IN OPENING STATEMENTS BY MEMBERS OF THE SENATE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS, AUTO THEFT IS INDICATED TO BE A CRIME COSTING ABOUT $4 BILLION A YEAR. IT INCREASED 13 PERCENT DURING THE FIRST 6 MONTHS OF 1979 COMPARED TO THE SAME PERIOD THE PREVIOUS YEAR. CARS ARE SELDOM RECOVERED BECAUSE WITHIN HOURS OF A THEFT, THE CAR IS 'CHOPPED' INTO PARTS WHICH ARE SENT TO REPAIR SHOPS THROUGHOUT THE COUNTRY. THUS, AUTO THEFT HAS BECOME BIG BUSINESS, WITH INDICATIONS THAT ORGANIZED CRIME IS INVOLVED. TESTIMONY WAS HEARD FROM PERSONS WHO HAVE STOLEN VEHICLES, TWO SUBCOMMITTEE STAFF INVESTIGATORS, LAW ENFORCEMENT PERSONNEL, AND THE DIRECTOR OF THE FBI. PARTICIPANTS ADVOCATED THE PASSAGE OF THE PROPOSED MOTOR VEHICLE THEFT PREVENTION ACT OF 1979, WHICH WOULD GIVE THE SECRETARY OF TRANSPORTATION REGULATORY AUTHORITY TO ISSUE STANDARDS REQUIRING NEW ANTITHEFT DEVICES AND THE PLACEMENT OF VEHICLE IDENTIFICATION NUMBERS ON THE MAJOR COMPONENTS OF NEW CARS. ALSO PROPOSED IS AN AMENDMENT TO THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTE, WHICH WOULD CLASSIFY TRAFFICKING IN STOLEN MOTOR VEHICLES AND THEIR PARTS AS RACKETEERING ACTIVITIES. THIS WOULD PRODUCE HEAVY FINES AND SENTENCING. MATERIAL RELATING TO THE TESTIMONY IS INCLUDED, ALONG WITH RELEVANT NATIONAL STATISTICAL DATA ON AUTO THEFT. (RCB)