[Federal Register Volume 65, Number 95 (Tuesday, May 16, 2000)]
[Notices]
[Pages 31208-31209]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12260]



[[Page 31208]]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption from the Federal Motor Vehicle Motor Theft 
Prevention Standard; Volkswagen

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

ACTION: Grant of petition for exemption.

-----------------------------------------------------------------------

SUMMARY: This document grants in full the petition of Volkswagen of 
America, Inc. (VW) for an exemption of a new high-theft line, the Audi 
allroad Quattro, from the parts-marking requirements of the Federal 
motor vehicle theft prevention standard. 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.

DATES: The exemption granted by this notice is effective beginning with 
the 2001 model year.

FOR FURTHER INFORMATION CONTACT: Ms. Rosalind Proctor, Office of 
Planning and Consumer Programs, NHTSA, 400 Seventh Street, SW., 
Washington D.C. 20590. Ms. Proctor's phone number is (202) 366-0846. 
Her fax number is (202) 493-2290.

SUPPLEMENTARY INFORMATION: In a petition dated January 4, 2000, VW 
requested an exemption from the parts-marking requirements of 49 CFR 
Part 541, Federal Motor Vehicle Theft Prevention Standard, for the Audi 
allroad Quattro, a new high-theft vehicle line beginning in MY 2001. 
The petition requested an exemption from parts-marking pursuant to 49 
CFR 543, Exemption from Vehicle Theft Prevention Standard, based on the 
installation of an antitheft device as standard equipment for the 
entire vehicle line.
    Review of VW's petition disclosed that certain information was not 
provided in its original petition. Consequently, by telephone call on 
March 17, 2000, VW was informed of its omissions. Subsequently on March 
22, 2000, VW submitted supplemental information providing the omitted 
information. VW's March 22, 2000 submission constitutes a complete 
petition, as required by 49 CFR Part 543.7, in that it met the general 
requirements contained in Sec. 543.5 and the specific content 
requirements of Sec. 543.6.
    In its petition, VW 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: (1) An alarm 
system that activates the vehicle's emergency flasher system and horn 
in the event unauthorized entry is attempted through any of the doors, 
the rear hatch, or the engine compartment; (2) an ultrasonic interior 
monitoring system to detect window breakage or movement inside the 
vehicle; and (3) an electronic engine immobilizer which utilizes a 
transponder in the ignition key.
    In order to ensure the reliability and durability of the device, VW 
conducted tests based on its own specified standards. VW provided a 
detailed list of tests conducted. Because the device complied with 
these tests, VW believes that the device is reliable and durable.
    Volkswagen believes the proposed device will be as effective in 
deterring motor vehicle theft as the devices used in lines for which 
NHTSA has already granted a parts-marking exemption. Specifically, 
Volkswagen based its belief on the theft rate experience of several 
lines with similar devices which have experienced significant theft 
rate reductions, such as the Mitsubishi Diamante, the Toyota Cressida, 
the Nissan Maxima, the Toyota Supra, the Nissan 300ZX, the Mazda RX-7, 
the Audi 5000, the Ford Taurus and some General Motors Chevrolet, 
Pontiac and Cadillac car lines.
    Additionally, VW compared theft rate experiences of its 1992 Jetta 
and Golf/GTI vehicles (with no alarm system) to the theft rate 
experiences of its 1993, 1994 and 1997 model years Jetta and Golf/GTI 
vehicles (with a standard alarm system) to demonstrate the effects of a 
standard alarm systems installation. Based on data from the FBI's 
National Crime Information Center (NCIC), VW showed that the theft 
rates for the 1993, 1994 and 1997 Jetta and Golf/GTI vehicles that have 
been equipped with a standard alarm system resulted in a significant 
decrease in theft rates from its MY 1992 vehicles. The theft rates for 
the 1993, 1994 and 1997 Jetta vehicles were 0.7699, 2.4344 and 2.6010, 
respectively, down from the 1992 theft rate of 7.5005. The theft rates 
for the 1993, 1994 and 1997 Golf/GTI vehicles were 0.6789, 1.5329 and 
2.6010, respectively, down from the 1992 theft rate of 20.2320.
    VW stated that the Vehicle Information Center of Canada (VICC), 
which compiles insurance loss statistics in Canada, conducted a study 
comparing the frequency of theft claims per 100 vehicles for MY 1992 
and 1993 Volkswagen Golf and Jetta lines. The standard alarm system had 
been installed on both lines for MY 1993. The results of the study 
showed a reduction in the frequency of theft claims per 100 vehicles 
for the Jetta and Golf vehicle lines in Canada. Specifically, the 
reductions ranged from 75% for the Jetta line to 90% for the Golf (4-
door) vehicle line.
    Further, VW stated that its Audi lines have historically 
demonstrated theft rates below the median theft rate (3.5826). VW cited 
the theft rankings of the 1995, 1996 and 1997 Audi A6 vehicle line 
equipped with an alarm system as standard equipment. The A6 was granted 
an exemption from the parts-marking standard beginning with MY 1995 
(see 59 FR 55150, November 3, 1994). The theft rates for the 1995, 1996 
and 1997 Audi A6 line were 0.5888, 0.3237 and 1.5512, respectively.
    Based on the evidence submitted by VW, the agency believes that the 
antitheft device for the new 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 (49 CFR 
541).
    The agency believes that the device will provide the types of 
performance listed in 49 CFR Part 543.6(a)(3): Promoting activation; 
attracting attention to unauthorized entries; 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.
    As required by 49 U.S.C. 33106 and 49 CFR part 543.6(a) (4) and 
(5), the agency finds that VW has provided adequate reasons for its 
belief that the antitheft device will reduce and deter theft. This 
conclusion is based on the information VW provided about its device, 
much of which the agency has determined to be confidential. This 
confidential information included a description of reliability and 
functional tests conducted by VW for the antitheft device and its 
components.
    For the foregoing reasons, the agency hereby grants in full VW's 
petition for exemption for the MY 2001 Audi allroad Quattro vehicle 
line from the parts-marking requirements of 49 CFR part 541. VW 
requested confidential treatment for some of the information and 
attachments submitted in support of its petition. In a letter to VW 
dated February 4, 2000, the agency granted the petitioner's request for 
confidential treatment of most aspects of its petition.
    If VW decides not to use the exemption for this line, it should 
formally notify the agency. If such a

[[Page 31209]]

decision is made, the line must be fully marked according to the 
requirements under 49 CFR parts 541.5 and 541.6 (marking of major 
component parts and replacement parts).
    NHTSA notes that if VW 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 on: May 10, 2000.
Stephen R. Kratzke,
Associate Administrator for Safety Performance Standards.
[FR Doc. 00-12260 Filed 5-15-00; 8:45 am]
BILLING CODE 4910-59-P