Interpretation ID: nht73-3.14

DATE: 01/19/73

FROM: AUTHOR UNAVAILABLE; Lawrence R. Schneider; NHTSA

TO: Chrysler Corporation

TITLE: FMVSR INTERPRETATION

TEXT: By letter dated October 2, 1972, you were advised by Andrew Detrick, Director, Office of Defects Investigation, that the defect reports required by 49 CFR Part 573 are required to be filed with this agency when a safety related defect has been determined in a class of vehicles regardless of whether or not these vehicles were sold to the general public. In his letter, Mr. Detrick had directed his inquiry as to why no defect report had been filed with respect as to why no defect report had been filed with respect to certain 1973 model year Chrysler Corporation vehicles which appeared to have a safety problem in their hall joint assemblies. In your letter of response dated October 23, 1972, you advised that although Chrysler had undertaken to repair some 11,998 vehicles upon which the ball joint assembly in question had been installed through a notice to dealers dated August 17, 1972, the corporation had made a determination that no defect report was required to be filed under 49 CFR 573 because all of these vehicles were either in the hands of the manufacturer or the dealer and had not passed to the first purchaser. This is contrary to the position taken by this agency. Subsequently, on November 3, 1972, you advised us that some 2,960 vehicles had not been repaired an undetermined number of which had passed into the hands of purchasers. With respect to these 2,560 vehicles you filed an untimely defect report on November 3 and issued a notification to the purchasers. No defect report, however, has been received regarding the remainder of the vehicles in this class.

This is to advise you that we do not agree with your legal interpretation to the effect that defect reports are only required if the vehicles have passed into the hands of the purchasers. In our view, the reports are required to be furnished to this agency within five days of the determination of the existence of a safety related defect with respect

to all vehicles subject to the defect that have been delivered to the distributor or dealer in addition to those which have been sold to the general public. Accordingly, Chrysler Corporation has failed and refused to file a timely defect report for the remainder of the vehicles in the defined class. You are hereby directed to file such report within five days of receipt of this letter.

In addition to the foregoing, we have been advised informally by Mr. Kittle of your staff that in the future Chrysler Corporation will file timely defect reports irrespective of whether or not the vehicles have passed into the hands of the purchasers. Please advise us in writing within ten days of the date of receipt of this letter of whether or not Chrysler Corporation intends to comply with the defect reports regulation by filing timely defect reports with respect to all vehicles subject to a safety related defect that have been delivered to a distributor or dealer in addition to those which have been sold to the general public.

We have fully considered the legal arguments, contentions and facts presented in mitigation of any legal(Illegible Word) this agency might seek, including injunctive sanctions or civil penalties, for Chrysler's not having filed a timely defect report regarding those of the 11,998 vehicles in question which had been delivered to the distributor or dealer and have rejected Chrysler's position. Accordingly, before we accept any offer in compromise regarding the amount of civil penalties to be imposed for the violation or violations of the National Traffic and Motor Vehicle Safety Act of 1966, we will await your response regarding the matters hereinabove mentioned.