Motor Vehicle Theft Prevention; Procedures for Selecting Lines Subject to Theft Prevention Standard |
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Topics: National Highway Traffic Safety Administration
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Christopher A. Hart
Federal Register
April 26, 1994
[Federal Register: April 26, 1994]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Part 542
[Docket No. 93--53; Notice 2]
RIN 2127-AE67
Motor Vehicle Theft Prevention; Procedures for Selecting Lines
Subject to Theft Prevention Standard
AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.
ACTION: Final rule.
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SUMMARY: This final rule amends the procedures for the selection of new
passenger motor vehicle lines that are likely to be high theft lines.
For all Model Year (MY) 1997 and later vehicles, manufacturers must, 15
months in advance of the model year of introduction, inform NHTSA about
new motor vehicle lines that the manufacturers plan to introduce for
sale. Manufacturers must include an analysis whether the new line is
likely to be a high or low theft line. The effect of this final rule is
to make the procedures consistent with statutory requirements.
DATES: Effective date: This final rule is effective May 26, 1994.
Petitions for Reconsideration: Petitions for reconsideration of
this final rule must be received by NHTSA no later than May 26, 1994.
ADDRESSES: Petitions for reconsideration of this final rule should
refer to the docket number and notice number cited in the heading of
this notice and be submitted to: Administrator, National Highway
Traffic Safety Administration, 400 Seventh Street, S.W., Washington, DC
20590.
FOR FURTHER INFORMATION CONTACT: Ms. Barbara A. Gray, Office of Market
Incentives, NHTSA, 400 Seventh Street SW., Washington, DC 20590. Ms.
Gray's telephone number is (202) 366-1740.
SUPPLEMENTARY INFORMATION:
Motor Vehicle Theft Law Enforcement Act of 1984
The Motor Vehicle Theft Law Enforcement Act of 1984 (Pub. L. 98-
547) (Theft Act), added title VI to the Motor Vehicle Information and
Cost Savings Act (Cost Savings Act). Pursuant to title VI, NHTSA
promulgated 49 CFR part 541, titled ``Federal Motor Vehicle Theft
Prevention Standard.'' Part 541 establishes performance requirements
for inscribing or affixing identification numbers onto certain major
original equipment and replacement parts of high theft lines of
passenger motor vehicles.
Section 603(a)(2) of title VI states that the specific lines, and
the major parts of the vehicles within such lines, that are to be
subject to the theft prevention standard may be selected by agreement
between a manufacturer and the agency. If the agency and manufacturer
disagree as to the selection, the selection is made by the agency,
after providing notice to the manufacturer and an opportunity for
written comment.
Section 603(c) states that NHTSA ``shall, by rule, require each
manufacturer to provide information necessary to select pursuant to
subsection (a)(2) the high theft lines and major parts to be subject to
the standard.'' (Emphasis added.) However, as promulgated on August 28,
1985 (50 FR 34831), the agency's regulations regarding the selection of
high theft lines did not require the submission of such information.
Those regulations, which are contained in part 542, simply set forth
the procedures to be followed by those manufacturers which voluntarily
choose to provide the information and to participate in the selection
process.
Since the establishment of part 542, some manufacturers have not
consistently notified the agency about the introduction of new lines
within the specified time frame of 18 to 24 months before introduction
of each new line. On occasion, delayed notification by manufacturers
has prevented the agency from making its preliminary determination
sufficiently in advance of the introduction of such lines to permit
application of the theft prevention standard to those lines during
their introductory model year. To be subject to the standard in its
introductory year, a line must be finally selected as high theft not
less than 6 months before the beginning of that model year.
In some instances, the agency has had to act on its own initiative
by anticipating the introduction of new lines and making high theft/low
theft determinations because the manufacturers did not notify the
agency within the specified period of 18 to 24 months before the
introduction of their new lines. In making these determinations, the
agency has relied on reports in the trade press about planned
introductions of new lines. Notwithstanding the absence of notification
from the manufacturers, the manufacturers objected to this practice,
viewing such agency initiative as an attempt to second guess them about
the timing of the introduction of new model lines, or to reduce their
opportunity to provide input regarding the determination.
