Interpretation ID: 86-2.26
TYPE: INTERPRETATION-NHTSA
DATE: 04/21/86
FROM: AUTHOR UNAVAILABLE; Erika Z. Jones; NHTSA
TO: Robert R. Clark
TITLE: FMVSS INTERPRETATION
TEXT: This responds to your letter dated October 21, 1985, inquiring about the certification responsibilities under federal law of your client, a new car dealer. You stated in your letter that your client plans to convert new automobiles into limousines. These limousines would then be sold wholesale to dealers.
The relevant federal statute is the National Traffic and Motor Vehicle Safety Act of 1966, as amended (15 U.S.C. 1391 et seq.). Under section 103 of the Act, this agency issues Federal motor vehicle safety standards and regulations applying to motor vehicles and their equipment.
As we understand the facts stated in your letter, the automobiles will be completed by the original manufacturer who will certify that they meet all applicable Federal motor vehicle safety standards. Your client plans to alter the automobiles prior to their first purchase for purposes other than resale.
Your client's plan to convert automobiles would make him an alterer, subject to the requirements of 49 CFR Part 567.7, Certification. An alterer is a person who alters a previously certified vehicle by means other than the addition, substitution, or removal of readily attachable components or minor finishing operations, or in such a manner that the vehicle's stated weight ratings are no longer valid. If the alteration is performed before the first purchase of the vehicle for purposes other than resale, the alterer must supplement the certification label by affixing an additional label stating that the vehicle as altered conforms to all applicable Federal motor vehicle safety standards and containing the firm or individual name of the alterer.
An alterer is also considered a manufacturer for the purposes of notification and recall for defects or noncompliance under the Act and is subject to the requirements of 49 CFR Part 573, Defect and Noncompliance Reports.
In addition, please note that your client should take care in making the conversions not to harm the vehicles' safety features. Under section 108 of the Act, a manufacturer, distributor, dealer, or motor vehicle repair business must not knowingly render inoperative, in whole or in part, any device or element of design which is installed on or in a motor vehicle or item of motor vehicle equipment in compliance with an applicable Federal motor vehicle safety standard. Your client would be subject to this prohibition which applies both before and after the first purchase of a motor vehicle for purposes other than resale.
I hope this information is helpful to you.
SINCERELY,
TABBERT & CAPEHART ATTORNEYS AT LAW
October 21, 1985
Jeffrey R. Miller, Esqu. Chief Counsel National Highway Traffic Safety Administration
Dear Mr. Miller:
On Tuesday, October 15, 1985, I telephoned your office and spoke with Mr. Steve Oeshch regarding a client of this firm who wishes to convert fully assembled automobiles into limousines. After speaking with Mr. Oeshch, he suggested that I write to your office and request a formal interpretation in regard to this matter, in view of the facts as discussed.
The client is a new car dealer in Anderson, Indiana. He desires to purchase fully assembled new automobiles from the manufacturer and subsequently convert them into limousines. The limousines will in turn be sold wholesale to dealers.
I wish to know which federal Department of Transportation statutes must be complied with and how to classify the client, i.e. dealer, manufacturer or remanufacturer.
Could you kindly at your earliest convenience render an opinion regarding this matter. Any assistance you might give me would be greatly appreciated. Thank you.
SINCERELY, Robert R. Clark