[Federal Register Volume 80, Number 54 (Friday, March 20, 2015)]
[Notices]
[Pages 15051-15053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-06384]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard; BMW of North America, 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 BMW of North America, LLC 
(BMW) petition for an exemption of the X1 multi-purpose vehicle line 
(MPV) 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 49 CFR part 541, Federal Motor Vehicle Theft Prevention 
Standard (Theft Prevention Standard). BMW requested confidential 
treatment for specific information in its petition that the agency will 
address by separate letter.

DATES: The exemption granted by this notice is effective beginning with 
the 2016 model year (MY).

FOR FURTHER INFORMATION CONTACT: Ms. Carlita Ballard, Office of 
International Policy, Fuel Economy and Consumer Programs, National 
Highway Traffic Safety Administration, 1200 New Jersey Avenue SE., West 
Building, Room W43-439, Washington, DC 20590. Ms. Ballard's telephone 
number is (202) 366-5222. Her fax number is (202) 493-2990.

SUPPLEMENTARY INFORMATION: In a petition dated November 21, 2014, BMW 
requested an exemption from the parts-marking requirements of the Theft 
Prevention Standard for the X1 MPV vehicle line beginning with MY 2016. 
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 
the entire vehicle line.
    Under 49 CFR 543.5(a), a manufacturer may petition NHTSA to grant 
an exemption for one vehicle line per model year. BMW stated that its 
X1 MPV line will be replacing its X1 passenger car line beginning with 
MY 2016. In its petition, BMW provided a detailed description and 
diagram of the identity, design, and location of the components of the 
antitheft device for

[[Page 15052]]

