Interpretation ID: nht92-7.5

DATE: May 14, 1992 EST

FROM: Paul Jackson Rice -- Chief Counsel, NHTSA

TO: John Faist -- DAS Fleet Services Division, City of Seattle

TITLE: None

ATTACHMT: Attached to letter dated 2/4/92 from Chris Kuczynski to Manager, NHTSA (OCC 6983)

TEXT:

This responds to the letter to the National Highway Traffic Safety Administration (NHTSA) from Chris Kuczynski of your Division, asking how the provisions of 49 CFR Parts 554-557, 565-568, 571, 573, 576, 577, and 579 pertain to "a municipal government agency that transfers, modifies and/or fabricates custom vehicle bodies for use by its own departments." In a telephone conversation with Walter Myers of this office, you stated that the operations referred to in the letter involve only trucks, both light and heavy; that you combine both new and used bodies with both new and used chassis, endeavoring to retain the old engines, power axles, and transmissions to the extent possible; that such operations include mounting equipment on truck chassis to create such specific-purpose vehicles as dump trucks, cranes, and the like; and that some of the operations are done in your own shops while others are contracted out to local body shops. The issues raised in your letter are addressed below.

By way of background information, the National Traffic and Motor Vehicle Safety Act (15 U.S.C. 1381 et sec.; Safety Act) authorizes this agency to establish Federal motor vehicle safety standards for new motor vehicles and items of motor vehicle equipment. Under the Safety Act, manufacturers are required to certify that their products meet all applicable safety standards.

NHTSA's safety standards are set forth at 49 CFR Part 571. The agency has also established a number of other regulations in carrying out its responsibilities under the Safety Act, including ones related to certification. All of the regulations cited in your letter apply to manufacturers of motor vehicles and/or motor vehicle equipment.

The Safety Act also prohibits commercial establishments such as repair businesses from "rendering inoperative" any device or element of design installed in or on a vehicle in compliance with an applicable safety standard. This provision does not apply to the situation of vehicle owners modifying their own used vehicles.

The issue of whether NHTSA's safety standards and other regulations would apply to your agency with respect to the operations it performs on a particular vehicle is dependent on the answers to two questions: (1) whether the vehicle in question is considered a "motor vehicle" under the Safety Act, and (2) whether the operations are of such a nature that your agency is considered a "manufacturer" of the vehicle under the Safety Act.

With respect to the first of these questions, NHTSA has jurisdiction over "motor vehicles" as that term is defined by the Safety Act. I note that some vehicles which may be operated by a municipal agency are not considered motor

vehicles. These include airport runway vehicles and certain, but not all, construction and maintenance equipment. NHTSA's safety standards and related regulations do not have any applicability with respect to vehicles that are not considered motor vehicles. I have enclosed copies of two previous letters which should enable you to determine which of the vehicles you perform operations on are considered motor vehicles under the Safety Act (August 8, 1988 letter to Caterpillar Tractor Co. and February 25, 1986 letter to Richard F. Hahn, Esq.).

While NHTSA's safety standards and other regulations do not generally apply to modifications made by vehicle owners to their used vehicles, it is possible for such modifications to be so substantial that the resulting vehicle is considered a new vehicle instead of just a modified used vehicle. In this case, the new vehicle is required to meet all applicable safety standards in effect on its date of manufacture, just like every other new vehicle. This date would be the date such substantial modifications are completed.

In order to enable vehicle modifiers to determine when the modifications are so substantial that the vehicle is considered a new vehicle, NHTSA established specific criteria at 49 CFR Part 571.7(e), Combining new and used components. That section reads as follows:

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.

NHTSA has consistently interpreted that provision to mean that, by its terms, it applies only to new bodies and not to old ones, and that placing a new body on an old chassis does not produce a new vehicle so long as the engine, transmission, and drive axles, as a minimum, are not new AND at least two of these three listed components were taken from the same vehicle. Conversely, a new vehicle would result by placing a new body on an old chassis utilizing new, a combination of new and used, or used engine, transmission, and drive axles no two of which were taken from the same vehicle.

A new vehicle would also result by placing a body, new or used, on a new chassis. In that case the new chassis is an incomplete vehicle which is defined at 49 CFR Part 568.3 as:

(A)n assemblage consisting, as a minimum, of frame and chassis structure, powertrain, 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.

By adding a body to the new chassis, your agency would become a final-stage manufacturer, defined in Part 568.3 as "a person who performs such manufacturing operations on an incomplete vehicle that it becomes a completed vehicle." 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 of the incomplete vehicle, the date of final

completion, or a date between those two dates.

I hope this information is helpful. For your additional information, I am enclosing a NHTSA fact sheet entitled "INFORMATION FOR NEW MANUFACTURERS OF MOTOR VEHICLES AND MOTOR VEHICLE EQUIPMENT." If you have any further questions with regard to this matter, please feel free to contact Walter Myers of my staff at this address or by telephone at (202) 366-2992.