[Federal Register Volume 85, Number 156 (Wednesday, August 12, 2020)]
[Notices]
[Pages 48759-48764]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17596]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petitions for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Grant of petitions for exemption.

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SUMMARY: This document grants in full four manufacturers' petitions for 
exemption for four model lines from the Federal Motor Vehicle Theft 
Prevention Standard (Theft Prevention Standard) beginning in model year 
(MY) 2021. The manufacturers, vehicle lines, and model years are as 
follows: Ford Motor Company (Ford) for its Bronco Sport vehicle line 
beginning in MY 2021; Jaguar Land Rover North America LLC (Jaguar Land 
Rover) for its Jaguar I-Pace vehicle line beginning in MY 2021; 
American Honda Motor Co., Inc. (Honda) for its HR-V vehicle line 
beginning in MY 2021; and Volkswagen Group of America, Inc. 
(Volkswagen) for its ID.4 vehicle line beginning in MY 2021.

DATES: The exemptions granted by this notice are effective beginning 
with the 2021 model year.

FOR FURTHER INFORMATION CONTACT: 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:  Under 49 U.S.C. chapter 331, the Secretary 
of Transportation (and the National Highway Traffic Safety 
Administration (NHTSA) by delegation) is required to promulgate a theft 
prevention standard to provide for the identification of certain motor 
vehicles and their major replacement parts to impede motor vehicle 
theft. NHTSA promulgated regulations at Part 541 (Theft Prevention 
Standard) to require parts-marking for specified passenger motor 
vehicles and light trucks. Pursuant to 49 U.S.C. 33106, manufacturers 
that are subject to the parts-marking requirements may petition the 
Secretary of Transportation for an exemption for a line of passenger 
motor vehicles equipped as standard equipment with an anti-theft device 
that the Secretary decides is likely to be as effective in reducing and 
deterring motor vehicle theft as compliance with the parts-marking 
requirements. In accordance with this statute, NHTSA promulgated 49 CFR 
part 543, which establishes the process through which manufacturers may 
seek an exemption from the Theft Prevention Standard.
    49 CFR 543.5 provides general submission requirements for petitions 
and states that each manufacturer may petition NHTSA for an exemption 
of one vehicle line per model year. Among other requirements, 
manufacturers must identify whether the exemption is sought under 
section 543.6 or section 543.7. Under section 543.6, a manufacturer may 
request an exemption by providing specific information about the anti-
theft device, its capabilities, and the reasons the petitioner believes 
the device to be as effective at reducing and deterring theft as 
compliance with the parts-marking requirements. Section 543.7 permits a 
manufacturer to request an exemption under a more streamlined process 
if the vehicle line is equipped with an anti-theft device (an 
``immobilizer'') as standard equipment that complies with one of the 
standards specified in that section.
    Section 543.8 establishes requirements for processing petitions for 
exemption from the Theft Prevention Standard. As stated in section 
543.8(a), NHTSA processes any complete exemption petition. If NHTSA 
receives an incomplete petition, NHTSA will notify the petitioner of 
the deficiencies. Once NHTSA receives a complete petition it will 
process it and, in accordance with section 543.8(b), will grant the 
petition 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.
    Section 543.8(c) requires NHTSA to issue its decision either to 
grant or to deny an exemption petition not later than 120 days after 
the date on which a complete petition is filed. If NHTSA does not make 
a decision within the 120-day period, the petition shall be deemed to 
be approved and the manufacturer shall be exempt from the standard for 
the line covered by the

[[Page 48760]]

