TABLE OF CONTENTS

SECTION I GENERAL PROVISIONS

1-A DEALER‟S OBLIGATIONS.

1-B INTER-DEALER ACTIVITY.

1-C CLAIMS ADMINISTRATION PERSONNEL TRAINING.

SECTION 2 SPECIAL WARRANTY SERVICES.

2-A ENROUTE VEHICLE REPAIRS.

2-B TRANSIENT VEHICLE REPAIRS.

2-C FOREIGN VEHICLE REPAIRS.

2-D EMERGENCY WARRANTY REPAIRS / OPEN AREAS.

SECTION 3 PRODUCT MODIFICATIONS.

3-A SAFETY STANDARDS CERTIFICATION.

3-B INVALIDATION OF NEW VEHICLE WARRANTY.

3-C DECEPTIVE TRADE PRACTICES.

SECTION 4 WARRANTY DEFINITIONS.

4-A WARRANTY EXPLANATION.

4-B WARRANTY REGISTRATION.

4-C WARRANTY EXTENSION.

4-D WARRANTY TRANSFER.

4-E WARRANTY CANCELLATION. 4-F WARRANTY INFORMATION AND MAINTENANCE BOOKLET

SECTION 5 NEW VEHICLE LIMITED WARRANTIES.

5-A VEHICLE WARRANTY (South Africa and Southern Africa Customs

Union). 5-B VEHICLE WARRANTY EXPORTS.

5-C UNITED NATIONS VEHICLES SUPPLIED THROUGH NISSAN MOTOR COMPANY INTO SOUTH AFRICA, BOTSWANA, NAMIBIA, LESOTHO & SWAZILAND.

5-D NEW VEHICLES SOLD BY UNAUTHORISED DEALERS. 5-E RUST OR CORROSION WARRANTY. 5-F EXCLUSIONS/GENERAL: MECHANICAL & BODY.

F.1 DAMAGE RESULTING FROM EXTERNAL ACTION. F.2 DAMAGE RESULTING FROM NEGLIGENCE OR IMPROPER

USE. F.3 DAMAGE RECEIVED DURING STORAGE AND

TRANSPORTATION. F.4 COMPLAINTS AND PROBLEMS RELATED TO

SPECIFICATION. F.5 NORMAL WEAR, TEAR AND DETERIORATION. F.6 MISSING OR INCORRECT PARTS. F.7 IMPROPER REPAIR. F.8 INCIDENTAL AND CONSEQUENTIAL DAMAGES AND COSTS. F.9 PRE-DELIVERY INSPECTION. F.10 MAINTENANCE SERVICE. F.11 USE OF NON-GENUINE PARTS.

5.G ITEMS NOT COVERED BY WARRANTY. G.1 DIAGNOSTIC TIME. G.2 SHORTAGES. G.3 OIL FILTER, OILS & ANTI-FREEZE, CLAIMED UNDER WARRANTY. G.4 ODOMETER CHANGES G.5 LI-ION BATTERY 5.H LIMITATIONS OF THE BODY WARRANTY.

5.I CONDITIONAL ALTERATION.

SECTION 6 PARTS AND ACCESSORY REPLACEMENT WARRANTY.

6-A FRANCHISED DEALER FITMENT.

6-B OVER THE COUNTER SALES. 6-C PART PRICE VARIANCES

SECTION 7 GENERAL NISSAN CUSTOMER SERVICES WARRANTIES.

7-A GOODWILL AND CUSTOMER POLICY WARRANTY.

SECTION 8 WARRANTY CLAIM APPROVAL CONDITIONS.

INTRODUCTION 8-A QUALIFYING CRITERIA AND STANDARDS.

8-B SELF AUTHORISATION PROCEDURE.

8-C DIAGNOSTIC RESPONSIBILITY. 8-D MECHANICAL BREAKDOWN DEFINITION.

8-E TOWING COVERAGE POLICY.

8-F NON AVAILABILITY OF PARTS. 8-G COMPLETE UNIT REPLACEMENT POLICY.

8-H COMPONENT SERVICE POLICIES.

SECTION 9 CLAIM REIMBURSEMENT POLICIES.

9-A WARRANTY LABOUR RATE.

9-B PARTS REIMBURSEMENT POLICY.

9-C SUBLET REPAIR REIMBURSEMENT.

9-D NISSAN FLAT RATE SCHEDULE.

9-E MINIMUM CLAIM VALUE.

SECTION 10 WORKSHOP ADMINISTRATION.

INTRODUCTION 10-A TYPES OF REPAIR ORDERS.

10-B INITIATING/CLOSING REPAIR ORDERS.

10-C AFTERSALES STANDARDS FOR WARRANTY CONTROL.

10-C 1 SALES HANDOVER.

10-C 2 SERVICE RECEPTION.

10-C 3 WORKSHOP CONTROL.

10-C 4 TECHNICIAN.

10-C 5 PARTS DEPARTMENT.

10-C 6 ADMINISTRATION. 10-C 7 SERVICE MANAGEMENT. 10-C 8 NISSAN WARRANTY ADJUDICATOR

SECTION 11 RECORDS AND PARTS RETENTION.

11-A RECORDS RETENTION.

11-B PART/S RETURN PROCEDURES.

11-C PART/S RETENTION PERIOD.

11-D PART/S STORAGE.

11-E PART/S SCRAPPING.

SECTION 12 SUBMITTING WARRANTY CLAIMS.

OVERVIEW 12-A WARRANTY CLASSES.

12-B SYMPTOM CODE EXPLANATION (CS).

12-C PRIMARY FAILED PART CODE EXPLANATION (PFP).

12-D TROUBLE CODE EXPLANATION (CT).

12-E LOCATION CODE EXPLANATION.

12-F SUBLET CODE EXPLANATION

12-G FLAT RATE/OPERATION CODE EXPLANATION. 12-H CLAIM SUBMISSION USING eNEWS-SA. 12-I VEHICLE IDENTIFICATION NUMBER (VIN) 12-J MILEAGE 12-K SOLD DATE

12-L REPAIR DATE 12-M CLAIM NUMBER 12-N PARTS MILEAGE 12-O PARTS INSTALL DATE 12-P PARTS QUANTITY 12-Q ACCESSING eNEWS SUBMISSION/INPUT SCREENS 12-R PROCESSING TIME PARAMETERS 12-S VALIDATIONS 12-T SUBMISSION AMOUNT LIMIT 12-U WARRANTY START DATE REVISION

SECTION 13 MANAGING AND TRACKING CLAIMS.

13-A MONTHLY STATEMENT/CLAIMS RECONCILIATION.

SECTION 14 AUDITS.

INTRODUCTION 14-A AUDITING OF CLAIM RECORDS.

14-B PERFORMANCE EVALUATION.

14-C DEALER NOTIFICATION.

14-D CHARGE BACK POLICY.

SECTION 15 SERVICE LETTER CAMPAIGNS.

INTRODUCTION 15-A DEALER NOTIFICATION.

15-B OWNER NOTIFICATION.

15-C PARTS CONTROL AND DISTRIBUTION.

15-D REIMBURSEMENT POLICY.

PREFACE

Nissan S.A. has revised the Warranty Policies and Procedures Manual, to incorporate eNEWS-SA (eNissan Europe Warranty System – South Africa) that has been designed and constructed around advanced information technology. This manual is a supplement to and extension of the Dealer agreement between Nissan S.A. and each Dealer. The main purpose of this manual is to promote a better understanding by the Dealer of Nissan S.A.‟s warranty policies and procedures, to provide assistance to those who administer warranty claims at the Dealerships, and in order to facilitate a proper and efficient warranty claim processing system Claims represent a significant amount of money, which requires the Dealer‟s regular attention. Because claims transactions are conducted on a day-to-day basis, it is imperative that the Dealer‟s claims administration team must be completely familiar with the manual content to maintain a smooth-running warranty department. This manual supersedes all former editions. Nissan S.A. reserves the right to amend part or all of the requirements and/or supplement these requirements and the warranty procedure manual at any time. Such amendments and/or supplements shall be deemed to form part of this manual‟s content.

PUBLICATION 2012 NISSAN S.A. (PTY) LTD

EFFECTIVE DATE

OCT/2012

SUBJECT

GENERAL PROVISIONS

SECTION

1

SUPERSEDES

JUN/2012

PAGE

1 of 2

1-A DEALER’S OBLIGATION

In terms of the Dealer Agreement between Nissan S.A. and each Dealer, the Dealer shall provide and maintain such standards, facilities, equipment, personnel, methods and/or business structures as are required to provide an efficient Customer oriented service. The Dealer shall provide efficient pre-delivery and routine services and repairs, for all Nissan vehicles irrespective of whether the Dealer has sold the vehicle or not. The Dealer shall at all times hold such parts and accessories stocks as determined by Nissan S.A. to be sufficient to provide for the proper support and servicing of the market, for which the Dealership is responsible.

In terms of its undertaking in the warranty clause provided in the Dealer Agreement, no Dealer, whether or not it is the selling Dealer, May under any circumstances refuse to carry out warranty repair work on any Nissan vehicle sold by an authorised Nissan Dealer, provided that the appropriate warranty conditions prevail.

The Dealer shall ensure that the performance of warranty repairs is treated as a priority, as the speedy rectification of a Customer‟s problem is an important factor in the maintenance of healthy Customer relations. The Dealer shall ensure that all warranty work is performed as economically as possible. As and when necessary Nissan S.A. shall issue technical service bulletins (TB) and general information warranty bulletins (WB). Dealer service personnel shall ensure that they are all familiar with the content of all such bulletins and that the contents are fully implemented and adhered to. Dealers shall ensure that all bulletin files are kept up to date, properly stored and shall be readily accessible to all workshop personnel. All bulletins shall be treated as confidential and shall not be discussed with either Customers or general public. The Dealer shall conform to and comply with all the policies, procedures and provisions as laid down in the warranty manual.

EFFECTIVE DATE

OCT/2012

SUBJECT

GENERAL PROVISIONS

SECTION

1

SUPERSEDES

JUN/2012

PAGE

2 of 2

1-B INTER-DEALER ACTIVITY Dealers shall give priority service to all Nissan vehicle owners. This applies regardless of whether the Customer has purchased the vehicle from the Dealer concerned or from another Dealer within the country, or directly from Nissan S.A or abroad. In their commitment to Customer Satisfaction, Dealers shall at all times co-operate with each other in all matters pertaining to service warranty.

1-C CLAIMS ADMINISTRATION PERSONNEL TRAINING

To facilitate proper and efficient warranty claim processing, the Dealer shall at all times ensure that all warranty administration personnel involved in the administration and processing of warranty claims are properly trained in this regard and are fully conversant with the correct procedures as laid down in the warranty policy and procedures manual.

Nissan S.A shall assist Dealers with the training and development of all warranty personnel to the optimum level of competence.

Dealers shall enroll warranty department personnel in accordance with the training schedules available through Automakers‟ Dealer Institute (ADI) via the online.nissan.co.sa web page by accessing Nissan S.A. Applications. Dealer Service advisors have to be certified on the advisor warranty training course also provided through Automakers Dealer Institute.

