The primary business structures for commercial vehicle companies in China are limited liability companies and joint-stock companies. In the United States, common forms include limited liability companies, joint-stock corporations, and limited partnerships. The U.S. corporate structure is known for its flexibility, allowing businesses to choose the most suitable model based on their needs.
According to historical data, China exported approximately 11,600 commercial vehicles in 2005. These vehicles were primarily sold to markets in the Middle East, Eastern Europe, Africa, and Latin America. However, the market share in developed countries such as the U.S. and Canada remained relatively small during that period.
Regarding vehicle defects and recall systems, the U.S. National Traffic and Motor Vehicle Safety Act, first enacted in 1966, is now part of Title 49 of the U.S. Code. This act empowers the National Highway Traffic Safety Administration (NHTSA) to set safety standards and mandate recalls for defective vehicles. Since its implementation, over 299 million vehicles, 43 million tires, and 84 million child seats have been recalled to address safety issues.
A recall is required when a vehicle or component fails to meet federal safety standards or poses a safety risk. Many recalls are initiated voluntarily by manufacturers, often following NHTSA investigations or court orders. If a defect is identified, the manufacturer must notify NHTSA, vehicle owners, and dealers, and provide free repairs. NHTSA oversees the recall process to ensure compliance with regulations.
The U.S. automotive defect investigation process includes screening consumer complaints, analyzing safety concerns, conducting investigations, and managing recall efforts. If a manufacturer refuses a recall, NHTSA may issue a preliminary decision, followed by a public meeting where both parties can present evidence. This ensures transparency and accountability.
China's auto recall system was established in 2004. It covers all passenger cars and requires manufacturers and importers to handle recalls. Sellers, renters, and repairers are also obligated to assist. Recalls can be voluntary or mandated by authorities. The government is currently evaluating the feasibility of recalling commercial vehicles as well.
To determine if a product is defective, factors such as non-compliance with safety standards, harm caused by design flaws, or potential risks under certain conditions are considered. These criteria help identify products that pose a threat to users.
In the U.S., the car dealership system is regulated by the Federal Trade Commission (FTC). Manufacturers must support dealers in finding retail locations and maintain written contracts. A minimum transaction of $500 is required within six months of starting a business. This is known as the unified franchise announcement.
Additionally, some states regulate franchising through laws like the Business Opportunities Act. These laws require pre-sale disclosures and may offer rights and protections to investors. Over 20 U.S. states have such regulations in place.
Car dealerships benefit from brand recognition, financial systems, marketing support, and bulk purchasing power. They also receive training, location guidance, and quality control assistance from manufacturers. Regular inspections and customer feedback are often part of the agreement.
State laws further govern the relationship between manufacturers and dealers. For example, Wisconsin, North Carolina, Michigan, and Pennsylvania have strict rules limiting contract freedom. Fair dealer laws emphasize "justified reasons" for terminating or modifying agreements. This protects dealers from arbitrary actions by manufacturers.
In China, there are over 30,000 dealers and 2,000 franchise stores, all requiring authorization from OEMs or distributors.
U.S. safety standards for commercial vehicles are enforced by multiple agencies, including the Department of Transportation and OSHA. The Federal Motor Vehicle Safety Standards (FMVSS) outline minimum requirements for vehicle safety, covering crashworthiness, collision avoidance, and post-crash protection.
For example, FMVSS 209 mandates seat belt assemblies, while other standards address braking systems, fuel systems, and occupant protection. Vehicles must also display warning labels for rollover risks, especially for SUVs.
Imported vehicles must comply with U.S. safety standards, including bumper and anti-theft regulations. Manufacturers are responsible for self-certification, without needing NHTSA approval before sales. They must conduct laboratory tests or studies to prove compliance.
Environmental regulations in the U.S. include the Clean Air Act, Clean Water Act, and the Energy Policy Act of 2005. These laws promote cleaner fuels, reduce emissions, and encourage renewable energy use. The goal is to replace 30% of transportation fuels with biofuels by 2025.
China has also implemented environmental standards, such as GB 17691-2005 for diesel engines, GB 18352.3-2005 for light vehicles, and GB 7258-2004 for motor vehicle safety. These standards aim to reduce pollution and improve vehicle performance.
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