[Federal Register Volume 88, Number 18 (Friday, January 27, 2023)]
[Notices]
[Pages 5410-5413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01603]


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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 Mustang Mach-E vehicle 
line beginning in model year (MY) 2024. 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 2024 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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[[Page 5411]]

    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 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 Mustang Mach-E vehicle line 
beginning in MY 2024.

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 2024. 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 originally submitted on July 11, 2022 and re-
submitted on September 14, 2022, Ford requested an exemption from the 
parts-marking requirements of the theft prevention standard for its 
Mustang Mach-E vehicle line beginning with MY 2024.
    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 Mustang Mach-E vehicle line. Ford stated that 
its MY 2024 Mustang Mach-E vehicle line will be installed with a 
passive, transponder based, electronic engine immobilizer antitheft 
device as standard equipment. Ford also stated that its Mustang Mach-E 
vehicle line will offer a phone as a key (PaaK) feature 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 a key fob, radio 
transceiver module, engine start/stop button, body control module 
(BCM), primary drive control module (PDCM) (battery electric vehicle 
(BEV) equivalent of the powertrain control module (PCM), secondary 
drive control module (SDCM), Bluetooth low energy module (BLEM) and an 
embedded secure modem (for PaaK feature). 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 Mustang Mach-E vehicle line will also 
be offered with a perimeter alarm system \7\ as

[[Page 5412]]

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 
perimeter alarm as optional equipment on its Mustang Mach-E 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 there is no 
manual activation of its antitheft system and that it is 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 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, the BLEM, the 
SDCM, then the PDCM equivalent of 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 there are three 
modules that must be matched together in order for the vehicle to 
start. If the codes do not match, the electric drive inverter for each 
drive motor is disabled preventing currents reaching the motor which 
then prevents torque from being produced at the wheels. 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, BLEM, SDCM and the 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 Mustang Mach-E 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 2024 MY Ford 
Mustang Mach-E vehicles is similar to the system that was offered in 
the 2021 MY Ford Bronco Sport vehicles equipped with the IAwPB. The 
Ford 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 Mustang Mach-E would have a similar 
theft rate to the Ford Edge. Ford specifically stated that the Ford 
Edge vehicle line is comparable with the Ford Mustang Mach-E in vehicle 
segment, size and equipment and since the IAwPB system is the primary 
theft deterrent on Ford vehicles, Ford believes that the Ford Mustang 
Mach-E will likely have a very low theft rate based on the comparable 
Ford Edge average theft rate of approximately 2.9/1000. Ford also 
stated that its Ford Mustang with the antitheft system showed a 70% 
reduction in theft rate compared to the MY 1995 Ford Mustang, according 
to the National Insurance Crime Bureau (NICB) theft statistics.

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

[[Page 5413]]

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 Mustang Mach-E vehicle line from the 
parts-marking requirements of 49 CFR part 541, beginning with its MY 
2024 vehicles.
    Issued under authority delegated in 49 CFR 1.95 and 501.8.

Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2023-01603 Filed 1-26-23; 8:45 am]
BILLING CODE 4910-59-P