23TB04/23TA04 – Passenger Airbag May Not Deploy as Designed – 2022-2023 Toyota Corolla Cross

SEOCONTENT-START

TOYOTA Toyota Motor North America, Inc. Vehicle Safety & Compliance Liaison Office Mail Stop: W4-2D 6565 Headquarters Drive Plano, TX 75024 May 30, 2023 NONCOMPLIANCE INFORMATION REPORT 1. Vehicle Manufacturer Name: Mazda Toyota Manufacturing U.S.A., Inc [“MTMUS”] 9000 Greenbriar Parkway, NW, Madison, AL 35756 Affiliated U.S. Sales Company Toyota Motor North America, [“TMNA”] 6565 Headquarters Drive, Plano, TX 75024 Manufacturer of the Instrument Panel Safety Pad Assembly Vuteq -Alabama 7036 Greenbrier Parkway, NW, Madison, AL 35756 Phone: +1(256) 274-3308 Country of Origin: United States 2. Identification of Involved Vehicles: Based on production records, we have determined the involved vehicle population to be the vehicles listed in the table below. Make/Car Line Model Year Manufacturer Production Period Toyota/Corolla Cross 2022 – 2023 MTMUS September 1, 2021 through May 4, 2023 Applicability Part Number Part Name Component Description MY2022-2023 Toyota/Corolla Cross 55400-0A050 Pad Assy, Instrument Panel Safety Instrument Panel Assembly Note: (1) Although the involved vehicles are within the above production period range, not all vehicles in this range were sold in the U.S. (2) This issue only involves the subject vehicles which were assembled with instrument panel assemblies produced by a specific supplier during a specific production period. Other Toyota and Lexus vehicles sold in the U.S. are equipped with instrument panels from a different supplier or were produced outside of the scope of the issue described below. 3. Total Number of Vehicles Involved: Total: 96,007 4. Percentage of Vehicles Estimated to Actually Contain the Noncompliance: 1.77%. This estimate is based on production records of 2,029 suspect parts out of the total vehicles produced for the U.S. and other countries that could contain the part affected by the condition described below in Section 5. 5. Description of Noncompliance: The subject vehicles are equipped with an instrument panel that contains an airbag at the right front passenger’s seating position. The instrument panel is designed to contain a perforation that will open during front passenger airbag deployment. Due to incorrectly followed production work instructions in the instrument panel milling process at a certain supplier, there is a possibility that the instrument panel was produced without the perforation. This could result in an airbag deployment in a manner other than as designed in the event of a crash of the type that would cause deployment. As a result, the vehicles may not comply with certain requirements of FMVSS No. 208 S14.4. This could result in an increased risk of injury during a crash. 6. Test Results and Other Information: In Early May 2023, a production plant member observed that a portion of the instrument panel manufacturing process had been performed out of sequence. After further investigation by the supplier, it was found that some panels were missing the perforation for the front passenger airbag on the underside of the panel, because certain steps of the production work process for milling the perforation had inadvertently been skipped. Toyota conducted testing to determine the effect of no perforation in the instrument panel on airbag opening. The results of the test indicated that the airbag deployed in a manner that was different than the intended design. Based on Toyota’s engineering judgement, Toyota decided that a noncompliance with FMVSS could not be ruled out. As a result, on May 29, 2023, Toyota determined that the involved vehicles may not meet certain requirements of FMVSS No. 208, paragraph S14.4. 7. Description of Corrective Repair Action: All known owners of the involved vehicles will be notified via first class mail to return their vehicles to a Toyota dealer. For all involved vehicles, Toyota dealers will inspect, and, if necessary, replace the instrument panel at no cost to owners. Reimbursement Plan for pre-notification remedies As the owner notification letters will be mailed out well within the active period of the Toyota New Vehicle Limited Warranty (“Warranty”), all involved vehicle owners for this recall would have been provided a repair at no cost under Toyota’s Warranty. 8. Recall Schedule: Notifications to owners of the affected vehicles will occur by July 29, 2023. A copy of the draft owner notification letter(s) will be submitted as soon as available. 9. Distributor/Dealer Notification Schedule: Notifications to distributors/dealers will be sent by May 30, 2023. Copies of dealer communications will be submitted as they are issued. 10. Manufacturer’s Campaign Number: Interim/Remedy: 23TB04/23TA04

