Archive for May, 2007

Going Nuts Over Nuts

Tuesday, May 22nd, 2007

Most truck and SUV accessories on the market cause heads to turn. Shiny chrome, lifts, and performance exhaust systems have all caused occasional neck strains from onlookers. But one ornamental “accessory” flying off the shelves is causing people to react strongly. From laughs of amusement to grimaces of disgust and anger, anatomically realistic testicles dangling from truck and SUV hitches are causing people to, well, go nuts. There are several products out there. Truck Nuts, Big Ballz, TruckNutz and Bulls Balls are a few examples. (Apparently there is enough room in the gonad business to keep multiple manufacturers in business.)

Although these ornamental accessories have been around for a while, recent publicity has caused an increase in sales. You see more of them dangling down the road. And as can be expected, the increase in nuts on the road is causing a backlash. Just this past Sunday, the Arizona Daily Star published a story by Andrea Kelly titled Sexy truck adornments tickle some, bug others. Kelly’s article shares that while some onlookers laugh in amusement, many, especially those with young children, are offended by the ornaments. And yes, legislation even surfaced trying to ban the decadent decorations. Earlier this year, LeRoy Myers, a Republican in the Maryland House of Delegates, filed legislation to ban hitch huevos. And so not to just pick on male genetalia, the bill would have also banned mudflaps with depictions of naked human breasts, buttocks or genitals, with offenses punishable by fines of up to $500.00.

The bill did not become law. In fact, it didn’t even go to the floor for a vote.

I conducted an informal, totally un-scientific poll here at the office. I asked six of my co-workers what they thought of truck nuts. I asked three males and three females. Three of them, two males and one female, thought they were funny. The other three, two females and one male, thought they were disgusting. Dead tie.

So, what do you think? Truck nuts — funny or obscene? Do you think legislators are right in trying to ban them?

Thanks for reading!

Joe Escobar

Three-headed Dog

Monday, May 14th, 2007

The big news this morning is that Chrysler has been sold to the private equity firm Cerberus Capital Management for $7.4 billion.

Cerberus is named after the three-headed creature from Greek mythology that guarded the gates of Hades. Cerberus had a snake for a tail, and was also seen depicted with a dragon’s tail and serpentine mane. Cerberus guarded the gates, ensuring that the souls of the dead could enter but none could exit. It also ensured no living person could enter Hades.

But don’t expect this modern-day Cerberus to just sit at the gate guarding the company. If you know how private equity firms work, you know that this three-headed dog will transform the bowels of Chrysler not with a whine, or even a bark, but with a vicious and determined bite. It will focus on inefficiencies that drag down productivity and profits. It will do everything it can to make Chrysler as profitable as possible, with the ultimate goal of selling the company down the road for a huge return of investment.

I imagine there are a few fat-cats that are terrified by this news of Cerberus purchasing Chrysler. Can you say concessions?

Speaking of concessions, the response by one unions is strange. An Associated Press story that appeared on SFGate.com reports that earlier this year, United Auto Workers President Ron Gettelfinger warned that a private equity buyer would “strip and flip” the company by selling it off in pieces. But apparently Gettelfinger is the one who has flipped. He now says, “We made the pitch all the way home that we wanted the Chrysler Group to stay under the Daimler umbrella but it’s not there. The decision has been made, we’re supportive of it.”

TIme will tell what the transformed company will look like. It will be interesting to see how the transformation affects future Chrysler vehicles.

Thanks for reading.

Joe Escobar

Welcome To Our New Blog!

Tuesday, May 8th, 2007

Welcome to LightTruckBiz.com’s new blog: The Best Trucking Blog You’ll Ever Read! If you are involved in the truck and SUV aftermarket business, this blog is for you. You can expect regular postings with opinions, observations and outlooks on just about every topic that affects our industry. Nothing is sacred. But remember, this blog is nothing without you. With your feedback and comments, we will make this the best trucking blog out there! So without any further adieu, here’s my first posting:

Accessories and OEM Growth

As I read the May 2 eNews letter from SEMA, a particular news item caught my eye. SEMA reported that accessories remain a big part of OEM sales plans. It references several of the keynote remarks made by Robert Lutz, vice chairman, global product development at General Motors.

SEMA’s vice president of Vehicle Technology John Waraniak says one comment of particular interest made by Lutz was that two of the top growth areas that GM is focusing on for increased revenue are electronic services (such as OnStar) and parts and accessories.

This is good news for new car dealers. It means more choices for customers who walk through their doors — more opportunities to upsell.

This could also be good for SEMA members. Aftermarket manufacturers that build strong relationships with OEMs will have the opportunity to sell their products at the time of vehicle purchase.

But what about aftermarket dealers/installers? Well, it depends on your relationship with your local dealers. For those shops that work with dealers, it could mean more potential work (unless the dealerships get into the install business as well). But it could also mean a decline of work for some shops.

OEMs seem to think that aftermarket accessories are a key part of their future growth. How our industry is able to adapt to that transition will determine our success.

Thanks for reading!

Joe Escobar

Editor in Chief

Light Truck and SUV