[Federal Register Volume 61, Number 19 (Monday, January 29, 1996)]
[Notices]
[Page 2866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1504]
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DEPARTMENT OF TRANSPORTATION
[Docket No. 93-37, Notice 4]
Panoz Auto Development Co.; Grant of Application for Renewal of
Temporary Exemption From Federal Motor Vehicle Safety Standard No. 208
Panoz Auto Development Company of Hoschton, Ga., applied for a
renewal of its exemption from paragraph S4.1.4 of Federal Motor Vehicle
Safety Standard No. 208 Occupant Crash Protection. The basis of the
application was that compliance will 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 October 13,
1995, and an opportunity afforded for comment (60 FR 53454). This
notice grants the renewal.
Panoz received NHTSA Exemption No. 93-5 from S4.1.4 of Standard No.
208, which was scheduled to expire August 1, 1995 (58 FR 43007).
However, its application for renewal was filed on May 26, 1995, which
was more than 60 days before the scheduled expiration date of its
exemption. In accordance with 49 CFR 555.8(e), Panoz' filing of its
application before the 60th day stays the expiration until the
Administrator grants or denies the application for renewal.
Panoz's original exemption was granted pursuant to the
representation that its Roadster would be equipped with a Ford-supplied
driver and passenger airbag system, and would comply with Standard No.
208 by April 5, 1995, after estimated expenditures of $472,000. As of
April 1993, the company had expended 750 man hours and $15,000 on the
project.
According to its application for renewal:
Panoz has continued the process of researching and developing
the installation of a driver and passenger side airbag system on the
Roadster since the original exemption petition was submitted to
NHTSA on April 5, 1993. To date, an estimated 1680 man-hours and
approximately $50,400 have been spent on this project.
Panoz uses a 5.0L Ford Mustang GT engine and five speed manual
transmission in its car. Because ``the 1995 model year and associated
emission components were revised by Ford'', this caused
a delay in the implementation of the airbag system on the Roadster
due to further research and development time requirements and
expenditure of additional monies to evaluate the effects of these
changes on the airbag adaptation program.
In addition, the applicant learned that Ford will be replacing the
5.0L engine and emission control system on the 1996 Mustang and other
passenger cars with a modular 4.6L engine and associated emission
components. The 1995 system does not meet 1996 On-Board Diagnostic
emission control requirements, and Panoz will have to use the 1996
engine and emission control system in its cars. The majority of the
money and man hours to date have been spent on adapting an airbag
system to the 5.0L engine car, and the applicant is now concentrating
on adapting it to a 4.6L engine car. Panoz listed eight types of
modifications and testing necessary for compliance that would cost it
$337,000 if compliance were required at the end of a one-year period.
It has asked for a two-year renewal of its exemption.
Panoz sold 13 cars in 1993 and 13 more in 1994. It did not state
its sales to date in 1995. At the time of its original petition, its
cumulative net losses since incorporation in 1989 were $1,265,176. It
lost an additional $249,478 in 1993 and $169,713 in 1994.
The applicant reiterated its original arguments that an exemption
would be in the public interest and consistent with the objectives of
traffic safety. Specifically, the Roadster is built in the United
States and uses 100 percent U.S. components, bought from Ford and
approximately 75 other companies. It provides full time employment for
7 persons, and ``at least 200 employees from over 80 different
companies remain involved in the Panoz project.'' The Roadster is said
to ``provide the public with a classic alternative to current
production vehicles.'' It is the only vehicle that incorporates
``molded aluminum body panels for the entire car'', a process which is
being evaluated by other manufacturers and which ``results in the
reduction of overall vehicle weight, improved fuel efficiency, and
increased body strength.'' With the exception of S4.1.4 of Standard No.
208, the Roadster meets all other Federal motor vehicle safety
standards including the 1997 side impact provisions of Standard No.
214.
No comments were received on the application.
Since its incorporation in 1989, the applicant's cumulative net
loss exceeds $1,600,000. Its estimated cost of $337,000 for immediate
conformance is a convincing hardship argument. In addition, the on-
going compliance efforts of the company with respect to two Ford engine
configurations indicate that the company continues to make a good faith
effort to comply with Standard No. 208. This American-made vehicle is
represented as meeting all remaining Federal motor vehicle safety
standards, and will comply with new side intrusion requirements in
advance of its effective date. A renewal of the exemption is merited.
In consideration of the foregoing, it is hereby found that to
require immediate compliance with Standard No. 208 would cause
substantial economic hardship to a manufacturer that has in good faith
attempted to meet the standard, and that an exemption would be in the
public interest and consistent with the objectives of traffic safety.
Accordingly, NHTSA Exemption No. 93-5 from paragraph S4.1.4 of 49
CFR 571.208 Motor Vehicle Safety Standard No. 208 Occupant Crash
Protection is hereby extended to expire November 1, 1997.
(49 U.S.C. 30113; delegation of authority at 49 CFR 1.50.)
Issued on January 23, 1996.
Ricardo Martinez,
Administrator.
[FR Doc. 96-1504 Filed 1-26-96; 8:45 am]
BILLING CODE 4910-59-P
