Light Truck and SUV Blogs

Last week there was news of GM closing Midwest plants that build light trucks and SUVs. This forecast of decreased production, along with the higher cost of fuel, has triggered a reflection on similar circumstances we have experienced in the past. Higher fuel costs have plagued us for some time now. In the midst of this adversity the automotive and aftermarket industries have adapted and brought about change in the light truck and SUV industry, both from the OEMs and the accessory suppliers. There is very little doubt that we will need to build our vehicles and accessories lighter, stronger and much more fuel adaptive and efficient.

We experienced a revolution in products and vehicles in the late 1980s and 1990s when GM redesigned their pickups. The other manufacturers followed suit and the result to date has been more advanced, safer, lighter, user-friendly and significantly more economical vehicles. Now it is projected that the 2009 models are following this formula.

The only way we are going to transcend the difficulty and “challenges” we face is to match these changes with innovation, modernization and the desire to create a new climate to supply new and improved products and to find advanced ways to communicate these changes to the public. I recently had a discussion with a supplier who was prototyping a new product specifically geared to addressing the problem of better fuel economy for the outdoor market; it will also have impact in the light truck market. It is this enterprising innovation that we will again need to call upon from our industry. One of the challenges he stated was, “How do I get the word out?”

I am optimistic that we are creating and witnessing a revolution of sorts, not only in the materials, processes and improvements used to manufacture vehicles and aftermarket accessories, but also in our methods of marketing, selling, advertising and communication to both consumers and business-to-business clientele. It is to this particular aspect of change that I propose a new paradigm for the marketing and communication aspect of our industry. If we are asking the manufacturers and dealers to transform their approach then we must also be a part of the solution to these “challenging times.”

Please share your thoughts on your own of revolution of sorts.

U.S. Transportation Secretary Mary E. Peters proposed another increase in fuel efficiency standards on April 22. In the last six years, the Bush administration has increased the nation’s Corporate Average Fuel Economy (CAFÉ) standards twice already, including an increase in mileage requirements for light trucks.

Peters proposed that cars and light trucks increase by 4.5 percent each year starting in 2010 through 2015 — overall equating to an additional 25 percent total increase. This is in addition to the 3.3 percent base increase proposed last year by Congress.

According to Peters the proposal will save an estimated 55 billion gallons of fuel. “Another benefit according to Peters is a reduction in carbon dioxide emissions estimated at 521 million metric tons.” She says the plan will save America’s drivers more than $100 billion in fuel costs over the lifetimes of the vehicles covered by the rule.

One organization, 40mpg.org, feels that this additional step is not enough and that the government should shoot for an even higher standard.

They say, “Why is Washington shooting so low on mpg? We already know that much higher levels of fuel economy are possible faster, and others agree that the time for half solutions has passed … With gas prices continuing to rise each week to historical records across the country, including $4 gas in California, we need to push for the maximum achievable fuel efficiency ASAP.”

With fuel prices rising, I can’t imagine why anyone wouldn’t want increased gas mileage. The question though is at what price? Will the fuel economy upgrades come at the expense of aftermarket sales? Will performance shops’ bread and butter become standard equipment on cars and trucks to meet these guidelines if Congress adopts Peters’ recommendations? Another option might involve attaining the mpg standard at the expense of horsepower or durability. Will trucks be made with less horsepower to meet the standard or potentially made with lighter-weight materials? There may be other ways to meet the standard as well that I haven’t thought of. Post your opinions and thoughts today.

Wouldn’t it be great if every company in the automotive aftermarket could double the price of their products and services without an increase in fixed costs and still have endless customers clamoring for products? What if on top of that, the U.S. government kicked all of our businesses billions of dollars in tax breaks to figure out ways to make and sell more automotive parts, accessories and services?

That is exactly where big oil is currently. With capitalism governing the price of a barrel of oil, there may be little we can do about the price we pay at the pump. Some people complain that the government should do more to lower the price but I am not sure if that is even possible because there are other countries in line to buy that oil for the inflated prices if the U.S. doesn’t.

