
[Federal Register Volume 78, Number 68 (Tuesday, April 9, 2013)]
[Notices]
[Pages 21189-21191]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08225]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the 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 
(BMW) petition for exemption of the X4 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 the Theft 
Prevention Standard (49 CFR part 541). BMW requested confidential 
treatment for specific information in its petition that the agency will 
address by separate letter.

DATES: The exemption granted by this notice is effective beginning with 
the 2015 model year (MY).

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

SUPPLEMENTARY INFORMATION: In a petition dated January 25, 2013, BMW 
requested an exemption from the parts-marking requirements of the Theft 
Prevention Standard (49 CFR part 541) for the X4 vehicle line beginning 
with MY 2015. The petition requested 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, BMW 
provided a detailed description and diagram of the identity, design, 
and location of the components of the antitheft device for its X4 
vehicle line. BMW stated that all X4 vehicles will be equipped with a 
passive antitheft device as standard equipment beginning with MY 2015. 
Key features of the antitheft device will include a key with a 
transponder, loop antenna (coil), engine control unit (DME/DDE) with 
encoded start release input, an electronically coded vehicle 
immobilizer/car access system (EWS/CAS) control unit and a passive 
immobilizer. BMW will not offer an audible or visible alarm feature on 
the proposed device. BMW'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.
    BMW stated that the antitheft device is a passive vehicle 
immobilizer system. BMW further stated that the EWS immobilizer device 
prevents the vehicle

[[Page 21190]]

from being driven away under its own engine power. BMW further stated 
that the EWS immobilizer device also fulfills the requirements of the 
European vehicle insurance companies, in that the security device must 
become effective either upon leaving the vehicle or not later than the 
point at which the vehicle is locked.
    The immobilizer device is automatically activated when the engine 
is shut off and the vehicle key is removed from the ignition lock 
cylinder. Deactivation of the device occurs when the Start/Stop button 
is pressed and the vehicle starting process begins. BMW stated that 
deactivation cannot be carried out with a mechanical key, but must 
occur electronically. Specifically, BMW stated that its transponder 
sends key data to the EWS/CAS control unit. The correct key data must 
be recognized by the EWS/CAS control unit in order for the vehicle to 
start. The transponder contains a chip which is integrated in the key 
and powered by a battery. The transponder also consists of a 
transmitter/receiver which communicates with the EWS/CAS control unit. 
The EWS/CAS control unit provides the interface to the loop antenna 
(coil), engine control unit and starter. The ignition and fuel supply 
are only released when a correct coded release signal has been sent by 
the EWS/CAS control unit to deactivate the device and allow the vehicle 
to start. When the EWS/CAS control unit has sent a correct release 
signal, and after the initial starting value, the release signal 
becomes a rolling, ever-changing, random code that is stored in the 
DME/DDE and EWS/CAS control units. The DME/DDE must identify the 
release signal and only then will the ignition signal and fuel supply 
be released.
    BMW stated that the vehicle is also 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. 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.
    BMW stated that all of its vehicles are currently equipped with 
antitheft devices as standard equipment, including the BMW X4 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 the antitheft 
device that it intends to install on its X4 vehicle line for MY 2015 
has been sufficient to grant exemptions for other carlines. 
Specifically, BMW has installed its antitheft device on its X1, X3 and 
X5 vehicle lines, as well as its Carline 1, 3, 4, 5, 6, 7, Z4, and MINI 
vehicle lines and they have all been granted parts-marking exemptions 
by the agency. BMW asserts that theft data have indicated a decline in 
theft rates for vehicle lines that have been equipped with antitheft 
devices similar to that which it proposes to install on the X4 vehicle 
line. BMW also stated that for MY/CY 2010, the agency's data show that 
theft rates for its lines are: 0.5000 (1-series), 0.8400 (3-series), 
0.3300 (5-series), 1.5000 (6-series), 2.6300 (7-series), 0.1500 (X3), 
0.8500 (Z4/M), and 0.4400 (MINI). BMW stated that the theft rate for 
its M models have been combined with their actual vehicle lines, (i.e., 
M3 with 3-series, M5 with 5-series and M6 with 6-Series). Using an 
average of 3 MYs data (2008-2010), theft rates for the Carline 1, 3, 5, 
6, 7, X3 and Z4/M and MINI vehicle lines are 0.3287, 0.7172, 0.4661, 
1.3648, 2.0273, 0.3316, 0.6046 and 0.2629 respectively. Theft rate data 
for the BMW X1, X4, X5 and Carline 4 are not available.
    In addressing the specific content requirements of Part 543.6, BMW 
provided information on the reliability and durability of its device. 
To ensure reliability and durability of the device, BMW 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. BMW provided a detailed list of the tests 
conducted in its January 2013 request for exemption from the parts-
marking requirements. Further assuring the reliability and durability 
of the X4 antitheft device, BMW notes that the mechanical keys for the 
X4 vehicle line are unique. Specifically, a special key blank, a 
special key cutting machine and the vehicle's unique code are needed to 
duplicate a key. BMW also stated that new keys will only be issued to 
authorized persons, and the guide-ways that are milled in the 
mechanical keys make the locks almost impossible to pick and the keys 
impossible to duplicate on the open market.
    BMW's proposed device lacks an audible or visible alarm. Therefore, 
this device cannot perform one of the functions listed in 49 CFR Part 
543.6(a)(3), that is, to call attention to unauthorized attempts to 
enter or move the vehicle. However, in its January 2013 petition, BMW 
asserted that in a previous Federal Register notice published by the 
agency (58 FR 44872, dated August 25, 1993), NHTSA's review of the 
theft data for 10 General Motors (GM) vehicle lines that had been 
granted partial exemptions concluded that the lack of an audible and 
visible alarm had not prevented the antitheft device from being 
effective and that despite the absence of an audible or visible alarm, 
when placed on vehicle lines as standard equipment, the GM antitheft 
devices ``continue to be as effective in deterring and reducing motor 
vehicle theft as compliance with parts-marking requirements.'' 
Therefore, BMW expects that the X4's antitheft device will be just as 
effective as parts-marking.
    Based on the supporting evidence submitted by BMW, the agency 
believes that the antitheft device for the BMW X4 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 
supporting 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 BMW has provided adequate reasons for its belief that the 
antitheft device for the X4 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 BMW provided 
about its device.
    For the foregoing reasons, the agency hereby grants in full BMW's 
petition for exemption for the MY 2015 X4 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 MY. 49 CFR

[[Page 21191]]

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 BMW 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 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.
    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 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 Part 
543.9(c)(2) could place on exempted vehicle manufacturers and itself. 
The agency did not intend 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: April 2, 2013.
Christopher J. Bonanti,
Associate Administrator for Rulemaking.
[FR Doc. 2013-08225 Filed 4-8-13; 8:45 am]
BILLING CODE 4910-59-P


