WEBVTT - SEMA CEO Mike Spagnola and BMW's New X5 0:00:02.480 --> 0:00:10.360 Bloomberg Audio Studios, Podcasts, radio News. I'm Hannah Elliott and 0:00:10.400 --> 0:00:11.080 I'm Matt Miller. 0:00:11.240 --> 0:00:12.680 This is Hot Pursuit. 0:00:17.280 --> 0:00:18.959 I'm Hannah Elliott and. 0:00:18.880 --> 0:00:19.600 I'm Matt Miller. 0:00:19.760 --> 0:00:21.240 This is Hot Pursuit. 0:00:22.239 --> 0:00:25.239 Coming up on today's podcast, we have got the head 0:00:25.360 --> 0:00:28.920 of SEEMA with us and the head of the American 0:00:29.400 --> 0:00:32.400 f i A delegation. Am I saying that right? 0:00:32.440 --> 0:00:32.720 Matt? 0:00:33.880 --> 0:00:36.919 Yes, I believe it's the mobility uh section of the 0:00:37.040 --> 0:00:40.040 f i A. But yeah, Mike Stagnolo joins us, and 0:00:41.520 --> 0:00:46.040 I am a huge fan of aftermarket modding. 0:00:46.560 --> 0:00:49.200 I mean, you know, nothing serious, but. 0:00:49.240 --> 0:00:52.720 Like as soon as I get a bike, I'll change 0:00:52.760 --> 0:00:53.960 the cams. 0:00:53.720 --> 0:01:00.920 Or you got an exhaust for the. 0:01:00.800 --> 0:01:03.840 My BMW want to change. Yeah, it's the trim and 0:01:04.440 --> 0:01:08.160 we have to make an exhaust for it. Yes, exactly so. 0:01:08.640 --> 0:01:10.720 And also I really want to go to the SEMA 0:01:10.959 --> 0:01:11.440 Car Show. 0:01:12.040 --> 0:01:13.039 I've never been to it. 0:01:13.040 --> 0:01:16.760 It is your spiritual home. I think you if you go, 0:01:16.840 --> 0:01:20.560 you will never leave. I think more than anything, this 0:01:20.640 --> 0:01:24.800 is truly you. Your mind will explode. It is it's 0:01:24.800 --> 0:01:28.680 really intense. It's it's ninety nine percent men. I know 0:01:28.760 --> 0:01:32.440 we talked with Mike about women, but it's a it's 0:01:32.840 --> 0:01:33.920 bro heavy. 0:01:35.120 --> 0:01:35.479 Let me. 0:01:37.160 --> 0:01:40.240 Yeah, I know, this is your wheelhouse, That's what I'm saying. 0:01:42.959 --> 0:01:47.319 Not the problem at all. Yeah, No, it's great. It's great, 0:01:47.319 --> 0:01:50.080 and it's very inspiring. You know, you got people who 0:01:50.160 --> 0:01:52.720 have worked for years on the things that they're displaying there. 0:01:52.720 --> 0:01:53.360 It's very cool. 0:01:54.320 --> 0:01:56.520 Yeah, that's that's what I really am going to get 0:01:56.560 --> 0:02:02.400 into because I for many years I was trying to 0:02:02.760 --> 0:02:07.600 modify my Ducati Monsters with rear sets that made it 0:02:07.640 --> 0:02:10.760 possible for a guy with super long legs to ride, 0:02:10.800 --> 0:02:14.560 you know, and there just aren't very many choices out 0:02:14.600 --> 0:02:15.480 there for people who. 0:02:15.400 --> 0:02:16.040 Want it taller. 0:02:16.080 --> 0:02:19.399 Everybody wants rear sets that are higher because they want 0:02:19.400 --> 0:02:23.280 to be race guys, right, And I always think about 0:02:23.320 --> 0:02:25.920 making them myself, but in order to make it work financially, 0:02:25.960 --> 0:02:29.920 you got to make like thirty or eighty, you know, 0:02:30.280 --> 0:02:34.200 to sell some of them. I never really have gotten 0:02:34.200 --> 0:02:36.280 that far down the rabbit hole, but maybe I would. 0:02:36.440 --> 0:02:39.680 Maybe I would. Well, you know what else do we have? 0:02:39.720 --> 0:02:43.600 What else? Well, you've got a story on this terminal. 0:02:43.760 --> 0:02:48.160 Yes, it's kind of about how Eve's killed the Halo car. 0:02:48.400 --> 0:02:51.200 The headline is that Portia and other luxury car icons 0:02:51.240 --> 0:02:54.520 are losing appeal in China. But really the story is 0:02:54.560 --> 0:03:00.520 about how EV's and ev dreams in China really have 0:03:00.880 --> 0:03:04.600 had quite a cooling effect on the halo cars. And 0:03:04.760 --> 0:03:08.040 you know, as you know, halo cars aren't just any supercar. 