petition for the subsequent model year.\1\ Exemptions granted under 
Part 543 apply only to the vehicle line or lines that are subject to 
the grant and are equipped with the antitheft device on which the 
line's exemption was based and is effective for the model year 
beginning after the model year in which NHTSA issues the notice of 
exemption, unless the notice of exemption specifies a later year.
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    \1\ 49 U.S.C. 33106(d).
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    Sections 543.8(f) and (g) apply to how NHTSA's decisions on 
petitions are to be made known. Under section 543.8(f), if the petition 
is sought under section 543.6, NHTSA publishes a notice of its decision 
to grant or deny the exemption petition in the Federal Register and 
notifies the petitioner in writing. Under section 543.8(g), if the 
petition is sought under section 543.7, NHTSA notifies the petitioner 
in writing of the agency's decision to grant or deny the exemption 
petition.
    This grant of petitions for exemption considers the following 
manufacturers' petitions for the following model years: Ford Motor 
Company (Ford) for its Bronco Sport vehicle line beginning in MY 2021; 
Jaguar Land Rover North America LLC (Jaguar Land Rover) for its Jaguar 
I-Pace vehicle line beginning in MY 2021; American Honda Motor Co., 
Inc. (Honda) for its HR-V vehicle line beginning in MY 2021; and 
Volkswagen Group of America, Inc. (Volkswagen) for its ID.4 vehicle 
line beginning in MY 2021.
    As explained below, the petitions for all four manufacturers' 
vehicle lines are granted under 49 U.S.C. 33106, which states that if 
the Secretary of Transportation (NHTSA, by delegation) does not make a 
decision about a petition within 120 days of the petition submission, 
the petition shall be deemed to be approved and the manufacturer shall 
be exempt from the standard for the line covered by the petition for 
the subsequent model year. Separately, based on the information 
provided in each manufacturer's petition, NHTSA has determined that the 
antitheft device to be placed on each 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.

I. Petition Approval Under 49 U.S.C. 33106(d)

    As outlined above, if NHTSA does not make a decision on a complete 
exemption petition within the 120-day period after the date that the 
petition was filed,\2\ the petition shall be deemed to be approved and 
the manufacturer shall be exempt from the standard for the line covered 
by the petition for the subsequent model year.\3\
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    \2\ See 51 FR 706; 52 FR 33821. Since the interim final rule 
implementing the Theft Prevention Standard, NHTSA has interpreted 
the filing date as meaning the date on which NHTSA receives a 
manufacturer's complete petition.
    \3\ 49 U.S.C. 33106(d).
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    Each manufacturer covered in this notice submitted a petition for 
exemption to NHTSA more than 120 days prior to this decision. Although 
each petition is accordingly approved pursuant to 49 U.S.C. 33106(d), 
for continuity for manufacturers, because MY 2021 production is likely 
to begin 8 months prior to the start of this notice,\4\ NHTSA evaluated 
the specific information provided by each manufacturer in accordance 
with the requirements in 49 CFR 543.6, Petition: Specific content 
requirements. Based on this information, NHTSA separately determined 
that the antitheft device to be placed on each 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.
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    \4\ 49 U.S.C. 33106(c).
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II. Specific Petition Content Requirements Under 49 CFR 543.6

    Pursuant to 49 CFR part 543, Exemption from Vehicle Theft 
Prevention, the four manufacturers described below petitioned for their 
specified vehicle lines an exemption from the parts-marking 
requirements of the Theft Prevention Standard, beginning in MY 2021. 
Ford, Jaguar Land Rover, Honda, and Volkswagen petitioned under 49 CFR 
543.6, Petition: Specific content requirements, which, as described 
above, requires manufacturers to provide specific information about the 
anti-theft device installed as standard equipment on all vehicles in 
the line for which an exemption is sought, the anti-theft device's 
capabilities, and the reasons the petitioner believes the device to be 
as effective at reducing and deterring theft as compliance with the 
parts-marking requirements.
    More specifically, section 543.6(a)(1) requires petitions to 
include a statement that an antitheft device will be installed as 
standard equipment on all vehicles in the line for which the exemption 
is sought. Under section 543.6(a)(2), each petition must list each 
component in the antitheft system, and a diagram showing the location 
of each of those components within the vehicle. As required by section 
543.6(a)(3), each petition must include an explanation of the means and 
process by which the device is activated and functions, including any 
aspect of the device designed to: (1) Facilitate or encourage its 
activation by motorists; (2) attract attention to the efforts of an 
unauthorized person to enter or move a vehicle by means other than a 
key; (3) prevent defeating or circumventing the device by an 
unauthorized person attempting to enter a vehicle by means other than a 
key; (4) prevent the operation of a vehicle which an unauthorized 
person has entered using means other than a key; and (5) ensure the 
reliability and durability of the device.\5\
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    \5\ 49 CFR 543.6(a)(3).
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    In addition to providing information about the antitheft device and 
its functionality, petitioners must also submit the reasons for the 
petitioner's belief that the antitheft device will be effective in 
reducing and deterring motor vehicle theft, including any theft data 
and other data that are available to the petitioner and form a basis 
for that belief,\6\ and the reasons for the petitioner's belief that 
the agency should determine that the antitheft device is likely to be 
as effective as compliance with the parts-marking requirements of Part 
541 in reducing and deterring motor vehicle theft, including any 
statistical data that are available to the petitioner and form the 
basis for the petitioner's belief that a line of passenger motor 
vehicles equipped with the antitheft device is likely to have a theft 
rate equal to or less than that of passenger motor vehicles of the 
same, or a similar, line which have parts marked in compliance with 
Part 541.\7\
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    \6\ 49 CFR 543.6(a)(4).
    \7\ 49 CFR 543.6(a)(5).
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    The following sections describe each manufacturer's petition 
information provided pursuant to 49 CFR part 543, Exemption from 
Vehicle Theft Prevention. To the extent that specific information in a 
manufacturer's petition is subject to a properly filed confidentiality 
request, that information was not disclosed as part of this notice. See 
49 CFR 512.20(a).

