If HR 2675 passes, you’ll be able to order a kit car like this ready-made from companies such as Factory Five. All images courtesy Factory Five Racing.

Not many people are aware that companies that make kit cars are forbidden by federal law from selling those cars fully assembled. They can sell them mostly assembled or as kits, but not turn-key. The buyer has to finish the assembly process before the kit car is able to be driven. Legislation that was recently introduced in the U.S. House of Representatives would, if passed, change that.

Low Volume Motor Vehicle Manufacturers Act of 2015-H.R. 2675

Representative Markwayne Mullin has sponsored House Resolution 2675, a bill entitled the ‘Low Volume Motor Vehicle Manufacturers Act of 2015.’ If passed, the bill would direct the National Highway Traffic Safety Administration (NHTSA) to establish a program that would allow low volume vehicle manufacturers, makers of car kits-“kit cars”-to “produce a limited number of vehicles annually within a regulatory system that addresses the unique safety and financial issues associated with limited production, and to allow the Environmental Protection Agency (EPA) to allow low volume motor vehicle manufacturers to install engines from vehicles that have been issued certificates of conformity.”

The team at Factory Five Racing are fully behind this legislation. Are you?

This wouldn’t give kit car manufacturers free reign. The bill, co-sponsored by Rep. Gene Green of Texas, wouldn’t allow a company such as Factory Five or American Classic to become the next GM or Ford. The text of the bill clearly limits the sales volume permitted to “500 replica motor vehicles per year” manufactured or imported by a low volume manufacturer. The bill wouldn’t actually be a new law, either, but would change certain portions of an existing law (Title 49, Section 30114 of United States Code), which gives the Secretary of Transportation leeway to grant exemptions for certain things in extenuating circumstances.

The bill would also not mean that, if passed, we’ll begin seeing what some outside the industry might assume are unsafe copies of vintage cars on our roads. One of the provisions of the bill is that any low volume manufacturer looking for an exemption (permission to sell complete cars directly to the public) would have to have those vehicles inspected and they would still have to have all applicable safety equipment installed. It also doesn’t mean that we’ll see a massive influx of imported cars masquerading as kit cars. One section of the bill specifically forbids this. “The Secretary shall establish terms that ensure that no person may register as a low volume manufacturer if the person is registered as an importer under section 30141 of this title.”

Kit car companies would be allowed to make up to 500 cars per year delivered in a “turn-key state” to customers.

Any exemptions granted by the Secretary of Transportation will have to be spelled out of a sticker that is permanently affixed to the vehicle. This sticker will also have to list the year, make, and model of vehicle that it is replicating. The manufacturer, if required by the Secretary, will also have to deliver to the first buyer and dealer of the kit car notice of the exemption. The manufacturer will also have to report annually to the Secretary how many cars they sold that received these exemptions and what exemptions were received.

Industry Reaction to H.R. 2675

We tried to speak with representatives from a number of low volume vehicle manufacturers (kit car makers), but, as of the date of publication had only heard from Dave Smith from Factory Five Racing. According to Smith, “We are the world’s largest manufacturer of “build-it-yourself” car kits, so it makes sense that we would want to build some completed cars for sale and this legislation would allow us to grow our business and enter the commerce stream with more than the part that we currently design and build. That’s the obvious part, but not the main reason for my support of the new legislation.”

You could buy a replica classic car like this directly from a dealer of Factory Five if this legislation passes.

Smith continued, “We are connected with our customers in a way that big companies could only dream. We are collaborating and the result of that work is talented “at-home” builders are adding to the product mix and we’re not just trying to find out what our customers want thru focus groups and surveys, but rather we are co-creating products and innovations collaboratively with our customers in a way that larger companies cannot by definition.”

Smith mentions as an example a team of aspiring automotive designers and engineers at West Philly High School. This team is, according to Smith, “A group of high school kids, led by a talented instructor, working with Factory Five engineers” that have developed a car that won the Green Gran Prix with a car that netted over 100 MPG. Popular Mechanics recognized this group of students with a “Next Generation Breakthrough Award” in 2011.

Smith’s original understanding of the bill led him to be really excited about it. Since first hearing about it, however, he has had a chance to read the text of the legislation and his zeal has waned a bit. His understanding was that this would allow smaller innovative companies to come to market with cool, safe designs. However, the bill is limited to vintage designs and emissions-legal engines. Still, he’s excited because he feels it will help not only his company, but the industry as a whole, possibly even opening up the export market to them.

Those with the money but not the time or patience to build a replica classic like this will benefit greatly from this bill. It will also help the economy by allowing kit car companies to expand operations and hire.

“This legislation is the start of a lot of good, reasonable moves that is (sic) on the right side of recognizing the changing nature of modern manufacturing and embraces smaller companies, newer technologies, and the reality of the globally-connected marketplace.” Smith says. “Compromise is the name of the game in politics and this is a great example of working with everyone and drafting a law that protects the environment, builds jobs, and encourages innovation.”

To voice your support for this bill, contact your member of the House of Representatives.