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SEMA CEO Mike Spagnola and BMW's New X5

SEMA CEO Mike Spagnola and BMW's New X5

Bloomberg Hot Pursuit! Jul 03, 2026 46 min
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About this episode

SEMA CEO Mike Spagnola drops into Bloomberg Hot Pursuit to talk aftermarket culture and why SEMA feels like a “spiritual home” for builders. The show also pivots to a Bloomberg story on China’s cooling effect on luxury “halo” cars, arguing EV speed and social media have made performance less special while Chinese buyers chase tech and value. The conversation then turns to BMW’s new X5, debating its polarizing grille proportions, expanded powertrain lineup (including hybrids, full electric, and hydrogen), and a more screen-forward interior that raises visibility questions.

Technical Too Afraid to Ask
Term

aftermarket modding

"I am a huge fan of aftermarket modding. [46.6s] I mean, you know, nothing serious, but."

Aftermarket modding means putting non-factory parts on your car to change how it looks or drives. It’s a common hobby for car enthusiasts.

Topic

SEMA Car Show

"And also I really want to go to the SEMA Car Show. [72.0s] I've never been to it. [73.0s] It is your spiritual home."

The SEMA show is a big event for car customization and aftermarket parts. It’s a place where people show off modified cars and new accessories.

Part

rear sets

"Yeah, that's that's what I really am going to get into because I for many years I was trying to modify my Ducati Monsters with rear sets that made it possible for a guy with super long legs to ride, you know, and there just aren't very many choices out there for people who."

Rear sets are the foot pegs and foot controls on a motorcycle. Moving them higher or farther back helps riders with long legs reach the controls more comfortably.

Car

Ducati Monsters

"Yeah, that's that's what I really am going to get into because I for many years I was trying to modify my Ducati Monsters with rear sets that made it possible for a guy with super long legs to ride, you know, and there just aren't very many choices out there for people who."

A Ducati Monster is a popular type of Ducati motorcycle. Here, the speaker is saying they tried to change the foot controls so taller riders can reach them comfortably.

Term

EVs

"But really the story is about how EV's and ev dreams in China really have had quite a cooling effect on the halo cars."

EVs are cars that run on electricity stored in batteries. The speaker is saying that as EVs became more popular in China, interest in the most attention-grabbing “halo” models cooled down.

Concept

halo cars

"And you know, as you know, halo cars aren't just any supercar. They're not just a sports car. It's a very specific but also vague kind of car that used to be really prevalent."

A “halo car” is a company’s showpiece model—the one meant to make the brand look exciting and desirable. The speaker is saying that in China, EV interest has cooled demand for those attention-grabbing cars.

Term

social media

"I guess in part because people don't always go to the showroom anymore. You have everything you need to see you can see on social media now you don't even need it."

Here, “social media” means websites/apps where you can watch videos and see photos of cars. The point is that people can learn what they want to buy online, without going to a showroom.

Term

ludicrous mode

"is I kind of think Tesla had a really big part to play in this cooling effect of halo cars because when Tesla came out with ludicrous mode. That basically meant any grocery getter, Sedan, Tesla or EV for that matter, because it's it's set a precedent could embarrass a Lamborghini in a drag race."

It’s a Tesla setting that makes the car feel much more aggressive when you press the accelerator. Think of it like a “max performance” mode for faster launches.

Concept

speed became a commodity

"That basically meant any grocery getter, Sedan, Tesla or EV for that matter, because it's it's set a precedent could embarrass a Lamborghini in a drag race. Speed became a commodity, and speed no longer, you know, was reserved only for supercars and Halo cars and the top sports cars."

The point is that fast acceleration isn’t just for supercars anymore. More and more normal cars can be very quick, so “being fast” matters less as a status signal.

Term

EV

"That basically meant any grocery getter, Sedan, Tesla or EV for that matter, because it's it's set a precedent could embarrass a Lamborghini in a drag race. Speed became a commodity, and speed"

“EV” means electric vehicle. It’s a car that runs on electricity from a battery instead of using gasoline.

