[Federal Register Volume 84, Number 34 (Wednesday, February 20, 2019)]
[Notices]
[Pages 5193-5194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02752]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard; General Motors Corporation

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 General Motors Corporation's 
(GM) petition for exemption of the Buick Encore vehicle line in 
accordance with 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 the Federal Motor 
Vehicle Theft Prevention Standard (Theft Prevention Standard).

DATES: The exemption granted by this notice is effective beginning with 
the 2020 model year (MY).

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

SUPPLEMENTARY INFORMATION: In a petition dated October 11, 2018, GM 
requested an exemption from the parts-marking requirements of the Theft 
Prevention Standard for its Buick Encore vehicle line beginning with MY 
2020. The petition requested an exemption from parts-marking pursuant 
to 49 CFR 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, GM provided a detailed description and diagram of the 
identity, design, and location of the components of the antitheft 
device for its Buick Encore vehicle line. GM stated that its MY 2020 
Buick Encore vehicle line will be installed with the PASS-Key III+ 
antitheft device as standard equipment on the entire vehicle line. The 
PASS-Key III+ is a passive, transponder-based, electronic immobilizer 
device. The major components of the antitheft device are a PASS-Key 
III+ controller module, engine control module (ECM), electronically-
coded ignition key, radio frequency (RF) receiver, immobilizer exciter 
module, three low frequency antennas and a passive antenna module. GM 
stated that the device will provide protection against unauthorized use 
(i.e., starting and engine fueling), but will not provide any visible 
or audible indication of unauthorized vehicle entry (i.e., flashing 
lights or horn alarm). GM stated that the PASS-Key III+ immobilizer 
device is designed to be active at all times without direct 
intervention by the vehicle operator. GM further stated that activation 
of the device occurs immediately after the ignition has been turned off 
and the key has been removed and deactivation of the antitheft device 
occurs automatically when the engine is started. GM stated that the 
Buick Encore vehicle line will be equipped with one of two ignition 
versions. Specifically, the Buick Encore will be equipped with either a 
keyed or keyless ignition version of its PASS-Key III+ immobilizer 
antitheft device. GM also stated that the ``keyed'' ignition version 
utilizes a special ignition key and decoder module and its electrical 
code must be sensed and properly decoded by the controller module 
before the vehicle can be operated. GM further stated that with the 
``keyless'' ignition version, an electronic key fob performs normal 
remote keyless entry functions and communicates with the vehicle 
without direct owner intervention. Specifically, during operation of 
the vehicle, when the owner presses the engine start/stop switch, the 
vehicle transmits a randomly generated challenge and vehicle identifier 
within the passenger compartment of the vehicle via three low-frequency 
antennas, controlled by the passive antenna module. The electronic key 
receives the data and if the vehicle identifier matches that of the 
vehicle, the electronic key will calculate the response to the vehicle 
using the challenge and secret information shared between the key and 
the vehicle. The electronic key then transmits the response via a radio 
frequency channel to a vehicle mounted receiver, conveying the 
information to the PASS-Key III+ control module. The PASS-Key III+ 
control module compares the received response with an internally 
calculated response. If the values match, the device will allow the 
vehicle to enter functional modes and transmit a fixed code pre-release 
password to the engine controller over the serial data bus, and enable 
computation and communication of a response to any valid challenge 
received from the engine controller. If a valid key is not detected, 
the device will not transmit a fixed code pre-release password to the 
engine controller preventing fuel from being delivered to the engine, 
enabling starting.
    GM's submission is considered a complete petition as required by 49 
CFR 543.7, in that it meets the general requirements contained in 543.5 
and the specific content requirements of 543.6.
    In addressing the specific content requirements of 543.6, GM 
provided information on the reliability and durability of its proposed 
device. To ensure reliability and durability of the device, GM 
conducted tests based on its own specified standards. GM provided a 
detailed list of the specific tests it used to validate the integrity, 
durability and reliability of the PASS-Key III+ device. Some of the 
tests GM conducted were for high temperature storage, low temperature 
storage, thermal shock, humidity, frost, salt fog, flammability and 
others. GM believes that the device is reliable and durable since the 
components must operate as designed after each test. GM further stated 
that the design and assembly processes of the PASS-Key III+ subsystem 
and components are validated for 10 years of vehicle life and 150,000 
miles of performance.
    GM further stated that the PASS-Key III+ device has been designed 
to enhance the functionality and theft protection provided by its 
first, second and third generation PASS-Key, PASS-Key II, and PASS-Key 
III devices. GM also referenced data provided by the American 
Automobile Manufacturers Association (AAMA) in support of the 
effectiveness of GM's PASS-Key devices in reducing and deterring motor 
vehicle theft. Specifically, GM stated that data which provide the 
basis for GM's confidence that the PASS-Key III+ system will be 
effective in reducing and

