Interpretation ID: nht95-3.12

TYPE: INTERPRETATION-NHTSA

DATE: June 14, 1995

FROM: John Womack -- Acting Chief Counsel, NHTSA

TO: Dennis T. Snyder, Esquire

TITLE: NONE

ATTACHMT: ATTACHED TO 8/11/95 LETTER FROM DENNIS T. SNYDER TO DAVID COLEMAN (OCC 10926)

TEXT: Dear Mr. Snyder:

This is in response to your letter of May 11, 1995, asking whether a client of yours is a "final stage manufacturer" within the meaning of the National Traffic and Motor Vehicle Safety Act and implementing regulations on manufacturer identification and v ehicle certification found in 49 CFR Parts 566, 567, and 568. You have described this client as being engaged in the manufacture of completed heavy duty dump trucks, vans, and road tractors from used chassis-cabs.

The term "manufacturer" is defined in 49 U.S.C. @ 30102(a)(5) (formerly section 102(5) of the National Traffic and Motor Vehicle Safety Act) as "a person- (A) manufacturing or assembling motor vehicles or motor vehicle equipment . . . " (emphasis added). Based on your description of your client as being engaged in the assembly of completed motor vehicles, it would appear to meet this definition. Because the manufacturer identification requirements of 49 CFR Part 566 apply to "all manufacturers of moto r vehicles," as stated in section 566.3 of that Part, your client would be required to submit to the National Highway Traffic Safety Administration (NHTSA) the identifying information specified in 49 CFR 566.5.

The term "final stage manufacturer" is defined at 49 CFR 568.3 as "a person who performs such manufacturing operations on an incomplete vehicle that it becomes a completed vehicle." An "incomplete vehicle" is defined in that section as "an assemblage con sisting, at a minimum, of frame and chassis structure, power train, steering system, suspension system, and braking system . . . that requires further manufacturing operations . . . to become a completed vehicle." The term "completed vehicle" is in turn defined in section 568.3 as "a vehicle that requires no further manufacturing operations to perform its intended function . . ." Based on your description of your client as being engaged in the manufacture of completed heavy duty dump trucks, vans, and r oad tractors from chassis-cabs, it would qualify as a final stage manufacturer, as that term is defined in section 568.3.

Requirements for final stage manufacturers are specified at 49 CFR 568.6. This section provides that a final stage manufacturer shall complete each vehicle "in such a manner that it conforms to the [Federal motor vehicle safety] standards in effect on t he date of manufacture of the incomplete vehicle, the date of final completion, or a date between those two dates," and shall affix a label to the vehicle attesting to that conformance in accordance with 49 CFR 567.5, which specifies certification requir ements for vehicles manufactured in two or more stages. These certification requirements are in implementation of 49 U.S.C. @ 30115, which requires the manufacturer of a new motor vehicle to certify to the dealer or distributor at delivery that the vehi cle complies with applicable motor vehicle safety standards. NHTSA has long taken the position, however, that a vehicle is used if it is assembled by adding a new body to the chassis of a vehicle previously registered for use on the public roads. As a consequence, your client would not be required to certify the vehicles that it manufactures in this fashion.

Your client would nevertheless be subject to 49 U.S.C. @ 30122(b), which provides that "[a] manufacturer, distributor, dealer, or motor vehicle repair business may not knowingly make inoperative any part of a device or element of design installed on or i n a motor vehicle . . . in compliance with an applicable motor vehicle safety standard . . ." NHTSA has interpreted this provision as requiring any of the specified entities that remove an old body from a vehicle in order to install a new one to ensure t hat the newly completed vehicle meets the standards that the vehicle was originally required to meet. For example, a vehicle consisting of a body manufactured in 1995 mounted on a used 1989 chassis must meet all standards that applied to 1989 vehicles. Your client would be liable for any violation of this requirement on vehicles that it manufactures, regardless of whether it removed the body from the old vehicle itself, or directed another entity to do so.

Additionally, as a vehicle manufacturer, your client would be required under 49 U.S.C. @ 30118 to furnish owners with notification of, and a remedy for, any safety-related defect or any noncompliance with an applicable Federal motor vehicle safety standa rd that is found to exist in a vehicle that it assembles.

If you have any further questions regarding this matter, feel free to contact Coleman Sachs of my staff at the above address, or by telephone at (202) 366-5238.