Petitions for Exemption From the Federal Motor Vehicle Theft Prevention Standard

Published date12 August 2020
Citation85 FR 48759
Record Number2020-17596
SectionNotices
CourtNational Highway Traffic Safety Administration
Federal Register, Volume 85 Issue 156 (Wednesday, August 12, 2020)
[Federal Register Volume 85, Number 156 (Wednesday, August 12, 2020)]
                [Notices]
                [Pages 48759-48764]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-17596]
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                DEPARTMENT OF TRANSPORTATION
                National Highway Traffic Safety Administration
                Petitions for Exemption From the Federal Motor Vehicle Theft
                Prevention Standard
                AGENCY: National Highway Traffic Safety Administration (NHTSA),
                Department of Transportation (DOT).
                ACTION: Grant of petitions for exemption.
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                SUMMARY: This document grants in full four manufacturers' petitions for
                exemption for four model lines from the Federal Motor Vehicle Theft
                Prevention Standard (Theft Prevention Standard) beginning in model year
                (MY) 2021. The manufacturers, vehicle lines, and model years are as
                follows: Ford Motor Company (Ford) for its Bronco Sport vehicle line
                beginning in MY 2021; Jaguar Land Rover North America LLC (Jaguar Land
                Rover) for its Jaguar I-Pace vehicle line beginning in MY 2021;
                American Honda Motor Co., Inc. (Honda) for its HR-V vehicle line
                beginning in MY 2021; and Volkswagen Group of America, Inc.
                (Volkswagen) for its ID.4 vehicle line beginning in MY 2021.
                DATES: The exemptions granted by this notice are effective beginning
                with the 2021 model year.
                FOR FURTHER INFORMATION CONTACT: Carlita Ballard, Office of
                International Policy, Fuel Economy, and Consumer Programs, NHTSA, West
                Building, W43-439, NRM-310, 1200 New Jersey Avenue SE, Washington, DC
                20590. Ms. Ballard's phone number is (202) 366-5222. Her fax number is
                (202) 493-2990.
                SUPPLEMENTARY INFORMATION: Under 49 U.S.C. chapter 331, the Secretary
                of Transportation (and the National Highway Traffic Safety
                Administration (NHTSA) by delegation) is required to promulgate a theft
                prevention standard to provide for the identification of certain motor
                vehicles and their major replacement parts to impede motor vehicle
                theft. NHTSA promulgated regulations at Part 541 (Theft Prevention
                Standard) to require parts-marking for specified passenger motor
                vehicles and light trucks. Pursuant to 49 U.S.C. 33106, manufacturers
                that are subject to the parts-marking requirements may petition the
                Secretary of Transportation for an exemption for a line of passenger
                motor vehicles equipped as standard equipment with an anti-theft device
                that the Secretary decides is likely to be as effective in reducing and
                deterring motor vehicle theft as compliance with the parts-marking
                requirements. In accordance with this statute, NHTSA promulgated 49 CFR
                part 543, which establishes the process through which manufacturers may
                seek an exemption from the Theft Prevention Standard.
                 49 CFR 543.5 provides general submission requirements for petitions
                and states that each manufacturer may petition NHTSA for an exemption
                of one vehicle line per model year. Among other requirements,
                manufacturers must identify whether the exemption is sought under
                section 543.6 or section 543.7. Under section 543.6, a manufacturer may
                request an exemption by providing specific information about the anti-
                theft device, its capabilities, and the reasons the petitioner believes
                the device to be as effective at reducing and deterring theft as
                compliance with the parts-marking requirements. Section 543.7 permits a
                manufacturer to request an exemption under a more streamlined process
                if the vehicle line is equipped with an anti-theft device (an
                ``immobilizer'') as standard equipment that complies with one of the
                standards specified in that section.
                 Section 543.8 establishes requirements for processing petitions for
                exemption from the Theft Prevention Standard. As stated in section
                543.8(a), NHTSA processes any complete exemption petition. If NHTSA
                receives an incomplete petition, NHTSA will notify the petitioner of
                the deficiencies. Once NHTSA receives a complete petition it will
                process it and, in accordance with section 543.8(b), will grant the
                petition if it determines that, based upon substantial evidence, the
                standard equipment antitheft device is likely to be as effective in
                reducing and deterring motor vehicle theft as compliance with the
                parts-marking requirements of Part 541.
