According to a recent report from Bloomberg, the U.S. National Highway Traffic Safety Administration (NHTSA) denied Pagani’s exemption request for the lack of an advanced airbag system.
“The basis for the application is that the petitioner avers compliance would cause substantial economic hardship and that it has tried in good faith to comply with the standard,” the NHTSA notice reads.
“The agency has determined that Pagani has failed to demonstrate that compliance would cause substantial economic hardship. Furthermore, the agency is unable to find that an exemption would be consistent with the public interest or the objectives of the Safety Act,” it further adds.
This system needs to have sensors to adjust deployment force based on occupants’ heights and weights. However, Tesla Motors and Lamborghini have received exemptions over the past five years on financial-hardship grounds. But it looks like this is not Pagani’s case. That is because developing such a system for the Huayra would cost the company some $5.7 million, which is something its low-volume and tight margins would not allow.
“Although Pagani has realized profits in recent years, the company asserted that immediate compliance with the advanced air-bag requirements will cause substantial economic hardship,” NHTSA said. “Pagani stated that the company only operates on the cash on hand without lines of credit or debt financing, and its small profit margin is necessary to guard it from market fluctuations.”
Google News