0:03:08.200 --> 0:03:10.519 They're not just a sports car. It's a very specific 0:03:11.040 --> 0:03:14.600 but also vague kind of car that used to be 0:03:14.720 --> 0:03:18.840 really prevalent. I mean, every major automaker would have a 0:03:18.880 --> 0:03:21.880 halo car. Obviously, the halo is what brings people into 0:03:21.919 --> 0:03:26.000 the brand, brings people into the showroom. But this piece 0:03:26.080 --> 0:03:29.000 kind of looks at why we don't really see I mean, 0:03:29.040 --> 0:03:33.040 Audi just had their new Halo, the new Voalai. That 0:03:33.200 --> 0:03:36.520 is maybe an outlier these days, right. 0:03:36.480 --> 0:03:40.120 I guess in part because people don't always go to 0:03:40.200 --> 0:03:41.400 the showroom anymore. 0:03:42.480 --> 0:03:44.440 You have everything you need to see you can see 0:03:44.800 --> 0:03:47.080 on social media now you don't even need it. You 0:03:47.080 --> 0:03:48.480 don't even need to go to buy it. 0:03:49.560 --> 0:03:50.600 I don't think I've. 0:03:51.880 --> 0:03:54.480 Bought a car from a showroom since like twenty ten. 0:03:55.560 --> 0:03:58.560 Yeah, I totally believe it. And the other thing too, 0:03:58.760 --> 0:04:02.640 is I kind of think Tesla had a really big 0:04:03.240 --> 0:04:06.920 part to play in this cooling effect of halo cars 0:04:06.960 --> 0:04:11.280 because when Tesla came out with ludicrous mode. That basically 0:04:11.360 --> 0:04:16.039 meant any grocery getter, Sedan, Tesla or EV for that matter, 0:04:16.040 --> 0:04:19.960 because it's it's set a precedent could embarrass a Lamborghini 0:04:20.240 --> 0:04:24.760 in a drag race. Speed became a commodity, and speed 0:04:24.839 --> 0:04:28.279 no longer, you know, was reserved only for supercars and 0:04:28.320 --> 0:04:33.440 Halo cars and the top sports cars. Speed now is everywhere, 0:04:33.920 --> 0:04:37.480 and that kind of meant in a way, it became 0:04:37.560 --> 0:04:38.280 less special. 0:04:40.680 --> 0:04:44.359 So it is true, yeah, yeah, yeah, but doesn't it 0:04:44.400 --> 0:04:48.640 make some other aspects of car ownership or usage more special? 0:04:48.680 --> 0:04:56.120 I mean, do you such as think that authenticity, you know, heritage? 0:04:56.640 --> 0:05:00.839 Apparently this is this is the interest. This is the 0:05:00.960 --> 0:05:05.839 interesting thing. You know, Chinese buyers really care about the 0:05:05.920 --> 0:05:11.120 latest technology, about AI and about you know, whether they 0:05:11.120 --> 0:05:13.120 feel they're getting an affordable car. And the thing is, 0:05:13.200 --> 0:05:15.599 China's crack that code. So now you have all these 0:05:15.640 --> 0:05:19.599 domestic to China automakers that are making these things that 0:05:19.680 --> 0:05:23.039 Chinese buyers are buying, and all of a sudden, you know, 0:05:23.480 --> 0:05:27.960 all of the German and Western brands are really struggling 0:05:28.320 --> 0:05:33.479 to compete. It's been interesting to watch it happen. 0:05:34.560 --> 0:05:40.799 So the main message of this story really is China. 0:05:41.560 --> 0:05:45.719 Like, wherever China goes, there goes the global car market. 0:05:45.960 --> 0:05:46.159 Right. 0:05:46.160 --> 0:05:47.680 You could say that. I think you could say that 0:05:48.080 --> 0:05:51.200 at this point. My big question is, and I don't 0:05:51.360 --> 0:05:53.560 that's a great point, Matt, I don't say it in 0:05:53.600 --> 0:05:56.359 this piece, but when are we going to see Chinese 0:05:56.400 --> 0:05:58.559 cars in the US. That would have been a question 0:05:58.600 --> 0:06:02.840 for Mike, because do you think it's only a matter 0:06:02.880 --> 0:06:03.920 of time or do you think never? 