[Federal Register Volume 80, Number 236 (Wednesday, December 9, 2015)]
[Notices]
[Pages 76615-76617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30930]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard; Jaguar Land Rover 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 Jaguar Land Rover North 
America LLC's, (Jaguar Land Rover) petition for an exemption of the 
Jaguar XE vehicle line in accordance with 49 CFR part 543, Exemption 
from Vehicle 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).

DATES: The exemption granted by this notice is effective beginning with 
the 2017 model year (MY).

FOR FURTHER INFORMATION CONTACT: Ms. Carlita Ballard, Office of 
International Policy, Fuel Economy and Consumer Programs, NHTSA, W43-
439, 1200 New Jersey Avenue SE., Washington, DC 20590. Ms. Ballard's 
phone number is (202) 366-5222. Her fax number is (202) 493-2990.

SUPPLEMENTARY INFORMATION: In a petition dated October 9, 2015, Jaguar 
Land Rover requested an exemption from the parts-marking requirements 
of the Theft Prevention Standard for the Jaguar XE vehicle line 
beginning with MY 2017. 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 part 543.5(a), a manufacturer may petition NHTSA to 
grant an exemption for one vehicle line per model year. In its 
petition, Jaguar Land Rover provided a detailed description and diagram 
of the identity, design, and location of the components of the 
antitheft device for the Jaguar XE vehicle line. Jaguar Land Rover 
stated that the MY 2017 Jaguar XE vehicle line will be equipped with a 
passive, transponder based, electronic engine immobilizer antitheft 
device as standard equipment. Key components of its antitheft device 
will include a power train control module (PCM), instrument cluster, 
body control module (BCM), remote frequency receiver (RFR), remote 
frequency actuator (RFA), immobilizer antenna unit (IAU), Smart Key, 
and door control units (DCU). Jaguar Land Rover stated that its 
antitheft device will also be installed with an audible and visual 
perimeter alarm system as standard equipment. If unauthorized entry is 
attempted by opening the vehicle's hood, trunk or doors, the alarm will 
sound and the vehicle's exterior lights will flash. Jaguar Land Rover 
also stated that the perimeter alarm system can be armed either with 
the Smart Key or programmed to be passively armed.
    Jaguar Land Rover'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.
    The immobilizer device is automatically activated when the Smart 
Key is removed from the vehicle. Deactivation occurs once the driver 
approaches the vehicle by pulling on the driver's door handle or using 
the Smart Key unlock button to unlock the doors. Jaguar Land Rover 
stated that the Smart Key is programmed and synchronized to the vehicle 
through the means of a unique identification key code and a randomly 
generated secret code that is unique to each vehicle.
    In addressing the specific content requirements of Sec.  543.6, 
Jaguar Land Rover provided information on the reliability and 
durability of its proposed device. To ensure reliability and durability 
of the device, Jaguar Land Rover conducted tests based on its own 
specified standards. Jaguar Land Rover provided a detailed list of the 
tests conducted (i.e., temperature and humidity cycling, high and low 
temperature cycling, mechanical shock, random vibration, thermal 
stress/shock tests, material resistance tests, dry heat, dust and fluid 
ingress tests). Jaguar Land Rover stated that it believes that its 
device is reliable and durable because it has complied with specified 
requirements for each test. Jaguar Land Rover stated that reliability 
and durability of its device is further supported by equipping its 
vehicles with a key recognition sequence that has over a billion code 
combinations with encrypted data that are secure against duplication. 
Jaguar Land Rover stated that the coded data transfer between the 
modules that will be installed on its XE vehicles use a unique, secure 
identifier, a random number and a secure public algorithm. Jaguar Land 
Rover further