Another thing to consider is just two weeks ago, the Associated Press reported that there are gasoline shortages in China and when oil companies offer oil for sale, that oil is going to go to the highest bidder. Sadly, if China is willing to pay $110 a barrel, then unless we are willing to do the same, the oil goes to China. The last thing we need are oil shortages like we saw in the 80s.

I guess the government could lower taxes tagged on gasoline but that would come at the expense of the quality of our bridges and roads. In the last year, we’ve seen news reports that the nation’s bridges are in a terrible state of disrepair, so that doesn’t seem a viable option.

The oil-producing companies have learned that they can produce the same amount of product despite increased demand from developing countries and get paid far more for the same amount of effort they have historically produced. Realistically, they call this working smarter instead of harder. We would do the same if we could, but that doesn’t mean we have to like it. It appears high gasoline is here to stay.

The real grind is the $18 million in tax breaks oil companies currently enjoy. Senior executives from five of the major oil companies went before a congressional committee last week to explain why they still need these tax breaks. Exxon Mobil Corp., Shell Oil Co., BP America Inc., Chevron Corp. and ConocoPhillips, will testify. The Associated Press reports these companies earned a total of $123 billion last year from soaring oil and gasoline prices. Do they really need those tax breaks?

The House of Representatives has approved legislation two times in the last year to end the tax breaks. The revenue was supposed to instead go to booster renewable fuels, wind and solar power. Unfortunately, neither of the House initiatives passed the senate.

I wonder if the tax breaks are taken away, will the oil companies merely pass this additional cost on to consumers driving prices up even higher. The saying, “nothing comes for free” comes to mind.

BY DANA NELSEN

The CEOs for Ford and Chrysler both said this week that they have prepared their companies for a lengthy downturn in the auto industry in 2008. They believe the credit crisis and the rising price of gas will continue to impact sales in the first two quarters.

While new trucks sales may take a dip with $4-per-gallon gasoline, I think this may present real opportunities for shops who market performance upgrades—especially in markets where competition is fierce. Let’s face it, many people will not only need that truck during their average workday, but will also need that truck to get to and from work each day.

When things get a little tougher, many businesses cut their advertising. That means less competition for competitive advertising for those companies that continue to try to reach consumers with an advertising message.

There are plenty of people out there who can afford and need the aftermarket products we sell. When it comes time for those customers who are still buying, despite the economy, who do you think they will go to when it comes time to make a purchase? The company that has dropped off the radar, or the company with the funny radio commercials they hear on the way to and from work?

I’d really like to hear how all of you are doing this year on performance-related product sales. When you get a moment, feel free to post on the blog who you are, where you’re located, and if these types of sales have increased in your area.

Thanks for reading Light Truck & SUV magazine!

The Light Truck and SUV staff was out in force at the SEMA Spring Expo last week in Indianapolis, IN. Project Tundra was on display at our booth, showcasing the customization we did last year for the SEMA unveiling in Vegas.

In the past, I have heard from different shop owners that there is no longer any innovation in the aftermarket business. Any new products, one owner observed, are just copies of existing products. “There just aren’t any new and innovative products” he said.

That seems to be changing. Our current economic situation is forcing a shift in the industry. As truck and SUV sales continue to decline, aftermarket dealers are looking for ways to evolve their businesses. And it seems like manufacturers are lining up help them.

Light Truck and SUV publisher Bob Carnahan shares, “I have been to a lot of SEMA shows and SEMA Spring Expos. I was impressed at last week’s show with the amount of innovative products to be seen.”

Here is a list of the LTAA award winners from the SEMA Spring Expo:

Best New Product Over $500 – Roll N Lock for the Roll N Lock E Series 

Best new Product Under $500   –  UnderCover for the Swingcase 

Best Point of Purchase Display  – Agricover for the EZ Retriever / Stocking Display 

2008 Ford Styling Award: Best Use of Accessories on a Ford Truck or SUV - (2 awards) Kelderman Air Suspension and Westin Automive Products 

LTAA Retailer of the Year - John Chamberlain, Action Group of Companies 

LTAA Hall of Fame - Anne Johnson   LTAA Chairman’s Award - Todd Yeoman   

On another note, according to various news sources, it seems we could be seeing a major shift in consumer new vehicle purchasing trends towards crossover vehicles. Several different news stories point to this trend.  

