21113 Service Bulletin/Repair Instructions

February 11, 2013
To:
Lexus General Managers
Subject:
UPDATE REGARDING CUSTOMER NOTIFICATION OF SETILEMENT AGREEMENT IN

ECONOMIC LOSS LITIGATION RELATED TO PAST RECALLS
In December 2012, Toyota announced that ii had entered into an agreement lo resolve certain economic loss class

action hligation in the US This update offers addtlional information lo help you andyour staffprovtde information lo

dealers lo help them answer inquiries from customers.

Background

As announced at the end of last year, Toyota has entered into a proposed settlement to resolve certain class action

litigation filed against the company in the wake of the 2009 /2010 reca lls. O n February 11, 2013, the next phase of the

settlement process will begin. During this phase, the court-appointed Administrator will mail notifications to certain

current and former customers alerting them to the settlement. Approximately 20 million notices will be mailed by March

29, 2013.

In addition, beginning in March notice of the settlement will run in select U.S. publications and banner ads will be posted

on the internet in order to alert consumers to the settlement. The broad reach of the notification process could generate

inquiries from customers, who may reach out to Lexus dealers for more information. A copy of the publication schedule

is attached for your reference (please do not citstribute this document).

The text of the mailed and published notices is available on the settlement website,www.ToyotaELsettlement.com.

The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed administrator,

Gilardi & Company. For more information, customers can visit the settlement website or call 8 77-28 3-0507 . A copy

of the proposed settlement agreement is also available on the website; it includes a list of affected vehicles, a description

of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement before eligible participants are determined and any

benefits are made available. Because the settlement is contingent on Court approval, we w ill provide you with further

updates and additional information if the settlement is approved. You can also check the settlement website for status

updates.
1.
Dealer N otification

Lexus will notify dealers on February 11, 2013 of the planned notification mailings and advertisements. To answer any

questions that the dealers may have about the customer notification process, and to help them address any questions

that customers may have, Lexus will also send the attached Customer/Dealer FAO.
UPDATE - Page 2
2. Owner Notification

The Court has instructed that all jnquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi &Company. Customers with questions about the settlement should be directed to the

settlement website, ~.T..Qy..Qi!!EkE.!.tl!~.m~n!&Qm. or asked to call 877-283-0507.
3. Media Contacts

For news media inquiries only. While we do not anticipate media coverage of the notifications, due to the nature of

this process and the settlement agreement, it is imperative that all media representatives (local and national) receive

a consistent message. For this reason, aHmedia inquiries must be directed to the Toyota media line, at (310) 468

5297. (Please do not provide these numbers to customers or direct dealership associates to call).

Please review all of the attached materials with the appropriate associates so that they may provide the necessary

support to your dealers and maximize our combined customer satisfaction efforts.
Thank you for your cooperation,

Lexus Service and Parts Operations Department

Enclosures

Dealer Letter

FAQ for Customers and Dealers

cc:
Area Assistant General Managers

Area Customer Service Operations Managers

Area Customer Services Field Managers

Area Technical Services and Training Managers

Area District Service and Parts Managers

Area Customer Satisfaction Managers

Lexus PDC Managers

Area Field Technical Specialists

Region/Private Distributor Service Training Specialists

Area Vehicle Operations Managers

Field Product Engineers
2
February 11, 2013
To:
All Lexus Dealer Principals
Subject:
UPDATE REGARDING CUSTOMER NOTIFICATION OF SETILEMENT AGREEMENT IN

ECONOMIC LOSS LITIGATION RELATED TO PAST RECALLS
In December 2012, Toyota announced that it had entered into an agreement to resolve certain economic loss class

action litigation in the US. This update offers additional information lo help you andyour staffanswer inquiries from

customers and dealership associates.

Background

As announced at the end of last year, Toyota has entered into a proposed settlement to resolve certain class action

litigation filed against the company in the wake of the 200912010 recalls. On February 11, 2013, the next phase of the

settlement process will begin. During this phase, the court-appointed Administrator will mail notifications to certain

current and former customers alerting them to the settlement. Approximately 20 million notices will be mailed by March

29,2013.