**************************************************************************************************************

© 2023 Toyota Motor Sales, USA Toyota Motor Sales, USA, Inc. 6565 Headquarters Drive Plano, TX 75024 (469) 292-4000 Original Publication Date: May 30, 2023 To: All Toyota Dealer Principals, General Managers, Service Managers, and Parts Managers SAFETY (NONCOMPLIANCE) RECALL 23TA04 (Interim Notice 23TB04) Certain 2022-2023 Model Year Corolla Cross Passenger Airbag May Not Deploy as Designed Model / Years Production Period Approximate Total Vehicles Approximate Stop Sale Dealer Inventory 2022-2023 Corolla Cross Early September 2022 – Early May 2023 96,000 200 STOP! DO NOT SELL NEW VEHICLES IN DEALER INVENTORY. Refer to Dealer Inventory Procedures section for more details. On May 30, 2023, Toyota filed a Noncompliance Information Report (NCIR) with the National Highway Traffic Safety Administration (NHTSA) informing the agency of our intent to conduct a voluntary Safety (Noncompliance) Recall on certain 2022-2023 model year Corolla Cross vehicles. Condition The front passenger airbag in the subject vehicles may not deploy as designed due to a manufacturing error in the instrument panel where the airbag is located. As a result, the vehicles may not meet certain federal requirements, and there could be an increased risk of injury in a crash. Remedy Toyota is currently preparing the remedy for this issue. When the remedy is available, Toyota dealers will inspect, and if necessary, replace the instrument panel FREE OF CHARGE. Until the vehicle is inspected and the remedy is performed, if necessary, Toyota recommends that no one sit in the front passenger seat of an involved vehicle. Covered Vehicles There are approximately 96,000 vehicles covered by this Safety (Noncompliance) Recall. Approximately 6,400 vehicles involved in this Safety Recall were distributed to Puerto Rico. Owner Letter Mailing Date Toyota will notify owners by late July 2023. Toyota makes significant effort to obtain current customer name and address information from each state through industry resources when mailing owner letters. In the event your dealership receives a notice for a vehicle that was sold prior to the Safety (Noncompliance) Recall announcement, it is the dealership’s responsibility to forward the owner letter to the customer who purchased the vehicle. Please note that only owners of the covered vehicles will be notified. If you are contacted by an owner who has not yet received a notification, please verify eligibility by confirming through TIS prior to performing repairs. Dealers should perform the repair as outlined in the Technical Instructions found on TIS. S a f e t y ( N o n c o m p l i a n c e ) R e c a l l 2 3 T A 0 4 ( I n t e r i m 2 3 T B 0 4 ) – P a g e | 2 © 2023 Toyota Motor Sales, USA Dealer Inventory Procedures New Vehicles in Dealership Inventory There are approximately 200 vehicles in new dealer inventory as of May 26, 2023. Under Title 49, Section 30112 of the United States Code, a dealer cannot sell, offer for sale, or introduce or deliver for introduction in interstate commerce a new motor vehicle when it is aware that the vehicle does not comply with an applicable Federal Motor Vehicle Safety Standard or contains a defect related to motor vehicle safety. Further, 49 Code of Federal Regulations §577.13 requires us to provide the following advisory: It is a violation of Federal law for a dealer to deliver a new motor vehicle or any new or used item of motor vehicle equipment (including a tire) covered by this notification under a sale or lease until the defect or noncompliance is remedied. Toyota reimburses dealers for flooring costs associated with new vehicles held in dealership inventory until the recall remedy becomes available. Toyota provides these flooring reimbursements at 60-day intervals. Toyota reserves the right to withhold or charge-back any flooring reimbursement funds that may have been paid to the dealer if it determines that a new vehicle subject to a safety recall was sold without first being remedied. Vehicle Safety Recall completion should always be verified through