The
United States continues to use a unique set of standards for its automotive safety and emissions regulations, which do not always directly correspond to the standards of the
European Union or
Asian countries, which adhere to the
World Forum for Harmonization of Vehicle Regulations. This means that vehicle manufacturers face considerable expense to type-certify a vehicle for U.S. sale, at a cost estimated to be upward of USD $2 Million per vehicle model. This cost particularly impacts low-volume manufacturers and models, most notably the makers of supercars. However, larger companies such as
Alfa Romeo and
Peugeot have also cited costs of 'Federalizing' their vehicle lineups as a disincentive to re-enter the U.S. market.
NHTSA and
EPA regulations
criminalise the possession of a vehicle not meeting U.S. Federal Motor Vehicle Safety Standards. Even
Canadian-market vehicles may not meet these requirements. Exceptions exist for foreign nationals touring the US in their own vehicle and for cars displayed in
museums.
Because of the unavailability of certain cars, demand for
grey market vehicles arose in the late 1970's. This involved attaching certain equipment as required by the government. The agencies
NHTSA and
EPA would review the paperwork and then approve possession of the vehicle. It was also possible for these agencies to reject the application and order the automobile destroyed or deported.
The grey market provided an alternate method for
Americans to acquire desirable vehicles, and still obtain certification. Despite the inherent risk, tens of thousands of cars were imported this way each year, during the 1980s.
The
Lamborghini Countach was one of the first grey market vehicles, encouraging the Italian manufacturer to prepare a US model. The
Range Rover was initially available only through the grey market, and the popularity of the model eventually convinced the parent company to re-enter the US market in 1987. Other manufacturers, like
PSA Peugeot Citroën with the
CX and
Renault with the
mid-engine Renault 5 Turbo, missed the signals sent by the grey market about American consumer tastes and demand.
This avenue was increasingly successful, especially in cases where only lower quality models were offered on the US market. For example,
Mercedes-Benz chose to offer only the lower-output 380SEL model to Americans in 1981, ensuring a huge demand for the much faster
500SEL, which was available in the rest of the world.
BMW had the same issue with their
745i Turbo.
The grey market was too successful and ate significantly into the business of
Mercedes-Benz of North America Inc. This organization launched a successful
congressional lobbying effort to eliminate this alternative in 1988. Allegations have been raised of improper lobbying, but the issue has never been raised in court.
It is no longer possible to import a non-US vehicle into the United States as a personal import, with some exceptions. In 1998,
NHTSA granted vehicles over 25 years of age dispensation from the rules it administers, since these are presumed to be
collector vehicles. It is also possible to certify the car though a Registered importer for DOT work and an ICI for EPA work, bringing in a number of cars to spread the cost of type approval and
destructive testing. Destructive crash testing is not always needed if the vehicle can be shown to be substantially similar to a model sold in the US. The
Smart Fortwo car is imported in this manner. Finally, the Show or Display law allows import of vehicle
"of such historical or technological significance that it is in the public interest to show or display it in the United States even though it would be difficult or impossible to bring the vehicle into compliance with the Federal motor vehicle safety standards. This provision is intended to facilitate the importation of a make or model of a vehicle which its manufacturer never certified for sale in the United States." However, this provision still demands compliance with emissions standards.
The North American Automobile Trade Association is an association of dealers that buy and sell vehicles across international borders.
The NHTSA administers the Registered Importer Program that allows companies to import and bring into compliance non conforming vehicles.
Guess I'll do it all again!