Interpretation ID: 2870o
Assistant Manager, Regulatory Affairs
MMC Services, Inc.
3000 Town Center
Suite 1960
Southfield, MI 48075
Dear Ms. Bakker:
This letter is in response to your request for an interpretation of 49 CFR Part 541, Federal Motor Vehicle Theft Prevention Standard. Specifically, you asked about a situation in which a car line (the Mitsubishi Galant) was designated as a high theft line beginning in the 1987 model year, pursuant to the procedures set forth in Part 542. Mitsubishi applied for and received an exemption from the marking requirements of the theft prevention standard because of a standard equipment antitheft device to be installed in the Galant. This exemption, issued pursuant to Part 543, applied beginning in the 1987 model year.
For the 1988 model year, the body style of the Galant was redesigned and a new nameplate was assigned to the line. It is now called the Galant Sigma. Additionally, Mitsubishi plans to introduce a new car line in the 1989 model year called the Galant. This line is, according to your letter, completely redesigned from the 1987 line that was called the Galant, bears no resemblance to the Galant Sigma, and will cost less than either the Galant Sigma or the 1987 line called Galant.
You posed the following questions:
1. Should a new theft determination be made for both the Galant Sigma and the redesigned Galant?
ANSWER: No. Based on the information enclosed with your letter, we conclude that the redesigned Galant is a continuation of the 1987 Galant line and the Galant Sigma is a new model within the Galant line.
As a general matter, section 601(2) of the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 2021(2)) defines the term "line" as "a name which a manufacturer applies to a group of motor vehicle models of the same make which have the same body or chassis, or otherwise are similar in construction or design." As noted in your letter, the agency uses the same language to define the term "line" in 541.4. This language treats groups of motor vehicles as a continuation of an existing line if the groups have the same name and are similar in construction or design. We have applied this language in the following manner.
With respect to the redesigned Galant, I addressed such a question in my March 6, 1987 letter to Mr. Jeffrey Link (copy enclosed) as follows:
The agency has in several instances determined that groups of vehicles using the same name as previous groups of vehicles were continuations of the previous line, even though the new vehicles used all new sheet metal and drivetrains as compared with the previous group of vehicles. This determination was based on the fact that the vehicles were still similar in construction or design to the older vehicles they replaced. On the other hand, NHTSA has also determined that groups of vehicles using the same name as previous groups of vehicles were nevertheless new lines, because of significant changes in the construction or design of the vehicle. For instance, when a vehicle is redesigned to be front wheel drive, it is not treated as the same line as the predecessor rear wheel drive line, even if the newly designed vehicle has the same name as the older vehicles.
The redesigned Galant obviously has the same name as the 1987 model year Galant. Additionally, the redesigned Galant is similar in construction and design to the 1987 Galant, notwithstanding the new sheet metal and different drivetrains. Accordingly, we believe that the redesigned Galant is a continuation of the 1987 Galant line. This means that the redesigned Galant is subject to the previous high theft determination for the Galant line.
With respect to the Galant Sigma, we conclude that this is a new model within the Galant line, not a new line. In our preamble to the insurer reporting requirements in 49 CFR Part 544, we discussed the application of the terms "model, make, and line" as follows:
"Make" refers to the general name used by the vehicle manufacturer. For example, Dodge, Ford, and Pontiac are makes of vehicles. "Line" refers to the nameplate assigned by the manufacturer to a group of vehicle models of the same make. For example, Dodge Charger, Ford Thunderbird, and Pontiac 6000 are lines of vehicles. "Model" refers to a specific grouping of similar vehicles within a line. For example, the Dodge Charger 2.2 2-door, Ford Thunderbird Turbo Coupe, and Pontiac 6000 LE 4-door are models. 52 FR 59, at 65; January 2, 1987.
In general, if a manufacturer calls a group of vehicles by the same general name as it applies to another group, but adds a further description to that name (e.g., Honda Civic CRX, Volkswagen Golf GTI, and Porsche 911 Carrera), we presume that the further description indicates a unique model within that line. This presumption can be overcome only if the vehicle with the further description in its name is not "similar in construction or design." Thus, we have determined, for example, that the Honda Civic CRX is simply a model within the Civic line, notwithstanding the fact that its driveline and body styling are different from all other Honda Civic models. It is similar in construction or design (all are front-wheel drive passenger cars) and bears the same name as other Civics.
On the other hand, the Colt/Mirage Station Wagon is not considered a model within your Colt/Mirage line. The Station Wagon bears the same name as other Colt/Mirage models. However, the Colt/Mirage Station Wagon is classified as a multipurpose passenger vehicle, while the other Colt/Mirage models are passenger cars. This difference is substantial enough that the vehicles are not "similar" in construction or design.