EFFECTIVE DATE

OCT/2012

SUBJECT

SPECIAL WARRANTY SERVICES

SECTION

2

SUPERSEDES

JUN/2012

PAGE

1 of 2

2-A ENROUTE VEHICLE REPAIRS

Warranty repairs carried out on vehicles “enrouted” from Nissan S.A. to a Franchised Nissan Dealership are subject to the normal warranty conditions and shall be claimed for in accordance with the requirements of the standard warranty conditions. The Dealer nearest to the point of breakdown shall give priority service to the broken down vehicle irrespective of the destiny of the vehicle. The repairing Dealer shall notify Nissan Distribution Department of the breakdown and any possible delays. The repairing Dealer shall on completion of the repair notify Nissan Distribution Department in order to arrange for final delivery of the vehicle.

2-B TRANSIENT VEHICLE REPAIRS (A transient vehicle is a vehicle touring in a foreign country) Nissan Dealers shall give priority service to all transient vehicles, regardless of the Nissan Franchised Dealer from which the vehicle was purchased. The repairs should be provided under the warranty provisions stipulated in the warranty information booklet retained by the customer. Warranty repairs carried out on transient vehicles shall be claimed for and submitted in accordance with the standard Nissan Warranty claim procedures.

2-C FOREIGN VEHICLE REPAIRS Any vehicle relocated or resold from or into a foreign country is not covered by Nissan S.A‟s warranty. If a customer, who owns such a vehicle, requests for warranty service, the Dealer may provide the customer with warranty service. Nissan S.A. will not be responsible for any of the costs associated with such service provided by the Dealer.

EFFECTIVE DATE

OCT/2012

SUBJECT

SPECIAL WARRANTY SERVICES

SECTION

2

SUPERSEDES

JUN/2012

PAGE

2 of 2

2-D EMERGENCY WARRANTY REPAIRS / OPEN AREAS When a Nissan vehicle owner requires emergency mechanical warranty repairs in an open area where Nissan is not represented by an authorised Dealer (including an S2/Servicing Dealer), the selling Dealer shall contact the nearest Nissan Dealer to the point of breakdown, who shall execute the emergency repairs on its behalf. In situations where this ruling cannot be applied, the selling Dealer may contact any other Franchised Dealer, in the area where the Customer is stranded, to execute the repairs on its behalf. A warranty claim as a result of such repairs will then be submitted by the selling Dealer as if the repairs were performed in its own workshop.

EFFECTIVE DATE

OCT/2012

SUBJECT

PRODUCT MODIFICATIONS

SECTION

3

SUPERSEDES

JUN/2012

PAGE

1 of 2

3-A SAFETY STANDARDS CERTIFICATION Nissan Motor Company Ltd., Nissan Europe SAS and Nissan S.A. have extensive compliance test programs and other procedures to ensure that their vehicles meet and exceed the required safety standards. All vehicles are required to meet these safety standards. A Dealer who sells a vehicle, certified by the manufacturer without alterations, is protected by the manufacturer‟s certification, but a Dealer who sells a vehicle after alteration that does not conform to safety standards will be exposed to legal liability.

Nissan S.A. has in the past issued a number of general information bulletins concerning the types of modifications or alterations which could lead to potential liabilities. The types of modifications which have been contemplated include, but are not limited to, the following:

Engine modifications/ fitting of turbo chargers and intercoolers

Modifications to suspension systems which raise or lower the vehicle

Modifications to the exhaust system

The use of wheels and tyres not equivalent in quality and design to parts supplied by Nissan S.A.

Any other alteration or modification which would affect the manufacturer‟s certification requirements.

3-B INVALIDATION OF NEW VEHICLE WARRANTY

No Nissan Dealer, Contractor or Customer may perform any modification or conversion on any Nissan vehicle whilst the unit is still covered under the New Vehicle Limited Warranty.

The Nissan S.A. New Vehicle Limited Warranty as published provides in part that the warranty does not cover damage or failures resulting from:

Any Nissan vehicle which has been subjected to negligence, misuse, accident, alteration or modification.

Installation of non-Nissan S.A. approved parts accessories or components.

Exceptions to the above being where the alteration or modification is covered by a Technical Bulletin or is stated in the Electronic Service Manual (ESM) where the alteration (from standard) is governed and is within the relevant specifications as stated e.g: 1, Cylinder block bored and oversize pistons and rings fitted. 2, Cylinder block bored and sleeves fitted. 3, Crankshaft ground and undersize bearings fitted. 4, Cylinder head ground.

Subject to the above express exclusions, any alteration or modification performed during the warranty period shall invalidate the vehicle warranty.

EFFECTIVE DATE

OCT/2012

SUBJECT

PRODUCT MODIFICATIONS

SECTION

3

SUPERSEDES

JUN/2012

PAGE

2 of 2

3-C DECEPTIVE TRADE PRACTICES No Dealer shall engage in any deceptive, misleading or unethical practices. Additionally, no Dealer shall represent as a Genuine Nissan Part or accessory any part or accessory that in fact is not a genuine part or accessory supplied by Nissan for use on Nissan vehicles. A Dealer may be deemed to have engaged in such practices in connection with the sale of any modified Nissan vehicle unless the selling Dealer has advised the purchaser in writing as follows: That the vehicle as modified is not as manufactured/sold by Nissan S.A. That Nissan S.A.‟s New Vehicle Limited Warranty does not cover the vehicle.

EFFECTIVE DATE

OCT/2012

SUBJECT

WARRANTY DEFINITIONS

SECTION

4

SUPERSEDES

JUN/2012

PAGE

1 of 3

4-A WARRANTY EXPLANATION

Common law requires that the warranties applicable to each vehicle be made available to the Customer prior to the sale of the vehicle. Moreover, at the time of vehicle delivery, the authorised Nissan Dealer must deliver to the Customer a copy of all applicable warranties for that vehicle. The warranty term begins on the date the vehicle is delivered to the first retail buyer or is first put into service as reported to Nissan S.A. and maintained in the Nissan data system, whichever is earlier. Nissan S.A. provides express Limited Warranties to authorised Nissan Dealers and to their Customers with respect to new Nissan vehicles supplied by Nissan. Dealers are authorised to make repairs under the terms of the express Limited Warranties. Warranty is a guarantee by Nissan S.A. of the repair or replacement by a Nissan Dealer of a defective or malfunctioning part under the provisions of any applicable warranty provided by Nissan S.A. for products manufactured or marketed by Nissan S.A. The Nissan New Vehicle Warranty shall be the only expressed warranty applicable to new Nissan vehicles. Nissan S.A. neither assumes nor authorizes anyone to assume on behalf of the Company any other obligation and/or liability in connection with such new vehicle. The warranty replacement/repair is subject to the timeous submission of a warranty claim to Nissan S.A. New Vehicles sold by unauthorised Dealers are not covered by any Nissan Warranty.

4-B WARRANTY REGISTRATION Upon the actual release and handover of a new Nissan vehicle to a Customer, the Dealer shall ensure that the details of the sale are recorded through Nissan SA as per the requirements in the Dealer Agreement. Should a Dealer fail to advise Nissan S.A. of a sale, Nissan S.A. reserves the right to suspend all Warranty Claims relative to the vehicle until such time as the sale has been recorded.

EFFECTIVE DATE

OCT/2012

SUBJECT

WARRANTY DEFINITIONS

SECTION

4

SUPERSEDES

JUN/2012

PAGE

2 of 3

4-C WARRANTY EXTENSION

The warranty date of sale cannot be changed once recorded as the original date of sale. If alternations are done claims outside the original warranty period will be treated as Goodwill No Dealer may on behalf of Nissan S.A., extend the warranty on any Nissan vehicle, or any part thereof, without the prior written authority of the Manager Customer Care.

4-D WARRANTY TRANSFER

The Nissan S.A. New Vehicle Limited Warranty is transferable provided that the vehicle is maintained and serviced by an authorised Nissan Dealer. The warranty shall transfer to the second and all subsequent owners during the warranty period, provided that the vehicle has been serviced at the predetermined intervals by an authorised Nissan Dealership and that this information is readily available and updated at all times. In cases of transfer of warranty, the Nissan Dealer shall ensure that the transfer of ownership form as published in the relevant owner‟s manual is fully completed and the tear-out section held on record, the transfer details will be recorded on eNEWS via the function available in the Customer/Vehicle section.

4-E WARRANTY CANCELLATION

Various conditions will lead to the cancellation of a New Vehicle Limited Warranty. Owner responsibilities are detailed throughout the warranty conditions as published in the vehicle owner‟s manual. If these responsibilities are not met, repairs to the vehicle will not qualify for warranty reimbursement. The Dealer or Nissan S.A.‟s representative shall at all times file a cancellation request with Nissan S.A. Warranty Department quoting the reason/s for the cancellation request. If the request is approved by the Manager, Warranty Department the cancellation shall be deemed as irrevocable. Only Nissan S.A. has the right to cancel a New Vehicle Limited Warranty.

EFFECTIVE DATE

OCT/2012

SUBJECT

WARRANTY DEFINITIONS

SECTION

4

SUPERSEDES

JUN/2012

PAGE

3 of 3

4-F WARRANTY INFORMATION AND MAINTENANCE BOOKLET

Nissan S.A publishes its Manufacturer‟s Warranty conditions in the Warranty Information and Maintenance Booklet which must be supplied with the vehicle upon delivery to the first customer. Upon delivery the dealer must explain to the customer the content and use of the WIMB and ensure that the customer understands the associated right and obligations. The Warranty Information and Maintenance Booklet is designed to inform owners of warranty coverage and servicing requirements and to identify the owner and vehicle for warranty service. Upon the sale of each Nissan vehicle to a customer, the manufacturer‟s written warranty applies as set forth in the WPPM. When properly completed and delivered to the customer, the Warranty Certificate will evidence the date and mileage upon which the warranty period commences. The Warranty Start Date entered in the Warranty Information and Maintenance Booklet should be the date of vehicle handover to the customer or the date when the vehicle was first put into use whichever comes first.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

1 of 13

5-A VEHICLE WARRANTY (South Africa and Southern Africa Customs Union)

Nissan S.A. warrants to the first retail purchaser of each new Nissan vehicle that the vehicle manufactured, assembled or distributed by it and delivered by an authorised Nissan Dealer will be free from defects in material and workmanship under normal use and service for a period of:

Three (3) years or 100 000kms, whichever comes first, for all vehicles.

This warranty is subject to change and also to the exclusions referred to in this manual.

5-B VEHICLE WARRANTY EXPORTS

Vehicles exported to countries outside South Africa and the Southern African Customs Union by Nissan S.A. are warranted in accordance with the warranty conditions applicable to the specific country. Vehicles sold in South Africa are sold subject to the warranty conditions applicable to South Africa. These warranty conditions are not transferable should such a vehicle be exported by anyone other than Nissan S.A.

5-C UNITED NATIONS VEHICLES SUPPLIED THROUGH NISSAN MOTOR COMPANY JAPAN INTO SOUTH AFRICA, BOTSWANA, NAMIBIA, LESOTHO & SWAZILAND

In accordance with Nissan S.A.‟s agreement with Nissan Motor Company

Limited of Japan, Nissan S.A. is committed to comply with certain conditions of business which do not form part of our normal Warranty Policy and Procedure. Therefore, Nissan S.A. appeals to its Dealers to co-operate with all the stakeholders to apply optimum customer service in order that these vehicles may, in the shortest possible time, be mobile again to pursue their intended purpose.

These vehicles are donated to various aid organisations, i.e. UN Food &

Agricultural organisations, health care centers, rural development services etc. It must be taken into consideration that these vehicles operate under severe conditions, i.e. arid and rugged terrains, swamps etc.