Notice of Proposed Rulemaking
On July 21, 1993, NHTSA published in the Federal Register a notice
of proposed rulemaking to amend part 542 (See 58 FR 38999). In order to
solve the problem of manufacturers' late notification of the agency
about new lines, the agency proposed to implement section 603(c) of the
Cost Savings Act. Under the proposal, each manufacturer would be
required to provide, for each of its newly planned lines, its
determination whether the line was likely high or low theft, and
include a discussion of how it applied the criteria set forth in
appendix C of part 541, in arriving at its determination. The appendix
C criteria are: Price; vehicle image; lines competitive with the new
line; line(s) the new line is intended to replace; presence of any
antitheft devices; preliminary theft data for the line, if available.
The agency also proposed that a manufacturer be required to submit such
information not less than 18 months before introduction of the planned
line.
In the NPRM, NHTSA stated it believed that requiring manufacturers
to submit the necessary information would provide the agency with more
timely submissions of accurate and up-to-date data to evaluate. This
would enable the agency to select more effectively and efficiently (by
agreement with the manufacturer, if possible) those new lines likely to
have a high theft rate. Also, since the information would be provided
timely and directly to the agency by the manufacturer, the agency
presumably would no longer need to rely upon the trade press accounts.
In order to provide manufacturers with lead time to comply with the
new mandatory procedures, the agency proposed to continue to permit
voluntary submission of information for lines that are introduced
before model year 1997, and require compliance with the mandatory
procedures for those lines introduced in model year 1997 and subsequent
model years. The agency made similar proposals regarding the voluntary
and mandatory submission of information with respect to low theft new
lines with a majority of major parts interchangeable with those of a
high theft line.
NHTSA also proposed to remove outdated procedures from part 542.
The procedures were applicable to lines introduced before April 24,
1986, the effective date of the theft prevention standard.
Finally, in the NPRM, NHTSA noted that because of passage of the
``Anti Car Theft Act of 1992'' (ACTA), changes must be made in NHTSA's
and manufacturers' evaluation procedures for low theft lines with major
parts interchangeable with major parts of a high theft line. ACTA's
passage redefined ``passenger motor vehicle,'' for title VI purposes,
to include ``any multipurpose passenger vehicle and light-duty truck
that is rated at 6,000 pounds gross vehicle weight or less.'' (See
section 601(1) of title VI.) ACTA's passage did not necessitate changes
to part 542's regulatory text.
Public Comments and NHTSA Response
In response to the NPRM, NHTSA received comments from four parties:
The Chrysler Corporation (Chrysler); the Ford Motor Company (Ford); the
National Truck Equipment Association (NTEA) and Volkswagen of America,
Inc. (VW).
In its comments, Ford concurred with NHTSA's proposal to require
manufacturers to provide NHTSA with information and supporting analysis
on new vehicle lines, beginning with Model Year 1997. Ford stated that
it understood the NPRM as indicating that NHTSA is interested only in
manufacturers' analyses of new vehicle lines likely to be high theft
lines. Based on its understanding, Ford suggested that there was a need
to make several minor changes to the regulatory text to make it clear
that NHTSA is interested in analyses of new lines likely to be low
theft, as well as those lines likely to be high theft.
NHTSA believes that the proposal was clear regarding the obligation
for a manufacturer to conduct evaluations of each new line using the
criteria in appendix C of part 541. Under the proposal, each
manufacturer would have been required ``to evaluate each new line and
to conclude whether the new line is likely to have a theft rate
exceeding the median theft rate.'' In other words, for each line, the
manufacturer would have had to indicate whether its evaluation led it
to conclude that (a) it is likely to have such a rate or (b) it is not
likely to have such a rate. That this was the intended reading of the
proposed regulatory text was made abundantly clear in the summary
section of the NPRM preamble. There, the agency stated that
manufacturers would be required to ``provide an analysis whether the
new line is likely to be a high or low theft line.''
Nevertheless, NHTSA has no objection to making the changes
suggested by Ford. Section 542.1(c), Procedures for newly introduced
vehicle lines, now explicitly states that the manufacturers are to
follow the procedures in evaluating whether a new line is likely to
have a theft rate above or below the median theft rate.