a. Ford

    In a petition dated December 12, 2019, Ford requested an exemption 
from the parts-marking requirements of the Theft Prevention Standard 
for its Bronco Sport vehicle line beginning with MY 2021. Pursuant to 
section 543.6(a)(1), Ford stated that the antitheft device described in 
its petition--Intelligent

[[Page 48761]]

Access with Push Button Start (IAwPB)--will be standard equipment on 
its Bronco Sport vehicle line produced for the U.S. beginning with MY 
2021 and beyond. Ford also stated that on its signature trim level 
models it will offer phone as key (Paak) feature via the LincolnWay app 
that can be used when paired with a smart phone instead of using a key 
fob to lock/unlock or remotely start/shutdown the vehicle.
    In accordance with section 543.6(a)(2), Ford provided a detailed 
description and diagram of the identity, design, and location of the 
components of the antitheft device for its Bronco Sport vehicle line. 
Under section 543.6(a)(3), Ford described the IAwPB system as a 
passive, electronic engine immobilizer device that uses encrypted 
transponder technology. Key components of the IAwPB device will include 
an Intelligent Access electronic Push-Button Start key fob, keyless 
ignition system, radio transceiver module, body control module (BCM), 
powertrain control module (PCM), anti-lock braking system module (ABS) 
and an embedded secure modem (for Paak feature). Ford further stated 
that its Bronco Sport vehicle line will also be offered with a 
perimeter alarm system as standard equipment which will activate a 
visible and audible alarm whenever unauthorized access is attempted. 
Some additional features of the antitheft device include: Encrypted 
communication between the transponder, BCM control function and the 
PCM; ``virtually impossible'' key duplication; and shared security data 
between the body control module/remote function actuator and the 
powertrain control module.
    Ford also provided information on the reliability and durability of 
its proposed device. To ensure reliability and durability of its 
device, Ford stated that it conducted tests on the antitheft device 
which complied with its own specific standards. Additionally, Ford 
stated that its antitheft device has no moving parts (i.e., BCM, PCM, 
and electrical components) to perform system functions, which eliminate 
the possibility of physical damage or deterioration from normal use; 
and mechanically overriding the device to start the vehicle is also 
impossible. In further addressing the reliability and durability of its 
device, Ford stated that its Bronco Sport vehicle line will also be 
equipped with several other standard antitheft features common to Ford 
vehicles, (i.e., hood release located inside the vehicle, counterfeit 
resistant VIN labels, secondary VINs, and cabin accessibility only with 
the use of a valid key fob).
    Ford also stated that its system is automatically activated when 
the ``StartStop'' button is pressed, shutting off the engine. Ford 
stated that the device is deactivated when a start sequence is 
completed and engine start is successful. Ford further stated that the 
vehicle engine can only be started when the key is present in the 
vehicle and the ``StartStop'' button inside the vehicle is pressed. 
Ford stated that when the ``StartStop'' button is pressed, the 
transceiver module will read a key code and transmit an encrypted 
message to the control module to determine key validity and engine 
start by sending a separate encrypted message to the BCM and the PCM. 
The powertrain will function only if the key code matches the unique 
identification key code previously programmed into the BCM. Ford stated 
that the two modules must be matched together in order for the vehicle 
to start. If the codes do not match, the powertrain engine starter, 
spark, and fuel will be disabled. Ford further stated that any attempt 
to operate the vehicle without transmission of the correct code to the 
electronic control (i.e., short circuiting the ``StartStop'' button) 
module will be ineffective.
    Ford stated that its anti-theft system was introduced on all MY 
1996 Ford Mustang GT and Cobra models as well as other selected models. 
Ford also stated that on its 1997 models, the installation of its 
antitheft device was extended to the entire Ford Mustang vehicle line 
as standard equipment and that according to the National Insurance 
Crime Bureau (NICB) theft statistics, MY 1997 Mustangs installed with 
the antitheft device showed a 70% reduction in theft rate compared to 
its MY 1995 Mustangs without an antitheft device.
    Ford further stated that the proposed antitheft device is very 
similar to the system that was offered on its MY 2020 Lincoln Corsair 
vehicle line. The Lincoln Corsair vehicle line was granted a parts-
marking exemption by NHTSA (84 FR 10890, March 22, 2019) beginning with 
its MY 2020 vehicles.