Insofar as the warranty terms and conditions are concerned, Nissan S.A.‟s policy and procedures for the country in which the vehicle in question is, shall apply.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

2 of 13

You will be informed of vehicles by letter. These claims should be submitted to

Nissan S.A. and you will be compensated at in-transit rates. In the event of any warranty work to be undertaken, this should be carried out in accordance with Nissan S.A.‟s Warranty Policy & Procedure. These vehicles will either be collected by the consignee from the harbours, and if not viable, you will be requested to do this and valid claims will be entertained. You are kindly requested to adhere to and attend to these vehicles to the very best of your ability. In the past, these vehicles were attended to by the nearest Nissan franchised dealer, but due to certain time, parts limitations and/or manpower constraints, we have left the onus upon the purchasers to have the vehicles attended to by franchised Nissan dealers of their choice. The following should be taken into cognizance:

The dealer concerned must ensure that the vehicles do belong to organisations mentioned. If not clear please contact the Warranty Department for authority to proceed with repairs.

Dealers must be aware of so-called “Grey Import Units” or an authorised vehicle imported directly without the knowledge of Nissan S.A.

Vehicles brought in for repairs under the pretext that they do belong to such organisations must be reported to Nissan S.A. Warranty Department immediately. It is of the utmost importance that clarification of the consignee‟s authenticity be determined. A copy of a letter from Nissan Motor Company Limited of Japan should be in the purchaser‟s possession.

In view of Nissan S.A.‟s high commitment customer care service, kindly adhere to the procedures outlined and contact us with any misunderstandings or irregularities which may arise.

5-D NEW VEHICLES SOLD BY UNAUTHORISED DEALERS

When a vehicle is sold by an unauthorised Nissan dealer the vehicle is not covered by warranty. Should it be established that a vehicle has been sold by an unauthorised dealer, Nissan S.A. will hold the authorised dealer to whom the vehicle was originally invoiced responsible for all warranty costs claimed on such vehicles. In these instances, labour costs will be calculated at the prevailing chargeback rate.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

3 of 13

5-E RUST OR CORROSION WARRANTY

The body panels are covered under a corrosion warranty for a period of 3 (three) years unlimited kilometers. This warranty does not apply to the chassis and undercarriage and is subject to the requirements described in these conditions. Nissan S.A warrants to the owner of a new vehicle, the body against rust perforation for a period of 3 (three) years from the date of sale of the vehicle to the original owner, irrespective of the distance traveled during this period. The bodies of new vehicles sold to countries outside South Africa by Nissan S.A and its Dealer Network, are warranted against rust perforation providing maintenance and body inspections have been carried out at the stipulated intervals according to each country. Any corrosion claims in these countries are covered by the Nissan S.A.‟s normal warranty.

The period of this warranty shall not be extended by reason of replacement or repair of the body part/s of the vehicle in terms of the new vehicle body warranty.

GENERAL CONDITIONS In terms of this warranty, Nissan S.A. undertakes to provide free repair and/or replacement of defective materials or workmanship where the liability of Nissan S.A. has been approved by an authorised Nissan Dealer. Any work done or material to be supplied by Nissan S.A. in terms of these warranties will be provided at the discretion of Nissan at the premises appointed by Nissan S.A. It shall be within the discretion of Nissan whether to repair or replace any defective components or materials.

5-F EXCLUSIONS/GENERAL: MECHANICAL & BODY

Nissan S.A.‟s Warranty applies to the vehicle itself, including all component parts of the vehicle except for those items not specifically referred to below. New Vehicle Warranty covers all Genuine Nissan parts and accessories sold and installed at the moment of sale of the vehicle. Nissan S.A.‟s warranty shall not apply when a claim arises as a result of a defect or damage due to:

Misuse or neglect Use for purposes other than that for which it was designed Use under conditions other than those for which it was designed. Intentional or negligent conduct Theft or arson An accident War or Civil Unrest Natural Calamities Alterations, modifications and/or conversions

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

4 of 13

Nissan S.A‟s warranty shall not apply when: A vehicle‟s odometer has been altered or replaced so that the reading does not correspond with the actual mileage of the vehicle, unless officially registered on the Warranty certificate in the Warranty Information & Maintenance Booklet; and Vehicle‟s Identification Number or Engine Number has been altered or removed, or any circumstances exist that make it difficult or impossible to establish the true history, origin and warranty coverage of the vehicle or part in question.

5-F-1 DAMAGE RESULTING FROM EXTERNAL ACTION

Damages that result from the following do not constitute a manufacturing or materials defect and are not covered by the Manufacturer's Warranty:

Contact with other objects Industrial fall-out Blemishes caused by acid or alkali contamination Chips or marks from gravel or contact with other items Stone chipping, scratching, abrasions, chemical fall-out, tree sap, bird droppings, salt, metal particles, hail, windstorm, lightning or other environmental conditions Scratching caused by mechanical or careless washing Additionally, minor scratches, blemishes and other surface defects, which can be corrected by polishing or light sanding, are not covered by the Manufacturer's Warranty.

5-F-2 - DAMAGE RESULTING FROM NEGLIGENCE OR IMPROPER USE

Damages which result from the following do not constitute a manufacturing or materials defect and are therefore not covered by the Manufacturer's Warranty:

Failure to follow the relevant guidelines given in the Owners Manual and under the caption "What You Must Do" in the Warranty Information & Maintenance Booklet

Failure to perform proper maintenance as outlined in the Owners Manual or Warranty Information & Maintenance Booklet

Failure to perform PDI before delivering the vehicle to the first retail customer

Failure to extend due care when storing the vehicle

Failure to have any defect repaired at the earliest opportunity after it became apparent

A repair not performed by a Nissan dealer

Use of non-Nissan, sub-standard, improper or dirty fuels, fluids or lubricants

The use or installation of non-Genuine parts or accessories including non-Genuine telephone kits, alarms, immobilisers or tracking devices

Malfunction of any component parts supplied by Nissan that were locally modified to facilitate installation or mounting

Failure as the result of improper local installation or mounting

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

5 of 13

Use of the vehicle for purposes other than that for which it was designed, e.g. racing, rallying, time trials etc., exceeding the maximum Gross Vehicle Weight, pulling a trailer without suitable equipment or a trailer which exceeds the rated capacity, or exceeding the maximum loading of a roof rack

Long storage or long non-use.

R35 (GT-R) – A repair not performed by a Nissan High Performance Centre (NHPC).

R35 (GT-R) – Vehicle Status Data Recorder (VSDR) The VSDR records vehicle operating and performance information (such as but not limited to; gear position, engine and component replacement and/or re-programming history. The data in the VSDR is encrypted and can only be accessed using the relevant technology. In the event of a warranty claim and there is evidence of tampering with or disabling of the VSDR, the defect will not be covered by the Manufacturers Warranty.

5-F-3 - DAMAGE RECEIVED DURING STORAGE AND TRANSPORTATION

Damage received during transportation or storage of the vehicle, from the time it leaves the factory until the end of Manufacturer's Warranty, does not constitute a manufacturing or materials defect and is therefore not covered by Manufacturer's Warranty.

5-F-4 – COMPLAINTS AND PROBLEMS RELATED TO SPECIFICATION

Where a vehicle or component deviates from a specification that is not its own it does not constitute a manufacturing or a material defect and is therefore not covered by Manufacturer's Warranty.

Nissan reserves the right at any time and from time to time to make changes in design or specifications of any Nissan vehicle or any part without notice and without incurring any obligation to make or install similar changes on previously manufactured products.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

6 of 13

5-F-5 - NORMAL WEAR, TEAR AND DETERIORATION

Normal wear, tear and deterioration (such as discoloration, fading, deformation, blurring etc.) of the product due to use, non-use or exposure are foreseeable, expected, shall be regarded as "wear & tear" and do not constitute a manufacturing or materials defect. They are therefore not covered by Manufacturer's Warranty. The following schedule details examples of expected “wear & tear”:

Examples of “wear & tear”

Item Not Warrantable Warrantable

Windshield wiper blades and arms

Wear from use Running on dry or ice

covered glass, engaging when stuck/frozen

Apparent poor performance caused by failure to remove protective substance (e.g. wax) from the glass

Manufacturing or material defects

Spark plugs Wear from use Consequential damage from warrantable defect

Belts Wear from use Consequential damage from warrantable defect

Filters Wear from use Contamination (e.g.

diesel wax in fuel filter

Leaking or blocking as a result of a manufacturing or materials defect

Cleaner spray nozzles Defects after PDI Manufacturing or materials defect established at PDI

Light bulbs All bulbs

Fuses Excluded from Warranty

Brake pads Wear from use Friction material coming loose as a result of a manufacturing or materials defect

Consequential damage from warrantable defects

Brake discs Wear from use Judder from irregular wear (repair by on-the-car lathing, no disc replacement)

Consequential damage from warrantable defects

Clutch Wear from use Manufacturing or materials defect

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

7 of 13

Shock absorbers/struts Wear from use Oil seepage

Oil leakage in combination with poor performance

Excessive noise resulting from a manufacturing or materials defect

Exhaust system Perforation resulting from outside-to-inside corrosion

Damaged resulting from impact

Cosmetic imperfections

Manufacturing or materials defects (e.g. faulty welds, interior parts coming loose)

5-F-6 - MISSING OR INCORRECT PARTS

Upon receipt by the Dealer, any new vehicle should be checked thoroughly for consistency with the specifications as ordered and agreed. All corrections at this point must have been completed before the vehicle is delivered to the first retail customer.

5-F-7 – IMPROPER REPAIR

Any additional expense resulting from correction of improper repair, inspection, diagnosis or dealer's workmanship does not constitute a manufacturing or materials defect and is therefore not covered by Manufacturer's Warranty. Any resultant repairs should be carried out free of charge by the repairing dealer.

5-F-8 - INCIDENTAL AND CONSEQUENTIAL DAMAGES AND COSTS

Manufacturer's Warranty covers only costs of the standard repair, as defined by the Service Manual and the Flat Rate Schedule, necessary to correct a warrantable defect. Therefore incidental or consequential damages and costs such as, but not restricted to, the following are not covered by Manufacturer's Warranty:

Telephone calls Taxi fares Car hire Meals Clothing Loss of perishable goods Loss of earnings or commissions resulting from loss of use Loss of time Compensation for inconvenience to customers Accident damage

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

8 of 13

Excess cost caused by delays due to parts availability problems, unsuccessful repair and/or repair performed not in line with the Service Manual, the Flat Rate Schedule and this manual.

5-F-9 - PRE-DELIVERY INSPECTION The costs of pre-delivery inspection are not covered by Manufacturer's Warranty. However, repairs during pre-delivery inspection to correct a warrantable defect can be claimed. Damage caused by the lack of, or an improper, pre-delivery inspection is not covered by Manufacturer's Warranty.

5-F-10 - MAINTENANCE SERVICE

The normal maintenance services as detailed in the Maintenance Schedule contained in the Owner's Manual or Warranty Information & Maintenance Booklet are not covered by Manufacturer's Warranty, this includes:

Adjustments

Adjustments/inspections such as engine tune-up, drive belt adjustment, clutch and brake system adjustment, etc.

The addition to and replacement of service supplies such as oil, lubricants, coolant, grease and refrigerant

Replacement of maintenance items such as bulbs, coolants, filters (air-, fuel-, PCV-, pollen- and oil-), fluids, lubricants, spark plugs, brake shoes, linings, pads, discs and drums, clutch discs, tyres and other items listed as periodic replacements in the Maintenance Schedule.