Chrysler and VW recommended that the deadline for manufacturers
notifying NHTSA of new lines be 12 months before the introduction of
the line, instead of 18 months before the introduction, as proposed in
the NPRM. Both Chrysler and VW stated that, since the American
automobile market is very competitive, manufacturers may decide to
introduce new lines with less than 18 months' lead time. They argued
that being allowed to inform NHTSA of new car lines 12 months in
advance would provide more flexibility to the manufacturers. VW further
stated that if NHTSA amended part 542, and issued its preliminary
determinations of high or low theft sooner than the 90 days presently
provided in part 542, manufacturers could file new vehicle line
information with NHTSA as late as 10 months in advance of introduction
of the line.
Both the VW and Chrysler objections to the 18 month advance notice
requirement are apparently based on the possibility that each may wish
to introduce a new line in the U.S. with less than 18 months' notice.
In the 8 years since part 542 took effect, NHTSA has been notified of a
new line less than 18 months before the introduction model year in only
a few instances. No manufacturers, besides VW and Chrysler, objected to
the 18 month lead time requirement.
NHTSA has carefully considered Chrysler and Volkswagen's comments,
and calculated the latest date on which it can accept new line
information. For reasons explained below, NHTSA needs to issue final
determinations of high or low theft, at least six months in advance of
the manufacturer's model year. NHTSA has decided that it can accept new
line information as late as 15 months before the beginning of the
manufacturer's model year, and still issue final determinations six
months before the beginning of the model year. Thus, beginning with
model year 1997 vehicles, manufacturers are required to notify NHTSA of
new lines 15 months before the new line is introduced. NHTSA has not
shortened part 542's timeframe for NHTSA's preliminary and final
determinations since that is beyond the scope of notice of the NPRM.
NHTSA needs to issue determinations six months in advance of the
model year because under section 603(a)(3) of the Theft Act, NHTSA
must, to the maximum extent practicable, assure that likely high theft
lines are selected at least 6 months before the first applicable model
year, to notify manufacturers that they must mark the major parts of
the line. More importantly, if NHTSA issues a final high theft
determination less than six months before an upcoming model year, NHTSA
cannot require the manufacturer to mark the parts of the high theft
line during that model year. Instead, it cannot mandate parts marking
until the following model year. Requiring manufacturers to submit
information 15 months (instead of 12 months) before the model year
would lessen the likelihood of NHTSA's missing the 6 month deadline to
notify manufacturers, before the first applicable model year, of the
high theft status of a new line.
NHTSA does not believe requiring manufacturers to submit
information 15 months in advance of the model year would pose a
hardship. NHTSA does not believe that any of the information to be
reported (specified at appendix C of part 541) is detailed or complex.
The appendix C criteria are: Price; vehicle image; lines competitive
with the new line; line(s) the new line is intended to replace;
presence of any antitheft devices; and any preliminary theft data for
the line. NHTSA believes that a manufacturer planning a new line for
sale in the U.S. knows, 15 months before the model year of
introduction, fundamental information about the new line, including
that specified in appendix C, and would have no difficulty in reporting
it.
NHTSA believes further that even if, on some occasion, a
manufacturer does not make a formal decision to introduce a new line
until some time after 15 months in advance of the model year of
introduction, the manufacturer must be very actively entertaining, at
the 15 month point, the possibility of making such a decision in the
next several months. The commercial and regulatory logistics involved
in introducing a new line to the U.S. market are complex. The very
complexity of this process necessitates that, by 15 months in advance
of the model year of introduction, the manufacturers have a good idea
whether they will introduce a new line into the United States.
If, 15 months before the introduction of a new line, a manufacturer
is still undecided whether to introduce the line, it could nevertheless
comply with part 542 by sending a letter to NHTSA stating that it may
introduce a new line and providing the information specified in
appendix C of part 542. To avoid the possibility of a disclosure of its
potential plans, the manufacturer may request confidential treatment
for the letter. NHTSA has determined that future specific model plans
would presumptively be likely to result in substantial competitive harm
if disclosed to the public, before the date on which the specific model
is first offered for sale. (See 49 CFR part 512, appendix B.) If
confidential treatment has been granted, and the manufacturer decides
not to introduce the line, NHTSA will not disclose the contents of the
letter.