Is it too early for our industry to start making a shift towards more crossover products? Will new product innovation help offset declining truck and SUV sales? What do you think?

Thanks for reading, and we welcome your feedback.

Joe Escobar

I am excited to welcome two industry veterans to the the Light Truck and SUV and RV Trade Digest (another Cygnus Business Media publication) teams.
Bob Carnahan has been named the new publisher of Light Truck and SUV and RV Trade Digest, and Dana Nelsen has been named the new editor of both publications. Bob comes to us with more than 15 years experience in the light truck and SUV industry (eight of those years in the publishing and trade shows). Nelsen has worked within the RV industry for several years and is the former editor of Toy & Hauler Business magazine. Together, they bring a huge amount of experience to both publications.
Starting with the January/February issue of Light Truck and SUV, I will hand over editorial responsibility to Dana as he gets up to speed on the industry. During the transition, I will work closely with both Bob and Dana to ensure a smooth transition.
What changes can you expect as a result of this transition? Well, nothing drastic. Light Truck and SUV’s editorial offering is based on feedback from you, the readers. And you can expect the new team members to continue to provide the quality editorial you have come to expect.
Thanks for reading.
Joe Escobar

One of the dangerous things about being the Editor in Chief of Light Truck and SUV is that I am exposed to a lot of aftermarket products.

I must confess my family is a truck and SUV family. We have a Ford Ranger, a Ford F-150, a Ford Explorer and as of last week, a new (to us) GMC Yukon Denali.

Living in Wisconsin, I want to protect the Denali’s interior from the salty slush associated with driving in the Midwest in the winter time. Lund’s Nifty Catch-All floor mats seemed to be the perfect solution (I had seen them at SEMA). They are custom-fit to form to the vehicle with a large lip to contain water, snow and maybe the occasional cup of coffee.

So, I started my research on the World Wide Web (Al Gore’s invention, you know). Lund has a good website. Within a minute or two, I found out that the company does manufacture Nifty Catch-All mats for my model year Denali. Its website also has a tool to locate the nearest dealer, so I punched in my zip code and low and behold, up came a list of nearby authorized dealers.

Since retail prices aren’t listed on Lund’s site, I decided to call one of the nearby Lund dealers to get some more information. When the gentleman answered, I said, “I would like to order some Lund Nifty Catch-All floor mats for my GMC Denali.” I then gave him information on my Denali and asked, ”How much would the mats for my vehicle retail for?”

His first response was, “We carry several different floor mats. They fit most trucks and SUV’s. I would suggest coming into the store to look at them and see if they will work for you. They average about $8.00 a piece.”

“No,” I said. “I don’t want generic mats. I am looking for Lund Nifty Catch-All floor mats. The Lund site lists you as an authorized dealer. Can you order some for me?”

“Oh,” he said. “I do have a Lund catalog. Let me go grab it and see what you need.”

To make a long story short, he wasn’t able to help me out. He couldn’t figure out what part number I needed. His final words of advice were, ”Maybe you should come into the store and look through the Lund catalog yourself.”

Oh, and the price? He didn’t have that either. He said he would have to call Michigan to find out (once I knew which mats I needed for my Denali, of course).

I understand it is difficult to keep up with all the parts available for all the vehicles on the road. But even I told this dealer exactly what product I needed for my Denali, I was somewhat surprised that he was not able to help me out.

The gentleman who “helped” me was friendly enough. But if I was anyone else, and I wasn’t determined to order those particular mats, I might have settled for some generic mats. And that would have meant less profit for his company and for Lund.

Instead, I guess I’ll head over to his shop and browse through the Lund catalog to let him know which mats he needs to order for me.

Thanks for reading,

Joe Escobar

The New York Times reported today that a federal appeals court in San Francisco rejected the Bush administration’s year-old fuel economy standards for light trucks and SUV’s.

The Times says the court rejected the standards because they were not tough enough because regulators had failed to thoroughly assess the economic impact of tailpipe emissions that contribute to climate change.

The three-judge panel of the Ninth Circuit Court of Appeals in San francisco voided the new regulations for 2008-2011 model year vehicles and told the Transportation Department to produce new rules taking into account the value of reducing greenhouse gas emissions.

