[Federal Register Volume 62, Number 227 (Tuesday, November 25, 1997)]
[Notices]
[Pages 62800-62801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30903]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Vehicle Theft Prevention 
Standard; BMW

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Grant of petition for exemption.

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SUMMARY: This notice grants in full the petition of BMW of North 
America, Inc., (BMW) for an exemption of a high-theft line, the Carline 
3, from the parts-marking requirements of the vehicle theft prevention 
standard. This 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.

DATES: The exemption granted by this notice is effective beginning with 
the 1999 model year (MY).

FOR FURTHER INFORMATION CONTACT: Mr. Sanjay Patel, Office of Planning 
and Consumer Programs, NHTSA, 400 Seventh Street, S.W., Washington, 
D.C. 20590. Mr. Patel's telephone number is (202) 366-0846. His fax 
number is (202) 493-2739.

SUPPLEMENTARY INFORMATION: In a petition dated August 28, 1997, BMW of 
North America, Inc. (BMW), requested exemption from the parts-marking 
requirements of the theft prevention standard (49 CFR Part 541) for the 
Carline 3, beginning with MY 1999. The petition has been filed pursuant 
to 49 CFR Part 543, Exemption from Vehicle Theft Prevention Standard, 
based on the installation of an antitheft device as standard equipment 
for an entire vehicle line.
    BMW's submittal is considered a complete petition, as required by 
49 CFR Part 543.7, in that it meets the general requirements contained 
in Sec. 543.5 and the specific content requirements of Sec. 543.6. In 
its petition, BMW provided a detailed description and diagram of the 
identity, design, and location of the components of the antitheft 
device for the new line. This antitheft device includes an electronic 
immobilizer system, consisting of a key with a transponder (a 
transmitter/receiver) that is a microchip that is integrated into the 
key. This transponder will allow the ignition to operate and fuel 
supply to be released when a correct signal has been received. BMW 
states that its electronically-coded vehicle immobilizer (EWS) will 
prevent the vehicle from being driven away under the power of its own 
engine by manipulations on the ignition lock and on the doors. The 
immobilizer device is automatically activated when the engine is shut 
off and the vehicle key is removed from the ignition lock cylinder. In 
addition to the key, the antitheft device can be activated by use of 
its radio frequency remote control. The frequency codes of the remote 
control are ever-changing which prevents an unauthorized person from 
opening the vehicle by intercepting the signals.
    The vehicle is also equipped with a central-locking system which 
locks all doors, the hood, the trunk and fuel filler lid. To prevent 
locking the keys in the car upon exiting, the driver door can only be 
locked with a key or by the radio frequency remote control after it is 
closed. This also locks the other doors, and if they are open at the 
time of locking, the doors are locked when they are closed.
    BMW mentioned the uniqueness of its locks and its ignition key. BMW 
stated that its vehicle's locks are almost impossible to pick, and its 
ignition key cannot be duplicated on the open market. BMW also stated 
that a special key blank, key-cutting machine and owner's individual 
code are needed to cut a new key and that its key blanks, machines and 
codes will be closely controlled and new keys will only be issued to 
authorized persons. Additionally, spare keys can only be obtained 
through the BMW dealer because they are not a copy of lost originals, 
but new keys with their original electronic identification. Every key 
request is also documented so that any inquiries by insurance companies 
and investigative authorities can be followed up on.
    The battery for BMW's Carline 3 will be inaccessibly located and 
covered as an additional security measure. Therefore, even if a thief 
does manage to penetrate and disconnect the battery, it will not unlock 
the doors. However, in the event of a crash, an inertia switch will 
automatically unlock all the doors.
    BMW also stated that its antitheft device does not incorporate any 
audible or visual alarms. However, based on the declining theft rate 
experience of other vehicles equipped with devices that do not have an 
audio or visual alarm for which NHTSA has already exempted from the 
parts-marking requirements, the agency has concluded that the data 
indicate that lack of a visual or audio alarm has not prevented these 
antitheft devices from being effective protection against theft.
    BMW compared the device proposed for its new line with devices 
which NHTSA has previously determined to be as effective in reducing 
and deterring motor vehicle theft as would compliance with the parts-
marking requirements of Part 541, and has concluded that the antitheft 
device proposed for this new line is no less effective than those 
devices in the lines for which NHTSA has already granted exemptions 
from the parts-marking requirements. The antitheft system that BMW 
intends to install on its Carline 3 for the MY 1999 is exactly the same 
system that BMW installed on its Carline 5 for MY 1997. The agency 
granted BMW's petition for exemption of its Carline 5 in full beginning 
with the 1997 model year (See 61 FR 6292, February 16, 1996).
    In order to ensure reliability and durability of the device, BMW 
stated that it conducted performance tests under BMW Standard 600 13.0, 
Parts 1 and 2, e.g., climatic tests, high temperature endurance run, 
thermoshock test in water, chemical resistance, vibrational load, 
electrical ranges, mechanical shock tests, and electromagnetic field 
compatibility.
    Additionally, BMW stated that its immobilizer system fulfills the 
requirements of the European vehicle insurance companies which became 
standard as of January 1995. The requirements prescribe that the 
vehicle must be equipped with an electronic vehicle immobilizing device 
which works independently from the mechanical locking system and 
prevents the operation of the vehicle through the use of coded 
intervention in the engine management system. In addition, the device 
must be self-arming (passive),

[[Page 62801]]

and must become effective upon leaving the vehicle, or not later than 
the point at which the vehicle is locked, and must deactivate the 
vehicle only by electronic means and not with the mechanical key. BMW 
also stated that the doors and ignition locks for the Carline 3 conform 
to Swedish Regulation F42-1975, which requires a minimum of five 
minutes resistance to the application of commonly available tools.
    Based on evidence submitted by BMW, the agency believes that the 
antitheft device for the Carline 3 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 (49 CFR 
Part 541).
    The agency concludes that the device will provide the types of 
performance listed in Sec. 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 device 
lacks the ability to attract attention to the efforts of unauthorized 
persons to enter or operate a vehicle by a means other than a key 
(Sec. 543.6(a)(3)(ii)).
    As required by 49 U.S.C. Sec. 33106 and 49 CFR Part 543.6(a) (4) 
and (5), the agency finds that BMW has provided adequate reasons for 
its belief that the antitheft device will reduce and deter theft. This 
conclusion is based on the information BMW provided about its device.
    For the foregoing reasons, the agency hereby grants in full BMW's 
petition for exemption for Carline 3 from the parts-marking 
requirements of 49 CFR Part 541.
    If BMW decides not to use the exemption for this line, it should 
formally notify the agency. If such a decision is made, the line must 
be fully marked according to the requirements under 49 CFR Parts 541.5 
and 542.6 (marking of major component parts and replacement parts).
    NHTSA notes that if BMW 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. Part 543.7(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, Part 543.9(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 
that exemption.'' The agency wishes to minimize the administrative 
burden that Part 543.9(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 the 
manufacturer 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.

    Authority: 49 U.S.C. 33106; delegation of authority at 49 CFR 
1.50.

    Issued: November 18, 1997.
L. Robert Shelton,
Associate Administrator for Safety Performance Standards.
[FR Doc. 97-30903 Filed 11-24-97; 8:45 am]
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