General Motors Pickup Truck Defect Investigation

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. EA92-041; Notice 4]

General Motors Pickup Truck Defect Investigation

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

ACTION: Notice of closing of investigation.

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SUMMARY: The purpose of this Notice is to announce that Engineering

Analysis (EA) 92-041 has been closed in accordance with the settlement

agreement between the United States Department of Transportation and

General Motors Corporation, dated March 7, 1995 (Attachment A).

Secretary of Transportation Federico Pena announced the parties'

initial agreement to settle the matter and explained the basis for this

Departmental decision in a statement issued December 2, 1994, which is

available as an attachment to the March 9, 1995 memorandum to the

public file for EA92-041 announcing the closing of that investigation.

For procedural reasons, the October 17, 1994 initial decision that the

C/K pickup trucks subject to EA92-041 contain a defect related to motor

vehicle safety is vacated.

FOR FURTHER INFORMATION CONTACT: Ellen Berlin, Director, Office of

Public and Consumer Affairs, NHTSA, 400 Seventh Street, SW.,

Washington, DC 20590; (202) 366-9550.

Authority: 49 U.S.C. 30118; delegations of authority at 49 CFR

1.50(a) and 501.8(g).

Issued on: March 9, 1995.

William A. Boehly,

Associate Administrator for Safety Assurance.

Attachment A--Settlement Agreement Between the United States

Department of Transportation and General Motors Corporation

March 7, 1995.

Settlement Agreement

Whereas, the National Highway Traffic Safety Administration

(NHTSA), an agency of the United States Department of Transportation

(DOT), conducted an investigation (EA92-041) into an alleged defect

related to motor vehicle safety of model year 1970-1991 full-sized

General Motors Corporation (GM) pickup trucks and cab-chassis equipped

with fuel tanks mounted outboard of the frame rails (C/K pickup

trucks); and

Whereas, on October 17, 1994, Secretary of Transportation Federico

Pena announced his initial decision that the C/K pickup trucks contain

a defect related to motor vehicle safety; and

Whereas, no final decision had been made by the Secretary of

Transportation as to whether the C/K pickup trucks contain a defect

related to motor vehicle safety; and

Whereas, DOT and GM each determined that the settlement of the

above-referenced investigation, as memorialized in a letter agreement

dated December 2, 1994, is in the public interest and best furthers

their mutual interest in motor vehicle safety; and

Whereas, DOT and GM agree that this settlement will avoid time-

consuming, costly litigation of a complex matter that raises difficult

factual and legal issues; and instead offers an opportunity for

meaningful cooperation between government and industry to significantly

enhance the safety of the driving public;

Now therefore, the Department of Transportation and General Motors

Corporation hereby agree to the following settlement of this matter:

I. Terms and Conditions

A. Enhance Federal Motor Vehicle Safety Standard (FMVSS) No. 301

1. GM and DOT will support enhancement of the current standard

regarding fuel system integrity, FMVSS 301, through a public rulemaking

process.

a. GM will support the development by DOT, on an expedited basis,

of a revised standard that best simulates the real-world crash

conditions that result in post-crash fires.

b. GM agrees that the current FMVSS 301 standard should be enhanced

to meet today's high pressure fuel system designs and in today's

traffic environment to provide higher levels of occupant protection

from post-crash fires.

c. It is envisioned that the revised standard would employ a more

representative impacting device than the current standard, would

involve higher test speeds (approximately 40 m.p.h.) than the current

standard, and would include separate tests of the integrity of fuel

system components in addition to full vehicle tests at different impact

locations.

2. GM agrees that its support will take the following form:

a. GM will, to the extent legally permissible, take an active part

in the rulemaking process.

b. GM will undertake and/or finance research, including research

described in the other provisions of this agreement, which will further

the development of an enhanced standard.

c. GM will submit to NHTSA's rulemaking docket all research

undertaken or financed in accordance with the other provisions of this

agreement that support the development of an enhanced standard.

3. GM and DOT will work together to improve other Federal motor

vehicle safety standards.

4. None of the provisions in this section A. shall operate to give

GM [[Page 13753]] rights it does not otherwise have under the

Administrative Procedure Act or under any other provision of law, nor

deny or abridge such rights to any other person.