b. Jaguar Land Rover

    In a petition dated November 26, 2019, Jaguar Land Rover requested 
an exemption from the parts-marking requirements of the Theft 
Prevention Standard for its Jaguar I-Pace vehicle line beginning with 
MY 2021. Pursuant to section 543.6(a)(1), Jaguar Land Rover stated that 
the antitheft device described in its petition--a passive, transponder-
based, electronic engine immobilizer device--will be standard equipment 
on the Jaguar I-Pace model for MY 2021.
    In accordance with section 543.6(a)(2), Jaguar Land Rover provided 
a detailed description and diagram of the identity, design, and 
location of the components of the antitheft device for the Jaguar I-
Pace vehicle line. Under section 543.6(a)(3), Jaguar Land Rover 
described that key components of its antitheft device will include a 
Smart Key, powertrain control module (PCM), instrument cluster, body 
control module (BCM), remote frequency receiver (RFR), Immobilizer 
Antenna Unit (IAU), Remote Frequency Actuator (RFA), Security Horn and 
Vehicle Horn, Door Zone Modules (Passenger and Driver) (DMZs) and a 
Security Warning LED. Jaguar Land Rover stated that its antitheft 
device will also include a vehicle security system that includes an 
audible and visual perimeter alarm system as standard equipment on the 
entire vehicle line. The horn will sound and the vehicle's exterior 
lights will flash if unauthorized entry is attempted by opening the 
hood, doors, or luggage compartment. Jaguar Land Rover further stated 
that its perimeter alarm system can be armed with its Smart Key or 
programmed to be passively armed.
    Jaguar Land Rover provided information on the reliability and 
durability of its proposed device as required by section 
543.6(a)(3)(v). To ensure reliability and durability of the device, 
Jaguar Land Rover conducted tests based on its own specified standards. 
Jaguar Land Rover provided a detailed list of the tests conducted 
(i.e., temperature and humidity cycling, high and low temperature 
cycling, mechanical shock, random vibration, thermal stress/shock 
tests, material resistance tests, dry heat, dust and fluid ingress 
tests). Jaguar Land Rover stated that it believes that its device is 
reliable and durable because it complied with specified requirements 
for each test. Additionally, Jaguar Land Rover stated that its key 
recognition sequence includes over a billion code combinations with 
encrypted data that are secure against duplication. Jaguar Land Rover 
further stated that the coded data transfer between modules use a 
unique secure identifier and public algorithm. Jaguar Land Rover also 
stated that since its Jaguar I-Pace vehicle line will utilize a push 
button vehicle ignition, it does not have a conventional mechanical key 
barrel, and therefore, a thief will have no means of forcibly bypassing 
the key-locking system.
    Jaguar Land Rover stated that its immobilizer device is 
automatically activated when the Smart Key is removed from the vehicle. 
Jaguar Land Rover also stated that its Smart Key is programmed and 
synchronized to each

