Motor Vehicle Theft Prevention; Procedures for Selecting Lines Subject to Theft Prevention Standard

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 542

[Docket No. 93--53; Notice 2]

RIN 2127-AE67

Motor Vehicle Theft Prevention; Procedures for Selecting Lines

Subject to Theft Prevention Standard

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

ACTION: Final rule.

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SUMMARY: This final rule amends the procedures for the selection of new

passenger motor vehicle lines that are likely to be high theft lines.

For all Model Year (MY) 1997 and later vehicles, manufacturers must, 15

months in advance of the model year of introduction, inform NHTSA about

new motor vehicle lines that the manufacturers plan to introduce for

sale. Manufacturers must include an analysis whether the new line is

likely to be a high or low theft line. The effect of this final rule is

to make the procedures consistent with statutory requirements.

DATES: Effective date: This final rule is effective May 26, 1994.

Petitions for Reconsideration: Petitions for reconsideration of

this final rule must be received by NHTSA no later than May 26, 1994.

ADDRESSES: Petitions for reconsideration of this final rule should

refer to the docket number and notice number cited in the heading of

this notice and be submitted to: Administrator, National Highway

Traffic Safety Administration, 400 Seventh Street, S.W., Washington, DC

20590.

FOR FURTHER INFORMATION CONTACT: Ms. Barbara A. Gray, Office of Market

Incentives, NHTSA, 400 Seventh Street SW., Washington, DC 20590. Ms.

Gray's telephone number is (202) 366-1740.

SUPPLEMENTARY INFORMATION:

Motor Vehicle Theft Law Enforcement Act of 1984

The Motor Vehicle Theft Law Enforcement Act of 1984 (Pub. L. 98-

547) (Theft Act), added title VI to the Motor Vehicle Information and

Cost Savings Act (Cost Savings Act). Pursuant to title VI, NHTSA

promulgated 49 CFR part 541, titled ``Federal Motor Vehicle Theft

Prevention Standard.'' Part 541 establishes performance requirements

for inscribing or affixing identification numbers onto certain major

original equipment and replacement parts of high theft lines of

passenger motor vehicles.

Section 603(a)(2) of title VI states that the specific lines, and

the major parts of the vehicles within such lines, that are to be

subject to the theft prevention standard may be selected by agreement

between a manufacturer and the agency. If the agency and manufacturer

disagree as to the selection, the selection is made by the agency,

after providing notice to the manufacturer and an opportunity for

written comment.

Section 603(c) states that NHTSA ``shall, by rule, require each

manufacturer to provide information necessary to select pursuant to

subsection (a)(2) the high theft lines and major parts to be subject to

the standard.'' (Emphasis added.) However, as promulgated on August 28,

1985 (50 FR 34831), the agency's regulations regarding the selection of

high theft lines did not require the submission of such information.

Those regulations, which are contained in part 542, simply set forth

the procedures to be followed by those manufacturers which voluntarily

choose to provide the information and to participate in the selection

process.

Since the establishment of part 542, some manufacturers have not

consistently notified the agency about the introduction of new lines

within the specified time frame of 18 to 24 months before introduction

of each new line. On occasion, delayed notification by manufacturers

has prevented the agency from making its preliminary determination

sufficiently in advance of the introduction of such lines to permit

application of the theft prevention standard to those lines during

their introductory model year. To be subject to the standard in its

introductory year, a line must be finally selected as high theft not

less than 6 months before the beginning of that model year.

In some instances, the agency has had to act on its own initiative

by anticipating the introduction of new lines and making high theft/low

theft determinations because the manufacturers did not notify the

agency within the specified period of 18 to 24 months before the

introduction of their new lines. In making these determinations, the

agency has relied on reports in the trade press about planned

introductions of new lines. Notwithstanding the absence of notification

from the manufacturers, the manufacturers objected to this practice,

viewing such agency initiative as an attempt to second guess them about

the timing of the introduction of new model lines, or to reduce their

opportunity to provide input regarding the determination.

