14946 Federal Register / Vol. 87, No. 51 / Wednesday, March 16, 2022 / Notices 

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 (subsections 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. 

Hourly labor 

cost 

Average time 

per petition 

submittal 

(hours) 

Labor 

cost/petition 

Estimated No. 

of Petitions/ 

Year 

Annual labor 

cost 

Preparation and Submittal of Petition for Exemption under 

§ 543.6 .............................................................................. $49.73 226 $11,238.98 9 $101,151 

Preparation and Submittal of Petition for Exemption under 

§ 543.7 .............................................................................. 49.73 20 994.60 3 2,984 

Estimated Annual Labor Cost for This Information 

Collection: .................................................................. ........................ ........................ ........................ ........................ $104,135 

Estimated Total Annual Burden Cost 

to Respondents: $0. 

NHTSA estimates that there will be 

no costs to respondents other than labor 

costs associated with burden hours. 

Public Comments Invited: You are 

asked to comment on any aspects of this 

information collection, including (a) 

whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the proposed collection 

of information, including the validity of 

the methodology and assumptions used; 

(c) ways to enhance the quality, utility 

and clarity of the information to be 

collected; and (d) ways to minimize the 

burden of the collection of information 

on respondents, including the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology, e.g., permitting 

electronic submission of responses. 

(Authority: The Paperwork Reduction Act of 

1995; 44 U.S.C. Chapter 35, as amended; 49 

CFR 1.49; and DOT Order 1351.29) 

Issued in Washington, DC. 

Raymond R. Posten, 

Associate Administrator for Rulemaking. 

[FR Doc. 2022–05574 Filed 3–15–22; 8:45 am] 

BILLING CODE 4910–59–P 

DEPARTMENT OF TRANSPORTATION 

National Highway Traffic Safety 

Administration 

Petition for Exemption From the 

Federal Motor Vehicle Theft Prevention 

Standard; Volkswagen Group of 

America, Inc. 

AGENCY: National Highway Traffic 

Safety Administration (NHTSA), 

Department of Transportation (DOT). 

ACTION: Grant of petition for exemption. 

SUMMARY: This document grants in full 

the Volkswagen Group of America, 

Inc.’s (Volkswagen) petition for 

exemption from the Federal Motor 

Vehicle Theft Prevention Standard (theft 

prevention standard) for its Audi e-tron 

GT 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. Volkswagen 

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 partsmarking 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 partsmarking 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 § 543.6 or § 543.7. Under 

§ 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

Section 543.8 establishes 

requirements for processing petitions for 

exemption from the theft prevention 

standard. As stated in § 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 § 543.8(b), will grant 

the petition if it determines that, based 

upon substantial evidence, the standard 

equipment antitheft device is likely to 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 51 / Wednesday, March 16, 2022 / Notices 14947 

2 49 U.S.C. 33106(d). 

3 49 CFR 543.6(a)(3). 

4 49 CFR 543.6(a)(4). 

5 49 CFR 543.6(a)(5). 

6 49 CFR 512.20(a). 

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. 

Sections 543.8(f) and (g) apply to the 

manner in which NHTSA’s decisions on 

petitions are to be made known. Under 

§ 543.8(f), if the petition is sought under 

§ 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 

§ 543.8(g), if the petition is sought under 

§ 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 Volkswagen Group of 

America, Inc.’s (Volkswagen) petition 

for its Audi e-tron GT 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, Volkswagen petitioned for 

an exemption for its specified vehicle 

line from the parts-marking 

requirements of the theft prevention 

standard, beginning in MY 2023. 

Volkswagen 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, § 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 § 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 § 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

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

The following sections describe 

Volkswagen’s petition information 

provided pursuant to 49 CFR part 543, 

Exemption from Vehicle Theft 

Prevention. To the extent that specific 

information in Volkswagen’s petition is 

subject to a properly filed 

confidentiality request, that information 

was not disclosed as part of this notice.6

II. Volkswagen’s Petition for Exemption 

In a petition dated November 29, 

2021, Volkswagen requested an 

exemption from the parts-marking 

requirements of the theft prevention 

standard for its Audi e-tron GT vehicle 

line beginning with MY 2023. 

In its petition, Volkswagen provided a 

detailed description and diagram of the 

identity, design, and location of the 

components of the antitheft device for 

its Audi e-tron GT vehicle line. 

Volkswagen stated that its fifth 

generation transponder-based electronic 

engine immobilizer antitheft device will 

be installed as standard equipment on 

the entire MY 2023 Audi e-tron GT 

vehicle line, including any sport or 

special editions within the line. Key 

components of the antitheft device will 

include an adapted ignition key (IDtransmitter or ‘‘key fob’’), body 

computer 2 (BMC2) as the immobilizer’s 

primary control unit, park lock actuator 

as a secondary control unit and power 

control units one and two as secondary 

control units. 

Pursuant to § 543.6(a)(3), Volkswagen 

explained that its immobilizer device 

actively incorporates the power control 

unit into the evaluation and monitoring 

process. Volkswagen also stated that 

activation of its immobilizer device 

occurs 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. 

Volkswagen stated that a secret 

arithmetic process is then started 

according to a set of specific equations 

and that a new variable code is 

generated every time the immobilizer 

goes through the secret computing 

process. 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 then sends a variable code 

to the immobilizer control unit for 

mutual identification. If all the data 

matches, the vehicle can be started. 

As required in § 543.6(a)(3)(v), 

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 

with its corporate requirements, 

including those for electrical and 


jspears on DSK121TN23PROD with NOTICES1
14948 Federal Register / Vol. 87, No. 51 / Wednesday, March 16, 2022 / Notices 

electronic assemblies in motor vehicles 

related to performance requirements 

including electrical system temperature 

stability, mechanical integrity, electrical 

performance, electromagnetic 

compatibility (EMC), environmental 

compatibility and service life. 

In accordance with 49 CFR 

543.6(a)(5), Volkswagen provided data 

on the theft rate of similarly-sized 

vehicle lines that had been granted an 

exemption from the parts-marking 

requirement. Volkswagen also 

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 which 

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. Volkswagen also stated 

that the National Crime Information 

Center’s (NCIC) theft data showed that 

there was a 70% reduction in theft 

experienced when comparing the MY 

1987 Ford Mustang vehicle thefts (with 

immobilizers) to MY 1995 Ford Mustang 

vehicle thefts (without immobilizers). 

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 partsmarking 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 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 the Volkswagen 

provided about its antitheft device. 

NHTSA believes, based on the 

supporting evidence submitted by 

Volkswagen, 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 

Volkswagen’s antitheft device will 

provide the five types of performance 

features listed in § 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. 

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 Volkswagen 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 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. 

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, § 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 

§ 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 Volkswagen 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 Volkswagen’s 

petition for exemption for the Audi etron GT vehicle line from the partsmarking requirements of 49 CFR part 

541, beginning with its MY 2023 

vehicles. 

Issued under authority delegated in 

49 CFR 1.95 and 501.8. 

Raymond R. Posten, 

Associate Administrator for Rulemaking. 

[FR Doc. 2022–05571 Filed 3–15–22; 8:45 am] 

BILLING CODE 4910–59–P 


jspears on DSK121TN23PROD with NOTICES1