Interpretation ID: aiam4075
Director
Regulatory Research and Analysis
Chrysler Corporation
P.O. Box 1919
Detroit
MI 48288;
Dear Mr. Sornson: This responds to your letter to Administrator Steed, asking this agenc to 'delay' its final selection of the Chrysler LeBaron GTS and Dodge Lancer car lines as 'high theft lines' for the purposes of 49 CFR Part 541, *Federal Motor Vehicle Theft Prevention Standard*. Section 603(a)(3) of the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 2023(a)(3)) requires that all selections of lines initially introduced into commerce before the effective date of Part 541 (April 24, 1986) as high theft lines must be made final within one year after enactment of Title VI of the Cost Savings Act. Neither that statutory requirement nor the implementing regulations adopted by this agency contain any provision that would allow this agency to 'delay' its final selection. Accordingly, your request is denied.; In accordance with 15 U.S.C. 2023(a)(3) and 49 CFR Part 542, th National Highway Traffic Safety Administration (NHTSA) informed Chrysler of its final selection of the LeBaron and Lancer lines as high theft lines by letter dated October 25, 1985. That letter was a final agency action on this question, again in accordance with 15 U.S.C. 2023(a)(3). There is no provision in the law allowing us to 'delay' final selections, so there is no basis for entertaining your request.; You stated in your letter that the best test of whether a car lin should be treated as a high theft line is its actual theft rate. We agree with that statement. However, it does not address the issue of how to treat car lines, such as your LeBaron GTS and Lancer, for which sufficient theft data are not available.; This agency has been told repeatedly by law enforcement groups that th theft rate for a car in its initial year of introduction is almost always lower than its theft rate in subsequent model years. This is because the vehicle population is relatively small, and experiences a lesser exposure to accidents and other damage than do lines which have been available for more than one model year. Accordingly, lines are less desirable targets for chop shops in their first year of introduction than they become in subsequent model years. Because of this phenomenon, NHTSA did not believe it appropriate to make selections of high theft lines based solely or primarily on preliminary theft data.; Under section 603(a)(3) of the Cost Savings Act, the agency wa required to select not later than October 25, 1985, (one year after the date of the enactment of Title VI of the Cost Savings Act) the high theft lines from among all lines introduced between January 1, 1983, and the effective date of the theft prevention standard. To meet this statutory deadline, NHTSA published a proposal to establish a new Part 542, *Procedures for Selecting Lines to be Covered by the Theft Prevention Standard*, at 50 FR 25603, June 20, 1985. Section 542.1 set forth six proposed criteria to be used in selecting likely high theft lines from lines such as the LeBaron GTS and the Lancer, which were introduced after January 1, 1983, and before the effective date of the theft prevention standard. These criteria were:; >>>1. Retail price of the vehicle line. 2. Vehicle image or marketing strategy. 3. Vehicle lines with which the new line is intended to compete, an the theft rates of such lines.; 4. Vehicle line(s), if any, which the new line is intended to replace and the theft rate(s) of such line(s).; 5. Presence or absence of any new theft prevention devices or systems. 6. Preliminary theft rate for the line, if it can be determined on th basis of currently available data.<<<; Chrysler's comments on the proposal stated, 'We generally concur wit the proposed procedures. In our opinion the information which the NHTSA is requesting from manufacturers in order to establish anticipated theft rates for their various car lines appears reasonable.' General Motors commented that the agency should adopt some weighting of these criteria, so that the process of selecting a line as a high theft line would be more objectively defined. General Motors specifically commented, 'Probably the only criterion which could be used with any degree of certainty in selecting vehicles ... is theft data.' In the final rule establishing Part 542, NHTSA responded to this comment as follows:; >>>As noted in the NPRM, these judgments of likely high theft lines ar partially subjective judgments. NHTSA concurs with GM's statement that neither price nor vehicle image alone can be strictly correlated to vehicle theft rates. However, NHTSA believes that the six criteria set forth in Appendix C considered together do form an objective basis for predicting if a new line is likely to be a high theft line. 50 FR 34831, at 34834, August 28, 1985.<<<; NHTSA continues to believe that the six criteria form an objectiv basis for predicting if a new line is likely to be a high theft line. When these criteria were applied to the LeBaron GTS and Lancer lines, we concluded that criterion 1 did not point to the cars being either high or low theft, criteria 2 and 3 indicated the lines would be high theft, criteria 4 and 5 were not applicable, and criterion 6 indicated the cars would be low theft. On balance, then, the criteria indicated the lines will be high theft lines.; Accordingly, even if there were some authority to allow us to delay th October 25 final selections, we would still conclude that the LeBaron GTS and Lancer lines are likely high theft lines.; Sincerely, Erika Z. Jones, Chief Counsel