July 29, 2015

To: Lexus Area General Managers
From: Don Fordiani, National Field and Dealer Operations Manager
Subject: Warranty Enhancement Program - ZLD

Phase 2 & 3 - Part Replacement for Certain Models

2007 - 2008 Model Year ES 350

2003 - 2008 Model Year GX 470

2006 - 2008 Model Year iS 250/350

2007 Model Year LS 460

2004 - 2006 Model Year RX 330

2007 - 2009 Model Year RX 350

2005 - 2008 Model Year RX 400h

Extension of Warranty Coverage for Cracked and/or Sticky/Melting Dashboards
(Instrument Panels) as a Result of Heat or Humidity

In our continuing efforts to ensure the best in customer satisfaction, Lexus announced a Warranty
Enhancement Program (the “Program’). This Program extends the warranty coverage for repairs related to
cracked and/or sticky/melting Dashboards (Instrument Panels) as a result of heat or humidity on 2007-
2008 model year ES 350, 2003-2008 model year GX 470, 2006-2008 mode! year |S 250/350,
2007 model year LS 460, 2004-2006 model year RX 330, 2007-2009 model year RX 350, and
2005-2008 model year RX 400h vehicles.

NOTE: The same Warranty Enhancement Program coverage described herein is also applicable to
2006 - 2008 Model Year IS 250/350 and 2007 Model Year LS 460 vehicles for cracked and/or
sticky/metting front and rear interior door panels as a result of heat or humidity.

In mid-December, 2014, Lexus announced the reimbursement phase of this Program. Since prior to that
announcement, Lexus has been diligently making parts preparations lor the parts replacement phase of this
Program Due to the age, volume, and breadth of the covered vehicles subject to the Program and the size
and complexity of dashboard manulacturing, Lexus will be launching the part replacement portion of this
Program in several phases, please refer to the table below for part replacement model phasing.

~~ Phase - ~~ Model Description Current Mailing |
Schedule |
1 All Reimbursement Mid-December, 2014
2 ES 350. Late May, 2015
3 RX 330/350/450h and GX 470 Part Replacement Late July, 2015
4 IS 250/350 and LS 460 August, 2015

Although Lexus is increasing production levels, it is diflicull to predict customer demand and where parts need to be
shipped to support customer demand. It is important that dealerships explain to customers that there still may be a
period of time the customer will need to wait belore part replacement can be perlormed. Please be sure to take this into
consideration when performing customer scheduling

+ . .

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

Dealer and Owner Notification Letter Mailing Date
Lexus will notify its dealers with regard to Phase 3 of this Program on July 30, 2015

The first owner notification letter was sent in mid-December, 2014 advising owners thal they could seek
reimbursement consideration for previous repair costs for cracked and/or sticky/melting dashboards, and if
applicable front and rear interior door panels, as a result of hear or humidity. A sample copy of the owner
notification letter is enclosed for your reference

Lexus will now begin notilying owners regarding the part replacement phase of this Program in accordance
with the table below. This mailing schedule is based upon the part build rate and anticipated quantities
required for each model. A sample copy of the owner notification letter is enclosed for your reference

Phase | Model | Tentative Owner Letter Start Planned Duration of Owner Letter Mailing
Timing
2 ES 350. Late May, 2015 2 Month Mailing
RX 6 Month Mailing
3 [ex Late July, 2015 4 Month Mailing
4 IS/LS August, 2015 TBD

Please Note: Dashboara’s and! front and! rear interior door panels can become cracked and/or sticky/melted
over time for a number of different reasons and under a number of dierent circumstances. Ifthe Dashboard
and/or front or rear interior door panel has become cracked and/or sticky/melled as a result of heat or
humidty, the repair will be performed at no charge as soon as parts become available

Warranty Enhancement Program Details

This Warranty Enhancement Program provides a Primary and Secondary coverage for a covered vehicle's
New Vehicle Limited Warranty” as it applies to the Dashboard. The specific condition covered by this
Program is any cracked and/or sticky/melted Dashboard as a result of heat or humidity for any covered
vehicle. lf the conditior is verified, the repair will be performed in accordance with the applicable TSB under
the terms of this Warranty Enhancement Program.

NOTE: The same Warranty Enhancement Program coverage described herein is also applicable to 2006 -
2008 Model Year IS 250/350 and 2007 Model Year LS 460 vehicles for cracked and/or sticky/meting
front and rear interior door panels as @ result of heat or humialty.

e The Primary Coverage offers warranty enhancement until May 31, 2017, reaardless of mileage or date of
first use of the vehicle.

n

e Secondary Coverage supplements the Primary Coverage for some owners by offering the warranty
enhancement described herein for 10 years from the date of first use of the vehicle, regardless of
mileage. For instance, if you own a 2009 RX 350 that was first used on January 1, 2010, you are
entitled to the warranty enhancement through January 1, 2020.

Please note that this coverage is for warranty repair performed at an authorized Lexus dealer only A
maximum of one dashboard replacement can be performed, if eligible, under this Warranty Enhancement
Program, Likewise, a-maximum of one replacement for each front and rear interior door panel for 2006-

2008 Model Year IS 250/350 and 2007 Model Year LS 460 vehicles can be performed, if eligible,

under this Warranty Enhancement Program

This Warranty Enhancement Program is subject to the same terms, conditions, and limitations set forth in the
New Vehicle Limited Warranty Section of the Owner's Warranty Information booklet, with the exception of
the warranty enhancement coverage lor this specific condition. For example, damage form abuse, accident,
theft, and/or vandalism is not covered by the New Vehicle Limited Warranty or this warranty enhancement
To the extent your New Vehicle Limited Warranty has expired, it is being extended only as to the specific
condition and parts identified above, subject to the terms, conditions, and limitations in that Warranty.

Number of Vehicles Covered
There are approximately 11 million vehicles covered by this Warranty Enhancement Program. Please verily
coverage by confirming through TIS.

Please review this entire package with your associates to familiarize them with the proper procedures to
implement this warranty enhancement.

Thank you for your continued support and cooperation

Attachments

Ce 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