Interpretation ID: aiam3957
Associate Director
American Truck Dealers Division
National Automobile Dealers Association
8400 Westpark Drive
McLean
VA 22102;
Dear Mr. Westlake: This is in reply to your letter of February 25, 1985, to Mr. Stephe 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 ou 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 Standard ('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 CF 571.7(e), provides:; >>>'When a new cab is used in the assembly of a truck, the truck wil 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 ar 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 b 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 (sic) 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 classifie 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 al 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 Federa regulations?'<<<; As provided by section 109(a) of the act, any person violating an 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