Customer Satisfaction Program 14B07 Certain 2013 through 2014 Model Year C-Max Hybrid and Fusion Hybrid Vehicles Transmission Inspection and Repair

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Michael A. Berardi Ford Motor Company Director P. O. Box 1904 Service Engineering Operations Dearborn, Michigan 48121 Ford Customer Service Division TO: All U.S. Ford and Lincoln Dealers November 9, 2015 SUBJECT: Customer Satisfaction Program 14B07 REF : TSB 14-0214 - HF35 Transmission - Thumping/Rubbing Or Grinding Noise Dated November 13, 2014 PROGRAM TERMS This program will be in effect through May 31, 2016. There is no mileage limit for this program. URGENCY / EXPIRATION DATE This Customer Satisfaction Program has an expiration date of May 31, 2016 to encourage dealers and customers to have this service performed as soon as possible. We recommend dealers utilize their FSA VIN Lists name and address (available on December 4, 2015) to contact customers with affected vehicles. This will help minimize the number of vehicles that may exhibit transfer shaft gear assembly-to-damper housing contact, which requires a more extensive repair. AFFECTED VEHICLES Vehicle Model Year Assembly Plant Build Dates Fusion Hybrid 2013-2014 Hermosillo November 30, 2012 through January 21, 2014 C-Max Hybrid 2013-2014 Michigan August 8, 2012 through June 17, 2014 Affected vehicles are identified in OASIS and FSA VIN Lists. REASON FOR THIS PROGRAM Under certain driving conditions, the transfer shaft gear assembly bearing may fail prematurely. This can result in thumping, rubbing, or grinding noises from the transmission, and may be accompanied by the illumination of the powertrain fault indicator (wrench light) in the instrument cluster. SERVICE ACTION Dealers are to disassemble and inspect the transmission for damage or excessive wear, then either repair or replace the transmission as needed. This service must be performed on all affected vehicles at no charge to the vehicle owner. NOTE: Technical Assistance Center prior approval is not required if the transmission requires replacement under this program. OWNER NOTIFICATION MAILING SCHEDULE Owner Letters are expected to be mailed the week of November 16, 2015. Dealers should repair any affected vehicles that arrive at their dealerships, whether or not the customer has received a letter.

ATTACHMENTS Attachment I: Administrative Information Attachment II: Labor Allowances and Parts Ordering Information Attachment III: Technical Information Owner Notification Letter QUESTIONS & ASSISTANCE For questions and assistance, contact the Special Service Support Center (SSSC) via the SSSC Web Contact Site. The SSSC Web Contact Site can be accessed through the Professional Technician Society (PTS) website using the SSSC link listed at the bottom of the OASIS VIN report screen or listed under the SSSC tab. Sincerely, Michael A. Berardi

ATTACHMENT I Page 1 of 2 OASIS ACTIVATION OASIS will be activated on November 9, 2015. FSA VIN LISTS ACTIVATION FSA VIN Lists will be available through https://web.fsavinlists.dealerconnection.com on November 9, 2015. Owner names and addresses will be available by December 4, 2015. NOTE: Your FSA VIN Lists may contain owner names and addresses obtained from motor vehicle registration records. The use of such motor vehicle registration data for any purpose other than in connection with this program is a violation of law in several states, provinces, and countries. Accordingly, you must limit the use of this listing to the follow-up necessary to complete this service action. STOCK VEHICLES Use OASIS to identify any affected vehicles in your used vehicle inventory. SOLD VEHICLES Owners of affected vehicles will be directed to dealers for repairs. Immediately contact any of your affected customers whose vehicles are not on your VIN list but are identified in OASIS. Give the customer a copy of the Owner Notification Letter (when available) and schedule a service date. Correct other affected vehicles identified in OASIS which are brought to your dealership. TITLE BRANDED / SALVAGED VEHICLES Affected title branded and salvaged vehicles are eligible for this service action. ADDITIONAL LABOR TIME AND/OR PARTS Submit a request to the SSSC Web Contact Site prior to the repair if you have any of the following: Damage that you believe was caused by the covered condition. A condition that requires additional labor and/or parts to complete the repair. Aftermarket equipment or non-ford modifications to the vehicle which might prevent the repair of the covered condition. Requests for approval after completion of the repair may not be granted. Ford Motor Company reserves the right to deny coverage for related damage in cases where the vehicle owner has not had this recall performed on a timely basis. Additional related damage parts are subject to random selection for return to the Ford Warranty Parts Analysis Center (WPAC).

