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

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Toyota Motor Sales, USA, Inc. 6565 Headquarters Drive Plano, TX 75024 (469) 292-4000 Original Publication Date: March 29, 2018 To: Subject: All Toyota Dealer Principals, General Managers, Service Managers, and Parts Managers Safety Recall J0F Remedy Notice Certain 2016 Model Year Prius Airbag Sensor On January 31, 2018, 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 have airbag systems where an open circuit could be created over time. If this were to occur, the airbag warning light will illuminate and the side/curtain shield airbags may not deploy. Airbag non-deployment could increase the risk of injury to the occupants in the event of a crash. Remedy Toyota will send an owner notification by first class mail advising owners to make an appointment with their authorized Toyota dealer to have the airbag sensors inspected and replaced with new ones, IF NECESSARY, at NO CHARGE. Covered Vehicles There are approximately 8,000 vehicles covered by this Safety Recall. There were approximately 60 vehicles distributed to Puerto Rico involved in this Safety Recall. Model Name Model Year Production Period Prius 2016 Early June 2015 Late December 2015 Owner Letter Mailing Date Toyota will begin to notify owners in late March 2018. A sample of the owner notification letter has been included 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. 2018 Toyota Motor Sales, USA

New Vehicles in Dealership Inventory There are approximately 2 vehicles in new dealer inventory as of January 30, 2018. 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. Further, 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 is remedied. Toyota reimburses dealers for flooring costs associated with new vehicles held in dealership inventory until the recall remedy becomes available. Toyota provides these flooring reimbursements at 60 day intervals. Toyota reserves the right to withhold or charge-back any flooring reimbursement funds that may have been paid to the dealer if it determines that a new vehicle subject to a safety recall was sold without first being 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. NOTE: Dealers can identify if any of their new and used inventory has any open campaigns in the Vehicle Inventory Summary available in Dealer Daily (https://dealerdaily.toyota.com/). The Vehicle Inventory Summary may take up to 24 hours to populate information for newly launched campaigns. Pre-Owned Vehicles in Dealer Inventory To ensure customer satisfaction, Toyota requests that dealers complete this Safety Recall on any used vehicles currently in dealer inventory that are covered by this Safety Recall prior to customer delivery. However, if the campaign cannot be completed (for example, due to remedy parts availability), delivery of a covered vehicle is acceptable if disclosed to the customer that the vehicle is involved in a Safety Recall. Toyota expects dealers to use the attached Customer Contact and Vehicle Disclosure Form to obtain vehicle buyer information. Dealers are expected to provide a copy of the completed form, along with the most current FAQ, to the vehicle buyer. Toyota and the dealer may use this information to contact the customer when the remedy becomes available. Keep the completed form on file at the dealership and send a copy to quality_compliance@toyota.com. In the subject line of the email, state Disclosure Form J0F and include the VIN. NOTE: Dealers can identify if any of their new and used inventory has any open campaigns in the Vehicle Inventory Summary available in Dealer Daily (https://dealerdaily.toyota.com/). The Vehicle Inventory Summary may take up to 24 hours to populate information for newly launched campaigns. Toyota Certified Used Vehicle (TCUV) The TCUV policy prohibits the certification of any vehicle with an outstanding Safety Recall, Special Service Campaign, or Limited Service Campaign. Thus, no affected units are to be designated, sold, or delivered as a TCUV until all applicable Safety Recalls, Special Service Campaigns, and Limited Service Campaigns have 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.

Safety Recall J0F - D - Page 3 Loaner Vehicle Reimbursement Procedure For customers who requested a loaner vehicle or alternative transportation in the interim phase, a loaner vehicle or alternative transportation can be claimed up to $35 per day. Op. Code LGG28A LGG28B Description Vehicle Rental 1-30 Days Vehicle Rental 31-45 Days NOTE: Rental invoice MUST be attached to all rental claims. These claims may be subject to debit if rental invoice is not attached. 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: Certified Technician (Electrical) Expert Technician (Any specialty) Master Technician Master Diagnostic Technician Always check which technicians can perform the repair 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 Refer to TIS for Technical Instructions on 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, 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. NOTE: Inspection software will provide part number information if it is determined part replacement is required. An airbag sensor will not be released without a screenshot submitted of the judgement screen from the inspection software. Refer to the MAC report for additional details. 2018 Toyota Motor Sales, USA