                 Section 543.8(c) requires NHTSA to issue its decision either to
                grant or to deny an exemption petition not later than 120 days after
                the date on which a complete petition is filed. If NHTSA does not make
                a decision within the 120-day period, the petition shall be deemed to
                be approved and the manufacturer shall be exempt from the standard for
                the line covered by the
                [[Page 48760]]
                petition for the subsequent model year.\1\ Exemptions granted under
                Part 543 apply only to the vehicle line or lines that are subject to
                the grant and are equipped with the antitheft device on which the
                line's exemption was based and is effective for the model year
                beginning after the model year in which NHTSA issues the notice of
                exemption, unless the notice of exemption specifies a later year.
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                 \1\ 49 U.S.C. 33106(d).
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                 Sections 543.8(f) and (g) apply to how NHTSA's decisions on
                petitions are to be made known. Under section 543.8(f), if the petition
                is sought under section 543.6, NHTSA publishes a notice of its decision
                to grant or deny the exemption petition in the Federal Register and
                notifies the petitioner in writing. Under section 543.8(g), if the
                petition is sought under section 543.7, NHTSA notifies the petitioner
                in writing of the agency's decision to grant or deny the exemption
                petition.
                 This grant of petitions for exemption considers the following
                manufacturers' petitions for the following model years: Ford Motor
                Company (Ford) for its Bronco Sport vehicle line beginning in MY 2021;
                Jaguar Land Rover North America LLC (Jaguar Land Rover) for its Jaguar
                I-Pace vehicle line beginning in MY 2021; American Honda Motor Co.,
                Inc. (Honda) for its HR-V vehicle line beginning in MY 2021; and
                Volkswagen Group of America, Inc. (Volkswagen) for its ID.4 vehicle
                line beginning in MY 2021.
                 As explained below, the petitions for all four manufacturers'
                vehicle lines are granted under 49 U.S.C. 33106, which states that if
                the Secretary of Transportation (NHTSA, by delegation) does not make a
                decision about a petition within 120 days of the petition submission,
                the petition shall be deemed to be approved and the manufacturer shall
                be exempt from the standard for the line covered by the petition for
                the subsequent model year. Separately, based on the information
                provided in each manufacturer's petition, NHTSA has determined that the
                antitheft device to be placed on each line as standard equipment is
                likely to be as effective in reducing and deterring motor vehicle theft
                as compliance with the parts-marking requirements of the Theft
                Prevention Standard.
                I. Petition Approval Under 49 U.S.C. 33106(d)
                 As outlined above, if NHTSA does not make a decision on a complete
                exemption petition within the 120-day period after the date that the
                petition was filed,\2\ the petition shall be deemed to be approved and
                the manufacturer shall be exempt from the standard for the line covered
                by the petition for the subsequent model year.\3\
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                 \2\ See 51 FR 706; 52 FR 33821. Since the interim final rule
                implementing the Theft Prevention Standard, NHTSA has interpreted
                the filing date as meaning the date on which NHTSA receives a
                manufacturer's complete petition.
                 \3\ 49 U.S.C. 33106(d).
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                 Each manufacturer covered in this notice submitted a petition for
                exemption to NHTSA more than 120 days prior to this decision. Although
                each petition is accordingly approved pursuant to 49 U.S.C. 33106(d),
                for continuity for manufacturers, because MY 2021 production is likely
                to begin 8 months prior to the start of this notice,\4\ NHTSA evaluated
                the specific information provided by each manufacturer in accordance
                with the requirements in 49 CFR 543.6, Petition: Specific content
                requirements. Based on this information, NHTSA separately determined
                that the antitheft device to be placed on each line as standard
                equipment is likely to be as effective in reducing and deterring motor
                vehicle theft as compliance with the parts-marking requirements of the
                Theft Prevention Standard.
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                 \4\ 49 U.S.C. 33106(c).
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                II. Specific Petition Content Requirements Under 49 CFR 543.6
                 Pursuant to 49 CFR part 543, Exemption from Vehicle Theft
                Prevention, the four manufacturers described below petitioned for their
                specified vehicle lines an exemption from the parts-marking
                requirements of the Theft Prevention Standard, beginning in MY 2021.
