All Toyota Dealer Principals, General Managers, Service Managers, and Parts Managers

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TOYOTA Published November 3, 2016 Toyota Motor Sales, USA, Inc. 19001 South Western Avenue Torrance, CA 90501 (310) 468-4000 To: Subject: All Toyota Dealer Principals, General Managers, Service Managers, and Parts Managers Safety Recall G0W Remedy Notice Certain 2016 Model Year Prius Vehicles Front Passenger Air Bag On September 14, 2016, Toyota filed a Defect Information Report (DIR) with the National Highway Traffic Safety Administration (NHTSA) informing the agency of our intent to conduct a voluntary Safety Recall on certain 2016 model year Prius vehicles. Condition The involved vehicles are equipped with a front passenger air bag which contains stored, compressed gas in the inflator. A component in the air bag assembly may have been improperly welded and/or misassembled. If this occurs, the stored gas may escape without a deployment signal and result in the partial inflation of the air bag. This has been observed when the vehicle is parked and unoccupied for a period of time. An air bag that inflates in this manner can, under some circumstances, increase the risk of injury and the possibility of a crash. Remedy Any authorized Toyota dealer will replace the front passenger air bag at NO CHARGE. Covered Vehicles There are approximately 7,800 2016 Prius vehicles covered by this Safety Recall. Approximately 10 vehicles involved in this Safety Recall were distributed to Puerto Rico. Model Name Model Year Production Period Prius 2016 Late November 2015 Mid June 2016 Owner Letter Mailing Date Toyota will notify owners in November 2016. A sample of the owner notification is attached for your reference. Toyota makes significant effort to obtain current customer name and address information from each state through industry resources when mailing owner letters. In the event your dealership receives a notice for a vehicle that was sold prior to the Safety Recall announcement, it is the dealership s responsibility to forward the owner letter to the customer who purchased the vehicle. Please note that only owners of the covered vehicles will be notified. If you are contacted by an owner who has not yet received a notification, please verify eligibility by confirming through TIS prior to performing repairs. Dealers should perform the repair as outlined in the Technical Instructions found on TIS.

New Vehicles in Dealership Inventory There are approximately 760 vehicles in dealer stock as of September 13, 2016. S a f e t y R e c a l l G 0 W - D - P a g e 2 Under Title 49, Section 30112 of the United States Code, a dealer cannot sell, offer for sale, or introduce or deliver for introduction in interstate commerce a new motor vehicle when it is aware that the vehicle does not comply with an applicable Federal Motor Vehicle Safety Standard or contains a defect related to motor vehicle safety. In addition, 49 Code of Federal Regulations 577.13 requires us to provide the following advisory: It is a violation of Federal law for a dealer to deliver a new motor vehicle or any new or used item of motor vehicle equipment (including a tire) covered by this notification under a sale or lease until the defect or noncompliance is remedied. Vehicle Safety Recall completion should always be verified through TIS. We request your assistance to ensure involved vehicles are identified and not delivered prior to performing the remedy. Inspection Reminder Mirror Hang Tags for Covered Vehicles in New Dealer Stock To easily recognize vehicles involved in this Safety Recall, each dealership should utilize Inspection Reminder Hang Tags. Inside the vehicle s glove box are stickers containing the VIN. Apply one of these stickers to the hang tag and install the hang tag in the vehicle. A sample copy of the Inspection Reminder Hang Tag has been included for your reference. NOTE: Dealerships can order hang tags from the Material Distribution Center (MDC). Part Number Description Quantity 00411-140003 Inspection Mirror Hang Tag 25 Per Pack Pre-Owned Vehicles in Dealer Inventory Toyota requests that dealers NOT deliver any pre-owned vehicles in dealer inventory that are covered by a Safety Recall unless the defect has been remedied. Also, as a reminder, Toyota Certified Used Vehicle (TCUV) policy prohibits the certification of any vehicle with an outstanding Special Service Campaign or Safety Recall. Thus, no affected units should be designated, sold, or delivered as a TCUV until the Safety Recall has been completed on that vehicle. Toyota Rent-A-Car (TRAC) & Service Loaners Toyota requests that dealers remove all TRAC and Service Loaner vehicles from service that are covered by a Safety Recall unless the defect has been remedied.