R35 (GT-R) Servicing and Warranty Repairs The following activities must be completed by an authorised Nissan High Performance Centre (NHPC):

Warranty repairs (including body and paint repairs) the Nissan Dealer (Non NHPC) must direct the GT-R customer for any warranty repairs to a NHPC.

Scheduled Maintenance services

Yearly Body and Paint inspections

R35 (GT-R) Special Maintenance

The Nissan GT-R must have four Special Maintenance inspections completed during the New Vehicle warranty period. Failure to have the required Nissan GT-R Special Maintenance and those repairs and adjustments determined to be necessary at the time of receiving Nissan GT-R Special Maintenance will render the warranty void.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

9 of 13

5-F-11 - USE OF NON-GENUINE PARTS

Non-genuine parts, accessories and equipment, as well as any consequence of their use, are not covered by Manufacturer's Warranty.

5-G ITEMS NOT COVERED BY WARRANTY

Warranty does not cover such items as follows: 5-G-1 DIAGNOSTIC TIME

This is included in the established flat rate times.

5-G-2 SHORTAGES Claims for unauthorised or visible shortages must not form part of any warranty claim against Nissan SA. Shortages must be referred back to either the Auto Carrier Company or to the Distribution & Car Ferry Department of Nissan SA. in Rosslyn on phone number (012) 529-6545.

Shortages are marked on the despatch note at Car Ferry and the parts in

question are being forwarded to the dealer the following day via a courier.

5-G-3 OIL FILTER, OILS & ANTI-FREEZE, CLAIMED UNDER WARRANTY

“Adding or replacing service supplies such as oil, coolant and refrigerant will be covered by warranty only when they become unusable because of warranted defects”.

“Adding or replacing these supplies required for normal maintenance service and during use of a vehicle is not covered by warranty”.

In all instances of oil, filters and refrigerants being replaced reference is to be made to the recommended types/quantities as depicted in the owner‟s manual. 5-G-4 ODOMETER ALTERATION A Nissan Vehicle of which the odometer has been altered or tampered with and the actual mileage cannot be readily determined is not covered by warranty.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

10 of 13

5-G-5 LI-ION BATTERY 1) Gradual capacity loss of the Li-ion battery during usage. 2) The Lithium-ion battery is not covered by damage or failures resulting

from or caused by: a. Exposing a vehicle to ambient temperatures above 120F (50C)

for over 24 hours. b. Storing a vehicle in temperatures below -13F (-25C) for over

seven (7) days. c. Leaving your Electric Vehicle for over 14 days where the Li-ion

battery reaches a zero or near zero state of charge. d. Physically damaging the Li-ion battery or intentionally

attempting to reduce the life of the battery. e. Exposing the Li-ion battery to contact with a direct flame. f. Charging the Li-ion battery full on a daily basis despite the

battery keeping a high state of charge level (98-100%). g. Immersing any portion of the Li-ion battery in water or fluids. h. Opening the Li-ion battery enclosure or having it serviced by a

non EV Certified Technician. i. Neglect to follow correct charging procedures. j. Use of incompatible charging devices. k. Consequential damage caused by the failure to repair an

existing problem.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

11 of 13

5-H LIMITATIONS OF THE BODY WARRANTY THE BODY WARRANTY DOES NOT COVER THE FOLLOWING:

If the vehicle was subject to an accident or alteration irrespective of the magnitude of the incident. Neglect on the part of the owner in terms of proper and regular body

maintenance. External influences of any kind to the body work such as chipped paint,

scratches, industrial fallout or pollution. Failure to repair or have repaired external paint/body sealer damage

promptly. Vehicle repairs or maintenance services carried out outside an authorised

Nissan Dealer‟s business. The failure by the owner to have the maintenance services and body

inspections done by an authorised Nissan Dealer at the stipulated time or distance interval.

Failure on behalf of the owner to report any corrosion in the early stages. The warranty shall not apply in cases where extensive corrosion is evident yet not reported in its early stages.

Accessories not originally fitted by Nissan or caused by the fitting of such additional accessories.

Corrosion to the body as a result of bolt-on parts if the design of the attachment is not approved by Nissan.

Commercial vehicle chassis and load body interior areas. Bumpers, roll bars, bull bars & tow bars are excluded from any reference

to body corrosion. 5-I CONDITIONAL ITEMS: The following items are covered by warranty under specified conditions: 1. Service Supplies

Adding or replacing Service Supplies such as oil, lubricant, coolant, grease and refrigerant will be covered by warranty only when they are found to have been originally provided in insufficient amounts or when they become unusable because of other warranted defects. In other words, adding or replacing these Service Supplies required for normal maintenance is not covered by warranty.

2. Batteries The life and performance of the original battery in the Nissan Vehicle depends on how much it is charged during storage and use. Insufficient or infrequent charging is the usual cause of problems with batteries.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

12 of 13

If both of the following two conditions are met, batteries are covered by Warranty under the terms and conditions specified in the Warranty Information and Maintenance Booklet:

1) The battery capacity cannot be recovered even after constant current slow charging, and 2) The battery has been periodically charged based on the New Vehicle

Handling Manual (NVHM). Any problem caused by improper or lack of maintenance during storage of the Nissan Vehicle is not covered by warranty.

3. Adjustment and Air Conditioner Refrigerant Recharge

Adjustments and air conditioner refrigerant recharge not associated with The repair or replacement of warranted parts are covered by warranty. However, the warranty coverage for such items is different from that of the New Vehicle Warranty and designated as below. For the first 12 months of the New Vehicle Warranty.

4. Incorrect or Missing Parts

On receipt by a Dealer, all new Nissan Vehicles should be checked thoroughly to confirm that it confirms to the specifications and if not should be rectified prior to delivery to the customer.

5. Repair not performed by an Authorised Dealer

Repairs performed by anyone other than an Authorised Dealer are not covered by warranty except in the following instances: a. Emergency Repair

Where the customer is travelling in an area where there is no Dealer the Selling Dealer may process a claim if such claim meets the following conditions:

1) The problem occurred in an area not covered by a Nissan Dealer.

2) The Emergency repair was rendered in accordance with the terms and conditions of the new Vehicle Warranty.

3) An urgent repair was required. b. Sublet Repair

Sublet repairs where the Dealer sub contract the repair because the techniques required for such a repair are beyond the capability of the Dealer, i.e. radio, radiator and trim repair.

EFFECTIVE DATE

OCT/2012

SUBJECT

NEW VEHICLE LIMITED WARRANTIES

SECTION

5

SUPERSEDES

JUN/2012

PAGE

13 of 13

6. Assembly Replacement

The new vehicle Warranty covers only the repair or replacement of the parts found to be defective. When certain component parts of an assembly are found to be defective, in principal, replacement of the entire assembly is not covered by warranty. The following are examples of such assemblies: Engines – short and bare, Transmissions and Transfers, Differentials, Alternator, Starter Motors, Li-ion battery pack assemblies etc. Replacement of the entire assembly is covered by warranty on when: a. Defective component parts are either not serviceable or are not available separate from assemblies. b. The damage is serious and replacement of the entire assembly is more economical.

7. Audio/Navigation Equipment and Diesel Injection Pumps

Repairs to be carried out through the relevant suppliers of these parts.

EFFECTIVE DATE

OCT/2012

SUBJECT

PARTS AND ACCESSORIES REPLACEMENT WARRANTY

SECTION

6

SUPERSEDES

JUN/2012

PAGE

1 of 2

6-A FRANCHISED DEALER FITMENT

Nissan S.A. warrants all service replacement parts and accessories supplied by Nissan S.A., and replaced or installed on a vehicle by an authorised Dealer to be free of defects in materials under normal use and service, for a period of:

Until the end of the New Vehicle Warranty when installed as a New Vehicle Warranty repair and without customer contribution.

12 months and unlimited km in this period from install date for all other Genuine parts and accessories installed.

This warranty covers labour and/or parts costs for repairs or replacements made necessary due to defects in materials. The Service Replacement Parts and Accessory Warranty does not cover:

Electrical parts bought over the counter and not installed by an authorised

NISSAN Dealer. This includes parts such as E.C.U.s, Wiper Motors, etc. If however it is clearly evident that the failure is due to a mechanical failure the Nissan Warranty Technical Adjudicator can be contacted for further investigation

Complete components such as Engines, Transmissions and Differentials – Nissan South Africa reserve the right to repair and replace the failing individual component only

Claims from which it is impossible to validate the date and/or kilometer reading when the part or accessory was replaced or installed in the vehicle.

Failure resulting from negligence, unauthorised alterations, accidents, abuse of a part.

Loss of time, inconvenience, loss of use of the vehicle, or any other consequential damage.

This is the only expressed warranty applicable to new Nissan S.A. Service Replacement Parts and Accessories. Nissan S.A. neither assumes nor authorises anyone to assume on behalf of the Company, any other obligation or liability in connection with such parts and/or accessories.

6-B OVER THE COUNTER SALES

Service Parts bought over the counter and installed by a non-authorised Dealer shall be warranted for a period of twelve (12) months from date of sale. This warranty shall apply to the part/s only and shall exclude labour costs. Claims for over the counter sales shall be accompanied by a copy of the original purchase invoice, as well as a copy of the current replacement invoice. Claims for parts sold over the counter which are returned as being defective by the purchaser shall at all times be validated by the Dealer Service Manager before a replacement part is handed to the Customer.

EFFECTIVE DATE

OCT/2012

SUBJECT

PARTS AND ACCESSORIES REPLACEMENT WARRANTY

SECTION

6

SUPERSEDES

JUN/2012

PAGE

2 of 2

It is recommended that the second repair be done at the Dealer‟s workshop to ensure correct fitment and for customer retention purposes. The customer will however remain responsible for the labour which creates additional labour sales in the workshop. Warranty claims for parts and or accessories installed by an authorised Nissan Dealer shall be submitted with the relevant documentation. Copies of repair orders and part requisitions for the original installation together with the current replacement documentation shall accompany such claims regardless of the Servicing Dealer/s.

6-C PART PRICE VARIANCES

Should the price of the part on your claim differ to the price you purchased it from Parts and Accessories please contact P&A for assistance.

EFFECTIVE DATE

OCT/2012

SUBJECT

GENERAL NISSAN CUSTOMER SERVICES WARRANTIES

SECTION

7

SUPERSEDES

JUN/2012

PAGE

1 of 1

7-A GOODWILL OR CUSTOMER POLICY WARRANTY

A Dealer may provide a Goodwill service beyond the warranty as a sales promotional activity in order to maintain a good relationship with the customer. Dealers should bear the costs and expenses incurred in such goodwill service, provided however that, NSA may, at its sole discretion, reimburse a Dealer a part of the costs and expenses incurred by a Dealer in such goodwill service.

EFFECTIVE DATE

OCT/2012

SUBJECT

WARRANTY CLAIM APPROVAL CONDITIONS

SECTION

8

SUPERSEDES

JUN/2012

PAGE

1 of 5

INTRODUCTION A claim being submitted to Nissan S.A. begins with a completed Repair Order. Before a claim is submitted to Nissan S.A., the Dealer shall ensure that each claim meets the standards of completeness and accuracy described in this manual. Claims, submitted on eNEWS, must contain codes which identify the vehicle, the Customer complaint, the reason for the repair, and what was done to correct the problem i.e. a detailed technical description. Claims must be submitted for processing within 55 days from the repair date. Nissan S.A. authorises claims for payment based on information supplied by the Dealer. Nissan S.A. reserves the right to disallow a claim on the basis of inaccurate or misrepresented vehicle information, improper repair procedures, or failure to comply with claim submission standards.