                Ford, Jaguar Land Rover, Honda, and Volkswagen petitioned under 49 CFR
                543.6, Petition: Specific content requirements, which, as described
                above, requires manufacturers to provide specific information about the
                anti-theft device installed as standard equipment on all vehicles in
                the line for which an exemption is sought, the anti-theft device's
                capabilities, and the reasons the petitioner believes the device to be
                as effective at reducing and deterring theft as compliance with the
                parts-marking requirements.
                 More specifically, section 543.6(a)(1) requires petitions to
                include a statement that an antitheft device will be installed as
                standard equipment on all vehicles in the line for which the exemption
                is sought. Under section 543.6(a)(2), each petition must list each
                component in the antitheft system, and a diagram showing the location
                of each of those components within the vehicle. As required by section
                543.6(a)(3), each petition must include an explanation of the means and
                process by which the device is activated and functions, including any
                aspect of the device designed to: (1) Facilitate or encourage its
                activation by motorists; (2) attract attention to the efforts of an
                unauthorized person to enter or move a vehicle by means other than a
                key; (3) prevent defeating or circumventing the device by an
                unauthorized person attempting to enter a vehicle by means other than a
                key; (4) prevent the operation of a vehicle which an unauthorized
                person has entered using means other than a key; and (5) ensure the
                reliability and durability of the device.\5\
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                 \5\ 49 CFR 543.6(a)(3).
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                 In addition to providing information about the antitheft device and
                its functionality, petitioners must also submit the reasons for the
                petitioner's belief that the antitheft device will be effective in
                reducing and deterring motor vehicle theft, including any theft data
                and other data that are available to the petitioner and form a basis
                for that belief,\6\ and the reasons for the petitioner's belief that
                the agency should determine that the antitheft device is likely to be
                as effective as compliance with the parts-marking requirements of Part
                541 in reducing and deterring motor vehicle theft, including any
                statistical data that are available to the petitioner and form the
                basis for the petitioner's belief that a line of passenger motor
                vehicles equipped with the antitheft device is likely to have a theft
                rate equal to or less than that of passenger motor vehicles of the
                same, or a similar, line which have parts marked in compliance with
                Part 541.\7\
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                 \6\ 49 CFR 543.6(a)(4).
                 \7\ 49 CFR 543.6(a)(5).
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                 The following sections describe each manufacturer's petition
                information provided pursuant to 49 CFR part 543, Exemption from
                Vehicle Theft Prevention. To the extent that specific information in a
                manufacturer's petition is subject to a properly filed confidentiality
                request, that information was not disclosed as part of this notice. See
                49 CFR 512.20(a).
                a. Ford
                 In a petition dated December 12, 2019, Ford requested an exemption
                from the parts-marking requirements of the Theft Prevention Standard
                for its Bronco Sport vehicle line beginning with MY 2021. Pursuant to
                section 543.6(a)(1), Ford stated that the antitheft device described in
                its petition--Intelligent
                [[Page 48761]]
                Access with Push Button Start (IAwPB)--will be standard equipment on
                its Bronco Sport vehicle line produced for the U.S. beginning with MY
                2021 and beyond. Ford also stated that on its signature trim level
                models it will offer phone as key (Paak) feature via the LincolnWay app
                that can be used when paired with a smart phone instead of using a key
                fob to lock/unlock or remotely start/shutdown the vehicle.
                 In accordance with section 543.6(a)(2), Ford provided a detailed
                description and diagram of the identity, design, and location of the
                components of the antitheft device for its Bronco Sport vehicle line.
                Under section 543.6(a)(3), Ford described the IAwPB system as a
                passive, electronic engine immobilizer device that uses encrypted
                transponder technology. Key components of the IAwPB device will include
                an Intelligent Access electronic Push-Button Start key fob, keyless
                ignition system, radio transceiver module, body control module (BCM),
                powertrain control module (PCM), anti-lock braking system module (ABS)
                and an embedded secure modem (for Paak feature). Ford further stated
                that its Bronco Sport vehicle line will also be offered with a
                perimeter alarm system as standard equipment which will activate a
                visible and audible alarm whenever unauthorized access is attempted.
                Some additional features of the antitheft device include: Encrypted
                communication between the transponder, BCM control function and the
                PCM; ``virtually impossible'' key duplication; and shared security data
                between the body control module/remote function actuator and the
                powertrain control module.
