TOYOTA

Toyota Motor Sales, U.5.A.. Inc,
19001 South Wester Avenue
Turrance, CA S050]

(210) 468-1000
To: All Toyota Dealer Principals,
Service Managers, Parts Managers
Subject: Warranty Enhancement Program — ZE/
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 Oi! Consumption

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 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 launched 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. Owner Notification Mailing Date

The 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 oil 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 authorized Toyota dealer to have the engine oil consumption test
performed to determine if they will be eligible for future part replacement once sufficient paris 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 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 repalcement 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.

e The Primary Coverage offers warranty enhancement until 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 Vehicie Limited Warranty or this
warranty enhancement,

Number and Identification of covered Vehicles

There are approximately 1,715,200 vehicles covered by this Warranty Enhancement Program.

Please refer to Warranty Policy Bulletin (Bulletin No. POL14-12) for identification of vehicles covered by
this Warranty Extension.

Warranty Claim Processing Instructions

Please refer to the Warranty Policy Bulletin (Bulletin No. POL14-12) for warranty claim processing
instructions. All parts replaced are subject to warranty parts recovery.

Oil Consumption Testing and Documentation
During the reimbursement phase of this warranty enhancement program, owners may contact your

dealership to have an oil consumption test performed to confirm if their vehicle will be eligible for part
replacement once parts become available for Phase 2.

e Procedures for the Oil Consumption Test can be found in T-SB-0158-14

Please note the above TSB and related Oil Consumption Test Sheet will be required for claim
submission and warranty authorization.

Parts Ordering

As this is an extension of the warranty, most customers will only request reimbursement from TMS for
part replacements. Dealers should not increase their stock of parts. As always, if a customer
experiences the condition described, dealers should conduct appropriate diagnosis and order the
applicable parts.

Refer to Warranty Policy Bulletin POL 14-12 for detailed parts ordering information.

Dealers are requested to only order parts for vehicles experiencing this condition. DO NOT ORDER
FOR STOCK. The parts have been placed on Dealer Ordering Solutions and will be systematically

TOYOTA

Parts Allocation Report

SARE DL bei OH

re Customer Reimbursement
Please refer to the attached owner letter for reimbursement consideration instructions.

Please review this entire package with your Service and Parts staff to familiarize them with the proper step-by-
step procedures required to implement this Warranty Extension.

As part of our dedication to continuous improvement, changes have been incorporated in the production
process to ensure the highest quality products are provided to our customers.

Thank you for your cooperation.

TOYOTA MOTOR SALES, U.S.A., INC.
CP) TOYOTA

Warranty Enhancement Program ~ZE7 (Phase 7 — Reimbursement Only)
Certain 2007-2009 Camry

Certain 2007-2011 Camry Hybrid

Certain 2067-2008 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

BACKGROUND

As part of our continua! efforts to ensure the best in customer satisfaction, Toyota is preparing a Warranty
Enhancement Program to extend warranty coverage to address Excessive Engine Oil Consumption on 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 iC, and Certain 2008-2009
Scion xB, vehicles equipped with a 2AZ engine.

1: _What is th ndition?
Al: in these vehicles, Toyota has received some reports where vehicles may exhibit excessive engine oil
consumption.

Although the Engine is covered by Toyota's New Vehicle Limited Warranty for 5 years or 60,000 miles
(whichever occurs first), we at Toyota care about the customers’ ownership experience. Toyota is now
extending the warranty coverage for parts replacement related to excessive oil consumption’.

*Eligibility for this warranty work is dependent on the results of a dealer performed engine oil
consumption test.

2: What is Te in ?
A2: This Warranty Enhancement Program will be launched in Two Phases due to limited parts avaitability.

At this time, Toyota is currently preparing the necessary parts to implement this Warranty Enhancement
Program, and anticipates it will take several months to build the necessary paris. Therefore, we are
notifying you of the upcoming Warranty Enhancement Program and providing means for you to seek
reimbursement for previous repairs to help minimize any out of pocket costs you may have incurred. If
you believe your vehicle has excessive engine oil consumption, please contact your local authorized
Toyota dealer for diagnosis, and if applicable, warranty work. The dealer will perform an engine oil
consumption test to determine if your vehicle will be eligible for parts replacement once sufficient parts
have been produced.

We will send you a second owner notification letter once sufficient parts have been produced.

