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Interpretation ID: 2855o

Mr. Richard J. Matysiak
President
Auto Chek, Inc.
P.O. Box 258
Stone Mountain, GA 30086-0258

Dear Mr. Matysiak:

This responds to your letter to Mr. Frank Ephraim of our Office of Plans and Policy, asking about the effects of the Federal Motor Vehicle Theft Prevention Standard (49 CFR Part 541; copy enclosed) on certain body repair processes. Specifically, you asked how the theft prevention standard would affect the body repair process of "clipping" body sections from one vehicle and attaching the clipped section to a different vehicle. This repair process is not prohibited or regulated by the theft prevention standard, as explained below.

The purpose of the theft prevention standard is to reduce the incidence of motor vehicle thefts by facilitating the tracing and recovery of parts from stolen vehicles. To achieve this purpose, the theft prevention standard requires manufacturers to affix or inscribe identification markings onto 14 major original equipment and replacement parts of certain high theft cars. Dealers and repair shops are prohibited from removing, obliterating, tampering with, or altering these identification markings, unless the removal, obliteration, tampering, or alteration is reasonably necessary to repair the part or vehicle; see 18 U.S.C. 511.

These requirements should not significantly impact the repair process of "clipping" described in your letter. Nothing in the theft prevention standard or the law prohibits a repair shop from clipping sections from wrecked vehicles. The repair shop would be required by law to leave in place any identification markings on the "clipped" section that were not damaged in the "clipping" process.

As noted in your letter, the repaired vehicle might have two different vehicle identification numbers (VIN's) marked on its major parts, with some parts marked with the VIN assigned to the repaired vehicle and other parts marked with the VIN assigned to the damaged vehicle from which the section was "clipped." The Motor Vehicle Theft Law Enforcement Act of 1984, which ordered this agency to promulgate the theft prevention standard, clearly contemplates that vehicles undergoing repair could wind up with some parts numbered differently than the parts originally on the car. That law is based on the idea that some major parts are likely to survive a crash undamaged and that those parts can legitimately be used to repair other vehicles. Such repairs would naturally result in repaired cars having some parts numbered differently than the rest of the car. Since the law enforcement community vigorously supported this law, they must not have believed that cars with some parts numbered differently than the other parts of the car would pose particular problems for them.

You also asked how the "clipping" process would affect our disclosure and titling requirements. We answered the question of how the disclosure requirements apply in an October 15, 1980 letter to Mr. John Kelly of the Iowa Department of Transportation. In the letter to Mr. Kelly, we said, "... if a vehicle is constructed from the parts of several vehicles, the odometer statement must still be completed at the time of sale. If the seller knows the mileage on the various components used to construct the vehicle, he should inform the purchaser of the highest mileage that he knows, or the mileage on the chassis if he knows it. If he does not know the mileages, he will be required to state that the mileage is not accurate and should not be relied upon. Titling requirements and designations such as "salvage" and "rebuilt" vehicles are determined by State law, not Federal law.

If you have any further questions on this matter, please contact Steve Kratzke of my staff at this address, or by telephone at (202) 366-2992.

Sincerely,

Erika Z. Jones Chief Counsel

Enclosure

ref:541#580 d:3/30/88