In addition, beginning in March notice of the settlement will run in select U.S. publications and banner ads will be posted

on the internet in order to alert consumers to the settlement. The broad reach of the notification process could generate

inquiries from customers, who may contact Lexus dealers for more information.

The text of the mailed and published notices is available on the settlement website, ~.Tqy_QtaIJ.~~til"Cl]J~n.\&Ql]J.

The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed administrator,

Gilardi &Company. For more information, customers can visit the settlement website or call 877-283-0507. A copy

of the proposed settlement agreement is also available on the website; it includes a list of affected vehicles, a description

of the settlement and estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement before eligible participants are determined and any

benefits are made available. Because the settlement is contingent on Court approval, we will provide you with further

updates and additional information if the settlement is approved. You can also check the settlement website for status

updates.

The attached FAQ is included to help you respond to any questions that you may receive from customers, as well as to

address any additional questions that you or your staff may have.

Owner Notification

The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed administrator,

Gilardi & Company. Customers with questions about the settlement should be directed to the settlement website,

www.ToyotaELsettlement.com, or asked to call 877-283-0507.
UPDATE - Page 2

Please review all of the attached materials with the appropriate associates so that they may provide the necessary

support to maximize our combined customer satisfaction efforts.

Thank you for your cooperation,
Lexus Service and Parts Operations Department
Enclosures:

FAQ for Customers and Dealers
CC:
Service Managers

Parts Managers

General Managers

Customer Relations Managers
2
FREQUENTLY ASKED QUESTIONS

As announced al the end oflast year, Toyota has entered into a proposedsettlement to resolve certain class action

hiigation filed against the company in the wake ofthe 200912010 recalls, which claimed that Toyota/Lexus/Scion

vehicles had lost value because of the Company's actions, the negative publicity surrounding the recalls, and an alleged

defect in Toyota's electronic throttle controlsystems (ETCS) that could cause acceleration unintended by the driver.

Though reliable scientific evidence and multiple independent evaluations have confirmed the safety of Toyota's electronic

throttle control systems, the company has concluded that turning the page on this legacy legal issue is in the best interests

of the company and its employees, dealers and customers.

In keeping w1!h !Is core principles, Toyota has structured this agreement in ways that work lo put customers first and

demonstrate that they can count on the company lo stand behindits vehicles.

On February 11, 2013, the next phase of the settlement process w11!begin. During this phase, the court-appointed

Administrator w11! mail noMcations to certain current and former customers alerting them to the settlement.

Approximately 20 m11h'on notices w11! be mailed by March 29, 2013

In addi!ion, beginning in March notice ofthe settlement willrun in select US pubhcations and banner ads will be posted

on the internet in order lo alert consumers lo the settlement The broad reach ofthe notification process couldgenerate

inquiries from customers, who may contact Lexus dealers for more information.

The text ofthe mailed and published notices is available on the settlement website, www~Tu.\l.otal;_l3'~J!e_QJS!D.L@m.

The Court has instructed that allinquiries regarding the settlement should be directed lo a court-appointed administrator,

For more information, you can visit the settlement website, al'!'{WV'!]9Y.9~El~S!!!l~m~oJcoQJ, or call

877-283-0507. A copy ofthe proposedsettlement agreement is available on the websile; ii includes a list ofaffected

vehicles, a description ofthe settlement and estimated dates and deadlines.

Gilardi &Company.
Please note that the Court must grant final approval ofthe settlement before eligible participants are determined and any

benefits are made available. Because the settlement is contingent on Court approval, we willprovide you wilh further

updates and additionalinformation ifthe settlement is approved You can also checkY:!Yf'!'!.TQYQ!£El~~l~m~ol,~Qffi for

status updates.

The following FA 0 includes answers to address kke/y queslions among both customers and dealers.
FOR CUSTOMERS

Why am I receiving this notification? I Why am I seeing advertisements for this settlement agreement?
1.

