[Federal Register Volume 78, Number 160 (Monday, August 19, 2013)]
[Notices]
[Pages 50489-50491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-19987]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Vehicle Theft Prevention 
Standard; Volkswagen Group of America, Inc.

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 Volkswagen Group of America, 
Inc.'s (Volkswagen) petition for exemption of the Audi confidential 
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, Federal 
Motor Vehicle Theft Prevention Standard. Volkswagen requested 
confidential treatment for specific information in its petition. The 
agency will address Volkswagen's request for confidential treatment by 
separate letter.

DATES: The exemption granted by this notice is effective beginning with 
the 2015 model year.

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Mazyck, Office of 
International Policy, Fuel Economy and Consumer Programs, NHTSA, West 
Building, W43-443, 1200 New Jersey Avenue SE., Washington, DC 20590. 
Ms. Mazyck's phone number is (202) 366-4139. Her fax number is (202) 
493-2990.

SUPPLEMENTARY INFORMATION: In a petition dated April 9, 2013, 
Volkswagen requested an exemption from the parts-marking requirements 
of the Theft Prevention Standard (49 CFR part 541) for the new MY 2015 
Audi vehicle line. The petition requested an exemption from parts-
marking requirement 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.

[[Page 50490]]

    Under 49 CFR part 543.5(a), a manufacturer may petition NHTSA to 
grant an exemption for one vehicle line per model year. In its 
petition, Volkswagen provided a detailed description and diagram of the 
identity, design, and location of the components of the antitheft 
device for its Audi vehicle line. Volkswagen will install its 
transponder-based electronic engine immobilizer antitheft device as 
standard equipment on its Audi vehicle line beginning with MY 2015. 
Volkswagen stated that its immobilizer device is aimed to actively 
incorporate the engine control unit into the evaluation and monitoring 
process. Key components of the antitheft device will include a passive 
immobilizer, a warning message indicator, a transponder ignition key 
(key fob), an engine control unit and an immobilizer control unit. 
Volkswagen stated that its Audi vehicle line will also be available 
with an optional keyless entry and locking control, and a keyless start 
feature. Volkswagen stated that the keyless entry and locking control 
uses a transponder key that allows the doors to be locked by touching a 
button on the outside door handle of the vehicle door, or to be opened 
by touching the outside door handle when the key fob is near the door. 
Volkswagen also stated that its antitheft device will include an 
audible and visible alarm system as standard equipment. Volkswagen's 
submission is considered a complete petition as required by 49 CFR 
543.7, in that it meets the general requirements contained in 49 CFR 
543.5 and the specific content requirements of 49 CFR 543.6. Volkswagen 
stated that the immobilizer is activated automatically after the key is 
removed from the ignition lock, or for the keyless system, after the 
key fob is removed from the vehicle (i.e., ignition off). Deactivation 
of the immobilizer device occurs when the ignition is turned on or the 
key transponder is recognized by the immobilizer control unit. The key 
transponder sends a fixed code to the immobilizer control unit. If this 
is identified as the correct code, a variable code is generated in the 
immobilizer control unit and sent to the transponder. A secret 
arithmetic process is then started according to a set of specific 
equations. The results of the computing process are evaluated in the 
control unit and if verified, the vehicle key is acknowledged as 
correct. The engine control unit then sends a variable code to the 
immobilizer control unit. If all the data matches, start-up of the 
vehicle is enabled. Volkswagen stated that a new variable code is 
generated every time the immobilizer goes through the secret computing 
process. Therefore, Volkswagen believes that the code is 
undecipherable.
    Volkswagen also informed the agency that the antitheft device will 
also include an audible and visible alarm feature as standard 
equipment. When the alarm system is activated, the horn will sound and 
the vehicle's exterior lights will flash when unauthorized entry is 
attempted by opening the hood, doors or luggage compartment. The 
antitheft alarm system is also activated when the vehicle is locked by 
pressing the lock button on the remote control vehicle key. 
Deactivation of the alarm system is performed by opening the vehicle 
with the key fob, using the mechanical key in the driver's door lock 
cylinder or opening the vehicle using the keyless entry and locking 
control.
    In addressing the specific content requirements of 49 CFR 543.6, 
Volkswagen provided information on the reliability and durability of 
its proposed device. To ensure reliability and durability of the 
device, Volkswagen stated that the antitheft device has been tested for 
compliance to its corporate requirements, including those for 
electrical and electronic assemblies in motor vehicles related to 
performance.
    In support of its belief that its antitheft device will be as or 
more effective in reducing and deterring vehicle theft than the parts-
marking requirement, Volkswagen referenced the effectiveness of 
immobilizer devices installed on other vehicles for which NHTSA has 
granted exemptions. Specifically, Volkswagen referenced information 
from the Highway Loss Data Institute which showed that 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. Additionally, Volkswagen 
stated that the proposed device is similar to the antitheft device 
installed on its Audi A3 vehicle line which was granted an exemption by 
the agency on March 13, 2009 (see 74 FR 10984). Using an average of 2 
MYs' data (2010 and preliminary 2011), the theft rate for the Audi A3 
vehicle line was 1.1785, which is significantly lower than the median.
    Based on the supporting evidence submitted by Volkswagen on the 
device, the agency believes that the antitheft device for the Audi 
vehicle line will likely 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 
concludes that the device will provide the five types of performance 
listed in 49 CFR 543.6(a)(3): promoting activation; attracting 
attention to the efforts of an unauthorized person to enter or move 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 Volkswagen has provided adequate reasons for its belief that 
the antitheft device for the Volkswagen Audi 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 
Volkswagen provided about its device.
    For the foregoing reasons, the agency hereby grants in full 
Volkswagen's petition for exemption for the Volkswagen Audi vehicle 
line from the parts-marking requirements of 49 CFR part 541, beginning 
with the 2015 model year vehicles. 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 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 Volkswagen 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 component parts and replacement parts).
    NHTSA notes that if Volkswagen wishes in the future to modify the 
device on which this exemption is based, the company may have to submit

[[Page 50491]]

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.

    Dated: July 29, 2013.
Christopher J. Bonanti,
Associate Administrator for Rulemaking.
    [Signature page, Grant of Petition for Exemption, 2015 VW 
AudiConfidential]
[FR Doc. 2013-19987 Filed 8-16-13; 8:45 am]
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