Interpretation ID: DNBA_B.Nicolle_Parts_573_and_579
Bill Nicolle
Product Safety and Compliance Officer
Daimler Buses North America
350 Hazelhurst Road
Mississauga, Ontario
Canada L5J 4T8
Dear Mr. Nicolle,
Thank you for your email of June 1, 2012 requesting a written notification of the legal obligations of Daimler Buses North America (DBNA) in light of the planned changes at DBNA.
You state that DBNA has decided to cease manufacturing and outfitting buses in North America, and explain that this will affect Orion, Sprinter, and Setra buses and motorcoaches. You also state that DBNA will maintain a presence to handle service, warranty, and replacement parts issues for Orion buses, and that Setra will be transferred to MCI Corporation for sales marketing, service and warranty issues. You state that the status of the Sprinter mini-bus is yet to be determined. NHTSA understands that Orion, Sprinter, and Setra are brands of DBNA, and that DBNA fabricated and/or imported these vehicles. The agency also understands that MCI Corporation is not an affiliate of DBNA.
You request that the agency furnish a written notification of DBNAs legal obligations for defect and noncompliance recall reporting and early warning reporting.
With respect to defect and noncompliance recall reporting, including determining the existence of defects and noncompliances, providing notification to NHTSA and vehicle owners, purchasers, and dealers of such, remedying defects and noncompliances, and filing quarterly reports, legal liability falls on the manufacturer of the vehicles. See 49 USC 30118, 30120; 49 CFR 573.5. Manufacturer is defined as a person manufacturing or assembling motor vehicles or motor vehicle equipment or importing motor vehicles or motor vehicle equipment for resale. 49 USC 30102(a)(5). Since DBNA is the manufacturer of Orion, Sprinter, and Setra buses and motorcoaches, DBNA is responsible for any recall-related obligations associated with these vehicles. If MCI Corporation assumes and fulfills the recall obligations for Setra motor coaches, it would be considered compliance by DBNA. However, DBNA remains liable for these obligations under the statute.
With respect to early warning reporting, the vehicle manufacturer is liable for the required reports. See 49 CFR 579.5, 579.11, and 579.2. The early warning regulations define manufacturer as a person manufacturing or assembling motor vehicles or motor vehicle equipment, or importing motor vehicles, or motor vehicle equipment for resale. This term includes any parent corporation, any subsidiary or affiliate, and any subsidiary or affiliate of a parent corporation of such a person. 49 CFR 579.4. However, compliance by the fabricating manufacturer, the importer, the brand name owner, or a parent or subsidiary of such fabricator, importer, or brand name owner of the motor vehicle or motor vehicle equipment is considered compliance by all persons. See 49 CFR 579.3. Accordingly, since DBNA is the manufacturer of Orion, Sprinter, and Setra buses and motorcoaches, DBNA is responsible for submitting early warning reports for these vehicles. However, if MCI Corporation or another Daimler affiliate assumes and fulfills the obligation of submitting to the agency the required early warning reports for DBNAs buses and motor coaches, compliance by MCI Corporation or a Daimler affiliate would be considered compliance by DBNA as well.
I note that a bus manufacturer is required to report early warning information only if the aggregate number of buses manufactured for sale, sold, offered for sale, introduced or delivered for introduction in interstate commerce, or imported into the United States during the calendar year of the reporting period or during either of the prior two calendar years is 100 or more . . . . 49 CFR 579.22. The aggregate number of buses includes those manufactured, sold, etc., by any parent corporation, any subsidiary or affiliate, and any subsidiary or affiliate of a parent corporation of such a person. Even if reporting of early warning information is not required under 579.22, the agency expects the relevant records to be retained for five years in accordance with the requirements of 49 CFR Part 576. Moreover, a manufacturer is required to furnish the agency with all notices, bulletins, and other communications, as specified in 579.5, regardless of whether early warning information reporting is required under 579.22.
I hope this information is helpful to you. Should you have further questions on this matter, please feel free to contact me or John Piazza on my staff at the address given above or at (202) 366-8852.
Sincerely,
O. Kevin Vincent
Chief Counsel
Ref: Parts 573 and 579
Dated: 7/19/12