Term

drag race

"That basically meant any grocery getter, Sedan, Tesla or EV for that matter, because it's it's set a precedent could embarrass a Lamborghini in a drag race. Speed became a commodity, and speed"

A drag race is a straight-line race focused on acceleration. Cars line up and try to get to the finish point as fast as possible.

Concept

authenticity

"So it is true, yeah, yeah, yeah, but doesn't it make some other aspects of car ownership or usage more special? [288.7s] I mean, do you such as think that authenticity, you know, heritage?"

Here, “authenticity” means whether a car brand feels genuine and true to its roots. It’s about heritage and identity, not just specs.

Term

AI

"Apparently this is this is the interest. This is the [301.0s] interesting thing. You know, Chinese buyers really care about the latest technology, about AI and about you know, whether they feel they're getting an affordable car."

AI means “smart computer features.” In cars, it can show up as smarter navigation, voice control, or driver-assist systems.

Brand

BYD

"Correct. And also, let's not Forget is also selling buses [421.7s] here already. There are fleets of fleets of BYD buses"

BYD is a Chinese company that makes electric vehicles. The host is pointing out that it’s already selling buses here, especially to fleets.

Car

Mercedes GLS

"We took the Mercedes GLS instead, which turned out to be a great choice for the trip."

The Mercedes-Benz GLS is a big, comfortable luxury SUV. Here, it’s mentioned as the safer, more comfortable choice when the other car was too stiff and too low for the trip.

Car

M5

"I've had card the kids around in my new car. I've been carding them around right now in an M five, And I won't talk too much about it because I want to wait until you have a chance next week to drive..."

The BMW M5 is BMW’s performance sedan—faster and more track-focused than a normal 5 Series. In the conversation, it’s the car the speaker is using day-to-day for family trips.

Car

M2

"...because you just got your M two, right I just. Got the M two delivered to the house. I haven't even seen it..."

The BMW M2 is a compact performance coupe/track-oriented BMW M model, typically smaller and more agile than the M5. Here, the speaker says they just received an M2 and plans to drive it over the holiday weekend, setting up a comparison conversation in “BMW lands.”

Car

new X5

"So we're gonna have a lot to talk about in BMW lands. A lot of exactly, and we have the new X five to talk about. Let's discuss. I hated quite a stir. What's your What was your knee jerk reaction when you saw it?"

The BMW X5 is a popular luxury SUV from BMW. They’re talking about the newest version and sharing their first reactions to how it looks.

Term

powertrain

"I think that part depends on the powertrain you get, And it's pretty interesting that you can now choose from six power trains on an X five."

Powertrain is the car’s “go” system—what makes it move. It includes the engine or electric motors and the parts that connect that power to the wheels.

Term

inline six

"there you'll have the choice of at least an inline six or a V eight's. You can choose a mild hybrid power train, so I'm guessing that'll be the in line six with electric help"

An inline six is an engine with six cylinders lined up in a row. It’s known for running smoothly, and BMW has used this kind of engine in some of its cars.

Term

V eight's

"there you'll have the choice of at least an inline six or a V eight's. You can choose a mild hybrid power train"

A V8 is an engine with eight cylinders arranged in two rows that form a V shape. It’s often associated with strong power and torque, depending on how the car is set up.

Term

plug in hybrid

"and you can choose a plug in hybrid. You can choose a full electric vehicle, or you can choose fuel cell hydrogen fuel cell"

A plug-in hybrid is part gas engine and part electric motor. You can charge it from a plug, and it can often drive some distance on electricity alone.

Term

fuel cell hydrogen fuel cell

"full electric vehicle, or you can choose fuel cell hydrogen fuel cell, and they'll have a diesel version, probably not for this market"

A hydrogen fuel cell makes electricity from hydrogen while you drive. The car still uses an electric motor, but instead of charging a battery, it uses hydrogen fuel.

Term

full electric vehicle

"You can choose a plug in hybrid. You can choose a full electric vehicle, or you can choose fuel cell hydrogen fuel cell"

A full electric vehicle runs on electricity stored in a battery. Instead of getting gas, you charge it—usually at home or at public chargers.

Term

diesel version

"and they'll have a diesel version, probably not for this market, but for other places in the world. So that's seven power choices."