8-A QUALIFYING CRITERIA AND STANDARDS

Dealerships may self-approve claim repairs up to the limits determined by Nissan S.A. There are however unique approval conditions that apply to certain claims requiring Nissan S.A. approval. Claims which fall into any of the following categories shall always have to be approved by Nissan S.A. before submission:

All body and paint repairs over and above the established threshold.

All out of warranty repairs over and above the parameters issued.

All repairs for which parts cannot be produced.

All complete unit replacements (i.e. gearboxes, rear axles, bare engines) except when a bulletin authorises a replacement.

Sublet repairs in excess of the flat rate allowance. Authorisation for these specific warranty claims may only be approved and obtained from the Warranty Adjudicator Any authorisation given is for submission of a claim only and is subject to audit by Nissan S.A. Nissan S.A. reserves the right to revise the qualifying standards for any level of self-authorisation and to change or adjust the authorisation status at any time without prior notice.

EFFECTIVE DATE

OCT/2012

SUBJECT

WARRANTY CLAIM APPROVAL CONDITIONS

SECTION

8

SUPERSEDES

JUN/2012

PAGE

2 of 5

8-B SELF AUTHORISATION PROCEDURE Claims for repairs, which are within the self authorised limits, may be prepared and submitted to Nissan S.A. without Nissan S.A. review or pre-approval. The Repair Order must be completed and approved by the Dealer Service Manager before claim submission. Approval must consist of legible signature or initials and the date approved. The Dealer may not self authorise any Goodwill repairs which normally require Nissan S.A. pre-approval.

8-C DIAGNOSTIC RESPONSIBILITY Reasonable diagnosis, associated with the repair of a covered component or any related system, is part of the flat rate operation. If additional diagnosis time is required, for fault tracing and accurate repair, approval shall be obtained from the Warranty Technical Adjudicator. All such requests shall be substantiated by a comprehensive description of what needs to be done to gain access to the problem. Dealers shall not claim reimbursement for duplicate, repeat, or shop comeback repairs resulting from improper diagnosis or incorrect service work. Dealers are responsible for the proper diagnosis and satisfactory completion of all service repair work. The Dealer shall absorb expenses resulting from poor workmanship and write off the expense to policy adjustment. Only Genuine Nissan Parts supplied by Nissan S.A. for use on Nissan vehicles are to be used for covered repairs. Any Genuine Nissan Part or accessory installed on a vehicle to correct a problem which does not repair the vehicle must be removed and returned to inventory. Nissan S.A. may chargeback any previously paid claims which, upon investigation, are found to be a result of improper diagnosis or incorrect service work.

8-D MECHANICAL BREAKDOWN DEFINITION

The New Vehicle Limited Warranty Policy covers repairs of mechanical breakdown by components listed in the policy. Mechanical breakdown means the inability of a covered part(s) to perform the function(s) for which it was designed, due solely to defects in materials or faulty workmanship by the manufacturer. Mechanical breakdown does not include damage due to negligence, accident, gradual reduction in operating performance due to normal wear and tear, of the component.

EFFECTIVE DATE

OCT/2012

SUBJECT

WARRANTY CLAIM APPROVAL CONDITIONS

SECTION

8

SUPERSEDES

JUN/2012

PAGE

3 of 5

8-E TOWING COVERAGE POLICY Towing expenses may be covered under warranty provided that the vehicle is serviced and maintained as per the required servicing intervals. The towing expense coverage is limited to the nearest Nissan Dealer only. Approval for assistance, if any, shall at all times be obtained from the Customer Care Department. Once approved a Goodwill claim can be submitted for the costs. Towing is reimbursed at actual cost, up to the maximum benefit per breakdown. Multiple towing is not covered beyond the maximum benefit. Towing charges are not subject to Dealer markup. The towing invoice and approval detail shall be recorded on the sublet capture section of the claim input document.

8-F NON AVAILABILITY OF PARTS Should parts not be available for warranty repair work, and should such part/s only become available after the vehicle warranty has expired, a Goodwill claim to which a copy of the original repair order as well as a copy of the parts order is attached shall be submitted. Authorisation for the submission of this type of Goodwill claim is to be obtained through the Customer Care Department.

8-G COMPLETE UNIT REPLACEMENT POLICY

Complete unit assemblies may not be replaced as a whole, if individual parts are available through Parts and Accessories. In instances where individual parts are not available Dealers are to submit a copy of the relevant Nissan S.A. Parts Department invoice as proof of non-availability of such component part/s.

In this instance the necessary authority shall be obtained from Warranty Adjudicator.

Components that form an assembly, for which loose serviceable parts are not provided, shall be considered as replaceable components and shall be treated as such.

EFFECTIVE DATE

OCT/2012

SUBJECT

WARRANTY CLAIM APPROVAL CONDITIONS

SECTION

8

SUPERSEDES

JUN/2012

PAGE

4 of 5

8-H COMPONENT SERVICE POLICIES

Dealers shall present defective proprietary components to their local proprietary agents where applicable. Dealers shall not refer Nissan vehicle owners to proprietary agents. Dealers shall act at all times on behalf of the Nissan vehicle owners. Local air conditioners, fitted as original equipment, are warranted by the manufacturers. Should the manufacturer not be represented in the Dealer‟s franchised area, any local air-conditioning repair agent may repair such defective unit on condition that the Dealer obtains an authority number from the manufacturer branch/agent nearest to the Dealership prior to such repair/s being undertaken. Repairs to imported air conditioners, fitted as original equipment, are claimable from Nissan S.A. All imported air conditioners shall be repaired by any local air-conditioning repair agent in the Dealer‟s franchise area. Such warrantable repairs shall be claimable from Nissan S.A. on a subcontract basis and such claims shall at all times comply with the warranty system requirements. Audio equipment, fitted as original equipment, is warranted by the manufacturers and all claims must be submitted to the relevant manufacturer or his appointed local agent. Batteries are warranted by the battery manufacturers and all battery claims must be submitted to the relevant battery manufacturer or his appointed local agent. Bosch injection equipment, fitted as original equipment, is warranted by the manufacturer and all warrantable diesel injection pump repairs must be submitted to the relevant manufacturer or his appointed local agent. Dealers shall not dismantle/repair fuel injection units that are under warranty. Any unauthorised interference with the pump mechanism will immediately invalidate the manufacturer‟s warranty. Radiators are warranted by the manufacturer. All claims must be submitted to the radiator manufacturer or his appointed local agent. Locally manufactured starter motors and alternators are warranted by the respective manufacturers. All starter motor and/or alternator unit claims for original equipment replacements where the manufacturer is not represented shall be submitted to Nissan Warranty Claims Department. Repairs to imported starter motors and/or alternators are claimable from Nissan S.A. Dealers shall at all times dismantle/repair imported starter motor/s and/or alternators. Complete assembly replacements shall not be claimable from Nissan S.A. The defective part/s only shall be replaced and claimed for in accordance with the warranty procedures.

EFFECTIVE DATE

OCT/2012

SUBJECT

WARRANTY CLAIM APPROVAL CONDITIONS

SECTION

8

SUPERSEDES

JUN/2012

PAGE

5 of 5

Tyres are warranted by the tyre manufacturers and all tyre claims shall be submitted to the relevant tyre manufacturer or his appointed local agent/representative.

R35 (GT-R) Wheel and Tyres Only recommended GT-R wheel and tyres (GT-R Special specification parts) should be fitted to a Nissan GT-R. The use of non Nissan GT-R special specification wheel or tyres or damages or failures caused by tyre replacement by a non-certified tyre shop, is not covered by the manufacturers warranty.

Components as listed below shall where possible be repaired and not replaced:

Brake disc rotors shall be skimmed „onboard‟ where necessary.

Any other components as advised by NSA through Warranty or FQI Bulletins.

EFFECTIVE DATE

OCT/2012

SUBJECT

CLAIM REIMBURSEMENT POLICIES

SECTION

9

SUPERSEDES

JUN/2012

PAGE

1 of 3

9-A WARRANTY LABOUR RATE

Warranty labour rates are revised annually based on each dealer‟s retail labour rate being calculated individually by using Nissan S.A.‟s recommended retail rate in each Dealer‟s area.

9-B PARTS REIMBURSEMENT POLICY Warranty part prices are calculated on the Dealer Net Cost plus a Five percent-handling fee. The parts discount structure for all warranty claims is the Retail Price less discount percentage as determined by Nissan S.A. on the date of repair.

Note: - Regardless of whether a part is purchased from the P&A warehouse or through another Dealer the percentage discount payable through the Warranty System will remain the same. Under no circumstances will a difference in the parts discount from one Dealer to another be claimable.

9-C SUBLET REPAIR REIMBURSEMENT

In the event of a Dealer being unable to perform a particular warranty repair in its own workshop, Nissan S.A. may in its discretion compensate the Dealer for reasonable outwork expenses incurred. Repairs including specialty work sublet to independent shops shall be submitted at Dealer cost. No Dealer markup is allowed. Costs should be no greater than the amount normally claimed by the Dealer for the same repairs using Nissan S.A‟s flat rates. Various subcontracting codes have been devised to facilitate completion of warranty claims. These codes must be quoted correctly at all times for the expeditious processing of claims. Warranty work subcontracted must be claimed from Nissan S.A. by way of an invoice from the subcontractor. The sublet invoice shall at all times reflect the full vehicle information as well as the full description of:

The main failing component

The actual cause of the failure and due to what and

Corrective action taken. Repairs done under subcontract must be indicated on the claim form by using the correct sublet code for each repair. Dealers must ensure that subletted work is carried out to Nissan quality standards and that the warranty coverage is equal to Nissan‟s.

EFFECTIVE DATE

OCT/2012

SUBJECT

CLAIM REIMBURSEMENT POLICIES

SECTION

9

SUPERSEDES

JUN/2012

PAGE

2 of 3

9-D NISSAN FLAT RATE SCHEDULE/CD TERMS

FLAT RATE SCHEDULE This represents the time required by qualified technicians having experience of Nissan vehicles to perform the complete repair operation including all necessary testing, using generally available hand tools, diagnostic equipment, and Nissan special service tools. The times are based on the use of genuine Nissan parts, and the recommended repair procedures described in the relevant Service Manuals, or other service publications. Flat rate time allowances cover the following:

Normal diagnostic time Normal diagnostic time is scheduled in all established flat rate times.

Repair time Actual repair operation, removal, disassembly, measuring, inspection, reassembly, installation and adjustment, etc.

Preparation time Moving the vehicle in and out of the work shop, preparation and arrangement of parts, tools, special service tools, auxiliary materials, and the necessary equipment and cleaning of the vehicle and work bay, etc.

Marginal time allowance Personal allowance, skill level allowance, contingency allowance (vehicle age and condition, etc.)

The basic time unit in the Flat Rate Time is 0.1 hour (6 minutes).

SPECIFIC TERMS In the operation description, specific terms are used to identify the various types of repair work. These terms are defined as follows:

R&I (REMOVE AND INSTALL) The removal of a part or assembly, the reinstallation in the same position using the same part or assembly and performance of all related work such as any inspection, adjustment, cleaning or lubrication operation etc.

