SEMA Executive Connects Profitability and Personalization with Alternative Business Model

DIAMOND BAR, Calif.--Aug. 1, 2006--John Waraniak, SEMA vice president, vehicle technology, will address Management Briefing Seminar participants in Michigan August 7th and 8th in Traverse City, MI. The Management Briefing Seminars (MBS) is the premiere annual gathering of more than 1,200 auto industry, academic and government leaders addressing critical issues and emerging trends in a setting designed to enhance communications and encourage relationships within the industry. The seminars, directed by the Center for Automotive Research, provide a forum for top industry executives, as well as technical and business leaders to discuss a broad range of issues and challenges facing the future of the automotive industry. Waraniak will participate in two sessions at MBS: "World Class Product-Process Development" and "Low Volume Vehicle Production."

The first seminar details how leading companies are connecting profitability and personalization for growth by integrating people, processes and technology with lean product development practices to meet the increasing demand for high-volume profitability, as well as quick, cost-effective low-volume and specialty vehicle differentiation. "Products, processes and profits are inextricably linked. You cannot be serious about one without focusing on the other two -- and technology is integral to all three," according to Waraniak. "OEMs are reducing the number of vehicle platforms and commonizing groups of components and system interfaces to drive economies of scale and scope and the integration of these economies. Common processes and standard practices can actually accelerate profitable customization. Automakers and tiered suppliers must find the right balance of internal lean product and process development methodologies as well as the integration of aftermarket suppliers and partners to leverage fast-moving trends and high-margin revenue streams. Organizations must play hard, play fast and play to win in the New Automotive Normal."

The second seminar, "Low Volume Vehicle Production," presents case studies, new approaches and collaborative opportunities for OEMs, suppliers, and dealers targeting low-volume specialty and customized vehicles as a means to increase margins and market share. According to Waraniak, "Mass production and mass markets are giving way to increased vehicle personalization and customization. OEMs are looking for products, processes and partners to help them create and launch low volume vehicles for fragmenting markets and still make a profit. The future is about delivering fully-integrated customization while significantly reducing capital investment for tooling and time to profit. But it takes a new manufacturing and marketing mindset to make it work."

Waraniak's remarks will focus on an alternative business model and provide details of the Post-Production Aftermarket Business Model, or what is becoming known as the "SEMA Model." "Early collaboration between OEMs and SEMA suppliers can make the difference between built-in profits and reverse-engineered costs. Customization validates the platform's authenticity. OEMs make cool products. SEMA companies help make those products cool."

Auto companies and leading dealers like Galpin Motors and Galpin Auto Sports embracing the SEMA model are expanding and moving forward with new-found opportunities for increasing vehicle and product sales through specialty parts, installers and restylers. With new vehicle margins eroding, OEMs, suppliers and dealers are searching for new profit centers and alternative business models for expansion. Growth, however, does not lie in disrupting large over-served mass markets alone, but in disrupting underserved markets and emerging segments focused on vehicle personalization and accessorization." This seminar will highlight pathways for OEMs and SEMA companies to leverage their competitive capabilities and work with complimentary partners and vehicle system integrators to deliver profitable personalization.

"Our mission at SEMA is to help our members' businesses succeed and prosper. The two major challenges facing our member companies," Waraniak states, are "vehicle complexity and legislation." As a proven leader who has worked with automotive, aerospace and consumer product companies for more than 20 years. Waraniak, based in Detroit, will serve as the primary contact for SEMA members to reach OEM and Tier One suppliers on technical issues, as well as expand SEMA's technology conferences and workshops to connect members with leading academic, industry and research organizations like the Center for Automotive Research.

"Michigan is still the global automotive epicenter for automotive research and development. It's important for us to have an increased visibility and presence in the Detroit area to complement our presence in California and Washington, D.C., and to help support our SEMA members by accelerating the development of aftermarket systems standards and OEM technology transfer initiatives," said Waraniak. "MBS provides an excellent opportunity for us to help position the value and mutual benefits our members and the SEMA Model can provide the world's leading auto companies. SEMA member companies represent the grassroots enthusiasts and aftermarket leaders of the auto industry. It's a privilege for SEMA to be on the MBS agenda with Mark Fields (Ford), Rick Wagoner (General Motors), Gary Convis (Toyota), Jim Morton (Nissan), Eric Ridenour (Chrysler), and John Mendel (Honda)."

SEMA, the Specialty Equipment Market Association founded in 1963, represents the $34 billion specialty automotive industry of 6,817 member companies. It is the authoritative source for research, data, trends and market growth information for the specialty auto parts Industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger and recreational vehicles. SEMA's flagship event is the SEMA show held annually. Over 1,400 vehicles representing 35 nameplates and 14 OEMs, as well as 4,500 dealers, 3,000 press and 130,000 credentialed members from over 100 countries attended last year's SEMA Show. This year's event "American Muscle: Past, Present, Future" event is the 40th anniversary. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA 91765, tel: 909-396-0289, or visit www.sema.org and www.enjoythedrive.com.