Interpretation ID: 3061yy
President
Three Wolves and Associates, Inc.
7124 Temple Hills Road
Suite 169
Camp Springs, Maryland 20748
Dear Mr. Albury:
This responds to your letter of June 3, 1991 concerning whether your company would be considered the manufacturer of certain vehicles. Your company is planning to use jeep conversion kits on Chrysler Corporation jeeps. Under one approach, your company would purchase the basic stripped down model jeep from Chrysler and add the body, stereo, air conditioning, tires, running lights, carpeting, and high visibility seats. You state that the body would be one solid piece and that your company would add wheel wells, doors, a solid or canvas top, and a windshield. Alternatively, your company would purchase the chassis, with engine and transmission, from Chrysler and add the above items.
I am pleased to have this opportunity to explain our regulations to you. Some background information on Federal motor vehicle safety laws and regulations may be helpful. As you are aware, the National Highway Traffic Safety Administration (NHTSA) is authorized, under the National Traffic and Motor Vehicle Safety Act (15 U.S.C. 1381 et seq., the Safety Act), to issue safety standards applicable to new motor vehicles and certain items of motor vehicle equipment. NHTSA, however does not approve motor vehicles or motor vehicle equipment, nor do we endorse any commercial products. Instead, the Safety Act establishes a "self-certification" process under which each manufacturer is responsible for certifying that its products meet all applicable safety standards.
I will address the responsibilities of your company under the Safety Act in each of the situations you described. First, if your company purchased a stripped down vehicle from Chrysler and made the modifications described, it could be considered an alterer under our regulations. Under 49 CFR Part 567, Certification, an alterer is defined as:
A person who alters a vehicle that has previously been certified . . . other than by the addition, substitution, or removal of readily attachable components such as mirrors or tire and rim assemblies, or minor finishing operations such as painting, . . . before the first purchase of the vehicle in good faith for purposes other than resale . . . .
As an alterer, your company would be required to certify compliance of its vehicles with the Federal Motor Vehicle Safety Standards in accordance with 49 CFR Part 567. The only exception would be if:
1. The modifications consisted solely of "readily attachable components;" or
2. The modifications were only "minor finishing operations."
Whether modifications involve "readily attachable" components depends on the difficulty in attaching those components. In the past, the agency has looked at such factors as the intricacy of installation and the need for special expertise. Without extraordinary ease of installation, NHTSA would not consider modifications involving the addition or substitution of seats to involve "readily attachable" components.
If considered an alterer, your company would be subject to the certification requirements of 49 CFR 567.7. These requirements include provisions that the alterer supplement the existing manufacturer certification label, which must remain on the vehicle, by affixing an additional label. The label would state that the vehicle as altered conforms to all applicable Federal motor vehicle safety standards. The label would also state the alterer and the month and the year in which the alterations were completed.
In addition to these certification requirements, an alterer is considered a "manufacturer" for the purposes of the Safety Act. Among other things, this means an alterer is responsible for notification and remedy of defects related to motor vehicle safety and noncompliances with applicable Federal motor vehicle safety standards, as specified in sections 151-160 of the Safety Act. Alterers also are subject to the requirements of 49 CFR Part 573, Defect and Noncompliance Reports.
Second, as an alternative, your company is considering buying a chassis from Chrysler. In that case, your company would likely be considered a final-stage manufacturer. Under 49 CFR Part 568, Vehicles Manufactured in Two or More Stages, a final-stage manufacturer is defined as:
A person who performs such manufacturing operations on an incomplete vehicle that it becomes a completed vehicle.
Under the regulation, incomplete vehicle is defined as
An assemblage consisting, as a minimum, of frame and chassis structure, power train, steering system, suspension system, and braking system, to the extent that those systems are to be part of the completed vehicle, that requires further manufacturing operations, other than the addition of readily attachable components, such as mirrors or tire and rim assemblies, or minor finishing operations such as painting, to become a completed vehicle.
As a final-stage manufacturer, your company's certification responsibilities would depend on the information provided by the manufacturer of the incomplete vehicle. Under 49 CFR Part 568, the incomplete vehicle manufacturer must furnish your company with a document which states one of the following three things concerning the incomplete vehicle:
1. The vehicle when completed will conform to some or all of the applicable safety standards if no alterations are made to any identified components of the incomplete vehicle;
2. The vehicle when completed will conform to some or all of the applicable safety standards if specific conditions are followed by the final-stage manufacturer;
3. Conformity with some or all of the applicable safety standards is not substantially affected by the design of the incomplete vehicle, so the incomplete vehicle manufacturer makes no representation as to conformity with the standards.
After receiving this document from the incomplete vehicle manufacturer, your company would be required to certify compliance with the safety standards. In addition to these certification requirements, a final-stage manufacturer is considered a "manufacturer" for the purposes of the Safety Act. Among other things, this means a final-stage manufacturer is responsible for notification and remedy of defects related to motor vehicle safety and noncompliances with applicable Federal motor vehicle safety standards, as specified in sections 151-160 of the Safety Act. In addition, final-stage manufacturers are subject to the requirements of 49 CFR Part 573, Defect and Noncompliance Reports.
I am also enclosing a general information sheet for manufacturers of new vehicles. This sheet highlights the relevant Federal statutes and regulations and explains how to obtain copies of the regulations.
I hope that this information is useful. If you have any further questions, please contact John Rigby at 202-366-2992.
Sincerely,
Paul Jackson Rice Chief Counsel
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