Interpretation ID: nht93-7.35

DATE: October 22, 1993

FROM: John Womack -- Acting Chief Counsel, NHTSA

TO: Milford R. Bennett -- Head, Safety Affairs and Operations, NAO Engineering, Safety Center, General Motors Corporation

TITLE: None

ATTACHMT: Attached to letter dated 10/7/93 from Milford R. Bennett (Signature by Richard F. Humphrey) to H. M. Smolkin (OCC-9189)

TEXT:

This is in reply to your letter of October 7, 1993, to Howard Smolkin concerning information labels for vehicles covered by NHTSA temporary exemptions (49 CFR Part 555).

Paragraph 555.9(b) requires that a windshield or side window label containing an advisory statement be affixed securely to each exempted vehicle. You have concluded that this label is intended to notify prospective purchasers that the vehicle has been exempted from compliance with certain Federal motor vehicle safety standards. Because General Motors (GM) does not intend to sell its recently exempted GMEV, it believes that it is not required to place the label on its vehicles.

Section 123(b) of the National Traffic and Motor Vehicle Safety Act (the Act) (15 U.S.C. 1410(b)) specifies that "(t)he Secretary may require that written notification of (an) exemption be delivered to the dealer and first purchaser for purposes other than the resale of such exempted motor vehicle in such manner as he deems appropriate." NHTSA chose to exercise this discretionary power through promulgating paragraph 555.9(b) requiring windshield and side window labels on exempted vehicles, commenting that "(t)he window label appears to be the most appropriate way of providing written notification of exemptions to dealers and first purchasers" (37 FR 25534).

We read in The New York Times on October 14, 1993, that GM will build 50 Impacts (presumably the exempted GMEVs) "and lend them for two to four weeks to 1,000 drivers around the country over the next two years, with the help of 14 utilities." If these cars are made available through GM's dealer network, then we believe that the label should nevertheless be provided even if the vehicle is not sold, and that it should remain affixed until the vehicle is first lent or leased through the dealer. Although subsequent users of the GMEV will not have access to the temporary label in order to evaluate the risk they assume by accepting temporary use of a nonconforming motor vehicle, the permanently affixed exemption certification label will furnish this information should they care to consult it.