Mr. Dietmar K. Haenchen
Manager, Vehicle Regulations
Volkswagen of America, Inc.
3800 Hamlin Road
Auburn Hills, MI 48326

Dear Mr. Haenchen:

This responds to your follow up request for an interpretation of marking requirements in 49 CFR part 541 Federal Motor Vehicle Theft Prevention Standard, for high theft vehicle lines' replacement parts. I apologize for the delay in our response. We reiterate our position in a July 1, 1994 letter to you, that Volkswagen is required to continue marking replacement parts of the Corrado line, in model year 1995 and thereafter. The reason for this position follows.

In your earlier request for an interpretation, you explained that the Volkswagen Corrado line, a high theft line, was parts marked (pursuant to 49 CFR part 541) in model years (MYs) 1990 through 1994. For MY 1995, NHTSA granted a part 543 exemption from parts marking for the Corrado line, based on the inclusion of an approved antitheft device as standard equipment on all models in the Corrado line. (58 FR 28434, May 13, 1993). However, you informed us in your letter that the Corrado will not be sold in the United States for MY 1995.

In a July 1, 1994 interpretation letter to you, we determined that since Volkswagen will not sell the exempted MY 1995 Corrado line with the antitheft device, in the United States, the part 543 exemption would not apply, and Volkswagen must continue to mark the replacement parts for the Corrado line.

In your follow up letter, you wrote that the MY 1994 Corrado line has, as standard equipment, the antitheft device that was the subject of the part 543 exemption for MY 1995. You state that since the Corrado line with the approved antitheft device was sold in the United States, replacement parts for the Corrado line should not be subject to marking in MY 1995 and thereafter.

We do not agree with your position. 49 CFR '543.7(d) specifies that part 543 exemptions apply only to lines that: (1) are the subject of the grant; and (2) are equipped with

the antitheft device on which the line's exemption was based. The MY 1994 Corrado line does not meet the first condition, i.e., it is not the subject of a grant of an exemption from parts marking. The part 543 exemption for the Corrado line begins with MY 1995. (See 58 FR 28434). You have earlier written that no MY 1995 Corrado line with the exempted device, will be sold in the U.S. As stated in our July 1, 1994 letter, since no exempted line, equipped with the antitheft device will be sold in the U.S., Volkswagen must continue to mark any Corrado replacement parts, subject to part 541, as long as the replacement parts are offered for sale in the U.S.

I hope that this information is helpful. If you have any further questions, please contact Dorothy Nakama of my staff at (202) 366-2992.

Sincerely,

Philip R. Recht Chief Counsel

ref:541#543 d:2/17/95