Notice of Proposed Rulemaking

On July 21, 1993, NHTSA published in the Federal Register a notice

of proposed rulemaking to amend part 542 (See 58 FR 38999). In order to

solve the problem of manufacturers' late notification of the agency

about new lines, the agency proposed to implement section 603(c) of the

Cost Savings Act. Under the proposal, each manufacturer would be

required to provide, for each of its newly planned lines, its

determination whether the line was likely high or low theft, and

include a discussion of how it applied the criteria set forth in

appendix C of part 541, in arriving at its determination. The appendix

C criteria are: Price; vehicle image; lines competitive with the new

line; line(s) the new line is intended to replace; presence of any

antitheft devices; preliminary theft data for the line, if available.

The agency also proposed that a manufacturer be required to submit such

information not less than 18 months before introduction of the planned

line.

In the NPRM, NHTSA stated it believed that requiring manufacturers

to submit the necessary information would provide the agency with more

timely submissions of accurate and up-to-date data to evaluate. This

would enable the agency to select more effectively and efficiently (by

agreement with the manufacturer, if possible) those new lines likely to

have a high theft rate. Also, since the information would be provided

timely and directly to the agency by the manufacturer, the agency

presumably would no longer need to rely upon the trade press accounts.

In order to provide manufacturers with lead time to comply with the

new mandatory procedures, the agency proposed to continue to permit

voluntary submission of information for lines that are introduced

before model year 1997, and require compliance with the mandatory

procedures for those lines introduced in model year 1997 and subsequent

model years. The agency made similar proposals regarding the voluntary

and mandatory submission of information with respect to low theft new

lines with a majority of major parts interchangeable with those of a

high theft line.

NHTSA also proposed to remove outdated procedures from part 542.

The procedures were applicable to lines introduced before April 24,

1986, the effective date of the theft prevention standard.

Finally, in the NPRM, NHTSA noted that because of passage of the

``Anti Car Theft Act of 1992'' (ACTA), changes must be made in NHTSA's

and manufacturers' evaluation procedures for low theft lines with major

parts interchangeable with major parts of a high theft line. ACTA's

passage redefined ``passenger motor vehicle,'' for title VI purposes,

to include ``any multipurpose passenger vehicle and light-duty truck

that is rated at 6,000 pounds gross vehicle weight or less.'' (See

section 601(1) of title VI.) ACTA's passage did not necessitate changes

to part 542's regulatory text.

Public Comments and NHTSA Response

In response to the NPRM, NHTSA received comments from four parties:

The Chrysler Corporation (Chrysler); the Ford Motor Company (Ford); the

National Truck Equipment Association (NTEA) and Volkswagen of America,

Inc. (VW).

In its comments, Ford concurred with NHTSA's proposal to require

manufacturers to provide NHTSA with information and supporting analysis

on new vehicle lines, beginning with Model Year 1997. Ford stated that

it understood the NPRM as indicating that NHTSA is interested only in

manufacturers' analyses of new vehicle lines likely to be high theft

lines. Based on its understanding, Ford suggested that there was a need

to make several minor changes to the regulatory text to make it clear

that NHTSA is interested in analyses of new lines likely to be low

theft, as well as those lines likely to be high theft.

NHTSA believes that the proposal was clear regarding the obligation

for a manufacturer to conduct evaluations of each new line using the

criteria in appendix C of part 541. Under the proposal, each

manufacturer would have been required ``to evaluate each new line and

to conclude whether the new line is likely to have a theft rate

exceeding the median theft rate.'' In other words, for each line, the

manufacturer would have had to indicate whether its evaluation led it

to conclude that (a) it is likely to have such a rate or (b) it is not

likely to have such a rate. That this was the intended reading of the

proposed regulatory text was made abundantly clear in the summary

section of the NPRM preamble. There, the agency stated that

manufacturers would be required to ``provide an analysis whether the

new line is likely to be a high or low theft line.''

Nevertheless, NHTSA has no objection to making the changes

suggested by Ford. Section 542.1(c), Procedures for newly introduced

vehicle lines, now explicitly states that the manufacturers are to

follow the procedures in evaluating whether a new line is likely to

have a theft rate above or below the median theft rate.

