Interpretation ID: 1985-02.49

TYPE: INTERPRETATION-NHTSA

DATE: 06/25/85

FROM: AUTHOR UNAVAILABLE; Jeffrey R. Miller; NHTSA

TO: James H. Westlake -- National Automobile Dealers Assocaition

TITLE: FMVSS INTERPRETATION

TEXT:

Mr. James H. Westlake Associate Director American Truck Dealers Division National Automobile Dealers Association 8400 Westpark Drive McLean, VA 22102

This is in reply to your letter of February 25, 1985, to Mr. Stephen Wood of this office asking the following three questions about rebuilding and remanufacturing heavy duty trucks.

"1) When rebuilding a used truck with a glider kit, it is our understanding that the process is considered 'rebuilding' when the three major components (engine, transmission and rear axle) are reused in the rebuilding process. If one or more of these major components is new, does the production of the truck chassis change its legal character from 'rebuilding' to 'first stage manufacturer'?"

Neither the National Traffic and Motor Vehicle Safety Act ("the Act") nor the Federal Motor Vehicle Safety Standards ("safety standards") contain the terms "rebuilding" and "first stage manufacturer". Your question, however, is clear: when new and used components are used in rebuilding a heavy truck, at what point does the truck become a "new" vehicle which must comply with all safety standards that apply to trucks.

The agency's regulation on Combining new and used components, 49 CFR 571.7(e), provides:

"When a new cab is used in the assembly of a truck, the truck will be considered newly manufactured for purposes of compliance with the safety standards and other provisions of the Act unless the engine, transmission, and drive axle(s) (as a minimum) of the assembled vehicle are not new, and at least two of these components were taken from the same vehicle".

Thus, in terms of your question, if the three major components are reused in the rebuilding process and at least two of the three came from the same vehicle, the Federal motor vehicle safety standards do not apply even if a new cab is used. But if one of the three components is new, or if all are used and came from three different motor vehicles, then the standards apply and the truck must meet them, and be certified as meeting them, upon final assembly.

Your reference to "first stage manufacturer" implies that there may be rebuilding fact situations in which the process is completed by a person other than the manufacturer who initiated it. If the rebuilt truck is "new", then its assemblers are subject to 49 CFR Part 568 Vehicle Manufactured in Two or More Stages. If the truck meets the definition of "incomplete vehicle", then the "incomplete vehicle manufacturer" is required to furnish the specified compliance information necessary for certification to the "intermediate stage manufacturer" or the "final stage manufacturer" as the case may be (Sec. 568.3).

"2) When a truck chassis is built by a dealer and legally classified as 'new manufacturing' what federal regulations must be complied with that do not apply when the vehicle is considered rebuilt?"

As indicated above, the truck must be completed to comply with all safety standards that apply to trucks and be certified by its assembler as so conforming in accordance with Part 567 Certification. If more than one party is involved in the remanufacturing process, each party is subject to Part 568. In addition, any party remanufacturing a truck that must be certified as conforming is required to file a statement in the form prescribed by Part 566 Manufacturer Identification.

"3) What penalties exist for failing to comply with these Federal regulations?"

As provided by section 109(a) of the act, any person violating any provision of the Act or a regulation issued thereunder is subject to a civil penalty of up to $1000 for each violation, up to $800,000 for any related series of violations. In addition, under Section 110(a) of the Act, the agency may seek to restrain the manufacture, sale, offer for sale, introduction, or delivery for introduction into interstate commerce of any rebuilt truck that should have met Federal motor vehicle safety standards but in fact did not do so. Also, section 154 of the Act requires manufacturers to conduct recall campaigns and remedy any non-compliances with applicable safety standards.

I hope this information is helpful. Sincerely, Jeffrey R. Miller Chief Counsel

February 25 1985 Mr. Steve Wood Office of the Chief Counsel National Highway Traffic Safety Administration U. S. Department of Transportation 400 7th Street, SW Washington, DC 20590

Dear Mr. Wood:

Thank you for your telephone assistance Friday morning, and for directing our question to the appropriate individual.

The American Truck Dealers division of the National Automobile Dealers Association represents over 1,700 medium and heavy duty truck dealers. Many of our members are engaged in the business of rebuilding and remanufacturing heavy duty trucks. On their behalf, we are requesting NHTSA provide guidance on the following questions.

1) When rebuilding a used truck with a glider kit, it is our understanding that the process is considered "rebuilding" when the three major components (engine, transmission, and rear axle) are reused in the rebuilding process. If one or more of these major components is new, does the production of the truck chassis change its legal character from "rebuilding" to "first stage manufacturer"?

2) When a truck chassis is built by a dealer and legally classified as "new manufacturing", what federal regulations must be complied with that do not apply when the vehicle is considered rebuilt?

3) What penalties exist for failing to comply with these federal regulations?

Your assistance in answering these questions and providing specific citations is greatly appreciated. If our questions require additional detail, please feel free to contact me at the above number.

Sincerely, James H. Westlake Associate Director, ATD