[Federal Register Volume 72, Number 177 (Thursday, September 13, 2007)]
[Notices]
[Pages 52428-52430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4501]


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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 document grants in full the BMW of North America, LLC 
(BMW) petition for exemption of the Carline 1 vehicle line in 
accordance with 49 CFR part 543, Exemption from the 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 of the 
Theft Prevention Standard (49 CFR Part 541).

DATES: The exemption granted by this notice is effective beginning with 
the 2008 model year (MY).

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Mazyck, Office of 
International Policy, Fuel Economy and Consumer Programs, National 
Highway Traffic Safety Administration, 1200 New Jersey Avenue, SE., 
West Building, Room W43-443, Washington, DC 20590. Ms. Mazyck's 
telephone number is (202) 366-4139. Her fax number is (202) 493-2290.

SUPPLEMENTARY INFORMATION: In a petition dated June 22, 2007, BMW 
requested exemption from the parts-making requirements of the theft 
prevention standard (49 CFR part 541) for the MY 2008 BMW Carline 1 
vehicle line. The petition requested exemption from parts-making 
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.
    Under Sec.  543.5(a), a manufacturer may petition NHTSA to grant 
exemptions for one line of its vehicle lines per year. BMW has 
petitioned the agency to grant an exemption for its Carline 1 vehicle 
line beginning with MY 2008. In its petition, BMW provided a detailed 
description and diagram of the identity,

[[Page 52429]]

design, and location of the components of the antitheft device for its 
Carline 1 vehicle line. BMW will install its passive antitheft device 
as standard equipment on the line. Features of the antitheft device 
will include a key with a transponder, loop antenna (coil) around the 
steering lock cylinder, an electronically-coded vehicle immobilizer 
(EWS) control unit and passive immobilizer. BMW's submission is 
considered a complete petition as required by 49 CFR 543.7, in that it 
meets the general requirements contained in Sec.  543.5 and the 
specific content requirements of Sec.  543.6.
    BMW stated that the EWS immobilizer device prevents the vehicle 
from being driven away under its own engine power. The EWS control unit 
provides the interface to the loop antenna (coil), engine control unit 
and starter. It queries key data from the transponder and provides the 
coded release of the engine management for a valid key. The ignition 
and fuel supply are only released when a correct coded release signal 
has been sent by the EWS control unit, to allow the vehicle to start. 
The immobilizer device is automatically activated when the engine is 
shut off and the vehicle key is removed from the ignition lock 
cylinder. The antitheft device can be further secured by locking the 
vehicle doors and hood using either the key lock cylinder on the 
driver's door or the remote frequency remote control. The frequency for 
the remote control constantly changes to prevent an unauthorized person 
from opening the vehicle by intercepting the signals of its remote 
control. The vehicle is also equipped with a central-locking system 
that can be operated to lock and unlock all doors or to unlock only the 
driver's door, preventing forced entry into the vehicle through the 
passenger doors.
    BMW stated that the proposed antitheft device does not provide any 
visible or audible indication of unauthorized entry. Theft data have 
indicated a decline in theft rates for vehicle lines that have been 
equipped with antitheft devices similar to that which BMW proposes to 
install on the Carline 1 line. The agency has concluded that the lack 
of a visual or audio alarm has not prevented these devices from being 
effective protection against theft.
    The effectiveness of BMW's EWS is compared 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. The antitheft device that VMW intends to 
install on its Carline 1 vehicle line for MY 2008 is the same system 
that BMW installed on its BMW X3 vehicle line, X5, Carline 4, Carline 
5, Carline 6, Carline 7, Carline Z4, and the MINI vehicle line. To 
further substantiate its device's effectiveness, BMW also submitted the 
April 1997 Highway Loss Data Institute's (HLDI) Bulletin on the 
preliminary results of antitheft devices in 1995 BMW models. BMW stated 
that the data demonstrates the performance of the BMW antitheft device 
when it was introduced in the 5 series vehicle line and is indicative 
of the performance it expects from any BMW antitheft device. The report 
compared BMWs equipped with an advanced passive antitheft devices 
installed in 1995 BMW models (i.e., passive activation with an 
electronic chip in the ignition key that must match the vehicle 
electronics) beginning with the January 1, 1995 production to the 
vehicle produced earlier in the model year that were equipped with less 
advanced antitheft technology (i.e., required arming the device by a 
special locking routine and had no electronic-key feature). According 
to BMW, HLDI reported significant decreases were found in both claim 
frequencies and average loss payment per claim for the BMW cars 
equipped with the new antitheft device. Specifically, HLDI's Bulletin 
showed a 73% decrease in relative claim frequency for BMW vehicle lines 
equipped with the new antitheft device as compared to the older device 
and a 78% decrease in relative average loss payment per claim when the 
vehicle line became equipped with the new device. Additionally, the 
agency notes that the most currently available theft data for BMW 
vehicle lines for which the agency has granted parts marking exemptions 
show that theft rates for these lines are all below the median (3.5826) 
and have remained so for the past three years. BMW has concluded that 
the antitheft device proposed for the Carline 1 vehicle line is no less 
effective than those devices and similar for which NHTSA has already 
been granted exemptions from the parts-marking requirements.
    In addressing the specific content requirements of 543.6, BMW 
provided information on the reliability and durability of its device. 
To ensure reliability and durability of the device BMW conducted tests 
based on its own specified standards and believes that the device is 
reliable and durable since the device complied with its specified 
requirements for each test. BMW provided a detailed list of the tests 
conducted. BMW also stated that because the EWS immobilizer device is 
incorporated into the ignition, fuel injection, and starter circuit of 
the vehicle and is activated passively, reliability and durability of 
the system have to be ensured because the vehicle will not start if the 
EWS system malfunctions. BMW further stated that, if a malfunction 
should occur, the EWS device incorporates a microprocessor that can be 
accessed by using BMW diagnostic equipment to diagnose and correct the 
cause of the problem.
    Additionally, the mechanical keys are unique. A special key blank, 
a special key cutting machine and the car's unique code are needed to 
duplicate a key. BMW stated that new keys will only be issued to 
authorized persons.
    Based on the evidence submitted by BMW, the agency believes that 
the antitheft device for the BMW Carline 1 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).
    Based on the information BMW has provided about its device, the 
agency concludes that the device will provide four of the five 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.
    As required by 49 U.S.C. 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.
    For the foregoing reasons, the agency hereby grants in full BMW's 
petition for exemption for the Carline 1 vehicle line from the parts-
marking requirements of 49 CFR part 541. 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 part 
543.7(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 BMW decides not to use the exemption for this line, it must 
formally notify the agency. If such a decision is made, the line must 
be fully marked as

[[Page 52430]]

required by 49 CFR parts 541.5 and 541.6 (marking of major component 
parts and replacement parts).
    NHTS 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 anti-theft device on which the line's 
exemption is based. Further, Sec.  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 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: September 7, 2007.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
[FR Doc. 07-4501 Filed 9-12-07; 8:45 am]
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