[Federal Register Volume 62, Number 72 (Tuesday, April 15, 1997)]
[Notices]
[Pages 18385-18386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9698]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration
[Docket No. 96-099; Notice 2]


Denial of Petition for Import Eligibility Decision

    This notice sets forth the reasons for the denial of a petition 
submitted to the National Highway Traffic Safety Administration (NHTSA) 
under 49 U.S.C. 30141(a)(1)(A). The petition, which was submitted by 
LPC of New York, Inc. of Ronkonkoma, New York (``LPC''), a registered 
importer of motor vehicles, requested NHTSA to decide that 1995-1996 
GMC and Chevrolet Suburban multipurpose passenger vehicles (MPVs) that 
were not originally manufactured to comply with all applicable Federal 
motor vehicle safety standards are eligible for importation into the 
United States. In the petition, LPC contended that these vehicle are 
eligible for importation on the basis that (1) they are substantially 
similar to vehicles that were originally manufactured for sale in the 
United States and that were certified by their manufacturer as 
complying with the safety standards (the U.S.-certified version of 
1995-1996 GMC and Chevrolet Suburbans), and (2) they are capable of 
being readily altered to conform to the standards.
    NHTSA published a notice in the Federal Register on September 25, 
1996 (61 FR 50371) that contained a thorough description of the 
petition, and solicited public comments upon it. One comment was 
received in response to the notice, from the North American Operations 
Division of General Motors Corporation (``GM''), the corporate parent 
of GM de Mexico, the manufacturer of the subject vehicles. In this 
comment, GM contended that non-U.S. certified 1995-1996 GMC and 
Chevrolet Suburban MPVs should not be eligible for importation because 
they may not be substantially similar to vehicles that were originally 
manufactured and certified for sale in the United States. Moreover, GM 
noted that extensive certification testing has not been conducted to 
determine whether these vehicles are capable of being readily altered 
to conform to the standards. GM stated that during the 1995 and 1996 
model years, GM de Mexico produced only Chevrolet Suburbans for sale 
and use in that country, and that the company did not market any GMC 
Suburbans in Mexico. GM observed that these vehicles were not certified 
as meeting Federal motor vehicle safety standards (FMVSS).
    GM noted that Chevrolet Suburbans manufactured for sale and use in 
Mexico contain approximately 750 parts that differ from those used on 
Suburbans manufactured for sale and use in the United States. The 
company stated that a substantial number of these parts are produced by 
Mexican suppliers and are not subject to the same warranty and approval 
process that is used by GM in purchasing parts that may affect 
compliance with applicable FMVSS. Parts that GM has purchased without 
following these procedures include ones that it describes as 
potentially affecting compliance with Standard Nos. 105 Hydraulic Brake 
Systems, 119 New Pneumatic Tires for Vehicles other than Passenger 
Cars, 120 Tire Selection and Rims for Motor Vehicles other than 
Passenger Cars, 201 Occupant Protection in Interior Impact, 202 Head 
Restraints, 205 Glazing Materials, 207 Seating Systems, 208 Occupant 
Crash Protection, 301 Fuel System Integrity, and 302 Flammability of 
Interior Materials. Although GM acknowledged that it was unable to 
state that a vehicle built with the parts in question would not meet 
these standards, the company reiterated that neither it nor GM de 
Mexico has undertaken the testing that would be necessary to establish 
such compliance.
    GM further observed that Mexican standards contain requirements for 
glazing, tires, brake fluids, batteries, and safety belts that differ 
from those in the corresponding FMVSS. Additionally, the company 
asserted that Mexico has no requirements similar to those in Standard 
Nos. 102 Transmission Shift Lever Sequence, Starter Interlock, and 
Transmission Braking Effect, 124 Accelerator Control Sequence, 208 
Occupant Crash Protection, 214 Side Impact Protection, or 301 Fuel 
System Integrity, and to requirements in portions of Standard No. 108 
Lamps, Reflective Devices, and Associated Equipment. Citing examples, 
GM stated that vehicles manufactured for the Mexican market have no 
center high mounted stop lamps or air bags. Additionally, the company 
contended that these vehicles have engines that may not meet Standard 
Nos. 102 and 124.
    In response to a follow-up inquiry from NHTSA, GM stated that the 
750 parts in Mexican Suburbans that are not found in the U.S.-certified 
versions of the vehicle have different part numbers from their U.S. 
equivalents. GM asserted that the assignment of a different part number 
is due to some difference in product design specifications and not 
simply to a difference in supplier. The

[[Page 18386]]

company acknowledged that it has not identified all design 
specification differences between these parts and the corresponding 
parts found on U.S.-certified vehicles. GM asserted, however, that the 
analysis it has performed reveals that interior trim, seat assemblies, 
glazing materials, tires, engines, manual transmissions, rear axles, 
front hub and knuckle assemblies, fuel lines, and fuel caps all have 
design specifications that differ in a number of areas from the 
specifications that apply to parts released for U.S. vehicles. GM also 
noted that even non-Mexican sourced parts used in Mexican Suburbans, 
such as automatic transmissions and fuel tank assemblies, have 
different design specifications from those found on U.S. certified 
vehicles.
    NHTSA accorded LPC an opportunity to respond to GM's comments. In 
its response, LPC agreed with GM's assertion that components released 
for non-U.S. marketed Suburbans may not meet FMVSS requirements. LPC 
contended, however, that the specific vehicles it seeks to import were 
manufactured for the U.S. market with U.S.-model components, but that 
they lack the required certification label.
    NHTSA accorded GM an opportunity to respond to LPC's comments. In 
its response, GM stated that it examined the vehicle identification 
numbers assigned to the vehicles that LPC wishes to import, and has 
concluded on the basis of that examination that these vehicles were not 
originally manufactured for sale in the United States.
    NHTSA has fully considered the comments from both GM and LPC. In 
light of GM's claim that 1995-1996 Suburbans built for the Mexican 
market have 750 parts that differ from those found on U.S. certified 
versions of these vehicles, and that vehicles with these parts have not 
been tested for compliance with the FMVSS, LPC had the burden of 
producing information to demonstrate such compliance. Far from 
producing such information, LPC acknowledged agreement with GM's 
position. In light of this circumstance, NHTSA has concluded that the 
petition does not clearly demonstrate that non-U.S. certified 1995-1996 
GMC and Chevrolet Suburban MPVs are eligible for importation. The 
petition must therefore be denied under 49 CFR 593.7(e).
    In accordance with 49 U.S.C. 30141(b)(1), NHTSA will not consider a 
new import eligibility petition covering this vehicle until at least 
three months from the date of this notice.

    Authority: 49 U.S.C. 30141 (a)(1)(A) and (b)(1); 49 CFR 593.7; 
delegations of authority at 49 CFR 1.50 and 501.8.

    Issued on: April 10, 1997.
Marilynne Jacobs,
Director, Office of Vehicle Safety Compliance.
[FR Doc. 97-9698 Filed 4-14-97; 8:45 am]
BILLING CODE 4910-59-P