House Committee Passes Low Volume Replica Car Bill

[Dave Smith]

Great news for the custom car industry. I have been honored to be part of a SEMA advisory committee that has helped to draft a bill that would enable companies like Factory Five to manufacture completed vehicles with certain exemptions that take into consideration the differences between large companies and small ones. House Resolution HR4013 passed the Commerce, Manufacturing, and Trade sub-committee (House Energy and Commerce Committee). The low volume bill passed this morning in the sub-committtee on a 15-to-6 vote. It was supported by all Republicans and two Democrats (Rep. Barrow, a bill sponsor, and Rep. McNerny). I will report more news as it is available.



Letter support from Factory Five:

July 9, 2014

The Honorable Lee Terry, Chairman
U.S. House of Representatives
Energy and Commerce Subcommittee on
Commerce, Manufacturing, and Trade
Washington, D.C. 20510

The Honorable Jan Schakowsky, Ranking Member
U.S. House of Representatives
Energy and Commerce Subcommittee on
Commerce, Manufacturing, and Trade
Washington, D.C. 20510

Dear Chairman Terry and Ranking Member Schakowsky:

By this letter and on behalf of Factory Five Racing, Inc., I am requesting your support for H.R. 4013, “The Low Volume Motor Vehicle Manufacturers Act of 2014,” which will be considered by the Commerce, Manufacturing and Trade Subcommittee on July 9th and 10th. This bipartisan legislation would facilitate the limited production of “replica” cars by creating a common-sense regulatory structure for specialty automakers, like Factory Five.

Founded in 1995 and headquartered in Wareham, Massachusetts, Factory Five Racing, Inc. (FFR) is an American automobile company that designs and manufactures assembly kits for repli-cars and sports cars. We employ 50 skilled technicians, craftsmen and business professionals and produce industry icons like the Mk4 Roadster, ’33 Hot Rod and Type 65 Coupe. These are “collector cars” that are primarily used in exhibitions, parades and not for general transportation.

As noted, these are motor vehicles produced in small numbers and intended to resemble vehicles from previous generations. Unfortunately, the National Highway Traffic Safety Administration (NHTSA) currently has only one system for regulating motor vehicle manufacturers that treats all companies alike, whether they produce millions of cars or just a handful. The legislation would establish a second system for specialty automakers. It would hold low production manufacturers of collector cars to NHTSA’s equipment standards (lighting, brakes, tires, etc.) while exempting them from vehicle-based standards. Under the bill, they would also meet current model year emissions requirements for the U.S. Environmental Protection Agency (EPA) and California Air Resources Board, including installation of an onboard diagnostic (OBD) system.

The companies would be subject to NHTSA oversight and the vehicles would be subject to recalls and remedies. The companies would register with NHTSA and annually report their production levels. The number of vehicles to be produced by each company would be limited to 1,000, but most companies would actually produce far fewer cars.

The production of modern replicas allows the nation to continue celebrating its automotive heritage. It also supports an industry that provides well-paying, high-skilled jobs nationwide. H.R. 4013 seeks to expand support for that industry by providing American companies with the opportunity to offer new, unique and innovative products to consumers worldwide.
Thank you for your consideration. If you have any questions, or require additional information please feel free to contact me by phone at xxx/xxx-xxxx or by e-mail at [email protected].

Sincerely,
David Smith
President, Factory Five Racing

From SEMA:

Rep. Lee Terry, R-Nebraska, chair of a panel that oversees the issue, said Wednesday at a hearing it was a “a commonsense piece of legislation … The replica car industry is a different animal — these manufacturers produce a small number of cars every year and cater to a specific consumer. The legislation we will consider tomorrow is narrowly focused on these manufacturers to exempt them from a handful of regulations that need not apply to small-scale manufacturers,” he said. “I also note that the legislation is the product of good faith negotiations between the different stakeholders and I’m glad they were able to compromise.”


Massachusetts State Senator Scott Brown worked to support the bill. His defeat for his Senate re-election in Massachusetts was a real setback.


The SEMA Organization worked with congressmen and senators to inform them of the impact and significance of the custom car industry and how this bill would help.

The story was covered by the Detroit Free Press. Here is a link to their site.

[Raceral]

Thank you Dave for your hard and never ending work.
Can you explain this a little more
" Under the bill, they would also meet current model year emissions requirements for the U.S. Environmental Protection Agency (EPA) and California Air Resources Board, including installation of an onboard diagnostic (OBD) system. "

Does this mean if the car is titled a 2014 it must meet 2014 standards and it titled 65 it must meet 1965 standards.

[Dave Smith]

The way it is written, ANY vehicles that are built as finished cars with affixed VIN numbers under the program by a registered manufacturer would have to run a modern emissions compliant engine. But, this Bill would augment existing SEMA laws and not affect in any way current "build-it-yourself" regulations that have already been written state to state. But yes Al, the cars we would build would have to have a Coyote or LS3 type engine.

[myjones]

The way it is written, ANY vehicles that are built as finished cars with affixed VIN numbers under the program by a registered manufacturer would have to run a modern emissions compliant engine. But yes Al, the cars we would build would have to have a Coyote or LS3 type engine.