B. Fire Safety Research

1. GM will finance motor vehicle fire safety research, or otherwise

contract to conduct such research. GM agrees to expend at least

$5,000,000 within the two-year period following the effective date of

this agreement for this activity. GM will expend at least an additional

$5,000,000 during the subsequent three years for this activity unless

both NHTSA and GM agree that this activity should no longer be funded.

Research to be conducted shall include, among other possible projects:

(i) Detailed accident analysis and development of new vehicle crash and

component level testing procedures; (ii) testing of materials that

would reduce the risk of fire; and (iii) development of techniques for

preventing, containing and extinguishing vehicle fires. The research

projects shall be undertaken in accordance with paragraph B.2., below.

2. Within 30 days of the effective date of this agreement, GM and

NHTSA representatives will meet, at which time GM will provide NHTSA

with a proposal identifying the facilities to be used and the research

projects to be undertaken during the initial two-year period of

activity. The NHTSA representatives will promptly review GM's proposal

and provide recommendations and comments on it. The NHTSA and GM

representatives will continue to meet and confer as is necessary to

reach agreement on the research projects. Thereafter, the NHTSA and GM

representatives will meet periodically to review the status and

progress of the projects and to consider any proposed modifications to

those projects.

3. Six months prior to the end of the initial two-year period of

activity, GM will submit to NHTSA a description of the projects

proposed to be funded during the subsequent three-year period. The

parties shall then follow the procedures set forth in paragraph B. 2,

above, in reaching agreement as to the projects for the subsequent

period and in monitoring such projects.

4. GM will provide NHTSA with such reports as may reasonably be

required by NHTSA to inform NHTSA of the status, progress, and results

of fire safety research projects conducted under this agreement.

5. All research undertaken pursuant to this provision shall be

submitted to NHTSA and shall be made publicly available. Neither GM nor

any of its contractors or grantees shall be entitled to receive or

retain any proprietary interest in such research.

6. DOT will provide, in its discretion and consistent with

applicable law, available resources to support this project. Such

resources may include, but are not limited to, project reviews,

research on post-crash fire prevention, research related to the FMVSS

No. 301 rulemaking, public information, and other similar activities.

C. Public Education

1. GM agrees to expend at least $11,855,000 within the five-year

period following the effective date of this agreement in the areas of

public education, as generally described herein. GM will expend

approximately one-fifth of this amount each year over the five-year

period. GM, with NHTSA's concurrence, may alter the rate of spending if

doing so would further the goals of this section.

2. Funds shall be spent in the following areas: (i) Support for

enactment, upgrading and/or retention of state legislation for the

enhancement of driver and vehicle safety including, for example,

administrative license revocation laws and blood alcohol content laws

(e.g., .08 BAC laws, zero tolerance laws for youth), and for the

primary enforcement of seat belt laws; (ii) public information and

education materials (including public service announcements) on driver

and vehicle safety (e.g., anti-drinking and driving messages,

encouragement of seat belt usage), particularly in support of

legislative and/or enforcement campaigns and/or to publicize new or

existing laws, and development and distribution of special safety

awareness materials for targeted hard-to-reach populations; and (iii)

support of the Network of Employers for Traffic Safety (NETS) program

and the Techniques for Effective Alcohol Management (TEAM) program.

3. All public information and education materials prepared by, or

under contract to, GM shall be submitted to NHTSA for its comments and

recommendations prior to their issuance. GM will provide NHTSA with a

copy of all such finalized materials.

4. Within 30 days of the effective date of this agreement, GM and

NHTSA representatives will meet, at which time GM will provide NHTSA

with a proposal for the projects and activities to be undertaken by GM

during the first year for purposes of satisfying the requirements of

this section. The NHTSA representatives will promptly review GM's

proposal and provide recommendations and comments on it. The NHTSA and

GM representatives will continue to meet and confer as is necessary to

reach agreement on the projects or activities to be undertaken or

financed. Thereafter, the NHTSA and GM representatives will meet

periodically to review the status and progress of such projects or

activities and to consider any proposed modifications to them.