A diesel version means the car would use a diesel engine instead of a gas engine. Diesel engines can be efficient and have strong pulling power, but they’re not always offered everywhere.

Term

gauges

"There's no longer gauges in front of the steering wheel and for this to be the ultimate driving machine, I want to see gauges in front of me showing my speed and the engine speed."

“Gauges” are the dials or displays behind the steering wheel that show things like how fast you’re going and how hard the engine is working. The host is saying the new layout doesn’t put those in the usual spot.

Term

engine speed

"for this to be the ultimate driving machine, I want to see gauges in front of me showing my speed and the engine speed."

Engine speed is basically how fast the engine is spinning, usually shown as RPM. Drivers look at it to know how hard the engine is working and to help with shifting and smooth driving.

Term

BMWi drive system

"There's no more BMWi drive system, which I absolutely loved the eye drive."

BMW’s iDrive is the system that runs the car’s main screen and menus. It’s how you control things like navigation and settings, and the host is saying they liked the older way of doing it.

Term

peripheral technology

"it goes all the way across the car. There's no more BMWi drive system, which I absolutely loved the eye drive."

“Peripheral technology” here is used loosely to describe additional display hardware or screen elements that sit above the dashboard. The point is that the driver’s information is being moved into a new visual layout, changing how quickly you can read speed and RPM.

Term

visibility

"What does that do to visibility directly in front of the vehicle?"

Visibility means how well you can see what’s around you while driving. The host is worried that with a taller SUV and more stuff on the dashboard, it could be harder to see straight ahead.

Concept

arms race happening on American highways

"And is this another example of the arms race happening on American highways where everyone's just getting matt these huge, massive vehicles and you can't see."

The host is basically saying cars are getting bigger and taller, and that can make it harder for drivers to see around them. As a result, people rely more on cameras to judge what’s in front during parking or slow-speed driving.

Term

camera button

"you see increasingly a trend where there's a camera button or you can dig into your digital screen and turn on a camera that looks in front of you"

A camera button is a shortcut that turns on a live camera view. It helps you see what’s close in front of the car—especially useful when the car is tall and your normal sightline is blocked.

Term

digital screen

"you see increasingly a trend where there's a camera button or you can dig into your digital screen and turn on a camera that looks in front of you"

A digital screen is the display you interact with inside the car instead of traditional dials. In this case, they’re saying you can use it to pull up a camera view to see what’s in front of you.

Term

curb

"as these vehicles get taller and bigger and you have less of a view of the curb in front of you, you know, if you're parking, for example, this is what you can hit that button."

The curb is the edge of the road near the sidewalk. When parking, you often need to judge how close you are to it, and cameras can help when your view is blocked.

Term

EPA

"our SEAMA garages are now approved by the e p A to do emission compliance work."

EPA is the U.S. government agency that sets rules for air pollution. If a facility is approved by the EPA, it means they can do official emissions testing and compliance paperwork.

Term

emission compliance work

"So we're really excited the Trump administration and Lee Zelden announced yesterday that our SEAMA garages are now approved by the e p A to do emission compliance work."

Emission compliance work means making sure a car part or vehicle meets pollution rules set by the government. It usually involves testing and paperwork so the product can be legally sold and used.

Term

emissions testing process

"we help manufacturers kind of get through the emissions testing process, which can be daunting. So everything we help them with, everything from filling out the application..."

The emissions testing process is how regulators check whether a car or car part produces acceptable levels of pollution. It typically includes tests plus forms and submissions to prove the product complies.

Term

California Resources Board

"And over the years it's been really carved. California Resources Board regulated"

This refers to a California government body that helps set and enforce environmental rules. The point here is that California has its own emissions-related requirements that companies must follow.

Term

reasonable basis

"there's always been this piece through the EPA that says reasonable basis, so testing can be done on a reasonable basis and EPA would accept that sort of work."

“Reasonable basis” is a way regulators can accept testing results if the evidence is considered good enough. The speaker is saying the EPA can accept that kind of testing approach.

