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Toyota Washington, DC

Yoshi Inaba

July 6, 2009

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Agenda

• Overview

• Key Issues

• Discussion

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Mission:

Support Toyota Business

Goal

Role

• Promote Toyota's Agenda

• Protect our interests

Provide Information & analysis Make recommendations

Shape policies & regulations for One voice decisions

• Maintain receptive environment to grow our business

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Work with TMC and affiliates



Promote Toyota's interests



Inform, Advise, Coordinate



Formulate one voice policy positions

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External Resources



trade associations

• think tanks

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AUTO ALLIANCE



political organizations

DRIVING rNNOVATION~



consultants & lawyers

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WiFT-S for Toyota & Industry

• One National Program

• "Card Check" - legislation delayed

• Scrappage bill passed

• No FFV Mandate (yet)

• Vehicles not in Climate legislation

• Eavorable recall outcomes

• Secured safety rulemaking favorable to Toyota

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Key Safety Issues

Impact on "Quality"

• Number of UIO (units in operation) increasing

• NHTSA is testing more vehicles under NeAP

• Nov 2000 "TREAD Act" requires new, more intensive, and regular reporting

• A 5-day notification is required when recall determinations are made

• New strong civil and criminal penalties were implemented • e.g. Ford/Firestone/rollover issue

• NHTSA is more sensitive to public/congressional criticism

Resulting in more Investigations, and more forced recalls

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Key Safety Issues

• FMVSS 305 Compliance/Hybrid Sales

• New NCAP Test Protocol

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oblique

• "Sudden Acceleration" on ES/Camry, Tacoma, LS, etc.

• Cargo Carrying Capacity/FMVSS 110 Compliance

• Prius Headlamps Investigation - Class Action

• "Quiet Cars" (Hybrids, EVs, FCHVs)

• Kids in Cars

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Wins for Toyota - Safety Group

• Rulemaking

~ FMVSS 216 Roof Crush Rule - reduced PL and design burdens ~ FMVSS 305 Electric Shock Rule - delayed final rule

~ FMVSS 214 Side Impact Rule - Added lead time and phase in; Saved -$124M/50,000 man hours

);;> FMVSS 206 door locks - delayed rule; saved -$11 M for Sienna

• Defects

~ Sienna Rear Hatch wI no "defect"; Closed Tacoma DP issue; Avoided Investigation on Tacoma Rust

>- FMVSS 110 NCIR labeling recall- No civil penalties, Saved $20M+ in buybacks

);;> Negotiated "equipment" recall on Camry/ES re: SA, saved $1 OOM+, wi no defect found

• Other

~ Secured Tacoma, Scion XB, Corolla, '10 Prius 'Top Safety Picks' at IIHS

~ Delay of New NCAP program - 1000s of man hours in redesign for 2010 MY

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