0:06:04.000 --> 0:06:08.680 Never, never, No, definitely, I mean we already have in 0:06:08.720 --> 0:06:10.279 the Pollstars. 0:06:09.640 --> 0:06:14.880 And in the US. But that's great. 0:06:15.160 --> 0:06:17.000 I saw that, but. 0:06:18.880 --> 0:06:22.040 You can see it seeping in here and there, and 0:06:22.240 --> 0:06:27.920 at some point an American consumer, especially in southern California, 0:06:28.640 --> 0:06:32.600 is going to have experienced fantastic Chinese products on vacation 0:06:32.680 --> 0:06:37.080 in Mexico and see the price tags so much lower 0:06:37.120 --> 0:06:41.320 than US automobiles and just demand it. I mean, why 0:06:41.560 --> 0:06:44.520 do you Why would we force our own consumers to 0:06:44.560 --> 0:06:47.440 pay thirty or forty or fifty thousand dollars to buy 0:06:47.520 --> 0:06:52.200 a Korean car when the consumers here could spend twenty 0:06:52.240 --> 0:06:55.440 thousand dollars for a better product just because we don't 0:06:55.480 --> 0:06:56.880 like China. 0:06:57.720 --> 0:07:01.640 Correct. And also, let's not Forget is also selling buses 0:07:01.680 --> 0:07:05.239 here already. There are fleets of fleets of BYD buses 0:07:05.560 --> 0:07:08.279 in the US operational I guess I don't know if 0:07:08.279 --> 0:07:12.880 they're actually selling them here, but they are operating here already, right. 0:07:13.480 --> 0:07:17.559 Yeah, So I mean I imagine it'll come, not during 0:07:17.560 --> 0:07:24.360 this administration, but at some point, like a pragmatic economist 0:07:24.680 --> 0:07:29.120 is going to run the country and uh, and we'll 0:07:29.120 --> 0:07:32.680 all be we'll all be given freedom of choice. But 0:07:32.840 --> 0:07:33.960 not now, obviously. 0:07:34.320 --> 0:07:36.400 Now, Matt, I have to change a subject because I 0:07:36.440 --> 0:07:40.280 just remembered you've had a baby. We should have start. Oh, yes, 0:07:40.440 --> 0:07:43.800 top the top. This is the most important thing I did. 0:07:44.000 --> 0:07:47.240 We made a new one, and thank you very much. 0:07:47.280 --> 0:07:51.840 Little Freddie is here so happy. Uh And yeah, you 0:07:51.880 --> 0:07:55.680 know I got I had purchased this VMW specifically for 0:07:55.720 --> 0:07:59.320 that purpose. But then my wife said the suspension is 0:07:59.360 --> 0:08:03.720 too stiff and we had to take Yeah, she said 0:08:03.720 --> 0:08:07.280 it's too low and the suspension was too stiff to 0:08:07.360 --> 0:08:09.880 take her to the hospital in it no way. We 0:08:11.320 --> 0:08:14.200 took the Mercedes GLS instead, which turned out to be 0:08:14.280 --> 0:08:15.960 a great choice for the trip. 0:08:16.320 --> 0:08:19.080 You know, I did not know that. That's really funny. 0:08:19.640 --> 0:08:22.440 That's yeah, I mean, Mary, you knows what she wants 0:08:22.800 --> 0:08:26.280 and what she needs exactly. Got to respect that. So 0:08:26.320 --> 0:08:26.840 that's great. 0:08:27.880 --> 0:08:29.800 But yeah, I've had card the kids around in my 0:08:29.880 --> 0:08:31.760 new car. I've been carding them around right now in 0:08:31.760 --> 0:08:34.720 an M five, And I won't talk too much about 0:08:34.760 --> 0:08:37.000 it because I want to wait until you have a 0:08:37.080 --> 0:08:40.520 chance next week to drive, because you just got your 0:08:40.640 --> 0:08:41.680 M two, right I just. 0:08:41.559 --> 0:08:43.480 Got the M two delivered to the house. I haven't 0:08:43.480 --> 0:08:46.160 even seen it because i'm at the newsroom right now, 0:08:46.160 --> 0:08:48.840 but I'm very excited to drive it over the holiday weekend, 0:08:49.160 --> 0:08:51.079 and then after that, I'm also getting the M five. 0:08:51.559 --> 0:08:53.600 So we're gonna have a lot to talk about in 0:08:53.640 --> 0:08:54.760 BMW lands. 