Interpretation ID: 1984-2.49

TYPE: INTERPRETATION-NHTSA

DATE: 08/07/84

FROM: AUTHOR UNAVAILABLE; Frank Berndt; NHTSA

TO: Dr. Eugenio Alzati -- General Director, Ferrari S.p.A.

TITLE: FMVSS INTERPRETATION

TEXT:

Dr. Eng. Eugenic Alzati General Director Ferrari S.p.A. 41100 Moodena Viale Trento Triesta, 31 ITALY

This responds to your letter to Mr. Steed, the Administrator of this agency, asking that Ferrari be allowed to petition for a low volume exemption from the generally applicable passenger automobile fuel economy standards. Ferrari had filed a petition asking such a request for its 1978 model year vehicles, but was ruled ineligible for a low volume exemption because Ferrari was controlled by Fiat, S.p.A. Now that Fiat has stopped importing vehicles into the US, you stated your belief that Ferrari is in the same position as Naserati, which has been ruled eligible to apply for low volume exemption. I need some further information to determine if Ferrari should be considered eligible to film a petition for a low volume exemption.

By way of background, section 502(c) of the Motor Vehicle information and Cost Savings Act (the Act) (15 U.S.C. (2002)(c) provides:

On application of a manufacturer who manufactured (whether or not in the US) fewer than 10,000 passenger automobiles in the second model year proceding the model year for which the application is made, the Secretary may, by rule exempt such manufacturer from (the generally applicable fuel economy standards).

To determine whether Ferrari manufactures fewer that 10,000 passenger automobiles, it is necessary to interpret and apply sections 501(9) and 503(c) of the Act. Section 501(9) specifies: the term "manufacturer" (sic) (except for purposes of section 502(c)) means to produce or assemble in the customs territory of the US, or to import." Section 503(c) reads as follows:

(c) Any reference in this part to automobiles manufactured by a manufacturer shall be deemed-- (1) to include all automobiles manufactured by persons who control, are controlled by, or are under common control with, such manufacturer; and (2) to exclude all automobiles manufactured (within the meaning of paragraph (1) during a model year by such manufacturer which are exported prior to the expiration of 30 days following the end of such school year.

As you noted in your letter, this agency has determined that Naserati is eligible to file a petition for a low volume exemption under section 502(c) of the Act, even though that company is under common control with Nuova Innocenti, S.p.A., which manufactures more than 10,000 passenger automobiles annually. This petition was allowed because NHTSA believes that the term "manufacture" in section 503(c) means to produce or assemble in the US, or to import into the US. Since none of the Nuova Innocenti automobiles are imported into the US, NHTSA concluded that only Naserati's worldwide production should be counted to determine whether that company was eligible for a low volume exemption.

Your situation is potentially similar to the Maserati situation, if the current importers of what formerly were the Fiat X1/9 and Spider 2000 were not found to be under the control of Fiat S.p.A. To make this determination, I will need answers to the following questions:

1. State whether Fiat S.p.A. owns any stock in either industrie Pininfarina S.p.A. or Carrozeria Bertone. If so, please state the extent of such holdings (both in number of shares and the percentage of total shares outstanding).

2. State whether the models which are sold in the US by Pininfarina and Bartone are sold in any other countries. If so, please state whether those models are marketed as Fiats, or whether they are marketed as Pininfarinas and Bartones.

3. State whether the components used by Pininfarina and Bartone when assembling these automobiles are manufactured by those companies or by another company. If any of the components are manufactured by Fiat S.p.A. or any of its subsidiaries, please identify and list each of these components.

4. Your letter had a Feb. 14 l983 letter from Fiat of North America to the Environmental Protection Agency attached thereto. On page 2 of that letter, the following sentence appears: "We would also like to advise you that we will officially be helping Industrie Pininfarine S.p.A. and Carrozeria Bertone in dealing with certification matters in accordance with instructions received from them and Fiat Auto S.p.A." Please detail any and all assistance Fiat of North America currently provides to Pininfarine and Bertone, what assistance was formerly provided, and when the official assistance was ended, if it has been ended.

5. Indicate whether Fiat currently provides any engineering, design, or servicing advice or assistance to Pininfarine and Bertone in connection with the 21/9 or Spider 2000 models. If so, indicate the motors and frequency of such assistance.

The agency will make a prompt determination of Ferrari's eligibility to file for an exemption under section 502(c) of the Act when we receive your answers to these questions. Sincerely, Frank Berndt, Chief Counsel