2a: Why is T notifying me if there are not sufficient parts t rt warranty work?
A2a: Toyota is notifying you at this time to reimburse you for previous repairs for this condition to
help minimize any out of pocket costs you may have incurred. Additionally, Toyota will be
performing an Engine Oil Consumption test for owners who believe their vehicle is affected by
this condition. The results of the Engine Oil Consumption test will help Toyota quantify the
numberotparts- needec-to-supportthe parts replacement phase-oHthis-program-anc-minimize
delays due to part shorlages.

Q2b: What is involved in the oil consumption test?

A2b: Any authorized Toyota dealership will check the oil level in your vehicle and fill the engine to the
maximum jevel. The dealership will then seal the system and request that you return to the
same dealership in 1100-1300 Miles. Upon return, the dealer will confirm how much oil the
vehicle has consumed. If the quantity consumed is in excess of the amount specified in the
technical service bulletin, your vehicle will be eligible for parts replacement once sufficient parts
are available. We will send a second owner notification once sufficient parts are available and
the dealer can perform parts replacemeni for eligible vehicles.

Note: If there is evidence of tampering with ihe sealed system the test will be void.

Q2c: When does Toyota anticipate the second owner notification letter will be sent?
A2c: Due to current production capacity, Toyota anticipates the second owner notification will

commence in late spring, 2015.

Q2d: is oil consumption normal?

A2d: It is normal for the engine to consume some oil during operation. Oil is used to continually
lubricate and cool internal engine components during operation. Trace amounts of oil are
present in the combustion chamber during the combustion process; therefore a small amount of
oil is consumed during normal operation. By performing an oil consumption test, an authorized
Toyota Dealership will be able to determine whether a vehicle is eligible for parts replacement
under this warranty enhancement program for an excessive Engine Oil Consumption issue.

Q3: __ Which vehicles are covered by this Warranty Enhancement Program?
A3: There are approximately 1,715,200 vehicles covered by this Warranly Extension.

Model Mode! Year Appx. UlO Production Period
Camry Ceriain 2007-2009 964,500 Early October, 2005 through Mid-March, 2009
Camry Hybrid | Certain 2007-2011 172,000 aes pi Early Seplembey
Camry Solara | Certain 2007-2008 | 14,400 Late March, 2006 through Early September,
Corolla Certain 2009 3,900 Early January, 2008 pron Early September,
Corolla Matrix Certain 2009 16,000 ein 2008 mougn Samy Mate),
RAVA4 Certain 2006-2008 323,600 Early September, eo Early August,
Scion tC Certain 2007-2009 142,900 Late February, 2006 through Late July, 2008
Scion xB Certain 2008-2009 77,800 Mid-January, 2007 through Early August, 2008

3a: Are there any other Toyota, Lexus or Scion vehicles covered by this Warrant

Enhancement Program?
A3a: Yes, this program also covers certain 2010-2012 Model Year HS250h vehicles.

Q4: What are the details of this coverage?

A4: — This Warranty Enhancement Program provides a Primary and Secondary coverage extension to the
vehicle's “New Vehicle Limited Warranty” for parts replacement related to Excessive Engine Oil
Consumption. If the condition is verified, warranty work will be performed in accordance with the
applicable Technical Service Bulletin under the terms of this Warranty Enhancement Program.

e The Primary Coverage offers warranty enhancement until 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 firsi.

This coverage is for warranty work performed at an authorized Toyota doater 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
aecident, theit and/or vandalism is not covered by the New Vehicle Limited Warranty or this warranty enhancement.

Q5: __ What should | do if | believe my vehicle has excessive engine oil consumption?
A5: ‘If you believe your vehicle has excessive engine oil consumption, please contact any authorized Toyota

dealer to have an Engine Oil Consumption test performed. If the vehicle is found to be consuming
excess oil, it will be eligible for parls replacement under the terms of this Warranly Enhancement
Program. However, due to a limited quantity of available parts, owners will be asked to wait until they
receive the second owner notification letter to seek warranty work.

Q@Q5a: _What if a dealer performs the engine oil consumption test and my vehicle does not
qualify for warranty work?

A5a: Any authorized Toyota Dealership will perform an engine oil consumption test at no charge to
you to determine if the vehicle is eligible for parts replacement under this warranty
enhancement program. The test will be performed free of charge regardless of the results.

Q5b: _if my vehicle passes the oil consumption test how often can [ have my vehicle re-
checked?

A5b: ‘If the vehicle does not qualify for warranty work based upon the oil consumption test performed
following notification of this Warranty Enhancement Program, one additional oil consumption
test can be requested (free of charge under the Program) after 6 months or 5,000 miles has
lapsed if the vehicle is still within the terms and conditions of the warranty enhancement
program.

Q5c: Will Toyota pay for my oil change?