0:08:54.520 --> 0:08:56.880 A lot of exactly, and we have the new X 0:08:56.920 --> 0:08:57.800 five to talk about. 0:08:57.880 --> 0:08:59.720 Let's discuss. 0:09:00.000 --> 0:09:00.920 I hated quite a stir. 0:09:02.040 --> 0:09:05.000 What's your What was your knee jerk reaction when you 0:09:05.080 --> 0:09:05.520 saw it? 0:09:06.440 --> 0:09:11.720 My knee jerk reaction. The first picture I saw was 0:09:11.960 --> 0:09:14.680 very positive. I was like, Oh, I really like the 0:09:14.720 --> 0:09:17.760 way that looks. But you know what, I'll say, I 0:09:17.800 --> 0:09:21.199 felt the same way about the M two When this 0:09:21.280 --> 0:09:24.000 new M two came out and everybody else hated it 0:09:24.520 --> 0:09:28.000 for some reason, I just like the blockie design on 0:09:28.040 --> 0:09:30.199 the new X five. I like the two thousand and 0:09:30.240 --> 0:09:32.479 two kidneys. 0:09:33.000 --> 0:09:35.319 I think the X headlights are cool. 0:09:35.360 --> 0:09:38.440 I think the X headlights are super cool. I love those. 0:09:38.440 --> 0:09:39.199 Those are awesome. 0:09:40.200 --> 0:09:41.520 But you don't love the look. 0:09:42.920 --> 0:09:45.280 I need to see this is my qualifiers. I need 0:09:45.320 --> 0:09:47.920 to see it in real life, of course. Okay, my 0:09:48.040 --> 0:09:55.040 knee jerk was what it seems really it seems incredibly 0:09:55.080 --> 0:09:58.199 out of proportion. Also, I feel like I have whiplash 0:09:58.320 --> 0:10:02.480 now because we've gone from these huge beaver teeth grills 0:10:02.640 --> 0:10:04.640 and now all of a sudden, we're getting whiplash and 0:10:04.679 --> 0:10:09.280 it's like a micro grill. Yeah, on something this big, 0:10:09.360 --> 0:10:13.600 it looks like a tiny it's it doesn't necessarily seem 0:10:13.880 --> 0:10:19.080 in proportion to the rest. And also the black space 0:10:19.679 --> 0:10:23.800 below we have those tiny, little, tiny little girls, and 0:10:23.840 --> 0:10:28.800 then we have these gaping air vents, but also that 0:10:28.840 --> 0:10:33.760 are emphasized by just black I think plastic all around 0:10:33.800 --> 0:10:37.480 them to make them look even bigger. Why would you 0:10:37.800 --> 0:10:41.920 emphasize that It's. 0:10:41.679 --> 0:10:43.200 I don't know. 0:10:43.280 --> 0:10:46.359 I think I think that part depends on the powertrain 0:10:46.440 --> 0:10:49.400 you get, And it's pretty interesting that you can now 0:10:49.559 --> 0:10:53.640 choose from six power trains on an X five. 0:10:53.520 --> 0:10:56.440 And by the way, I'm not I'll. 0:10:55.720 --> 0:10:58.600 Bet it's gonna be more because you can choose a 0:10:58.760 --> 0:11:01.880 gas powertrain, but there you'll have the choice of at 0:11:02.000 --> 0:11:05.520 least an inline six or a V eight's. You can 0:11:05.600 --> 0:11:10.040 choose a mild hybrid power train, so I'm guessing that'll 0:11:10.080 --> 0:11:15.440 be the in line six with electric help, and you 0:11:15.440 --> 0:11:19.280 can choose a plug in hybrid. You can choose a 0:11:19.360 --> 0:11:26.000 full electric vehicle, or you can choose fuel cell hydrogen 0:11:26.000 --> 0:11:29.040 fuel cell, and they'll have a diesel version, probably not 0:11:29.120 --> 0:11:31.480 for this market, but for other places in the world. 0:11:31.559 --> 0:11:35.360 So that's seven power choices. 