Interpretation ID: 19832.ztv

Mr. Jonathan Ward
CEO and President
TLC, Inc.
14743 Oxnard Street
Van Nuys, CA 91411

Dear Mr. Ward:

This is in response to your letter to Coleman Sachs of this Office which we received on April 8, 1999. You asked for an opinion on your plan "to sell restored pre-1974 Toyota Land Cruisers comprised of new and used parts."

You intend to begin with "an assemblage of new motor vehicle equipment including body, frame, steering, suspension, brake, axle, differential, glazing, interior and trim assemblies

. . . ." The equipment taken from the "U.S. spec. pre-1974 donor vehicle" includes "the front and rear driveshaft assemblies including yokes and flanges, complete rear drive gear assembly, front right frame extension, vin plates and title." You believe that "pursuant to 49 CFR 571.7(E) and 15 U.S.C. 1391(3)" you "would satisfy DOT's standards of minimum donor vehicle parts content and definition of assemblage of motor vehicle equipment." You then comment that "the restored vehicle will meet or exceed DOT standards of the donor vehicle's year of manufacture," and ask whether you "can legally sell the vehicle complete with drivetrain or do we have to sell it as a kit and have the customer pay a separate corporation to supply and install the drivetrain?" You conclude by saying that "if we must, our third step would be that a separate corporation will be contracted by the customer to install an EPA and CARB compliant drivertrain. The vehicle will then be offered for sale by TLC Inc."

The Toyota Land Cruiser for 1974 and previous years appears to be a "multipurpose passenger vehicle" for purposes of compliance with 49 CFR Part 571, the Federal motor vehicle safety standards. A "multipurpose passenger vehicle" is defined in pertinent part as one that "is constructed either on a truck chassis or with special features for occasional off-road operation." (Sec. 571.3(b)). You cited 49 CFR "571.7(E)." The provisions of Sec. 571.7(e) Combining new and used components apply only to trucks, not to multipurpose passenger vehicles that may be built on a truck chassis. This section was adopted in 1975 to accommodate the use of glider kits in the reconstruction of trucks (40 FR 49340). This section is not applicable to other types of motor vehicles. We do not understand your citation of 15 U.S.C. 1391(3). That section (now recodified as 49 U.S.C. 30102(a)(6)) is simply the statutory definition of "motor vehicle."

The vehicle you describe cannot, in our opinion, be termed a "restored" 1974 Land Cruiser, even though you intend the completed vehicle to carry the VIN and title of one. The original Land Cruiser will be disassembled to the point that it is no longer a motor vehicle. Only the original "front and rear driveshaft assemblies including yokes and flanges, complete rear drive assembly, [and] front right front frame extension" will be used again. As we understand your letter, the rest of the vehicle, including its body and frame, is new. Under these circumstances, when the vehicle is assembled it will be a motor vehicle manufactured as of the assembly date and one that has not been delivered to its first purchaser for purposes other than resale. That is to say, the vehicle will be a new motor vehicle to which current Federal motor vehicle safety standards and other regulations apply. As a new vehicle, we believe it cannot carry the VIN of an earlier vehicle, but must be equipped with a new VIN meeting the requirements of 49 CFR Part 565. We are not conversant with state titling practices, and cannot provide information about them.

Our interpretation means that the vehicle must be certified by its manufacturer (TLC or the "separate corporation") as conforming to current Federal safety standards as required by 49 U.S.C. 30115 and 49 CFR Part 567. You should contact EPA and CARB for information about their regulations. The certifying manufacturer must also file an identification statement with this agency pursuant to 49 CFR Part 566.

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

Sincerely,
Frank Seales, Jr.
Chief Counsel
ref:571
d.5/21/99