[Federal Register Volume 71, Number 133 (Wednesday, July 12, 2006)]
[Notices]
[Pages 39392-39394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10891]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2006-25323]


Saleen, Inc.; Receipt of Application for a Temporary Exemption 
From Federal Motor Vehicle Safety Standard No. 208

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Notice of receipt of application for a temporary exemption from 
provisions of Federal Motor Vehicle Safety Standard No. 208, Occupant 
crash protection.

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SUMMARY: In accordance with the procedures of 49 CFR part 555, Saleen, 
Inc. (Saleen) has applied for an extension of a Temporary Exemption 
from the automatic restraint requirements of Federal Motor Vehicle 
Safety Standard (FMVSS) No. 208, Occupant Crash Protection, and an 
additional exemption from the advanced air bag requirements of that 
standard, both for the Saleen S7. 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.\1\
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    \1\ To view the application using the Docket number listed 
above, please go to: http://dms.dot.gov/search/searchFormSimple.cfm.
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    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.

DATES: You should submit your comments not later than July 27, 2006.

FOR FURTHER INFORMATION CONTACT: Ed Glancy or Eric Stas in the Office 
of Chief Counsel, NCC-112, (Phone: 202-366-2992; Fax 202-366-3820).

SUPPLEMENTARY INFORMATION:

I. Background

    A manufacturer is eligible to apply for a hardship exemption if its 
total motor vehicle production in its most recent year of production 
does not exceed 10,000, as determined by the NHTSA Administrator (15 
U.S.C. 1410(d)(1)). Saleen has manufactured less than 20 Saleen S7's a 
year between model years 2003 and 2005. Applicant's other line of 
business consists of altering Ford Mustang vehicles. Saleen stated that 
it produced approximately 1500 Saleen Mustangs in model year 2005.
    In June 2001, NHTSA granted Saleen a two-year hardship exemption 
from the automatic restraint requirements of FMVSS No. 208 (S4.1.5.3), 
expiring on April 16, 2003 (66 FR 33298; June 21, 2001). On January 22, 
2004, we granted a renewal of the exemption for an additional three 
years, expiring on September 1, 2006.\2\ Saleen has applied for a 
renewal of that exemption as well as an exemption from the advanced air 
bag provisions of FMVSS No. 208 (S14.2).\3\
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    \2\ In accordance with 49 CFR 555.8(e), Saleen's original 
exemption remained in effect until the publication of the 2004 grant 
notice because the application for renewal was filed more than 60 
days prior to the expiration of the exemption.
    \3\ Saleen's application states that Saleen is requesting an 
exemption from the advanced air bag provisions, which it cited as 
S5.1.1(b). S5.1.1 is the advanced air bag provision for occupant 
crash protection requirements for the 50th percentile adult male in 
a frontal barrier crash test. We believe that Saleen meant to cite 
S14.2, which establishes all of the advanced air bag requirements, 
including those for the 5th percentile adult female, children, and 
infants.
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    In September of 2005, Saleen submitted an application for further 
exemption from the automatic restraint requirements of FMVSS No. 208, 
as well as an exemption from the advanced air bag requirements of the 
standard. Saleen subsequently withdrew the petition, and later 
resubmitted the application in January of 2006. Saleen then provided 
supplemental information May 11, 2006.
    In 2000, NHTSA upgraded the requirements for air bags in passenger 
cars and light trucks, requiring what is commonly known as ``advanced 
air bags.'' \4\ The upgrade was designed to meet the goals of improving 
protection for occupants of all sizes, belted and unbelted, in moderate 
to high speed crashes, and of minimizing the risks posed by air bags to 
infants, children, and other occupants, especially in low speed 
crashes.
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    \4\ See 65 FR 30680; May 12, 2000.
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    The advanced air bag requirements were a culmination of a 
comprehensive plan that the agency announced in 1996 to address the 
adverse effects of air bags. This plan also included an extensive 
consumer education program to encourage the placement of children in 
rear seats. The new requirements were phased in beginning with the 2004 
model year.
    Small volume manufacturers are not subject to the advanced air bag 
requirements until September 1, 2006, but their efforts to bring their 
respective vehicles into compliance with these requirements began 
several years ago. However, because the new requirements were 
challenging, major air bag suppliers concentrated their efforts on 
working with large-scale manufacturers and thus, until recently, small 
volume

