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Mr. Stephen Hench May 14, 2018
Mr. John D. Buretta

(v) Extension Request Date
Ford is providing its extension request dates in Appendix B.

Ford is investigating several methods to improve the recall launch timing and will update the
Agency on any improvements in its owner letter mailing date timing for Priority Group 9
vehicles as new information becomes available.

This Extension Request is supported by the accompanying declaration.

If you have any questions concerning this response, please feel free to contact my office.

Sincerely,

Desi Ujkashevic

Attachements


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Desi Ujkashevic, Global Director Fairlane Plaza South, Suite 400
Automotive Safety Office 330 Town Center Drive
Sustainability, Environment & Safety Engineering Dearborn, MI 48126-2738

May 14, 2018

Mr. Stephen Hench Mr. John D. Buretta

Trial Attorney, Litigation & Enforcement Takata Independent Monitor
National Highway Traffic Safety Administration Cravath, Swaine & Moore LLP
1200 New Jersey Avenue, SE, Room W41-227 Worldwide Plaza

Washington, DC 20590 825 8th Avenue

New York, NY 10019-7475
Dear Mr. Hench and Mr. Buretta:

Subject: Ford Motor Company Notice of Anticipated Shortage and Request for
Extension for Certain Priority Group 9 Vehicles

Pursuant to Paragraph 39 of the Agency’s Third Amendment to the Coordinated Remedy
Order (ACRO3) dated December 9, 2016, Ford Motor Company (Ford) respectfully requests
an extension to the Supply & Launch Deadline for the following Priority Group 9 vehicles as
specified in Amended Annex A:

Model |
Years Make Model Inflator Zone
2010 Ford Edge PAB B
2009 Ford Edge PAB Cc
2010 Ford Fusion PAB B
2009 Ford Fusion PAB Cc
2010 Lincoln MKX PAB B
2009 Lincoln MKX PAB Cc
2010 Lincoln MKZ PAB B
2009 Lincoln MKZ PAB ij
2010 Mercury Milan PAB B
2009 Mercury Milan PAB Cc

(i) Explanation

This request largely reflects a cascade effect of previous delays and production
capacity forecasts, and is not due to a new supply or development issue. As
production of remedy parts continues and part supplies rise, Ford will continue to notify
owners at the earliest opportunity.

Ford continues to make steady progress with respect to have sufficient supplies of
permanent replacement service parts for all its affected vehicle lines. Passenger


Declaration of Todd M. Fronckowiak

|, Todd M. Fronckowiak, declare as follows:

1. 1am Assistant Director, Global Automotive Safety Compliance, Automotive Safety Office
for Ford Motor Company.

2. | submit this Declaration in support of Ford’s Notice of Anticipated Shortage and Request
for Extension (“Extension Request’) pursuant to Paragraph 39 of the Third Amendment
to the Coordinated Remedy Order.

3. The contents of the Extension Request are accurate to the best of my knowledge,
information, and belief.

4. | make no representation beyond these contained in this Declaration and, in particular, |
make no representations as to whether this information my change in the future.

| state under penalty of perjury that the foregoing is true and correct.

Executed this Fourteenth day of May, 2018.

. Fronckowiak


CONFIDENTIAL BUSINESS INFORMATION

Mr, Stephen Hench May 14, 2018
Mr. John D. Buretta

airbag inflator kits for the 2005-2009 Ford Mustang and for the 2010-2014 Mustang are
available in quantities and owners of vehicles through Priority Group 9 have been
notified. In addition, inflator kits for the 2007-2011 Ford Ranger are in sufficient
quantities and owner notification mailings were launched prior to the deadline for
Priority Group 9.

Due to the development challenges and supplier production process concerns
previously communicated to the Agency, Ford's production launch, rate and supply
forecasting indicates that there will not be sufficient supplies of replacement parts by
the June 30, 2018 ACRO3 deadline for certain vehicles assigned to Priority Group 9.
Explanations of the previous development and production issues are provided below.

2010-2012 Ford Fusion and 2010-2011 Mercury Milan Passenger Modules
During static airbag deployment tests conducted at Joyson Safety Systems (JSS)
in Mexico as part of design validation/production (DV/PV) validation testing,
engineers identified unexpected deformation on the inflator stop plate for these
passenger airbag modules. Ford and JSS are in the process of redesigning the
inflator stop plate and will perform additional DV/PV test to validate the design.

Manufacturing Issue at Autoliv

On March 26, 2018, an event occurred at Autoliv’s Promontory, Utah inflator
production facility that halted manufacturing operation. After working to
determine root cause and instituting recommended preventative actions, Autoliv
has resumed production of airbag inflators for recalls. Timing for this issue has
been accounted for in this Priority Group 9 supply assessment.

Ford has worked and continues to work diligently to introduce recall remedy parts as
expeditiously as possible with all potential sources of inflator supply globally

(ii) | Remedy Part Selection, Validation, and Development Process
With the unprecedented urgency to provide service airbag inflators, Ford created a
dedicated team of product development engineers, supported by service engineers,
purchasing, and part supply and logistics staff to identify opportunities to reduce the
time to bring inflator service parts to market. Under normal circumstances,
manufacturers require several years to design, develop, and validate original
equipment airbag modules. In contrast, to develop replacement Takata airbag inflator
replacement parts, Ford developed innovative methods to reduce the time to provide
service parts. A brief description of Ford's recall service part development and
validation process is provided:



CONFIDENTIAL BUSINESS INFORMATION

Mr. Stephen Hench May 14, 2018
Mr. John D. Buretta

(iil

(iv)

Sufficient Remedy Part Supply Sourcing

Ford has made a substantial effort to secure dual-stage passenger airbag inflator
(APPS-7) production capacity from Autoliv, Inc. For Ford’s service part needs, Autoliv
is producing four different outputs of the APPS-7 inflator that are used in both inflator
kits and airbag module assemblies.

In some instances, replacing the existing Takata airbag inflator with a new Autoliv
inflator did not deliver acceptable performance, which required redesigning the airbag
cushion and additional development and validation time. Ford secured module
production capacity at Joyson Safety Systems that incorporates the redesigned airbag
cushion.

Replacement Part Quantities

Ford is providing the number of affected vehicles, as reported in the [month day, 2018]
Monitor Dashboard, and the number of replacement parts it reasonable believes will
be available by the “Supply & Launch Deadline” for the affected Priority Group 9
vehicles in Appendix A.