Chrysler and VW recommended that the deadline for manufacturers

notifying NHTSA of new lines be 12 months before the introduction of

the line, instead of 18 months before the introduction, as proposed in

the NPRM. Both Chrysler and VW stated that, since the American

automobile market is very competitive, manufacturers may decide to

introduce new lines with less than 18 months' lead time. They argued

that being allowed to inform NHTSA of new car lines 12 months in

advance would provide more flexibility to the manufacturers. VW further

stated that if NHTSA amended part 542, and issued its preliminary

determinations of high or low theft sooner than the 90 days presently

provided in part 542, manufacturers could file new vehicle line

information with NHTSA as late as 10 months in advance of introduction

of the line.

Both the VW and Chrysler objections to the 18 month advance notice

requirement are apparently based on the possibility that each may wish

to introduce a new line in the U.S. with less than 18 months' notice.

In the 8 years since part 542 took effect, NHTSA has been notified of a

new line less than 18 months before the introduction model year in only

a few instances. No manufacturers, besides VW and Chrysler, objected to

the 18 month lead time requirement.

NHTSA has carefully considered Chrysler and Volkswagen's comments,

and calculated the latest date on which it can accept new line

information. For reasons explained below, NHTSA needs to issue final

determinations of high or low theft, at least six months in advance of

the manufacturer's model year. NHTSA has decided that it can accept new

line information as late as 15 months before the beginning of the

manufacturer's model year, and still issue final determinations six

months before the beginning of the model year. Thus, beginning with

model year 1997 vehicles, manufacturers are required to notify NHTSA of

new lines 15 months before the new line is introduced. NHTSA has not

shortened part 542's timeframe for NHTSA's preliminary and final

determinations since that is beyond the scope of notice of the NPRM.

NHTSA needs to issue determinations six months in advance of the

model year because under section 603(a)(3) of the Theft Act, NHTSA

must, to the maximum extent practicable, assure that likely high theft

lines are selected at least 6 months before the first applicable model

year, to notify manufacturers that they must mark the major parts of

the line. More importantly, if NHTSA issues a final high theft

determination less than six months before an upcoming model year, NHTSA

cannot require the manufacturer to mark the parts of the high theft

line during that model year. Instead, it cannot mandate parts marking

until the following model year. Requiring manufacturers to submit

information 15 months (instead of 12 months) before the model year

would lessen the likelihood of NHTSA's missing the 6 month deadline to

notify manufacturers, before the first applicable model year, of the

high theft status of a new line.

NHTSA does not believe requiring manufacturers to submit

information 15 months in advance of the model year would pose a

hardship. NHTSA does not believe that any of the information to be

reported (specified at appendix C of part 541) is detailed or complex.

The appendix C criteria are: Price; vehicle image; lines competitive

with the new line; line(s) the new line is intended to replace;

presence of any antitheft devices; and any preliminary theft data for

the line. NHTSA believes that a manufacturer planning a new line for

sale in the U.S. knows, 15 months before the model year of

introduction, fundamental information about the new line, including

that specified in appendix C, and would have no difficulty in reporting

it.

NHTSA believes further that even if, on some occasion, a

manufacturer does not make a formal decision to introduce a new line

until some time after 15 months in advance of the model year of

introduction, the manufacturer must be very actively entertaining, at

the 15 month point, the possibility of making such a decision in the

next several months. The commercial and regulatory logistics involved

in introducing a new line to the U.S. market are complex. The very

complexity of this process necessitates that, by 15 months in advance

of the model year of introduction, the manufacturers have a good idea

whether they will introduce a new line into the United States.

If, 15 months before the introduction of a new line, a manufacturer

is still undecided whether to introduce the line, it could nevertheless

comply with part 542 by sending a letter to NHTSA stating that it may

introduce a new line and providing the information specified in

appendix C of part 542. To avoid the possibility of a disclosure of its

potential plans, the manufacturer may request confidential treatment

for the letter. NHTSA has determined that future specific model plans

would presumptively be likely to result in substantial competitive harm

if disclosed to the public, before the date on which the specific model

is first offered for sale. (See 49 CFR part 512, appendix B.) If

confidential treatment has been granted, and the manufacturer decides

not to introduce the line, NHTSA will not disclose the contents of the

letter.

