Interpretation ID: nht88-2.13

TYPE: INTERPRETATION-NHTSA

DATE: 05/02/88

FROM: AUTHOR UNAVAILABLE; Erika Z. Jones; NHTSA

TO: Durham & Associates, P.C.

TITLE: FMVSS INTERPRETATION

TEXT:

Robert R. Keatinge, Esq. Durham & Associates, P.C. Suite 1750 950 17th Street Denver, CO 80202

Dear Mr. Keatinge:

This is a response to your letter of December 1, 1987, making this agency to clarify your understanding of 49 CFR S571.7(e). That section reads in part as follows:

Combining new and used components. When a new cab is used in the assembly of a truck, the truck will be considered newly manufactured ...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.

You referred to my August 11, 1987 letter to Mr. Ernest Parmer, and expressed concern that my having discussed only one aspect of S571.7(e) in that letter has led to some confusion. My letter to Mr. Parmer states that 'a modified school bus or truck is n ot considered a 'new' vehicle if, at a minimum, the engine, transmission, and drive axle(s) are not new and at least two of these three listed components are taken from the same used vehicle.' You stated that while my statement is 'correct,' my response did not address the first clause of this provision: 'When a new cab is used In the assembly of a truck...' you asserted that, a bus should not be considered 'new' unless a new body is attached to the chassis.' Your assertion is correct with respect to S5 71.7(e), but there is another regulation that specifies a vehicle is 'new' if an old body is combined with a new chassis.

By its own terms, S571.7(e) applies only in situations where a new body is combined with either (1) mixed new and used chassis components, or (2) used components from different vehicles. You were correct, then, in asserting that 5571.7(e) applied only to situations involving a new body. For the purposes of the Parmer letter, it Has understood between Mr. Parmer and a member of my staff that the bus bodies in question were new, so that letter did not purport to address the question of combining an old bu s body with new and or/used chassis Components.

Many of our prior interpretations have stated that a person who adds a new or used body to a new chassis to produce a school bus is considered the manufacturer of a new school bus, and must certify that the new bus conforms with all applicable safety sta ndards, just as every other school bus manufacturer must. In this case, the new chassis is an incomplete vehicle. 'Incomplete vehicle' is defined in 19 CFR 5568.3 as:

an assemblies consisting, as a minimum, of a 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 o perations, 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.

When a new bus chassis is used to produce a vehicle, the person who adds a body - even an old body - is a final-stage manufacturer, within the meaning of 49 CFR 5568.3. Final-Stage manufacturers are required to certify that the completed vehicle conforms with all applicable Federal Motor Vehicle Safety Standards in effect on the date of manufacture. The date of manufacture for these buses cannot be earlier than the date on which the chassis manufacturer completed its work on the chassis and cannot be la ter than the date the final-stage manufacturer completed its manufacturing operations. See 49 CFR S567.5, Requirements for Manufacturers of Vehicles Manufactured in Two or More Stages.

Note that neither S571.7(e) nor Part 568 would require a person to certify that a school bus complies with all applicable safety standards, if that person merely rebuilds or replaces an engine, drive axle, or transmission in a bus, or if that person plac es a used bus body on a used chassis.

I hope you find this information helpful.

Sincerely,

Erika Z. Jones Chief Counsel December 4, 1987

Erika Z. Jones, Esq. Chief Counsel National Highway Traffic Safety Administration United States Department of Transportation 700 Seventh Street Washington, D.C. 20890

Re: Your letter of August 11, 1987 to Ernest Farmer

Dear Ms. Jones:

This letter is to confirm my understanding of 49 CFR S571.7(e) as interpreted by the National Highway Traffic Safety Administration ('NHTSA'). In your letter of August 11, 1987 to Mr. Ernest Farmer, the Director of Pupil Transportation for the Tennessee Department of Education, you twice (at the top of page 2 and in the first paragraph of section 3 on page 3) make reference to the portion of 5571.7(e) which says that a bus will not be considered 'new' if the engine, transmission and drive train are not new and at least two of these components are from the same vehicle.

While this statement is a correct statement of part of the test under 5571.7(e) it does not address the part of the regulation which states that a truck (or, here, a bus) will be considered new only if the cab (or, here, a body? is replaced. The descrip tion of the regulation contained in your letter may have been in response to an Inquiry which assumed the replacement of the bus body (as did FR Docket No. 85-22646).

On Friday, December 4, 1987 I discussed this point with Joan Tilghman of your office. She confirmed what appears to be the clear reading of S571.7(e) to the effect that the replacement of the engine, transmission and/or rear axle only becomes an issue 'W hen a new cab (here, body) is used in the assembly of a truck (here, bus)...". In other words, a bus should not be considered 'new' unless a new body is attached to the chassis.

Unfortunately, there has been some confusion as a result of the letter indicates that the NHTSA is changing the regulation to provide in effect that whenever a new or rebuilt engine, transmission or rear axle is put in a bus the bus must be brought into conformity with current standards regardless of whether the body has been replaced. As discussed above, and as confirmed by Ms. Tilghman, I don't think that was your intention.

If the foregoing accurately describes the NHTSA's position, I would appreciate your confirming this to me so that we can correct the misunderstanding. Until this ambiguity is resolved, my client is in a difficult position inasmuch as the governmental age ncies are unsure how to proceed. Your prompt response would therefore be greatly appreciated.

If there are any questions in this regard or If I am incorrect in my understanding, I would appreciate your contacting me as soon as possible. Thank you for your consideration in this regard.

Sincerely,

Robert R. Keatinge