0:11:35.760 --> 0:11:36.160 Yeah. 0:11:36.440 --> 0:11:37.959 Yeah, it's gonna be really cool. 0:11:39.080 --> 0:11:39.959 Yeah, very cool. 0:11:40.000 --> 0:11:43.920 It does seem like this is now reading. This is 0:11:44.000 --> 0:11:49.520 BMW reading the room, which is that people just want options, right, Yeah, 0:11:49.559 --> 0:11:51.400 for sure, don't tell us what we have, and they 0:11:51.400 --> 0:11:52.720 can offer give us an. 0:11:52.600 --> 0:11:55.440 Option, yep, And they can offer options for now. 0:11:55.720 --> 0:11:59.320 I will say that although I love the exterior and 0:11:59.360 --> 0:12:01.720 I can understand and why it's shocking to some because 0:12:01.720 --> 0:12:03.880 it doesn't really look like an X five, It looks 0:12:03.960 --> 0:12:11.240 like a tall station wagon, but the interior is less 0:12:11.520 --> 0:12:15.760 my style. There's no longer gauges in front of the 0:12:15.760 --> 0:12:20.200 steering wheel and for this to be the ultimate driving machine, 0:12:20.800 --> 0:12:24.520 I want to see gauges in front of me showing 0:12:24.559 --> 0:12:28.120 my speed and the engine speed. But it's got this 0:12:28.320 --> 0:12:32.200 like some kind of new peripheral technology where it's way 0:12:32.320 --> 0:12:34.640 up above the dash it goes all the way across 0:12:34.679 --> 0:12:39.240 the car. There's no more BMWi drive system, which I 0:12:39.320 --> 0:12:40.959 absolutely loved the eye drive. 0:12:41.679 --> 0:12:44.679 Here's something that worries me a little bit. And this 0:12:44.760 --> 0:12:48.560 is in keeping with your assessment of what's going on 0:12:48.880 --> 0:12:55.000 above the dashboard. This car already looks like the front 0:12:55.320 --> 0:12:58.360 third is extremely high, like. 0:12:58.840 --> 0:12:59.840 Up not up. 0:13:00.320 --> 0:13:02.360 Maybe it's just the photo I'm looking at, but it 0:13:02.440 --> 0:13:04.880 looks like there's a lot. It's high. 0:13:04.920 --> 0:13:05.439 It looks high. 0:13:05.480 --> 0:13:08.640 It's an suv, it's high. So you have that height 0:13:08.720 --> 0:13:11.680 on top of Now we're adding things on top of 0:13:11.720 --> 0:13:15.600 the dashboard. What does that do to visibility directly in 0:13:15.720 --> 0:13:19.120 front of the vehicle? And is this another example of 0:13:19.440 --> 0:13:22.720 the arms race happening on American highways where everyone's just 0:13:22.760 --> 0:13:28.000 getting matt these huge, massive vehicles and you can't see. 0:13:29.200 --> 0:13:31.360 I honestly don't think it's going to be as I 0:13:31.400 --> 0:13:34.480 don't think you're right about the trend. 0:13:34.920 --> 0:13:37.120 I don't think this x five is going to be 0:13:37.160 --> 0:13:38.440 as tall as you think it is. 0:13:39.760 --> 0:13:42.880 That's fair maybe, but I need to stand but. 0:13:42.960 --> 0:13:45.480 It well, we'll have to see it in person. I 0:13:45.520 --> 0:13:47.000 have Neither one of us really knows, right, But. 0:13:48.600 --> 0:13:53.600 You see increasingly a trend where there's a camera button 0:13:54.080 --> 0:13:56.880 or you can dig into your digital screen and turn 0:13:56.920 --> 0:14:00.000 on a camera that looks in front of you, right, 0:14:00.960 --> 0:14:04.840 I mean I have that car. No, you may not 0:14:04.920 --> 0:14:08.360 want to, but I had one back when I got 0:14:08.400 --> 0:14:12.400 my F one fifty and twenty fourteen. So as these 0:14:13.559 --> 0:14:16.280 vehicles get taller and bigger and you have less of 0:14:16.320 --> 0:14:18.760 a view of the curb in front of you, you know, 0:14:18.800 --> 0:14:20.640 if you're parking, for example, this is what you can 0:14:20.680 --> 0:14:21.320 hit that button. 0:14:21.680 --> 0:14:23.400 Yeah, and then you can see how close it is. 0:14:26.680 --> 0:14:27.000 Hmmm. 0:14:28.040 --> 0:14:29.680 I'll be excited to drive it. I think. 0:14:29.680 --> 0:14:33.160 In terms of the exterior, like that they sort of 0:14:33.240 --> 0:14:34.520 hit hit have hit a reset. 