Finally, NHTSA decided to set the deadline for submission of

information about new lines at the 15 month point instead of at the 12

month point because 15 months is necessary not only to allow NHTSA time

to issue a final determination, but also to allow manufacturers enough

time to submit timely petitions for exemption from marking the parts of

a new line. Section 605(b) of the Theft Act specifies that petitions

for exemption must be filed ``not later than 8 months before the

commencement of production for the first model year covered by the

petition.''

The National Truck Equipment Association (NTEA) expressed concern

that NHTSA may consider some of its members (which are primarily small

final stage manufacturers of incomplete vehicles, or alterers of

vehicles) to be ``manufacturers'' for part 542 purposes, and thus

subject to the reporting requirements. These final stage manufacturers

and alterers appear to work on individual vehicles, adapting each

vehicle for a special purpose or to otherwise include features that

make each vehicle unique to the customer's needs. NTEA noted, however,

that because ACTA's definition of light-duty trucks and multipurpose

passenger vehicles is limited to vehicles weighing 6,000 pounds gross

vehicle weight rating or less, NTEA expects ``very few vehicles''

completed or altered by its members to be subject to part 542.

For the following reasons, NHTSA does not believe that final stage

manufacturers or alterers, are ``manufacturers'' for part 542 purposes.

Part 542 applies to a manufacturer that groups motor vehicle models of

the same make together and assigns names to the groups, i.e., lines, or

introduces new motor vehicle lines into commerce. Neither final stage

manufacturers nor alterers do these things.

The grouping of motor vehicle models of the same make together and

assigning names to the groups, i.e., lines, is done at an earlier stage

of manufacture in the case of both incomplete motor vehicles that are

completed by final stage manufacturers and of completed vehicles that

are modified by alterers. These circumstances are reflected in the

agency's requirements concerning vehicle identification numbers. A

vehicle identification number (VIN) is a seventeen character series of

arabic numbers and roman letters which is assigned to a motor vehicle

for identification purposes. Manufacturers must comply with Standard

No. 115; Vehicle identification number-basic requirements. S4.1 of

Standard No. 115 states:

Each vehicle manufactured in one stage shall have a VIN that is

assigned by the manufacturer. Each vehicle manufactured in more than

one stage shall have a VIN assigned by the incomplete vehicle

manufacturer. Vehicle alterers * * * shall utilize the VIN assigned

by the original manufacturer of the vehicle.

49 CFR part 565 Vehicle identification number-content requirements,

specifies the format and content for VINs. Among other VIN attributes,

the first three characters uniquely identify the manufacturer, make and

type of motor vehicle. (See Sec. 565.4(a)) Included as VIN attributes

for passenger cars, multipurpose passenger vehicles, trucks, and

incomplete vehicles, are the line and series of the vehicle. (See

Sec. 565.4(b), and table I) A manufacturer must, when it assigns a VIN

to a motor vehicle, determine the model or ``line,'' and series of the

vehicle. For these reasons, when it creates a VIN, a manufacturer is in

effect, determining the ``line'' of vehicles that it introduces into

commerce.

The manufacturing functions of the NTEA members are performed after

the VINs are assigned. As noted above, they either do final stage

manufacturing of incomplete vehicles or alter completed vehicles.

Standard No. 115 prohibits final stage manufacturers or alterers from

making changes to the original VIN assigned to the vehicle. The final

stage manufacturers or alterers cannot change any VIN attribute,

including the VIN attribute that describes the ``line'' of the vehicle.

Since the final stage manufacturers or alterers, in effect, cannot

assign the ``name'' to a ``group'' of vehicles, i.e., the ``line'', the

final stage manufacturers or alterers are not ``manufacturers'' for

purposes of part 542.

Finally, since there were no objections to NHTSA's proposal to

remove outdated references to vehicle lines introduced before April 24,

1986, the final rule adopts those amendments.