Company

SEAMA garages

"we've been working alongside the EPA to actually get recognized by the EPA, and that came through yesterday through a bill that President Trump signed and that Lee Zilden worked alongside of us to do so, now our SEAMA garages, our emissions test centers can actually do that testing"

They’re talking about test facilities run by their organization. The point is that these places can do emissions testing that regulators will accept.

Term

California Air Resources Board

"we can wait weeks even months for the California Air Resources Board to approve that product. Meanwhile, those manufacturers are losing saidills."

CARB is California’s government agency that enforces emissions rules. If a product needs CARB approval, it can take a long time before it’s legal to sell in California.

Term

forty nine state legal

"it becomes forty nine state legal and so what we'll be doing now going forward, and what that means, by the way, is that you know, manufacturers spend a ton of time and effort and money to develop a new product"

“Forty nine state legal” means the product is approved to be sold in almost all states. California can be different because it has its own emissions approval process.

Term

cat back exhaust

"So for example, I just got this twenty twenty bmw M seven sixty. Nobody makes a cat back exhaust for it."

A cat-back exhaust is an aftermarket exhaust upgrade that starts at the catalytic converter and replaces the rest of the exhaust system behind it. The point here is that selling it legally depends on emissions approval.

Car

Bmw M

"...nt. So for example, I just got this twenty twenty bmw M seven sixty. Nobody makes a cat back exhaust for ..."

The BMW M Coupe (E36) is a sporty two-door BMW made for performance driving. It’s based on the E36 generation of the 3 Series, but it has M-tuned upgrades. People talk about it because it’s a popular car to customize, including things like exhaust systems.

Term

right to modify

"We're really pushing right to modify some more than just right to repair. We need the ability to modify vehicles and do it safely."

“Right to modify” is the idea that people should be allowed to change their cars—like suspension or wheels—without being blocked. The emphasis is that modifications should be done in a way that keeps the car safe and compliant with rules.

Term

self breaking

"Again, with all the technology that's coming out, with the ability of self breaking, lane change, departure warning, all those technologies that are on vehicles today, we're doing a lot of work to understand what happens when you modify the vehicle"

“Self breaking” is the car automatically braking if it thinks a crash is about to happen. The concern is that if you change parts like suspension or tires, the sensors may need recalibration so the safety system still works correctly.

Term

lane change

"Again, with all the technology that's coming out, with the ability of self breaking, lane change, departure warning, all those technologies that are on vehicles today, we're doing a lot of work"

“Lane change” refers to safety tech that helps you change lanes more safely. It uses sensors to watch nearby traffic, and changing other parts on the car can affect how well those sensors work.

Term

cameras and all those sensors

"we're doing a lot of work to understand what happens when you lift a truck or you lower a car, what are those cameras and all those sensors seeing, and what happens when you modify the suspension on that vehicle."

This is talking about the car’s safety “eyes and sensors” that watch the road and help with features like braking and lane warnings. If you change suspension or tire size, the sensors may need recalibration so they still work correctly.

Term

lift a truck

"we're doing a lot of work to understand what happens when you lift a truck or you lower a car, what are those cameras and all those sensors seeing"

“Lift a truck” means raising the car higher off the ground, often with suspension changes. The concern is that it can throw off the car’s sensors and safety systems unless everything is adjusted properly.

Term

tire size and wheel size

"What happens when you put a larger tirre wheel on a truck... you're modifying that suspension and modifying even the tire size and wheel size."

Changing tire and wheel size can change how fast the car thinks it’s going and how the car’s systems interpret the vehicle’s position. The episode argues that safety tech may need recalibration after these changes.

Term

fuel timing

"we have to modify fuel timing, all those sorts of things when you're putting a supercharger on a vehicle"

“Fuel timing” is about when the engine sprays fuel during its cycle. When you add performance hardware, tuning fuel timing helps the engine run correctly and meet emissions rules.

Term

supercharger

"we have to modify fuel timing, all those sorts of things when you're putting a supercharger on a vehicle"

A “supercharger” is a device that forces more air into the engine to make more power. Because it changes how the engine breathes, it usually requires tuning so it runs safely and still meets emissions requirements.

