[Federal Register Volume 60, Number 49 (Tuesday, March 14, 1995)]
[Notices]
[Pages 13752-13758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6138]



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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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