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October 10, 2012

To: Lexus Area General Managers
From: Don Fordiani - National Field and Dealer Operations Manager
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 to Lexus.

On Wednesday, October 10, 2012, the National Highway Tralfic Safety Administration is expected to issue a Consumer
Advisory on Counterleit Airbags and what consumers can do to protect ihemselves

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 tollowing guidelines may be used to assist customers;
e = Hf the vehicle has never had the airbag(s) replaced, there is no need to be concerned.
® Ifthe airbag was replaced by a Lexus dealer under warranty, there is no need to be concerned.

@ ifthe 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 Lexus replacement airbag was used.

@ = Ifacustomer purchased a used vehicle and suspects he/she may have a counterfeit airbag, the customer should
contact the seller to determine if a genuine Lexus replacement airbag was used.

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

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

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

e Lexus Certified Pre-owned vehicles (CPO) 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.
« — |f the customer determines the vehicle's airbag is counterfeit and requires replacement, the repair will be at
customer expense.

e 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 Lexus Original Equipment (OE) Airbag from a Lexus dealer will ensure that the right airbag
designed for the vehicle is used.

e Always demand thal the repair facility provide proof that the right airbag is being used.

e Never buy an airbag with a questionable history (e.g., airbags sold on the internet).

e = Ifthe price is too good to be true, it is probably a counterleit.

The attached Q8.A is also available to respond to any customer questions.

Lexus 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 Lexus Customer Assistance Center at 1-800-255-

3987,

Thank you for your understanding and cooperation.

Attachment

CC: Assistant Area General Managers
Customer Satisfaction Managers
Customer Services Field Managers
Customer Services Operations Managers
District Service and Parts Managers
Field Technical Specialists
Field Product Engineers
Pre-Owned Managers
Vehicle Field Sales Managers