                 Ford also provided information on the reliability and durability of
                its proposed device. To ensure reliability and durability of its
                device, Ford stated that it conducted tests on the antitheft device
                which complied with its own specific standards. Additionally, Ford
                stated that its antitheft device has no moving parts (i.e., BCM, PCM,
                and electrical components) to perform system functions, which eliminate
                the possibility of physical damage or deterioration from normal use;
                and mechanically overriding the device to start the vehicle is also
                impossible. In further addressing the reliability and durability of its
                device, Ford stated that its Bronco Sport vehicle line will also be
                equipped with several other standard antitheft features common to Ford
                vehicles, (i.e., hood release located inside the vehicle, counterfeit
                resistant VIN labels, secondary VINs, and cabin accessibility only with
                the use of a valid key fob).
                 Ford also stated that its system is automatically activated when
                the ``StartStop'' button is pressed, shutting off the engine. Ford
                stated that the device is deactivated when a start sequence is
                completed and engine start is successful. Ford further stated that the
                vehicle engine can only be started when the key is present in the
                vehicle and the ``StartStop'' button inside the vehicle is pressed.
                Ford stated that when the ``StartStop'' button is pressed, the
                transceiver module will read a key code and transmit an encrypted
                message to the control module to determine key validity and engine
                start by sending a separate encrypted message to the BCM and the PCM.
                The powertrain will function only if the key code matches the unique
                identification key code previously programmed into the BCM. Ford stated
                that the two modules must be matched together in order for the vehicle
                to start. If the codes do not match, the powertrain engine starter,
                spark, and fuel will be disabled. Ford further stated that any attempt
                to operate the vehicle without transmission of the correct code to the
                electronic control (i.e., short circuiting the ``StartStop'' button)
                module will be ineffective.
                 Ford stated that its anti-theft system was introduced on all MY
                1996 Ford Mustang GT and Cobra models as well as other selected models.
                Ford also stated that on its 1997 models, the installation of its
                antitheft device was extended to the entire Ford Mustang vehicle line
                as standard equipment and that according to the National Insurance
                Crime Bureau (NICB) theft statistics, MY 1997 Mustangs installed with
                the antitheft device showed a 70% reduction in theft rate compared to
                its MY 1995 Mustangs without an antitheft device.
                 Ford further stated that the proposed antitheft device is very
                similar to the system that was offered on its MY 2020 Lincoln Corsair
                vehicle line. The Lincoln Corsair vehicle line was granted a parts-
                marking exemption by NHTSA (84 FR 10890, March 22, 2019) beginning with
                its MY 2020 vehicles.
                b. Jaguar Land Rover
                 In a petition dated November 26, 2019, Jaguar Land Rover requested
                an exemption from the parts-marking requirements of the Theft
                Prevention Standard for its Jaguar I-Pace vehicle line beginning with
                MY 2021. Pursuant to section 543.6(a)(1), Jaguar Land Rover stated that
                the antitheft device described in its petition--a passive, transponder-
                based, electronic engine immobilizer device--will be standard equipment
                on the Jaguar I-Pace model for MY 2021.
                 In accordance with section 543.6(a)(2), Jaguar Land Rover provided
                a detailed description and diagram of the identity, design, and
                location of the components of the antitheft device for the Jaguar I-
                Pace vehicle line. Under section 543.6(a)(3), Jaguar Land Rover
                described that key components of its antitheft device will include a
                Smart Key, powertrain control module (PCM), instrument cluster, body
                control module (BCM), remote frequency receiver (RFR), Immobilizer
                Antenna Unit (IAU), Remote Frequency Actuator (RFA), Security Horn and
                Vehicle Horn, Door Zone Modules (Passenger and Driver) (DMZs) and a
                Security Warning LED. Jaguar Land Rover stated that its antitheft
                device will also include a vehicle security system that includes an
                audible and visual perimeter alarm system as standard equipment on the
                entire vehicle line. The horn will sound and the vehicle's exterior
                lights will flash if unauthorized entry is attempted by opening the
                hood, doors, or luggage compartment. Jaguar Land Rover further stated
                that its perimeter alarm system can be armed with its Smart Key or
                programmed to be passively armed.
                 Jaguar Land Rover provided information on the reliability and
                durability of its proposed device as required by section
                543.6(a)(3)(v). To ensure reliability and durability of the device,
                Jaguar Land Rover conducted tests based on its own specified standards.
