Evaluation Program Plan:

Cost of NHTSA vehicle safety standards, 1968-2002


Background Since the late 1970's, NHTSA has sponsored many cost studies of safety equipment to meet the FMVSS. Cost studies are based on a detailed engineering "teardown" analysis of the individual pieces and assemblies of which the system is composed, employing a process known as "reverse engineering". The system components are physically torn down into their most elemental parts to identify the process operation by which each elemental part is made in terms of labor minutes; direct materials and scrap, machine occupancy hours or stations times; and machinery, equipment, and tooling utilized. The cost estimates are used in combination with effectiveness evaluations to inform the public about the costs and benefits of FMVSS. Fifty-four studies, covering approximately 30 standards, have been completed with the results scattered among many hard-copy contractor's reports. Different reports compute costs using different economic years and may be inconsistent in their method of averaging costs across models.

Objectives Compile all the existing cost estimates into a single report and inflate all costs to the most recent economic year. The report will describe what vehicle modifications were made in response to the various FMVSS and explain how cost estimates were derived. The report will estimate the total cost of meeting the FMVSS in passenger cars and the cost and weight per car, year-by-year, back to model year 1968. Previously unreleased contractor studies will be made available to the public in "pdf" format.

Approach Cost and weight data for major components will be extracted from contractor and NHTSA reports and compiled into a summary report. Care will be taken to determine the economic year used for the cost data in the study. All cost data will be brought to the most recent full economic year using the gross domestic product implicit price deflator from the Bureau of Economic Analysis.

Status Completion expected in 2004 or 2005.

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