The primary forms of commercial vehicle companies in China are limited liability companies and joint-stock companies, while in the United States, the main structures include limited liability companies, joint-stock companies, and limited partnerships. The U.S. corporate structure is known for its flexibility, allowing businesses to adapt to various operational needs.
According to historical data, China exported approximately 11,600 commercial vehicles in 2005. These vehicles were primarily exported to regions such as the Middle East, Eastern Europe, Africa, and Latin America. However, the market share in developed countries like the United States and Canada remained relatively small at that time.
In the U.S., the National Traffic and Motor Vehicle Safety Act, first enacted in 1966, has since been integrated into Title 49 of the United States Code. This legislation empowers the National Highway Traffic Safety Administration (NHTSA) to set safety standards and mandate recalls for vehicles with safety-related defects. Over the years, more than 299 million vehicles, including cars, trucks, buses, RVs, motorcycles, and mopeds, along with 43 million tires and 84 million child seats, have been recalled to address safety issues.
A recall is required when a vehicle or its components fail to meet federal safety standards or pose a risk due to design or manufacturing flaws. Manufacturers often initiate these recalls voluntarily, though they may also be prompted by NHTSA investigations or court orders. Once a defect is identified, the manufacturer must notify NHTSA, vehicle owners, and dealers, and provide free repairs. NHTSA monitors the recall process to ensure full compliance.
The NHTSA’s defect investigation process includes several stages: screening consumer complaints, analyzing the issue, conducting investigations, and reviewing past recalls. If a manufacturer refuses to comply, NHTSA may issue a preliminary determination that a defect exists. A public meeting is then held where both the manufacturer and the public can present evidence, and the manufacturer has the opportunity to challenge the findings.
China established its automotive recall system in 2004, covering all passenger vehicles. Manufacturers and importers are responsible for recalling defective products, while sellers, renters, and repairers must assist in this process. Recalls can be voluntary or mandated by regulatory authorities. The government is currently evaluating the feasibility of extending this system to commercial vehicles.
Defects are identified based on whether they violate technical regulations, cause harm to individuals or property, or pose potential risks under certain conditions. These criteria help determine whether a recall is necessary.
In the U.S., the car dealership system is governed by the Federal Trade Commission (FTC), which ensures fair practices between manufacturers and dealers. Franchise agreements must be in writing, and there must be a minimum transaction of $500 within six months of starting business. Some states also regulate franchising through their own laws, such as the Business Opportunities Act, which provides additional protections to franchisees.
Car dealerships offer market guarantees, brand recognition, financial support, and access to marketing resources. They also receive training, location guidance, and quality control assistance from manufacturers. Dealers are typically required to undergo regular inspections and provide customer feedback.
State laws often impose additional restrictions on manufacturer-dealer relationships. For example, Wisconsin, North Carolina, Michigan, and Pennsylvania have passed laws limiting contract freedom. Fair dealer laws require "justified reasons" for terminating or modifying a dealership agreement, ensuring protection for dealers against arbitrary decisions.
In China, there are over 30,000 dealers and more than 2,000 franchise stores, all requiring authorization from OEMs or general distributors.
Regarding commercial vehicle safety, multiple federal agencies, including the Department of Transportation and the Occupational Safety and Health Administration, set safety standards. These standards cover everything from crashworthiness to fuel system integrity and are outlined in 49 CFR sections 571–599.
The U.S. Federal Motor Vehicle Safety Standards (FMVSS) define minimum safety requirements for vehicles and equipment. These standards aim to protect the public from unreasonable risks during crashes and reduce casualties. For instance, FMVSS 209, which covers seat belts, was implemented in 1967, and other standards followed in subsequent years.
Safety compliance in the U.S. is self-certified by manufacturers, who must conduct laboratory tests or other analyses to prove their vehicles meet federal standards. Unlike Japan, where approvals are issued, the U.S. does not provide official certification labels.
Environmental regulations in the U.S. include the Clean Air Act, Clean Water Act, and others, which govern emissions and pollution. The Energy Policy Act of 2005 promoted renewable energy use, aiming to increase biofuel usage and reduce diesel sulfur content. These regulations significantly influence the automotive industry's environmental impact.
In China, emission standards such as GB 17691-2005, GB 18352.3-2005, and GB 14763-2005 set limits for pollutants from vehicles, reflecting the country's growing focus on environmental protection.
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