TIS. We request your assistance to ensure involved vehicles are identified and not delivered prior to performing the remedy. NOTE: • New vehicles in dealer inventory subject to a Safety Recall must be remedied before delivery into commerce under a sale or lease. Dealer-to-dealer trades as well as vehicle sales between dealers should not be made until a vehicle is remedied. • Dealers can identify if any of their new and used inventory has any open campaigns in the Vehicle Inventory Summary available in Dealer Daily (Non SET and GST dealers: https://dealerdaily.toyota.com/). The Vehicle Inventory Summary may take up to 4 hours to populate information for newly launched campaigns. S a f e t y R e c a l l 2 3 T A 0 4 ( I n t e r i m 2 3 T B 0 4 ) – D – P a g e | 3 © 2023 Toyota Motor Sales, USA Inspection Reminder Mirror Hang Tags for Covered Vehicles in New Dealer Stock To easily recognize vehicles involved in this Safety (Noncompliance) Recall, each dealership should utilize Inspection Reminder Hang Tags. Inside the vehicle’s glove box are stickers containing the VIN. Apply one of these stickers to the hang tag and install the hang tag in the vehicle. A sample copy of the Inspection Reminder Hang Tag has been included for your reference. NOTE: Dealerships can order hang tags from the Material Distribution Center (MDC). Part Number Description Quantity 00411-140003 Inspection Mirror Hang Tag 25 Per Pack S a f e t y ( N o n c o m p l i a n c e ) R e c a l l 2 3 T A 0 4 ( I n t e r i m 2 3 T B 0 4 ) – P a g e | 4 © 2023 Toyota Motor Sales, USA Pre-Owned Vehicles in Dealer Inventory Toyota typically requests that dealers NOT deliver any pre-owned vehicles in dealer inventory that are covered by a Safety (Noncompliance) Recall unless the defect has been remedied. In this case, until remedy parts are available, delivery of a pre-owned vehicle is acceptable if disclosed to the customer that the vehicle is involved in this Safety (Noncompliance) Recall and that the remedy is currently being prepared by Toyota. Toyota expects dealers to use the attached Customer Contact and Vehicle Disclosure Form to obtain vehicle buyer information. Dealers are expected to provide a copy of the completed form, along with the most current FAQ, to the vehicle buyer. Toyota and the dealer may use this information to contact the customer when the remedy becomes available. Keep the completed form on file at the dealership and send a copy to quality_compliance@toyota.com. In the subject line of the email, state “Disclosure Form 23TA04/23TB04” and include the VIN. NOTE: Dealers can identify if any of their new and used inventory has any open campaigns in the Vehicle Inventory Summary available in Dealer Daily (Non SET and GST dealers: https://dealerdaily.toyota.com/). The Vehicle Inventory Summary may take up to 4 hours to populate information for newly launched campaigns. Toyota Certified Used Vehicle (TCUV) The TCUV policy prohibits the certification of any vehicle with an outstanding Safety Recall, Special Service Campaign, or Limited Service Campaign. Thus, no affected units are to be designated, sold, or delivered as a TCUV until all applicable Safety Recalls, Special Service Campaigns, and Limited Service Campaigns have been completed on that vehicle. Toyota Rent-A-Car (TRAC) & Service Loaners Toyota requests that dealers remove all TRAC and Service Loaner vehicles from service that are covered by a Safety Recall unless the defect has been remedied. S a f e t y R e c a l l 2 3 T A 0 4 ( I n t e r i m 2 3 T B 0 4 ) – D – P a g e | 5 © 2023 Toyota Motor Sales, USA Customer Handling, Parts Ordering, and Remedy Procedures Customer Contacts Customers who receive the owner letter may contact your dealership with questions regarding the letter and/or the Safety (Noncompliance) Recall. Please welcome them to your dealership and answer any questions that they may have. A Q&A is provided to assure a consistent message is communicated. Customers with additional questions or concerns are asked to please contact the Toyota Brand Engagement Center (1-888-270-9371) – Monday through Friday, 8:00 am to 8:00 pm, Saturday 9:00 am to 7:00 pm