Interpretation ID: nht95-4.36

TYPE: INTERPRETATION-NHTSA

DATE: September 25, 1995

FROM: John Womack -- Acting Chief Counsel, NHTSA

TO: Winston Sharples -- President, Cantab Motors, Ltd.

TITLE: NONE

ATTACHMT: NONE

TEXT: Dear Mr. Sharples

I enclose a copy of an order of the Administrator granting the petition by Cantab Motors for temporary exemption from Motor Vehicle Safety Standards Nos. 208 and 214. The exemption from Standard No. 208 will expire on September 1, 1997, and that for Sta ndard No. 214 on September 1, 1998.

In accordance with agency regulations on the subject, within 30 days after your receipt of this letter please provide the Director, Office of Vehicle Safety Compliance, with a copy of the certification label reflecting the exemption that will be used on Cantab's vehicles (49 CFR 555.9(a)).

We have received your letter of August 17, 1995, which admits that Cantab manufactured and sold nine vehicles manufactured after the expiration of its previous exemption that did not conform with Standard No. 208, and which enclosed a petition for a dete rmination of inconsequentiality on this matter. This is currently under review.

If you have any questions, you may discuss them with Taylor Vinson of this Office (202-366-5263).

Enclosure

ACTION: Issuance of Federal Register Notice Granting Cantab's Petition for Temporary Exemption From Standards Nos. 208 and 214 John Womack (K. WEINSTEIN) Acting Chief Counsel

Barry Felrice Associate Administrator for Safety Performance Standards

Attached for your signature is a Federal Register notice granting the petition by Cantab Motors for a temporary exemption from the automatic restraint requirements of Standard No. 208, and the side impact protection requirements of Standard No. 214. The basis of the grant is that compliance would cause substantial economic hardship to a manufacturer that has tried in good faith to meet the standards.

Cantab imports shells of Morgan sports cars from England, and installs propane engines and drive trains in the US; for this reason, we consider Cantab rather than Morgan as the manufacturer. In the year preceding the filing of its exemption petition it produced only 9 such cars. It has cumulative net losses approaching $ 93,000 for the last three fiscal years. It has been working with Morgan to develop vehicles that will be equipped with airbags meeting Standard No. 208, and provide side impact prote ction meeting Standard No. 214.

Because the components that must be modified for conformance are under the control of Morgan rather than Cantab, the company is dependent upon Morgan's efforts. Cantab asked for only a 2-year exemption from Standard No. 208, indicating that it is optimi stic that its cars will conform in less than the 3 years it could have asked for. However, it appears to require the full 3 years for Standard No. 214.

Any threat to safety that would be presented by an exempted vehicle would be minimal because they are few in number, and are represented as conforming to earlier versions of the two standards.

No comments were received on the application.

Attachment

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

Docket No. 95-53; Notice 2

Cantab Motors, Ltd.

Grant of Application for Temporary Exemption From

Federal Motor Vehicle Safety Standards No. 208 and 214

Cantab Motors, Ltd., of Round Hill, Va., applied for a temporary exemption of two years from paragraph S4.1.4 of Federal Motor Vehicle Safety Standard No. 208 Occupant Crash Protection, and for three years from Federal Motor Vehicle Safety Standard No . 214 Side Impact Protection. The basis of the application was that compliance will cause substantial economic hardship to a manufacturer that has tried to comply with the standard in good faith.

Notice of receipt of the application was published on July 14, 1995, and an opportunity afforded for comment (60 FR 36328).

The make and type of passenger car for which exemption was requested is the Morgan open car or convertible. Morgan Motor Company ("Morgan"), the British manufacturer of the Morgan, has not offered its vehicle for sale in the United States since the e arly days of the Federal motor vehicle safety standards. In the nine years it has been in business, the applicant has bought 35 incomplete Morgan cars from the British manufacturer, and imported them as motor vehicle equipment, completing manufacture by the addition of engine and fuel system components. They differ from their British counterparts, not only in equipment items and modifications necessary for compliance with the Federal motor vehicle safety standards, but also in their fuel system compon ents and engines, which are propane fueled. As the party completing manufacture of the vehicle, Cantab certifies its conformance to all applicable Federal safety and bumper standards. The vehicle completed by Cantab in the U.S. is deemed sufficiently di fferent from the one produced in Britain that NHTSA considers Cantab the manufacturer, not a converter, even though the brand names are the same.

Morgan itself produced 478 cars in 1994, while in the year preceding the filing of its petition in June 1995, the applicant produced 9 cars for sale in the United States. Since the granting of its original exemption in 1990, Cantab has invested $ 38, 244 in research and development related to compliance with Federal safety and emissions standards. The applicant has experienced a net loss in each of its last three fiscal (calendar) years, with a cumulative net loss for this period of $ 92,594.

