Kathy Wachs / Service & Parts Operations

Lexus Customer Services

October 10, 2012

Approved By: Don Fordiani - National Dealer and Field Operations Manager

To: All Lexus Dealers

From: Lexus Customer Services

NHTSA - Consumer Advisory on Counterfeit Airbags
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Recently, Law Enforcement officials apprehended a counterleit Airbag ring in North Carolina. The arrests lead to the
conliscation of over 1,500 counierteit airbags for a variety of manulacturers and vehicle models. Counterfeit airbags are
an industry wide problem and not limited to Lexus.

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

e = 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.

e = 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 = 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.salercar.gov for additional information.

¢ 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.

© Counterteit airbags may have resistors installed to mimic an OEM airbag and prevent the airbag warning light
from remaining tlluminated. 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 verities* 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.

e Customers should always wear seatbelts as they are the primary restraint system in the vehicle; the airbag system
is designed ta 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.

e Purchasing a Lexus Original Equipment (OE) Airbag from a Lexus 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 = Ifthe price is too good to be true, it is probably a countertett.

The attached Q&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.
© vous
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

conliscation of over 1.500 counterieit 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 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 Lexus dealer under warranty, there is
no need to be concerned.

Qi Can Lexus assist the customer with inspecting the airbag assembly?
Al: There is not a method for inspecting for and identitying counterfeit airbag assemblies. While some counterleits
may be obvious, this may not always be the case.

Ola: _ How can customers venity if their replacement airbag was an OEM Lexus replacement?

Ala: _ If 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 Lexus replacement airbag was used.

Qlb: What #a customer purchased a used yehicle and suspects he/she may have a counterfeit airbag(s)7

Alb: — Customer should contact the seller to determine if a genuine Lexus replacement airbag(s) was used.

Ole: Are there any steps customers can take until the airbag authenticity can be verified with the repair
facility?

Alc: 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.

Q2:. 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 identity counterfeit airbags.
However, Lexus has not investigated counterfeit airbags and it is not certain whether they can be identifiable
using these indicators.

Q23; _What are the counterfeit identification indicators in the NHTSA advisory?

A2a: Please refer to the NHTSA consumer advisory which can be found at www.salercar.gov

Q3. Which vehicles are covered by this Consumer Advisory?
A3: Please refer to NHTSA's website for further inlormation. 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.

Q33;_ ts this a Lexus Safety Recall?
A3a: No, this is not a Safety Recall.

Q3b;__/s this issue himited to Lexus vehicles?

A3b: No, this issue affects the entire automotive industry.

4: __lhavea 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 bul may not capture all crashes.
O49: Will this advisory have any effect on Lexus Certified Pre-owned vehicles (CPO)?

A4a: 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.

"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 not a counterfeit?

A5: — Purchasing a Lexus Original Equipment (OE) Airbag from a Lexus 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?

A6é: — Yes, the National Highway Trallic Safety Administration (NHTSA) has published a consumer advisory
regarding counterfeit airbag assemblies. The NHTSA advisory can be found at www.safercar.qov

OQ? Ha counterfeit airbag is identifed who is responsible for the replacement cost?

A:

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

Q8: __What ifan owner has adolitional questions or concems?

A8:

Owners with questions or concerns are asked to please contact the Lexus Customer Assistance Center at
1-800-255-3987 Monday through Friday, 5:00 am to 6:00 pm, or Saturday 7:00 am through 4:00 pm

Pacific Time.