RP (REPLACE) The removal of a part or assembly, the installation in the same position of a new part or assembly and the performance of all related work such as any inspection, adjustment, cleaning or lubrication operation etc.

EFFECTIVE DATE

OCT/2012

SUBJECT

CLAIM REIMBURSEMENT POLICIES

SECTION

9

SUPERSEDES

JUN/2012

PAGE

3 of 3

O/H (OVERHAUL) The removal and complete disassembly of an assembly unit, the inspection and cleaning of all components, the re-assembly of the unit replacing malfunctioning parts and installing new seals, gaskets, etc., as specified, the reinstallation of the unit and the performance of all related work such as any inspection, adjustment, cleaning or lubrication etc. The total amount a Dealer can charge Nissan S.A. is based on the Nissan Warranty Flat Rate Time (FRT) or amending bulletin/s specified times. To calculate this amount, multiply the flat rate time by the Dealer‟s current, Nissan approved labour rate. Claimed operation code(s) must be consistent with the repair performed and/or parts replaced. For the applicable Flat Rate Schedule for Japan/N.S.A. Model variants, refer to the latest FRS CD for details.

9-E MINIMUM CLAIM VALUE When a repair is covered under the basic new vehicle limited warranty there is no minimum limit restriction provided the repair/s justifies a warranty claim.

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

1 of 10

INTRODUCTION The life cycle of warranty claims begins with the creation of the repair order. A properly completed Repair Order is the key to accurate claims processing. If information is missing or incorrect, much time and effort may be required for correction. This is directly translated into increased costs and delayed reimbursements. This section follows each step in a claim‟s life cycle and explains what each person needs to do to properly complete the Repair Order and prepare the claim for submission. Many persons within the Dealership and Nissan S.A. play important roles in the proper handling of Repair Orders and claims. The persons typically involved include:

Service Advisor/Receptionist

Technician

Claims Administrator

Service Manager

Parts Manager

Nissan Warranty Adjudicator Each person is responsible for giving or recording accurate information. Throughout the life cycle of a claim, it is critical for the right person to provide the right information at the right time.

10-A TYPES OF REPAIR ORDERS The traditional repair order is a three or four – part form which contains a final, hard copy. While the style of repair order may differ slightly between Dealers, Commercially available repair order forms are all serially numbered and provide space for the information detailed in this section under “completing the work order”. Repair order forms from Nissan S.A. for example, meet Nissan standards. By using the proper repair order, the Dealer can perform: Customer to pay, internal, and warranty work on the same repair order. The advantages of having all types of work on the same repair order are:

Reduced paperwork

The Customer sees all types of repairs on one repair order. Blank repair orders must be sequentially numbered and stored by the Dealer in numerical sequence.

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

2 of 10

Some Dealers use completely electronic methods for creating repair orders. The procedures for creating electronic repair orders differ with the software supplier, but it is important to note that exactly the same information required for a paper repair order is also required for an electronic repair order. Repair orders which are generated and stored electronically must be easily retrievable by repair order number and the VIN number. Dealers using an electronic repair order system must restrict the number of individuals who can update a repair order.

10-B INITIATING/CLOSING REPAIR ORDERS

Each time a Customer brings a vehicle into the Dealership for service or repair, a new Repair Order is initiated. Repairs are normally completed during the same business day, the Repair Order is then closed and the vehicle is returned to the Customer. Dealers shall adhere to the following guidelines for initiating and closing warranty-related Repair Orders. Once initiated, the Repair Order should remain open until the Technician has completed the repair. At that time, the Repair Order should be closed. Mandatory Customer & Vehicle information required on a Repair Order:

Customer name

Customer address

Contact telephone number

Customer complaint

Customer signature

VIN (Vehicle Identification Number)

Engine number

Registration number

Odometer reading

Retail sales date The Repair Order Close Date MUST reflect the date the Technician completed the repair, NOT the invoice date or the date the warranty claim is filed. If parts are being ordered for a vehicle that is safe to drive and the parts are not available during the same business day, the Customer should be notified, the Repair Order endorsed, and the vehicle returned to the Customer, at which time the Repair Order is closed. Only in the case where a vehicle is NOT safe to drive should a Repair Order remain open while awaiting parts.

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

3 of 10

When the parts are received, the Customer should be contacted and upon their return, a new Repair Order initiated. Since all transactions between the Dealer‟s workshop and the Customer are recorded on the repair order, it is of absolute importance that all details are accurately and legibly recorded.

10-C AFTERSALES STANDARDS FOR WARRANTY CONTROL

During the claims processing cycle, many individuals have specific responsibilities and provide specific information on the Repair Order. These responsibilities are described in this section under the Responsible Areas. All of these responsibilities must be carried out regardless of who the Dealer assigns to each. Irrespective of who at the Dealership completes the Repair Order, incorrect or inaccurate information may result in chargeback.

10-C 1a SALES HANDOVER – Warranty information The customer must be provided with a full explanation of the vehicle Warranty requirements and conditions, as stated in the Warranty Information and Service Booklet (WIMB).

10-C 1b SALES HANDOVER – Vehicle service obligations The customer‟s obligations towards the servicing of their vehicle must Be fully explained. This applies to all new and used vehicles still within The vehicle warranty period.

10-C 2a SERVICE RECEPTION – Customer signature The customer‟s (or their authorized agent‟s) signature and date signed must be Obtained on the repair order, prior to the commencement of the repair. The authorized customer‟s agent cannot be any person acting on behalf of the dealer. This signature confirms that all their concerns are accurately recorded and Provides authority to investigate each concern listed on the repair order. All work With and withoutappointment, roadside assistance/recovery, collection/delivery, and internal work are included in this requirement. For internal work a departmental manager must sign. Where the driver is not the customer‟s authorized agent this must be indicated on the repair order. In these cases a documented record (e.g. customer order, e-mail message, letter of approval) confirming the customer‟s authorization must be attached to the repair order.

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

4 of 10

The Service Advisor/Receptionist shall also confirm that the repairs performed coincide with the Customer's original complaint and repair needs.

10-C 2b SERVICE RECEPTION – Booking system A Nissan corporate workshop booking diary (appointment control tool), or approved alternative booking record is required to confirm the customer booking, appointment date and all work requested (e.g. maintenance, repair, bodywork etc.). This has to be retained in date order for a minimum of three years (or loonger if required by law). For computerized systems a secure storage media cust be used that will enable a reprint to be obtained for any date within the three year period. All customer visits are to be recorded in the daily booking system, including all work with and without appointment, roadside assistance/recovery, collection/deliverey and internal work.

.

10-C 2c SERVICE RECEPTION – Related repairs In case of repairs related to a previous repair order, all cross-references to relevant previous visits / repair orders are to be included on the current repair order.

10-C 2d SERVICE RECEPTION – Warranty validity It must be confirmed that the vehicle is within warranty, sold/registered in South Africa or the Southern African Postal Union and has a completed Warranty Booklet and Maintenance Record. The manufacturer‟s responsibility must be established for the repair (by inspection of the vehicle by workshop staff) prior to advising the customer that the requested repair is covered by warranty.

10-C 2e SERVICE RECEPTION – Recall / service campaigns Any outstanding Recalls or (first service opportunity) Campaigns must be identified, thus enabling any necessary work to be carried out whilst the vehicle is in the workshop.

10-C 2f SERVICE RECEPTION – Service history The service history of all vehicles must be checked prior to any warranty repairs commencing. This will establish whether lack of or improper servicing could have contributed to or caused the failure.

10-C 2g SERVICE RECEPTION – Customer concern The customer‟s reported concern must be based on exactly what the Customer has said and accurately recorded on the repair order to enable workshop staff to carry out an accurante diagnosis. This must include in a clear and concise manner the symptoms and circumstances detailed by:

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

5 of 10

- What does the customer experience, is it seen, heard or felt? - When does it occur e.g. engine, driving, road and weather conditions, etc. - Where as precisely as possible on the vehicle is the concern observed? - How often is it experienced, e.g. all the time, intermittently, since new, etc? Where diagnostic sheets are used they must be attached to the repair order. If the customer‟s concern is identified via a test drive the results of the test drive must be documented on the repair order as above (what, when, where, how).

10-C 2h SERVICE RECEPTION – Customer and vehicle details

The repair order must contain the customer‟s name and address (including postcode, where appropriate). All relevant vehicle details must be present including full model description, VIN number and licence plate number. Any changes to this information must be updated as necessary.

10-C 2i SERVICE RECEPTION – Unused space on the repair order

For hand written repair orders all unused space after the last recorded concern should be ruled-off before the customer signs the repair order. For DMS printed repair orders the last printed concern is considered the last item and ruling off is not required. Any hand written entries after this must be individually signed by the customer and ruled-off. Ruling off enables a clear distinction between the original customer request(s) and any additional work idenfified by the workshop.

10-C 2j SERVICE RECEPTION – Repair orders

Repair orders must be allocated in serial number sequence assigned by the dealer‟s DMS. The print date must be recorded on the repair order the DMS. Periodic reviews should be carried out of identify any that are missing. Any copies or duplicates of repair orders must be clearly marked. Where two or more repair orders are raised for the same or a related repair on one vehicle, each must be cross-referenced with the other (e.g. retail and warranty). .

10-C 2k SERVICE RECEPTION – Staff training

All customer facing staff should undergo training to ensure they are fully conversant with Nissan Warranties.

10-C 3a WORKSHOP CONTROL – Fault diagnosis

Adequate diagnosis must be carried out prior to any warranty repairs being commenced. This will enable any manufacturer‟s responsibility to be determined. In the event of the diagnosis revealing poor workmanship carried out by a dealer or third party, customer misuse, wear & tear, a characteristic or a defect commensurate with the age & mileage of the vehicle, the appropriate party (not warranty) should be informed to authorize the repair. .

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

6 of 10

10-C 3b WORKSHOP CONTROL – Prior authority

Prior authorization must be obtained, before the work commences, for those repairs specified in the Warranty Policy and Procedures Manual and bulletins.

10-C 3c WORKSHOP CONTROL – Add-on repairs

Written authority must be obtained from the workshop manager or equivalent for each individual add-on repair that was not originally requested by the customer, but subsequently identified in the workshop. Every add-on repair must be authorized by the workshop manager or equivalent‟s signature together with the workds <<checked and authorized>> on the repair order prior to the repairs being performed. (These repairs should only relate to legal or safety items or where a more expensive repair would result if not undertaken).

10-C 3d WORKSHOP CONTROL – Control of repair orders

Technicians should only be in possession of one repair order at a time, or one set per vehicle where multiple repair orders are used(e.g. one for retail and one for warranty). All repair orders for vehicles not being worked on must be collected (e.g. at the end of the day, parts not available, or road test required) and ensure the „timeoff‟ is recorded on the repair order.

10-C 4a TECHNICIAN – Model and VIN number

The Model and VIN code on the repair order must be checked to ensure it corresponds to the vehicle being worked on. Where the Model or VIN code are not present, the appropriate details should be recorded from the vehicle onto the repair order.

10-C 4b TECHNICIAN – Vehicle mileage

The current mileage of the vehicle must be present and accurate on all (warranty) repair orders. Where the mileage has been pre-printed on the repair order it should be initialed as correct or modified as appropriate.

