That, it turns out, was the final round of Fuel racing at the meet, as Rupp’s competition in the final, Red Lang, couldn’t get his rail started.

“Rules call for a car to be disqualified if it passes the staging lane and cannot fire,” wrote Bob Leif. “Lang’s engine popped a few times and only fired when pushed onto the strip, thus losing the hardest way possible [and] making for a big disappointment.”

 

SEMA News—March 2013

INTERNATIONAL
By Linda Spencer

Considering Mexico

Strong Growth and Fatter Pocketbooks Warrant a Closer Look at the Potential in Latin America’s Second-Largest Economy

The SEMA Show is an excellent venue to connect with buyers from more than 100 countries. Pictured here is the annual International Happy Hour bringing together U.S. exhibitors and international retailers and distributors.

Automotive specialty-equipment manufacturers might want to take a look at selling into Mexico, the second-largest export market for the United States.

According to the International Monetary Fund, 85% of the world’s growth—and new customers—over the next five years are located outside the United States, and our neighbor to the South is an increasingly interesting market.

Mexico is the largest Spanish-speaking country in the world, has a population of 116 million and is enjoying healthy economic growth. It also has a growing middle class and is finally witnessing a reduction in the mostly drug-related violence that peaked over the past five years.

Among the positive indicators:

• Economy Strong, Middle Class Growing: In sharp contrast to the economic woes of 2007–2008, when Mexico’s economy shrank by 6%, its economy grew 4% last year—quicker than even Brazil’s. Credit is increasingly available, inflation is under control and more of the population is joining the middle class, according to a new study put out by the Wilson Center based in Washington, D.C.
• Sizable Passenger Vehicle Market and Healthy Annual Sales: Mexico has 20 million motor vehicles in circulation, with strong annual sales of about 1 million.
• Mexicans Love Trucks: Mexican motorists enjoy and use light trucks. Between 2005–2011, 40% of all vehicles sold in Mexico were pickups and SUVs.
• Similar Vehicle Demographics: Many of the vehicles sold in Mexico are the same models that sell well in the United States. Between 2005–2011, the best-selling pickups in Mexico were Ford’s F-150 and F-250, with 232,810 units sold. The Chevrolet Silverado was also a top model, with 164,928 sold during that period. Jeep sales were also strong, with 145,397 sold between 2005–2011, and Ford also sold 13,511 Mustangs between those same years.

• Mexicans are big fans of musclecars, both classic and more current models. Between 2005–2011, 13,511 Mustangs were sold in Mexico.

  The Automechanika show attracts buyers from throughout Latin America.

  Mexico as an Entryway: The country is an increasingly important gateway to the rest of Latin America. Mexico has free-trade agreements with 44 countries—more than any other country in the world—including the 2004 North American Free Trade Agreement, which eliminated most tariffs between Mexico, Canada and the United States.
• No Argentinian or Brazilian Tariffs: Among the many trade deals negotiated by Mexico is its most recently modified pact with Argentina, which allows Mexico to export up to $600 million in Mexican vehicles to that country without tariffs. Mexico also has a free-trade deal with Brazil. Both Brazil and Argentina are notorious for their high tariffs, but their agreements with Mexico allow vehicles and parts—up to a certain limit—to be shipped to those countries tariff free.
• OEM Production: There are nine manufacturers producing vehicles in Mexico, including Ford, GM, Chrysler, Volkswagen, Toyota, Nissan and others. These days, Marcos Alvarez, business director of Big Country America, is quite optimistic about sales opportunities in Mexico and indirectly to the rest of Latin America. Alvarez notes, “International eyes are on Mexico now under what has been called MEMO [Mexican Moment], as quality, lead times, trust and currency and political stability are bringing back manufacturing from Asia to Mexico.” By selling to the vehicle manufacturers’ Mexican operations, SEMA members can find an additional route to reach South and Central American markets.

There are two excellent upcoming opportunities to explore the Mexican market. For the first, you don’t even need to leave the United States.

The annual SEMA Show, held each year in early November, draws more than 130,000 visitors, and 25% of all buyers attending the trade-only event come from outside the United States, including large numbers from Mexico and other Latin American countries.

Another first-rate automotive event where companies should consider exhibiting is the annual PAACE Automechanika show, which will be held July 10–12, 2013, at Centro Banamex in Mexico City. The 2012 event boasted 14% growth, with 541 exhibiting companies from 20 countries and 19,763 visits by specialized buyers from more than 33 countries.

This year, PAACE Automechanika will feature a specialized vehicle area where the cars will be categorized as “Import,” “Euro,” “Racing” and “Classic.”

For more information about SEMA’s international programs, both year-round and at the SEMA Show, contact SEMA Director of International Relations Linda Spencer at lindas@sema.org.

For more information about PAACE Automechanika, contact paminfo@usa.messefrankfurt.com.