Eastern Time. Head Unit Notifications Head unit notifications are electronic messages that are displayed in the vehicle’s audio system screen. Customers who receive head unit notification regarding this Safety (Noncompliance) Recall are requested to schedule an appointment with their authorized dealer to have this Safety Recall completed. When these messages are received by the vehicle’s Data Communication Module, the head unit will display a pop-up prompt stating that the vehicle has a new Safety (Noncompliance) Recall. The prompt will contain options to ‘Snooze’ or to ‘View’ the message. If a customer chooses ‘Snooze’, the message will continue to reappear every 20 minutes until the customer chooses ‘View’. If a customer views and then closes the message, the message will be available in the Notification App if the customer chooses to review it again. If the vehicle’s completion status remains incomplete for a period of 90 days from the message being viewed, the head unit may display a renotification pop-up prompt as an additional reminder to the customer to have this Safety (Noncompliance) Recall completed. The message will completely clear from the vehicle once the following conditions are met: The Safety (Noncompliance) Recall is completed, the dealer has filed a claim, and the claim is approved by Toyota. Then the message will be cleared at the next clearing cycle, which currently happens daily. Owners who receive a head unit notification after having this Safety (Noncompliance) Recall completed can be advised to ignore the message. Owners with additional concerns can be directed to the Toyota Brand Engagement Center (1-888-270-9371) – Monday through Friday, 8:00 am to 8:00 pm, Saturday 9:00 am to 7:00 pm Eastern Time. Salvage Title Vehicles Every attempt should be made to complete an open Safety Recall when circumstances permit, unless noted otherwise in the Safety Recall dealer letter. For complete details on this policy, refer to Toyota Warranty Policy 4.17, “What Is Not Covered by The Toyota New Vehicle Limited Warranty”. Media Contacts It is imperative that all media contacts (local and national) receive a consistent message. In this regard, all media contacts must be directed to Joshua Burns (469) 292-6449 in Toyota Corporate Communications. Please do not provide this number to customers. Please provide this contact only to media. S a f e t y ( N o n c o m p l i a n c e ) R e c a l l 2 3 T A 0 4 ( I n t e r i m 2 3 T B 0 4 ) – P a g e | 6 © 2023 Toyota Motor Sales, USA Warranty Reimbursement Procedures Loaner Vehicle or Alternative Transportation Reimbursement Procedure Until the vehicle is inspected and the remedy is performed, if necessary, Toyota recommends that a person not sit in the front passenger seat. If this is not feasible for a customer, a loaner vehicle or alternative transportation through Toyota Rent-A-CAR (TRAC) can be claimed for $42 per day. Op Code Description TBD Vehicle Rental 1-30 Days NOTE: • Rental invoice MUST be attached to all rental claims. These claims may be subject to debit if rental invoice is not attached. • Rentals that exceed the maximum allowable daily rate will require DSPM authorization per the Toyota Transportation Assistance Policy (TTAP). • Dealers will be allowed to file these Op Codes up to 90 days after the final phase has launched into remedy. After that time, no claims for alternative transportation reimbursement will be accepted. S a f e t y R e c a l l 2 3 T A 0 4 ( I n t e r i m 2 3 T B 0 4 ) – D – P a g e | 7 © 2023 Toyota Motor Sales, USA Campaign Designation / Phase Decoder 2319 = 201920 = 202021 = 202122 = 202223 = 2023Etc…Year Campaignis Launched23TB04TT = ToyotaL = LexusVehicle MakeBA = Safety Recall RemedyB = Safety Recall InterimC = Special Service CampaignD = Limited Service CampaignE = Customer Support ProgramF = Emissions Recall(May use other characters in unique cases)Field Action Category and Phase0401 = 1st Field Action of the year02 = 2nd Field Action of the year03 = 3rd Field Action of the year(The sequence is unique for each Field Action category)(May use other characters in unique cases)Field Action Sequence Examples: 