ATTACHMENT I Page 2 of 2 OWNER REFUNDS Ford Motor Company is offering a refund for owner-paid repairs covered by this program if the repair was performed before the date of the Owner Notification Letter. This refund offer expires January 31, 2016. Dealers are also pre-approved to refund owner-paid emergency repairs that were performed away from an authorized servicing dealer after the date of the Owner Notification Letter. There is no expiration date for emergency repair refunds. Non-covered repairs, or those judged by Ford to be excessive, will not be reimbursed. Refunds will only be provided for the cost associated with transmission replacement caused by transfer shaft gear assembly bearing failure. RENTAL VEHICLES If you have a unique circumstance which may require a rental vehicle, please contact the SSSC via the SSSC Web Contact Site. CLAIMS PREPARATION AND SUBMISSION Enter claims using Direct Warranty Entry (DWE) or One Warranty Solution (OWS). o DWE: refer to ACESII manual for claims preparation and submission information. o OWS: when entering claims in DMS software, select claim type 31: Field Service Action. The FSA number (14B07) is the sub code. Additional labor and/or parts must be claimed as related damage on a separate repair line from which the FSA is claimed. Additional labor and/or parts require prior approval from the SSSC via the SSSC Web Contact Site. Submit refunds on a separate repair line. - Program Code: 14B07 - Misc. Expense: ADMIN - Misc. Expense: REFUND - Misc. Expense: 0.2 Hrs. Multiple refunds should be submitted on one repair line and the invoice details for each repair should be detailed in the comments section of the claim. For rental vehicle claiming, follow Extended Service Plan (ESP) guidelines for dollar amounts. Enter the total amount of the rental expense under Miscellaneous Expense code "Rental". PROGRAM TERMS: This program will be in effect through May 31, 2016. There is no mileage limit for this program.

ATTACHMENT II Page 1 of 4 LABOR ALLOWANCES Description Vehicle Type Labor Operation Labor Time Inspect and repair transmission (passes inspection) C-Max Hybrid Fusion Hybrid 14B07B 11.6 Hours 9.9 Hours Inspect and replace transmission (fails inspection) C-Max Hybrid Fusion Hybrid 14B07C 10.0 Hours 8.3 Hours Set front end toe vehicles without Lane Departure Warning System (use with either 14B07B or 14B07C) Set front end toe vehicles with Lane Departure Warning System (use with either 14B07B or 14B07C) Fusion Hybrid 14B07D 0.6 Hours Fusion Hybrid 14B07F 0.8 Hours PARTS REQUIREMENTS / ORDERING INFORMATION For simplicity, parts requirements for Fusion Hybrid vehicles and C-Max Hybrid vehicles have been separated into different tables. Each table contains three sections as follows: Parts that are common to both repair options (transmission repair and transmission replacement) Additional parts that are to be used only for transmission repair (transmission passed inspection) Additional parts that are to be used only for transmission replacement (transmission failed inspection) See Page 2 for Fusion Hybrid parts and Page 3 for C-Max Hybrid parts.

