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Thread: Government regulations question...

  1. #1

    Government regulations question...

    Dose anyone know how many cars a kit-car or specialty car company can make (turn key) before they have to start meeting certain government regulations such as crash testing or safety tests? If not, any idea where I can find out this information for the US.

    Thanks,
    - Neal
    - Neal Bailey<br />- www.BaileySpeed.com

  2. #2
    Senior Member
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    Re: Government regulations question...

    0, according to NHTSA, manufacturing a single complete car must meet all requirements. I hired a lawyer to find that out for me but it was a waste of money. I later found it on the net at the NHTSA website, I will try to find the link. The way everyone, well most everyone, gets around it is they sell kits to a builder and that builder completes the component car and it is titled and registered as a kitcar. For instance SnakeBite LLC would sell the necessary parts to Snakebite Automotive LLC and that company would build the car. I do not know for sure but was told that is the way Saleen did it for a number of years as the S7 used to not have (may still not) the required airbags or been crash tested. When I got started in my venture I thought I could build a number of completely built cars and sell them but that is not the case. I just set up two LLC's. One to produce kits the other to build, they're in the same building.

  3. #3
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    Re: Government regulations question...

    OH I forgot to mention a few things, there are loopholes but I can't find one for mine situation. I built fiberglass streetrods for years. The way that industry works is those cars replicate (although they don't look like it sometimes) vehicles prior to regulation and prior to registrations and titling. Meaning in most states vehicles were not registered or titled prior to 1950. SO, you build a street rod as a 1937 Ford and title is as such and it is exempt from everything. Will not work for you or I. The other is some slight exemptions for zero emisions vehicles and low-speed vehicles, that won't work for us either.

  4. #4

    Re: Government regulations question...

    Hey Bartman,

    Thanks for the replyÖ thatís good infoÖ As fro my company thatís exactly what we are planning to do is to have two LLC for Building and selling the car. Basically every car would be turn key minus which will be sold to our second company for engine install and final sale.

    Do you happen to know how many cars a year you can sale like this? I think most kit car companies are limited to 1000 or 3000 cars a year say for example I think Factor Five is limited to 3000. But Iím not sure how this is determined. I am trying to find legal information that spells all this out for me. Any ideas on who to contact for this information?

    Thanks,

    - Neal
    - Neal Bailey<br />- www.BaileySpeed.com

  5. #5
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    Re: Government regulations question...

    Neal that I do not know. I know it is far more than I can build in my situation so I did not investigate. If I were to build 10 cars a month, which I do not have the capacity to do, that would only be 120 cars per year. There are wholesale/retail auto dealer laws per state that you are going to have to meet though. Here in South Carolina you can only sell 5 cars a year without having to get a dealers license. Well you can sell 5, your brother can sell 5, your wife can sell 5, you get the picture but at some point you will likely have to get a dealers license.

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