S a f e t y R e c a l l G 0 W - D - P a g e 3 Technician Training Requirements The repair quality of covered vehicles is extremely important to Toyota. All dealership technicians performing this repair are required to successfully complete the most current version of the E-Learning course Safety Recall and Service Campaign Essentials. To ensure that all vehicles have the repair performed correctly; technicians performing this repair are required to currently hold at least one of the following certification levels: Toyota Expert (Electrical) Master Master Diagnostic Technician Always check which technicians can perform the recall remedy by logging on to https://www.uotdealerreports.com. It is the dealership s responsibility to select technicians with the above certification level or greater to perform this repair. Carefully review your resources, the technician skill level, and ability before assigning technicians to this repair. It is important to consider technician days off and vacation schedules to ensure there are properly trained technicians available to perform this repair at all times. Remedy Procedures Please refer to TIS for Technical Instructions on the repair. Conduct all non-completed Safety Recalls and Service Campaigns on the vehicle during the time of appointment. Repair Quality Confirmation The repair quality of covered vehicles is extremely important to Toyota. To help ensure that all vehicles have the repair performed correctly, please designate at least one associate (someone other than the individual who performed the repair) to verify the repair quality of every vehicle prior to customer delivery. Parts Ordering Process Non SET and GST Parts Ordering Process Due to potentially limited availability, the parts may have been placed on either Manual Allocation Control (MAC) or Dealer Ordering Solutions (DOS). As the parts inventory changes, the ordering process may change. Please check the Toyota Special Activities MAC/DOS report on Dealer Daily for the most up-to-date parts ordering information. All Safety Recall and Service Campaign (SSC/LSC) parts are eligible for the Monthly Parts Return Program. Please refer to PANT Bulletin 2011-087 for campaign parts that are currently returnable under the Monthly Parts Return Program and for additional details. Part Number Description Quantity 04006-51247 Kit, Front passenger airbag assembly 1 Parts Pre-Deployment Toyota has pre-deployed an initial quantity of remedy parts to certain dealers. Pre-deployed parts will be included with regular dealer parts deliveries and will arrive at these dealers beginning on November 4, 2016. Dealers should use the Parts Ordering Process, described above, to order additional remedy parts as necessary. Parts Return Shipping Process All of the replaced air bag assemblies will be recovered and sent back to the airbag manufacturer. Refer to the Job Aid, available on TIS, for instructions on the complete return shipping process.

S a f e t y R e c a l l G 0 W - D - P a g e 4 Warranty Reimbursement Procedure Verify Vehicle Eligibility 1. Check the TIS Vehicle Inquiry System. Not Involved No further action required. Invoved Prepare vehicle Remove the front passenger air bag Scan the old and new air bag Install the new front passenger air bag Campaign complete. Opcode Description Flat Rate Hours CGG60A Replace front passenger airbag 2.7 The flat rate times include 0.1 hours for administrative cost per unit for the dealership. A loaner vehicle or alternative transportation through the Toyota Rent-A-Car (TRAC) can be claimed as a sublet type RT under Op. Code CGG60A Rentals greater than 4 days or $35.00 per day requires DSPM authorization as per the Toyota Transportation Assistance Policy (TTAP).

S a f e t y R e c a l l G 0 W - D - P a g e 5 Media Contacts It is imperative that all media contacts (local and national) receive a consistent message. In this regard, all media contacts must be directed to Victor Vanov (469) 292-1318 in Toyota Corporate Communications. Please do not provide this number to customers. Please provide this contact only to media associates. Customer Contacts Customers who receive the owner letter may contact your dealership with questions regarding the letter and/or the Safety Recall. Please welcome them to your dealership and answer any questions that they may have. A Q&A is provided to assure a consistent message is communicated. Customers with additional questions or concerns are asked to please contact the Toyota Customer Experience Center (1-888-270-9371) - Monday through Friday, 7:00 am to 7:00 pm, Saturday 7:00 am to 4:30 pm Central Time. Campaign Designation Decoder E 0 A Year Campaign is Launched Repair Phase Current Campaign Letter for this year A = 2010 B = 2011 C = 2012 D = 2013 E = 2014 F = 2015 G = 2016 Etc... 0 = Remedy 1 = Interim (Remedy not yet available) 1 will change to 0 when the Remedy is available (May use other characters in unique cases) 1 st Campaign = A 2 nd Campaign = B 3 rd Campaign = C 4 th Campaign = D 5 th Campaign = E 27 th Campaign = 1 28 th Campaign = 2 Etc... Examples: A0D = Launched in 2010, Remedy Phase, 4 th Campaign Launched in 2010 C1B = Launched in 2012, Interim Phase, 2 nd Campaign Launched in 2012 E0A = Launched in 2014, Remedy Phase, 1 st Campaign Launched in 2013 Please review this entire package with your Service and Parts staff to familiarize them with the proper stepby-step procedures required to implement this Safety Recall. Thank you for your cooperation. TOYOTA MOTOR SALES, U.S.A., INC.

