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Petition for Exemption From the Federal Motor Vehicle Theft Prevention Standard; Volkswagen Group of America, Inc. Publication: Federal Register Agency: National Highway Traffic Safety Administration Byline: Raymond R. Posten Date: 13 February 2024 Subjects: American Government  , Crime
Topic: Volkswagen ID.7 |
[Federal Register Volume 89, Number 30 (Tuesday, February 13, 2024)]
[Notices]
[Pages 10149-10152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-02865]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
Petition 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
ID.7 vehicle line beginning in model year (MY) 2025. The petition is
granted because the Agency has determined that the antitheft device to
be placed on the 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.
Volkswagen
[[Page 10150]]
also requested confidential treatment for specific information in its
petition. Therefore, no confidential information provided for purposes
of this notice has been disclosed.
DATES: The exemption granted by this notice is effective beginning with
the 2025 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 49 CFR 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 with an antitheft device as standard
equipment 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.\1\
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\1\ 49 CFR 543.7 specifies that the manufacturer must include a
statement that their entire vehicle line is equipped with an
immobilizer that meets one of the following standards:
(1) The performance criteria (subsections 8 through 21) of
C.R.C, c. 1038.114, Theft Protection and Rollaway Prevention (in
effect March 30, 2011), as excerpted in appendix A of [part 543];
(2) National Standard of Canada CAN/ULC-S338-98, Automobile
Theft Deterrent Equipment and Systems: Electronic Immobilization
(May 1998);
(3) United Nations Economic Commission for Europe (UN/ECE)
Regulation No. 97 (ECE R97), Uniform Provisions Concerning Approval
of Vehicle Alarm System (VAS) and Motor Vehicles with Regard to
Their Alarm System (AS) in effect August 8, 2007; or
(4) UN/ECE Regulation No. 116 (ECE R116), Uniform Technical
Prescriptions Concerning the Protection of Motor Vehicles Against
Unauthorized Use in effect on February 10, 2009.
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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 the Agency
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.\2\
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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\2\ 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 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 ID.7 vehicle line
beginning in MY 2025.
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 2025. 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 include 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.\3\
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\3\ 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 their
belief that the antitheft device will be effective in
[[Page 10151]]
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,\4\ and the reasons for their 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. In support of this belief,
the petitioners should include 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.\5\
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\4\ 49 CFR 543.6(a)(4).
\5\ 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.\6\
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\6\ 49 CFR 512.20(a).
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II. Volkswagen's Petition for Exemption
In a petition dated May 15, 2025, Volkswagen requested an exemption
from the parts-marking requirements of the theft prevention standard
for its ID.7 vehicle line beginning with MY 2025.
In its petition, Volkswagen provided a detailed description and
diagram of the identity, design, and location of the components of the
antitheft device for its ID.7 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 2025 ID.7 vehicle line. Volkswagen also stated that its ID.7 is an
electric vehicle that will be equipped with a RWD or an AWD
transmission. Key components of the antitheft device will include an
adapted ignition key (ID-transmitter or ``key fob''), In Car
Application Server 1 (ICAS1) with integrated gateway (cluster to CAN
bus, only routing function) and a Power Control Unit (LSG1) in case of
4 motion (all wheel drive) (LSG1 and LSG2). Ford stated that an audible
and visual alarm will be offered as optional equipment.
Pursuant to Section 543.6(a)(3), Volkswagen explained 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 mutual identification. If all
the data matches, the vehicle can be started.
As required in section 543.6(a)(3)(v), Volkswagen provided
information on the reliability and durability of its proposed device.
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.
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. The Agency
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 four of the five types of performance features listed in
section 543.6(a)(3): promoting activation; 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
[[Page 10152]]
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 ID.7 vehicle line from the
parts-marking requirements of 49 CFR part 541, beginning with its MY
2025 vehicles.
Issued under authority delegated in 49 CFR 1.95 and 501.8.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2024-02865 Filed 2-12-24; 8:45 am]
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