A5c: No. If your vehicle requires an oi! change (based upon mileage or time) when you request to
have the oil consumption test performed, the cost of the oil change will be your responsibility. If
the vehicle is within the terms of this warranty enhancement program and requires the addition
of oil 1o perform the oil consumption test procedure, it will be provided free of charge.

Q6: Will this condition illuminate a Malfunction Indictor Lamp?

AG: No, if this condition occurs, it will not illuminate a malfunction indicator lamp or set a diagnostic trouble
code.

Q7:___ What if an owner has NOT experienced this condition but would like to have the parts replaced?

A7: — This Warranty Enhancement Program only applies to vehicles that have exhibited the condition
described above. If an owner has not experienced the condition, he/she is asked to apply the warranty
enhancement notification sticker to the Owner's Warranty Information Booklet for future reference.

Q8: _How long wiil the warranty work take?

A8: _ If the condition is present on the vehicle, the warranty work will take approximately 2 days. However,
depending upon the dealer's work schedule, it may be necessary to make the vehicle available for a
longer period of time. A rental vehicle will be provided for the time period necessary to complete the
warranty work.

Q9:_ _ What if a customer has previously paid for repairs on their vehicle?

A9: Owners that have previously paid for repairs to address excessive engine oil consumption should refer
to the owner letter for reimbursement consideration instructions.

Q1Q: What if an owner has additional questions or concerns?

Ai0: Owners with questions or concems are asked to please contact the Toyota Customer Experience
Center at 1-888-270-9371 Monday through Friday, 5:00 am to 6:00 pm, or Saturday 7:00 am to 4:00
pm Pacific Time

WARRANTY ENHANCEMENT NOTIFICATION — ZE7

Re:
Dear Toyota Owner:

At Toyota, we are dedicated to providing vehicles of outstanding quality and value. As part of our continual efforts to
ensure customer satisfaction, Toyota would like to advise you of an enhancement to portions of your Toyota New Vehicle
Limited Warranty. Toyota has received some reports where vehicles may exhibit excessive engine oil consumption.

What should you do?
At this time, Toyota is currently preparing the necessary parts to implement this Warranty Enhancement Program, and

anticipates it will take several months to build the necessary parts. Therefore, we are notifying you of the upcoming
warranty enhancement program and providing means for you to seek reimbursement for previous repairs to help
minimize any out of pocket costs you may have incurred. If you believe your vehicle has excessive engine oil
consumption, please contact your local authorized Toyota dealer. They will perform an engine oil consumption test to
determine if your vehicie will be eligible for warranty work once sufficient parts have been produced.

We will send you a second owner notification letter once sufficient parts have been produced. If you have not
experienced the condition described, there is no action necessary at this time, Please apply the sticker below to
your Owner's Manual Supplement/Warranty & Service Guide Information booklet for future reference.

Warranty Enhancement Program Details

This Warranty Enhancement Program provides a Primary and Secondary
coverage extension to the vehicle’s "New Vehicle Limited Warranty” for
replacement of parts related to Excessive Engine Oil Consumption. If the
condition is verified, warranty work will be performed in accordance with the
applicable Technical Service Bulletin under the terms of this Warranty
Enhancement Prograrn*.

Peel and Stick Label
onto the Owner's
Warranty Information
Booklet

e The Primary Coverage offers warranty enhancement until October 31,
2016, regardless of mileage

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

Please note that this coverage is for warranty work performed at an authorized
Toyota dealer only.

Thia Warrenty Enhancement Programis limited to your specific vehicle whose Vehicle identification Number (VIN) it printed below and is
Subject to the seme terms sad conditons sat forth in the New Veticie Limited Warranty Section of your Owner's Warrenty information booklet,
For exemple, damnege irom abuse, an accident, theft andor vandalism it nod covered by tre Mew Vehicks Limied Warranty or this warranty
enhancerrent.

* Preese see your Toyote dealer for additional details VIN #:
Date of First Use:

If you wauld like to update your vehicle ownership or contact information, please go to www.Toyola.com/#login. You
will need your full 17-digit Vehicle Identification Number (VIN) to input the new information.

If you have previously paid for repair to address an excessive oil consumption condition, please mail a copy of your
repair order, proof-of-payment, and proof-of-ownership to the following address for reimbursement consideration:

Toyota Motor Sales, USA, inc.
Toyota Customer Experience WC10
19001 South Western Avenue
Torrance, CA 90509

*Please refer to the attached Reimbursement Checkiist for required documentation details.
We have sent this notice in the interest of your continued satisfaction with our products.
Sincerely,

Toyota Motor Sales, U.S.A, Inc.