FREQUENTLY ASKED QUESTIONS
HOW CAN I INTRODUCE A NEW MODEL TO THE U.S. MARKET?
In general, there are 2 ways to market foreign cars in the U.S.:
- Factory dealer channels
- Secondary market ( used cars )
If you have an exclusive arrangement with an overseas factory to market a model in the U.S., and the vehicles are being built to comply with U.S. standards, you need to become recognized as an OEM in the U.S., once you can establish that the vehicles meet U.S. standards. These vehicles are declared through Customs as complying vehicles and do not require modiification in the U.S.
SECONDARY MARKETS
Typically called the “ gray market “, these are fleets of cars purchased from wholesalers or auctions overseas. These vehicles must be imported by a Registered Importer, who will modify the cars to conform to U.S. standards. Each vehicle must be individually approved by the DOT for sale in the U.S.
HOW LONG DOES IT TAKE TO BECOME AN OEM? WHAT ARE THE COSTS?
Typical EPA approval for a Manufacturer’s Certification is about 120 days. Depending on how well the test vehicle performs. The certification work for DOT can be performed during this period as well. The general rule of thumb is 6 months and about $75,000 to $100,000 to become an OEM ( Original Equipment Manufacturer ) , or a U.S. distributor of foreign built U.S. complying vehicles.
The costs must take into account things like emissions testing ( electric vehicles are exempt ) , legal fees, state manufacturer registration, trademarking, franchising, etc.
For a more complete description of this process, go to the Inquiry page and complete the contact form, with a description of your project, and we will be happy to forward you a more complete overview of the regulatory requirements for becoming an OEM U.S. distributor.
540-347-5260 fax
