Petition for Exemption From the Federal Motor Vehicle Theft Prevention Standard; BMW of North America, LLC

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Published

July 21, 2021

Issuing agencies

Transportation DepartmentNational Highway Traffic Safety Administration

Abstract

This document grants in full the BMW of North America, LLC's (BMW) petition for exemption from the Federal Motor Vehicle Theft Prevention Standard (theft prevention standard) for its Toyota Supra vehicle line beginning in model year (MY) 2022. 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. BMW also requested confidential treatment for specific information in its petition. Therefore, no confidential information provided for purposes of this notice has been disclosed.

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<title>Federal Register, Volume 86 Issue 137 (Wednesday, July 21, 2021)</title>
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[Federal Register Volume 86, Number 137 (Wednesday, July 21, 2021)]
[Notices]
[Pages 38526-38528]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-15522]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

Petition for Exemption From the Federal Motor Vehicle Theft
Prevention Standard; BMW of North America, LLC

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's
(BMW) petition for exemption from the Federal Motor Vehicle Theft
Prevention Standard (theft prevention standard) for its Toyota Supra
vehicle line beginning in model year (MY) 2022. 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. BMW 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 2022 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 part 541 (theft prevention
standard) to require parts-marking 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 as standard equipment with an antitheft device
that the Secretary decides is likely to be as effective in reducing and
deterring motor vehicle theft as compliance with the parts-marking
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
section 543.6 or section 543.7. Under section 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.
Section 543.8 establishes requirements for processing petitions for
exemption from the theft prevention standard. As stated in section
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 section 543.8(b), will grant
the petition 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.
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.\1\
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.
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\1\ 49 U.S.C. 33106(d).
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Sections 543.8(f) and (g) apply to the manner in which NHTSA's
decisions on petitions are to be made known. Under section 543.8(f), if
the petition is sought under section 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 section
543.8(g), if the petition is sought under section 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 BMW of North
America, LLC's (BMW) petition for its Toyota Supra vehicle line
beginning in MY 2022. BMW's petition is granted under 49 U.S.C. 33106
and 49 CFR 543.8(c), which state that if the Secretary of
Transportation (NHTSA, by delegation) does not make a decision about a
petition within 120 days of the petition submission, 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. Separately, based on the information provided in BMW's petition,
NHTSA has determined that the antitheft device to be placed on its
vehicle 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.

I. Specific Petition Content Requirements Under 49 CFR 543.6

Pursuant to 49 CFR part 543, Exemption from Vehicle Theft
Prevention, BMW petitioned for an exemption for its specified vehicle
line from the parts-marking requirements of the theft prevention
standard, beginning in MY 2022. BMW 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.

[[Page 38527]]

More specifically, section 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 section 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
section 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.\2\
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\2\ 49 CFR 543.6(a)(3).
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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,\3\ 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.\4\
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\3\ 49 CFR 543.6(a)(4).
\4\ 49 CFR 543.6(a)(5).
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The following sections describe BMW's petition information provided
pursuant to 49 CFR part 543, Exemption from Vehicle Theft Prevention.
To the extent that specific information in BMW's petition is subject to
a properly filed confidentiality request, that information was not
disclosed as part of this notice.\5\
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\5\ 49 CFR 512.20(a).
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In a petition dated November 9, 2020, BMW requested an exemption
from the parts-marking requirements of the theft prevention standard
for the Toyota Supra vehicle line beginning with MY 2022.
In its petition, BMW provided a detailed description and diagram of
the identity, design, and location of the components of the antitheft
device for its Toyota Supra vehicle line. Under 543.6(a)(3), BMW stated
that its Toyota Supra vehicle line will be installed with a passive,
electronically-coded, vehicle immobilizer system (EWS) as standard
equipment that will prevent the vehicle from being driven away under
its own engine power. Key features of the antitheft device will include
a remote-control w/high frequency (HF) receiver, mechanical keys, low
frequency antenna (LF), radio frequency remote control w/transponder,
engine control unit (DME) with encoded start release input,
transmission control unit (EGS) and an EWS (BDC) control unit. BMW
stated that it will not offer an audible or visible alarm feature on
the proposed device.
Pursuant to section 543.6(a)(3), BMW explained the means and
process by which the immobilizer device is activated and functions. BMW
stated that activation of its antitheft device occurs automatically
when the engine is shut off and the vehicle key is removed from the
ignition system. BMW stated that a transponder (transmitter/receiver)
in the radio frequency remote control communicates with the EWS (BDC)
control unit providing the interface to the HF receiver, LF antenna and
ring antenna, engine control unit and starter. After an initial
starting value, the authentication uses the challenge response
technique with symmetric secret key. BMW further stated that when the
control unit identifies the correct release signal, the ignition signal
and fuel supply are released allowing operation of the vehicle. BMW
stated that deactivation may not be carried out with the mechanical
key, but rather must occur by electronic means.
BMW also stated that the vehicle is 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. BMW further stated that the vehicle can be
further secured by locking the doors and hood using either the key-lock
cylinder on the driver's door or the remote frequency remote control.
BMW stated that 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.
As required in section 543.6(a)(3)(v), BMW provided information on
the reliability and durability of its proposed device. To ensure
reliability and durability of its device, BMW stated that it conducted
tests on the antitheft device which complied with its own specific
standards. BMW further stated that its antitheft device fulfills the
requirements of the January 1995 European vehicle insurance companies.
In further addressing the reliability and durability of its device, BMW
provided information on the uniqueness of its mechanical keys to be
used on the Toyota Supra vehicle line. Specifically, BMW stated that
the vehicle's mechanical keys are unique because they require a special
key blank, cutting machine and a unique vehicle code to allow for key
duplication. BMW further stated that the new keys will only be issued
to authorized persons and will incorporate special guide-way millings,
making the locks almost impossible to pick and the keys impossible to
duplicate on the open market.
BMW further stated that all of its vehicles are currently equipped
with antitheft devices as standard equipment, including its Toyota
Supra vehicle line. BMW compared the effectiveness of its antitheft
device with devices which NHTSA has previously determined to be as
effective in reducing and deterring motor vehicle theft as would
compliance with the parts-marking requirements of Part 541. BMW stated
that its antitheft system on the Toyota Supra vehicle line is the same
system employed on its existing 2 series vehicle line. BMW also stated
that the agency's most recent theft rate data for MY/CY 2014 indicate a
minor decrease and downward trend for those vehicles installed with its
antitheft device which have been granted parts-marking exemptions by
the agency.

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 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, or if
deemed approved under 49 U.S.C. 33106(d). As discussed above, in this
case, BMW's petition is granted under 49 U.S.C. 33106(d).
However, separately, NHTSA also finds that BMW has provided
adequate reasons for its belief that the antitheft device for its
vehicle line is likely to be

[[Page 38528]]

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 BMW provided
about its antitheft device. NHTSA believes, based on BMW's supporting
evidence, 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 BMW's antitheft device will provide the
four of the five types of performance features listed in section
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 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 BMW 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 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 543.8(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, section 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
section 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 BMW
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 BMW's
petition for exemption for the Toyota Supra vehicle line from the
parts-marking requirements of 49 CFR part 541, beginning with its MY
2022 vehicles.

Issued under authority delegated in 49 CFR 1.95 and 501.8.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2021-15522 Filed 7-20-21; 8:45 am]
BILLING CODE 4910-59-P

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