Interpretation ID: MIClet.2.wpd

Kathy R. Van Kleeck
Vice President, Government Relations
Motorcycle Industry Council
1235 Jefferson Davis Highway, Suite 600
Arlington, VA 22202-3261

Dear Ms. Van Kleeck:

This responds to your letter concerning the receipt by some of your off-road vehicle manufacturer members of notices from the Society of Automotive Engineers (SAE), issued at the request of the National Highway Traffic Safety Administration (NHTSA), rescinding erroneously issued World Manufacturer Identifiers (WMIs). You requested continued availability of WMIs for your members. You stated that they face serious dilemmas from the withdrawal of WMIs, since many States impose reporting requirements on off-road vehicle manufacturers, including ones for vehicle identification numbers (VINs) that comply with NHTSAs regulations. You also stated that newly issued EPA exhaust emissions regulations for recreational vehicles call for motorcycles and ATVs to be marked with a unique identification number, and that members with WMIs would like to use them for this purpose.

Subsequently, you and other Motorcycle Industry Council (MIC) staff and members met with NHTSA officials on March 13, 2003 to discuss this issue in further detail. Our response is set forth below.

As you are aware, NHTSA regulates "motor vehicles." That term is defined by statute as "a vehicle driven or drawn by mechanical power and manufactured primarily for use on public streets, roads, and highways, but does not include a vehicle operated only on a rail line." 49 U.S.C. 30102(a)(6). NHTSA does not regulate vehicles manufactured primarily for off-road use (e.g., ATVs, snowmobiles, dirt bikes). Instead, the Consumer Products Safety Commission (CPSC) has jurisdiction over the safety of such vehicles.

Our regulation governing VIN requirements, 49 CFR Part 565, is limited in applicability to motor vehicles. The regulation defines the term "VIN" as "a series of Arabic numbers and Roman letters that is assigned to a motor vehicle for identification purposes." 49 CFR 565.3(o) (emphasis added).

In implementing Part 565, NHTSA contracts with the SAE to generate and assign WMIs, that are required under the VIN regulation, to motor vehicle manufacturers. The SAE is the designated U.S. organization representing the International Standards Organization (ISO) for vehicle-related identification matters.

Approximately six months ago, NHTSAs Office of Vehicle Safety Compliance (OVSC) discovered that the SAE had been issuing WMIs to companies that were not manufacturers of motor vehicles but instead manufacturers of off-road vehicles or motor vehicle equipment, such as motorcycle frames, etc. Because these manufacturers are not motor vehicle manufacturers, they were not eligible to be issued Part 565 WMIs.

This has created a number of problems. Under the existing, ISO-compatible system, there is only a finite and rapidly diminishing number of WMIs available for assignment to motor vehicle manufacturers producing 500 or more vehicles per year. Our current count shows only 604 WMIs available for assignment, and these could be exhausted within the next several years, if current trends continue.

We have also discovered errors in agency data, in which information about off-road vehicles has become improperly comingled with information about motor vehicles. Inclusion of off-road data in on-road statistics could distort the relative importance of vehicle safety problems. Correction of such errors consumes staff time and limited agency resources.

In light of the above, OVSC directed SAE to cease issuing new WMIs to off-road vehicle manufacturers and to begin to rescind the WMIs erroneously issued to off-road vehicle manufacturers and off-road vehicle equipment manufacturers, as those errors were discovered. OVSC took this action to assure the proper functioning of the VIN system for its intended purpose.

After reviewing your letter and meeting with you, we appreciate the situation that off-road vehicle manufacturers face in complying with State requirements We also recognize that the concept of unique vehicle identification numbers is one that crosses State lines and also has international implications. We are aware of several State law provisions which require reporting of a "vehicle identification number" for off-road vehicles. Moreover, we understand from you that while State regulations generally do not reference Part 565, some States are insisting on VINs that comply with that regulation, and in some cases, manufacturers who do not have such VINs have been fined.

While we wish to be cooperative in helping to resolve this problem, NHTSA is not in a position to regulate or coordinate WMIs and VINs for off-road vehicles, since these vehicles are outside our jurisdiction. Your primary concern appears to be with State laws, and we encourage you to work with State officials. We also suggest that you consult with EPA, given your concerns about the newly-issued exhaust emissions regulations. We note that, as we discussed in our meeting, SAE may be able to provide assistance in developing an ISO-compatible system for the generation and assignment of alternate WMIs to off-road vehicle manufacturers. (A package of materials related to ISO standards in this area is enclosed.) Obviously, any system for developing WMIs and VINs for off-road vehicles should be designed so that it does not cause confusion with Part 565 WMIs and VINs.

To provide time for MIC to resolve these issues, we will instruct the SAE to stay the rescission of WMIs previously issued to off-road vehicle manufacturers until January 1, 2005. This should provide sufficient time for the off-road manufacturer community to coordinate with appropriate State officials, and, as necessary, develop a new system for WMIs issued to off-road vehicle manufacturers. However, we will also instruct SAE not to issue any new Part 565 WMIs to off-road vehicle manufacturers, so as to not exacerbate the existing problem.

We are sending a copy of this letter to the American Association of Motor Vehicle Administrators to alert it to this issue. We are also sending copies to the California Air Resources Board (CARB), CPSC, and EPA.

I hope that this information is helpful. If you have any questions, please feel free to contact Eric Stas of my staff at this address or by telephone at (202) 366-2992.

Sincerely,

Jacqueline Glassman
Chief Counsel

Enclosure
ref:565
d.5/21/03