10-C 4c TECHNICIAN – Time recording

The full date and time for all warranty repairs must be accurately and logically recorded on the repair order using a mechanical, electronic or computerized time recording system. The on/off times for all repairs must show Date/Month/Time (e.g. 11 February 08:32). The off/on times for all rest breaks, waiting for parts and overnight (when applicable) must also be recorded. Time recordings must be cross-referenced to the reception description and technician‟s report. Where computerized time recording systems are used appropriate controls must be in place to prevent unauthorized manual amendments to the records. Any manual amendments must be traceable by system audit records/reports and

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

7 of 10

authorized by the workshop manager or equivalent‟s signature together with an explanation of the reason for amendment. All warranty work must be recorded separately from other non-warranty items (e.g. service/repairs). The only exception to this is when the repairs are covered by flat rate time and are in a related area of the vehicle where the work involved in one repair overlaps with the other. The time for warranty repairs involving „straight time‟ must always be recorded individually and separate from any other item.

10-C 4d TECHNICIAN – Technician’s report

A first hand technician‟s report must be completed on the repair order for all (warranty) repairs undertaken. It should identify the technician‟s name and/or payroll number and be signed by the technician. The report must provide concise details of the Fault, Cause and Rectification of each (warranty) repair and be cross-referred to the repair item entered by reception. (Fault – confirmation of the customer‟s reported concern, or otherwise, as identified by the technician. Cause – diagnosis of the cause of the fault, including any relevant measurements or readings taken / reference to bulletins etc. Rectification – details of the repair method followed, and results of the repair, i.e. confirmation of success or otherwise.) A supplementary report may be written by a technically qualified workshop manager either to provide a translation of a report not written in the local language or to add additional information relevant to the repair. This supplementary report should be signed by the workshop manager. Under no circumstances may the first hand report of the technician be added to, modified or deleted (crossed out).

10-C 4e TECHNICIAN – Diagnostic measurements

All Consult, diagnostic and other test results must be recorded on the repair order and, where relevant, the printout attached. Diagnostic test sheets must be completed, where required by Nissan, and returned as instructed.

10-C 5a PARTS DEPARTMENT – Genuine parts

Only genuine Nissan parts are to be used for warranty repairs and a parts purchase record must be available to support all parts used.

10-C 5b PARTS DEPARTMENT – Replacement parts

All parts used for warranty repairs (including fluids, gaskets etc.) must be recorded on a parts issue record (electronic or hardcopy) and invoice. These

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

8 of 10

invoices should reference the parts numbers, associated repair order / invoice number and where available the item or operation number.

10-C 5c PARTS DEPARTMENT – Displaced parts

All displaced warranty parts must be adequately labeled, stored, returned or disposed of as requested by Nissan (disposition of parts can be undertaken 90 days after claim payment, parts disposed of should be in such a condition where they cannot be reclaimed by any party whatsoever for subsequent re-use) and bulletins.

10-C 5d PARTS DEPARTMENT – Genuine Parts / Accessory Claims

Original documentary evidence must be available to support any parts / accessory cloims for genuine Nissan parts. This includes original fitment repair order and invoice, in the case of parts/accessories originally purchased by the customer.

10-C 6a ADMINISTRATION – Claiming for warranty work

Claims are only to be raised for repairs covered by Nissan warranties and from repair orders that are complete in every respect. The relevant supporting documentation must also be available, e.g. the technician‟s report, time recordings, parts issue records, sub-contractor‟s invoices, etc.

10-C 6b ADMINISTRATION – Straight time Claims for „straight time‟ must be reasonable and verifiable by reference to the technician‟s report, elapsed time recorded and authorized by Nissan where required. The time Claimed cannot exceed the elapsed time recorded on the repair order for the individual repair.

10-C 6c ADMINISTRATION – Claim coding The claim description and coding must accurately reflect the repair carried out, and be supported by the technician‟s report and time recorded.

10-C 6d ADMINISTRATION – Sub-contract claims Claims for subcontract work must not exceed the subcontractor‟s invoice value, including any subsequent rebates or discounts. The sublet value must be submitted excluding VAT. The original subcontractor‟s invoice must be available. The invoice must provide a detailed explanation of the concern and work carried out including vehicle model, VIN (or licence plate) and repair date information.

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

9 of 10

10-C 6e ADMINISTRATION – Warranty payments

A warranty job register should be maintained detailing labour/parts/sublet amounts claimed and approved. The register should be updated on a daily basis to enable prompt action to be taken to resolve any claim payment queries. Credit notes should be reconciled regularly to ensure that amended or rejected claims are posted to the correct accounts as appropriate.

10-C 6f ADMINISTRATION – Warranty Invoice A warranty (internal) invoice, or direct equivalent, should be produced for all warranty repairs prior to the claim being submitted to Nissan, and in any event before the end of the Repair month. The invoice must contain the following information: invoice number, invoice date, repair order number, customer name/address or customer reference, vehicle details, description of work carried out, labour value, part numbers and description, parts quantity, parts pice, sublet value (including administration allowance), total invoice amount.

10-C 7a SERVICE MANAGEMENT – Dealer Management System Access to the DMS or Vehicle History File, must be provided to the relevant after sales department personnel in order that VIN enquiries, warranty claim and query processing are not delayed.

.

10-C 7b SERVICE MANAGEMENT – Claim form

When the warranty claim is complete, the claim form should be reviewed by the workshop manager or equivalent to confirm the claim‟s compliance to Nissan‟s Warranty Policy. In submitting a warranty claim, the dealer confirms the claim meets all WPPM requirements.

10-C 7c SERVICE MANAGEMENT – Claim submission

All warranty claims should be submitted to Nissan as soon as possible (ideally on the day the repair is completed) to enable claims to be processed promptly, thus improving the dealer cash flow, and enabling Nissan to react quickly to product concerns. Regardless of this, claims must be fully processed within the submission time limit(s).

10-C 7d SERVICE MANAGEMENT – Process management

Regular checks must be implemented to ensure all pre and post repair/claim procedures are operating effectively and within Nissan policy. In submitting a warranty claim, the dealer confirms the claim meets all WPPM requirements, including conditions for payment and potential recharge.

EFFECTIVE DATE

OCT/2012

SUBJECT

WORKSHOP ADMINISTRATION

SECTION

10

SUPERSEDES

JUN/2012

PAGE

10 of 10

10-C 7e SERVICE MANAGEMENT – Performance management

Productivity and efficiency records should be maintained for all technician‟s and productive staff, and should be reviewed on a regular basis. Extremes in performance, e.g. efficienciesin excess of 125% should be investigated as experience has shown this may be questionable due to a possible lack of control.

10-C 7f SERVICE MANAGEMENT – Retention of documentation

All information (repair orders, invoices, claim copy, etc.) must be retained for a minimum of 10 years after repair date (or longer if required by law), for warranty audit purposes.

10-C 7g SERVICE MANAGEMENT – Recalls and campaigns

All outstanding safety recall and technical (first service opportunity) campaigns must be completed opn a vehicle‟s first visit to the dealer following the announcement of the campaign. This includes all vehicles in for service/repair work and vehicles in new/used car stock.

10-C 7h SERVICE MANAGEMENT – Repairing dealer

All warranty repairs must be carried out at the authorized Nissan Dealer/Repairer, as per the franchise requirement. The only exceptions to this are emergency repairs out of normal Dealer opening hours and specialist sublet repairs where the Dealer does not have the appropriate facilities.

10-C 8a NISSAN WARRANTY ADJUDICATOR Various claim related procedures within the Warranty System requires approval from Nissan S.A.‟s Warranty Adjudicator prior to the repair being performed or the submission of the claim. When requested by the Dealer, the designated Nissan S.A. Warranty Adjudicator will review the situation and if warranted, will provide on-line approval as and when necessary.

EFFECTIVE DATE

OCT/2012

SUBJECT

RECORDS AND PARTS RETENTION

SECTION

11

SUPERSEDES

JUN/2012

PAGE

1 of 3

11-A RECORDS RETENTION

Dealers shall retain the following repair/claim documentation for at least Ten (10) years following the claim payment date:

All original accounting and hard copies of Repair Orders or electronic Repair Orders. If more than one Repair Order was used for a claim, the Repair Orders must be cross-referenced.

Traditional repair orders should be retrievable by the VIN number, while electronic repair orders must be retrievable by both the repair order number and the last 7 characters of the VIN number.

The hard copy of the repair order must reflect all the employees who logged time on the repair order and must be identified by name or employee number, and the date and hours worked. The flat rate time as from the eNEWS Online FRS function must also be included.

Diagnostic test result printouts (e.g., CONSULT, wheel alignment). The test results must be attached to the repair order hard copy.

Original sublet invoices must be retained, along with the record of payment.

A record of the parts issued must be retained. .

11-B PART/S RETURN PROCEDURE

When a warranty claim is processed the warranty system will indicate whether or not the part/s is to be returned to the Warranty Technical Adjudication Centre.

All warranty claim parts requested shall be returned to Nissan S.A.‟s Warranty Technical Adjudication Centre, within ten (10) days after claim finalisation.

It is a mandatory requirement that parts which are not required to be returned to Nissan S.A.‟s Warranty Technical Adjudication Centre be stored in a secured area for a period of ninety (90) days. Failure to comply with this requirement may result in the denial of the claim. Parts replaced under the warranty terms and conditions shall be properly tagged immediately to eliminate any possibility of claim denials or misrepresentation to Nissan S.A.

All parts replaced under warranty shall, as and when requested, be returned to Nissan S.A.; on acceptance of the claim the part shall become the property of Nissan S.A. Parts being returned shall in all cases be marked indicating the claim number and Dealer code on the actual part. A copy of the claim document placed in the Nissan approved waterproof envelope shall accompany the part/s. All Parts & Accessories claims, relating to parts that were replaced by a Nissan Dealer, shall be accompanied by a copy of the current & previous Repair Order.

EFFECTIVE DATE

OCT/2012

SUBJECT

RECORDS AND PARTS RETENTION

SECTION

11

SUPERSEDES

JUN/2012

PAGE

2 of 3

All warranty claim parts shall be properly drained, cleaned, packed and crated for transport. Special attention must be given to the packing of breakable parts. (Consignments/claims received damaged by battery acid spillage will be rejected outright) Complete units that have been disassembled to confirm replacement rather than repair must be re assembled ensuring that all inlet and outlet holes are closed up. It is vital that the packaging is done in such a manner that further damage is not done to the parts during transportation. It remains the Dealers responsibility to ensure that all consignments are securely packed and sealed in such a manner that the possibility of theft/and or damage is reduced. Nissan S.A. shall not be responsible for parts lost or damaged due to broken packaging en route to the Nissan S.A. Warranty Technical Adjudication Centre. Any financial loss resulting from parts consigned to, but not received by Nissan S.A. thus causing the rejection of warranty claims, shall be claimed from the delivery company by the Dealer. Nissan S.A. in conjunction with the various suppliers shall inspect and test all parts returned to the Warranty Technical Adjudication Centre or Supplier. Claims involving parts which are not found to be defective in material or workmanship (i.e. serviceable because the part is in good working order) or were damaged as a result of misuse, will be charged back at the end of the month during which the inspection and testing took place. In all such cases Nissan S.A. shall return, upon request, rejected claim parts/components to the Dealer “railage to pay”. Such parts are held until the end of the month following the month of rejection afterwhich they are scrapped.