•
At this stage of the settlement process, the Court requires that class members be notified of the agreement by

mail and/or by the publication of notice in various print and online media to help make those potentially eligible

to participate in the settlement aware of how they can receive more information.
3
FAOs - Page 2

2.
How do I know ~ my vehicle is involved in this settlement?
•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www.ToyotaELsettlement.com, or call 877-283-0507.
•
A copy of the proposed settlement agreement is available on the website; it includes a list of affected vehicles, a

description of the settlement and estimated dates and deadlines.
•
Please note that the Court must grant final approval of the settlement and any appeals must be resolved in favor

of the settlement before eligible participants are determined and any benefits are made available.
3.
Am I eligible for a cash payment?

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed settlement agreement is

available on the website; it includes a list of affected vehicles, a description of the settlement and estimated dates

and deadlines.
•
Please note that the Court must grant final approval of the settlement and any appeals must be resolved in favor

of the settlement before eligible participants are determined and any benefits are made available.

If I am eligible, when will I be notified about how to collect?
4.

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi &Company. For more information, you can visit the settlement website, at

'!'!.WWT9yotaELsettlemenl.cQD1 or call 877-283-0507. A copy of the proposed settlement agreement is

available on the website; it includes a list of affected vehicles, a description of the settlement and estimated dates

and deadlines.
•
Please note that the Court must grant final approval of the settlement and any appeals must be resolved in favor

of the settlement before eligible participants are determined and any benefits are made available.
5.
Am I eligible to get Brake Override7

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www.ToyotaELsettlemenl.com, or call 877-283-0507. A copy of the proposed settlement agreement is

available on the website; it includes a list of affected vehicles, a description of the settlement and estimated dates

and deadlines.
•
Please note that the Court must grant final approval of the settlement and any appeals must be resolved in favor

of the settlement before eligible participants are determined and any benefits are made available.
4
FAOs-Page3
If I am eligible, when will I be told to bring my vehicle in for retrofitting 7
6.

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement

website, atwww.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed settlement

agreement is available on the website; it includes a list of affected vehicles, a description of the settlement and

estimated dates and deadlines.

Please note that the Court must grant final approval of the settlement and any appeals must be resolved in favor

of the settlement before eligible participants are determined and any benefits are made available.
•
7.
What should I do if I received a notice but no longer own the vehicle/have never owned the vehicle7

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed settlement agreement is

available on the website; it includes a list of affected vehicles, a description of the settlement and estimated dates

and deadlines.
•
Please note that the Court must grant final approval of the settlement and any appeals must be resolved in favor
of the settlement before eligible participants are determined and any benefits are made available.

8. Why aren't you giving brake override systems to everyone7
9.
•
Lexus vehicles are safe, with or without brake override.
•
We have agreed to add BOS to non-hybrid vehicles subject to the floor mat recall in order to give customers an

added measure of confidence in the safety of their vehicles.
Are vehicles that will not get brake override unsafe7

•
No. Lexus vehicles are safe, with or without brake override.
10. Does this settlement mean that there is a defect in Toyota vehicles7

•
Absolutely not. This agreement relates strictly to economic claims, not to product safety.
•
We believe that this agreement demonstrates that Toyota stands behind the quality and safety of its products and

is committed to providing value to its customers.
•
Reliable scientific evidence - including the comprehensive NHTSA-NASA studies as well as other independent

evaluations - confirms that Toyota's electronic throttle control system is safe.
5
FAQs - Page 4

11.
When does the customer support program start?

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed settlement agreement is

available on the website; it includes a list of affected vehicles, a description of the settlement and estimated dates

and deadlines.
•
Please note that the Court must grant final approval of the settlement and any appeals must be resolved in favor

of the settlement before eligible participants are determined and any benefits are made available.
12.
Do I give up anything under the settlement?

•
13.
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www.ToyotaELsettlement.com, or call 877-283-0507.

What do I do ii I experience a problem with my vehicle7
•

14.
As always, if you have any concerns with your vehicle, please take it to your local Lexus dealer.

What is a brake override system 7
•
A brake override system will cut engine power under certain circumstances when the vehicle detects that both

the accelerator pedal and the brake pedal are being depressed at the same time, helping bring the vehicle to a

stop.
•
For more information, please visit Lexus.com, under Smart Stop Technology.
15.
When will brake override be available for my vehicle7

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www.ToyotaELsettlement.com, or call 877-283-0507. A copy of the proposed settlement agreement is

available on the website; it includes a list of affected vehicles, a description of the settlement and estimated dates

and deadlines.
•
Please note that the Court must grant final approval of the settlement and any appeals must be resolved in favor

of the settlement before eligible participants are determined and any benefits are made available.
6
FAOs- Page5

FOR DEALERS
1.
When do you expect the programs in this settlement agreement to begin 7 How will I be notified?