Warranty Reimbursement Procedure Verify Vehicle Eligibility 1. Check the TIS Vehicle Inquiry System No further action required Covered Check air bag sensors OK Campaign completed, return the vehicle to the customer NG Replace the air bag sensor(s) with a NEW one(s) Campaign completed, return the vehicle to the customer Opcode Description Flat Rate Hours LGG07A Inspect the airbag sensors - NO REPLACEMENT NEEDED 0.3 LGG07R Inspect & replace the front door airbag sensor one side 1.0 LGG07S Inspect & replace the front door airbag sensor both sides 1.6 Warranty claim filing will be available on 4/6/2018. The flat rate times include 0.1 hours for administrative cost per unit for the dealership. Towing can be claimed under opcode LGG07A, LGG07R, or LGG07S for a maximum of $250 as sublet type TW in the event the customer requests vehicle pickup. Claim Filing Accuracy and Correction Requests It is the dealer s responsibility to file claims correctly for this Safety Recall. This claim filing information is used by Toyota for various government reporting activities; therefore, claim filing accuracy is crucial. If it has been identified that a claim has been filed using an incorrect opcode or a claim has been filed for an incorrect VIN, refer to Warranty Procedure Bulletin PRO17-03 to correct the claim. 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. Customer Reimbursement Reimbursement consideration instructions will be included in the owner letter.

Safety Recall J0F - D - Page 5 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 J 0 A Year Campaign is Launched Repair Phase Current Campaign Letter for this year B = 2011 C = 2012 D = 2013 E = 2014 F = 2015 G = 2016 H = 2017 J = 2018 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: C1B = Launched in 2012, Interim Phase, 2 nd Campaign Launched in 2012 E0A = Launched in 2014, Remedy Phase, 1 st Campaign Launched in 2014 J0A = Launched in 2018, Remedy Phase, 1 st Campaign Launched in 2018. 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. 2018 Toyota Motor Sales, USA

Product Quality and Service Support, Quality Compliance Published: March 29, 2018 Approved By: Tom Trisdale Vice President, Product Quality and Service Support Toyota Motor Sales, USA, Inc. 6565 Headquarters Drive Plano, TX 75024 (469) 292-4000 To: From: All Toyota Dealers Quality Division Product Quality and Service Support **Part Ordering Process for Safety Recall J0F** Safety Recall J0F Certain 2016 Model Year Prius Airbag Sensor The inspection software will provide part number information if it is determined that part replacement is required. Parts should ONLY be ordered if the inspection software determines sensor replacement is required. For release of an airbag sensor by PTSG (Parts Technical Support Group), you will be required to email PRAproject@toyota.com the following: o o o o o o VIN Part Number and Quantity Dealer Number Order Reference Number Contact Name and Number Screenshot of Inspection Software Judgement These parts release requirements are also listed in the MAC report. NOTE: An airbag sensor will not be released without a screenshot of the judgement screen from the inspection software. Refer to the Dealer Letter and Technical Instructions on TIS for additional information. Thank you for your cooperation. TOYOTA MOTOR SALES, U.S.A., INC. 2018 Toyota Motor Sales, USA

Safety Recall J0F Remedy Notice Certain 2016 Model Year Prius Airbag Sensor Frequently Asked Questions Original Publication Date: March 29, 2018 Q1: What is the condition? A1: The involved vehicles have airbag systems where an open circuit could be created over time. If this were to occur, the airbag warning light will illuminate and the side/curtain shield airbags may not deploy. Airbag non-deployment could increase the risk of injury to the occupants in the event of a crash. Q1a: A1a: Will all airbags in the subject vehicles not deploy if the condition occurs? Depending on the location of the affected sensor with the condition, the side/curtain airbags may not deploy. Q2: Are there any warning signs that this condition exists? A2: If this were to occur, the airbag warning light will illuminate. Airbag Warning Light Q3: What should I do if my Airbag Warning Light illuminates? A3: The Airbag Warning Light is designed to come on when the engine switch is turned to the ON position during the ignition cycle check function. Under normal operation, it goes off after a few seconds. The warning light turning off after the check period means the system is operating as designed**. If the Airbag Warning Light (1) does not illuminate or (2) illuminates or remains illuminated after the few second check period, your side/curtain airbags may not operate in a crash. Please contact your local authorized Toyota dealer promptly for diagnosis and appropriate repair. If the warning lamp illumination is related to the condition covered by this Safety Recall, the inspection and potential repair will be performed at no charge to you. ** Please refer to the Owner s Manual for additional operation details related to this system. Q4: What is Toyota going to do? A4: Toyota will send an owner notification by first class mail advising owners to make an appointment with their authorized Toyota dealer to have the airbag sensors inspected and replaced with new ones, IF NECESSARY, at NO CHARGE. 2018 Toyota Motor Sales, USA FAQ Page 1 of 2