In the case of the Galant Sigma, we agree that it is not identical in construction or design to the other redesigned Galant models. However, it is similar in construction and design to the other Galant models, since all are front-wheel drive passenger cars. Hence, the Galant Sigma is simply a model within the Galant line.
2. If a new high theft determination should not be made for the redesigned Galant and the Galant Sigma, which of the vehicles is designated as high theft and for which car line could the exemption granted for the old Galant be used?
ANSWER: As explained above, the Galant Sigma is not a separate car line, but is simply a model within the Galant line. The redesigned Galant line is a continuation of the older Galant line. Thus, the previous high theft determination applies to all models in the redesigned Galant line, including the Galant Sigma.
The exemption that was granted to the older Galant line can be used for the redesigned Galant line if the antitheft device that was the subject of the previous petition is installed as standard equipment in all cars in the redesigned Galant line, including the Galant Sigma. If the antitheft device that was the subject of the previous petition is not installed as standard equipment in all cars in the redesigned Galant line, you would be required to mark all cars in the redesigned Galant line to conform to Part 541.
3. If one or both the redesigned Galant and the Galant Sigma are newly designated as high theft lines, can the exemption granted for the Galant in the 1987 model year be used for either or both car lines, or would the exemption be invalidated because of the change in body style?
ANSWER: Because the redesigned Galant is a continuation of the 1987 Galant line and the Galant Sigma is just a model within the redesigned Galant line, as explained above, the exemption granted under Part 543 to the 1987 Galant line continues in full effect for the redesigned Galant line. Your company has the option of installing anti-theft devices as standard equipment in all vehicles in the redesigned Galant line, including the Galant Sigma, in accordance with the 1987 exemption, or marking all major parts in all vehicles in the redesigned Galant line, in accordance with Part 541. 4. If an exemption is granted but a manufacturer continues to mark parts in accordance with Part 541, can installation of the anti-theft device be discontinued at any time?
ANSWER: Yes. Exemptions are granted only, among other things, after a determination has been made that the line in question is a high theft line that should be listed in Appendix A of Part 541. Section 541.3 states that the parts marking requirements of Part 541 apply to all lines listed in Appendix A. Section 541.5 requires each major part that is original equipment on a line designated as high theft to be marked with certain information. Section 541.6 requires each replacement major part for high theft lines to be marked with certain information. Thus, each line listed in Appendix A must comply with the requirements of sections 541.5 and 541.6.
There is a single exception to this requirement. Part 543 sets forth procedures by which a line that has been determined to be a high theft line can be exempted from the marking requirements of Part 541. To be eligible for an exemption under Part 543, an antitheft device must be installed as standard equipment in all cars in the line. The lines that have been granted exemptions under Part 543 are listed in a special subset of Appendix A, Appendix A-I. When a manufacturer gets an exemption for a line under Part 543, it is given two options to comply with the requirements of Part 541. First, the manufacturer can install the antitheft device that was the subject of the exemption proceeding under Part 543 as standard equipment on all cars in that line, in accordance with the terms of the exemption. However, the manufacturer is not required by Part 543 or any other provision to install standard equipment antitheft devices in that line. If the manufacturer chooses not to use the antitheft device exemption for that line, the manufacturer must choose the second option -- that is, marking the major parts of every car in the line, in accordance with 541.5, and marking the replacement major parts for that line, in accordance with 541.6. If a manufacturer has complied with both of these options in a particular model year, by marking every vehicle and every covered major replacement part for a line and by installing an antitheft device that was the subject of a Part 543 exemption proceeding in every marked vehicle, as posited in your example, the manufacturer is free to discontinue either, but not both, of the courses of action at any point during the model year. When the manufacturer chooses to discontinue either course of action for even a single vehicle in the high theft line, it is then required to follow the other course of action until the end of the model year in question.
Please note that this choice exists only if the manufacturer has complied fully with the requirements of Part 541.5 and Part 541.6 and with the terms of the exemption granted under Part 543. If some vehicles in a line or some of the replacement major parts were not marked in accordance with Part 541, the manufacturer must install the antitheft device that was the subject of the Part 543 proceeding in all vehicles in that line for the rest of the model year. When the next model year for the subject line begins, the manufacturer is permitted to discontinue the installation of the antitheft device and to comply with the requirements of Part 541 for that line in the new model year. However, for any particular model year, each of a manufacturer's lines must fully comply with either the requirements of Part 541 or the exemption granted under Part 543.
Please feel free to contact Steve Kratzke of my staff if you have any further questions or need more information on this subject.
Sincerely,
Erika Z. Jones Chief Counsel
Enclosure
ref:54l#542#543 d:5/4/88