Finally, NHTSA decided to set the deadline for submission of
information about new lines at the 15 month point instead of at the 12
month point because 15 months is necessary not only to allow NHTSA time
to issue a final determination, but also to allow manufacturers enough
time to submit timely petitions for exemption from marking the parts of
a new line. Section 605(b) of the Theft Act specifies that petitions
for exemption must be filed ``not later than 8 months before the
commencement of production for the first model year covered by the
petition.''
The National Truck Equipment Association (NTEA) expressed concern
that NHTSA may consider some of its members (which are primarily small
final stage manufacturers of incomplete vehicles, or alterers of
vehicles) to be ``manufacturers'' for part 542 purposes, and thus
subject to the reporting requirements. These final stage manufacturers
and alterers appear to work on individual vehicles, adapting each
vehicle for a special purpose or to otherwise include features that
make each vehicle unique to the customer's needs. NTEA noted, however,
that because ACTA's definition of light-duty trucks and multipurpose
passenger vehicles is limited to vehicles weighing 6,000 pounds gross
vehicle weight rating or less, NTEA expects ``very few vehicles''
completed or altered by its members to be subject to part 542.
For the following reasons, NHTSA does not believe that final stage
manufacturers or alterers, are ``manufacturers'' for part 542 purposes.
Part 542 applies to a manufacturer that groups motor vehicle models of
the same make together and assigns names to the groups, i.e., lines, or
introduces new motor vehicle lines into commerce. Neither final stage
manufacturers nor alterers do these things.
The grouping of motor vehicle models of the same make together and
assigning names to the groups, i.e., lines, is done at an earlier stage
of manufacture in the case of both incomplete motor vehicles that are
completed by final stage manufacturers and of completed vehicles that
are modified by alterers. These circumstances are reflected in the
agency's requirements concerning vehicle identification numbers. A
vehicle identification number (VIN) is a seventeen character series of
arabic numbers and roman letters which is assigned to a motor vehicle
for identification purposes. Manufacturers must comply with Standard
No. 115; Vehicle identification number-basic requirements. S4.1 of
Standard No. 115 states:
Each vehicle manufactured in one stage shall have a VIN that is
assigned by the manufacturer. Each vehicle manufactured in more than
one stage shall have a VIN assigned by the incomplete vehicle
manufacturer. Vehicle alterers * * * shall utilize the VIN assigned
by the original manufacturer of the vehicle.
49 CFR part 565 Vehicle identification number-content requirements,
specifies the format and content for VINs. Among other VIN attributes,
the first three characters uniquely identify the manufacturer, make and
type of motor vehicle. (See Sec. 565.4(a)) Included as VIN attributes
for passenger cars, multipurpose passenger vehicles, trucks, and
incomplete vehicles, are the line and series of the vehicle. (See
Sec. 565.4(b), and table I) A manufacturer must, when it assigns a VIN
to a motor vehicle, determine the model or ``line,'' and series of the
vehicle. For these reasons, when it creates a VIN, a manufacturer is in
effect, determining the ``line'' of vehicles that it introduces into
commerce.
The manufacturing functions of the NTEA members are performed after
the VINs are assigned. As noted above, they either do final stage
manufacturing of incomplete vehicles or alter completed vehicles.
Standard No. 115 prohibits final stage manufacturers or alterers from
making changes to the original VIN assigned to the vehicle. The final
stage manufacturers or alterers cannot change any VIN attribute,
including the VIN attribute that describes the ``line'' of the vehicle.
Since the final stage manufacturers or alterers, in effect, cannot
assign the ``name'' to a ``group'' of vehicles, i.e., the ``line'', the
final stage manufacturers or alterers are not ``manufacturers'' for
purposes of part 542.
Finally, since there were no objections to NHTSA's proposal to
remove outdated references to vehicle lines introduced before April 24,
1986, the final rule adopts those amendments.
