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Toyota Increases Airbag Cutoff Switch Indemnification for Dealers

11 May 1998

Toyota Increases Airbag Cutoff Switch Indemnification for Dealers

    TORRANCE, Calif., May 11 -- In the interest of customer
satisfaction, Toyota Motor Sales, U.S.A. (TMS), Inc., announced today the most
far-reaching legal indemnity coverage in the auto industry to protect Toyota
and Lexus dealers who choose to install Genuine Toyota and Lexus airbag
retrofit on/off switches in customers' vehicles.
    As of January 19, 1998, the National Highway Traffic Safety Administration
(NHTSA) has allowed vehicle owners to have an on/off switch installed in their
vehicles that would disable either the driver or passenger airbag, or both
simultaneously.  NHTSA has determined that there are four "at risk" groups,
and gives only them the authority to have the cutoff switch installed, once
they have completed NHTSA's required forms and received written approval.  The
groups include:
    People who must transport infants in rear-facing infant seats in the front
    passenger seat;
    People who must transport children ages 1-12 in the front passenger seat
    Drivers who cannot change their driving position to maintain 10 inches
     between the center of the steering wheel and the center of their
     breastbone;
    People whose doctors say that, due to a medical condition, the airbag
     poses a risk that outweighs the risk of hitting their head, neck or
     chest in a crash if the airbag is turned off.

    Each on/off retrofit kit is engineered to the same high standards of
quality as other Genuine Toyota and Lexus Parts, and carries the same
warranty.  It is up to the individual dealer, though, to determine whether
they will install or sell the kits.
    The normal Toyota parts indemnification policy provides dealers with
protection in the event of legal action because of alleged parts defects for
an authorized installation of a Genuine Toyota or Lexus on/off switch retrofit
kit.  Toyota stands behind its product warnings and the installation
procedures included in the kit.  Toyota also will grant special indemnity,
providing the customer has the appropriate NHTSA approvals, in excess of a
dealer's own insurance levels for installation of the kit.  The
indemnification coverage extends beyond only the original, NHTSA-approved,
customer, through subsequent owners as well.
    "While this policy will not solve all the liability issues surrounding
this very sensitive issue, we do believe that it will encourage an increased
number of dealers to participate in the program," said Jim Olson, TMS senior
vice president, External Affairs.  "While we believe that only a very small
percentage of our customers will choose to have these switches installed, we
feel that serving their needs is an important part of overall satisfaction."
    Retrofit on/off switch kits are available immediately for newer products
including Avalon, Camry, Corolla, Tercel, RAV4, 4Runner, ES 300, GS 300/400
and RX 300.  Kits for the remaining Toyota and Lexus vehicles will be
available within about two months.
    "We have made these kits available in the interest of customer
satisfaction," Olson added.  "Toyota fully believes, though, that the vast
majority of drivers and passengers are safer, in general, with fully
functional airbag systems."

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