DIAMOND BAR, CA (05.11.23) – The U.S. Environmental Protection Agency (EPA) released a proposal last month for strict new federal multipollutant emissions standards for

light- and medium-duty vehicles. The proposal would decisively tilt the U.S. car and truck market toward electric vehicles (EVs) over the next decade. The new standards would initiate for the ’27 model year and gradually increase through the ’32 model year. 

If the EPA drafts standards are implemented by 2032 as proposed, the agency anticipates that two-thirds of all new-car sales in the United States would be EVs. This large-scale shift would significantly disrupt automotive industry supply chains and potentially eliminate large numbers of jobs in vehicle manufacturing, parts production and repair shops. Ford alone estimates a 30% labor reduction in its transition to EVs. 

Likewise, much of the automotive specialty-equipment market–the parts and modifications you make to your vehicle once it leaves the car lot–is built around the internal combustion engine. The $51 billion aftermarket industry supports more than one million jobs in U.S. automotive manufacturing. The automotive specialty-equipment market has also led the way in alternative fuel innovations such as hydrogen, replacing older engine technologies with newer, cleaner versions, and even conversions of older internal combustion engine-based cars to new electric, hydrogen and other alternative fuels. Yet none of that is considered part of the broader plan to reduce greenhouse gases and criteria pollutants from automobiles. 

Small businesses would be the most vulnerable to the disruptions caused by a seismic shift to battery-electric vehicles. According to the most recent Census Bureau tally of the almost 1,200 auto engine and transmission parts suppliers in the United States, more than 60% had 20 or fewer employees. These companies often make specialized components, operate on tight margins and rely on long-term contracts. They employ American workers with technical skills and create the often politically celebrated blue-collar jobs. 

Large automakers are losing billions a year in their EV programs, despite the massive financial infusion of taxpayer dollars they are receiving from the government and subsidies to purchase EVs. If they are struggling, how are small businesses expected to survive? 

Clean air and the reduction of greenhouse gases are goals everyone can acknowledge. That said, when governments arbitrarily pick technology winners and losers, the marketplace is deprived of choices and the public suffers. Instead of forcing this transition, the EPA should put in place incentives to support a diversified zero-emissions approach that takes advantage of breakthrough technologies across the spectrum. 

Hydrogen, for example, is already being used as a power source in buildings, cars, trucks, forklifts, ships and trains. Hydrogen-powered cars have greater range and faster refueling times compared to EVs and reduce the need for limited-supply materials used in EV battery packs. And clean hydrogen generation is already feasible: The National Renewable Energy Laboratory website identifies five different methods to produce hydrogen economically from sustainable resources. 

Other renewable fuels–including synthetic eFuels that allow legacy vehicles to operate in a carbon-neutral manner–should also be part of the equation. Where are the government-backed financial incentives for these alternate technologies? 

The market is rightly skeptical of new EV technology, and right now, it simply does not have the infrastructure ready to support EVs. Yet by using multipollutant emissions regulations to force-feed EVs to the market, the government is effectively putting all its eggs into one technology basket. 

The Biden administration should realize that the market’s hesitation to adopt EV technology in the first place proves that putting the government’s thumb on the scale is not an effective means of persuasion. But instead of adjusting course to let the market forge the transition, the administration is effectively doubling down on a flailing policy. 

Meanwhile, a dozen states have recently introduced or passed legislation or resolutions affirming support for the internal combustion engine and for the government to remain technology-neutral in the debate to reduce automotive emissions. In Virginia, for example, it was only the state’s slim Democratic Senate majority that stymied Governor Glenn Youngkin’s campaign platform issue to repeal Virginia’s internal combustion engine ban. 

The EPA’s emissions proposal is misguided and counterproductive. Instead of trying to force a clean energy transition, the Biden administration should support the work of innovators and protect the small-business owners and those they employ by letting the market and innovation drive solutions to the environmental challenges we all seek to solve. 

For more information, visit sema.org/EPA-Proposed-Greenhouse-Gas-Rules. 

This column originally appeared in the Washington Examiner.

DIAMOND BAR, CA (05.10.23) – Three industry leaders are joining the prestigious SEMA Hall of Fame: Steve Ames of Ames Performance Engineering, John Iannotte of Kunzman & Associates, and Mitch Williams, who recently left StopTech Performance Brake Systems to join Rigid Industries.

Created in 1969, the SEMA Hall of Fame honors trailblazers who have significantly enhanced and contributed to the automotive industry. Its members are considered heroes, and each individual has a unique story to tell. The industry is invited to join in honoring the new SEMA Hall of Fame members during the 2023 SEMA Leaders & Legends Gala in Anaheim, Calif., on July 21. More details on the inductees will be shared during the Gala.

Steve Ames: Having developed a fascination for cars at a young age, Steve Ames began drag racing after earning an engineering degree from Columbia University. He started in the parts business by traveling along the East Coast buying New Old Stock (NOS) parts. In 1976 he noticed that Pontiac parts were in particularly high demand and began focusing exclusively on such products. As business continued, Ames realized that demand for restoration parts outweighed that of NOS parts and launched Ames Performance Engineering. He expanded with other companies within the restoration industry, providing much-needed products for growing markets, and became an authoritative voice in the classic car industry. Ames is one of the original founders of SEMA’s Automotive Restoration Market Organization (ARMO), was named ARMO’s Person of the Year in 2007, and is a recipient of the ARMO Lifetime Achievement Award. Ames passed away in December 2020.

John Iannotte: John Iannotte is among the industry’s most known and respected sales reps. As a teenager, he was the first-ever service rep for the Mr. Phone/Mr. Gasket organization. He continued his career playing a key role in the founding and growth of Bob Barker Marketing & Sales and for much of the success at the multi award-winning company Kunzman & Associates. An active member and supporter of the SEMA Manufacturers’ Rep Council (MRC), Iannotte advocated for and became one of the first certified professional manufacturers reps (CPMR) and pushed for standards throughout the industry. He served numerous terms on the SEMA Board of Directors, where he fought legislative issues involving manufacturing tax relief, pushed for industry data standards, supported philanthropic activities, and promoted ongoing education and training throughout the industry. Iannotte continues to serve as a sales rep for Kunzman & Associates, as well as volunteer his time and expertise to many industry initiatives.

Mitch Williams: Mitch Williams has nearly 40 years of industry experience, including six terms on the SEMA Board of Directors – one as SEMA Chairman of the Board. As such, he introduced lean concepts to SEMA and expanded SEMA’s global influence by founding the SEMA International Task Force to connect SEMA members with international business opportunities. He also served on the Joint Operating Committee, providing oversight to the SEMA Show and its partner show, AAPEX. He was a charter member of the SEMA Political Action Committee (PAC) and personally lobbied members of Congress on important industry issues. Williams founded the SEMA Lighting Task Force at a time when NHTSA was targeting lighting companies. In addition to nearly 20 years with Hella, Williams held executive positions with Original One Auto Parts, Restoration Parts Unlimited, APR, Dinan Corp., Xstream Trucking, StopTech, and recently joined Rigid Industries as its president.

Ames, Iannotte, and Williams will be formally introduced during the 2023 SEMA Leaders & Legends Gala in Anaheim, Calif., on July 21, at which time newly elected and outgoing SEMA Board members will also be honored. All SEMA members and industry professionals are invited to join the celebration by purchasing tickets at www.sema.org/gala.