•
The settlement is only effective if and when the Court approves it. If the Court grants final approval of the

settlement, we will contact you again with information about how the programs will be put into effect.
•
In the meantime, please refer to the settlement websitewww.ToyotaELsettlement.com for additional information

about the settlement, including timing and the programs that will be offered if the Court grants final approval.
2.
Where should I direct customers who may have questions about this settlement agreement?

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

yty1W.ToyotaE_l?ettlement.c9m or call 877-283-0507. A copy of the proposed settlement agreement is

available on the website; it includes a list of affected vehicles, a description of the settlement and estimated dates

and deadlines.
•
Please remind customers that the Court must grant final approval of the settlement and any appeals must be

resolved in favor of the settlement before eligible participants are determined and any benefits are made

available.
3.
4.
What should I tell customers who ask for Brake Override to be installed before the agreement has been finalized?

•
The Court has instructed that all inquiries regarding the settlement should be directed to a court-appointed

administrator, Gilardi & Company. For more information, you can visit the settlement website, at

www.ToyotaELsettlement.com, or call 877-283-0507.
•
A copy of the proposed settlement agreement is available on the website; it includes a list of affected vehicles, a

description of the settlement and estimated dates and deadlines.
•
P1case remind customers that the Court must grant final approval c' the settlement and any appeals must be

resolved in favor of the settlement before eligible participants are determined and any benefits are made

available.

What, if any, impact do you predict this agreement will have on the sale of Lexus vehicles7

•
We do not believe these settlements will affect our ability to compete aggressively in the US market.
•
TMC is financially strong, with substantial cash reserves and a strong balance sheet.
•
Lexus' sales were also very strong in 2012, and our goal is to continue that momentum into 2013.
•
Putting these legal issues behind us will allow us to put more of our energy, time and resources into Lexus'

central focus: making the best vehicles we can for our customers and doing everything we can to meet their

needs.
7
Important Legal Notice from the United States

District Court for the Central District of California

PLEASE PLACE THIS CUSTOMER SUPPORT

PROGRAM IN YOUR SUBJECT VEHICLE'S GLOVE

BOX. THIS IS AN IMPORTANT DOCUMENT THAT

YOU SHOULD KEEP IN YOUR VEHICLE WITH

YOUR WARRANTY DOCUMENTS.

If the Court grants final approval of the settlement, Toyota is

offering a Customer Support Program to all Class Members

who still own or lease their Subject Vehicles as of the date of

final approval by the Court. The Customer Support Program

will provide future coverage for repairs and adjustments

needed to correct defects in materials or workmanship, if any,

in any of the following components in your Subject Vehicle

following the date of final approval by the Court: (i) engine

control module; (ii) cruise control switch; (iii) accelerator

pedal assembly; (iv) stop lamp switch; and (v) throttle body

assembly. The duration of future coverage will begin following

the date of final approval by the Court and will be calculated

based on 10 years from the expiration of the existing warranty

for each of these parts, with a maximum limit of 150,000

miles from the vehicle's in-seivice date. The in-service date

is the first date the vehicle is either delivered to an ultimate

purchaser, leased, or used as a company car or demonstrator.

Regardless of mileage or warranty expiration, each eligible

Subject Vehicle will receive at least 3 years of coverage from

the date of final approval by the Court. T. .is Customer Support

Program will not cover the cost for past repairs.
.~~t:i~t~J~;~~~·~~iiJa:ii)·... -··

J~ell~~~.r.:OJI!·a· .t~~Ac#-~~'~e.~l~lnt'.!;l~:;: .:· ·
Toyota Economic Loss

Settlement Administrator

c/o Gilardi & Co. LLC

P.O. Box 808012

Petaluma CA 94975-8012
TMUA1

2D
DDllllDDlllllDDDDD

Postal Seivice: Please Do Not Mark Barcode
TMUA1-«Claim8»-

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