19TA01 = Launched in 2019, Toyota, Safety Recall Remedy Phase, 1st Safety Recall Launched in 2019 20TC02 = Launched in 2020, Special Service Campaign, 2nd Special Service Campaign Launched in 2020 21TE05 = Launched in 2021, Customer Support Program, 5th Customer Support Program Launched in 2021 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 Safety (Noncompliance) Recall. Thank you for your cooperation. TOYOTA MOTOR SALES, U.S.A., INC. FAQ Page 1 of 1 © 2023 Toyota Motor Sales, USA SAFETY (NONCOMPLIANCE) RECALL 23TA04 (Interim Notice 23TB04) Certain 2022 -2023 Model Year Corolla Cross Passenger Airbag May Not Deploy as Designed Frequently Asked Questions Original Publication Date: May 30, 2023 Q1: What is the condition? A1: The front passenger airbag in the subject vehicles may not deploy as designed due to a manufacturing error in the instrument panel where the airbag is located. As a result, the vehicles may not meet certain federal requirements, and there could be an increased risk of injury in a crash. Q2: What is Toyota going to do? A2: Toyota is currently preparing the remedy for this issue. When the remedy is available, Toyota dealers will inspect, and if necessary, replace the instrument panel FREE OF CHARGE. Q3: When will the remedy become available? A3: Toyota is currently preparing the parts and repair instructions for the remedy. At this time, Toyota estimates that the remedy can be available in June 2023. Q4: What should you do? A4: Until the vehicle is inspected and the remedy is performed, if necessary, Toyota recommends that no one sit in the front passenger seat. Please contact your dealer for assistance if this arrangement is not suitable for you while we prepare the remedy. Q5: Which and how many vehicles are covered by this Safety (Noncompliance) Recall? A5: There are approximately 96,000 vehicles covered by this Safety Recall. Approximately 6,400 vehicles involved in this Safety Recall were distributed to Puerto Rico. Model Name Model Year Production Period Corolla Cross 2022-2023 Early September 2022 – Early May 2023 Q3a: Are there any other Toyota vehicles covered by this Safety Recall in the U.S.? A3a: No, there are no other Toyota vehicles covered by this Safety Recall. Q6: How does Toyota obtain my mailing information? A6: Toyota uses an industry provider who works with each state’s Department of Motor Vehicles (DMV) to receive registration or title information, based upon the DMV records. Please make sure your registration or title information is correct. Q7: What if I have additional questions or concerns? A7: If you have additional questions or concerns, please contact the Toyota Brand Engagement Center at 1-888-270-9371 Monday through Friday, 8:00 am to 8:00 pm, Saturday 9:00 am to 7:00 pm Eastern Time. © 2023 Toyota Motor Sales, USA TOYOTA Toyota Motor Sales, USA, Inc. 6565 Headquarters Drive Plano, TX 75024 (469) 292-4000 CUSTOMER CONTACT & VEHICLE DISCLOSURE FORM This form is not applicable for new vehicles in dealership inventory and TCUV units. This vehicle is involved in a Safety Recall. At this time, remedy parts are not available and the remedy has NOT been performed. I understand that the vehicle will need to be returned to an authorized Toyota dealer to have the remedy performed at NO CHARGE when the remedy is available. Customer Signature Toyota recommends that you register with the Toyota Owners Community at http://www.toyota.com/owners/ and regularly check recall applicability using www.toyota.com/recall or www.safercar.gov. You will need to input your 17-digit Vehicle Identification Number (VIN). Model Model Year Customer Information Customer Name Customer Email Customer Address Home Phone # Mobile Phone # Date Please provide this information so that Toyota or your dealer can notify you when the remedy becomes available. This information will only be used for campaign communications. If you’d like to update your preferred contact information in the future, visit www.toyota.com/ownersupdate or contact us at 1-888-270-9371. Dealer Information Dealer Name/Address Dealer Code Dealer Phone Number Dealer Staff Name Dealer Staff Signature VIN Campaign Code