5. Sixty days prior to the end of the first year period of

activity, and thereafter on an annual basis or on such other basis as

GM and NHTSA mutually shall determine, GM shall submit to NHTSA a

description of the projects and activities to be undertaken during the

following year or other agreed-upon time period. The parties shall then

follow the procedures set forth in paragraph C.4 above in reaching

agreement as to the projects and activities for the subsequent period

and in monitoring such projects and activities.

6. GM will provide NHTSA with such reports as may reasonably be

required by NHTSA to inform NHTSA of the status, progress, and results

of the projects or activities conducted pursuant to this section.

7. GM's commitment to expend these funds is dependent upon DOT's

direct or indirect support, through expenditures, grants to states and/

or other third parties, or otherwise, for public education programs and

activities at approximately equivalent levels. If DOT does not provide

such support, GM and DOT will use their best efforts to discuss, in

good faith, whether and how to redirect GM's commitment of expenditures

to other alternative programs furthering motor vehicle safety to which

DOT is committing funds at equivalent levels.

D. Crash Test Dummy Research and Development

1. GM agrees to expend at least $6,500,000 within the five-year

period following the effective date of this agreement in the area of

research into and development of crash test dummies. GM will expend

approximately one-fifth of this amount each year of the five-year

period. GM, with NHTSA's concurrence, may alter the rate of spending if

doing so would further the goals of this section.

2. Within 30 days of the effective date of this agreement, GM and

NHTSA representatives will meet, at which time GM will provide NHTSA

with a proposal describing the projects and activities to be undertaken

by GM during the first year for purposes of satisfying the requirements

of this section. The NHTSA representatives [[Page 13754]] will promptly

review GM's proposal and provide recommendations and comments on it.

The NHTSA and GM representatives will continue to meet and confer as is

necessary to reach agreement on the projects or activities to be

undertaken. Thereafter, the NHTSA and GM representatives will meet

periodically to review the status and progress of the projects or

activities and to consider any proposed modifications to those

projects.

3. Sixty days prior to the end of the first year period of

activity, and thereafter on an annual basis or on such other basis as

GM and NHTSA mutually shall determine, GM shall submit to NHTSA a

description of the projects and activities to be undertaken during the

following year or other agreed-upon time period. The parties shall then

follow the procedures set forth in paragraph D.2 above in reaching

agreement as to the projects and activities for the subsequent period

and in monitoring such projects and activities.

4. GM will provide NHTSA with such reports as may reasonably be

required by NHTSA to inform NHTSA of the status, progress, and results

of crash dummy research and development projects conducted pursuant to

this agreement.

5. All research undertaken pursuant to this provision shall be

submitted to NHTSA and shall be made publicly available. Neither GM nor

any of its contractors or grantees shall be entitled to receive or

retain any proprietary interest in such research.

6. GM's commitment to expend these funds is dependent upon DOT

supporting crash dummy research at approximately equivalent levels.

Such support may include, but is not limited to grants and contracts,

as well as direct and indirect expenditures, for biomechanical testing,

analytical modeling, dummy component development, and accident data

analyses. If DOT does not provide such support, GM and DOT will use

their best efforts to discuss, in good faith, whether and how to

redirect GM's commitment to other alternative programs furthering motor

vehicle safety to which DOT is committing funds at equivalent levels.

E. Burn & Trauma Research

1. GM agrees to expend at least $5,000,000 within the five-year

period following the effective date of this agreement to further

research relating to the causes and treatment of burns and trauma. GM

shall accomplish this task by means of donations and/or grants to one

or more institutions with experience in burn and/or trauma research.

Institutions selected as recipients of these funds shall use the funds

for specific research projects designed to advance medical science's

understanding and treatment of burn or trauma injuries, particularly

those arising out of motor vehicle accidents. GM will donate

approximately $1,000,000 each year over the five-year period to agreed-

upon projects. GM, with NHTSA's concurrence, may alter the rate of

spending if doing so would further the goals of this section.

2. Within 60 days of the effective date of this agreement, GM and

NHTSA representatives will meet, at which time GM will provide NHTSA

with a proposal identifying the institutions to be selected and the

projects to be undertaken during the first year for purposes of

satisfying the requirements of this section. The NHTSA representatives

will promptly review GM's proposal and provide recommendations and

comments on it. The NHTSA and GM representatives will continue to meet

and confer as is necessary to reach agreement on the institutions to be

selected and the projects to be undertaken. Thereafter, the NHTSA and

GM representatives will meet periodically to review the status and

progress of the projects and to consider any proposed modifications to

those projects.