                Jaguar Land Rover provided a detailed list of the tests conducted
                (i.e., temperature and humidity cycling, high and low temperature
                cycling, mechanical shock, random vibration, thermal stress/shock
                tests, material resistance tests, dry heat, dust and fluid ingress
                tests). Jaguar Land Rover stated that it believes that its device is
                reliable and durable because it complied with specified requirements
                for each test. Additionally, Jaguar Land Rover stated that its key
                recognition sequence includes over a billion code combinations with
                encrypted data that are secure against duplication. Jaguar Land Rover
                further stated that the coded data transfer between modules use a
                unique secure identifier and public algorithm. Jaguar Land Rover also
                stated that since its Jaguar I-Pace vehicle line will utilize a push
                button vehicle ignition, it does not have a conventional mechanical key
                barrel, and therefore, a thief will have no means of forcibly bypassing
                the key-locking system.
                 Jaguar Land Rover stated that its immobilizer device is
                automatically activated when the Smart Key is removed from the vehicle.
                Jaguar Land Rover also stated that its Smart Key is programmed and
                synchronized to each
                [[Page 48762]]
                vehicle through an identification key code and a secret, randomly-
                generated code unique to each vehicle.
                 Jaguar Land Rover stated that there are three methods of antitheft
                device deactivation and engine starting. Method one consists of
                automatic detection of the Smart Key via a remote frequency challenge
                response sequence. Specifically, when the driver approaches the vehicle
                and pulls the driver's door handle following authentication of the
                correct Smart Key, the doors will unlock. When the ignition start
                button is pressed, the device searches to find and authenticate the
                Smart Key within the vehicle interior. If successful, this information
                is passed to the BCM via the Remote Function Actuator by coded data
                transfer. The BCM will pass the ``valid key'' status to the instrument
                cluster, via a coded data transfer and then send the ``key valid''
                message code to the PCM initiating a coded data transfer and engine
                authorization to start. Method two consists of unlocking the vehicle
                with the Smart Key unlock button. As the driver approaches the vehicle,
                the Smart Key unlock button is pressed and the doors will unlock. Once
                the driver presses the ignition start button, the operation process is
                the same as method one. Method three involves using the emergency key
                blade. If the Smart Key has a discharged battery or is damaged, there
                is an emergency key blade that can be removed from the Smart Key and
                used to unlock the doors. When the ignition start button is pressed,
                the device searches to find and authenticate the Smart Key within the
                vehicle interior. If successful, the Smart Key needs to be docked. Once
                the Smart Key is docked/placed in the correct position, and the
                ignition start button is pressed again, the BCM and Smart key enter a
                coded data exchange via the Immobilizer Antenna Unit. The BCM then
                passes the valid key status to the instrument cluster, via the
                Immobilizer Antenna Unit and sends the key valid message to the PCM,
                which initiates a coded data transfer. If successful, engine starting
                is authorized.
                 Jaguar Land Rover stated that its immobilizer system on the Jaguar
                I-Pace is substantially similar to the antitheft devices using similar
                technology installed on the Jaguar F-Pace, Jaguar XJ, Jaguar F-Type,
                Jaguar XF, Jaguar XE, Land Rover Discovery Sport and the Land Rover
                Range Rover Evoque.
                c. Honda
                 In a petition dated December 13, 2019, Honda requested an exemption
                from the parts-marking requirements of the Theft Prevention Standard
                for its HR-V vehicle line beginning with MY 2021. Pursuant to section
                543.6(a)(1), Honda stated that the antitheft device described in its
                petition--a transponder-based ignition immobilizer system--will be
                installed as standard equipment on HR-V vehicles starting with MY 2021.
                 In accordance with section 543.6(a)(2), Honda provided a detailed
                description and diagram of the identity, design, and location of the
                components of the antitheft device for the HR-V vehicle line. Honda
                stated that its vehicle line will offer a front-wheel drive and an all-
                wheel drive variation. Honda further stated that its MY 2021 HR-V
                vehicle line will be installed with a transponder-based, engine
                immobilizer antitheft device as standard equipment. More specifically,
                Honda stated that the HR-V vehicle line will offer two types of
                ignition systems, a ``smart entry push button start'' ignition system
                (``smart entry'') and a keyed ignition system with a key fob. Key
                components of the antitheft device will include a passive immobilizer,
                ``smart entry'' remote, powertrain control module (PCM) and an
                Immobilizer Entry System (IMOES). Honda further stated that its vehicle
                line will be installed with a vehicle security alarm system as standard
                equipment which will activate a visible and audible alarm whenever
                unauthorized access is attempted.