[[Page 48762]]

vehicle through an identification key code and a secret, randomly-
generated code unique to each vehicle.
    Jaguar Land Rover stated that there are three methods of antitheft 
device deactivation and engine starting. Method one consists of 
automatic detection of the Smart Key via a remote frequency challenge 
response sequence. Specifically, when the driver approaches the vehicle 
and pulls the driver's door handle following authentication of the 
correct Smart Key, the doors will unlock. When the ignition start 
button is pressed, the device searches to find and authenticate the 
Smart Key within the vehicle interior. If successful, this information 
is passed to the BCM via the Remote Function Actuator by coded data 
transfer. The BCM will pass the ``valid key'' status to the instrument 
cluster, via a coded data transfer and then send the ``key valid'' 
message code to the PCM initiating a coded data transfer and engine 
authorization to start. Method two consists of unlocking the vehicle 
with the Smart Key unlock button. As the driver approaches the vehicle, 
the Smart Key unlock button is pressed and the doors will unlock. Once 
the driver presses the ignition start button, the operation process is 
the same as method one. Method three involves using the emergency key 
blade. If the Smart Key has a discharged battery or is damaged, there 
is an emergency key blade that can be removed from the Smart Key and 
used to unlock the doors. When the ignition start button is pressed, 
the device searches to find and authenticate the Smart Key within the 
vehicle interior. If successful, the Smart Key needs to be docked. Once 
the Smart Key is docked/placed in the correct position, and the 
ignition start button is pressed again, the BCM and Smart key enter a 
coded data exchange via the Immobilizer Antenna Unit. The BCM then 
passes the valid key status to the instrument cluster, via the 
Immobilizer Antenna Unit and sends the key valid message to the PCM, 
which initiates a coded data transfer. If successful, engine starting 
is authorized.
    Jaguar Land Rover stated that its immobilizer system on the Jaguar 
I-Pace is substantially similar to the antitheft devices using similar 
technology installed on the Jaguar F-Pace, Jaguar XJ, Jaguar F-Type, 
Jaguar XF, Jaguar XE, Land Rover Discovery Sport and the Land Rover 
Range Rover Evoque.

c. Honda

    In a petition dated December 13, 2019, Honda requested an exemption 
from the parts-marking requirements of the Theft Prevention Standard 
for its HR-V vehicle line beginning with MY 2021. Pursuant to section 
543.6(a)(1), Honda stated that the antitheft device described in its 
petition--a transponder-based ignition immobilizer system--will be 
installed as standard equipment on HR-V vehicles starting with MY 2021.
    In accordance with section 543.6(a)(2), Honda provided a detailed 
description and diagram of the identity, design, and location of the 
components of the antitheft device for the HR-V vehicle line. Honda 
stated that its vehicle line will offer a front-wheel drive and an all-
wheel drive variation. Honda further stated that its MY 2021 HR-V 
vehicle line will be installed with a transponder-based, engine 
immobilizer antitheft device as standard equipment. More specifically, 
Honda stated that the HR-V vehicle line will offer two types of 
ignition systems, a ``smart entry push button start'' ignition system 
(``smart entry'') and a keyed ignition system with a key fob. 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 further stated that its vehicle 
line will be installed with a vehicle security alarm system as standard 
equipment which will activate a visible and audible alarm whenever 
unauthorized access is attempted.
    Honda provided information on the reliability and durability of its 
proposed device as required by section 543.6(a)(3)(v). To ensure 
reliability and durability of the device, Honda conducted tests based 
on its own specified standards. Honda provided a detailed list of the 
tests it used to validate the integrity, durability and reliability of 
its device and stated that the company believes that it follows a 
rigorous development process to ensure that its antitheft device will 
be reliable and robust for the life of the vehicle. Honda stated that 
its device does not require the presence of a ``smart entry'' remote 
battery to function nor does it have any moving parts (i.e., the PCM, 
IMOES, ignition key, ``smart entry'' remote and the corresponding 
electrical components found within its own housing units), which it 
believes reduces the chance for deterioration and wear from normal use. 
Honda also stated that additional levels of reliability, durability and 
security will be accomplished because it will incorporate counterfeit 
resistant vehicle identification number (VIN) plates, secondary VINs, a 
hood release located inside the vehicle, and its smart entry remote 
will utilize rolling codes for the lock and unlock functions of its 
vehicles.
    Honda further stated that its immobilizer device is always active 
without requiring any action from the vehicle operator as long as the 
matching smart entry remote is outside of the operating range and the 
engine is turned off. Deactivation occurs when a valid ``smart entry'' 
remote with matching codes is placed within operating range and the 
engine start/stop button is pushed to start 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. 
Additionally, an ignition immobilizer telltale indicator will begin 
flashing on the meter panel providing the status of the immobilizer 
device.
    Honda stated that the audible and visible vehicle security alarm 
system installed on its HR-V vehicles will monitor any attempts of 
unauthorized entry and attract attention to an unauthorized person 
attempting to enter its vehicles without the use of a ``smart entry'' 
remote or its built-in mechanical door key. Specifically, Honda stated 
that whenever an attempt is made to open one of its vehicle doors, hood 
or trunk without using the ``smart entry'' remote or turning a key in 
the key cylinder to disarm the vehicle, the vehicle's horn will sound 
and its lights will flash. Honda stated that its vehicle security 
system is activated when all of the doors are locked and the hood and 
trunk are closed and locked. Honda further stated that its vehicle 
security system is deactivated by using the key fob buttons to unlock 
the vehicle doors or having the ``smart entry'' remote within operating 
range when the operator grabs either of the vehicle's front door 
handles.
    Honda believes that installation of the antitheft immobilizer 
device as standard equipment reduces the vehicle theft rate by making 
conventional methods of theft obsolete, i.e., punching out the steering 
column or hot-wiring the ignition. Additionally, Honda stated that the 
immobilizer device proposed for the 2021 HR-V is similar to the design 
offered on its Honda Civic, Honda Accord, Honda CR-V, Honda Pilot and 
Acura MDX, Honda Passport, and the Acura TLX vehicles which have been 
granted an exemption by the agency.

