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Toyota Vehicle Delivery Enhancement October 16, 2007

5 Agenda  Module One: The Business Case  Module Two: The Top Three Issues and Solutions  Module Three: Tools and Resources

6 Bob Carter, Group Vice President and General Manager, Toyota Division

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8 The Business Case Total Non-Premium MINI Buick Saturn Mercury GMC Chevrolet Ford Honda Pontiac Hyundai Toyota Jeep Scion Chrysler Volkswagen Dodge Mazda Nissan Kia Subaru Suzuki Mitsubishi Delivery Process Ranking by Nameplate Source: 2007 J.D. Power and Associates Sales Satisfaction Index Study SM

9 The Business Case Note: IQS2 Data Initial Quality Toyota vs. Competitors Source: J.D. Power and Associates Initial Quality Study SM Note: IQS3 Data Industry Avg Better Worse P/100

10 The Business Case Note: IQS2 Data Initial Quality Toyota vs. Competitors Note: IQS3 Data Industry Avg Better Worse P/100 Source: J.D. Power and Associates Initial Quality StudySM

11 The Business Case 38% of Toyota buyers previously or currently own a domestic vehicle

12 The Business Case

13 The Business Case  Video Transcript  See Note Pages

14 Agenda  Module One: The Business Case  Module Two: The Top Three Issues and Solutions  Module Three: Tools and Resources

15 Customer Comments

16 Customer Comments  See Note Page

17 Customer Comments  See Note Page

18 Cruise Control

19 Cruise Control “Word Tracks”  Understand Do they use cruise control? Where was it located on their previous vehicle? Was it steering-wheel mounted?  Show and Let the Customer Try On and off Set cruise speed Increase and decrease speed Resume Cancel

20 Cruise Control “Word Tracks”  Say In this vehicle the cruise control is located right here. See how it has its own dedicated stalk? It’s very intuitive and you’ll find it very easy to use.  Confirm they understand how to use the feature and ask if they have questions.

21 Cruise Control Demonstration

22 Wiper & Washer Controls  Research shows of those reporting that Front/Rear Wipers are difficult to understand or use in Toyota vehicles, 53% say the controls are complex or confusing Source: 2007 J.D. Power and Associates Initial Quality Study SM

23 Wiper & Washer Controls

24 Wiper & Washer Controls “Word Tracks”  Understand What kind of vehicle were they driving before? Where were the wiper controls located on that vehicle? Does their new vehicle have front only or front and rear wipers?  Show and Let the Customer Try Low and high speed settings Intermittent wiper setting Front washers Rear wiper wipe and wash

25 Wiper & Washer Controls “Word Tracks”  Say The wiper and washer controls are located on the right side of the steering wheel. One of the things you’re going to notice about your Toyota is that the controls might operate a bit differently than what you’re used to. (Domestic or European Vehicle Owners) Moving the stalk downward to activate is very comfortable; the wipers are very ergonomic and easy to get used to.  Confirm they understand how to use the feature and ask if they have questions.

26 Wiper & Washer Controls Demonstration

27 HVAC  Research shows of those reporting issues with HVAC, the majority say the controls are difficult to understand or use  This is especially true when the vehicle is equipped with dual automatic climate controls (like the Camry and RAV4) Source: 2006 & 2007 J.D. Power and Associates Initial Quality Study SM

28 Dual Zone. Many customers have never had the ability to set a different temperature for the driver and passenger. Continuous illumination of the A/C button in “Auto” mode. Customers may be confused because the light remains on regardless of temperature setting (i.e., even when set at 80°). RAV4 1 2 Micro dust/pollen filter. This feature is not widely offered and customers may not be familiar with the international symbol used to activate that feature Toyota RAV4 LTD

29 Camry Continuous illumination of the A/C button in “Auto” mode. Customers may be confused because the light remains on regardless of temperature setting (i.e., even when set at 80°). 1 Fan Speed. The operation for increasing/decreasing fan speed may be different than what the customer is used to. 4 3 Dual Zone. Many customers have never had the ability to set a different temperature for the driver and passenger. 4 “Recirc” automatically illuminates. Customers may be confused by the automatic illumination of the “recirc” light when the system is adjusted to the lowest temperature Toyota Camry XLE and Hybrid

30 Tundra Fan speed control knob. Customers may have difficulty locating the fan speed control knob because it is set apart from the other HVAC controls. 1 Dual Zone/Sync. Many customers have never had the ability to set a different temperature for the driver and passenger. In addition, they may not understand the term “Sync.” Toyota Tundra SR5

31 HVAC

32 HVAC “Word Tracks”  Understand Did their previous vehicle have manual or automatic climate control? Have they ever owned a vehicle with dual zone temperature controls?  Show and Let the Customer Try Automatic feature Set Temp (fan/mode automatically adjusted) Modes: defrost, floor, dash-level Dual feature – sync/separate “Recirc” Micro Dust/Pollen Filter

33 HVAC “Word Tracks”  Say You’re going to enjoy the auto climate control on your vehicle; you just set the temperature you want and it automatically adjusts to achieve that temperature. The AC light comes on whether you’re heating or cooling your car. This is normal; it helps remove moisture from the air and helps prevent your windows from fogging. When you adjust the temperature to the coldest setting you will see the “recirculation” button illuminate. That’s how it is supposed to work, because the system is being efficient and closing off the hot air from outside. In addition, it helps remove moisture from the inside air.

34 HVAC “Word Tracks”  Say, cont. Another thing you may not be familiar with is the “Micro Dust/Pollen Filter” feature. This closes off the outside air and helps clean and filter the air within the car. When the “Dual Zone” light is on, your passenger can set a different temperature. To synchronize the temperature for the entire cabin, simply press the dual button to turn it off.  Confirm they understand how to use the feature and ask if they have questions.

35 HVAC Demonstration

36 Activity - Practice  Break into teams of two  Practice presenting one of the top issues discussed: Cruise Control Wiper & Washer Controls HVAC  Use your job aid and incorporate at least one new “word track” presented today  Debrief

37 Agenda  Module One: The Business Case  Module Two: The Top Three Issues and Solutions  Module Three: Tools and Resources

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44 Quick Reference Guide

45 Call to Action  Why is this initiative important? Key competitors are improving and closing the quality gap with Toyota. Research shows that this can be attributed, in part to an inadequate explanation of features/controls. 38% of Toyota buyers previously owned or currently own a domestic vehicle. Conquest customers are unfamiliar with Toyotas and reporting more problems than loyal customers. Unfamiliarity leads to perceived quality issues.  What’s In It For Me? Decrease perceived quality issues. Satisfied customers. More sales leads and repeat/referral customers.

46 Call to Action  How can I help? Review the three top issues during vehicle delivery: Cruise Control, Wiper & Washer Controls and HVAC. Conduct a thorough vehicle delivery: –Make sure customers are familiar with their vehicles and how key features function. –Demonstrate key features and let the customer “try it” during vehicle delivery. –Confirm that they understand.  When? Start now! Continue throughout the year.

47 Final Thoughts