[Federal Register Volume 68, Number 238 (Thursday, December 11, 2003)]
[Notices]
[Pages 69127-69129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30689]


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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 BMW 6 
vehicle line, 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 2004 model year (MY).

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

SUPPLEMENTARY INFORMATION: In a petition dated July 21, 2003, BMW of 
North America, Inc. (BMW), requested exemption from the parts-marking 
requirements of the theft prevention standard (49 CFR Part 541) for the 
BMW 6 vehicle line, beginning with MY 2004. 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. Based on the evidence submitted 
by BMW, the agency believes that the antitheft device for the BMW 6 
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 Part 541).
    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 543.5 and the specific content requirements of 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. BMW will install its antitheft device as 
standard equipment on the MY 2004 BMW 6 vehicle line. The antitheft 
device is a passive, electronically-coded vehicle immobilizer (EWS) 
system. The device will prevent the vehicle from being driven away 
under its own engine power in the event the ignition lock and doors 
have been manipulated. The 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 the use of its radio frequency remote control. Locking the 
vehicle door and trunk by using the key cylinder or the radio frequency 
remote control will further secure the vehicle. BMW stated that the 
frequency codes for the remote control constantly change to prevent an 
unauthorized person from opening the

[[Page 69128]]

vehicle by intercepting the signals of its remote control.
    The EWS system consists of a key with a transponder, a loop antenna 
(coil) around the steering lock cylinder, an EWS control unit and an 
engine control unit (DME/DDE) with encoded start release input.
    BMW stated that integrated in the key is a transponder chip that 
consists of a transponder, a small antenna coil, and a memory which can 
be written to and read from. The memory contains its own unique key and 
customer service data. The transponder is a special transmitter/
receiver that communicates with the EWS control through the transceiver 
module.
    BMW states that the EWS control unit provides the interface to the 
loop antenna (coil), engine control unit and starter. The primary tasks 
of the EWS control unit will consist of querying key data from the 
transponder and providing the coded release of the engine management 
for a valid key. BMW also states that the engine control unit with 
coded start release input has been designed in such a manner that the 
ignition and the fuel supply are only released when a correct release 
signal has been sent by the EWS control unit. The EWS control unit 
inspects the key data for correctness and allows the ignition to 
operate and fuel supply to be released when a correct signal has been 
received.
    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. If the doors are open at the 
time of locking, they are automatically 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. Spare keys can only be obtained through the BMW 
dealer because they are not a copy of lost originals, but new keys with 
original electronic identifications. Additionally, spare keys can only 
be obtained when all necessary information (i.e.,VIN, registration 
data, customer data) has been provided by the customer or dealer. Every 
key request is also documented so that any inquiries by insurance 
companies and investigative authorities can be followed up.
    The battery for BMW's 6 vehicle line will be inaccessibly located 
and covered as an additional security measure. Disconnecting the 
battery will not allow unlocking of the vehicle's 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 absence 
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 6 vehicle line for the MY 2004 is exactly the 
same system that BMW installed on its Carline 5 for MY 1997, its 
Carline 3 for MY 1999, its Carline MINI for MY 2002 and its Z4 for MY 
2003. The agency granted BMW's petitions for exemption of its Carline 5 
beginning with the 1997 model year, its Carline 3 beginning with the 
1999 model year, its Carline MINI beginning with the 2002 model year 
and its Carline Z4 beginning with the 2003 model year in full (see 61 
FR 6292, February 16, 1996, 62 FR 62800, November 25, 1997, 66 FR 
33604, June 22, 2001, and 67 FR 45180, July 8, 2002, respectively).
    In order to ensure reliability and durability of the device, BMW 
conducted performance tests based on its own specified standards. BMW 
provided a detailed list of the following tests it conducted: climatic 
tests, high temperature endurance run, thermo-shock 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), 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.
    Based on evidence submitted by BMW, the agency believes that the 
antitheft device for the 6 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 
Part 541).
    The agency believes that the device will provide four of the five 
types of performance listed in 49 CFR 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 (541.6(a)(3)(ii).
    As required by 49 U.S.C. 33106 and 49 CFR 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 antitheft device.
    For the foregoing reasons, the agency hereby grants in full BMW of 
North America's petition for an exemption for the MY 2004 6 vehicle 
line from the parts-marking requirements of 49 CFR Part 541.
    If BMW decides not to use the exemption for this line, it must 
formally notify the agency, and, thereafter, 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 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. Sec.  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 anti-theft device on which the line's 
exemption is based. Further, Sec.  543.9(c)(2) provides for the 
submission

[[Page 69129]]

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 Sec.  543.9(c)(2) could place on exempted vehicle manufacturers 
and itself.
    The agency did not intend 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: December 5, 2003.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
[FR Doc. 03-30689 Filed 12-10-03; 8:45 am]
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