1. Corolla Electric Power Steering PE10-008 16 June, 2010

2. Outline Steering Development Steering Testing and Standards Field Information Clarifying Customer Feedback Explanation of “Wander” or “Drift” Simulation & Comparative Testing Toyota Assessment

3. ’09-10 Corolla Steering Development Based on market research and competitor vehicle benchmarking, Toyota aimed to improve: –Steering feel –Vehicle agility –Ride comfort In dynamic testing, development vehicles compared favorably to other models

4. Developmental Dynamic Safety Testing Confidential Information Redacted

5. Developmental Dynamic Safety Testing Confidential Information Redacted

6. Description of the EPS system System Outline New for the 2009MY Corolla and Matrix as standard equipment Utilizes an electric motor and reduction mechanism to provide assist torque to the steering shaft ECU calculates the appropriate amount of assist to provide to the steering shaft The benefits include improved overall fuel economy

7. Description of the EPS system Design Concept Confidential Information Redacted

8. Steering Testing & Standards Toyota has 3 standards:  Steering effort when slowly operating steering wheel at standstill  Steering effort when quickly operating steering wheel at standstill  Vehicle behavior and steering characteristics before and after EPS fail-safe mode activation Vehicles surpass all standards above Also complies with ECE 79 (Europe) and GB 171675 (China) which specify steering effort for normal driving and when steering assist fails.

9. Steering Effort Criteria Corolla EPS surpasses regulatory requirements for steering effort under power assist failure Criteria & Recommended Values of Steering Effort

10. Field Information VOQ’s - Over 80% of VOQ’s had descriptions of steering “wander” or “drift” Consumer Complaints - A majority of complaints received by Toyota also appear to generally describe a steering “wander” or “drift ” Warranty - A high percentage of claims involve adjustment (such as wheel alignment) rather than parts replacement Field Reports - Majority of reports are not related to “wander” or “drift” Crash Cases - Insufficient information is available on crashes to assess cause, but no defective parts found in those vehicles which were inspected

11. Clarifying Customer Feedback Toyota interviewed 107 customers (all submitted VOQ’s) to understand their complaint of steering “wander” or “drift” 90% described what can be characterized as a vehicle “wander” or “sensitive” steering Toyota engineers inspected and drove 87 of those vehicles In all vehicles, no defect was found in the steering system Steering feel of all vehicles was found to be consistent with design intent and within acceptable production variation with no significant deviation

12. Explanation of “Wander” or “Drift” Based on the design concept, the neutral area steering effort is slightly stiff Vehicle reacts when steering input exceeds the self centering force of the vehicle When self centering force is exceeded, the vehicle moves according to the steering angle Some customers may complain of a delay at this transition point and perceive slightly “stiff” steering

13. Explanation of “Wander” or “Drift” Undulation Slant Cross Wind “Drift” “Wander” Disturbance Based on road conditions and external inputs, some customers may perceive a “wander” or “drift” due to the slightly stiff on-center feel “Wander”

14. Simulation & Comparative Testing Based on 87 vehicle evaluations, Toyota set up a test vehicle Test vehicle was configured with steering and suspension components considered 3 standard deviations from normal production to represent the most extreme case for stiff steering feel from a design point of view The test vehicle was evaluated dynamically to assess steering effort and stability Steering angle and vehicle direction were evaluated against road undulations and compared to other vehicles Test vehicle compared favorably to other models evaluated

15. Simulation & Comparative Testing Confidential Information Redacted

16. Simulation & Comparative Testing Confidential Information Redacted

17. Simulation & Comparative Testing Confidential Information Redacted

18. Toyota Assessment Corolla steering is stable and controllable “Wander” or “Drift” is perceived by some drivers due to slightly stiff steering “feel” in the on-center position Steering effort and feel is comparable to a variety of other vehicles Steering “feel” may be “different” from customer’s previous experience, but is no different than the feel of driving a different vehicle than usual (e.g. a rental vehicle)

19. Toyota Assessment No defect is present in the EPS system The design and performance of the EPS are appropriate and no unreasonable safety risk is presented This is a customer satisfaction issue that will be addressed by a differently calibrated EPS ECU for those owners who prefer a “lighter” steering feel

20. Vehicles Available to Drive Test vehicle (described above) Repurchased vehicle Toyota purchased the vehicle (ODI # 10308501) from a customer who complained of “touchy” steering and experienced vehicle “wander” on the freeway The customer primarily operated the vehicle in the Sacramento, CA area and perceived a “wander” at speeds above 45mph Customer submitted VOQ after learning from a news story that “this is a real safety issue, coupled with the gas pedal issue” Toyota evaluated the vehicle and found no defect present in the EPS system