Application for Exemption from Standard No. 208

Cantab received NHTSA Exemption No. 90-3 from S4.1.2.1 and S4.1.2.2 of Standard No. 208, which expired May 1, 1993 (55 FR 21141). When this exemption was granted in 1990, the applicant had concluded that the most feasible way for it to conform to the automatic restraint requirements of Standard No. 208 was by means of an automatically deploying belt. In the period following the granting of the exemption, Morgan and the applicant created a mock-up of the Morgan passenger compartment with seat belt h ardware and motor drive assemblies. In time, it was determined that the belt track was likely to deform, making it inoperable. The program was abandoned, and Morgan and Cantab embarked upon research leading to a dual airbag system.

According to the applicant, Morgan tried without success to obtain a suitable airbag system from Mazda, Jaguar, Rolls-Royce and Lotus. As a result, Morgan is now developing its own system for its cars, and "[as] many as twelve different sensors, of b oth the impact and deceleration (sic) type, have been tested and the system currently utilizes a steering wheel from a Jaguar and the Land Rover Discovery steering column." Redesign of the passenger compartment is underway, involving knee bolstering, a s upplementary seat belt system, antisubmarining devices, and the seats themselves. Morgan informed the applicant on May 2, 1995, that it had thus far completed 10 tests on the mechanical components involved "and are now carrying out a detailed assessment of air bag operating systems and columns before we will be in a position to undertake the full set of appropriate tests to approve the installation in our vehicles."

Application for Exemption from Standard No. 214

Concurrently, Morgan and the applicant have been working towards meeting the dynamic test and performance requirements for side impact protection, for which Standard No. 214 has established a phase-in schedule. Although Morgan fits its car with a dua l roll bar system specified by Cantab, and Cantab installs door bars and strengthens the door latch receptacle and striker plate, the system does not yet conform to the new requirements of Standard No. 214, and the applicant has asked for an exemption of three years. It does, however, meet the previous side door strength requirements of the standard. Were the phase-in requirement of S8 applied to it, calculated on the basis of its limited production, only very few cars would be required to meet the st andard.

Safety and Public Interest Arguments

Because of the small number of vehicles that the applicant produces and its belief that they are used for pleasure rather than daily for business commuting or on long trips, and because of the three-point restraints and side impact protection currentl y offered, the applicant argued that an exemption would be in the public interest and consistent with safety. It brought to the agency's attention two recent oblique front impact accidents at estimated speeds of 30 mph and 65 mph respectively in which t he restrained occupants "emerged unscathed."

Further, the availability "of this unique vehicle . . . will help maintain the existing diversity of motor vehicles available to the U.S. consumer." Finally, "the distribution of [this] propane-fueled vehicle has contributed to the national interest b y promoting the development of motor systems by using alternate fuels."

No comments were received on the application.

In adding only engine and fuel system components to incomplete vehicles, the applicant is not a manufacturer of motor vehicles in the conventional sense. It does not produce the front end structural components, instrument panel, or steering wheel, ar eas of the motor vehicle whose design is critical for compliance with the airbag requirements of Standard No. 208. These are manufactured by Morgan, and the applicant is necessarily dependent upon Morgan to devise designs that will enable conformance wi th Standard No. 208. The applicant has been monitoring Morgan's progress, and that company is engaging in testing and design activities necessary for eventual conformance. The fact that the applicant is requesting only a two-year exemption, rather than three, indicates its belief that complying operator and passenger airbags will at last be fitted to its cars by the end of this period.

Similarly, the applicant is dependent upon the structural design of its vehicle for compliance with Standard No. 214. As with Standard No. 208, Morgan and the applicant are working towards conformance, though apparently it will not be achieved within two years. In both instances, however, the applicant is conscious of the need to conform and has been taking steps to accomplish it. Although the company's total expenditure of $ 38,244 in the last five years to meet emission and safety requirements is low, the small number of cars produced for sale in the United States in the last year, nine, would not make available substantial funds to the company, and its cumulative net losses of $ 92,594 indicate an operation whose financial existence is precario us.

Applicant's cars are equipped with manual three-point restraint systems and comply with previous side impact intrusion requirements. Because applicant produces only one line of vehicles, it cannot take advantage of the phase-in requirement. Given th e existing level of safety of the vehicles and the comparatively small exposure of the small number of them that would be produced under an exemption, there would appear to be an insignificant risk to traffic safety by providing an exemption. The public interest is served by maintaining the existence of small businesses and by creating awareness of alternative power sources.

In consideration of the foregoing, it is hereby found that to require immediate compliance with Standards Nos. 208 and 214 would cause substantial economic hardship to a manufacturer that has in good faith attempted to meet the standards, and that an exemption would be in the public interest and consistent with the objectives of traffic safety.

Accordingly, the applicant is hereby granted NHTSA Exemption No. 95-2, from paragraph S4.1.4 of 49 CFR 571.208 Motor Vehicle Safety Standard No. 208 Occupant Crash Protection, expiring September 1, 1997, and from 49 CFR 571.214 Motor Vehicle Safety St andard No. 214 Side Impact Protection, expiring September 1, 1998.

(49 U.S.C. 30113; delegation of authority at 49 CFR 1.50)

Issued on SEP 7 1995

Ricardo Martinez, M.D. Administrator

BILLING CODE: 4910-59-P