                 Honda provided information on the reliability and durability of its
                proposed device as required by section 543.6(a)(3)(v). To ensure
                reliability and durability of the device, Honda conducted tests based
                on its own specified standards. Honda provided a detailed list of the
                tests it used to validate the integrity, durability and reliability of
                its device and stated that the company believes that it follows a
                rigorous development process to ensure that its antitheft device will
                be reliable and robust for the life of the vehicle. Honda stated that
                its device does not require the presence of a ``smart entry'' remote
                battery to function nor does it have any moving parts (i.e., the PCM,
                IMOES, ignition key, ``smart entry'' remote and the corresponding
                electrical components found within its own housing units), which it
                believes reduces the chance for deterioration and wear from normal use.
                Honda also stated that additional levels of reliability, durability and
                security will be accomplished because it will incorporate counterfeit
                resistant vehicle identification number (VIN) plates, secondary VINs, a
                hood release located inside the vehicle, and its smart entry remote
                will utilize rolling codes for the lock and unlock functions of its
                vehicles.
                 Honda further stated that its immobilizer device is always active
                without requiring any action from the vehicle operator as long as the
                matching smart entry remote is outside of the operating range and the
                engine is turned off. Deactivation occurs when a valid ``smart entry''
                remote with matching codes is placed within operating range and the
                engine start/stop button is pushed to start the vehicle. Honda further
                states that if a ``smart entry'' remote without a matching code is
                placed inside the operating range and the engine start/stop button is
                pushed, the PCM will prevent fueling and starting of the engine.
                Additionally, an ignition immobilizer telltale indicator will begin
                flashing on the meter panel providing the status of the immobilizer
                device.
                 Honda stated that the audible and visible vehicle security alarm
                system installed on its HR-V vehicles will monitor any attempts of
                unauthorized entry and attract attention to an unauthorized person
                attempting to enter its vehicles without the use of a ``smart entry''
                remote or its built-in mechanical door key. Specifically, Honda stated
                that whenever an attempt is made to open one of its vehicle doors, hood
                or trunk without using the ``smart entry'' remote or turning a key in
                the key cylinder to disarm the vehicle, the vehicle's horn will sound
                and its lights will flash. Honda stated that its vehicle security
                system is activated when all of the doors are locked and the hood and
                trunk are closed and locked. Honda further stated that its vehicle
                security system is deactivated by using the key fob buttons to unlock
                the vehicle doors or having the ``smart entry'' remote within operating
                range when the operator grabs either of the vehicle's front door
                handles.
                 Honda believes that installation of the antitheft immobilizer
                device as standard equipment reduces the vehicle theft rate by making
                conventional methods of theft obsolete, i.e., punching out the steering
                column or hot-wiring the ignition. Additionally, Honda stated that the
                immobilizer device proposed for the 2021 HR-V is similar to the design
                offered on its Honda Civic, Honda Accord, Honda CR-V, Honda Pilot and
                Acura MDX, Honda Passport, and the Acura TLX vehicles which have been
                granted an exemption by the agency.
                d. Volkswagen
                 In a petition dated December 20, 2019, Volkswagen requested an
                exemption from the parts-marking
                [[Page 48763]]
                requirements of the Theft Prevention Standard for its ID.4 beginning
                with MY 2021. Pursuant to section 543.6(a)(1), Volkswagen stated that
                the antitheft device described in its petition will be installed as
                standard equipment on the ID.4 vehicles starting with MY 2021.
                 In accordance with section 543.6(a)(2), Volkswagen provided a
                detailed description and diagram of the identity, design, and location
                of the components of the antitheft device for its ID.4 vehicle line.\8\
                Volkswagen stated that its MY 2021 ID.4 line will be installed with its
                fifth generation transponder-based electronic engine immobilizer
                antitheft device as standard equipment on the entire vehicle line. Key
                components of the antitheft device will include an immobilizer, power
                control unit (LSG1) in case of 4Motion all-wheel-drive system (LSG1 and
                LSG2), adapted ignition key (key fob) and an in-car application server
                1 (ICAS1) with integrated gateway.
