The kit car industry as we know it has changed.  A law has been signed into legislation by President Obama that will permit low volume car manufacturers to produce turn-key replica vehicles for customers nationwide. This provision, which is SEMA-supported, is part of a larger highway construction bill. The “Low Volume Motor Vehicle Manufacturers Act of 2015” was introduced by Rep. Markwayne Mullin (R-OK) and Rep, Gene Green (D-TX) in June, and it is legislation that SEMA has pursued since 2011. The legislation received strong bi-partisan support and was inserted into the highway bill.

A “low volume manufacturer” is any motor vehicle manufacturer whose annual worldwide production is not more than 5,000 vehicles per year. This number includes any vehicles produced by a parent or subsidiary of the manufacturer.

“With this new law, Congress has demonstrated that it understands the importance of enabling U.S. companies to produce classic-themed vehicles that are virtually impossible to build under the current one-size-fits-all regulatory framework,” said Chris Kersting, SEMA President and CEO. 

Small automakers are now permitted to construct up to 325 replica cars a year subject to federal regulatory oversight. These replica cars will resemble production vehicles that were manufactured at least 25 years ago. Currently, the U.S. has only one system for regulating automobiles. The system was established in the 1960 and was designed for companies that mass-produced millions of vehicles each year. Companies that make a small number of custom cars face unique challenges, and this is something that the law recognizes.

While the replica vehicles will be subject to current motor vehicle equipment safety standards such as lighting, tires, windshields, brake hoses, etc., they are exempt from safety standards that apply to motor vehicles such as roof crush, side impact, bumper standard, etc.

There will now be a separate regulatory structure within the National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) for replica car manufacturers. Each company will be required to register with the NHTSA and EPA and submit annual reports on the vehicles they produce to keep track. These vehicles will be required to meet current model year emissions standards. To help achieve that requirement, companies are permitted to install engines from other EPA-certified vehicles.

“This law gives enthusiasts the opportunity to buy turn-key replica cars while preserving their option to build one from a kit,” said Dough Evans, SEMA Chairman of the Board. “It recognizes the unique circunstances associated with limited production replica vehicles, such as the ’32 Roadster and ’65 Cobra, which are primarily used in exhibitions, parades, and occasional transportation. With enactment of this new law, kit car companies and SEMA member companies that supply equipment and components can take advantage of this unique opportunity.”