Regulatory Impacts

A. Costs and Other Impacts

This notice was not reviewed under Executive Order 12866

(Regulatory Planning and Review). NHTSA has analyzed the impact of this

rulemaking action and determined that it is not ``significant'' within

the meaning of the Department of Transportation's regulatory policies

and procedures. The agency estimates this final rule will impose

minimal reporting costs on manufacturers of passenger motor vehicles.

The agency estimates that the average annual cost per manufacturer per

year to report on new vehicle lines is $2,000. The agency estimates

that the cost to all affected manufacturers totals $56,000 per year.

The Supplementary Information section of this notice discussed the

``Anti Car Theft Act of 1992's'' redefinition of ``passenger motor

vehicle'' to include ``any multipurpose passenger vehicle and light-

duty truck that is rated at 6,000 pounds gross vehicle weight or

less.'' Thus, manufacturers may now have to follow part 542 procedures

for certain multipurpose passenger vehicles and light-duty trucks. The

burden on these manufacturers will be minimal because relatively few

new lines of light-duty trucks and multipurpose passenger vehicles are

introduced in any year.

The additional burden on manufacturers with respect to passenger

cars as a result of reporting becoming mandatory will also be minimal.

Most manufacturers are already providing new car line information on a

voluntary basis.

For these reasons, NHTSA believes that the additional costs will be

so minimal as not to warrant preparation of a full regulatory

evaluation. Since there will be so little additional reporting cost,

NHTSA does not believe that this rule will affect the impacts described

in the regulatory evaluation (pursuant to E.O. 12291 and the DOT's

regulatory policies) prepared for the proposal published May 10, 1985

(See 50 FR 19728, at 19741) setting forth the substantive requirements

of part 541. Interested persons may wish to examine that regulatory

evaluation. Copies of that evaluation have been placed in Docket No.

T84-01; Notice 4, and may be obtained by writing to: National Highway

Traffic Safety Administration, Docket Section, Room 5109, 400 Seventh

Street SW., Washington, DC 20590.

B. Small Business Impacts

The agency has also considered the effects of this rulemaking

action under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). I

certify that this final rule will not have a significant economic

impact on a substantial number of small entities. The rationale for

this certification is that, as noted above, the reporting costs will be

minimal. Further, almost none of the manufacturers of passenger motor

vehicles that will be subject to this rule is considered to be a small

business, a small non-profit organization, or a small governmental

entity as defined by the SBA.

C. Environmental Impacts

In accordance with the National Environmental Policy Act of 1969,

the agency has considered the environmental impacts of this rule and

determined that, the final rule will not have a significant impact on

the quality of the human environment.

D. Paperwork Reduction Act

The procedures in this rule for manufacturers to submit new vehicle

line information to NHTSA are considered to be information collection

requirements, as that term is defined by the Office of Management and

Budget (OMB) in 5 CFR part 1320. The information collection

requirements for part 542 have been submitted to and approved by the

OMB pursuant to the requirements of the Paperwork Reduction Act (44

U.S.C. 3501 et seq.) This collection of information has been assigned

OMB Control No. 2127-0539 (``Procedures for selecting lines to be

covered by the theft prevention standard'') and has been approved for

use through August 31, 1995.

E. Federalism

This action has been analyzed in accordance with the principles and

criteria contained in Executive Order 12612, and it has been determined

that the rule does not have sufficient federalism implications to

warrant the preparation of a Federalism assessment.

F. Civil Justice Reform

This final rule does not have any retroactive effect, and it does

not preempt any State law. Section 613 of the Motor Vehicle Information

and Cost Savings Act (15 U.S.C. 2020), provides that judicial review of

this rule may be obtained pursuant to section 504 of the Cost Savings

Act, (15 U.S.C. 2004). The Cost Savings Act does not require submission

of a petition for reconsideration or other administrative proceedings

before parties may file suit in court.

List of Subjects in 49 CFR Part 542

Administrative practice and procedure, National Highway Traffic

Safety Administration, reporting requirements.

In consideration of the foregoing, 49 CFR part 542 is revised to

read as follows:

PART 542--PROCEDURES FOR SELECTING LINES TO BE COVERED BY THE THEFT

PREVENTION STANDARD

Sec.

