[Federal Register Volume 73, Number 96 (Friday, May 16, 2008)]
[Notices]
[Pages 28548-28549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10983]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Vehicle Theft Prevention 
Standard; smart USA Distributor LLC

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 smart USA 
Distributor LLC (smart USA) in accordance with Sec.  543.9(c)(2) of 49 
CFR Part 543, Exemption from the Theft Prevention Standard, for the 
smart fortwo 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. smart USA is an authorized importer of smart brand 
vehicles manufactured by Daimler AG. smart USA requested confidential 
treatment for the information and attachments submitted in support of 
its petition. The agency will address smart USA's request for 
confidential treatment by separate letter.

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

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Mazyck, International 
Policy, Fuel Economy and Consumer Programs, NHTSA, 1200 New Jersey 
Avenue, SE., Washington, DC 20590. Ms. Mazyck's telephone number is 
(202) 366-0846. Her fax number is (202) 493-2990.

SUPPLEMENTARY INFORMATION: In a petition dated January 22, 2008, smart 
USA requested an exemption from the parts-marking requirements of the 
Theft Prevention Standard (49 CFR Part 541) for the smart USA fortwo 
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. smart USA'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.
    smart USA's petition provided a detailed description and diagram of 
the identity, design, and location of the components of the antitheft 
device for the fortwo vehicle line. Although smart USA has requested 
confidential treatment of specific details of the system's operation, 
design, effectiveness and durability, NHTSA is, for the purposes of 
this petition, disclosing the following general information. smart USA 
will install its passive antitheft device as standard equipment on the 
vehicle line beginning with MY 2009. The antitheft device to be 
installed on the MY 2009 fortwo is equipped with an access code 
protected locking system and a transponder-based electronic immobilizer 
system. Features of the antitheft device will include an immobilizer 
consisting of an operational controller (SAM), transponder ignition 
keys and an engine control transponder reader unit as standard 
equipment. smart USA states that the vehicle key, SAM, engine control 
unit, fuel injection system and starter must all independently verify 
the presence of a code unique only to that vehicle. The smart USA 
fortwo will be installed with a malfunction warning symbol indicator on 
the instrument cluster. Additionally, the fortwo vehicle line will have 
an optional alarm system which will monitor all the doors and tailgate 
of the vehicle. The audible and visual alarms are activated when an 
unauthorized person attempts to enter or move the vehicle by 
unauthorized means.
    smart USA stated that the immobilizer device prevents the engine 
from running unless a valid key is put into the ignition. Turning the 
valid key in the ignition is required to activate or deactivate the 
immobilizer. smart USA further stated that the immobilizer is armed 
immediately after the ignition is turned off regardless of whether the 
doors are opened or are locked.
    There is currently no available theft rate data for the fortwo 
vehicle line as it is a new vehicle line beginning with MY 2008. smart 
USA provided Mercedes-Benz C-Line Chassis vehicle line as an example of 
a vehicle line subject to the parts-marking requirements (49 CFR part 
541) that are equipped with ignition immobilizer systems as standard 
equipment. smart USA reported that NHTSA's theft rate for the C-Line 
Chassis vehicle for model years prior to 1998 (1994 through 1997) when 
an immobilizer was not installed as standard equipment resulted in an 
average theft rate of 1.6437. smart USA reported that, since the 
introduction of immobilizer systems as standard equipment on the C-Line 
Chassis vehicles, the average theft rate for MY's 1998 through 2004 is 
1.4167, which is below the 1990/1991 median theft rate of 3.5826. smart 
USA stated that it believes the data indicate that the immobilizer 
system was effective in contributing to a reduction in theft rates for 
the C-Line Chassis at an average of 13.8 percent.
    On the basis of this comparison, smart USA stated that the 
immobilizer in the fortwo vehicle line is functionally equivalent to 
the systems used in the Mercedes-Benz S-Line, E-Line and C-Line Chassis 
vehicles beginning with MY 2006, 2007 and 2008, respectively. smart USA 
has concluded that the proposed antitheft device is no less effective 
than those devices installed on lines for which NHTSA has already 
granted full exemption from the parts-marking requirements.
    In addressing the specific content requirements of 543.6, smart USA 
provided information on the reliability and durability of its proposed 
device. Daimler AG has conducted tests based on its own specified 
standards for reliability and durability. smart USA provided a detailed 
list of the tests conducted, and believes that the device is reliable 
and durable since the device complied with its specified requirements 
for each test. Additionally, smart USA stated that it has obtained test 
approval according to regulatory requirements that are based on the 
testing parameters of the International Standards Organization 
regulations.
    Based on the confidential material submitted by smart USA, the 
agency believes that the antitheft device for the fortwo 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 smart 
USA provided about the 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 smart USA has

[[Page 28549]]

provided adequate reasons for its belief that the antitheft device will 
reduce and deter theft. This conclusion is based on the information 
smart USA provided about its antitheft device.
    For the foregoing reasons, the agency hereby grants in full smart 
USA's petition for exemption for the fortwo 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 smart USA 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 parts 
541.5 and 541.6 (marking of major component parts and replacement 
parts).
    NHTSA notes that if smart USA 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, 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 12, 2008.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
 [FR Doc. E8-10983 Filed 5-15-08; 8:45 am]
BILLING CODE 4910-59-P