[[Page 39393]]

manufacturers had limited access to advanced air bag technology. 
Because of the nature of the requirements for protecting out-of-
position occupants, ``off-the-shelf'' systems could not be readily 
adopted. Further complicating matters, because small volume 
manufacturers build so few vehicles, the costs of developing custom 
advanced air bag systems compared to potential profits discouraged some 
air bag suppliers from working with small volume manufacturers.
    The agency has carefully tracked occupant fatalities resulting from 
air bag deployment. Our data indicates that the agency's efforts in the 
area of consumer education and manufacturers' providing de-powered air 
bags were successful in reducing air bag fatalities even before 
advanced air bag requirements were implemented.
    We note that Saleen is requesting not only an exemption from the 
advanced air bag requirements, but also a continued exemption from the 
automatic restraint requirements altogether. As always, we are 
concerned about the potential safety implication of any temporary 
exemptions granted by this agency. The agency is accepting comment on 
granting Saleen's application.

II. Saleen's Statement of Need and Good Faith Effort

    Saleen stated that its previous exemption extension request was 
intended to provide sufficient time for Saleen to sell and ship the 
Saleen S7 vehicles to generate the necessary cash flow to support the 
development of an air bag system that would be compliant with the 
advanced air bag requirements. The applicant stated that it intended to 
produce and sell a total of 36 vehicles by the end of 2003, with 
production slowly increasing to a rate of 50 vehicles per year. Saleen 
projected that this sales rate would have generated approximately $12.8 
million in annual gross revenue by the end of 2003, which would then 
increase to approximately $17.8 million in annual gross revenue with 
the annual production of 50 vehicles. Saleen presented its actual 
annual sales as 13 vehicles, 8 vehicles, and 14 vehicles, in model 
years 2003, 2004, and 2005, respectively.
    In the January 2005 application, Saleen stated that it intended to 
sell a total of 25 vehicles in the United States by the end of 2005, 
and an additional 10 vehicles in Europe. Maintaining an annual sales 
level of 35 vehicles, Saleen would generate a total of approximately 
$17.8 million. Saleen revised these projections stating that it was 
uncertain whether it would manufacturer the Saleen S7 for international 
sale, as European homologation is pending.
    However, Saleen stated that increased sales of its other products 
in conjunction with the sales of the Saleen S7 will allow it to develop 
an air bag system that is compliant with FMVSS No. 208 by the end of 
calendar year 2008 at a cost of approximately $3.8 million. Saleen 
stated that this timeframe does not account for any delays, and as 
such, it is requesting a three year exemption, expiring September 1, 
2009.
    Saleen noted that in its previous application it explained that 
Saleen's relationship with Ford Motor Company in assisting in the 
manufacture of the Ford GT, an exotic sports car, would allow Saleen to 
rely on many of the components from the Ford GT. However, Saleen stated 
that the Ford GT was not manufactured as complying with the advanced 
air bag requirements. As such, Saleen stated that it was not able to 
rely on the advanced air bag technology used in the Ford GT.
    Since the original air bag exemption, Saleen stated that it has 
hired an engineering project manger responsible for air bag 
development, has been working with engineers at Takata, Autoliv, and 
Bosch in researching all of the program requirements as well as 
developing a test plan and component designs for development of a 
system compliant with the advanced air bag requirement. Saleen also 
stated that it is working with Kettering University in Flint Michigan 
for additional research and testing.

III. Saleen's Statement of Public Interest

    The applicant put forth several arguments in favor of a finding 
that the requested exemption is consistent with the public interest. 
Specifically, Saleen stated that the Saleen S7 is a unique vehicle 
designed and produced in the United States utilizing many domestic 
sourced components. If an exemption were granted Saleen stated that it 
would be able to maintain its current payroll of 150 full time 
employees and continue the purchase of domestic sourced components. 
Further, Saleen stated that the Saleen S7 otherwise conforms to all 
applicable FMVSSs.

IV. How You May Comment on the Saleen Application

    We invite you to submit comments on the application described 
above. You may submit comments (identified by the DOT Docket number in 
the heading of this document) 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 am and 5 pm, 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 are providing a 15 day comment period in light of the short 
period of time between now and September 1, 2006. 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.
    (49 U.S.C. 30113; delegations of authority at 49 CFR 1.50. and 
501.8)


[[Page 39394]]


    Issued on: July 5, 2006.
Ronald L. Medford,
Senior Associate Administrator for Vehicle Safety.
[FR Doc. E6-10891 Filed 7-11-06; 8:45 am]
BILLING CODE 4910-59-P