So this allows you as the kit maker to also sell turnkey cars and they have to be OBD cars but the kit buyers are still only subject to their states regs???
For clarity your builds would all be EFI only, but kit buyers would likely still have the carb/s option state to state
DB

[mentatbashar]

But yes Al, the cars we would build would have to have a Coyote or LS3 type engine.

Interesting, so is this a future option where we could order a turnkey or "mostly" assembled vehicle and then install our own engine/transmission?

[Dave Smith]

The State by State laws that govern "build-it-yourself" kits and customs, hot rods, etc (everything we currently sell) are unchanged. This allows us to build a completed vehicle and affix a federally registered and internationally recognized USA VIN (huge for export which is what I was intending to do it for primarily). Our customers can continue to build without being affected. In so far as a "mostly completed" vehicle ala Superformance or back drift those are still technically "kits" because they lack engines and drivetrains. I wouldn't do that because it sorta violates the Spirit of the law since the cars they sell are hardly "build-it-yourself" kits as much as they are factory-built cars made by a fairly large company and the ONLY reason the drivetrain is obviated is to skirt the definition of a vehicle all the while being vehicles sans engines. This law would help these guys A LOT but the reason I support it, among many, is that I really do believe this is the first step towards a logical tiered system of federalization that accommodates innovation and technology leveraged by small companies. Truth is that the big three have kept a ton of pressure lobbying to KEEP federalization onerous as it prevents competition. The UAW originally opposed this legislation as did the large car companies… only by limiting it to vintage cars and by limiting the volumes to 500 were we able to cobble together a consensus. Frankly, while much of this was frustrating, I think the process was remarkably collaborative and accommodating. Everyone gave a little and no-one got exactly what they wanted but in the end we accomplished progress. This is pretty rare and I was proud to be associated with and consulted heavily in the process. Like I said, my focus is making stuff and selling it to more than the US, we need to make stuff and sell it to the rest of the world. Thats how we build America in my opinion. We'll see where this goes from here, but it's been a ton of work and the crew at SEMA are the real heroes working on our behalf.
Dave

[mentatbashar]

The State by State laws that govern "build-it-yourself" kits and customs, hot rods, etc (everything we currently sell) are unchanged. This allows us to build a completed vehicle and affix a federally registered and internationally recognized USA VIN (huge for export which is what I was intending to do it for primarily). Our customers can continue to build without being affected. In so far as a "mostly completed" vehicle ala Superformance or back drift those are still technically "kits" because they lack engines and drivetrains. I wouldn't do that because it sorta violates the Spirit of the law since the cars they sell are hardly "build-it-yourself" kits as much as they are factory-built cars made by a fairly large company and the ONLY reason the drivetrain is obviated is to skirt the definition of a vehicle all the while being vehicles sans engines.

Thanks for the explanation. Obviously there is a fine distinction there that those familiar with the law are aware. On the other hand, as someone who has not built a roadster kit yet, has limited shop space, basic tooling, and no immediate local access to experienced builders it might make sense, to me, to have a chassis built up to a certain point. Factory installation of the front and rear suspension and frame panels might make sense, as an example. This may not make sense to experienced builders but from my perspective it might.

Truth is that the big three have kept a ton of pressure lobbying to KEEP federalization onerous as it prevents competition. The UAW originally opposed this legislation as did the large car companies…

Shocking! Tesla Motors is a great example of this!

only by limiting it to vintage cars and by limiting the volumes to 500 were we able to cobble together a consensus. Frankly, while much of this was frustrating, I think the process was remarkably collaborative and accommodating. Everyone gave a little and no-one got exactly what they wanted but in the end we accomplished progress.

I'm glad to hear that there was collaboration among everyone involved. Too often it seems today that the big companies or groups always get what they want and the little guy gets squeezed. It is welcome to hear that everyone gave a little and didn't get everything that they wanted.

[myjones]

I'm glad to hear that there was collaboration among everyone involved. Too often it seems today that the big companies or groups always get what they want and the little guy gets squeezed. It is welcome to hear that everyone gave a little and didn't get everything that they wanted.

Anyone building a kit or interested in the freedom to have a hotrod should learn about the SEMA Action Network or SAN. They are the ones that help us have that common voice that's big enough to get heard and they have accomplished quite a bit on the state by state level to make it possible to do what we love.

Dave
Have you thought about how to help raise awareness of their cause among your customers?

DB

[Dave Smith]

SAN promoted more to the FFR community is a great idea. You are right in that they the the MUSCLE behind legislative stuff with SEMA and they really do have all of our collective backs. I'll send out an email blast with that. GREAT idea. Strength in numbers and remember there are people who sincerely believe you don't have the right to build your own car and they are very vocal.

[FFR-ADV]

Dave,

Would you consider generating and posting an example letter for those of us in the Factory Five community to send to our US Representatives and Senators? It would probably help to provide email links to the legislators then email all of us giving us a link to this letter. We can then customize your example letter and forward it to our Representatives.

http://www.house.gov/representatives/find/

http://www.senate.gov/general/contac...nators_cfm.cfm

I expect many in the community want to support your efforts on our behalf in a grass roots way.

Steve

[UpstateCobraGuy]

Wishing you luck!

What's good for FFR is good for us!

Pat