ATTACHMENT II Page 2 of 4 Part Number Description Fusion Vehicles Only Use the parts below for both transmission repair and transmission replacement Order Quantity W714878-S439 Steering shaft bolt (4/package, 1 needed) 1 W520215-S440 Outer tie rod end nut (4/package, 2 needed) 1 W705606-S440 Lower stabilizer bar link nut (2/package, 2 needed) 1 W500545-S439 Lower ball joint bolt (4/package, 2 needed) 1 W520214-S442 Lower ball joint nut (1/package, 2 needed) 2 W716457-S439 Subframe bolts (4/package, 4 needed) 1 BB5Z-4B422-B LH halfshaft circlip 1 W520102-S442 RH halfshaft bearing support nuts (4/package, 2 needed) 1 Use the additional parts below for transmission repair only (passed inspection) FG9Z-7H348-B Transmission end cover service kit 1 DG9Z-7048-A Input shaft seal 1 BB5Z-1S177-C RH output seal 1 9L8Z-1177-G LH output seal 1 ZC-30-A Motorcraft silicone gasket remover 1 TA-29 Motorcraft ultra silicone sealant 1 ZC-31-B Motorcraft metal surface prep wipes (25 per package, 2 needed) 1 XT-10-QLVC Motorcraft automatic transmission fluid (1 quart bottles 6 quarts needed for flushing the transmission cooler and lines and 5 quarts needed for refilling the transmission after repairs) Use the additional parts below for transmission replacement only (failed inspection) DM5Z-7000-K Automatic transmission assembly 1 XT-10-QLVC Motorcraft automatic transmission fluid (1 quart bottles 6 quarts needed for flushing the transmission cooler, 3 quarts allowed for topping off the transmission) 11 9

ATTACHMENT II Page 3 of 4 Part Number Description C-Max Vehicles Only Use the parts below for both transmission repair and transmission replacement Order Quantity CV6Z-9448-A Exhaust manifold gasket 1 W704474-S437 Exhaust manifold stud (4/package, 7 needed) 2 W713095-S437 Exhaust manifold nut (4/package, 7 needed) 2 CV6Z-9450-B Exhaust flange gasket 1 W520103-S442 Exhaust flange nuts (4/package, 2 needed) 1 DS7Z-19B596-A Refrigerant hose seal kit 1 AE5Z-4B422-A LH halfshaft circlip 1 CV6Z-3B477-A Halfshaft nut and washer (1/package, 2 needed) 2 W520102-S442 RH halfshaft bearing support nuts (4/package, 2 needed) 1 W715491-S442 Lower ball joint bolt (4/package, 2 needed) 1 W520415-S442 Lower ball joint nut (4/package, 2 needed) 1 VC-3DIL-B Motorcraft orange antifreeze/coolant (1 gallon pre-diluted) 2 Use the additional parts below for transmission repair only (passed inspection) FG9Z-7H348-B Transmission end cover service kit 1 DG9Z-7048-A Input shaft seal 1 BB5Z-1S177-C RH output seal 1 9L8Z-1177-G LH output seal 1 ZC-30-A Motorcraft silicone gasket remover 1 TA-29 Motorcraft ultra silicone sealant 1 ZC-31-B Motorcraft metal surface prep wipes (25 per package, 2 needed) 1 XT-10-QLVC Motorcraft automatic transmission fluid (1 quart bottles 6 quarts needed for flushing the transmission cooler and lines and 5 quarts needed for refilling the transmission after repairs) Use the additional parts below for transmission replacement only (failed inspection) DM5Z-7000-K Automatic transmission assembly 1 XT-10-QLVC Motorcraft automatic transmission fluid (1 quart bottles 6 quarts needed for flushing the transmission cooler, 3 quarts allowed for topping off the transmission) 11 9

ATTACHMENT II Page 4 of 4 PARTS REQUIREMENTS / ORDERING INFORMATION, Continued The DOR/COR number for this program is 51012. Order your parts requirements through normal order processing channels. For questions regarding parts, contact SSSC via the SSSC Web Contact Site. DEALER PRICE For latest prices, refer to DOES II. HANDLING ALLOWANCE An allowance of $330 per repair is being provided in lieu of part mark-up for transmission assemblies if the transmission fails the inspection and must be replaced. PARTS RETENTION AND RETURN Follow the provisions of the Warranty and Policy Manual, Section 1 WARRANTY PARTS RETENTION AND RETURN POLICIES. EXCESS STOCK RETURN Excess stock returned for credit must have been purchased from Ford Customer Service Division in accordance with Policy Procedure Bulletin 4000.