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                 \8\ Volkswagen also stated that it will offer an audible and
                visible alarm as optional equipment on its ID.4 line. Per 49 U.S.C.
                33106(b), manufacturers may petition NHTSA for an exemption ``for a
                line of passenger motor vehicles equipped as standard equipment with
                an anti-theft device that [NHTSA] decides is likely to be as
                effective in reducing and deterring motor vehicle theft as
                compliance with'' the Theft Prevention Standard (emphasis added).
                Per 49 U.S.C. 33106(a)(2), ``standard equipment'' means equipment
                already installed in a motor vehicle when it is delivered from the
                manufacturer and not an accessory or other item that the first
                purchaser customarily has the option to have installed. Therefore,
                for purposes of Volkswagen's petition, NHTSA is only considering the
                device equipped on the vehicle as standard equipment.
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                 Volkswagen provided information on the reliability and durability
                of its proposed device as required by section 543.6(a)(3)(v). To ensure
                reliability and durability of the device, Volkswagen stated that the
                antitheft device has been tested for compliance with its corporate
                requirements, including those for electrical and electronic assemblies
                in motor vehicles related to performance requirements including
                electrical system temperature stability, mechanical integrity,
                electrical performance, electromagnetic compatibility (EMC),
                environmental compatibility and service life.
                 Volkswagen stated that its immobilizer device is aimed to actively
                incorporate the power control unit into the evaluation and monitoring
                process. Volkswagen also stated that activation of its immobilizer
                device occurs automatically after the engine is switched off.
                Deactivation of the immobilizer device occurs when the ignition is
                turned on or the key fob is recognized by the immobilizer control unit.
                Specifically, when turning on the ignition on/off switch, the key
                transponder sends a fixed code to the immobilizer control unit. If this
                is identified as the correct code, a variable code is generated in the
                immobilizer control unit and sent to the transponder. Volkswagen stated
                that a secret arithmetic process is then started according to a set of
                specific equations and that a new variable code is generated every time
                the immobilizer goes through the secret computing process. The results
                of the computing process are evaluated in the control unit and if
                verified, the vehicle key is acknowledged as correct. The engine
                control unit then sends a variable code to the immobilizer control unit
                for mutual identification. If all the data matches, the vehicle can be
                started.
                 In support of its belief that its antitheft device will be as or
                more effective in reducing and deterring vehicle theft than the parts-
                marking requirement, Volkswagen referenced the effectiveness of
                immobilizer devices installed on other vehicles for which NHTSA has
                granted exemptions. Specifically, Volkswagen referenced information
                from the Highway Loss Data Institute which showed that BMW vehicles
                experienced theft loss reductions resulting in a 73% decrease in
                relative claim frequency and a 78% lower average loss payment per claim
                for vehicles equipped with an immobilizer. Volkswagen also stated that
                the National Crime Information Center's (NCIC) theft data showed that
                there was a 70% reduction in theft experienced when comparing the MY
                1987 Ford Mustang vehicle thefts (with immobilizers) to MY 1995 Ford
                Mustang vehicle thefts (without immobilizers).
                III. Decision To Grant the Petitions
                 As discussed above, the petitions for all four manufacturers'
                vehicle lines are considered approved under 49 U.S.C. 33106.
                Separately, NHTSA believes, based on the supporting evidence submitted
                by each manufacturer, that the antitheft device described for each
                vehicle line is likely to be as effective in reducing and deterring
                motor vehicle theft as compliance with the parts-marking requirements
                of the Theft Prevention Standard.
                 Pursuant to 49 U.S.C. 33106 and 49 CFR 543.8(b), the agency grants
                a petition for exemption from the parts-marking requirements of Part
                541, either in whole or in part, if it determines that, based upon
                substantial evidence, the standard equipment antitheft device is likely
                to be as effective in reducing and deterring motor vehicle theft as
                compliance with the parts-marking requirements of Part 541. The agency
                finds that each manufacturer has provided adequate reasons for its
                belief that the antitheft device for each vehicle line is likely to be
                as effective in reducing and deterring motor vehicle theft as
                compliance with the parts-marking requirements of the Theft Prevention
                Standard. This conclusion is based on the information each manufacturer
                provided about its antitheft device.