It seems the courts are now looking at climate change and how current and future regulations contribute to it. As Patrick A. Parenteau, an environmental law professor at Vermont Law School told the Times, “Climate change has ushered in a whole new era of judicial review.”

Should regulators (and the courts) leave light trucks and SUVs alone? If the government were to demand ridiculously high MPG standards on trucks and SUV’s, wouldn’t we lose the utility that drives consumers to purchase them in the first place?

When it comes to mileage standards for light trucks and SUV’s, should it be government regulated or driven by consumer demand?

What are your thoughts?

Another SEMA show has come and gone. My body has recuperated (both mentally and physically) from not only the four days of SEMA, but from finishing the customization of Project Tundra in the week before the show (can you say, “crunch time?”) and ferrying the truck from Wisconsin to Vegas and back. 

SEMA was a huge success for the Light Truck and SUV team. I came away with some great editorial ideas and a lot of new product information. The debut appearance of Project Tundra created quite the buzz in the truck and SUV hall. Dean Loucks, the artist who created the custom paint job for us, says on his website, “Can you handle the attention?” Well Dean, we were quite pleased with the attention your paint job created. It was likely responsible for quite a few neck sprains and dead digital camera batteries at the show.

We would like to thank everyone who participated in our SEMA Squares contest at the show. The winners of the contest were:

• Flat-panel Plasma HDTV — John Sayler, Phaster Motorsports, Henderson, NV
• TruXedo Tonneau Cover — Stephen Buntich, Caruthers Auto Supply, La Canada, CA
• Freedom Grill — Dan Major, Tube Service Co., Phoenix, AZ
• TruckBedz truck bed mattress — Rena Garcia, Rena’s Signs, Brentwood, CA

It doesn’t seem like a whole year has passed since last year’s SEMA show. Last year was my first SEMA, and I made a few rookie mistakes. My first mistake was scheduling appointments 30 minutes apart during the show. My second mistake was wearing dress shoes at the show (even though they were well broken in). Another mistake was not getting enough rest at night (an easy mistake to make in Vegas).

Well, I did learn from my mistakes. I scheduled my meetings in one-hour intervals this year. This gave me plenty of time to make it from one meeting to the next without having to sprint from one meeting to the next. I wore my black Nike sports shoes instead of dress shoes (and my feet thanked me for it). As far as adequate rest goes, I only spent one late night (ahem, early morning) out on the town. It was Halloween night, and I couldn’t pass up spending Halloween on the strip with Dean and Mark from The Art of Design and a couple of coworkers.

Be sure to read each issue of Light Truck and SUV magazine as we bring you product news from the show and highlight our Project Tundra customization.

As far as highlights from Halloween night, all I have to say is, “What happens in Vegas stays in Vegas.”

Thanks for reading!

Joe Escobar

Where has the time gone? It seems like just a few months ago that I was at my first SEMA, walking around with numb, blistered feet. For a first timer, it can be an overwhelming experience. Heck, it can be overwhelming for a veteran as well. I came back from my first SEMA with a lot of news and product information and a digital camera loaded with pics of products and some awesome project vehicles.

Here are a few tips I learned from my first SEMA show:

• Wear comfortable shoes.
• It is impossible to walk the whole show floor — have a game plan and stick to it.
• Get plenty of rest.
• In the absence rest, at least make sure you have comfortable shoes.
• Drink plenty of fluids (and no, adult beverages do not count).
• Did I mention to wear comfortable shoes? 

So, with less than two weeks left to go until this year’s SEMA show, we are very busy here at the magazine. In addition to the usual activity centered around planning for SEMA, we have additional projects to keep us busy, namely completing our vehicle customization – Project Tundra. We picked up the truck from The Art of Design this morning, and it is in Chicago at FlexFuel U.S. for an E-85 conversion. From there, it goes to Maxxsonics for completion of the sound system. We get it back to the office on Thursday for completion of the installs. It’s crunch time.

If you are going to be at SEMA, be sure to stop by our booth (31921) and see the completed project. You can also read more about Project Tundra in upcoming issues of Light Truck and SUV and on www.LightTruckAndSUV.com.

Thanks for reading,

Joe Escobar