Term

emission's compliance

"We've been able to do that on a mission's compliance... safely and with emission's compliance and to do all the things and save the warranties"

“Emission's compliance” means the car has to meet government rules for what comes out of the tailpipe. The point here is that some modifications can be done in a way that still keeps the car within those legal limits.

Term

warranties

"and we've been able to do that safely and with emission's compliance and to do all the things and save the warranties"

“Warranties” are the manufacturer’s promises to pay for certain repairs if the car breaks. The speaker is saying that some modifications can be done without losing that protection, if they’re done correctly.

Term

exhausts

"even things to air intakes, exhausts, all those sorts of things which can actually you know, improve performance"

“Exhausts” are the parts that carry engine gases out of the car. Changing them can affect emissions and how the engine runs, so it usually requires careful setup to stay legal and safe.

Term

air intakes

"even things to air intakes, exhausts, all those sorts of things which can actually you know, improve performance even gas mileage."

“Air intakes” are parts that bring air into the engine. Changing them can change how the engine breathes, so the car may need tuning to keep it running well and meeting rules.

Car

Chevrolet Corvette

"But also, Matt, think about taking your twenty twenty nine corvette now out to the racetrack and you dive into a corner and you dive into the apex and the things self breaks not going to be fun or you."

The “2029 Corvette” is mentioned as an example of a future performance car with advanced safety tech. The argument is that if safety systems are required, changing the car for track use could make those systems act differently unless everything is set up correctly.

Brand

Porsches

"But boydcher love to have that. I've had some old Porsches. [1885.5s] I've had a lot of race cars in early Japanese cars got some five tens and two forty disease and all that."

Porsche is a famous German car brand that makes sports cars. “Old Porsches” usually means older classic models that car fans like to own and tinker with.

Topic

Formula one

"we are the US representative for the FIA is the group that oversees Formula one, and I'm the President of the of the FIA for the US for Mobility. [1929.6s] so we had the World Convention there, one hundred and twenty nine countries represented about four hundred and fifty people, and I presented a couple of papers."

Formula One is the highest level of race car competition in the world. They’re talking about where future races might happen and which big car companies might get involved.

Company

FIA

"we are the US representative for the FIA is the group that oversees Formula one, and I'm the President of the of the FIA for the US for Mobility. [1929.6s] so we had the World Convention there, one hundred and twenty nine countries represented about four hundred and fifty people, and I presented a couple of papers."

The FIA is the organization that helps govern major international auto racing. They’re involved with Formula One and also work on broader mobility and safety topics.

Place

Las Vegas

"There was [1968.4s] I just read this morning and I haven't confirmed this yet, but I just read this morning that there might be a second race in Las Vegas because they had to counsel a couple of races this year, so I don't know that for sure."

They’re talking about Las Vegas possibly hosting another Formula One race. It sounds like it’s still uncertain, but the idea is that the schedule could add another event there.

Term

V eight engine

"[1991.0s] going back to a V eight engine, So lots of cool stuff going on."

A V8 engine has eight cylinders arranged in a V shape. It’s known for strong power and a classic engine sound, which is why people get excited when automakers bring it back.

Term

electric car manufacturer

"[1998.1s] When you said by D, I mean, I think it's cool to have the more the merrier, right in terms of manufacturers, but they are primarily an electric car manufacturer, and that's I mean, I think most everyone agrees that the fifty to fifty power train is."

An electric car manufacturer mainly builds cars that run on electricity from a battery. In this conversation, it’s being contrasted with brands that still want options like hybrid or V8 engines.

Term

EV mandates

"[2050.2s] Yeah, the whole discussion on the you know, we were part of that, the whole legislation that Trump signed about the EV mandates. So here in California, starting twenty twenty six,"

EV mandates are laws that require carmakers to sell a certain percentage of electric vehicles. The idea is to push the market toward EVs over time.

Term

synthetic fuels

"[2085.2s] you know, look, America was built on innovation, and so there's synthetic fuels, there's hydrogen, there's all sorts of different fuel technologies that are coming under Hybrid now is taken over, right, I mean, so there's all these technologies that should continue to be moved being forward along with EV and so we've been big proponents of that."