d. Volkswagen

    In a petition dated December 20, 2019, Volkswagen requested an 
exemption from the parts-marking

[[Page 48763]]

requirements of the Theft Prevention Standard for its ID.4 beginning 
with MY 2021. Pursuant to section 543.6(a)(1), Volkswagen stated that 
the antitheft device described in its petition will be installed as 
standard equipment on the ID.4 vehicles starting with MY 2021.
    In accordance with section 543.6(a)(2), Volkswagen provided a 
detailed description and diagram of the identity, design, and location 
of the components of the antitheft device for its ID.4 vehicle line.\8\ 
Volkswagen stated that its MY 2021 ID.4 line will be installed with its 
fifth generation transponder-based electronic engine immobilizer 
antitheft device as standard equipment on the entire vehicle line. Key 
components of the antitheft device will include an immobilizer, power 
control unit (LSG1) in case of 4Motion all-wheel-drive system (LSG1 and 
LSG2), adapted ignition key (key fob) and an in-car application server 
1 (ICAS1) with integrated gateway.
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    \8\ Volkswagen also stated that it will offer an audible and 
visible alarm as optional equipment on its ID.4 line. Per 49 U.S.C. 
33106(b), manufacturers may petition NHTSA for an exemption ``for a 
line of passenger motor vehicles equipped as standard equipment with 
an anti-theft device that [NHTSA] decides is likely to be as 
effective in reducing and deterring motor vehicle theft as 
compliance with'' the Theft Prevention Standard (emphasis added). 
Per 49 U.S.C. 33106(a)(2), ``standard equipment'' means equipment 
already installed in a motor vehicle when it is delivered from the 
manufacturer and not an accessory or other item that the first 
purchaser customarily has the option to have installed. Therefore, 
for purposes of Volkswagen's petition, NHTSA is only considering the 
device equipped on the vehicle as standard equipment.
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    Volkswagen provided information on the reliability and durability 
of its proposed device as required by section 543.6(a)(3)(v). To ensure 
reliability and durability of the device, Volkswagen stated that the 
antitheft device has been tested for compliance with its corporate 
requirements, including those for electrical and electronic assemblies 
in motor vehicles related to performance requirements including 
electrical system temperature stability, mechanical integrity, 
electrical performance, electromagnetic compatibility (EMC), 
environmental compatibility and service life.
    Volkswagen stated that its immobilizer device is aimed to actively 
incorporate the power control unit into the evaluation and monitoring 
process. Volkswagen also stated that activation of its immobilizer 
device occurs automatically after the engine is switched off. 
Deactivation of the immobilizer device occurs when the ignition is 
turned on or the key fob is recognized by the immobilizer control unit. 
Specifically, when turning on the ignition on/off switch, the key 
transponder sends a fixed code to the immobilizer control unit. If this 
is identified as the correct code, a variable code is generated in the 
immobilizer control unit and sent to the transponder. Volkswagen stated 
that a secret arithmetic process is then started according to a set of 
specific equations and that a new variable code is generated every time 
the immobilizer goes through the secret computing process. The results 
of the computing process are evaluated in the control unit and if 
verified, the vehicle key is acknowledged as correct. The engine 
control unit then sends a variable code to the immobilizer control unit 
for mutual identification. If all the data matches, the vehicle can be 
started.
    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, Volkswagen referenced the effectiveness of 
immobilizer devices installed on other vehicles for which NHTSA has 
granted exemptions. Specifically, Volkswagen referenced information 
from the Highway Loss Data Institute which showed that BMW vehicles 
experienced theft loss reductions resulting in a 73% decrease in 
relative claim frequency and a 78% lower average loss payment per claim 
for vehicles equipped with an immobilizer. Volkswagen also stated that 
the National Crime Information Center's (NCIC) theft data showed that 
there was a 70% reduction in theft experienced when comparing the MY 
1987 Ford Mustang vehicle thefts (with immobilizers) to MY 1995 Ford 
Mustang vehicle thefts (without immobilizers).

