Interpretation ID: aiam3411
Secretary
North American Classics Corporation
1851 Austin
Troy
MI 48084;
Dear Mr. Elkins: This is in reply to your letter of April 15, 1981, asking two question with respect to the temporary exemption provisions of the National Traffic and Motor Vehicle Safety Act (15 U.S.C. 1410) and implementing regulations (49 CFR Part 555).; Your first question is: >>>(1) Assuming North American Classics designs the total engineerin of the Thunderbird reproduction, selects all components to be incorporated therein, retains primary control over quality control, testing, FMVSS compliance in design, and manufacturing assembly sequence, and markets the produced vehicles on its behalf to its customers, does North American Classics remain eligible to apply for exemption from meeting certain FMVSS requirements for this vehicle in the event that the actual responsibility for the assembly of the vehicles is contracted by North American Classics to a manufacturer which produces more than 10,000 motor vehicles per year?<<<; Although you have not said so I understand from Taylor Vinson that th manufacturer with whom you would contract is a foreign corporation which has never produced motor vehicles for the American market. We also understand that it may be less expensive to have your car built abroad than at home.; Under the circumstances you describe, the foreign corporation appear to be nothing more than your agent in fabricating the vehicles and returning them for sale. This would not affect your eligibility for exemption. You would retain the responsibility for certification, as we understand it, even though the name of the foreign manufacturer would also appear on the certification label, as required by 49 CFR 567.4(g)(1).; Your second question is: >>>(2) In the event that North American Classics enters into a agreement to have such vehicles produced or assembled by a major automotive manufacturer, who would not be so eligible, and if such agreement provides for the sharing of profits derived from the sales of the finished product between North American Classics and such manufacturer, as a means of providing North American Classics assurance that projected costs of such manufacturer do not increase beyond North American Classics' ability to survive financially, in such event would North American Classics retain its eligibility status, assuming North American Classics retains control of the functions outlined in paragraph?<<<; We do not believe that a profit-sharing agreement *per se* would affec your eligibility for exemption. Were the foreign company to receive a majority share of the profits or to purchase sufficient stock in your company to give it effective control, however, we would have substantial questions about which party actually exercises primary control.; I hope this answers your questions. Sincerely, Frank Berndt, Chief Counsel