0:14:34.760 --> 0:14:35.360 The grills were. 0:14:35.320 --> 0:14:37.960 Getting bigger and bigger than they're back too. 0:14:38.600 --> 0:14:41.480 They definitely didn't you say this remind you of the 0:14:41.520 --> 0:14:45.520 two thousand and two Yes, exactly, Yeah it does, and 0:14:45.560 --> 0:14:46.720 that was a tiny. 0:14:48.560 --> 0:14:49.119 Yeah. 0:14:49.240 --> 0:14:52.200 The interior has gotten more and more digital and more 0:14:52.240 --> 0:14:55.200 and more screeny and less and less buttony, and I 0:14:55.240 --> 0:14:58.040 think that it will be reset as well. I'll bet 0:14:58.120 --> 0:15:01.160 you that the next generation of this has far more 0:15:01.200 --> 0:15:05.200 physical buttons and controls and fewer screeniness. 0:15:05.200 --> 0:15:07.280 We've seen We've seen that at Porscha, We've seen that 0:15:07.320 --> 0:15:10.680 at Ferrari. They're already dialing back on the buttons, no 0:15:10.760 --> 0:15:14.960 pun intended. So yeah, I thank god someone's listening to everyone. Gripe. 0:15:15.280 --> 0:15:20.400 It's good. The color of the launch this launch color, 0:15:20.680 --> 0:15:22.160 it's like, I don't know if you're seeing it, but 0:15:22.240 --> 0:15:25.960 on the official BMW website it's like a gray green. 0:15:26.240 --> 0:15:28.560 It's kind of cool. Would look great on. 0:15:30.160 --> 0:15:34.080 I like new and different colors, So I'm happy about that. 0:15:34.360 --> 0:15:37.880 I take it. Yeah, that's nice. That's nice, all right? 0:15:37.880 --> 0:15:40.120 Should we should we get into Mike our interview with 0:15:40.160 --> 0:15:43.080 Mike's Sagnola, the head of SEMA. 0:15:43.600 --> 0:15:44.240 Let's do it. 0:15:45.000 --> 0:15:47.760 We're gonna take a quick break and coming up more 0:15:47.840 --> 0:15:51.240 with Mike's Bagnola, the head of SEEMA, and we're gonna 0:15:51.240 --> 0:15:52.840 hear a little bit more about the kind of cars 0:15:52.840 --> 0:15:54.160 he drives in his personal time. 0:15:59.200 --> 0:16:05.040 Let's start with the use. Why don't we about your ability. 0:16:04.760 --> 0:16:09.480 I guess to help small businesses get after market parts 0:16:10.040 --> 0:16:13.320 onto our cars more quickly and more efficiently. 0:16:14.440 --> 0:16:18.400 Yeah, so we're really excited the Trump administration and Lee 0:16:18.480 --> 0:16:23.760 Zelden announced yesterday that our SEAMA garages are now approved 0:16:24.040 --> 0:16:27.480 by the e p A to do emission compliance work. 0:16:27.880 --> 0:16:31.760 And what that means really is we have two emission centers, 0:16:31.960 --> 0:16:34.520 one here in Diamond Bar, California and one in Detroit 0:16:35.040 --> 0:16:37.560 where we help manufacturers kind of get through the emissions 0:16:37.600 --> 0:16:41.320 testing process, which can be daunting. So everything we help 0:16:41.360 --> 0:16:44.240 them with, everything from filling out the application to doing 0:16:44.280 --> 0:16:48.680 the test work to actually submitting that paperwork. And over 0:16:48.720 --> 0:16:52.600 the years it's been really carved. California Resources Board regulated 0:16:53.200 --> 0:16:55.480 and so we do all this work on behalf of 0:16:55.480 --> 0:16:57.600 our members. We test the product, we make sure that 0:16:57.640 --> 0:17:01.120 it passes emissions testing, and then we turn those applications 0:17:01.120 --> 0:17:05.360 into the California Resources Board, where there's always been this 0:17:05.720 --> 0:17:09.600 piece through the EPA that says reasonable basis, so testing 0:17:09.600 --> 0:17:12.880 can be done on a reasonable basis and EPA would 0:17:12.880 --> 0:17:16.399 accept that sort of work. We've been working alongside the 0:17:16.400 --> 0:17:21.000 