[[Page 5194]]

deterring motor vehicle theft are contained in the response of the 
American Automobile Manufacturers Association (AAMA) to Docket 97-042; 
Notice I (NHTSA Request for Comments on its preliminary Report to 
Congress on the effects of the Anti Car Theft Act of 1992 and the Motor 
Vehicle Theft Law Enforcement Act of 1984). In the Report to Congress, 
AAMA stated the more recent antitheft systems are more effective in 
reducing auto theft. AAMA also cited the Highway Loss Data Institute 
(HLDI) findings on the effectiveness of antitheft devices in reducing 
theft. AAMA noted that vehicles with antitheft devices are less likely 
to be stolen for joyriding or transportation and therefore, their 
recovery rates are lower.
    GM also noted that theft rate data have indicated a decline in 
theft rates for vehicle lines equipped with comparable devices that 
have received full exemptions from the parts-marking requirements. GM 
stated that the theft rate data, as provided by the Federal Bureau of 
Investigation's National Crime Information Center (NCIC) and compiled 
by the agency, show that theft rates are lower for exempted GM models 
equipped with the PASS-Key-like systems than the theft rates for 
earlier models with similar appearance and construction that were 
parts-marked. Based on the performance of the PASS-Key, PASS-Key II, 
and PASS-Key III devices on other GM models, and the advanced 
technology utilized in PASS-Key III+, GM believes that the PASS-Key 
III+ device will be more effective in deterring theft than the parts-
marking requirements of 49 CFR part 541.
    GM stated that it believes that PASS-Key III+ devices will be more 
effective in deterring theft than the parts-marking requirements and 
that the agency should find that inclusion of the PASS-Key III+ device 
on the Buick Encore vehicle line is sufficient to qualify it for full 
exemption from the parts-marking requirements.
    GM's proposed device lacks an audible or visible alarm. Therefore, 
this device cannot perform one of the functions listed in 49 CFR part 
543.6(a)(3), that is, to call attention to unauthorized attempts to 
enter or move the vehicle. GM stated that based on comparison of the 
reduction in the theft rates of Chevrolet Corvettes using a passive 
antitheft device along with an audible/visible alarm system to the 
reduction in theft rates for the Chevrolet Camaro models equipped with 
a passive antitheft device without an alarm, GM finds that the lack of 
an alarm or attention-attracting device does not compromise the theft 
deterrent performance of a device such as PASS-Key III+ device. In 
these instances, the agency has concluded that the lack of an audible 
or visible alarm has not prevented these antitheft devices from being 
effective protection against theft. Using an average of 3 MYs data 
(2012-2014), NHTSA's theft rates for the Chevrolet Corvette and 
Chevrolet Camaro vehicle lines are 1.2140 and 3.1337 respectively, both 
below the median theft rate of 3.5826.
    Based on the evidence submitted by GM, the agency believes that the 
antitheft device for the Buick Encore 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).
    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 GM has provided adequate reasons for its belief that the 
antitheft device for the Buick Encore 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 GM 
provided about its device.
    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.
    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 GM decides not to use the exemption for this line, it should 
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 GM 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 543.10(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. 
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 minimis, it should consult the agency 
before preparing and submitting a petition to modify.
    For the foregoing reasons, the agency hereby grants in full GM's 
petition for exemption for the Buick Encore vehicle line from the 
parts-marking requirements of 49 CFR part 541, beginning with its model 
year (MY) 2020 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. 2019-02752 Filed 2-19-19; 8:45 am]
 BILLING CODE 4910-59-P