Synthetic fuels are fuel made by people instead of coming straight from crude oil. The point is that they can potentially work with existing engines, so they’re one option besides EVs.

Term

White House

"[2107.1s] wording was in that bill that Trump signed. I got [2109.3s] to go to the White House for that signing, which was pretty cool."

The White House is where the U.S. president works. The host mentions it because he went there for a signing of a law connected to EV rules.

Car

Porsche Macon GTS

"My daily is a Porsche Macon GTS, which is which is a fun car but responsible. I guess that's the CEO I've seen."

This sounds like a Porsche Macan GTS. It’s a sportier version of the Macan SUV, meant to feel more responsive and “driver-focused” than the regular trims.

Term

down pipe

"Did you chip it, put on a new down pipe and do the exhaust legally? Emissions compliant yes, so no downpipe, but but it may have some modifications in different tires and wheels."

A downpipe is part of the exhaust system that carries exhaust gases away from the engine/turbo area. People sometimes change it to improve sound or flow, but it can also affect emissions equipment.

Term

chip it

"Did you chip it, put on a new down pipe and do the exhaust legally? Yes? Emissions compliant yes, so no downpipe, but but it may have some modifications in different tires and wheels."

“Chip it” means changing the car’s computer settings to make it run differently. People do it for extra power or better response, but it can also cause emissions or reliability issues if done wrong.

Term

emissions compliant

"Did you chip it, put on a new down pipe and do the exhaust legally? Yes? Emissions compliant yes, so no downpipe, but but it may have some modifications in different tires and wheels."

“Emissions compliant” means the car still meets the legal rules for pollution. If you modify the exhaust, you usually have to keep the emissions equipment working so it can pass inspections.

Term

tires and wheels

"Emissions compliant yes, so no downpipe, but but it may have some modifications in different tires and wheels. Now, are you on bring a trailer?"

Tires and wheels are key contact-and-geometry parts that strongly affect grip, ride comfort, steering feel, and braking performance. Changing them can also alter the vehicle’s appearance and how it fits within wheel/tire clearance and emissions/safety requirements.

Brand

Bring a Trailer

"Now, are you on bring a trailer? Like are you looking? Is this where you're finding your cars? Because yes, yes, yeah. That is. That's an addiction that I try to stay away from."

Bring a Trailer is a website where car enthusiasts bid on cars. It’s known for lots of detailed listings and active bidding from hobbyists.

Topic

Pebble Beach supercar class debate

"What about Pebble, Do you go to Monterey ... he thinks they need to have a supercar class there ... but there needs to be a place for a Lamborghini Diablo."

They talk about what kinds of cars should be featured at Pebble Beach. The discussion is about how tastes change and how that affects what cars become valuable.

Car

Lamborghini Diablo

"..., but there needs to be a place for a Lamborghini Diablo. You know, I agree. You know, the market's consta..."

The Lamborghini Diablo is a very expensive, very fast sports car made by Lamborghini. It’s known for its powerful engine and flashy design. People bring it up because it’s a famous model that many collectors want.

Term

vin number

"there was the sixties muscle car original you know, vin number, original engine, and then it went to restaurmat"

A VIN number is like a car’s unique ID. Collectors care about it because it helps prove the car’s identity and history.

Concept

restomod

"there was the sixties muscle car original you know, vin number, original engine, and then it went to restaurmat"

A restomod is an older car that’s been updated with newer improvements while trying to keep its classic character. Collectors often debate whether that’s better than keeping the car completely original.

Term

forums

"Like I I want to car be able to change the you know, interior would out, or I want to put new wheels on obviously everything, and so I love the aftermarket and it also gives me. I spend so much time on forums."

Forums are websites or message boards where car and bike fans talk to each other. People share tips and ideas about upgrades and maintenance.

Car

F-150 Raptor

"... a lot of stuff to do. We still have to go on the raptor rally. You have to go. I know I ain't got to pitc..."

The Ford F-150 is a large pickup truck made for hauling and everyday driving. It can be set up in different ways depending on how you plan to use it. It’s mentioned in off-road or rally talk because it’s a common choice for tough driving.

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