Regulatory Impacts
A. Costs and Other Impacts
This notice was not reviewed under Executive Order 12866
(Regulatory Planning and Review). NHTSA has analyzed the impact of this
rulemaking action and determined that it is not ``significant'' within
the meaning of the Department of Transportation's regulatory policies
and procedures. The agency estimates this final rule will impose
minimal reporting costs on manufacturers of passenger motor vehicles.
The agency estimates that the average annual cost per manufacturer per
year to report on new vehicle lines is $2,000. The agency estimates
that the cost to all affected manufacturers totals $56,000 per year.
The Supplementary Information section of this notice discussed the
``Anti Car Theft Act of 1992's'' redefinition of ``passenger motor
vehicle'' to include ``any multipurpose passenger vehicle and light-
duty truck that is rated at 6,000 pounds gross vehicle weight or
less.'' Thus, manufacturers may now have to follow part 542 procedures
for certain multipurpose passenger vehicles and light-duty trucks. The
burden on these manufacturers will be minimal because relatively few
new lines of light-duty trucks and multipurpose passenger vehicles are
introduced in any year.
The additional burden on manufacturers with respect to passenger
cars as a result of reporting becoming mandatory will also be minimal.
Most manufacturers are already providing new car line information on a
voluntary basis.
For these reasons, NHTSA believes that the additional costs will be
so minimal as not to warrant preparation of a full regulatory
evaluation. Since there will be so little additional reporting cost,
NHTSA does not believe that this rule will affect the impacts described
in the regulatory evaluation (pursuant to E.O. 12291 and the DOT's
regulatory policies) prepared for the proposal published May 10, 1985
(See 50 FR 19728, at 19741) setting forth the substantive requirements
of part 541. Interested persons may wish to examine that regulatory
evaluation. Copies of that evaluation have been placed in Docket No.
T84-01; Notice 4, and may be obtained by writing to: National Highway
Traffic Safety Administration, Docket Section, Room 5109, 400 Seventh
Street SW., Washington, DC 20590.
B. Small Business Impacts
The agency has also considered the effects of this rulemaking
action under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). I
certify that this final rule will not have a significant economic
impact on a substantial number of small entities. The rationale for
this certification is that, as noted above, the reporting costs will be
minimal. Further, almost none of the manufacturers of passenger motor
vehicles that will be subject to this rule is considered to be a small
business, a small non-profit organization, or a small governmental
entity as defined by the SBA.
C. Environmental Impacts
In accordance with the National Environmental Policy Act of 1969,
the agency has considered the environmental impacts of this rule and
determined that, the final rule will not have a significant impact on
the quality of the human environment.
D. Paperwork Reduction Act
The procedures in this rule for manufacturers to submit new vehicle
line information to NHTSA are considered to be information collection
requirements, as that term is defined by the Office of Management and
Budget (OMB) in 5 CFR part 1320. The information collection
requirements for part 542 have been submitted to and approved by the
OMB pursuant to the requirements of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.) This collection of information has been assigned
OMB Control No. 2127-0539 (``Procedures for selecting lines to be
covered by the theft prevention standard'') and has been approved for
use through August 31, 1995.
E. Federalism
This action has been analyzed in accordance with the principles and
criteria contained in Executive Order 12612, and it has been determined
that the rule does not have sufficient federalism implications to
warrant the preparation of a Federalism assessment.
F. Civil Justice Reform
This final rule does not have any retroactive effect, and it does
not preempt any State law. Section 613 of the Motor Vehicle Information
and Cost Savings Act (15 U.S.C. 2020), provides that judicial review of
this rule may be obtained pursuant to section 504 of the Cost Savings
Act, (15 U.S.C. 2004). The Cost Savings Act does not require submission
of a petition for reconsideration or other administrative proceedings
before parties may file suit in court.
List of Subjects in 49 CFR Part 542
Administrative practice and procedure, National Highway Traffic
Safety Administration, reporting requirements.
In consideration of the foregoing, 49 CFR part 542 is revised to
read as follows:
PART 542--PROCEDURES FOR SELECTING LINES TO BE COVERED BY THE THEFT
PREVENTION STANDARD
Sec.