542.1 Procedures for selecting new lines that are likely to have

high or low theft rates.

542.2 Procedures for selecting low theft new lines with a majority

of major parts interchangeable with those of a high theft line.

Authority: 15 U.S.C. 2021, 2022, and 2023; delegation of

authority at 49 CFR 1.50.

Sec. 542.1 Procedures for selecting new lines that are likely to have

high or low theft rates.

(a) Scope. This section sets forth the procedures for motor vehicle

manufacturers and NHTSA to follow in the determination of whether any

new vehicle line is likely to have a theft rate above or below the

median theft rate.

(b) Application. These procedures apply to each manufacturer that

plans to introduce a new line into commerce in the United States on or

after April 24, 1986, and to each of those new lines.

(c) Procedures. (1)(i) For each new line introduced before the 1997

model year, each manufacturer uses the criteria in appendix C of part

541 of this chapter to evaluate each new line and to conclude whether

the new line is likely to have a theft rate above or below the median

theft rate established for calendar years 1990 and 1991.

(ii) For each new line to be introduced for the 1997 or subsequent

model years, each manufacturer shall use the criteria in appendix C of

part 541 of this chapter to evaluate each new line and to conclude

whether the new line is likely to have a theft rate above or below the

median theft rate.

(2)(i) For each new line to be introduced before the 1997 model

year, the manufacturer submits its evaluations and conclusions made

under paragraph (c)(1)(i) of this section, together with the underlying

factual information, to NHTSA not less than 18 months before the date

of introduction. The manufacturer may request a meeting with the agency

to further explain the bases for its evaluations and conclusions.

(ii) For each new line to be introduced for the 1997 or subsequent

model years, the manufacturer shall submit its evaluations and

conclusions made under paragraph (c)(1)(ii) of this section, together

with the underlying factual information, to NHTSA not less than 15

months before the date of introduction. The manufacturer may request a

meeting with the agency during this period to further explain the bases

for its evaluations and conclusions.

(3) Within 90 days after its receipt of the manufacturer's

submission under paragraph (c)(2) of this section, the agency

independently evaluates the new line using the criteria in appendix C

of part 541 of this chapter and, on a preliminary basis, determines

whether the new line should or should not be subject to Sec. 541.2 of

this chapter. NHTSA informs the manufacturer by letter of the agency's

evaluations and determinations, together with the factual information

considered by the agency in making them.

(4) The manufacturer may request the agency to reconsider any of

its preliminary determinations made under paragraph (c)(3) of this

section. The manufacturer shall submit its request to the agency within

30 days of its receipt of the letter under paragraph (c)(3) of this

section. The request shall include the facts and arguments underlying

the manufacturer's objections to the agency's preliminary

determinations. During this 30-day period, the manufacturer may also

request a meeting with the agency to discuss those objections.

(5) Each of the agency's preliminary determinations under paragraph

(c)(3) of this section shall become final 45 days after the agency

sends the letter specified in paragraph (c)(3) of this section unless a

request for reconsideration has been received in accordance with

paragraph (c)(4) of this section. If such a request has been received,

the agency makes its final determinations within 60 days of its receipt

of the request. NHTSA informs the manufacturer by letter of those

determinations and its response to the request for reconsideration.

Sec. 542.2 Procedures for selecting low theft new lines with a

majority of major parts interchangeable with those of a high theft

line.

(a) Scope. This section sets forth the procedures for motor vehicle

manufacturers and NHTSA to follow in the determination of whether any

new lines that will be likely to have a low theft rate have major parts

interchangeable with a majority of the covered major parts of a line

having or likely to have a high theft rate.

(b) Application. These procedures apply to:

(1) Each manufacturer that produces--

(i) At least one passenger motor vehicle line that has been or will

be introduced into commerce in the United States and that has been

listed in appendix A of part 541 of this chapter or that has been

identified by the manufacturer or preliminarily or finally determined

by NHTSA to be a high-theft line under Sec. 542.1, and

(ii) At least one passenger motor vehicle line that will be

introduced into commerce in the United States on or after April 24,

1986 and that the manufacturer identifies as likely to have a theft

rate below the median theft rate; and

(2) Each of those likely submedian theft rate lines.

