[Federal Register Volume 87, Number 153 (Wednesday, August 10, 2022)]
[Notices]
[Pages 48768-48770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-17106]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption from the Federal Motor Vehicle Theft 
Prevention Standard; Ford Motor Company

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 Ford Motor Company (Ford) 
petition for exemption from the Federal Motor Vehicle Theft Prevention 
Standard (theft prevention standard) for its Bronco vehicle line 
beginning in model year (MY) 2023. 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. Ford 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 2023 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 49 CFR 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 with an antitheft device as standard 
equipment 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 
antitheft 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 antitheft device (an 
``immobilizer'') as standard equipment that complies with one of the 
standards specified in that section.\1\
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    \1\ 49 CFR 543.7 specifies that the manufacturer must include a 
statement that their entire vehicle line is equipped with an 
immobilizer that meets one of the following standards:
    (1) The performance criteria (subsection 8 through 21) of C.R.C, 
c. 1038.114, Theft Protection and Rollaway Prevention (in effect 
March 30, 2011), as excerpted in appendix A of [part 543];
    (2) National Standard of Canada CAN/ULC-S338-98, Automobile 
Theft Deterrent Equipment and Systems: Electronic Immobilization 
(May 1998);
    (3) United Nations Economic Commission for Europe (UN/ECE) 
Regulation No. 97 (ECE R97), Uniform Provisions Concerning Approval 
of Vehicle Alarm System (VAS) and Motor Vehicles with Regard to 
Their Alarm System (AS) in effect August 8, 2007; or
    (4) UN/ECE Regulation No. 116 (ECE R116), Uniform Technical 
Prescriptions Concerning the Protection of Motor Vehicles Against 
Unauthorized Use in effect on February 10, 2009.
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    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 the agency 
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

[[Page 48769]]

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 petition for the subsequent model year.\2\ Exemptions granted under 
part 543 apply only to the vehicle line or lines that are subject to 
the grant and that are equipped with the antitheft device on which the 
line's exemption was based, and are 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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    \2\ 49 U.S.C. 33106(d).
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    Sections 543.8(f) and (g) apply to the manner in which 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 petition for exemption considers Ford Motor 
Corporation's (Ford) petition for its Bronco vehicle line beginning in 
MY 2023.

I. Specific Petition Content Requirements Under 49 CFR 543.6

    Pursuant to 49 CFR part 543, Exemption from Vehicle Theft 
Prevention, Ford petitioned for an exemption for its specified vehicle 
line from the parts-marking requirements of the theft prevention 
standard, beginning in MY 2023. Ford petitioned under 49 CFR 543.6, 
Petition: Specific content requirements, which, as described above, 
requires manufacturers to provide specific information about the 
antitheft device installed as standard equipment on all vehicles in the 
line for which an exemption is sought, the antitheft 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 include 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.\3\
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    \3\ 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 their 
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,\4\ and the reasons for their 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. In support of this belief, the 
petitioners should include 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.\5\
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    \4\ 49 CFR 543.6(a)(4).
    \5\ 49 CFR 543.6(a)(5).
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    The following sections describe Ford's petition information 
provided pursuant to 49 CFR part 543, Exemption from Vehicle Theft 
Prevention. To the extent that specific information in Ford's petition 
is subject to a properly filed confidentiality request, that 
information was not disclosed as part of this notice.\6\
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    \6\ 49 CFR 512.20(a).
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II. Ford's Petition for Exemption

    In a petition dated April 7, 2022, Ford requested an exemption from 
the parts-marking requirements of the theft prevention standard for its 
Bronco vehicle line beginning with MY 2023.
    In its petition, Ford provided a detailed description and diagram 
of the identity, design, and location of the components of the 
antitheft device for the Bronco vehicle line. Ford stated that its MY 
2023 Bronco vehicle line will be installed with a passive, transponder 
based, electronic engine immobilizer antitheft device as standard 
equipment. Specifically, Ford stated that its vehicle line will be 
installed with the Intelligent Access with Push Button Start (IAwPB). 
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), and an anti-lock braking system module (ABS). Ford also 
stated that its vehicle line will be equipped with a hood release, 
counterfeit resistant VIN label, secondary VINs inscribed on the body 
and a cabin accessible with a valid keycode as standard antitheft 
features.
    Ford further stated that its Bronco vehicle line will also be 
offered with a perimeter alarm system \7\ as optional 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. NHTSA has previously approved the 
IAwPB antitheft system as standard equipment for the Ford Bronco Sport 
vehicle line. The IAwPB system is described in the grant of petition 
for exemption published in the Federal Register on August 12, 2020.
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    \7\ Ford also stated that it will offer an audible and visible 
alarm as optional equipment on its Bronco 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 
antitheft 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 Ford's petition, NHTSA is only considering the 
device equipped on the vehicle as standard equipment.
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    Pursuant to section 543.6(a)(3), Ford explained that its system is 
automatically activated/armed 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

[[Page 48770]]

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.
    As required in section 543.6(a)(3)(v), Ford provided information on 
the reliability and durability of its proposed device. To ensure 
reliability and durability of the 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 
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 stated that the antitheft system installed in its 2023 MY Ford 
Bronco vehicles is similar to the system that was offered in the 2021 
MY Ford Bronco Sport vehicles equipped with the IAwPB. The Bronco Sport 
vehicle line was granted a parts-marking exemption by NHTSA (85 FR 
48759, August 12, 2020) beginning with its MY 2021 vehicles.
    Ford believes that the Ford Bronco would have a similar theft rate 
to the Ford Bronco Sport. Ford specifically stated that the Bronco 
Sport vehicle line is comparable with the Ford Bronco in vehicle 
segment, size and equipment and since the IAwPB system is the primary 
theft deterrent on Ford vehicles, Ford believes that the Ford Bronco 
will likely have a very low theft rate based on the comparable Ford 
Bronco Sport average theft rate of approximately 0.5/1000. Ford also 
stated that its Ford Bronco Sport reported theft rates (thefts per 
thousand vehicles) that are lower than the ``all vehicle theft rate'' 
in each calendar year published.

III. Decision To Grant the Petition

    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 Ford has provided adequate reasons for its belief that the 
antitheft device for its 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 Ford provided about its 
antitheft device. NHTSA believes, based on Ford's supporting evidence, 
that the antitheft device described for its 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.
    The agency concludes that Ford's antitheft device will provide four 
types of performance features listed in section 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 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 Ford decides not to use the exemption 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 Ford 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 
Ford 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 Ford's 
petition for exemption for the Bronco vehicle line from the parts-
marking requirements of 49 CFR part 541, beginning with its MY 2023 
vehicles.
    Issued under authority delegated in 49 CFR 1.95, 501.5 and 501.8.

Jane H. Doherty,
Director, Office of International Policy, Fuel Economy & Consumer 
Standards.
[FR Doc. 2022-17106 Filed 8-9-22; 8:45 am]
BILLING CODE 4910-59-P