[Federal Register Volume 63, Number 97 (Wednesday, May 20, 1998)]
[Notices]
[Pages 27784-27785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13437]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
[Docket No. NHTSA-98-3782; Notice 1]
Laforza Automobiles, Inc.; Receipt of Application for Temporary
Exemption From Federal Motor Vehicle Safety Standard No. 208
Laforza Automobiles, Inc., of Escondido, California, (``Laforza'')
has applied for a temporary exemption from the automatic restraint
requirements of Federal Motor Vehicle Safety Standard No. 208 Occupant
Crash Protection, as described below. 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 an application is published in accordance
with the requirements of 49 U.S.C. 30113(b)(2) and does not represent
any judgment of the agency on the merits of the application.
Laforza is a Nevada corporation established in August 1997. To date
it has produced no motor vehicles. It intends to purchase chassis from
Magnum Industriales s.r.l., an Italian company, ``where it will undergo
the necessary modifications for the US market.'' A Ford engine,
transmission, and associated emission control systems will be
installed, and the end result will be a multipurpose passenger vehicle
(sport utility) called the Prima 4X4. Laforza estimates a total
production of 400 units between the date of the exemption and December
31, 2000. This is the date that its requested temporary exemption would
expire.
Laforza seeks an exemption from S4.2.6.1.1 and S4.2.6.2 of Standard
No. 208. Paragraph S4.2.6.1.1, in pertinent part, would require Laforza
to provide a driver side airbag on not less than 80 percent of all
Primas manufactured before September 1, 1998. Paragraph S4.2.6.2 would
require all Primas manufactured on and after September 1, 1998, to be
equipped with both driver and right front passenger airbags. Although
the passenger side airbag is not required until September 1 of this
year, ``the airbag development program has to include both the
passenger and driver side airbags since the development duration for a
driver's side airbag would overlap the time when a passenger's side
airbag will be required.'' Laforza continues, ``If the development is
not combined, many of these tests would have to be repeated with a
significant increase in test and material costs.''
In the first 6 months after its agreement with Magnum, Laforza
spent ``an estimated total of 200 manhours and $15,000'' on airbag
compliance issues. Lacking the resources to independently develop an
airbag system, it ``has contacted airbag development companies in the
US to assist with the project.'' Laforza has concluded that it will
take 2 years to develop and certify the system. If immediate compliance
were required, the cost would be $4,000,000. An exemption would permit
Laforza to generate revenues ``to meet the costs mandated by the airbag
development program'' and spread these costs over a period of time.
Because the company is less than a year old, it could not submit
corporate balance sheets and income statements for the three years
immediately preceding the filing of its application, as specified by
NHTSA's regulation. Its stockholder equity is $900,000.
Laforza argues that ``production of the Laforza Prima 4X4 is in the
best interest of the public and the US economy,'' pointing to the
uniqueness of the vehicle, and the American components that it
incorporates, the powertrain from Ford Motor Company and the purchase
of ``other parts * * * from approximately five different US
companies.'' The company currently employs 15 people full-time and
three people part time, which will grow as production increases.
Further, ``in addition, * * * at least 50 employees from other
companies are involved in the Laforza project.'' During the exemption
period, the Prima will be ``equipped with a conventional retractor
type, three-point driver and passenger seatbelt system that meets all
requirements of FMVSS No. 208,'' and the vehicle otherwise complies
with all Federal motor vehicle safety standards that apply to it.
Interested persons are invited to submit comments on the
application described above. Comments should refer to the docket number
and the notice number, and be submitted to: Central Docket Management
Facility, room Pl-401, 400 Seventh Street, SW, Washington, DC 20590. It
is requested but not required that 10 copies be submitted.
All comments received before the close of business on the comment
closing date indicated below will be considered, and will be available
for examination in the docket (from 10 a.m. to 5 p.m.) at the above
address both before and after that date. Comments may also be viewed on
the internet at web site dms.dot.gov. To the extent possible, comments
filed after the
[[Page 27785]]
closing date will also be considered. Notice of final action on the
application will be published in the Federal Register pursuant to the
authority indicated below.
Comment closing date: June 9, 1998.
(49 U.S.C. 30113; delegations of authority at 49 CFR 1.50. and
501.8)
Issued: May 15, 1998.
L. Robert Shelton,
Associate Administrator for Safety Performance Standards.
[FR Doc. 98-13437 Filed 5-19-98; 8:45 am]
BILLING CODE 4910-59-P