3. Sixty days prior to the end of the first year period of

activity, and thereafter on an annual basis or on such other basis as

GM and NHTSA mutually shall determine, GM shall submit to NHTSA a

description of the projects and activities to be undertaken during the

following year or other agreed-upon time period. The parties shall then

follow the procedures set forth in paragraph E.2 above in reaching

agreement as to the projects for the subsequent period and in

monitoring such projects.

4. The terms of any donation or grant shall require appropriate

recordkeeping and reporting obligations, including progress reports, by

the recipient institutions sufficient to assure NHTSA and GM that the

funds are being prudently spent for their intended purposes, and that

the objectives of the research program are being realized.

5. GM shall notify NHTSA of each donation or grant made by it and

shall provide NHTSA with an annual summary of its donations under this

provision of the agreement.

6. All research undertaken pursuant to this provision shall be

submitted to NHTSA and shall be made publicly available. Neither GM nor

any of its grantees shall be entitled to receive or retain any

proprietary interest in such research.

F. Computer Modeling

1. GM agrees to expend $2,000,000 within the first year following

the effective date of this agreement in the area of computer-based

design modeling of accident-related injuries arising from fire, trauma,

and exposure to toxic substances. GM agrees to expend an additional

$3,000,000 for these purposes over the subsequent three-year period.

The parties expect that this activity will assist in the development of

more effective crash test dummies.

2. Within 30 days of the effective date of this agreement, GM and

NHTSA representatives will meet, at which time GM will provide NHTSA

with a proposal describing the projects and activities to be undertaken

by GM during the initial one-year period of activity for purposes of

satisfying the requirements of this section. The NHTSA representatives

will promptly review GM's proposal and provide recommendations and

comments on it. The NHTSA and GM representatives will continue to meet

and confer as is necessary to reach agreement on the projects or

activities to be undertaken. Thereafter, the NHTSA and GM

representatives will meet periodically to review the status and

progress of the projects or activities and to consider any proposed

modifications to those projects or activities.

3. Three months prior to the end of the initial one-year period of

activity, GM will submit to NHTSA a description of the projects and

activities proposed to be funded during the subsequent three-year

period. The parties shall then follow the procedures set forth in

paragraph F.2, above, in reaching agreement as to the projects or

activities for the subsequent period and in monitoring such projects or

activities.

4. GM will provide NHTSA with such progress reports as may

reasonably be required by NHTSA to inform NHTSA of the status,

progress, and results of such computer-based design modeling projects

conducted under this agreement.

5. All research undertaken pursuant to this provision shall be

submitted to NHTSA and shall be made publicly available. Neither GM nor

any of its contractors or grantees shall be entitled to receive or

retain any proprietary interest in such research.

6. GM's commitment to expend the $3,000,000 for the latter three-

year period is dependent on DOT, in good faith, supporting these or

similar activities during the latter three-year period. DOT support may

take the form [[Page 13755]] of, but is not limited to, grants and

contracts, as well as direct and indirect expenditures, for computer

modeling for side impact and frontal impact dummies. If DOT does not

provide such support, GM and DOT will use their best efforts to

discuss, in good faith, whether and how to redirect GM's commitment to

other alternative programs furthering motor vehicle safety to which DOT

is committing funds at equivalent levels.

G. Impairment Research

1. GM agrees to expend at least $5,000,000 within the five-year

period following the effective date of this agreement for research into

the areas of driver impairment, including but not limited to (i) the

effects of aging, (ii) the effects of alcohol, and (iii) the effects of

the use of prescription and other lawful drugs. GM will expend

approximately one-fifth of this amount each year of the five-year

period. GM, with NHTSA's concurrence, may alter the rate of spending if

doing so would further the goals of this section.

2. Within 30 days of the effective date of this agreement, GM and

NHTSA representatives will meet, at which time GM will provide NHTSA

with a proposal describing the projects and activities to be undertaken

by GM during the first year for purposes of satisfying the requirements

of this section. The NHTSA representatives will promptly review GM's

proposal and provide recommendations and comments on it. The NHTSA and

GM representatives will continue to meet and confer as is necessary to

reach agreement on the projects or activities to be undertaken.

