December 15, 2014

To:

From:

Subject:

Lexus Area General Managers
Don Ferdiani, National Field and Dealer Operations Manager
Warranty Enhancement Program - ZLE (Phase 1 - Reimbursement Only)

Certain 2010 - 2012 HS 250h Vehicles
Extension of Warranty Coverage for 2AZ Engine Oil Consumption

As part of our continual efforts to ensure the best in customer satisfaction, Lexus is preparing a Warranty
Enhancement Program to extend warranty coverage to address customer complaints of Excessive Engine

Oil Consumption on certain 2010 - 2012 HS 250h vehicles equipped with a 2AZ engine

This warranty Enhancement Program will be launched in two phases due to current part production capacity
limitations. Initially, Lexus will intorm owners that they may seek reimbursement consideration for previous
repairs to address excessive engine oil consumption. Once sufficient parts are produced, Lexus will send a
second owner nolification letter to customers informing them they may seek part replacement if their vehicle
has excessive engine oil consumption

Phase Description Tentative Schedule
1 Reimbursement Only ’ Mid-December, 7014
2 Part Replacement for Excessive Engine Oil Consumption Late Spring, 2015

The following important information is provided to advise you and your associates of the program notification
schedule and the degree of your involvement. Additionally, an FAQ covering details of this Warranty
Enhancement Program is enclosed for your reference

Dealer Letter Mailing Date
The attached Dealer Letter will be e-mailed to all Lexus dealers on December 16, 2014.

Owner Notification Mailing Date
The Phase | owner notification will commence in mid-December, 2014 and will be mailed over one month.
We have attached-e-sample ownerletlerlor-your reference _—_——- “

The first owner notilication letter will advise customers that they may seek reimbursement consideration for
previous repair costs related to excessive engine oil consumption. The letter will also inform customers thal
Lexus is unable fo support part replacement for Engine Oil Consumption at this time. Additionally, owners
will be advised that if they believe their vehicle has excessive engine oil consumption, they can contact an
authorized Lexus dealer to have an engine ofl consumption test performed to determine if they will be eligible
for future part replacement once sufficient parts are available. Once sufficient parts are produced, Lexus will
send a second owner notification informing customers they may seek part replacement if the vehicle is
exhibiting excessive engine oil consumption.

Warranty Enhancement Program Details

This Warranty Enhancement Program provides a Primary and Secondary coverage extension to the vehicle's "New
Vehicle Limited Warranty” for part replacement related to Excessive Engine Oil Consumption. If the condition is
verilied, necessary parts will be replaced in accordance with the applicable Technical Service Bulletin under the
terms of this Warranty Enhancement Program

© The Primary Coverage ollers warranty enhancement until October 31, 2016, regardless of mileage.
e Alter the Primary Coverage period ends, the Secondary Coverage is applicable for 10 years from the date
ol first use or 150,000 miles, whichever occurs first.

This coverage ts for warranty work performed at an authorized Lexus dealer only, It is subject to the same terms and
conditions set forth in the New Vehicle Limited Warranty Section of the Owner's Warranty Information booklet. For
example, damage trom abuse, an accident, theft and/or vandalism is not covered by the New Vehicle Limited
Warranty or this warranty enhancement

Number of Vehicles Covered
There are approximately 20,990 2010 - 2012 HS 250h vehicles covered by this Warranty Enhancement

Program.

Please review this entire Warranty Enhancement Package 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 continued support and cooperation.

Attachments

Cc Assistant Area General Managers
Customer Satisfaction Managers
Customer Services Field Managers
Customer Services Operations Managers
District Service and Parts Managers
Field Technica! Specialists
Field Product Engineers
Pre-Owned Managers
Vehicle Field Sales Managers

ta