Interpretation ID: 77-1.50

TYPE: INTERPRETATION-NHTSA

DATE: 03/24/77

FROM: AUTHOR UNAVAILABLE; F. Berndt; NHTSA

TO: Bertolini Engineering Co., Inc.

TITLE: FMVSS INTERPRETATION

TEXT: This responds to your March 7, 1977, letter asking whether your proposed remanufacture of 573 trailer chassis would constitute the manufacture of new chassis which would be required to conform to Standard No. 121, Air Brake Systems, or any other applicable regulation.

According to the remanufacture proposal you describe, Seatrain Lines will be the user of the chassis both before and after the remanufacture, although it will no longer own any of them. Fruehauf Corporation will become the owner of all of the chassis, whereas it currently owns none.

The NHTSA regulations pertaining to the remanufacture of chassis are found in 49 CFR Part 571.7. In that regulation the agency states that the chassis must be owned or leased by the same entity both before and after remanufacture. Since Seatrain is the current user of the vehicles (as owner and lessee) and will continue to be the user after remanufacture (as a lessee), it appears that the remanufactured vehicle will not be one that requires certification with motor vehicle safety standards.

It should be pointed out that if the transaction you describe for achieving remanufacture becomes a large-scale practice in the trailer industry, the agency will be compelled to reconsider the meaning of "manufacture" under its regulations.

SINCERELY,

BERTOLINI ENGINEERING CO., INC.

March 7, 1977

Office of Chief Council National Highway Traffic Safety Administration U. S. Department of Transportation

ATTN: Karen Dyson

Pursuant to our telephone conversation of March 4, 1977, I would appreciate an opinion on the following proposed remanufacture scheduled for immediate production.

The facts are as follows: Seatrain Lines is a container steamship operator who operates many thousands of chassis in the United States. They have in service now 573 chassis which they would like to have remanufactured into updated pieces of equipment by Bertolini Engineering Company, Inc. The reason for this move is that they have found that the old frames are not worthwhile maintaining any longer because of their inability to stand the gaff of their day to day operations.

Furthermore, these chassis will not meet Association of American Railroads Piggyback Regulations which are due to become effective in January 1985. However, the running gear on these chassis is sound and shows very little wear and usage, and will be retained in the remanufactured vehicle. Of these 573 chassis, Seatrain is the owner of 300, which they had purchased on a conditional sales contract. The remaining 273 are owned by Thriftway Leasing Company who is leasing the equipment to Seatrain. Seatrain would like all 573 chassis leased back to them by Thriftway Leasing Company.

Thriftway Leasing Company in turn has come to Fruehauf Corporation for financial assistance to finance the package. Fruehauf Corporation therefore proposes to buy all 573 chassis, turn them over to Bertolini Engineering Company for remanufacture, and then lease them back to Thriftway who in turn will sublease them to Seatrain.

It should be pointed out that Seatrain will be the user before and after the remanufacture and the Fruehauf Corporation will be the owner before and after remanufacture.

Also, the Vehicle Identification Number will be carried through after remanufacture so as to maintain its original identity.

This procedure, we feel, is totally in accord with the requirements of Docket No. 75-9, Notice of the Federal Register, July 1, 1976 and we therefore request your concurrence that these chassis will not be considered newly manufactured and will not have to be certified as being in compliance with MVSS 121 or other applicable safety standards established subsequent to their original date of manufacture.

Please let me have your opinion on this as soon as possible inasmuch as we are ready to go into production on these units and are merely awaiting your interpretation.

William A. Bertolini President