[Federal Register Volume 73, Number 66 (Friday, April 4, 2008)]
[Notices]
[Pages 18606-18607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-7098]



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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Vehicle Theft Prevention 
Standard; Volkswagen

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 petition of Volkswagen Group 
of America (VW) in accordance with Sec.  543.9(c)(2) of 49 CFR part 
543, Exemption from the Theft Prevention Standard, for the Audi Q5 
vehicle line beginning with model year (MY) 2009. 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.

DATES: The exemption granted by this notice is effective beginning with 
model year (MY) 2009.

FOR FURTHER INFORMATION CONTACT: Ms. Carlita Ballard, Office of 
International Policy, Fuel Economy and Consumer Programs, NHTSA,1200 
New Jersey Avenue, SE., West Building, W43-439, Washington, DC 20590. 
Ms. Ballard's phone number is (202) 366-0846. Her fax number is (202) 
493-2290.

SUPPLEMENTARY INFORMATION: In a petition dated February 15, 2008, VW 
requested an exemption from the parts-marking requirements of the Theft 
Prevention Standard (49 CFR part 541) for the Audi Q5 vehicle line 
beginning with MY 2009. The petition requested an exemption from parts-
marking 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 an 
exemption for one of its vehicle lines per year. VW'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.
    VW's petition provided a detailed description and diagram of the 
identity, design, and location of the components of the antitheft 
device for its new multipurpose vehicle line. VW will install its 
passive, transponder-based, electronic immobilizer antitheft device as 
standard equipment on its Audi Q5 vehicle line beginning with MY 2009. 
Key components of the antitheft device will include a passive 
immobilizer, an immobilizer control unit, an electronic ignition lock, 
an adapted ignition key, an engine control unit, an electronic steering 
column lock (ELV), and an automatic gear (if available). VW stated that 
the device is activated by turning the key in either of the front door 
locks to the ``lock'' position or by locking the vehicle with the 
remote key fob or an optional keyless entry and locking control. The 
antitheft device will also include an audible and visible alarm feature 
that will monitor and protect the doors, rear hatch, and hood against 
unauthorized entry. If an unauthorized entry is attempted, the horn 
will sound and the vehicle's lights will flash. VW also stated that the 
vehicle's radio, amplifier and multi-media interface are theft 
deterrent protected and if removed from the car, the components will 
not operate unless re-activated by an authorized dealer.
    VW stated that the Audi Q5's immobilizer prevents the vehicle from 
being operated by unauthorized persons. When the ignition key is turned 
to the ``on'' position, the key's transponder, the immobilizer control 
unit, the ELV, and the engine control unit initiate a complex set of 
tests to determine if vehicle start-up should be enabled. If the tests 
fail, the vehicle cannot be started. The ignition system is monitored 
in the sense that if an external voltage is applied in an attempt to 
by-pass the immobilizer system, the alarm is triggered.
    In addressing the specific content requirements of 543.6, VW 
provided its own test information on the reliability and durability of 
its device. VW 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.
    In its petition, VW further stated that because the Audi Q5 is a 
new vehicle line, there is no historic theft data published for a 
similar Audi vehicle line. VW also stated that its antitheft system 
will be at least as, or more, effective in reducing and deterring theft 
as other comparable vehicles installed with an alarm and engine 
immobilizer. VW further stated that the theft reduction benefits from 
immobilizer systems cited in recently granted petitions for exemptions 
have included a 70% reduction in 1997 immobilizer-equipped Ford Mustang 
thefts compared to 1995 models without an immobilizer. Based on Highway 
Loss Data Institute (HLDI) data, 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. The agency agrees that the device is substantially 
similar to devices in these and other vehicle lines for which the 
agency has already granted exemptions.
    The agency also notes that the device will provide the five types 
of performance listed in Sec.  543.6(a)(3): promoting activation; 
attracting attention to the efforts of unauthorized persons to enter or 
operate a vehicle by means other than a key; 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.
    Pursuant to 49 U.S.C. 33106 and 49 CFR 543.7(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 VW has provided adequate reasons for its belief that the 
antitheft device for the Audi Q5 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). This conclusion is based on the information VW 
provided about its device.
    For the foregoing reasons, the agency hereby grants in full VW's 
petition for exemption for the Audi Q5 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 VW 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 according to the requirements under 49 CFR 541.5 and 
541.6 (marking of major

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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. Section 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, section 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 
section 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: March 31, 2008.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
[FR Doc. E8-7098 Filed 4-3-08; 8:45 am]
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