This thesis deals with the lability of automobile and motorcycle manufacturers, as well as their suppliers, in situations where a defective product causes a harmful event. Specifically, it compares the product liability laws of the Federal Republic of Germany to those of the United States of America. Before entering into the details of legal doctrine, the introductory note provides background information on the social and economic aspects of automobile use in those two countries. Next, Chapter I describes the liability regime governing claims against German motor vehicle manufacturers and their suppliers. Chapter II focuses on the comparable law in the United States and contains the conclusion that both laws are very similar, in part even identical, and only differ in a few aspects. It recommends that the German legislature should introduce capped punitive damages to its product liability law, and, with regard to American product liability law, it argues for the adoption of a clearer determination of the preemption doctrine by the United States Supreme Court. It further pleads against the federalization of United States product liability law which, as a part of tort law, traditionally belongs to the states.