its X1 MPV line. BMW stated that the X1 MPV line will be installed with 
an engine immobilizer device as standard equipment. Key features of the 
antitheft device will include a key with a transponder, loop antenna 
(coil), engine control unit (DME/DDE) with encoded start release input, 
an electronically coded vehicle immobilizer/car access system (EWS/CAS) 
control unit and a passive immobilizer. BMW will not offer an audible 
or visible alarm feature on the proposed device.
    BMW stated that the antitheft device is a passive vehicle 
immobilizer system. BMW further stated that the EWS immobilizer device 
prevents the vehicle from being driven away under its own engine power. 
BMW further stated that the EWS immobilizer device also fulfills the 
requirements of the European vehicle insurance companies.
    BMW stated that activation of its immobilizer device occurs 
automatically when the engine is shut off and the vehicle key is 
removed from the ignition lock cylinder. Deactivation of the device 
occurs when the Start/Stop button is pressed and the vehicle starting 
process begins. BMW stated that deactivation cannot be carried out with 
a mechanical key, but must occur electronically. Specifically, BMW 
stated that its transponder sends key data to the EWS/CAS control unit. 
The correct key data must be recognized by the EWS/CAS control unit in 
order for the vehicle to start. The transponder contains a chip which 
is integrated in the key and powered by a battery. The transponder also 
consists of a transmitter/receiver which communicates with the EWS/CAS 
control unit. The EWS/CAS control unit provides the interface to the 
loop antenna (coil), engine control unit and starter. The ignition and 
fuel supply are only released when a correct coded release signal has 
been sent by the EWS/CAS control unit to deactivate the device and 
allow the vehicle to start. When the EWS/CAS control unit has sent a 
correct release signal, and after the initial starting value, the 
release signal becomes a rolling, ever-changing, random code that is 
stored in the DME/DDE and EWS/CAS control units. The DME/DDE must 
identify the release signal and only then will the ignition signal and 
fuel supply be released.
    BMW stated that 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, thereby preventing forced entry into the 
vehicle through the passenger doors. The vehicle can be further secured 
by locking the doors and hood using either the key lock cylinder on the 
driver's door or the remote frequency remote control. BMW stated that 
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.
    BMW further stated that all of its vehicles are currently equipped 
with antitheft devices as standard equipment, including the BMW X1 MPV 
line. BMW compared the effectiveness of its antitheft device 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. BMW stated that the antitheft 
device that it intends to install on its X1 MPV line for MY 2016 has 
been sufficient to grant exemptions for other vehicle lines. 
Specifically, BMW has installed its antitheft device on its X1 
(passenger car), X3, X4 and X5 vehicle lines, as well as its Carline 1, 
3, 4, 5, 6, 7, Z4, and MINI vehicle lines, all which have been granted 
parts-marking exemptions by the agency. BMW asserts that theft data 
have indicated a decline in theft rates for vehicle lines that have 
been equipped with antitheft devices similar to that which it proposes 
to install on the X1 MPV line. BMW also stated that for MY/CY 2011, the 
agency's data show that theft rates for its lines are: 0.69 (1-series), 
0.62 (3-series), 0.63 (5-series), 1.08 (7-series), 0.26 (X3), 0.00 
(X5), 0.00 (X6), 0.55 (Z4/M), and 0.35 (MINI). Using an average of 3 
MYs data (2010-2012), NHTSA's theft rates for BMW's 1 series, 3 series, 
5 series, 6 series, 7 series, X3, X5, X6, Z4/M and MINI vehicle lines 
are 0.5503, 07177, 0.7314, 0.0000, 1.7952, 0.2055, 0.5501, 2.5840, 
0.4696 and 0.3770 respectively. Theft data for BMW's X1 (passenger 
car), X4, and Carline 4 is not available.
    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.
    In addressing the specific content requirements of Part 543.6, BMW 
provided information on the reliability and durability of its device. 
To ensure reliability and durability of the device, BMW conducted tests 
and believes that the device is reliable and durable because it 
complied with its own specific standards and the antitheft device is 
installed on other vehicle lines for which the agency has granted a 
parts-marking exemption. Further assuring the reliability and 
durability of the X1 antitheft device, BMW notes that the mechanical 
keys for the X1 MPV line are unique. Specifically, a special key blank, 
a special key cutting machine and the vehicle's unique code are needed 
to duplicate a key. BMW stated that new keys will only be issued to 
authorized persons, and the guide-ways that are milled in the 
mechanical keys make the locks almost impossible to pick and the keys 
impossible to duplicate on the open market.
    BMW's proposed device lacks an audible or visible alarm, therefore, 
this device cannot perform one of the functions listed in 49 CFR 
543.6(a)(3), that is, to call attention to unauthorized attempts to 
enter or move the vehicle. However, in its November 2014 petition, BMW 
asserted that in a previous Federal Register notice published by the 
agency (58 FR 44872, dated August 25, 1993), NHTSA's review of the 
theft data for 10 General Motors' (GM) vehicle lines that had been 
granted partial exemptions concluded that the lack of an audible and 
visible alarm had not prevented the antitheft device from being 
effective and that despite the absence of an audible or visible alarm, 
when placed on vehicle lines as standard equipment, the GM antitheft 
devices ``continue to be as effective in deterring and reducing motor 
vehicle theft as compliance with parts-marking requirements.'' 
Therefore, BMW expects that the X1's antitheft device will be just as 
effective as parts-marking.
    Based on the supporting evidence submitted by BMW, the agency 
believes that the antitheft device for the BMW X1 MPV 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 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.
    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 
supporting 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 BMW has provided adequate reasons for its belief that the 
antitheft device for the X1 MPV line is likely to be as effective in 
reducing and deterring motor vehicle theft as compliance with

[[Page 15053]]

the parts-marking requirements of the Theft Prevention Standard (49 CFR 
part 541). This conclusion is based on the information BMW provided 
about its device.
    For the foregoing reasons, the agency hereby grants in full BMW's 
petition for exemption for the MY 2016 X1 MPV 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 MY. 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 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 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.
    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.

    Issued in Washington, DC, under authority delegated in 49 CFR 
Part 1.95.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2015-06384 Filed 3-19-15; 8:45 am]
 BILLING CODE 4910-59-P