[Federal Register Volume 88, Number 47 (Friday, March 10, 2023)]
[Notices]
[Pages 15118-15120]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04868]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard; Toyota Motor North America, Inc.

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 Toyota Motor North America, 
Inc.'s (Toyota) petition for exemption from the Federal Motor Vehicle 
Theft Prevention Standard (theft prevention standard) for its Crown 
vehicle line beginning in model year (MY) 2024. 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.

DATES: The exemption granted by this notice is effective beginning with 
the 2024 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 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 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 
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.\1\
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    \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.
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    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.\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.
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    \2\ 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 Toyota Motor North 
America, Inc.'s (Toyota) petition for its Crown vehicle line beginning 
in MY 2024.

I. Specific Petition Content Requirements Under 49 CFR 543.6

    Pursuant to 49 CFR part 543, Exemption from Vehicle Theft 
Prevention, Toyota petitioned for an exemption for its specified 
vehicle line from the parts-marking requirements of the theft 
prevention standard, beginning in MY 2024. Toyota 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

[[Page 15119]]

reasons the petitioner believes the device to be as effective at 
reducing and deterring theft as compliance with the parts-marking 
requirements.
    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.\3\
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    \3\ 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,\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\
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    \4\ 49 CFR 543.6(a)(4).
    \5\ 49 CFR 543.6(a)(5).
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    The following sections describe Toyota's petition information 
provided pursuant to 49 CFR part 543, Exemption from Vehicle Theft 
Prevention. To the extent that specific information in Toyota's 
petition is subject to a properly filed confidentiality request, that 
information was not disclosed as part of this notice.\6\
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    \6\ 49 CFR 512.20(a).
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II. Toyota's Petition for Exemption

    In a petition dated October 24, 2022, Toyota requested an exemption 
from the parts-marking requirements of the theft prevention standard 
for the Crown vehicle line beginning with MY 2024.
    In its petition, Toyota provided a detailed description and diagram 
of the identity, design, and location of the components of the 
antitheft device for the Crown vehicle line. Toyota stated that its MY 
2024 Crown vehicle line will be installed with an engine immobilizer 
device as standard equipment, as required by 543.6(a)(1). Toyota stated 
that it will offer an entry and start system on its Crown vehicle line. 
Specifically, key components of the ``smart entry and start'' system 
will include a certification engine control unit (ECU), engine switch, 
security indicator, door control receiver, electrical key, ID code box, 
and an HV ECU. Toyota stated that there will also be position switches 
installed on the vehicle to protect the hood and doors from 
unauthorized tampering/opening. Toyota further explained that locking 
the doors can be accomplished through use of a key, wireless switch or 
its smart entry system, and that unauthorized tampering with the hood 
or door without using one of these methods will cause the position 
switches to trigger its antitheft device to operate. Toyota will also 
incorporate an audible and visual alarm system on its vehicle line, 
when unauthorized access is attempted, the horn will sound and the 
lights will flash.
    Pursuant to Section 543.6(a)(3), Toyota explained that its ``smart 
entry and start'' system is activated when the engine switch is pushed 
from the ``ON'' ignition status to any other status. The certification 
ECU then performs the calculation for the immobilizer and the 
immobilizer signals the HV ECU to activate the device. Toyota also 
explained that its ``smart entry and start'' system is deactivated 
after the driver pushes the engine switch and the key is verified, the 
certification ECU and ID code box receives verification of a valid key, 
the certification ECU allows the HV ECU to start the engine. Toyota 
stated that in its system, a security indicator is installed notifying 
the user and others inside and outside the vehicle with the status of 
the immobilizer. Toyota further explained that the security indicator 
flashes continuously when the immobilizer is activated, and turns off 
when it is deactivated.
    As required in section 543.6(a)(3)(v), Toyota provided information 
on the reliability and durability of its proposed device. To ensure 
reliability and durability of the device, Toyota conducted tests based 
on its own specified standards. Toyota provided a detailed list of the 
tests conducted (i.e., high and low temperature operation, strength, 
impact, vibration, electro-magnetic interference, etc.). Toyota stated 
that it believes that its device is reliable and durable because it 
complied with its own specific design standards and the antitheft 
device is installed on other vehicle lines for which the agency has 
granted a parts-marking exemption. As an additional measure of 
reliability and durability, Toyota stated that its vehicle key 
cylinders are covered with casting cases to prevent the key cylinder 
from easily being broken. Toyota further explained that there are 
approximately 1,000 combinations for inner cut keys which makes it 
difficult to unlock the doors without using a valid key because the key 
cylinders would spin out and cause the locks to not operate.
    Toyota stated that its Crown vehicle has already been equipped with 
an immobilizer since MY 2023 as standard equipment. Toyota also stated 
that at the time of the petition submission, theft rate data for the MY 
2024 Crown vehicle line is not available. However, Toyota compared its 
proposed device to other devices NHTSA has determined to be as 
effective in reducing and deterring motor vehicle theft as would 
compliance with the parts-marking requirements. Toyota compared its 
proposed device to that which has been installed on the Toyota Corolla 
vehicle line, which was granted a parts-marking exemption from 49 CFR 
part 541 by the agency beginning with MY 2012 vehicles. Toyota also 
referenced the NHTSA theft rate data published for the Corolla before 
and after being equipped with a standard immobilizer showing the 
average theft rate drop to 2.1 per 1,000 vehicles (2005-2008) compared 
to 4.0 per 1,000 vehicles (1996-1999). Toyota stated that the data for 
the Corolla represents an approximate 47.5% decrease in a theft rate 
with an immobilizer. Therefore, Toyota concluded that the antitheft 
device proposed for its Crown vehicle line is no less effective than 
those devices on the lines for which NHTSA has already granted full 
exemption from the parts-marking requirements. Toyota stated that it 
believes that installing the immobilizer device as standard equipment 
reduces the theft rate for the Crown vehicle line and expects it to

[[Page 15120]]

experience comparable effectiveness and ultimately be more effective 
than parts-marking labels.

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. The agency 
finds that Toyota 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 Toyota provided about its 
antitheft device. NHTSA believes, based on Toyota's supporting 
evidence, 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 Toyota's antitheft device will provide 
the five types of performance features listed in section 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 Toyota 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 Toyota 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.'' \7\
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    \7\ 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 a manufacturer with an exemption 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.
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    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 
Toyota 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 
Toyota's petition for exemption for the Crown vehicle line from the 
parts-marking requirements of 49 CFR part 541, beginning with its MY 
2024 vehicles.

    Issued under authority delegated in 49 CFR 1.95 and 501.8.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2023-04868 Filed 3-9-23; 8:45 am]
BILLING CODE 4910-59-P