III. Decision To Grant the Petitions

    As discussed above, the petitions for all four manufacturers' 
vehicle lines are considered approved under 49 U.S.C. 33106. 
Separately, NHTSA believes, based on the supporting evidence submitted 
by each manufacturer, that the antitheft device described for each 
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.
    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 each manufacturer has provided adequate reasons for its 
belief that the antitheft device for each 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 each manufacturer 
provided about its antitheft device.
    As discussed in the notice, Petitions for Exemption From the 
Federal Motor Vehicle Theft Prevention Standard in the Federal Register 
of Monday, May 11, 2020,\9\ NHTSA would like to reiterate that for 
manufacturers providing data to support their belief that a line of 
passenger motor vehicles equipped with the antitheft device is likely 
to have a theft rate equal to or less than that of the same, or 
similar, line which have parts marked in compliance with part 541, the 
agency is looking for the manufacturer to provide data comparing the 
subject vehicle line to that of a same, or similar line, pursuant to 
section 543.6(a)(5).\10\
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    \9\ 85 FR 27798 (May 11, 2020).
    \10\ This is because, to make a valid comparison, NHTSA must 
carefully choose two sets of vehicles that are as nearly similar as 
possible so that the agency can be reasonably certain that any 
differences or similarities in the theft rates of the two sets of 
vehicles can be attributed to the presence of an anti-theft device 
or parts marking and not to extraneous, confounding variables.
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    The agency concludes that for Ford, Jaguar Land Rover, Honda and 
Volkswagen, each described device will provide the five types of 
performance features listed in section 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 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 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 any manufacturer listed in this notice decides not to use the 
exemption

[[Page 48764]]

for its requested vehicle line, the manufacturer must formally notify 
the agency. If such a decision is made, the line must be fully marked 
as required by 49 CFR 541.5 and 541.6 (marking of major component parts 
and replacement parts).
    NHTSA notes that if any manufacturer listed in this notice 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 543.8(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, section 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 the exemption.''
    The agency wishes to minimize the administrative burden that 
section 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 any 
manufacturer listed in this notice 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 the 
following petitions for exemption for the following manufacturers' 
vehicle lines for the following model years: Ford Motor Company (Ford) 
for its Bronco Sport vehicle line beginning in MY 2021; Jaguar Land 
Rover North America LLC (Jaguar Land Rover) for its Jaguar I-Pace 
vehicle line beginning in MY 2021; American Honda Motor Co., Inc. 
(Honda) for its HR-V beginning in MY 2021; and Volkswagen Group of 
America, Inc. (Volkswagen) for its ID.4 beginning in MY 2021.

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.95 and 501.8.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2020-17596 Filed 8-11-20; 8:45 am]
BILLING CODE 4910-59-P