EPA to actually get recognized by the EPA, and that 0:17:21.119 --> 0:17:24.879 came through yesterday through a bill that President Trump signed 0:17:25.000 --> 0:17:28.520 and that Lee Zilden worked alongside of us to do so, 0:17:28.600 --> 0:17:32.320 now our SEAMA garages, our emissions test centers can actually 0:17:32.560 --> 0:17:36.359 do that testing, help our manufacturers get through that process 0:17:36.880 --> 0:17:39.480 and then it becomes forty nine state legal and so 0:17:39.600 --> 0:17:42.200 what we'll be doing now going forward, and what that means, 0:17:42.200 --> 0:17:45.520 by the way, is that you know, manufacturers spend a 0:17:45.560 --> 0:17:47.960 ton of time and effort and money to develop a 0:17:48.000 --> 0:17:51.199 new product, and once that product's done and once we 0:17:51.320 --> 0:17:54.800 test it, we can wait weeks even months for the 0:17:54.840 --> 0:17:58.800 California Air Resources Board to approve that product. Meanwhile, those 0:17:58.840 --> 0:18:03.600 manufacturers are losing saidills. So now with this EPA recognition, 0:18:04.280 --> 0:18:09.200 we can do that testing, certify that it passes, and 0:18:09.240 --> 0:18:12.760 then give those manufacturers the ability to sell those products 0:18:12.880 --> 0:18:15.560 in forty nine states while we wait for CARB to 0:18:15.680 --> 0:18:20.040 then approve it for California. So it means millions and 0:18:20.040 --> 0:18:22.920 millions of dollars in sales to those manufacturers that we represent. 0:18:23.600 --> 0:18:29.360 So for example, I just got this twenty twenty bmw 0:18:29.720 --> 0:18:35.400 M seven sixty. Nobody makes a cat back exhaust for it. 0:18:36.600 --> 0:18:39.240 But if someone were to try to want to offer 0:18:39.320 --> 0:18:45.000 that product to every you know, seven sixty owner, she 0:18:45.280 --> 0:18:48.280 or he could come to you and say, look, help 0:18:48.359 --> 0:18:52.679 me get this emissions compliant for forty nine states and 0:18:52.720 --> 0:18:55.240 then may I may or may not do. 0:18:55.240 --> 0:18:56.680 The California work as well. 0:18:56.720 --> 0:18:59.159 But that would take an extra year and you know, 0:18:59.160 --> 0:19:00.760 one hundred thousand dollar dollars or something. 0:19:01.040 --> 0:19:02.800 They can do it much faster and cheaper with you. 0:19:03.400 --> 0:19:05.880 Yeah, it's you know, the fees aren't that great through 0:19:05.920 --> 0:19:08.359 California Resources Board. But it can take time. I mean 0:19:08.400 --> 0:19:11.680 we you know, we we have experienced word, it could 0:19:11.680 --> 0:19:12.640 be six months to a year. 0:19:13.400 --> 0:19:16.200 Well, by the way, employing somebody to work with CARB 0:19:16.640 --> 0:19:19.240 and make sure the process goes smoothly is what it 0:19:19.280 --> 0:19:21.119 costs one hundred grand, Right, I'm not saying they have 0:19:21.200 --> 0:19:23.920 to pay right, sources bore one hundred thousand, but you've 0:19:23.920 --> 0:19:26.119 got to continue operating your business and you've got to 0:19:26.160 --> 0:19:27.280 actually try and get it through. 0:19:27.600 --> 0:19:30.040 Yep. Yeah, so we have. We actually have twenty two 0:19:30.040 --> 0:19:33.480 people on staff that do nothing but fill out those applications, 0:19:33.600 --> 0:19:37.240 work with the manufacturers, do the testing, submit the applications 0:19:37.240 --> 0:19:40.280 to CARB. We do that at a loss. But the 0:19:40.359 --> 0:19:43.760 idea is that we are helping manufacturers. We're a trade 0:19:44.000 --> 0:19:47.280 organization and we're here to service the industry and to 0:19:47.280 --> 0:19:49.719 be helpful to the industry. We make our money off 0:19:49.720 --> 0:19:52.520 of our segment