Autokraft Ltd; Receipt of Application for Renewal of Temporary Exemption From Motor Vehicle Safety Standard No. 208

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. 92-50; Notice 3]

Autokraft Ltd; Receipt of Application for Renewal of Temporary

Exemption From Motor Vehicle Safety Standard No. 208

Autokraft Limited of Weybridge, Surrey, England, has applied for a

renewal of NHTSA Exemption No. 92-6, exempting its AC MkIV until

January 1, 1995, from compliance with paragraph S4.1.4 of Federal Motor

Vehicle Safety Standard No. 208 Occupant Crash Protection. The basis of

the application is that compliance would cause substantial economic

hardship to a manufacturer that has tried to comply with the standard

in good faith.

Notice of receipt of the application is published in accordance

with agency regulations on the subject (49 CFR Part 555) and does not

represent any judgment of the agency on the merits of the application.

Autokraft was granted NHTSA Exemption No. 92-6 on December 21, 1992

(57 FR 60563). The reader is referred to that notice for further

information about the company and its initial compliance efforts. The

exemption from S4.1.4 of Standard No. 208 will expire on January 1,

1995. Because the application for renewal of the exemption was filed

``not later than 60 days before the termination date'' (in this

instance, October 27, 1994), the termination date is stayed until the

Administrator has acted upon the application (49 CFR 555.8(e)).

The applicant seeks a further two-year exemption for its AC Mark IV

passenger car, of which it has produced 15 in the year preceding the

filing of its application. Although the company had projected sales of

150 units in the United States in the years 1992-94, in fact, there

have been only seven sales. According to its application, Autokraft

``has continued the process of researching and developing the

installation of a driver and passenger side airbag system'' but ``we

have been unable to achieve the fitting of a suitable system mainly due

to the chassis design being based upon a classic 1960's design and not

easily adaptable to suit air bag installation.'' The delay is also due

to ``the project having insufficient funds generated by sales and

available for completing the development.''

Autokraft has concluded that the adaptation of an existing

automatic restraint system is the only viable alternative. Its

continuation of compliance efforts has given it ``significant knowledge

into the areas of vehicle modification, computer simulation, design

rough road testing and low, medium and high speed crash testing.''

Complicating its efforts is the need to use a different engine and

transmission after October 1, 1995, and the possible effect that this

will have upon compliance. It estimates the cost to achieve conformance

would be $550,000, achievable by spreading these costs during the

exemption period. Autokraft reports losses totalling 3,308,243 Pounds

Sterling (approximately $5,624,000 at a rate of $1.70/1) for the years

1992-93, and projects a further loss for 1994.

The company argues that an exemption would be in the public

interest and consistent with the objectives of motor vehicle safety

because it meets all applicable EEC standards, and all U.S. Federal

motor vehicle safety standards with the exception of the automatic

restraint requirements of Standard No. 208 (its 3-point driver and

passenger restraints meet the previous requirements). The production of

the car makes available to the public ``at a realistic price'' a

replica of the original AC Cobra vehicle produced from the original AC

Cobra tooling, manufactured during the 1960's predominantly for the

American market. Autokraft is in the process of finalizing a U.S.

distribution agreement and will show the car at the North American

International Auto Show in Detroit in January 1995.

The applicant believes that it will comply with Standard No. 208

six months before January 1, 1997, when the 2-year extension of its

exemption that it has requested would expire.

Interested persons are invited to submit comments on the

application described above. Comments should refer to Docket No. 92-50;

Notice 3, and be submitted to: Docket Section, National Highway Traffic

Safety Administration, room 5109, 400 Seventh St. 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 at the above address both before and

after that date. To the extent possible, comments filed after the

closing date will also be considered. Notice of final action on the

petition will be published in the Federal Register pursuant to the

authority indicated below.

Comment closing date: January 18, 1995.

Authority: 49 U.S.C. 30113; delegations of authority at 49 CFR

1.50 and 501.8.

Issued on: December 13, 1994.

Barry Felrice,

Associate Administrator for Rulemaking.

[FR Doc. 94-31081 Filed 12-16-94; 8:45 am]

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