542.1 Procedures for selecting new lines that are likely to have
high or low theft rates.
542.2 Procedures for selecting low theft new lines with a majority
of major parts interchangeable with those of a high theft line.
Authority: 15 U.S.C. 2021, 2022, and 2023; delegation of
authority at 49 CFR 1.50.
Sec. 542.1 Procedures for selecting new lines that are likely to have
high or low theft rates.
(a) Scope. This section sets forth the procedures for motor vehicle
manufacturers and NHTSA to follow in the determination of whether any
new vehicle line is likely to have a theft rate above or below the
median theft rate.
(b) Application. These procedures apply to each manufacturer that
plans to introduce a new line into commerce in the United States on or
after April 24, 1986, and to each of those new lines.
(c) Procedures. (1)(i) For each new line introduced before the 1997
model year, each manufacturer uses the criteria in appendix C of part
541 of this chapter to evaluate each new line and to conclude whether
the new line is likely to have a theft rate above or below the median
theft rate established for calendar years 1990 and 1991.
(ii) For each new line to be introduced for the 1997 or subsequent
model years, each manufacturer shall use the criteria in appendix C of
part 541 of this chapter to evaluate each new line and to conclude
whether the new line is likely to have a theft rate above or below the
median theft rate.
(2)(i) For each new line to be introduced before the 1997 model
year, the manufacturer submits its evaluations and conclusions made
under paragraph (c)(1)(i) of this section, together with the underlying
factual information, to NHTSA not less than 18 months before the date
of introduction. The manufacturer may request a meeting with the agency
to further explain the bases for its evaluations and conclusions.
(ii) For each new line to be introduced for the 1997 or subsequent
model years, the manufacturer shall submit its evaluations and
conclusions made under paragraph (c)(1)(ii) of this section, together
with the underlying factual information, to NHTSA not less than 15
months before the date of introduction. The manufacturer may request a
meeting with the agency during this period to further explain the bases
for its evaluations and conclusions.
(3) Within 90 days after its receipt of the manufacturer's
submission under paragraph (c)(2) of this section, the agency
independently evaluates the new line using the criteria in appendix C
of part 541 of this chapter and, on a preliminary basis, determines
whether the new line should or should not be subject to Sec. 541.2 of
this chapter. NHTSA informs the manufacturer by letter of the agency's
evaluations and determinations, together with the factual information
considered by the agency in making them.
(4) The manufacturer may request the agency to reconsider any of
its preliminary determinations made under paragraph (c)(3) of this
section. The manufacturer shall submit its request to the agency within
30 days of its receipt of the letter under paragraph (c)(3) of this
section. The request shall include the facts and arguments underlying
the manufacturer's objections to the agency's preliminary
determinations. During this 30-day period, the manufacturer may also
request a meeting with the agency to discuss those objections.
(5) Each of the agency's preliminary determinations under paragraph
(c)(3) of this section shall become final 45 days after the agency
sends the letter specified in paragraph (c)(3) of this section unless a
request for reconsideration has been received in accordance with
paragraph (c)(4) of this section. If such a request has been received,
the agency makes its final determinations within 60 days of its receipt
of the request. NHTSA informs the manufacturer by letter of those
determinations and its response to the request for reconsideration.
Sec. 542.2 Procedures for selecting low theft new lines with a
majority of major parts interchangeable with those of a high theft
line.
(a) Scope. This section sets forth the procedures for motor vehicle
manufacturers and NHTSA to follow in the determination of whether any
new lines that will be likely to have a low theft rate have major parts
interchangeable with a majority of the covered major parts of a line
having or likely to have a high theft rate.
(b) Application. These procedures apply to:
(1) Each manufacturer that produces--
(i) At least one passenger motor vehicle line that has been or will
be introduced into commerce in the United States and that has been
listed in appendix A of part 541 of this chapter or that has been
identified by the manufacturer or preliminarily or finally determined
by NHTSA to be a high-theft line under Sec. 542.1, and
(ii) At least one passenger motor vehicle line that will be
introduced into commerce in the United States on or after April 24,
1986 and that the manufacturer identifies as likely to have a theft
rate below the median theft rate; and
(2) Each of those likely submedian theft rate lines.
