[Federal Register Volume 72, Number 88 (Tuesday, May 8, 2007)]
[Notices]
[Pages 26196-26197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-8730]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Vehicle Theft Prevention 
Standard; Volkswagen

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 petition of Volkswagen of 
America, Inc. (VW) in accordance with Sec.  543.9(c)(2) of 49 CFR part 
543, Exemption from the Theft Prevention Standard, for the Volkswagen 
New Beetle vehicle line beginning with model year (MY) 2008. 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. VW requested confidential treatment for the 
information and attachments it submitted in support of its petition. 
The agency will address VW's request for confidential treatment by 
separate letter.

DATES: The exemption granted by this notice is effective beginning with 
model year (MY) 2008.

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 February 7, 2007, VW 
requested an exemption from the parts-marking requirements of the Theft 
Prevention Standard (49 CFR part 541) for the Volkswagen New Beetle 
vehicle line beginning with MY 2008. 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 an entire vehicle line.
    Under Sec.  543.5(a), a manufacturer may petition NHTSA to grant 
exemptions for one of its vehicle lines per year. VW has petitioned the 
agency to grant an exemption for its New Beetle vehicle line beginning 
with MY 2008. In its petition, VW provided a detailed description and 
diagram of the identity, design, and location of the components of the 
antitheft device for its New Beetle vehicle line. VW will install its 
passive antitheft device as standard equipment on the line. Features of 
the antitheft device will include an immobilizer control unit, a 
reading coil on the ignition lock, an engine control unit, a 
transponder-based ignition key, a remote key fob and a visable and 
audible alarm. VW'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.
    VW stated that the device is activated by turning the key in the 
driver's door lock to the lock position or by locking the vehicle with 
the remote key fob. The New Beetle's immobilizer prevents the vehicle 
from being operated by unauthorized persons. When the ignition key is 
turned to the ``on'' position, the key's transporter, the immobilizer 
control unit, and the engine control unit initiate a complex set of 
tests to determine if vehicle start-up should be enabled. If the tests 
fail, the vehicle cannot be started. The vehicle's audible alarm and 
emergency flasher features are also activated if any of the protected 
areas of the vehicle are violated. The protected areas include the 
doors, luggage compartment, engine compartment and the radio.
    In its petition, VW further stated it believed its antitheft device 
has been and will be at least or more effective in reducing and 
deterring theft than the parts marking requirement. Referencing the 
data published by NHTSA, VW further stated that the theft rates for the 
VW Beetle have been significantly below the median.\1\ Specifically, 
theft rates for the MY 2000-2004 New Beetle were 0.9018, 1.1472, 
0.9992, 0.5943 and 0.6682 respectively. During these years, the vehicle 
line was voluntarily equipped with the standard alarm system and 
immobilizer.
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    \1\ For clarification purposes, the agency 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.
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    In addressing the specific content requirements of Sec.  543.6, VW 
provided information on the reliability and durability of its device. 
To ensure reliability and durability of the device, VW conducted tests 
based on its own specified standards and believes that the device is 
reliable and durable since the device complied with its specified 
requirements for each test. VW provided a detailed list of the tests 
conducted.
    Based on the evidence submitted by VW, the agency believes that the 
antitheft device for the Volkswagen New Beetle 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).
    As required by 49 U.S.C. 33106 and 49 CFR 543.6(a)(4) and (5), the 
agency finds that VW has provided adequate reasons for its belief that 
the antitheft device will reduce and deter theft. These conclusions are 
based on the information VW provided about its device. The agency 
concludes that the device will provide the five types of performance 
listed in Sec.  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.
    For the foregoing reasons, the agency hereby grants in full VW's 
petition for exemption for the Volkswagen New Beetle vehicle line from 
the parts-marking requirements of 49 CFR part 541. 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 VW decides not to use the exemption for this line, it must 
formally notify the agency. If such a decision is made, the line must 
be fully marked

[[Page 26197]]

according to the requirements under 49 CFR 541.5 and 541.6 (marking of 
major component parts and replacement parts).
    NHTSA notes that if VW 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 
line'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 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 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: May 2, 2007.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
 [FR Doc. E7-8730 Filed 5-7-07; 8:45 am]
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