[[Page 76616]]

stated that since the Jaguar XE vehicle line will utilize a push button 
vehicle ignition, it does not have a conventional mechanical key barrel 
which would allow for forcible bypass of the key-locking system.
    Jaguar Land Rover stated that there will be three methods of system 
operation for its XE vehicle line. Specifically, operation of the 
engine is accomplished when either the Smart Key is automatically 
detected by the vehicle, the vehicle is unlocked using the Smart Key 
unlock button or by using the emergency key blade. Jaguar Land Rover 
stated that automatic detection of the Smart key method occurs when 
authentication of the correct Smart Key via a low frequency to remote 
frequency challenge response sequence occurs after the driver/operator 
approaches the vehicle, pulls the driver's door handle, and unlocks the 
doors. When the driver presses the ignition start button, a search 
begins to find and authenticate the Smart Key within the vehicle 
interior. Jaguar Land Rover stated that if this is successful, the 
information is passed through a coded data transfer to the BCM via the 
RFA. Then, the BCM will pass the valid key status to the instrument 
cluster, send the ``key valid'' message to the PCM, initiate a coded 
data transfer and authorize the engine to start. Method two of 
unlocking the vehicle with the Smart Key unlock button occurs when the 
driver approaches the vehicle; presses the Smart Key unlock button and 
unlocks the doors. Jaguar Land Rover stated that once the driver 
presses the ignition start button, the operation process is the same as 
method one. Jaguar Land Rover stated that if the Smart Key has a 
discharged or damaged battery, the driver/operator can use method three 
of removing an emergency key blade from the Smart Key to unlock the 
doors. After using this method, once the driver presses the ignition 
start button, a search begins to find and authenticate the Smart Key 
within the vehicle interior. If this is unsuccessful, the Smart Key 
needs to be docked under the foot well lamp on the driver's side knee 
bolster. Once the Smart Key is placed in the correct position and the 
ignition start button is pressed again, the BCM and Smart Key enter a 
coded data exchange via the immobilizer antenna unit. The BCM passes 
the valid key status to the instrument cluster, via a code data 
transfer, and then the BCM sends the ``key valid'' message to the PCM 
initiating a coded data transfer. If successful, the engine will start 
the vehicle.
    Jaguar Land Rover stated that the Jaguar XE is a new vehicle line 
and therefore theft rate data is not available. Jaguar Land Rover 
further stated that its immobilizer antitheft device is substantially 
similar to the antitheft device installed on the Jaguar XF-Type, Land 
Rover Discovery Sport, Jaguar F-Type, Jaguar XJ, and the Land Rover 
Range Rover Evoque vehicle lines which have all been granted parts-
marking exemptions by the agency. Jaguar Land Rover stated that based 
on MY 2012 theft information published by NHTSA, the Jaguar Land Rover 
vehicles equipped with immobilizers had a combined theft rate of 0.81 
per thousand vehicles, which is below NHTSA's overall theft rate of 
1.13 thefts per thousand vehicles. Using an average of 3 MYs data 
(2011-2013), NHTSA's theft rates for the Jaguar XF-Type, Jaguar XJ and 
the Land Rover Range Rover Evoque are 0.7237, 1.1466 and 0.4495 
respectfully. Theft data for the Jaguar F-Type and the Land Rover 
Discovery Sport is not available. Jaguar Land Rover believes these low 
theft rates demonstrate the effectiveness of the immobilizer device. 
Additionally, Jaguar Land Rover notes a Highway Loss Data Institute 
news release (July 19, 2000) showing approximately a 50% reduction in 
theft for vehicles installed with an immobilizer device. The agency 
agrees that the device is substantially similar to devices installed on 
other vehicle lines for which the agency has already granted exemptions
    Based on the supporting evidence submitted by Jaguar Land Rover on 
its device, the agency believes that the antitheft device for the 
Jaguar XE 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 541). The agency 
concludes that the device will provide the five types of performance 
listed in Sec.  543.6(a)(3): Promoting activation; attract 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 Jaguar Land Rover has provided adequate reasons for its 
belief that the antitheft device for the Jaguar XE 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 Jaguar Land Rover provided about its device.
    For the foregoing reasons, the agency hereby grants in full Jaguar 
Land Rover's petition for exemption for the Jaguar XE 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 Jaguar Land Rover 
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 Jaguar Land Rover 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 antitheft 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

[[Page 76617]]

minimis, it should consult the agency before preparing and submitting a 
petition to modify.

    Issued in Washington, DC under authority delegated in 49 CFR 
1.95.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2015-30930 Filed 12-8-15; 8:45 am]
BILLING CODE 4910-59-P