[Federal Register Volume 63, Number 159 (Tuesday, August 18, 1998)]
[Notices]
[Page 44302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22209]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration
[Docket No. NHTSA-98-4320; Notice 1]


Shelby American, Inc.; Application for Temporary Exemption From 
Federal Motor Vehicle Safety Standard No. 208

    Shelby American, Inc., of Las Vegas, Nevada (``Shelby''), has 
applied for an exemption until July 1, 2000, from the automatic 
restraint provisions of Federal Motor Vehicle Safety Standard No. 208 
Occupant Crash Protection (S4.1.5.3). The basis of the application is 
that compliance would cause substantial economic hardship to a 
manufacturer that has tried in good faith to comply with the standard.
    This notice of receipt of the petition is published in accordance 
with agency regulations on the subject and does not represent any 
judgment by the agency about the merits of the petition.
    Shelby is a Texas corporation, privately held and wholly owned by 
Carroll Shelby. Its current business activities are conducted by three 
wholly owned subsidiaries. The first of these subsidiaries is Shelby 
Series One, Inc., the unit that will produce a new sports car which is 
the subject of this application for a temporary exemption. These 
vehicles currently exist in prototype form only, and none have been 
produced. The second subsidiary is Shelby CSX4000, Inc., which produces 
``a component vehicle sold without engine or transmission,'' to 
individuals who will install the power train of their choice. Shelby 
sold 75 of these Cobra replica assemblies in the past year. The third 
subsidiary is Shelby Original 427S/Cs, Inc., whose business is to 
assemble automobiles ``from certain new old stock parts surviving from 
the original 1965 Shelby Cobra production run . . . supplemented by 
newly manufactured parts utilizing original tooling.'' Two such 
vehicles have been assembled and sold to date.
    The Series I is a two-passenger open convertible sports car, 
powered by the Oldsmobile Aurora engine. The first prototypes were 
shown in early 1997. Shelby has asked to be excused from compliance 
with the automatic restraint requirements of Standard No. 208. Shelby 
is working ``with many outside companies'' to complete the vehicle 
development and certification. Development of the Series I started in 
March 1995 (i.e., engineering tasks subsequent to initial design 
development). To date, Shelby has spent an estimated total of 400 man 
hours and $75,000 related to air bag development. As with development 
of the engine and interior, Shelby must contract the air bag 
development to an outside company. This cost will total $4,643,500 over 
the period of time for which it has asked for an exemption. Additional 
expenditures of $546,000 will be necessary to cover the costs of 
testing, and integration of airbag wiring. In the interim, the Series I 
will be equipped with a three-point driver and passenger restraint 
system. It is optimistic that it can sell 500 Series I cars in the 
period for which it has requested exemption. With these sales ``Shelby 
American will be able to support the estimated $216,229 monthly 
development expenditure necessary for implementation of the airbag at 
the end of the two year period.''
    Shelby had no material operations in 1995. Its unaudited 
consolidated balance sheet shows a net loss of $738,415 for 1996, and a 
net income of $147,904 for 1997.
    The applicant argues that ``the production of the Shelby Series I 
is in the best interest of the public and the US economy.'' The company 
is opening a new 100,000 square foot facility in June 1998 in Las Vegas 
to produce the Series I. The new facility ``will provide direct 
employment to approximately 200 employees.'' In addition, ``there are 
approximately 25 development/partner companies working with Shelby 
American on the development of the Shelby Series I, providing indirect 
employment for those companies' personnel . . .'' The car will be sold 
through select Oldsmobile dealers . . . providing employment to many 
sales and service personnel at the dealership level.'' Most major 
components are produced in the United States, including the engine 
(Oldsmobile), tires (Goodyear), and transmission (ZF, from RBT, a US 
company). The Series I is technically advanced, combining ``an aluminum 
chassis with a carbon-fiber body, a new concept amongst production 
vehicles, which provides strength and durability while minimizing 
weight.'' Shelby believes that ``the reduced weight achieved with this 
vehicle will translate into a new standard for improved emissions and 
fuel efficiency. Aside from Standard No. 208, the car will be certified 
as conforming to all applicable Federal motor vehicle safety standards.
    Interested persons are invited to submit comments on the 
application described above. Comments should refer to the docket and 
notice number, and be submitted to: Docket Management, National Highway 
Traffic Safety Administration, room PL-401, 400 Seventh Street, SW, 
Washington, DC 20590. It is requested that two copies be submitted.
    All comments received before the close of business on the comment 
closing date below will be considered, and will be available for 
examination in the docket at the above address both before and after 
that date, between the hours of 10 a.m. and 5 p.m. To the extent 
possible, comments filed after the closing date will also be 
considered. Notice of final action on the petition will be published in 
the Federal Register pursuant to the authority indicated below.
    Comment closing date: September 17, 1998.

    Authority: 49 U.S.C. 30113; delegations of authority at 49 CFR 
1.50 and 501.4.

    Issued on: August 13, 1998.
L. Robert Shelton,
Associate Administrator for Safety Performance Standards.
[FR Doc. 98-22209 Filed 8-17-98; 8:45 am]
BILLING CODE 4910-59-P