[Federal Register Volume 84, Number 34 (Wednesday, February 20, 2019)]
[Notices]
[Pages 5187-5189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02723]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard; American Honda Motor Co., 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 American Honda Motor Co., 
Inc.'s (Honda) petition for exemption of the 2019 Model Year (MY) 
Passport vehicle line in accordance with Exemption from Vehicle Theft 
Prevention Standard. NHTSA is granting this petition 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).

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, 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 March 16, 2018, Honda 
requested an exemption from the parts-marking requirements of the Theft 
Prevention Standard for the Passport 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, Honda provided a detailed description and diagram of the 
identity, design, and location of the components of the antitheft 
device for the Passport vehicle line. Honda stated that both the 2-
wheel drive and all-wheel drive variants of its Passport vehicle line 
will be equipped with a transponder-based engine immobilizer antitheft 
device as standard equipment. Honda also stated that the Passport 
vehicle line will be equipped with a ``smart entry with push button 
start'' ignition system (``smart entry'') and an audible and visible 
vehicle security alarm system as standard equipment on the entire 
vehicle line. Key components of the antitheft device will include a 
passive immobilizer, ``smart entry'' remote, powertrain control module 
(PCM) and an Immobilizer Entry System (IMOES).
    Honda's submission is considered a complete petition as required by 
49 CFR 543.8, in that it meets the general requirements contained in 
Sec.  543.5 and

[[Page 5188]]

the specific content requirements of Sec.  543.6.
    In addressing the specific content requirements of Sec.  543.6, 
Honda provided information on the reliability and durability of its 
proposed device. To ensure the reliability and durability of the 
device, Honda provided the requirements and results of the testing it 
conducted based on its own specified standards. Honda believes that the 
device is reliable and durable since it complied with the specified 
requirements for each test and that installation of the antitheft 
device as standard equipment on the Passport vehicle line will reduce 
its theft rates and prove to be more effective than parts marking. 
Honda stated that it also follows a rigorous development process that 
ensure that its antitheft device is reliable and robust for the life of 
the vehicle. In further support of the reliability and durability of 
its antitheft device, Honda also stated that its antitheft device does 
not require the presence of a key fob remote battery to function nor 
does it have any moving parts, which it believes reduces the chance for 
deterioration and wear from normal use.
    Honda stated that its ``smart entry'' antitheft device requires a 
remote fob ``smart entry remote/keyless key with a matching code to 
start the vehicle. Honda stated that its immobilizer device is always 
active and automatically checks for the matching immobilizer code when 
the ``smart entry'' remote is within operating range. Upon validation 
of the matching code by the IMOES, pushing the engine start/stop button 
on the vehicle dashboard allows the engine to start and the driver the 
ability to operate the vehicle. Honda further states that if a ``smart 
entry'' remote without a matching code is placed inside the operating 
range and the engine start/stop button is pushed, the PCM will prevent 
fueling and starting of the engine and the ignition immobilizer 
telltale indicator will begin flashing on the instrument panel.
    Honda stated that it will also install an audible and visible 
vehicle security system as standard equipment on all its Passport 
vehicles to attract attention to an unauthorized person attempting to 
enter its vehicles without a key or remote through the doors, hood, or 
trunk. Whenever an attempt is made to open one of its protected areas 
without using the correct key in one of the key cylinders or the key 
fob to disarm the vehicle, the vehicle's horn will sound and its lights 
will flash. Honda further stated that its antitheft device is activated 
when all the doors are locked and the hood and trunk are closed and 
locked. Honda's antitheft device is deactivated when either of the key 
fob buttons are used to unlock the vehicle doors, the driver's door is 
unlocked by using the key in the key cylinder or either of the front 
door handles are grabbed when the ``smart entry remote'' is within 
operating range of the vehicle. Honda further stated that its antitheft 
device automatically activates at every vehicle shutdown and 
deactivates at every vehicle start, without requiring any action from 
the vehicle operator.
    Honda believes that the design of its door keys and key cylinders 
will provide additional reliability, durability and security. Honda 
stated that its door keys and key cylinders will prohibit theft because 
they are designed to be more resistant to picking and duplication is 
controlled by authorized dealers. Honda further stated that the key fob 
remotes will also utilize rolling codes for the lock and unlock 
features, the hood release lever will be securely located inside the 
vehicle, the vehicle will be equipped with counterfeit-resistant 
vehicle identification number (VIN) plates and secondary VINs will be 
inscribed on the vehicle frame, ensuring further reliability, 
durability and vehicle security.
    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, Honda referenced data showing several instances of 
the effectiveness of its proposed immobilizer device. Honda stated that 
it believes the immobilizer antitheft device proposed for installation 
on its Passport vehicle line will be as effective in reducing and 
deterring theft as the antitheft device installed on its MY 2003-2014 
Honda Pilot vehicle line because both vehicles will be installed with 
the same basic immobilizer and share the same platform. Honda also 
provided the testing results for the immobilizer device currently 
installed on its Pilot vehicle line. Honda stated that the Pilot's 
antitheft device is similar in design to that proposed for installation 
on its Passport vehicle line and has already been granted an exemption 
from the parts marking requirements (See 81 FR 12197, March 8, 2016).
    Honda also submitted supporting data from the Insurance Institute 
for Highway Safety (IIHS) and the agency for the years after 
installation of the immobilizer device on the Pilot vehicle, showing a 
sustained decreasing theft rate trend over the years. Honda first 
installed an immobilizer device as standard equipment on its MY 2003 
Honda Pilot vehicles. Honda also referenced NHTSA's theft rate data for 
MYs 2003-2014 showing a consistent rate of thefts well below the 1990/
91 median theft rate (3.5826) since the installation of its immobilizer 
device on the Honda Pilot vehicle line. NHTSA notes that the theft 
rates for the MYs 2012-2014 Honda Pilot vehicle line are 0.9846, 1.2111 
and 0.5446 respectively. Using an average of three MYs' theft data 
(2012-2014), the theft rate for the Honda Pilot vehicle line is well 
below the median at 0.9134. Additionally, Honda referenced the IIHS 
2003-2015 Insurance Theft Report showing an overall reduction in theft 
claims for the Honda Pilot vehicles after introduction of its 
immobilizer device on the vehicle line. Specifically, the IIHS data 
showed for years 2003 through 2015, theft claims for the Honda Pilot 
were 427 (2003-2005), 563 (2006-2008), 361 (2009-2011), 389 (2012-2014) 
and 335 (2012-2015) respectively. Honda also stated that the IIHS data 
further revealed that while the Pilot vehicle line has sustained lower 
theft rates over the years, it has also experienced the top ten lowest 
theft rates from 2006-2009 when compared to other competitive vehicles 
that have already been granted an exemption by the agency.
    Additionally, Honda stated that the immobilizer device proposed for 
the Passport vehicle line is similar to the design of antitheft devices 
installed on its 2014 Honda Civic, 2015 Honda Accord, 2016 Honda CR-V, 
2017 Honda Pilot and 2018 Acura MDX vehicles which have already been 
granted parts-marking exemptions by the agency. The agency granted the 
petitions for the Honda Civic vehicle line in full beginning with MY 
2014 (see 61 FR 19363, March 29, 2013), the Honda Accord vehicle line 
beginning with MY 2015 (see 79 FR 18409, April 1, 2014), the Honda CR-V 
vehicle line beginning with MY 2016 (see 80 FR 3733, January 23, 2015), 
the Honda Pilot beginning with MY 2017 (see 81 FR 12197, March 8, 2016) 
and the Acura MDX beginning with MY 2018 (see 82 FR 22055, May 11, 
2017). The agency notes that the average theft rate for the Honda 
Civic, Accord, CR-V, Pilot and MDX vehicle lines using three MYs' data 
(MYs 2012 through 2014) are 0.6611, 0.7139, 0.3203, 0.9134 and 0.4630 
respectively.
    Based on the supporting evidence submitted by Honda on its device, 
the agency believes that the antitheft device for the Passport 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: Promote activation; attract