(c) Procedures. (1)(i) For each new line that is to be introduced

before the 1997 model year and that a manufacturer identifies under

appendix C of part 541 of this chapter as likely to have a theft rate

below the median rate, the manufacturer identifies how many and which

of the major parts of that line will be interchangeable with the

covered major parts of any other of its lines that has been listed in

appendix A of part 541 of this chapter or identified by the

manufacturer or preliminarily or finally determined by the agency to be

a high theft line under Sec. 542.1.

(ii) For each new line that is to be introduced in the 1997 or

subsequent model years and that a manufacturer identifies under

appendix C of part 541 of this chapter as likely to have a theft rate

below the median rate, the manufacturer shall identify how many and

which of the major parts of that line will be interchangeable with the

covered major parts of any other of its lines that has been listed in

appendix A of part 541 of this chapter or identified by the

manufacturer or preliminarily or finally determined by the agency to be

a high-theft line under Sec. 542.1.

(2)(i) If the manufacturer concludes that a new line that is to be

introduced before the 1997 model year has a likely submedian theft rate

and will have major parts that are interchangeable with a majority of

the covered major parts of a high theft line, the manufacturer

determines whether all the vehicles of those lines with likely

submedian theft rates and interchangeable parts will account for more

than 90 percent of the total annual production of all of the

manufacturer's lines with those interchangeable parts.

(ii) If the manufacturer concludes that a new line that is to be

introduced for the 1997 or subsequent model years has a likely

submedian theft rate and will have major parts that are interchangeable

with a majority of the covered major parts of a high theft line, the

manufacturer shall determine whether all the vehicles of those lines

with likely submedian theft rates and interchangeable parts will

account for more than 90 percent of the total annual production of all

of the manufacturer's lines with those interchangeable parts.

(3)(i) For new lines to be introduced before the 1997 model year,

the manufacturer submits its evaluations and identifications made under

paragraphs (c)(1)(i) and (2)(i) of this section, together with the

underlying factual information, to NHTSA not less than 18 months before

the date of introduction. During this period, the manufacturer may

request a meeting with the agency to further explain the bases for its

evaluations and conclusions.

(ii) For new lines to be introduced for the 1997 and subsequent

model years, the manufacturer shall submit its evaluations and

conclusions made under paragraphs (c)(1)(ii) and (2)(ii) of this

section, together with the underlying factual information, to NHTSA not

less than 15 months before the date of introduction. During this

period, the manufacturer may request a meeting with the agency to

further explain the bases for its evaluations and conclusions.

(4) Within 90 days after its receipt of the manufacturer's

submission under paragraph (c)(3) of this section, the agency considers

that submission, if any, and independently makes, on a preliminary

basis, the determinations of those lines with likely submedian theft

rates which should or should not be subject to Sec. 541.5 of this

chapter. NHTSA informs the manufacturer by letter of the agency's

preliminary determinations, together with the factual information

considered by the agency in making them.

(5) The manufacturer may request the agency to reconsider any of

its preliminary determinations made under paragraph (c)(4) of this

section. The manufacturer must submit its request to the agency within

30 days of its receipt of the letter under paragraph (c)(4) of this

section informing it of the agency's evaluations and preliminary

determinations. The request must include the facts and arguments

underlying the manufacturer's objections to the agency's preliminary

determinations. During this 30-day period, the manufacturer may also

request a meeting with the agency to discuss those objections.

(6) Each of the agency's preliminary determinations made under

paragraph (c)(4) of this section becomes final 45 days after the agency

sends the letter specified in that paragraph unless a request for

reconsideration has been received in accordance with paragraph (c)(5)

of this section. If such a request has been received, the agency makes

its final determinations within 60 days of its receipt of the request.

NHTSA informs the manufacturer by letter of those determinations and

its response to the request for reconsideration.

Issued on: April 21, 1994.

Christopher A. Hart,

Deputy Administrator.

[FR Doc. 94-10040 Filed 4-25-94; 8:45 am]

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