[Federal Register Volume 70, Number 26 (Wednesday, February 9, 2005)]
[Notices]
[Pages 6924-6925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2473]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
[Docket No. NHTSA-2005-20288, Notice 1]
Cross Lander USA; Receipt of Application for a Temporary
Exemption From Federal Motor Vehicle Safety Standard No. 208
In accordance with the procedures of 49 CFR part 555, Cross Lander
USA (``Cross Lander'') has applied for a Temporary Exemption from the
automatic restraint requirements of Federal Motor Vehicle Safety
Standard (FMVSS) No. 208, ``Occupant crash protection.'' 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.
We are publishing this notice of receipt of the application in
accordance with the requirements of 49 U.S.C. 30113(b)(2), and have
made no judgment on the merits of the application.
I. Background
Cross Lander seeks to import and distribute a multipurpose
passenger vehicle, the Cross Lander 244X, manufactured in Romania.
According to the petitioner, the 244X was previously known as ``ARO,''
and was ``built for extreme off road use and such were used by many
armies and NATO forces.'' Over 360,000 ARO vehicles were manufactured
from 1957 until 1989. The petitioner describes the 244X as similar in
off-road capability to Hummer H-1 vehicles manufactured by General
Motors. Although Cross Lander has negotiated with an air bag
manufacturer for the design and testing of an air bag system for its
vehicle, completion of the air bag development is not economically
viable without additional revenue generated through immediate sales of
the 244X in the United States.
A description of the 244X is set forth in the petition (Docket No.
NHTSA-2005-20288). For additional information on the 244X, please go to
http://www.crosslander4x4.com/.
II. Why Cross Lander Needs a Temporary Exemption
Because of an unexpected change in the choice of engine equipped on
the 244X, the Gross Vehicle Weight Rating (GVWR) of the 244X is less
than 5,500 pounds. However, in preparing the 244X for sale in the
United States, the petitioner anticipated that the vehicle would have a
higher GVWR. Because a heavier vehicle would not have been subject to
the applicable automatic restraint requirements of FMVSS No. 208, the
petitioner was not prepared to equip the 244X with a suitable air bag
system.
According to the petitioner, the cost of making the 244X compliant
with FMVSS No. 208 on short notice is beyond the company's current
capabilities. Thus, Cross Lander requests a two-year exemption in order
to develop a compliant automatic restraint system.
The petition indicates that Cross Lander has invested over $2
million into the company. The petitioner's draft financial statements
indicate a net loss of $653,307 for the fiscal year ending 12/31/2002,
and a net loss of $383,633 for the for the fiscal year ending 12/31/
2003.\1\ Additionally, a 2004 cash flow analysis projects a net loss of
$1,602,433.\2\ The agency requested that Cross Lander provide updated
financial statements for years 2002 through 2004 and will examine this
information before arriving at our decision on this application.
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\1\ See Petition Attachment Draft Financial Statements (Docket
No. NHTSA-2005-20288).
\2\ See Petition Attachment 1 (Docket No. NHTSA-2005-20288).
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The petitioner expected to derive initial revenue from sales of
dealership licenses. However, if the Cross Lander MPV cannot be sold in
the United States, no additional dealership licenses will be sold, and
existing dealers would be entitled to a full refund. In short, the
company would cease operations unless it is able to begin selling their
product in the immediate future.
III. Why Compliance Would Cause Substantial Economic Hardship and How
Cross Lander Has Tried in Good Faith To Comply With FMVSS No. 208 and
the Bumper Standard
As previously discussed, the petitioner contends that failure to
obtain a two-year exemption from the requirements of FMVSS No. 208
would result in Cross Lander closing its operations because it would
not be able to sell any vehicles or maintain its dealer network.
Cross Lander examined several air bag manufacturers and chose
Siemens to develop its air bag system. The estimated cost of developing
an advanced air bag system to meet FMVSS No. 208 is $1.2 million. The
project would take approximately 18 months.\3\ Because Cross Lander has
no current vehicles for sale in the United States, it is impossible to
finance this project without a source of revenue. The petitioner
contends that a two-year exemption would allow the Cross Lander to
successfully develop a suitable air bag system.
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\3\ See Siemens Report, Attachment 2 (Docket No. NHTSA-2005-
20288).
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IV. Why an Exemption Would Be in the Public Interest and Consistent
With the Objectives of Motor Vehicle Safety
The petitioner put forth several arguments in favor of a finding
that the requested exemption is consistent with the public interest and
the objectives of the Safety Act. Specifically:
1. The petitioner argues that the 244X is likely to be used
extensively off-road and would not travel frequently on
[[Page 6925]]
public roads. In fact, the vehicle is designed specifically for that
purpose and is not equipped with many ``comfort features'' normally
associated with everyday driving. The vehicle is also equipped with a
special, heavy-duty suspension. Further, the vehicle's top speed is set
relatively low at 70 mph.
2. The petitioner argues that a series of crash tests, including
the dynamic FMVSS No. 214 test indicate that the 244X is ``very
crashworthy.''
3. The petitioner suggests that over 100 people in the U.S. and
1,200 people in Romania may be in danger of losing their jobs if Cross
Lander is forced to close its U.S. operations.
4. Finally, the petitioner states that 244X purchasers will be
sufficiently warned about the lack of air bags. First, ``significant''
warning labels would inform the driver that the exempted vehicle is not
equipped with air bags. Second, this information would also appear in
the owner's manual. Third, an instructional video accompanying each
244X would again warn drivers that the vehicle does not come with air
bags.
V. How You May Comment on Cross Lander Application
We invite you to submit comments on the application described
above. You may submit comments [identified by DOT Docket Number NHTSA-
2005-20288] by any of the following methods:
Web Site: http://dms.dot.gov. Follow the instructions for
submitting comments on the DOT electronic docket site by clicking on
``Help and Information'' or ``Help/Info.''
Fax: 1-202-493-2251.
Mail: Docket Management Facility, U.S. Department of
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401,
Washington, DC 20590.
Hand Delivery: Room PL-401 on the plaza level of the
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
Instructions: All submissions must include the agency name and
docket number or Regulatory Identification Number (RIN) for this
rulemaking. Note that all comments received will be posted without
change to http://dms.dot.gov, including any personal information
provided.
Docket: For access to the docket in order to read background
documents or comments received, go to http://dms.dot.gov at any time or
to Room PL-401 on the plaza level of the Nassif Building, 400 Seventh
Street, SW., Washington, DC, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
Privacy Act: Anyone is able to search the electronic form of all
comments received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit
http://dms.dot.gov.
We shall consider all comments received before the close of
business on the comment closing date indicated below. To the extent
possible, we shall also consider comments filed after the closing date.
We shall publish a notice of final action on the application in the
Federal Register pursuant to the authority indicated below.
Comment closing date: March 11, 2005.
(49 U.S.C. 30113; delegations of authority at 49 CFR 1.50. and
501.8)
FOR FURTHER INFORMATION CONTACT: George Feygin in the Office of Chief
Counsel, NCC-112 (Phone: 202-366-2992; Fax 202-366-3820; E-Mail:
[email protected]).
Issued on: February 3, 2005.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
[FR Doc. 05-2473 Filed 2-8-05; 8:45 am]
BILLING CODE 4910-59-P