[[Page 5189]]

attention to the efforts of an unauthorized person to enter or move a 
vehicle by means other than a key; prevent defeat or circumvention of 
the device by unauthorized persons; prevent operation of the vehicle by 
unauthorized entrants; and ensure the reliability and durability of the 
device, as required by Sec.  543.6(a)(3).
    Pursuant to 49 U.S.C. 33106 and 49 CFR 543.8 (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 Honda has provided adequate reasons for its belief that the 
antitheft device for the Passport 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. 
This conclusion is based on the information Honda provided about its 
device.
    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 543.8(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 Honda 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 Honda 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 543.8(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 543.10(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 
543.10(c)(2) could place on exempted vehicle manufacturers and itself. 
In order to reduce the administrative burden, at the manufacturer's 
option, the agency can be consulted about whether a change can be 
characterized as de minimis. This may save the manufacturer the time to 
prepare and submit a petition to modify its antitheft device if indeed 
the agency determines the change to 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 
its exemption.
    NHTSA also notes that Honda has requested confidential treatment 
seeking, among other things, that NHTSA keep the model name and release 
date of the Passport vehicle line confidential until the ``model is 
announced by Honda.'' Although the agency has found several Honda 
dealer websites announcing the future arrival of the 2019 Passport, 
Honda reports that the company has not announced the MY or intended 
name of this model. As noted at the time NHTSA issued the final rule 
establishing part 543, manufacturers requested that NHTSA treat a model 
name as confidential until the model is introduced rather than at the 
time the agency granted an exemption petition.\1\ The Agency stated 
that any secrecy regarding a model name must be balanced against the 
need of law enforcement agencies to know which car lines will be 
required to be marked under the theft prevention standard.\2\ NHTSA 
determined that it will treat a model name as confidential until the 
June 1 immediately preceding the new vehicle's first model year if a 
manufacturer can show that it has not released a new model's nameplate 
either to dealers or to any other portion of the public. Id. Because 
June 1, 2018 has now passed, the Agency is releasing the model name and 
year in deference to the need of law enforcement to identify exempt 
vehicles.
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    \1\ 52 FR 33821, 33824, September 8, 1987.
    \2\ Id.
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    For the foregoing reasons, the agency hereby grants in full Honda's 
petition for exemption for the Passport vehicle line from the parts-
marking requirements of 49 CFR part 541, beginning with the 2019 model 
year vehicles.

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.95 and 501.8.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2019-02723 Filed 2-19-19; 8:45 am]
 BILLING CODE 4910-59-P