[Federal Register Volume 80, Number 50 (Monday, March 16, 2015)]
[Notices]
[Pages 13665-13667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-05831]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Vehicle Theft Prevention 
Standard; Volkswagen Group of America, Inc.

AGENCY: National Highway Traffic Safety Administration, Department of 
Transportation.

ACTION: Grant of petition for exemption.

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SUMMARY: This document grants in full the Volkswagen Group of America, 
Inc.'s (Volkswagen's) petition for exemption of the Audi TT 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 49 CFR part 541, Federal Motor Vehicle Theft Prevention 
Standard (Theft Prevention Standard).

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DATES: The exemption granted by this notice is effective beginning with 
the 2016 model year (MY).

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Mazyck, Office of 
International Policy, Fuel Economy and Consumer Programs, NHTSA, West 
Building, W43-443, 1200 New Jersey Avenue SE., Washington, DC 20590. 
Ms. Mazyck's phone number is (202) 366-4139. Her fax number is (202) 
493-2990.

SUPPLEMENTARY INFORMATION: In a petition dated January 9, 2015, 
Volkswagen requested an exemption from the parts-marking requirements 
of the Theft Prevention Standard for the Audi TT vehicle line beginning 
with MY 2016. 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 the entire vehicle line.
    Under 49 CFR part 543.5(a), a manufacturer may petition NHTSA to 
grant an exemption for one vehicle line per model year. In its 
petition, Volkswagen provided a detailed description and diagram of the 
identity, design, and location of the components of the antitheft 
device for the Audi TT vehicle line. Volkswagen stated that the MY 2016 
Audi TT will be installed with its fifth generation, transponder-based 
electronic engine immobilizer antitheft device as standard equipment on 
the entire vehicle line. Volkswagen stated that its immobilizer device 
is aimed to actively incorporate the engine control unit and the 
automatic gearbox into the evaluation and monitoring processes. Key 
components of the antitheft device will include an engine control unit, 
instrument cluster, gateway, automatic gearbox, and an adapted 
transponder ignition key (key fob). Volkswagen stated that keyless 
entry and locking control will be available as standard equipment on 
the entire Audi TT vehicle line. Volkswagen stated that the keyless 
entry and locking control uses a transponder key that allows the doors 
to be locked by touching a button on the outside door handle of the 
vehicle, or to be opened by touching the outside door handle when the 
key fob is near the door. Volkswagen also stated that its antitheft 
device will include an audible and visible alarm system as standard 
equipment on the entire line. Volkswagen'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.
    Volkswagen stated that the immobilizer device is activated 
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. A secret arithmetic process 
is then started according to a set of specific equations. 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 and the automatic gearbox then sends a variable code to 
the immobilizer control unit for mutual identification. If all the data 
matches, start-up of the vehicle is enabled. Volkswagen stated that a 
new variable code is generated every time the immobilizer goes through 
the secret computing process. Therefore, Volkswagen stated that it 
believes the code is undecipherable.
    Activation of the audible and visible alarm system occurs when the 
``lock'' button on the key fob is pressed, the driver's door is locked, 
or when the vehicle is locked by using the keyless entry and locking 
control. When the system is activated, the horn will sound and the 
vehicle's exterior lights will flash when unauthorized entry is 
attempted by opening the hood, doors, or luggage compartment. 
Volkswagen also stated that deactivation of the audible and visible 
alarm system is performed by unlocking the vehicle doors with the key 
fob, using the mechanical key in the driver's door lock cylinder, or 
opening the vehicle using the keyless entry and locking control.
    In addressing the specific content requirements of 543.6, 
Volkswagen provided information on the reliability and durability of 
its proposed device. To ensure reliability and durability of the 
device, Volkswagen stated that the antitheft device has been tested for 
compliance to its corporate requirements, including those for 
electrical and electronic assemblies in motor vehicles related to 
performance.
    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 that 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. Additionally, Volkswagen 
stated that the proposed device is similar to the antitheft device 
installed on its Audi A3, A4, and Q3 vehicle lines. The agency granted 
in full the petition for the Audi A3 vehicle line beginning with model 
year 2010, (see 74 FR 10984, March 13, 2009), the Audi A4 vehicle line 
(see 71 FR 4966, January 30, 2006), and the Audi Q3 vehicle line 
beginning with model year 2015 (see 78 FR 50489, August 19, 2013). The 
agency notes that the average theft rate for the Audi A3 and A4 vehicle 
lines using three MYs' data (MYs 2010 through 2012) are 1.1974 and 
0.6096 respectively. Current theft rate data is not available for the 
Audi Q3 vehicle line. Volkswagen also submitted information showing 
that the theft rates published by NHTSA indicated that the Audi TT had 
very low theft rates for MYs 2010 through 2012. Specifically, theft 
rates for the Audi TT vehicle line for MYs 2010 through 2012 are 
0.8326, 0.000, and 0.000 respectively.
    The agency agrees that the device is substantially similar to 
devices installed on other vehicle lines for which the agency has 
already granted exemptions.
    Pursuant to 49 U.S.C. 33106 and 49 CFR 543.7 (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 Volkswagen has provided adequate reasons for its belief that 
the antitheft device for the Audi TT 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). This conclusion is based on the information 
Volkswagen provided about its antitheft device.
    Based on the evidence submitted by Volkswagen, the agency believes 
that the antitheft device for the Audi TT 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 541). The agency concludes that the device will 
provide four of the five types of

[[Page 13667]]

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.
    For the foregoing reasons, the agency hereby grants in full 
Volkswagen's petition for exemption for the Volkswagen Audi TT 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 part 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.
    NHTSA notes that if Volkswagen 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. Part 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 antitheft device on which the 
line's exemption is based. Further, Part 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 Part 
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.
    Under authority delegated in 49 CFR part 1.95.

Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2015-05831 Filed 3-13-15; 8:45 am]
BILLING CODE 4910-59-P