Thereafter, the NHTSA and GM representatives will meet periodically to

review the status and progress of the projects or activities and to

consider any proposed modifications to those projects or activities.

3. Sixty days prior to the end of the first year period of

activity, and thereafter on an annual basis or on such other basis as

GM and NHTSA mutually shall determine, GM shall submit to NHTSA a

description of the projects and activities to be undertaken during the

following year or other agreed-upon time period. The parties shall then

follow the procedures set forth in paragraph G.2 above in reaching

agreement as to the projects or activities for the subsequent period

and in monitoring such projects or activities.

4. GM will provide NHTSA with such reports as may reasonably be

required by NHTSA to inform NHTSA of the status, progress, and results

of driver impairment research projects conducted under this agreement.

5. All research undertaken pursuant to this provision shall be

submitted to NHTSA and shall be made publicly available. Neither GM nor

any of its contractors or grantees shall be entitled to receive or

retain any proprietary interest in such research.

6. GM's commitment to expend these funds is dependent upon DOT

supporting driver impairment research at approximately equivalent

levels. Such support may include, but is not limited to, grants and

contracts, as well as direct and indirect expenditures, for research,

and other activities which further the development of facilities, tools

or other means to support such research. If DOT does not provide such

support, GM and DOT will use their best efforts to discuss, in good

faith, whether and how to redirect GM's commitment to other alternative

programs furthering motor vehicle safety to which DOT is committing

funds at equivalent levels.

H. Child Safety Seats

1. GM agrees to donate to one or more qualified organizations at

least $4,000,000 for the purchase and distribution of child safety

seats during the first year following the effective date of this

settlement agreement. GM shall donate such funds in the approximate

amount of $1,000,000 during each quarter of that year. GM also agrees

to donate at least $4,000,000 within the subsequent four years to one

or more qualified organizations for the purchase and distribution of

additional child safety seats.

2. DOT shall identify, on an ongoing basis so as to facilitate

timely GM donations, qualified organizations which DOT in its sole

discretion deems appropriate to receive donations from GM for the

purchase and distribution of child safety seats. GM, in its sole

discretion, shall select from the list of qualified organizations

provided by DOT, the organization(s) to which it will donate funds, and

shall decide the exact amount of funds that each such organization will

receive.

3. In order to be identified by DOT as a qualified organization, an

organization shall certify to DOT in writing that it shall: (i) Work,

through its state or local affiliates, with agencies such as children's

hospitals and health agencies to identify families who could not

otherwise afford seats or who have special needs; (ii) have an existing

loaner or give-away child safety seat program or have staff trained in

child passenger safety issues; (iii) distribute the seats to low-income

families and/or families with special needs across a broad geographical

area throughout the United States; (iv) comply with NHTSA guidelines

with respect to the approximate mix of child safety seats (e.g.,

infant, toddler, booster, special needs); (v) distribute all of the

seats purchased with the funds provided by GM to the local agencies

within 120 days of the receipt of the funds; (vi) educate recipients of

the seats as to methods of proper installation and use; (vii) not use

more than 10 percent of the funds provided by GM for administrative

expenses related to distribution of the seats; (viii) add the GM-

provided funds to the total of its existing funds spent on the

distribution of child safety seats to low-income families and not

divert any funds currently budgeted to such activities to other

activities; (ix) allow the activities conducted pursuant to this

provision to be audited by such third party as selected by DOT; (x)

acknowledge and agree that such commitments and promises shall be

enforceable; and (xi) acknowledge and agree that GM does not assume or

bear any responsibility for the organization's commitments, the

selection of the safety seats actually purchased or distributed, or the

education of recipients of the seats as to proper use.

4. GM's commitment to donate the second $4,000,000 of funds during

the subsequent four-year period is dependent upon DOT's expenditure of

funds for the development and support of child safety seat loaner and

give-away programs during that period. If DOT makes such expenditures,

GM shall donate funds in accordance with this section at equivalent

levels as DOT until such time as GM's total $8,000,000 commitment is

fulfilled. If DOT does not make such expenditures, DOT and GM will use

their best efforts to discuss, in good faith, whether and how to

redirect GM's commitment to other alternative programs furthering motor

vehicle safety to which DOT is committing funds at equivalent levels.

