[Federal Register Volume 83, Number 95 (Wednesday, May 16, 2018)]
[Notices]
[Pages 22742-22743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10428]


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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's 
(BMW) petition for exemption of the 8 series vehicle line in accordance 
with Exemption from the Theft Prevention Standard. This petition is 
granted because the Agency has determined that the antitheft device to 
be placed on the vehicle 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). BMW also requested 
confidential treatment for specific information in its petition. 
Therefore, no confidential information provided for purposes of this 
notice has been disclosed.

DATES: The exemption granted by this notice is effective beginning with 
the 2019 model year (MY).

FOR FURTHER INFORMATION CONTACT: Ms. Carlita Ballard, Office of 
International Policy, Fuel Economy and Consumer Programs, National 
Highway Traffic Safety Administration, West Building, Room W43-439, 
1200 New Jersey Avenue SE, 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 January 12, 2018, BMW 
requested an exemption from the parts-marking requirements of the Theft 
Prevention Standard for the 8 series vehicle line beginning with MY 
2019. 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, BMW provided a detailed description and diagram of the 
identity, design, and location of the components of the antitheft 
device for its 8 series vehicle line. BMW stated that its 8 series 
vehicle line will be installed with a passive, electronically-coded, 
vehicle immobilizer system (EWS) as standard equipment that will 
prevent the vehicle from being driven away under its own engine power. 
Key features of the antitheft device will include a remote-control w/
mechanical key, ring antenna (transponder coil), low frequency antenna 
(LF), engine control unit (DME/DDE) with encoded start release input, a 
passive immobilizer, and an EWS (BDC) control unit. BMW also stated 
that it will not offer an audible or visible alarm feature on the 
proposed device.
    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 its device, BMW stated that it 
conducted tests on the antitheft device which complied with its own 
specific standards. BMW further stated that its antitheft device 
fulfills the requirements of the January 1995 European vehicle 
insurance companies. In further addressing the reliability and 
durability of its device, BMW provided information on the uniqueness of 
its mechanical keys to be used on the 8 series vehicle line. 
Specifically, BMW stated that the vehicle's mechanical keys are unique 
because they require a special key blank, cutting machine and a unique 
vehicle code to allow for key duplication. BMW also stated that the 
mechanical keys cannot be used to deactivate the device but that 
activation must be done electronically. BMW further stated that the new 
keys will only be issued to authorized persons and will incorporate 
special guide-way millings, making the locks almost impossible to pick 
and the keys impossible to duplicate on the open market.
    BMW stated that activation of its antitheft device occurs 
automatically when the engine is shut off and the vehicle key is 
removed from the ignition system. BMW stated that a transponder 
(transmitter/receiver) in the radio frequency remote control 
communicates with the EWS (BDC) control unit providing the interface to 
the loop antenna (coil), engine control unit and starter. After an 
initial starting value, the authentication uses the challenge response 
technique with symmetric secret key. BMW further stated that when the 
control unit identifies the correct release signal, the ignition signal 
and fuel supply are released allowing operation of the vehicle.
    BMW also stated that the vehicle is equipped with a central-locking 
system that can be operated to lock and unlock all doors or to unlock 
only the driver's door, preventing forced entry into the vehicle 
through the passenger doors. BMW further stated that 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 its 8 series 
vehicle 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. Specifically, BMW has 
installed its antitheft device

[[Page 22743]]

on its X1 (MPV and passenger cars), X2, X3, X4 and X5 vehicle lines, as 
well as its Carline 1, 3, 4, 5, 6, 7, Z4, MINI and MINI Countryman 
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 8 series 
vehicle line. BMW stated that for MY/CY 2014, the Agency's data show 
that the theft rates for its vehicle lines are: 0.47 (2-series), 0.91 
(3-series), 0.80 (4-series), 0.90 (5-series), 1.83 (6-series) 2.85 (7-
series), 0.30 (X1), 0.60 (X3), 0.00 (X5), 0.43 (Z4), 0.00 (i3), 0.00 
(i8) and 0.41 (MINI Cooper). Using an average of 3 MYs data (2012-
2014), NHTSA's theft rates for BMW's 2 series, 3 series, 4 series, 5 
series, 6 series, 7 series, X1, X3, X5, Z4, i3, i8 and MINI Cooper 
vehicle lines are 0.7416, 0.7566, 0.8041, 1.0805, 2.5509, 2.0632, 
0.2672, 0.6117, 0.0000, 0.8159, 0.0000, 0.0000 and 0.2379 respectively, 
all below the median theft rate of 3.5826.
    Based on the supporting evidence submitted by BMW, the Agency 
believes that the antitheft device for the BMW 8 series 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). 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 8 series 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 BMW 
provided about its device.
    For the foregoing reasons, the Agency hereby grants in full BMW's 
petition for exemption for the MY 2019 8 series 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 MY. 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 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 parts 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 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 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 and 501.8.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2018-10428 Filed 5-15-18; 8:45 am]
 BILLING CODE 4910-59-P