Petitions for Exemption From the Federal Motor Vehicle Theft Prevention Standard; Volkswagen Group of America, Inc. |
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Topics: Volkswagen Taos
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Raymond R. Posten
National Highway Traffic Safety Administration
14 April 2021
[Federal Register Volume 86, Number 70 (Wednesday, April 14, 2021)]
[Notices]
[Pages 19690-19692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07570]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
Petitions for Exemption From the Federal Motor Vehicle Theft
Prevention Standard; Volkswagen Group of America, Inc.
AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Grant of petition for exemption.
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SUMMARY: This document grants in full the Volkswagen Group of America,
Inc.'s (Volkswagen) petition for exemption from the Federal Motor
Vehicle Theft Prevention Standard (theft prevention standard) for its
Taos vehicle line beginning in model year (MY) 2022.
DATES: The exemption granted by this notice is effective beginning with
the 2022 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 antitheft 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
antitheft 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 antitheft 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 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 that are equipped with the
antitheft device on which the line's exemption was based, and are
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 the manner in which 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
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of the agency's decision to grant or deny the exemption petition.
This grant of petition for exemption considers Volkswagen Group of
America, Inc.'s (Volkswagen) petition for its Taos vehicle line
beginning in MY 2022. Volkswagen's petition is granted under 49 U.S.C.
33106 and 49 CFR 543.8(c), which state 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 Volkswagen's
petition, NHTSA has determined that the antitheft device to be placed
on its vehicle 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. Specific Petition Content Requirements Under 49 CFR 543.6
Pursuant to 49 CFR part 543, Exemption from Vehicle Theft
Prevention, Volkswagen petitioned for an exemption for its specified
vehicle line from the parts-marking requirements of the theft
prevention standard, beginning in MY 2022. Volkswagen petitioned under
49 CFR 543.6, Petition: Specific content requirements, which, as
described above, requires manufacturers to provide specific information
about the antitheft device installed as standard equipment on all
vehicles in the line for which an exemption is sought, the antitheft
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.\2\
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\2\ 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,\3\ 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.\4\
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\3\ 49 CFR 543.6(a)(4).
\4\ 49 CFR 543.6(a)(5).
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The following sections describe Volkswagen's petition information
provided pursuant to 49 CFR part 543, Exemption from Vehicle Theft
Prevention. To the extent that specific information in Volkswagen'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).
In a petition dated May 29, 2020, Volkswagen requested an exemption
from the parts-marking requirements of the theft prevention standard
for its Taos vehicle line beginning with MY 2022. Pursuant to section
543.6(a)(1), Volkswagen stated that the antitheft device described in
its petition will be installed as standard equipment its Taos vehicles
starting with MY 2022.\5\
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\5\ Volkswagen also stated that it will offer an audible and
visible alarm as optional equipment on its Taos vehicle 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 antitheft 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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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 Taos vehicle line.
Volkswagen stated that its fifth generation transponder-based
electronic engine immobilizer antitheft device will be installed as
standard equipment on the entire MY 2022 Taos vehicle line. Key
components of the antitheft device will include an adapted ignition key
(ID-transmitter or ``key fob''), instrument cluster, gateway (cluster
to CAN bus, only routing function) and an engine control unit.
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 actively incorporates
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
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mutual identification. If all the data matches, the vehicle can be
started.
In support of its belief that its antitheft device will be as
effective as or more effective than the parts-marking requirement in
reducing and deterring vehicle theft, and in accordance with 49 CFR
543.6(a)(5), Volkswagen provided data on the theft rate of similarly-
sized vehicle lines that had been granted an exemption from the parts-
marking requirement. Volkswagen also 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 Petition
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. As
discussed above, in this case, Volkswagen's petition is granted under
49 U.S.C. 33106(d). Separately, NHTSA finds that Volkswagen has
provided adequate reasons for its belief that the antitheft device for
its 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 the Volkswagen provided about its antitheft device. NHTSA
believes, based on the supporting evidence submitted by Volkswagen,
that the antitheft device described for its 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.
The agency concludes that Volkswagen's antitheft 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 Volkswagen decides not to use the exemption 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 Volkswagen 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
Volkswagen 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
Volkswagen's petition for exemption for the Taos vehicle line from the
parts-marking requirements of 49 CFR part 541, beginning with its MY
2022 vehicles.
Issued under authority delegated in 49 CFR 1.95 and 501.8.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2021-07570 Filed 4-13-21; 8:45 am]
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