Costs and expenses attributable to DOT's efforts in identifying

qualified organizations shall not count as part of DOT's expenditure of

funds for purposes of this section.

I. Dismissal of Lawsuit

Within five days after the execution of this final settlement

agreement, GM will dismiss General Motors Corporation v. Pena, C.A. No.

94-75668 E.D. Mich. (filed Nov. 17, 1994) by filing a notice of

dismissal in the form attached as Exhibit A.

J. Pending Investigation

1. Within five days after the execution of this final settlement

agreement, DOT [[Page 13756]] will close its investigation into whether

the GM C/K pickup trucks contain a defect related to motor vehicle

safety (EA 92-041). DOT will not, in connection with that

investigation, seek to have GM, either voluntarily or involuntarily,

recall or take other field action with respect to the C/K pickup

trucks.

2. The initial decision of October 17, 1994, was not a final

decision or final finding of a defect and was subject to further review

by DOT. DOT will not reach a final decision in this matter as to

whether the GM C/K pickup trucks contain a defect related to motor

vehicle safety. For procedural reasons, the initial decision will be

vacated within five days after the execution of this final settlement

agreement. Within five days after the execution of this agreement, DOT

will publish in the Federal Register and place in the public file for

EA92-041 a closing memo indicating DOT's reasons for entering into this

agreement and containing notice of vacation of DOT's initial decision

in the matter.

II. Reporting and Recordkeeping

A. GM will certify its compliance with the terms and conditions of

this settlement agreement (including without limitation the requirement

that all expenditures shall be ``new'' as defined in section III.E

below), shall maintain such records as are necessary to demonstrate its

compliance, and shall make such records available as may be reasonably

required by DOT.

B. In addition to the requirements contained in the above

provisions, GM will provide annual reports to NHTSA within 30 days

following the end of each one- year period after the effective date of

this agreement, until the terms of the agreement are satisfied,

describing how GM is meeting its commitments and obligations under this

agreement. Each annual report shall contain information relating to the

nature and levels of expenditures for all projects undertaken pursuant

to this settlement agreement, including the methodology for computing

the value of GM's contributions.

C. Upon request, DOT will make available to GM information to

confirm that DOT has provided support to certain projects as specified

in Part I of this settlement agreement.

III. General Provisions

A. This agreement contains the entire agreement between the parties

regarding the subject matter. There are no promises, agreements,

conditions, undertakings, warranties or representations oral or

written, express or implied, between them relating to this subject

matter, other than as herein set forth. This agreement is intended by

the parties to be an integration of all prior or contemporaneous

promises, agreements, conditions, negotiations and undertakings between

them.

B. This agreement may not be modified or amended except by an

agreement in writing, signed by the parties.

C. This settlement agreement, and any amendments or modifications

thereto, shall conform to and be carried out in accordance with all

applicable laws and regulations. GM and DOT shall work in good faith to

ensure that any amendments or modifications reflect consistency with

these principles. If any portion of this agreement or any amendment or

modification is not consistent with applicable laws and regulations,

that portion shall be severable and the parties shall work in good

faith to restructure that portion of the agreement consistent with the

parties' original intent. The remainder of this agreement and any

amendment or modification shall continue to be binding on the parties.

D. The headings in the agreement are for convenience only, and

shall not limit or otherwise affect or describe the scope or intent of

any of the terms hereof or of any particular section thereof. Any

references to ``NHTSA'' in this agreement shall mean the National

Highway Traffic Safety Administration or its successor(s).

E. GM's financial obligations hereunder shall represent, in all

instances, new expenditures not heretofore provided for in any approved

GM budget or otherwise planned (prior to the execution of the parties'

December 2, 1994 letter agreement) to be undertaken by GM during the

period of this settlement agreement. Annually repeated expenditures,

e.g., annual contributions to charities or lobbying organizations, made

or committed to by GM prior to the execution of the parties' December

2, 1994, letter agreement, shall not count as new expenditures except

those portions, if any, of such expenditures that are over and above

such annually repeated expenditure amounts.

F. Research reports submitted to NHTSA by or on behalf of GM and

made publicly available pursuant to this agreement may, consistent with

applicable law, identify GM as a source or sponsor of the report by

stating that the report was financed, produced, or prepared, as

applicable, ``by GM pursuant to an agreement between GM and the U.S.

