[Federal Register Volume 82, Number 90 (Thursday, May 11, 2017)]
[Notices]
[Pages 22051-22053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09510]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard; Hyundai America Technical Center, 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 Hyundai America Technical 
Center, Inc.'s (HATCI) petition for exemption of the Ioniq vehicle line 
in accordance with the 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 Federal Motor 
Vehicle Theft Prevention Standard (Theft Prevention Standard). Hyundai 
also requested confidential treatment for specific information in its 
petition. While official notification

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granting or denying its request for confidential treatment will be 
address by separate letter, no confidential information provided for 
purposes of this document has been disclosed.

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

FOR FURTHER INFORMATION CONTACT: Ms. Carlita Ballard, International 
Policy, Fuel Economy and Consumer Programs, NHTSA, West Building, 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 September 8, 2016, 
Hyundai requested an exemption from the parts-marking requirements of 
the Theft Prevention Standard for its Ioniq 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 543.5(a), a manufacturer may petition NHTSA to grant 
an exemption for one vehicle line per model year. In its petition, 
Hyundai provided a detailed description and diagram of the identity, 
design, and location of the components of the antitheft device for its 
Ioniq vehicle line. Hyundai stated that the MY 2017 Ioniq will include 
electric vehicle (EV), hybrid electric vehicle (HEV), and plug in 
hybrid electric vehicle (PHEV) models in its vehicle line. Hyundai also 
stated that it will offer two types of antitheft immobilizer systems on 
its Ioniq vehicle line. Hyundai further stated that the Ioniq will be 
installed with an immobilizer device as standard equipment on the 
entire vehicle line. Specifically, Hyundai stated that the vehicle line 
will be equipped with either a smart-key type of immobilizer system 
with alarm or a transponder (non-smart key) type of immobilizer system 
with alarm as standard equipment. Key components of the smart-key 
immobilizer system are an engine control unit/engine management system 
(EMS), vehicle control unit (VCU), smart-key unit (SMK), FOB smart-key, 
and a low frequency antenna (LF). Key components of the transponder 
immobilizer system are an engine control unit/engine management system 
(EMS), FOB folding key, immobilizer control unit, and an antenna coil. 
Hyundai further stated that it will offer an audible and visual alarm 
as standard equipment on the vehicle line.
    Hyundai'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 Sec.  543.6, 
Hyundai provided information on the reliability and durability of the 
device. Hyundai conducted and completed component tests for both 
antitheft immobilizer systems in accordance with the UNECE R-116.00, 
UNECE R-10.04, Korean standards 41.5.1, 41.5.2, 41.5.3, and Hyundai in-
house standards TDP Electronic 02-02-14 and 02-03-25. Hyundai stated 
that all testing met its standard requirements. Hyundai stated that its 
smart-key immobilizer system is a push button system that starts or 
stops the engine through an encrypted authentication and authorization 
process of communication between the FOB smart-key and the SMK. Hyundai 
stated that the SMK manages all functions related to the communication 
between the start/stop button, the FOB key and the VCU or EMS. The SMK 
communicates with the FOB smart-key by generating an encrypted request 
as a modulated low frequency signal that the LF antenna outputs to the 
FOB smart-key. Hyundai stated that when the two encoded keys coincide 
with each other, the vehicle can be started, stopped and operated in 
accessory mode. Activation of the smart-key immobilizer system occurs 
when the start/stop button is pushed to the ``OFF'' status and when the 
electronic key code of the FOB key is removed from the smart-key 
immobilizer control unit or from the vehicle.
    According to Hyundai, the smart-key immobilizer system allows the 
driver/operator to access and operate the vehicle by using a valid FOB 
key. No other actions by a mechanical key or a remote control unit are 
required. Hyundai stated that if a valid FOB key is in the range 
defined by this device, the device will automatically detect and 
authenticate the FOB via wireless communication between the FOB key and 
the smart-key immobilizer unit. If communication is authenticated, the 
device will allow passive accessibility to the doors and/or trunk, and/
or passive locking of all the doors. The audible and visual alarm 
system is also automatically activated when the FOB key is removed from 
the smart-key immobilizer control unit, all vehicle doors and the hood 
are closed, and all the doors are locked. If the device is armed and 
unauthorized entry is attempted, the vehicle's horn will sound and the 
hazard lamps will flash.
    Hyundai stated that its transponder key immobilizer system is a FOB 
key immobilizer system that starts or stops the engine through an 
encrypted authorization process between the FOB key, the immobilizer, 
and the EMS. Hyundai stated that the system enables the start and stop 
of the vehicle by insertion of a key into the ignition. Activation of 
the device occurs when the ignition switch is turned to the ``OFF'' 
position. Deactivation occurs when the ignition key is turned to the 
``ON'' position. The transponder in the FOB key transmits an ID code to 
the immobilizer unit via the immobilizer coil; the EMS then transmits a 
question code to the immobilizer unit using a serial line. The 
immobilizer unit then transmits the answer code it received from the 
FOB key to the EMS. If the key is validated, the EMS enables the engine 
to start or prevents the engine from starting if the key is not 
validated.
    In support of its petition, Hyundai referenced a JP Research Report 
on the effectiveness of parts-marking, which looked at the relative 
effectiveness of parts-marking and antitheft devices. The study 
concluded that for the 24 model lines used in its analysis, antitheft 
devices were 70% more effective than parts-marking in deterring theft. 
Based on the report, Hyundai also referenced the theft rates of other 
manufacturers' vehicle lines, i.e., the Lincoln Town Car, Mazda MX-5 
Miata, Mercedes-Benz E210, and the Mazda 3, that were exempted from the 
theft prevention standard. Hyundai stated that it believes the report 
showed that the installation of antitheft devices is at least as 
effective as complying with parts-marking requirements in reducing and 
deterring vehicle thefts. The theft rates for these lines using an 
average of three model years' data (2011-2013) are 1.0557, 0.2148, 
0.9883, and 1.3535 respectively.
    Based on the evidence submitted by Hyundai, the agency believes 
that the antitheft device for the Ioniq 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; 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

[[Page 22053]]

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 Hyundai has provided adequate reasons for its belief that 
the antitheft device for the Hyundai Ioniq 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 
Hyundai provided about its device.
    For the foregoing reasons, the agency hereby grants in full 
Hyundai's petition for an exemption for the Ioniq 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 
543.7(f) contains publication requirements with respect 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 Hyundai decides not to use the exemption for this vehicle line, 
it must formally notify the agency. If such a decision is made, the 
vehicle line must be fully marked as required by 49 CFR 541.5 and Sec.  
541.6 (marking of major component parts and replacement parts).
    NHTSA notes that if Hyundai 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 antitheft 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 Sec.  
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.

    Authority: 49 CFR 1.95.

Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2017-09510 Filed 5-10-17; 8:45 am]
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