                 As discussed in the notice, Petitions for Exemption From the
                Federal Motor Vehicle Theft Prevention Standard in the Federal Register
                of Monday, May 11, 2020,\9\ NHTSA would like to reiterate that for
                manufacturers providing data to support their belief that a line of
                passenger motor vehicles equipped with the antitheft device is likely
                to have a theft rate equal to or less than that of the same, or
                similar, line which have parts marked in compliance with part 541, the
                agency is looking for the manufacturer to provide data comparing the
                subject vehicle line to that of a same, or similar line, pursuant to
                section 543.6(a)(5).\10\
                ---------------------------------------------------------------------------
                 \9\ 85 FR 27798 (May 11, 2020).
                 \10\ This is because, to make a valid comparison, NHTSA must
                carefully choose two sets of vehicles that are as nearly similar as
                possible so that the agency can be reasonably certain that any
                differences or similarities in the theft rates of the two sets of
                vehicles can be attributed to the presence of an anti-theft device
                or parts marking and not to extraneous, confounding variables.
                ---------------------------------------------------------------------------
                 The agency concludes that for Ford, Jaguar Land Rover, Honda and
                Volkswagen, each described device will provide the five types of
                performance features listed in section 543.6(a)(3): Promoting
                activation; attracting attention to the efforts of unauthorized persons
                to enter or operate a vehicle by means other than a key; preventing
                defeat or circumvention of the device by unauthorized persons;
                preventing operation of the vehicle by unauthorized entrants; and
                ensuring the reliability and durability of the device.
                 The agency notes that 49 CFR part 541, Appendix A-1, identifies
                those lines that are exempted from the Theft Prevention Standard for a
                given model year. 49 CFR 543.8(f) contains publication requirements
                incident to the disposition of all Part 543 petitions. Advanced
                listing, including the release of future product nameplates, the
                beginning model year for which the petition is granted and a general
                description of the antitheft device is necessary in order to notify law
                enforcement agencies of new vehicle lines exempted from the parts-
                marking requirements of the Theft Prevention Standard.
                 If any manufacturer listed in this notice decides not to use the
                exemption
                [[Page 48764]]
                for its requested vehicle line, the manufacturer must formally notify
                the agency. If such a decision is made, the line must be fully marked
                as required by 49 CFR 541.5 and 541.6 (marking of major component parts
                and replacement parts).
                 NHTSA notes that if any manufacturer listed in this notice wishes
                in the future to modify the device on which this exemption is based,
                the company may have to submit a petition to modify the exemption.
                Section 543.8(d) states that a Part 543 exemption applies only to
                vehicles that belong to a line exempted under this part and equipped
                with the antitheft device on which the line's exemption is based.
                Further, section 543.10(c)(2) provides for the submission of petitions
                ``to modify an exemption to permit the use of an antitheft device
                similar to but differing from the one specified in the exemption.''
                 The agency wishes to minimize the administrative burden that
                section 543.10(c)(2) could place on exempted vehicle manufacturers and
                itself. The agency did not intend in drafting Part 543 to require the
                submission of a modification petition for every change to the
                components or design of an antitheft device. The significance of many
                such changes could be de minimis. Therefore, NHTSA suggests that if any
                manufacturer listed in this notice contemplates making any changes, the
                effects of which might be characterized as de minimis, it should
                consult the agency before preparing and submitting a petition to
                modify.
                 For the foregoing reasons, the agency hereby grants in full the
                following petitions for exemption for the following manufacturers'
                vehicle lines for the following model years: Ford Motor Company (Ford)
                for its Bronco Sport vehicle line beginning in MY 2021; Jaguar Land
                Rover North America LLC (Jaguar Land Rover) for its Jaguar I-Pace
                vehicle line beginning in MY 2021; American Honda Motor Co., Inc.
                (Honda) for its HR-V beginning in MY 2021; and Volkswagen Group of
                America, Inc. (Volkswagen) for its ID.4 beginning in MY 2021.
                 Issued in Washington, DC, under authority delegated in 49 CFR
                1.95 and 501.8.
                Raymond R. Posten,
                Associate Administrator for Rulemaking.
                [FR Doc. 2020-17596 Filed 8-11-20; 8:45 am]
                BILLING CODE 4910-59-P
                

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