[Federal Register Volume 72, Number 2 (Thursday, January 4, 2007)]
[Notices]
[Pages 360-361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-9959]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Vehicle Theft Prevention 
Standard; BMW

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 BMW of North America, LLC 
(BMW) petition for exemption of the X3 vehicle line in accordance with 
49 CFR part 543, Exemption from the Theft Prevention Standard. This 
petition is granted because the agency has determined that the 
antitheft device to be placed on the line as standard equipment is 
likely to be as effective in reducing and deterring motor vehicle theft 
as compliance with the parts-marking requirements of the Theft 
Prevention Standard (49 CFR part 541).

DATES: The exemption granted by this notice is effective beginning with 
the 2007 model year (MY).

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Mazyck, Office of 
International Vehicle, Fuel Economy and Consumer Standards, NHTSA, 400 
Seventh Street, SW., Washington, DC 20590. Ms. Mazyck's telephone 
number is (202) 366-0846. Her fax number is (202) 493-2290.

SUPPLEMENTARY INFORMATION: In a petition dated July 18, 2006, BMW 
requested exemption from the parts-making requirements of the theft 
prevention standard (49 CFR part 541) for the MY 2007 BMW X3 vehicle 
line. The petition requested 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 an entire vehicle line. BMW's submission is considered a complete 
petition as required by 49 CFR 543.7, in that it meets the general 
requirements contained in 543.5 and the specific content requirements 
of 543.6.
    Under Sec.  543.5(a), a manufacturer may petition NHTSA to grant 
exemptions for one line of its vehicle lines per year. In its petition, 
BMW provided a detailed description and diagram of the identity, 
design, and location of the components of the antitheft device for the 
X3 Vehicle line. BMW will install its antitheft device, the 
Electronically-coded Vehicle Immobilizer (EWS), as standard equipment 
on the BMW X3 vehicle line beginning with MY 2007. Features of the 
antitheft device will include a key with a transponder, loop antenna 
(coil) around the steering lock cylinder, EWS control unit and passive 
immobilizer.
    BMW stated that the EWS immobilizer device prevents the vehicle 
from being driven away under its own engine power. The EWS control unit 
provides the interface to the loop antenna (coil), engine control unit 
and starter. It queries key data from the

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transponder and provides the coded release of the engine management for 
a valid key. The ignition and fuel supply are only released when a 
correct coded release signal has been sent by the EWS control unit, to 
allow the vehicle to start. The immobilizer device is automatically 
activated when the engine is shut off and the vehicle key is removed 
from the ignition lock cylinder. In addition to the key, the antitheft 
device can be activated by the use of its radio frequency remote 
control. The frequency for the remote control constantly changes to 
prevent an unauthorized person from opening the vehicle by intercepting 
the signals of its remote control. The vehicle is also equipped with a 
central-locking system that can be operated to lock and unlock all 
doors or to unlock only the driver's door, preventing forced entry into 
the vehicle through the passenger doors.
    In addressing the specific content requirements of 543.6, BMW 
provided information on the reliability and durability of its proposed 
device. To ensure reliability and durability of the device, BMW 
conducted tests based on its own specified standards. BMW also provided 
a detailed list of the tests conducted and believes that the device is 
reliable and durable since the device complied with this specified 
requirements for each test. BMW stated that because the EWS immobilizer 
device is incorporated into the ignition, fuel injection, and starter 
circuit of the vehicle and is activated passively, reliability and 
durability of the system have to be ensured because the vehicle will 
not start if the EWS system malfunctions. BMW also stated that, if a 
malfunction should occur, the EWS device incorporates a microprocessor 
that can be accessed by using BMW diagnostic equipment to diagnose and 
correct the cause of the problem.
    BMW further stated that NHTSA's preliminary theft rate data (0.5955 
thefts/thousand vehicles produced) for calendar year/model year 2004 
shows the effectiveness of the antitheft system on the X3 line. The 
theft rate is below the rate of 1.83 thefts/thousand vehicles for the 
entire U.S. fleet, a ranking of 188 out of 231 lines.
    For clarification purposes, the agency notes that it does not 
collect theft data. NHTSA publishes theft rates based on data provided 
by the National Crime Information Center (NCIC) of the Federal Bureau 
of Investigation. NHTSA uses NCIC data to calculate theft rates and 
publishes these rates annually in the Federal Register.
    The effectiveness of BMW's EWS is compared with devices which NHTSA 
has previously determined to be as effective in reducing and deterring 
motor vehicle theft as would compliance with the parts-making 
requirements of part 541. The antitheft device that BMW intends to 
install on its X3 vehicle line for MY 2007 is the same system that BMW 
installed on its BMW X5 line, BMW 6 line, BMW 7 line, the BMW Z4 line 
and the MINI vehicle line. BMW has concluded that the antitheft device 
proposed for its X3 line is no less effective than those devices for 
which NHTSA has already granted exemptions from the parts-marking 
requirements.
    BMW stated that the proposed antitheft device does not provide any 
visible or audible indication of unauthorized entry. Theft data have 
indicated a decline in theft rates, as published by NHTSA, for vehicle 
lines that have been equipped with antitheft devices similar to that 
which BMW proposes to install on the X3 line. Citing the grant of 
exemptions for the Oldsmobile Aurora and the Buick Riviera, BMW notes 
that the agency has concluded that the lack of a visual or audio alarm 
has not prevented these antitheft devices from being effective 
protection against theft.
    Pursuant to 49 U.S.C. 33106 and 49 CFR 543.7(b), the agency finds 
that BMW has provided adequate reasons for its belief that the 
antitheft device for the X3 vehicle line will reduce and deter theft. 
The agency concludes that the device will provide four of the five 
types of performance listed in Sec.  543.6(a)(3): Promoting activation; 
preventing defeat or circumvention of the device by unauthorized 
persons; preventing operation of the vehicle by unauthorized entrants; 
and ensuring the reliability and durability of the device.
    The agency agrees that the device is substantially similar to 
devices for which the agency has previously approved exemptions, 
including the BMW X5 line, BMW 6 line, BMW 7 line, the BMW Z4 line and 
the MINI vehiche line. In addition, the X3 vehicle line, which has had 
the device as standard equipment since the 2004 model year, has a theft 
rate below the median theft rate. This conclusion is based on the 
information BMW provided about the device for the BMW X3 vehicle line.
    For the foregoing reasons, the agency hereby grants in full BMW's 
petition for exemption for the X3 vehicle line from the parts-marking 
requirements of 49 CFR part 541, beginning with the 2007 model year. 
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 543.7(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 BMW decides not to use the exemption for this line, it must 
formally notify the agency, and, thereafter, 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 BMW 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 543.7(d) states that a part 
543 exemption applies only to vehicles that belong to a line exempted 
under this part and equipped with the anti-theft device on which the 
lines's exemption is based. Further, Sec.  543.9(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 Sec.  
543.9(c)(2) could place on exempted vehicle manufacturers and itself. 
The agency did not intend part 543 to require the submission of a 
modification petition for every change to the components or design of 
an antitheft device. The significance of many such changes could be de 
minimis. Therefore, NHTSA suggests that if the manufacturer 
contemplates making any changes the effects of which might be 
characterized as de minimis, it should consult the agency before 
preparing and submitting a petition to modify.

    Authority: 49 U.S.C. 33106; delegation of authority at 49 CFR 
1.50.

    Issued on: December 15, 2006.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
[FR Doc. 06-9959 Filed 1-3-07; 8:45 am]
BILLING CODE 4910-59-M