**************************************************************************************************************

OMB Control No.: 2127-0004 Part 573 Safety Recall Report 23V-384 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Toyota Motor Engineering & Manufacturing Submission Date : MAY 30, 2023 NHTSA Recall No. : 23V-384 Manufacturer Recall No. : See attached report Manufacturer Information : Manufacturer Name : Toyota Motor Engineering & Manufacturing Address : 6565 Headquarters Drive Plano TX 75024 Company phone : 1-800-331-4331 Population : Number of potentially involved : 96,007 Estimated percentage with defect : 2 % Vehicle Information : Vehicle 1 : 2022-2023 Toyota Corolla Cross Vehicle Type : Body Style : Power Train : NR Descriptive Information : (1) Although the involved vehicles are within the above production period range, not all vehicles in this range were sold in the U.S. (2) This issue only involves the subject vehicles which were assembled with instrument panel assemblies produced by a specific supplier during a specific production period. Other Toyota and Lexus vehicles sold in the U.S. are equipped with instrument panels from a different supplier or were produced outside of the scope of the issue described below. Note: Toyota estimates the percentage of involved vehicles with the defect to be 1.77%. This estimate is based on production records of 2,029 suspect parts out of the total vehicles produced for the U.S. and other countries that could contain the part affected by the condition described below in Section 5. Production Dates : SEP 01, 2021 – MAY 04, 2023 VIN Range 1 : Begin : NR End : NR Not sequential Part 573 Safety Recall Report 23V-384 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 Description of Noncompliance : Description of the Noncompliance : The subject vehicles are equipped with an instrument panel that contains an airbag at the right front passenger’s seating position. The instrument panel is designed to contain a perforation that will open during front passenger airbag deployment. Due to incorrectly followed production work instructions in the instrument panel milling process at a certain supplier, there is a possibility that the instrument panel was produced without the perforation. This could result in an airbag deployment in a manner other than as designed in the event of a crash of the type that would cause deployment. As a result, the vehicles may not comply with certain requirements of FMVSS No. 208 S14.4. This could result in an increased risk of injury during a crash. FMVSS 1 : 208 – Occupant crash protection FMVSS 2 : NR Description of the Safety Risk : This could result in an airbag deployment in a manner other than as designed in the event of a crash of the type that would cause deployment. As a result, the vehicles may not comply with certain requirements of FMVSS No. 208 S14.4. This could result in an increased risk of injury during a crash. Description of the Cause : NR Identification of Any Warning that can Occur : NR Involved Components : Component Name 1 : Pad Assy, Instrument Panel Safety Component Description : Instrument Panel Assembly Component Part Number : 55400-0A050 Supplier Identification : Component Manufacturer Name : Vuteq – Alabama Address : 7036 Greenbrier Parkway, NW Madison Alabama 35756 Country : United States Part 573 Safety Recall Report 23V-384 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 Chronology : In Early May 2023, a production plant member observed that a portion of the instrument panel manufacturing process had been performed out of sequence. After further investigation by the supplier, it was found that some panels were missing the perforation for the front passenger airbag on the underside of the panel, because certain steps of the production work process for milling the perforation had inadvertently been skipped. Toyota conducted testing to determine the effect of no perforation in the instrument panel on airbag opening. The results of the test indicated that the airbag deployed in a manner that was different than the intended design. Based on Toyota’s engineering judgement, Toyota decided that a noncompliance with FMVSS could not be ruled out. As a result, on May 29, 2023, Toyota determined that the involved vehicles may not meet certain requirements of FMVSS No. 208, paragraph S14.4. Description of Remedy : Description of Remedy Program : All known owners of the involved vehicles will be notified via first class mail to return their vehicles to a Toyota dealer. For all involved vehicles, Toyota dealers will inspect, and, if necessary, replace the instrument panel at no cost to owners. As the owner notification letters will be mailed out well within the active period of the Toyota New Vehicle Limited Warranty (“Warranty”), all involved vehicle owners for this recall would have been provided a repair at no cost under Toyota’s Warranty. How Remedy Component Differs from Recalled Component : NR Identify How/When Recall Condition was Corrected in Production : NR Recall Schedule : Description of Recall Schedule : Notifications to owners of the affected vehicles will occur by July 29, 2023. A copy of the draft owner notification letter(s) will be submitted as soon as available. Notifications to distributors/dealers will be sent by May 30, 2023. Copies of dealer communications will be submitted as they are issued. Planned Dealer Notification Date : MAY 30, 2023 – MAY 30, 2023 Planned Owner Notification Date : JUL 10, 2023 – JUL 29, 2023 * NR – Not Reported

**************************************************************************************************************

**************************************************************************************************************

**************************************************************************************************************

**************************************************************************************************************

SEOCONTENT-END