Department of Transportation.'' Public education materials produced or

distributed by a third party (e.g., lobbying organization, AD Council,

state or local government agency) pursuant to this agreement shall,

absent legal prohibition to the contrary, contain a source

identification which identifies such third party as the source of the

materials in question. Public education materials produced and

distributed directly by GM pursuant to this agreement may contain a

source identification, assuming no other appropriate third party source

exists, which states discretely, ``Brought to you, produced, or

sponsored by the U.S. Department of Transportation and General Motors

Corporation pursuant to an agreement between the parties.''

G. For the projects and activities encompassed by this agreement,

GM's expenditures may be made, where appropriate, in the form of a

combination of money, facilities, human resources, salaries, and other

things directly related to the performance of such projects and

activities and valued according to generally accepted accounting

principles. However, GM's expenditures may not include general and

administrative expenses attributable to GM corporate activities not

directly related to the projects and activities conducted under this

agreement; nor may GM's expenditures include indirect costs, such as

depreciation of facilities and equipment, amortization of intangible

rights, and insurance of all types, not directly related to the

projects and activities conducted under this agreement. Furthermore,

costs and expenses attributed to the development of GM's proposals

pursuant to paragraphs B.2, B.3, C.4, C.5, D.2, D.3, E.2, E.3, F.2,

F.3, G.2, and G.3 of Part I of this settlement agreement shall not be

used by GM to fulfill its financial commitments.

H. This settlement agreement reflects the parties' desire to fully

and completely settle the current investigation by DOT into an alleged

defect of 1970-91 full-sized GM pickup trucks. Nonetheless, DOT

reserves the right at any time, based on new information, to open a new

defect investigation with respect to whether the GM C/K pickup trucks

contain defect(s) related to motor vehicle safety. Nothing in this

agreement shall nullify any obligation the Secretary may have under law

to consider new evidence that was not part of the administrative record

in this case. If a subsequent defect investigation involving the same

alleged safety defect in the C/K trucks is opened, any unfulfilled

commitments by GM under this agreement shall become null and void and

GM shall not be deemed to have waived, by reason of [[Page 13757]] the

execution of this agreement, any defense to or argument against any

action by NHTSA, DOT or the Secretary.

I. The provisions regarding the redirection of funds, which appear

in paragraphs C.7, D.6, F.6, G.6, and H.4 of Part I of this agreement,

are intended by GM and DOT to require both parties to act in good faith

to consider alternative programs of mutual interest in motor vehicle

safety to which the funds may be redirected and to reflect a strong

presumption that the funds in question will be redirected to such

alternative programs.

J. In attempting to reach agreement on the projects or activities

to be undertaken or financed by GM pursuant to sections C, D, F, and G

of Part I of this agreement, the parties shall meet and confer in the

utmost good faith and NHTSA shall not unreasonably withhold its

agreement to a GM proposal that falls within the applicable description

of activities and otherwise reasonably furthers the goals of the

section in question.

K. All questions with respect to the construction of this agreement

and the rights and liabilities of the parties shall be determined in

accordance with the laws of the United States.

L. GM and DOT agree that this settlement agreement shall constitute

a binding and enforceable contractual agreement upon GM and DOT and any

successor corporations or agencies. In the event of a breach of this

agreement, either party may institute a civil action in the United

States District Court for the District of Columbia to enforce the terms

of this agreement or to seek other appropriate relief.

M. By entering into this settlement agreement, neither GM nor DOT

concedes the validity of each other's claims or defenses, and nothing

in this settlement agreement shall constitute an admission by either

party concerning its claims or defenses.

N. This settlement agreement is entered into solely for the

purposes of settling the matters described herein and shall not confer

any rights or benefits upon persons who are not parties to this

agreement.

IV. Effective Date

The effective date of this agreement shall be March 7, 1995.

Agreed to by:

Dated: March 6, 1995.

John F. Smith,

Chief Executive Officer and President, General Motors Corporation.

Dated: March 7, 1995.

Federico Pena,

Secretary, Department of Transportation.

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[FR Doc. 95-6138 Filed 3-10-95; 8:45 am]

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