[Federal Register: May 20, 1998 (Volume 63, Number 97)]
[Notices]               
[Page 27784-27785]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20my98-107]

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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