A change to U.S. law could open the door to a flood of companies
building new versions of classic vehicles like the ’65 Ford Mustang,
first-generation Ford Bronco, ’63 Chevy Corvette Stingray and '60s-80s
Toyota FJ Land Cruisers.
But first, the National Highway Traffic Safety Administration must
issue a regulation required by the law, which has been on the books for
nearly four years. Businesspeople involved say that’s the only thing
keeping a new industry from growing.
Tom Scarpello, CEO of
Revology Cars, which restores classic Mustangs at about $180,000 apiece,
expects his Orlando, Florida, company to expand almost immediately when
NHTSA sets the rules for what safety features the replicas must have.
“We
just need to find a bigger building,” he said. “In less than a year, we
could double, triple or quadruple our business,” from the three
restored classic Mustangs Revology currently builds each month.
Nationwide,
the law could create $120 million-$150 million a year in U.S. sales and
several times that much from exports, according to the Specialty
Equipment Market Association, which represents parts and vehicle makers
for classic and modified cars, trucks and motorcycles.
“Investors see the potential the law has to create a new business segment,” Scarpello said.
Customers waiting
Loosely
referred to as the Replica Car Bill, the law was part of a package
President Barack Obama signed into law on Dec. 4, 2015. The law called
for the Environmental Protection Agency (EPA) and NHTSA to create
regulations to guide companies making new versions of classic vehicles.
The EPA did its part, signing off on engine, transmission and emissions
packages that meet current standards and can be used in replica cars,
said Stuart Gosswein, SEMA director of government affairs. SEMA is suing
NHTSA to allow manufacturers to start making replica cars immediately.
“We
have a lot of eager customers waiting to order their cars,” Gosswein
said. “We expect there to be 20-30 cars making up to 1,500 replicas a
year” for U.S. customers. The law allows each company to sell up to
5,000 vehicles annually, with a limit of 325 in the U.S.
“The
agency is aware of the filing but does not comment on matters relating
to pending litigation,” said a spokesman for the U.S. Department of
Transportation, which includes NHTSA.
Bringing a classic car into
rough compliance with modern standards isn’t easy, but you can argue the
EPA’s half of the process was simpler than NHTSA’s. Emissions standards
are a measurable goal. Safety is a fuzzier concept.
SEMA argues
the cars must meet standards for features like lights and brakes.
“Modern” advances like antilock brakes, shoulder belts — or in the case
of classics like the ’32 Ford, any seat belt at all — should be left to
the maker’s discretion.
Let the buyer beware
“The
customer for these vehicles knows what they’re buying and how it should
be used,” Gosswein said. Essentially, SEMA believes the cars will be
used occasionally by drivers who know what they’re getting into. A
45-year-old CPA on a Saturday jaunt in an $80,000 Stingray replica is
less likely to drive like an idiot than a 16-year-old in a Hyundai
Tiburon. Caveat emptor.
Companies can currently sell classics
without those features because regulations distinguish between
“restored” vehicles — those built when the car was new and refurbished
or fitted with modern engines, audio systems, etc. — and replicas, which
are brand new vehicles built to the specifications of the original.
Basically, if you’ve got a piece of metal attached to the vehicle
identification number (VIN) of an old vehicle, you can build anything
you like around it. Without a VIN, specialty companies can build a
“rolling chassis” a replica without an engine. The customer can add an
engine and have a drivable car. The company can’t.
It’s an arbitrary distinction SEMA argues is blocking the creation of a small industry of replica car builders.
Clarity
from NHTSA would reduce prices and increase supply of new versions of
classic vehicles, Scarpello said. “Restoring old vehicles isn’t a
scalable, predictable business, because it’s dependent on finding the
old vehicles. To do it at any kind of reasonable price, you’ve got to
have a predictable business model.
“The law could create a new market for specialty reproduction vehicles.”
