Lawmakers look to create separate regulatory system for small automakers

Rep. John Campbell (R-Calif.) and five other members of the House have proposed the establishment of a new regulatory structure for low-volume automakers.

Sponsors of the Low Volume Motor Vehicle Manufacturers Act, H.R. 3274, say the bill is needed because these smaller companies find it difficult to comply with the costly rules and regulations created with large manufacturers in mind.

"This legislation makes a common-sense fix to our current regulatory structure that will allow new innovation in the automobile market," Campbell said. "However, it is even more important to the larger economy right now as it is a job creating bill that will unleash the manufacturing capabilities of small businesses around the country."

The bill makes two key changes. First, it would allow low-volume automakers to bypass expensive testing for engines they use and instead rely on certificates of conformity with rules regarding engines.

Secondly, it would allow automobiles made by companies not for use in general transportation to classify these vehicles differently, making it easier for them to avoid safety-testing requirements. Campbell says that many of the companies the bill would affect make autos for research or demonstration purposes.

The bill is sponsored by Reps. John Barrow (D-Ga.), Marsha Blackburn (R-Tenn.), Duncan Hunter (R-Calif.), Don Manzullo (R-Ill.), and Bill Posey (R-Fla.).