[Federal Register Volume 84, Number 56 (Friday, March 22, 2019)]
[Notices]
[Pages 10888-10889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05445]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard; Toyota Motor North America, 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 Toyota Motor North America, 
Inc.'s, (Toyota) petition for an exemption of the model year 2020 C-HR 
vehicle line from the Federal Motor Vehicle Theft Prevention Standard 
(Theft Prevention Standard). The 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 Theft Prevention Standard.

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

FOR FURTHER INFORMATION, CONTACT:  Ms. Carlita Ballard, Office of 
International Policy, Fuel Economy and Consumer Programs, NHTSA, West 
Building, W43-439, NRM-310, 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 25, 2018, 
Toyota requested an exemption from the parts-marking requirements of 
the Theft Prevention Standard for the C-HR vehicle line beginning with 
model year (MY) 2020. 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, Toyota provided a detailed description and diagram of the 
identity, design, and location of the components of the antitheft 
device for the C-HR vehicle line. Toyota stated its MY 2020 C-HR 
vehicle line will be installed with an engine immobilizer device as 
standard equipment. Toyota also stated it will offer two entry/start 
systems on its C-HR vehicle line. Specifically, Toyota stated the C-HR 
vehicle line will be offered with a ``smart entry and start'' system or 
a ``transponder key and start'' system. Key components of the ``smart 
entry and start'' system on the C-HR vehicle line will include, a 
certification engine control unit (ECU), engine switch, steering lock 
ECU, security indicator, door control receiver, electrical key, ID code 
box, and an engine control module (ECM). Key components of the 
``transponder key and start'' system on the C-HR vehicle line will 
include, a transponder key ECU assembly, transponder key coil, security 
indicator, ignition key and an ECM. Toyota stated there will also be 
position switches installed on the vehicle to protect the hood and 
doors from unauthorized tampering/opening. Toyota further explained 
that locking the doors can be accomplished through use of a key, 
wireless switch, or its smart entry system, and unauthorized tampering 
with the hood or door without using one of these methods will cause the 
position switches to trigger its antitheft device to operate. Toyota 
will not incorporate an audible and visual alarm system on its vehicle 
line.
    Toyota'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, 
Toyota provided information on the reliability and durability of its 
proposed device. To ensure reliability and durability of the device, 
Toyota conducted tests based on its own specified standards. Toyota 
provided a detailed list of the tests conducted (i.e., high and low 
temperature operation, strength, impact, vibration, electro-magnetic 
interference, etc.). Toyota stated it believes its device is reliable 
and durable because it complied with its own specific design standards, 
and the antitheft device is installed on other vehicle lines for which 
the agency has granted a parts-marking exemption. As an additional 
measure of reliability and durability, Toyota stated its vehicle key 
cylinders are covered with casting cases to prevent the key cylinder 
from easily being broken. Toyota further explained there are 
approximately 10,000 combinations for inner cut keys, which

[[Page 10889]]

makes it difficult to unlock the doors without using a valid key 
because the key cylinders would spin out and cause the locks to not 
operate.
    Toyota stated its ``smart entry and start'' system is activated 
when the engine switch is pushed from the ``ON'' ignition status to any 
other status. The certification ECU then performs the calculation for 
the immobilizer and the immobilizer signals the ECM to activate the 
device. Toyota also stated key verification is performed after the 
driver pushes the engine switch. Specifically, after the driver pushes 
the engine switch, the certification ECU and steering lock ECU receive 
confirmation of a valid key, and the certification ECU allows the ECM 
to start the engine. Toyota stated the ``transponder key and start'' 
system is activated when the ignition key is turned from the ``ON'' 
position to some other status and the key is removed allowing the 
immobilizer to activate and signal the ECM. Toyota also stated in both 
systems, a security indicator is installed notifying users and others 
inside and outside the vehicle with the status of the immobilizer. 
Toyota further explained the security indicator flashes continuously 
when the immobilizer is activated, and turns off when it is 
deactivated. Toyota stated that the proposed antitheft device has also 
been installed as standard equipment on its C-HR vehicle line beginning 
with its MY 2018 vehicles. The theft rate for the MY 2018 C-HR vehicle 
line is not available. However, Toyota compared its proposed device to 
other devices NHTSA has determined to be as effective in reducing and 
deterring motor vehicle theft as would compliance with the parts-
marking requirements. Toyota compared its proposed device to that which 
has been installed on the Nissan Altima and granted a parts-marking 
exemption from 49 CFR part 541 by the agency beginning with its MY 2000 
vehicles. Toyota also referenced the NHTSA theft rate data published 
for several years before and after the Nissan Altima was equipped with 
a standard immobilizer device. Specifically, Toyota stated the 
publication showed the average theft rate for the Nissan Altima dropped 
to 3.0 per 1,000 cars produced between MY's 2000-2006 compared to 5.3 
per 1,000 cars produced between MY's 1996-1999. This represents 
approximately a 43% decrease in the theft rate for the Nissan Altima 
vehicle line installed with an immobilizer between MY's 2000-2006 as 
compared to the Nissan Altima vehicle line without an immobilizer 
between MY's 1996-1999. The theft rates for the Nissan Altima vehicle 
line using an average of three model years' data (2012-2014) are 
2.4207, 1.7598 and 2.1212 respectively, all well below the median theft 
rate of 3.5826. Therefore, Toyota has concluded the antitheft device 
proposed for its C-HR vehicle line is no less effective than those 
devices on the lines for which NHTSA has already granted full exemption 
from the parts-marking requirements. Toyota stated it believes that 
installing the immobilizer device as standard equipment reduces the 
theft rate for the C-HR vehicle line and expects it to experience 
comparable effectiveness and ultimately be more effective than parts-
marking labels.
    Based on the supporting evidence submitted by Toyota on its device, 
the agency believes the antitheft device for the C-HR 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 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 
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 Toyota has provided adequate reasons for its belief the antitheft 
device for the C-HR 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 Toyota 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 543.7(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 Toyota 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 if Toyota 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 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 
Toyota's petition for exemption for the model year 2020 C-HR vehicle 
line from the parts-marking requirements of 49 CFR part 541.

    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. 2019-05445 Filed 3-21-19; 8:45 am]
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