trade show and pri I trade shows, 0:19:52.560 --> 0:19:56.080 and then of course we also have a membership dues 0:19:56.440 --> 0:19:58.840 and so we make our money that way, and we 0:19:58.880 --> 0:20:01.840 reinvest that money into the marketplace to help manufacturers and 0:20:01.840 --> 0:20:04.879 to help the industry grow. So even though we do 0:20:05.000 --> 0:20:06.800 charge a fee for that testing and all that, it's 0:20:06.800 --> 0:20:09.520 at a loss and all the form application and all that. 0:20:09.800 --> 0:20:12.159 But the goal is to make sure that our manufacturers 0:20:12.160 --> 0:20:15.159 can safely sell products, not get fined by EPA or 0:20:15.200 --> 0:20:18.159 CARB and get through this process which can be definitely 0:20:18.359 --> 0:20:19.000 very urgency. 0:20:20.080 --> 0:20:21.600 And I mean, how many members do you have to 0:20:21.680 --> 0:20:22.280 pay dues? 0:20:23.040 --> 0:20:25.800 About seven thousand members of pay dues, but you know 0:20:25.920 --> 0:20:28.520 many many more than that that benefit from our all 0:20:28.520 --> 0:20:30.760 of our legislative work, you know, all those sorts of 0:20:30.800 --> 0:20:35.119 things that we do. So you know, it's there to 0:20:35.119 --> 0:20:36.000 protect the industry. 0:20:36.760 --> 0:20:38.560 And what are hardcore race guys? 0:20:39.280 --> 0:20:42.000 What is who are race cars are? More so, it's 0:20:42.040 --> 0:20:44.440 everything from the weekend warrior guy that gets out to. 0:20:45.000 --> 0:20:47.040 His amateur racers. 0:20:47.400 --> 0:20:49.159 It can be amateur racing, but we also get the 0:20:49.200 --> 0:20:52.480 indie car guys there, the NASCAR guys there, the we're 0:20:52.480 --> 0:20:56.440 tied into Formula one. We're actually the FAI representatives for 0:20:56.480 --> 0:21:00.919 the US. So it's everything from you know, you know, 0:21:00.960 --> 0:21:03.119 I've got a nine year old grandson, now that's racing, 0:21:03.240 --> 0:21:07.680 and so it's everything from those sorts of guys to 0:21:07.680 --> 0:21:09.600 to pro semi pro to pro. 0:21:09.880 --> 0:21:13.200 What is your the open wheel guys from the NASCAR 0:21:13.240 --> 0:21:16.320 guys now right ever since the KMAG incident a couple. 0:21:16.200 --> 0:21:22.960 Of weeks ago, yeah, yeah, yeah, so yeah, definitely, uh yeah, 0:21:22.960 --> 0:21:25.320 so all of that, all that and talk about testosterone, 0:21:25.359 --> 0:21:26.920 it's all of that there at the pr I show 0:21:26.920 --> 0:21:31.119 as well. So it's it's awesome, it's there are the 0:21:31.160 --> 0:21:32.520 two premiere shows in the US. 0:21:33.240 --> 0:21:35.480 By the way, do you see more, Mike, do you 0:21:35.520 --> 0:21:38.240 see more women getting involved not just in racing but 0:21:38.320 --> 0:21:42.560 in the aftermarket, working in garage? Is because, at least 0:21:42.560 --> 0:21:44.560 in the media, it's portrayed that way. 0:21:44.640 --> 0:21:46.080 You see these shows and. 0:21:46.040 --> 0:21:49.280 There are women working in the garage that are, you know, 0:21:49.320 --> 0:21:51.520 obviously doing the same things the guys are doing. 0:21:52.040 --> 0:21:55.000 Absolutely, it's gotten much much bigger and we continue to 0:21:55.040 --> 0:21:57.760 fuel that. We we have these councils and networks, we 0:21:57.800 --> 0:22:00.720 have these different groups that of just groups that we 0:22:00.800 --> 0:22:02.480 work with as well, and one of them is the 0:22:03.000 --> 0:22:07.480 SEEMA Business Women's Network SBN. So we've been feeding that 0:22:07.520 --> 0:22:10.080 now for thirty years. We started that group thirty years 0:22:10.080 --> 0:22:13.720 ago where women get together and talk about business and 0:22:13.760 --> 0:22:16.119