(c) Procedures. (1)(i) For each new line that is to be introduced
before the 1997 model year and that a manufacturer identifies under
appendix C of part 541 of this chapter as likely to have a theft rate
below the median rate, the manufacturer identifies how many and which
of the major parts of that line will be interchangeable with the
covered major parts of any other of its lines that has been listed in
appendix A of part 541 of this chapter or identified by the
manufacturer or preliminarily or finally determined by the agency to be
a high theft line under Sec. 542.1.
(ii) For each new line that is to be introduced in the 1997 or
subsequent model years and that a manufacturer identifies under
appendix C of part 541 of this chapter as likely to have a theft rate
below the median rate, the manufacturer shall identify how many and
which of the major parts of that line will be interchangeable with the
covered major parts of any other of its lines that has been listed in
appendix A of part 541 of this chapter or identified by the
manufacturer or preliminarily or finally determined by the agency to be
a high-theft line under Sec. 542.1.
(2)(i) If the manufacturer concludes that a new line that is to be
introduced before the 1997 model year has a likely submedian theft rate
and will have major parts that are interchangeable with a majority of
the covered major parts of a high theft line, the manufacturer
determines whether all the vehicles of those lines with likely
submedian theft rates and interchangeable parts will account for more
than 90 percent of the total annual production of all of the
manufacturer's lines with those interchangeable parts.
(ii) If the manufacturer concludes that a new line that is to be
introduced for the 1997 or subsequent model years has a likely
submedian theft rate and will have major parts that are interchangeable
with a majority of the covered major parts of a high theft line, the
manufacturer shall determine whether all the vehicles of those lines
with likely submedian theft rates and interchangeable parts will
account for more than 90 percent of the total annual production of all
of the manufacturer's lines with those interchangeable parts.
(3)(i) For new lines to be introduced before the 1997 model year,
the manufacturer submits its evaluations and identifications made under
paragraphs (c)(1)(i) and (2)(i) of this section, together with the
underlying factual information, to NHTSA not less than 18 months before
the date of introduction. During this period, the manufacturer may
request a meeting with the agency to further explain the bases for its
evaluations and conclusions.
(ii) For new lines to be introduced for the 1997 and subsequent
model years, the manufacturer shall submit its evaluations and
conclusions made under paragraphs (c)(1)(ii) and (2)(ii) of this
section, together with the underlying factual information, to NHTSA not
less than 15 months before the date of introduction. During this
period, the manufacturer may request a meeting with the agency to
further explain the bases for its evaluations and conclusions.
(4) Within 90 days after its receipt of the manufacturer's
submission under paragraph (c)(3) of this section, the agency considers
that submission, if any, and independently makes, on a preliminary
basis, the determinations of those lines with likely submedian theft
rates which should or should not be subject to Sec. 541.5 of this
chapter. NHTSA informs the manufacturer by letter of the agency's
preliminary determinations, together with the factual information
considered by the agency in making them.
(5) The manufacturer may request the agency to reconsider any of
its preliminary determinations made under paragraph (c)(4) of this
section. The manufacturer must submit its request to the agency within
30 days of its receipt of the letter under paragraph (c)(4) of this
section informing it of the agency's evaluations and preliminary
determinations. The request must include the facts and arguments
underlying the manufacturer's objections to the agency's preliminary
determinations. During this 30-day period, the manufacturer may also
request a meeting with the agency to discuss those objections.
(6) Each of the agency's preliminary determinations made under
paragraph (c)(4) of this section becomes final 45 days after the agency
sends the letter specified in that paragraph unless a request for
reconsideration has been received in accordance with paragraph (c)(5)
of this section. If such a request has been received, the agency makes
its final determinations within 60 days of its receipt of the request.
NHTSA informs the manufacturer by letter of those determinations and
its response to the request for reconsideration.
Issued on: April 21, 1994.
Christopher A. Hart,
Deputy Administrator.
[FR Doc. 94-10040 Filed 4-25-94; 8:45 am]
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