Aug. 6 (UPI) -- California-based Zoox is the first U.S. manufacturer of automated vehicles to be exempted from full compliance with federal motor vehicle safety standards.
The Department of Transportation announced the exemption for Zoox after earlier enabling foreign makers of autonomous vehicles to request the same exemption.
"This is a win-win for safety and innovation," Transportation Secretary Sean Duffy said in a news release on Wednesday.
"Companies like Zoox have a process to create and test their latest technologies," Duffy continued. "America, not China, can and will drive the future of self-driving cars forward."
Zoox is based in Foster City, Calif., and announced it is launching an autonomous ride-hailing service in Las Vegas this year.
"From the moment guests step into our robotaxi, they're immersed in the future of transportation, with the freedom to focus on their next adventure rather than the road ahead," Zoox Chief Product Officer Michael White said.
Because Zoox received the exemption, it cannot display signs saying its vehicles comply with federal motor vehicle safety standards.
Officials with the National Highway Traffic Safety Administration in April expanded its Automated Vehicle Exemption Program to include U.S. firms after initially only exempting qualifying foreign-made AVs.
NHTSA officials called the program an "unnecessary regulatory barrier" for U.S.-built autonomous vehicles, which don't have drivers.
NHTSA can exempt such vehicles for research, demonstrations and other purposes that enable their manufacturers to develop and improve the emerging technologies.
"This exemption promotes innovative designs, such as prototype vehicles, through a ... review process that considers the overall safety of the vehicle along with the purposes for which the exemption is requested," NHTSA Chief Counsel Peter Simshauser said in April.
"To cultivate this nation's tremendous potential for automotive innovation, the same exemption opportunities enjoyed by foreign vehicles must be made available for vehicles built in the United States," Simshauser added.
He did not say why only foreign automakers were allowed to request the exemption before April.
NHTSA did not immediately respond to a UPI request for comment on Wednesday afternoon.
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