TOYOTA

Toyota Motor Sales, U.S.A., Inc.
1001 South Wester Avenue
Torrance, CA S00

(310) 468-1000

To: All Toyota Dealer Principals, General Managers, Service and Parts Managers
Subject: NHTSA - Consumer Advisory on Counterfeit Airbags

Recently, Law Enforcement officials apprehended a counterfeit Airbag ring in North Carolina.
The arrests lead to the confiscation of over 1,500 counterfeit airbags for a variety of manufacturers and
vehicle models. Counterfeit airbags are an industry wide problem and not limited te Toyota.

On Wednesday, October 10, 2012, the National Highway Traffic Safety Administration is expected
to issue a Consumer Advisory on Counterfeit Airbags and what consumers can do to protect
themselves.

Based upon the Consumer Advisory, it is possible that customers will contact dealerships requesting to
have their vehicles inspected. There is not a method for inspecting for and identifying counterfeit airbag
assemblies. While some counterfeits may be obvious, this may not always be the case.

The following guidelines may be used to assist customers:

e If the vehicle has never had the airbag(s) replaced, there is no need to be concerned.
« Ifthe airbag was replaced by a Toyota dealer under warranty, there is no need to be concerned.

e If the customer previously had the airbag(s) replaced at any other repair facility, the customer
should request that repair facility to provide documentation that a genuine Toyota replacement
airbag was used.

e |facustomer purchased a used vehicle and suspects he/she may have a counterfeit airbag, the
customer should contact the seller to determine if a genuine Toyota replacement airbag was used.

e If the airbag(s) was previously replaced but the customer is unable to return to the repair facility,
he/she should be directed to www.safercar.gov for additional information.

e Depending upon the quality of the counterfeit, it may not be possible to determine if an airbag is
genuine or not by a visual inspection.

« Counterfeit airbags may have resistors installed to mimic an OEM airbag and prevent the airbag
warning light from remaining itluminated. Under no circumstances should a dealer attempt to test
an airbag resistance with an ohm meier. This may deploy an airbag causing injury to the
technician.

e Toyota Certified Used Vehicles (TCUV) go through an inspection process to ensure they meet our
standards. During this process, the dealership verifies* the vehicle's airbag(s) are present with no
evidence of deployment. Airbag deployment or any signs that airbag covers have been painted
renders the vehicle permanently ineligible for certification.

*This includes running a vehicle history through CARFAX.

e Ifthe customer determines the vehicle's airbag is counterfeit and requires replacement, the repair
will be at customer expense.

« Customers should always wear seatbelts as they are the primary restraint system in the
vehicle; the airbag system is designed to be a supplemental vehicle restraint system.
If a consumer is about to have an airbag replaced, the following tips may assist in assuring he/she
purchases a good, reliable airbag.

« Purchasing a Toyota Original Equipment (OE) Airbag from a Toyota dealer will ensure that the
right airbag designed for the vehicle is used.
Always demand that the repair facility provide proof that the right airbag is being used.
Never buy an airbag with a questionable history (e.g., airbags sold on the internet).

e If the price is too good to be true, it is probably a counterfeit.

The attached Q&A is also available to respond to any customer questions.

Toyota would also like to remind dealers and associates to immediately report any suspicious airbag
related activity to the local law enforcement officials.

If a customer has further questions, please direct the inquiry to the Toyota Customer Experience Center at
1-800-331-4331.

Thank you.
CP) TOYOTA

NHTSA Consumer Advisory on Counterfeit Airbags — Q&A

Background
Recently, Law Enforcement officials apprehended a counterfeit Airbag ring in North Carolina. The arrests

lead to the confiscation of over 1,500 counterfeit airbags for a variety of manufacturers and vehicle
models. Counterfeit airbags are an industry wide problem and not limited to Toyota.

On Wednesday, October 10, 2012, the National Highway Traffic Safety Administration is expected
to issue a Consumer Advisory on Counterfeit Airbags and what consumers can do to protect
themselves.