Q5: Which and how many vehicles are covered by this Safety Recall? A5: There are approximately 8,000 vehicles covered by this Safety Recall. There were approximately 60 vehicles distributed to Puerto Rico involved in this Safety Recall. Model Name Model Year Production Period Prius 2016 Early June 2015 Late December 2015 Q5a: A5a: Are there any other Toyota/Lexus/Scion vehicles covered by this Safety Recall in the U.S.? Yes, there are certain 2015-2016 model year Lexus NX vehicles, and certain 2016 model year Lexus RX vehicles covered by this Safety Recall. Q6: How long will the repair take? A6: Including wait time and depending on the dealership s schedule, the inspection will take approximately 45 minutes. If the results of the inspection determine that sensor replacement is necessary, the time necessary will range from approximately 1.5 hours to approximately 3.0 hours, depending upon how many sensors require replacement. Q7: What if I previously paid for repairs related to this Safety Recall? A7: Reimbursement consideration instructions will be provided in the owner letter. Q8: How does Toyota obtain my mailing information? A8: 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. Q9: What if I have additional questions or concerns? A9: 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.

TOYOTA This notice applies to your vehicle: [VIN] URGENT SAFETY RECALL This is an important Safety Recall. The remedy will be performed at NO CHARGE to you. Certain 2016 Model Year Prius Vehicles Airbag Sensor IMPORTANT SAFETY RECALL (Remedy Notice) NHTSA Recall No. 18V-085 Dear Toyota Customer: This notice is sent to you in accordance with the National Traffic and Motor Vehicle Safety Act. Toyota has decided that a defect, which relates to motor vehicle safety, exists in 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 have airbag systems where an open circuit could be created over time. If this were to occur, the airbag warning light will illuminate and the side/curtain shield airbags may not deploy. Airbag non-deployment could increase the risk of injury to the occupants in the event of a crash. What will Toyota do? Any authorized Toyota dealer will inspect the airbag sensors and, if necessary, replace them at NO CHARGE to you. SAMPLE

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. SAMPLE The Airbag Warning Light is designed to come on when the engine switch is turned to the ON position during the ignition cycle check function. Under normal operation, it goes off after a few seconds. The warning light turning off after the check period means the system is operating as designed**. If the Airbag Warning Light (1) does not illuminate or (2) illuminates or remains illuminated after the few second check period, your side/curtain shield airbags may not operate in a crash. Please contact your local authorized Toyota dealer promptly for diagnosis and appropriate repair. If Airbag Warning Light the warning lamp illumination is related to the condition covered by this Safety Recall, the inspection and potential repair will be performed at no charge to you. **Please refer to the Owner s Manual for additional operation details related to this system. Including wait time and depending on the dealership s schedule, the inspection will take approximately 45 minutes. If the results of the inspection determine that sensor replacement is necessary, the time necessary will range from approximately 1.5 hours to approximately 3.0 hours, depending upon how many sensors require replacement. Want to learn more? For more information on this and other Safety Recalls, including Frequently Asked Questions, visit www.toyota.com/recall. Input your full 17-digit Vehicle Identification Number (VIN Located at the top of this letter) to review information specific to your vehicle. What if you have previously paid for repairs to your vehicle for this specific condition? If you have previously paid for repair to your vehicle for this specific condition prior to receiving this letter, please mail a copy of your repair order, proof-of-payment and ownership information to the following address for reimbursement consideration: Toyota Customer Experience Center - TSR Toyota Motor Sales, USA, Inc. c/o Toyota Motor North America, Inc. P O Box 259001 SSC/CSP Reimbursements Plano, Texas 75025-9001 What if you have other questions? 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. 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/owners. 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

TOYOTA Published March 29, 2018 Toyota Motor Sales, USA, Inc. 6565 Headquarters Drive Plano, TX 75024 (469) 292-4000 This form is not applicable for TCUV units. CUSTOMER CONTACT & VEHICLE DISCLOSURE FORM This vehicle is involved in a Safety Recall. At this time, remedy parts are not available and the remedy has NOT been performed. I understand that the vehicle will need to be returned to an authorized Toyota dealer to have the remedy performed at NO CHARGE when the remedy is available. Customer Signature Toyota recommends that you register with the Toyota Owners Community at http://www.toyota.com/owners/ and regularly check recall applicability using www.toyota.com/recall or www.safercar.gov. You will need to input your 17- digit Vehicle Identification Number (VIN). VIN Campaign Code Model Customer Information Model Year Customer Name Customer Email Customer Address Home Phone # Mobile Phone # Please provide this information so that Toyota or your dealer can notify you when the remedy becomes available. This information will only be used for campaign communications. If you d like to update your preferred contact information in the future, visit www.toyota.com/ownersupdate or contact us at 1-888- 270-9371. Date Dealer Information Dealer Name/Address Dealer Code Dealer Phone Number Dealer Staff Name Dealer Staff Signature 2018 Toyota Motor Sales, USA