[Federal Register Volume 75, Number 102 (Thursday, May 27, 2010)]
[Notices]
[Pages 29812-29814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12809]


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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 Volkswagen Group of America 
(Volkswagen) petition for an exemption of the new vehicle line 
[confidential nameplate] in accordance with 49 CFR part 543, Exemption 
from the Theft Prevention Standard. This petition is

[[Page 29813]]

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). Volkswagen requested confidential treatment for the 
information it submitted in support of its petition until the market 
introduction of its new MY 2010 vehicle line (expected to be not later 
than December 2011). The agency addressed Volkswagen's request for 
confidential treatment by letter dated April 30, 2010.

DATES: The exemption granted by this notice is effective beginning with 
the 2012 model year.

FOR FURTHER INFORMATION CONTACT: Ms. Carlita Ballard, Office of 
International Policy, Fuel Economy and Consumer Programs, NHTSA, 1200 
New Jersey Avenue, SE., West Building, W43-439, Washington, DC 20590. 
Ms. Ballard's phone number is (202) 366-0846. Her fax number is (202) 
493-2990.

SUPPLEMENTARY INFORMATION: In a petition dated March 8, 2010, 
Volkswagen requested an exemption from the parts-marking requirements 
of the Theft Prevention Standard (49 CFR part 541) for the new MY 2012 
vehicle line. 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 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 its 
new vehicle line. Volkswagen will install its fourth generation, 
transponder-based electronic engine immobilizer antitheft device as 
standard equipment on its new vehicle line beginning with MY 2012. 
Volkswagen stated that the aim of its immobilizer device is to actively 
incorporate the engine control unit into the evaluation and monitoring 
process. Key components of the antitheft device will include a passive 
immobilizer, a warning message indicator, an adapted ignition key, an 
ignition lock reading coil, an engine control unit and an immobilizer 
control unit. The antitheft device will also include an audible and 
visible alarm feature as optional equipment. 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 it will also offer an optional advanced key 
(``keyless'') device with its new vehicle line. Volkswagen stated that 
with the ``keyless'' device, a transmitter in the key fob communicates 
with the vehicle ignition control system to perform immobilizer and 
engine start and stop functions without the need to insert a physical 
key into the mechanical ignition switch device. Volkswagen further 
stated that the immobilizer function is the same with both the standard 
key and the keyless device.
    Volkswagen stated that activation of the standard key device occurs 
automatically when the transponder key is removed from the ignition 
switch or when the key fob is taken outside the vehicle in the optional 
advanced key device. Deactivation of the standard key device occurs 
when the key is inserted, the ignition is turned on and the transponder 
key is recognized by the immobilizer control unit, enabling start up of 
the vehicle. After recognition by the electronic module of the key 
transponder, the key is paired up with the immobilizer control module 
and cannot be used for any other immobilizer. Deactivation of the 
optional advanced key device occurs when the key fob transponder is 
inside the vehicle and is recognized by the immobilizer control unit.
    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 will be tested for 
compliance to its corporate requirements for electrical and electronic 
assemblies in motor vehicles related to performance.
    Volkswagen stated that it believes the immobilizer device in the 
new vehicle line will be effective in deterring theft as it has been in 
other Volkswagen vehicle lines for which theft data has been published. 
Volkswagen provided comparative data in support of its belief that its 
device will be as effective in deterring and reducing vehicle theft as 
those vehicle lines for which the theft data was published. Volkswagen 
stated that its proposed device is similar to the antitheft device 
installed on the MY 2011 Tiguan vehicle line which was granted an 
exemption by the agency on December 1, 2009. Volkswagen further stated 
that its device is also installed on its current Eos, Passat, Golf, 
Jetta and Touareg vehicle lines. Volkswagen provided data showing that 
from MY's 2005-2007, theft rates published by the agency for the Jetta, 
Passat, Eos, and Golf/GTI vehicles installed with the immobilizer 
device are all below the median theft rate. Specifically, the Jetta, 
Passat and Golf/GTI vehicle lines have an average theft rate using 
three MYs' data of 1.3058, 1.0853 and 1.4656 respectively. The Eos 
vehicle line using one MY's data has a theft rate of 0.8205.
    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 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 
Chrysler reported that the average theft rate for the Jeep Grand 
Cherokee between MYs' 1995 and 1998 (prior to addition of an 
immobilizer) was significantly reduced from 5.3574 to 2.5492 from MYs' 
1995 to 2005 after addition of an immobilizer. Comparatively, 
Volkswagen stated that Mercedes-Benz reported that the theft rate for 
the SLK class vehicles dropped from 1.6489 in CY 2005 to 0.1484 in CY 
2006 after installation of an immobilizer.
    Based on the supporting evidence submitted by Volkswagen on the 
device, the agency believes that the antitheft device for the new 
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). 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.
    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

[[Page 29814]]

requirements of part 541. The agency finds that Volkswagen has provided 
adequate reasons for its belief that the antitheft device for the 
Volkswagen new 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 
device.
    For the foregoing reasons, the agency hereby grants in full 
Volkswagen's petition for exemption for the Volkswagen new vehicle line 
from the parts-marking requirements of 49 CFR part 541, beginning with 
the 2012 model year vehicles. 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.
    If Volkswagen 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 according to the requirements under 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. Sec.  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 24, 2010.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
[FR Doc. 2010-12809 Filed 5-26-10; 8:45 am]
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