Safety Recall G0W Remedy Notice Certain 2016 Model Year Prius Vehicles Front Passenger Air Bag Frequently Asked Questions Published November 3, 2016 Q1: What is the condition? A1: The involved vehicles are equipped with a front passenger air bag which contains stored, compressed gas in the inflator. A component in the air bag assembly may have been improperly welded and/or misassembled. If this occurs, the stored gas may escape without a deployment signal and result in the partial inflation of the air bag. This has been observed when the vehicle is parked and unoccupied for a period of time. An air bag that inflates in this manner can, under some circumstances, increase the risk of injury and the possibility of a crash. Q1a: A1a: Q1b: A1b: Q1c: A1c: What is the Inflator? The inflator is a device contained within the air bag assembly. In this passenger air bag assembly, the inflator contains a quantity of compressed gas and propellant that work in unison to inflate the air bag when a signal is received. If the condition occurs, will the air bag FULLY deploy? No. If this condition occurs, the air bag will PARTIALLY inflate; there is no full deployment without a deployment signal. Are the subject inflators manufactured by Takata? No. The subject inflators involved in this Safety Recall are manufactured by a different supplier and are of different type and structure than the Takata inflators that are involved in other Safety Recalls. Q2: What is Toyota going to do? A2: In November 2016, Toyota will send an owner notification by first class mail advising owners to make an appointment with their authorized Toyota dealer to have the front passenger air bag replaced at NO CHARGE. Q3: Are there any warnings that this condition exists? A3: No. There are no warnings that this condition exists; however, this condition has only been observed when a vehicle is parked and unoccupied for a period of time. Q4: Which and how many vehicles are covered by this Safety Recall? A4: There are approximately 7,800 vehicles covered by this Safety Recall. Q4a: A4a: Model Name Model Year Production Period Prius 2016 Late November 2015 Mid June 2016 Are there any other Lexus/Toyota/Scion vehicles covered by this Safety Recall in the U.S.? No, there are no other Lexus/Toyota/Scion vehicles covered by this Safety Recall. Q5: How does Toyota obtain my mailing information? A5: Toyota uses an industry provider who works with each state s Department of Motor Vehicles (DMV) to receive registration or title information, based upon the DMV records. Please make sure your registration or title information is correct. Q6: What if I have additional questions or concerns? A6: If you have additional questions or concerns, please contact the Toyota Customer Experience Center at 1-888-270-9371 Monday through Friday, 7:00 am to 7:00 pm, Saturday 7:00 am to 4:30 pm Central Time. Page 1 of 1

Dear Toyota Customer: Certain 2016 Model Year Prius Vehicles Front Passenger Air Bag IMPORTANT SAFETY RECALL (Remedy Notice) This notice applies to your vehicle: [VIN] NHTSA Recall No. 16V-672 This notice is sent to you in accordance with the requirements of the National Traffic and Motor Vehicle Safety Act. Toyota has decided that a defect, which relates to motor vehicle safety, exists in certain 2016 Model Year Prius Vehicles. You received this notice because our records, which are based primarily on state registration and title data, indicate that you are the current owner. What is the condition? The involved vehicles are equipped with a front passenger air bag which contains stored, compressed gas in the inflator. A component in the airbag assembly may have been improperly welded and/or misassembled. If this occurs, the stored gas may escape without a deployment signal and result in the partial inflation of the air bag. This has been observed when the vehicle is parked and unoccupied for a period of time. An airbag that inflates in this manner can increase the risk of injury and the possibility of a crash. What will Toyota do? Any authorized Toyota dealer will replace the front passenger air bag at NO CHARGE to you. What should you do? This is an important Safety Recall Please contact any authorized Toyota dealer to schedule an appointment to have the remedy performed as soon as possible. The remedy will take approximately 3 hours. However, depending on the dealer s work schedule, it may be necessary to make your vehicle available for a longer period of time. What if you have other questions? URGENT SAFETY RECALL This is an important Safety Recall. The remedy will be performed at NO CHARGE to you. Your local Toyota dealer will be more than happy to answer any of your questions. If you require further assistance, you may contact the Toyota Customer Experience Center at 1-888-270-9371 Monday through Friday, 7:00 am to 7:00 pm, Saturday 7:00 am to 4:30 pm Central Time. SAMPLE If you believe that the dealer or Toyota has failed or is unable to remedy the defect within a reasonable time, you may submit a complaint to the Administrator, National Highway Traffic Safety Administration, 1200 New Jersey Avenue S.E., Washington, D.C. 20590, or call the toll free Vehicle Safety Hot Line at 1-888-327-4236 (TTY: 1-800-424-9153), or go to http://www.safercar.gov. If you would like to update your vehicle ownership or contact information, you may do so by registering at www.toyota.com/ownersupdate. You will need your full 17-digit Vehicle Identification Number (VIN) to input the new information. If you are a vehicle lessor, Federal Law requires that any vehicle lessor receiving this recall notice must forward a copy of this notice to the lessee within ten days.

We have sent this notice in the interest of your continued satisfaction with our products, and we sincerely regret any inconvenience this condition may have caused you. Thank you for driving a Toyota. Sincerely, TOYOTA MOTOR SALES, U.S.A., INC. SAMPLE