If the vehicle has never had the airbag(s) replaced or the airbag was replaced by a Toyota dealer
under warranty, there is no need to be concerned.

Qt: _ Can Toyota assist the customer with inspecting the airbag assembly?

Ai: There is not a method for inspecting for and identifying counterfeit airbag assemblies. While some
counterfeits may be obvious, this may not always be the case.

Qta: How can customers verify if their replacement airbag was a OEM Toyota

replacement?
Alia: |f the customer previously had the airbag(s) replaced at any repair facility, the customer

should request that repair facility to provide documentation that a genuine Toyota
replacement airbag was used.

Q1b:__What if a customer purchased a used vehicle and suspects he/she may have a
counterfeit airbag(s)?

Aib: Customer should contact the seller to determine if a genuine Toyota replacement airbag(s)
was used.

tc: Are there any steps customers can take until the airbag authenticity can be verified
with the repair facility?
Aic: Customers should always wear seatbelts as they are the primary restraint system in the
vehicle. The airbag system is designed to be a supplemental vehicle restraint system.

2:__ Are there any indicators a vehicle may have a counterfeit airbag installed?
A2: The NHTSA consumer advisory notes several areas to look at when trying to identify counterfeit
airbags. However, Toyota has not investigated counterfeit airbags and it is not certain whether
they can be identifiable using these indicators.

2a: What are the counterfeit identification indicators in the NHTSA advisory?
A2a: Please refer to the NHTSA consumer advisory which can be found at www.safercar.gov

Q3:__ Which vehicles are covered by this Consumer Advisory?

A3: Please refer to NHTSA’s website for further information. It is important to note that there is no
need to be concerned if your airbag was never replaced or replaced with a genuine manufacturer's
airbag.

3a:__Is this a Toyota Safety Recail?
A3a: No, this is not a Safety Recall.

3b: __Is this issue limited to Toyota vehicles?
A3b: No, this issue affects the entire automotive industry.
Q4: | havea vehicle in dealership inventory. How do | determine if the vehicle has a counterfeit

airbag?
A4: _ ifthe dealer does not know if the airbags were previously replaced, it is recommended that the

dealer check a commercially available web based service, such as Carfax, to determine if the
vehicle has been involved in a crash which required air bag replacement. Note: Commercial
vehicle history reports are good indicators of a vehicle's history but may not capture all crashes.

Q4a: Will this advisory have any effect on Toyota Certified Used Vehicles (TCUV)?
Ada: Toyota Certified Used Vehicles (TCUV) go through an inspection process to ensure they

meet our standards. During this process, the dealership verifies the vehicle's airbag(s) are
present with no evidence* of deployment. Airbag deployment or any signs that airbag
covers have been painted renders the vehicle permanently ineligible for certification.

*This includes running a vehicle history through CARFAX.

Q5:__ What can a customer do to ensure the airbag he/she is about to purchase is nota
counterfeit?

A5: Purchasing a Toyota Original Equipment (OE) Airbag from a Toyota dealer will ensure that the
right airbag designed for the vehicle is used.

Q6:;___ Are there any additional documents or information the customer can refer to?
A6: ‘Yes, the National Highway Traffic Safety Administration (NHTSA) has published a consumer

advisory regarding counterfeit airbag assemblies. The NHTSA advisory can be found at
www. safercar.gov

Q7: __if a counterfeit airbag is identified who is responsible for the replacement cost?
A7: Ifthe customer determines the vehicle's airbag is counterfeit and requires replacement, the repair

will be at customer expense.

Q8: _ What if an owner has additional questions or concerns?

A8: Owners with questions or concerns are asked to please contact the Toyota Customer Experience
Center at 1-800-331-4331 Monday through Friday, 5:00 am to 6:00 pm, or Saturday 7:00 am
through 4:00 pm Pacific Time.