[Federal Register Volume 60, Number 45 (Wednesday, March 8, 1995)]
[Notices]
[Pages 12820-12821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5690]



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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
[Docket No. 92-50; Notice 4]


Autokraft Ltd.; Grant of Application for Renewal of Temporary 
Exemption From Motor Vehicle Safety Standard No. 208

    Autokraft Limited of Weybridge, Surrey, England, applied for a 
renewal of NHTSA Exemption No. 92-6, exempting its AC MkIV until 
January 1, 1995, from compliance with paragraph S4.1.4 of Federal Motor 
Vehicle Safety Standard No. 208 Occupant Crash Protection. The basis of 
the application was that compliance would cause substantial economic 
hardship to a manufacturer that has tried to comply with the standard 
in good faith.
    Notice of receipt of the application was published on December 19, 
1994, and an opportunity afforded for comment (59 FR 65428).
    Autokraft was granted NHTSA Exemption No. 92-6 on December 21, 1992 
(57 FR 60563), and its exemption from S4.1.4 of Standard No. 208 was 
scheduled to expire on January 1, 1995. Because the application for 
renewal of the exemption was filed ``not later than 60 days before the 
termination date'' (in this instance, October 27, 1994), the 
termination date has been stayed until the Administrator has acted upon 
the application (49 CFR 555.8(e)).
    The applicant sought a further two-year exemption for its AC Mk IV 
passenger car, of which it has produced 15 in the year preceding the 
filing of its application. Although the company had projected sales of 
150 units in the United States in the years 1992-94, in fact, there 
were only seven sales. According to its application, Autokraft ``has 
continued the process of researching and developing the installation of 
a driver and passenger side airbag system'' but ``we have been unable 
to achieve the fitting of a suitable system mainly due to the chassis 
design being based upon a classic 1960's design and not easily 
adaptable to suit air bag installation.'' The delay is also due to 
``the project having insufficient funds generated by sales and 
available for completing the development.''
    Autokraft concluded that the adaptation of an existing automatic 
restraint system is the only viable alternative. Its continuation of 
compliance efforts has given it ``significant knowledge into the areas 
of vehicle modification, computer simulation, design rough road testing 
and low, medium and high speed crash testing.'' Complicating its 
efforts is the need to use a different engine and transmission after 
October 1, 1995, and the possible effect that this will have upon 
compliance. It estimated the cost to achieve conformance would be 
$550,000, achievable by spreading these costs during the exemption 
period. Autokraft reported losses totalling 3,308,243 Pounds Sterling 
(approximately $5,624,000 at a rate of $1.70/1) for the years 1992-93, 
and projected a further loss for 1994.
    The company argued that an exemption would be in the public 
interest and consistent with the objectives of motor vehicle safety 
because it meets all applicable EEC standards, and all U.S. Federal 
motor vehicle safety standards with the exception of the automatic 
restraint requirements of Standard No. 208 (its 3-point driver and 
passenger restraints meet the previous requirements). The production of 
the car makes available to [[Page 12821]] the public ``at a realistic 
price'' a replica of the original AC Cobra vehicle produced from the 
original AC Cobra tooling, manufactured during the 1960's predominantly 
for the American market. Autokraft is in the process of finalizing a 
U.S. distribution agreement and showed the car at the North American 
International Auto Show in Detroit in January 1995.
    The applicant believes that it will comply with Standard No. 208 
six months before January 1, 1997, when the 2-year extension of its 
exemption that it has requested would expire.
    No comments were received on the petition.
    Review of the application for renewal shows continued existence of 
the net loss position of the applicant upon which the agency first 
found that compliance would cause substantial economic hardship. The 
fact that only seven cars were sold in the United States under the 
previous two-year exemption demonstrates that the U.S. specification 
MkIV could not contribute to a significant offset of Autokraft's net 
losses. The examples on display at the Detroit Show were reported to 
have a suggested price of $95,000 each, making it unlikely that the 
applicant will increase its sales by a significant number of vehicles, 
even if it can enter a U.S. distribution agreement. The car, an open 2-
seater, is of limited utility. NHTSA notes that the company's efforts 
to comply have been made more difficult by the vehicle's 1960's 
configuration, but that the company believes that it will be in a 
position to manufacture a fully-conforming vehicle by July 1996, thus 
it has not requested the maximum exemption of 3 years to which it would 
be entitled under the hardship provisions. NHTSA also recognizes that 
the MkIV is certified as meeting all applicable Federal motor vehicle 
safety standards except for S4.1.4 of Standard No. 208, and that each 
of its passenger positions is equipped with a three-point restraint 
system of a type that previously was sufficient to meet Standard No. 
208's requirements for passenger cars. It is in the public interest 
that a variety of motor vehicles continue to be provided. Sales, even 
though small in number, will make a positive contribution to the 
economy through the employment afforded through the distribution, 
sales, and repair channels.
    In consideration of the foregoing, it is hereby found that 
compliance with Standard No. 208 would cause substantial economic 
hardship to a manufacturer that tried to comply with the standard in 
good faith. It is hereby further found that an exemption is consistent 
with the public interest and 49 U.S.C. Chapter 301--Motor Vehicle 
Safety. Accordingly, NHTSA Temporary Exemption No. 92-6 from paragraph 
S4.1.4. of 49 CFR 571.208 Motor Vehicle Safety Standard No. 208 
Occupant Crash Protection is extended to January 1, 1997.

    Authority: 49 U.S.C. 30113; delegation of authority at 49 CFR 
1.50.

    Issued on: March 2, 1995.
Ricardo Martinez,
Administrator.
[FR Doc. 95-5690 Filed 3-7-95; 8:45 am]
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