TOYOTA

PRODUCT SUPPORT DIVISION wire x

Number:
Date: 1246/2014
INTEROFFICE MEMORANDUM _X Action
Retai
To: All Region/Private Distributor General Managers/Vice Presidents = information
From: Bob Waltz,
Group Vice’Presidefif, Product Quality & Service Support

Subject: Warranty Enhancement Program — ZE7 (Phase 1 — Relmbursement Only)

Certain 2007-2009 Camry

Certain 2007-2011 Camry Hybrid

Certain 2007-2008 Camry Solara

Certain 2009 Corolla

Certain 2009 Corolla Matrix

Certain 2006-2008 RAV4

Certain 2007-2009 Scion tC

Certain 2008-2009 Scion xB

Extension of Warranty Coverage for 2AZ Engine Oil Consumption
EE
As part of our continual efforts to ensure the best in customer satisfaction, Toyota is preparing a Warranty
Enhancement Program to extend warranty coverage to address customer complaints of Excessive Engine Oil
Consumption on Certain 2007-2009 Camry, Certain 2007-2011 Camry Hybrid, Certain 2007-2008 Camry
Solara, Certain 2009-2010 Corolla, Certain 2009 Corolla Matrix, Certain 2006-2008 RAV4, Certain 2007-2009
Scion tC, and Certain 2008-2009 Scion xB, vehicles equipped with a 2AZ engine.

This warranty Enhancement Program will be faunched in two phases due to current part production capacity
limitations. Initially, Toyota will inform owners that they may seek reimbursement consideration for previous
repairs to address excessive engine oil consumption. Once sufficient parts are produced, Toyota will send a
second owner notification 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, 2014
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.

1. Dealer Letter Mailing Date
The attached Dealer Letter will be mailed to alt Toyota dealers in mid-December, 2014.

2. Owner Notification Mailing Date

The Phase 1 owner notification will commence in mid-December, 2014 and will be mailed over two
months. We have attached a sample owner letter for your reference.

The first owner notification letter will advise customers that they may seek reimbursement consideration
for previous repair costs related to excessive engine ail consumption. The letter will also inform
customers that Toyota is unable to 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 autherized Toyota dealer to have the engine oil consumption test
performed to determine if they will be eligible for future part replacement once sufficient parts are
available. Once sufficient parts are produced, Toyota will send a second owner notification informing
customers they may seek part replacement if the vehicle is exhibiting excessive engine ail
consumption.

3.

Warranty Enhancement Program ZE7 - R - Page |2

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 verified, necessary parts will be replaced in accordance with the
applicable Technical Service Bulletin under the terms of this Warranty Enhancement Program.

* The Primary Coverage offers warranty enhancement unti! October 31, 2016, regardless of
mileage.

e After the Primary Coverage period ends, the Secondary Coverage is applicable for 10
years from the date of first use or 150,000 miles, whichever occurs first.

This coverage is for warranty work performed at an authorized Toyota 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 from 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 1,715,200 Vehicles covered by this Warranty Enhancement Program.

Region/District Summary Reports

We have enclosed the following Warranty Enhancement Program Summary Reports in the

Region/Private Distributor (PD) Service Manager/Customer Operations Manager/Director of Service

Package:

¢ Region/PD Summary Reports that provides an overview of the entire Region/PD for this Warranty
Enhancement Program.

« District Summary Reports that indicate the number of involved vehicles registered in each
dealership’s primary market area for this Warranty Enhancement Program.

Please note that dealerships will not receive reports, as this is not a Recall or SpecialLimited Service
Campaign.

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.

Enclosures

cc:

Region/Private Distributor Assistant General Managers
Region/Private Distributor Customer Service Operations Managers
Region/Private Distributor Service Managers/Directors/VPs
Region/Private Distributor Parts Managers/Directors/VPs
Region/Private Distributor Customer Services Field Managers
Region/Private Distributor Technicat Services and Training Managers
Region/Private Distributor District Service and/or Parts Managers
Region/Private Distributor Customer Relations Managers
Region/Private Distributor PDC Managers.
Region/Private Distributor Field Technical Specialists

~ Region/Private Distributor Service Training Specialisis ——
Region/Private Distributor Vehicle Operations Managers
Field Product Engineers