Dealers who submit their claimed parts via a Nissan approved Courier are required to use the relevant Consignee address details and account number as indicated in the General Information Warranty Bulletin.

EFFECTIVE DATE

OCT/2012

SUBJECT

RECORDS AND PARTS RETENTION

SECTION

11

SUPERSEDES

JUN/2012

PAGE

3 of 3

11-C PART/S RETENTION PERIOD Dealers shall retain all non returnable claim-related replaced parts for a period of 90 days after the Dealer Monthly Statement shows the claims were paid. The claims-related parts are the property of Nissan S.A. As such, claims-related parts cannot be reinstalled on another vehicle or sold for profit by the Dealer.

11-D PART/S STORAGE Parts shall be clean and free from oils or other liquids. Tag the parts using the Nissan approved Warranty Part Tag. When tagging claim related parts, the Dealer shall ensure that all the detail as per Tag requirements are written legibly on the Warranty Part Tag. All parts shall be stored in a clean readily accessible storage area of the Dealership. The storage area would be divided into four sections A, B, C AND D, each section belonging to one month, cards can identify the age of the month i.e. 0, 1, 2 and 3, and the cards will be moved up one month at each month‟s end. Month 3 being those parts ready for disposal.

11-E PART/S SCRAPPING Parts shall be destroyed on a ninety (90) day basis in conjunction with reconciling the Dealer Credit Status Report with parts shown as being paid. Nissan S.A. recommends that Dealerships implement a procedure for identifying and scrapping the appropriate parts. This procedure shall ensure that only those parts eligible for scrapping are disposed of and that an audit trail exists.

EFFECTIVE DATE

OCT/2012

SUBJECT

SUBMITTING WARRANTY CLAIMS

SECTION

12

SUPERSEDES

JUN/2012

PAGE

1 of 7

OVERVIEW By submitting a claim, the Dealer certifies that:

The parts and/or labour submitted for reimbursement on the claim were furnished at no charge to the vehicle owner.

These repairs were not required due to accidents, misuse, or alteration/ modification of the vehicle.

All information on the claim is accurate. All claims require a completed repair order. Certain types of claims must be supported by additional documents. When required, these documents may need to be attached to the repair order; others must simply be shown at time of service or kept on file with the claim. A claim is ready to be submitted to Nissan S.A. using eNEWS after the repair order has been prepared and checked by the Claims Administrator, and a claim number has been entered in the claims register. Before submitting the claim to Nissan S.A., the Claims Administrator should verify all information on the repair order. This may involve the Service Manager, Service Advisor/Receptionist or Parts Department providing information missing from the repair order, or correcting information which appears to have been entered in error. This is especially important for Symptom and Trouble Codes, Primary Failed Part (PFP) numbers and Operation numbers. These key entries must correctly describe the work performed and how the claim should be submitted. Before submitting any claim to Nissan S.A., make sure the documents required for each category of claim have been properly completed and assembled. The eNEWS system is Internet based which is used to transmit information, including claims, between Dealers and Nissan S.A. Each Dealer is responsible for providing eNEWS compatible computer hardware and software. All eNEWS compatible programs must meet the specifications set by Nissan S.A.‟s General Information Systems (GIS) Department.

12-A WARRANTY CLASSES The Warranty System has been developed around various claim classes that will facilitate proper claim processing. The various classes are:

EFFECTIVE DATE

OCT/2012

SUBJECT

SUBMITTING WARRANTY CLAIMS

SECTION

12

SUPERSEDES

JUN/2012

PAGE

2 of 7

0 = NEW VEHICLE WARRANTY Involves a repair action where the cause of the problem is either the failure of a specific part or body/paint defect on vehicles still covered under the new vehicle limited warranty. 1 = CAMPAIGN A Campaign type claim involves completion of an inspection or repair action according to instructions published in a Campaign Bulletin, which involves the use of special codes and/or specific parts. 3 = GENUINE PARTS AND ACCESSORIES Warranty claims for Genuine Nissan parts or Nissan approved accessories previously installed by an authorised Nissan Dealer that failed during the Parts and Accessory Warranty period. 6 = PERFORATION FROM CORROSION WARRANTY Repairs to a vehicle within the applicable 3 years/unlimited mileage period. 7 = PAINT WARRANTY Repairs to a vehicle within the applicable 3 years/100,000km period. G = GOODWILL OR C = CUSTOMER POLICY Claims for repairs on vehicles that are in or out of the warranty period. Goodwill or Customer Policy claims are also those requests sent to Nissan S.A., which are not covered by warranty. Goodwill/Customer Policy adjustments are made as a gesture to motivate owner loyalty and increase repeat sales. These claims require authorisation from the Customer Care Department Claims for expenses not normally associated with in warranty repairs.

T = IN TRANSIT Claims on vehicles damaged during transportation to the dealer by the delivering Transport Company.

EFFECTIVE DATE

OCT/2012

SUBJECT

SUBMITTING WARRANTY CLAIMS

SECTION

12

SUPERSEDES

JUN/2012

PAGE

3 of 7

12-B SYMPTOM CODE EXPLANATION (CS) The Symptom Code is a two-character code that describes what the Customer said was wrong with the vehicle. This code is usually assigned by the Service Advisor/Receptionist at the time the repair order is initiated. If multiple jobs are recorded on the Repair Order, each job must have its own Symptom Code.

12-C PRIMARY FAILED PART CODE EXPLANATION (PFP) The Primary Failed Part Code identifies which part caused the problem. Even if more than one part is involved, enter the 12-digit alpha-numerical code indicating the part which caused the failure, irrespective of whether it is replaced or repaired. Note: The part which caused the failure is not necessarily identical to the replacement part. The PFP Code should be the full Part Number of the failed part as listed in FAST Other commonly used non-mechanical PFP‟S are: P0002 = Paint repairs – Class Code 7 claims only. P0001 = Rust repairs – Class Code 6 claims only.

12-D TROUBLE CODE EXPLANATION (CT) The Trouble Code is a two-digit code that reflects what the Technician found wrong with the vehicle. This code is assigned at the time the problem is diagnosed. If multiple repairs are performed on a single repair order, a separate Trouble Code to each repair shall be assigned.

12-E LOCATION CODE EXPLANATION The Location Code is a two (2) digit code representing the area or location of the repair contained within a special operation number. Location Codes are primarily for Paint & Rust claims.

12-F SUBLET CODE EXPLANATION The Sublet Code is a three (3) digit code used to identify the type of repair performed by the specialist repair agent.

EFFECTIVE DATE

OCT/2012

SUBJECT

SUBMITTING WARRANTY CLAIMS

SECTION

12

SUPERSEDES

JUN/2012

PAGE

4 of 7

12-G FLAT RATE/OPERATION CODE EXPLANATION The Operation Code is a six-character code that reflects what work was performed to repair the problem. The operation code should reflect the repair performed as noted by the Technician on the hard copy of the repair order. Operation codes include a reasonable diagnostic time allowance.

The Flat Rate Time reflects the amount of time Nissan will reimburse for completing the repair. A flat rate hour is subdivided into tenths of an hour. Unrelated items shall not be claimed for on the same claim. Separate warranty claims shall be submitted for each claimable repair performed.

12-H CLAIM SUBMISSION USING eNEWS-SA After the repair order has been coded, verified, and all approvals received, the claim is ready to be submitted to Nissan S.A. A series of interactive screens guides the Dealer in submitting claims over the eNEWS system. The Claims Administrator captures data into a terminal, and then prints the data to verify the information and provide a record of the transaction. This printout can be used to update the claims register. All Nissan S.A. claims are entered directly into the eNEWS system using information taken from the repair order. Accuracy is important.

Since the repair order is the primary source of information for completing a claim, it is critical that the accuracy of the information be verified prior to submitting the claim.

12-I VEHICLE IDENTIFICATION NUMBER (VIN) A code unique to a specific vehicle. This is a 17-digit alpha-numeric code which is stamped in the VIN plate mounted to the vehicle, mostly in the engine compartment. Refer to the Owner‟s Booklet for the exact location.

12-J MILEAGE A 7-digit value indicating the distance driven by the vehicle between production and the end of the claimed repair. This is the odometer reading in kilometers except when the odometer malfunctions, malfunctioned, or has been altered or replaced in which case the actual distance must be calculated and given.

EFFECTIVE DATE

OCT/2012

SUBJECT

SUBMITTING WARRANTY CLAIMS

SECTION

12

SUPERSEDES

JUN/2012

PAGE

5 of 7

When the odometer is altered or replaced this must be recorded in the WIMB and in the Vehicle History File.

12-K SOLD DATE A 6-digit value indicating the Warranty Start Date, except for unsold vehicle where the Sold Date equals the actual Repair Date (as well as the mileage 000000).

12-L REPAIR DATE An eight-digit number indicating the date when the incident is confirmed and it can be considered as the date when the RO has been opened. It should be the same date entered on the warranty claim

12-M CLAIM NUMBER A 7-digit alpha-numeric code which identifies a claim among others from the same dealer. A claim number must be unique relating to only one specific incident. It must remain unchanged in case a claim is resubmitted.

12-N PARTS MILEAGE A 7-digit value indicating the distance driven by the vehicle between production and the moment on which the part which is subject of the claim was originally installed. (Applies only for claims to Genuine Parts and Accessories Warranty)

12-O PARTS INSTALL DATE A 6-digit value indicating the date on which the part which is the subject of the claim was originally installed. (Applies only for claims to Genuine Parts and Accessories Warranty)

12-P PARTS QUANTITY A 3-digit value indicating the quantity per claimed Part Number.

12-Q ACCESSING eNEWS SUBMISSION/INPUT SCREENS

If and when on-line Adjudicator approval is required for the submission of a claim, the Dealer shall raise a Pre Authorisation claim on the system which will be automatically routed to the Adjudicator for consideration. On receipt of the Pre Authorisation the Adjudicator may resubmit it back to the Dealer requesting additional information, or he may approve or reject it. Each of these functions will change the status of a claim which will be reflected on the Dealer‟s main information screen on eNEWS.

EFFECTIVE DATE

OCT/2012

SUBJECT

SUBMITTING WARRANTY CLAIMS

SECTION

12

SUPERSEDES

JUN/2012

PAGE

6 of 7

12-R PROCESSING TIME PARAMETERS

Sufficient time should be afforded to Nissan S.A.Warranty Department to process claims and appeals submitted. Validation on warranty claims is carried out automatically through eNEWS. The following time processing parameters for claim submission and resubmission shall be strictly enforced. Any deviation from the prescribed parameters shall result in the rejection of a claim: Period in days: 1, Repair to submission 55 2, Repair to resubmission 65 There is no limit to the number of times submissions can be made per processing month, however it is useful to consider that processing actually happens once a day and that payment is made only once in each calendar month.

12-S VALIDATIONS

The validation of warranty claims is carried out systematically using automatic means as well as human assessment. For this a processing time of between one and in exceptional cases 14 days is foreseen. The validation reflects the stipulations of this WPPM and is constantly modified to get the best results. Approval of a claim constitutes no acceptance of liability by Nissan, nor does it create a precedent for future validations.

12-T SUBMISSION AMOUNT LIMIT For technical reasons the following applies:

Operation Code is claimed the claimed Labour Amount cannot be less than 1. Part Number is claimed the claimed Parts Amount cannot be less than 1. Sublet Code is claimed the claimed Sublet Amount cannot be less than 1.

EFFECTIVE DATE

OCT/2012

SUBJECT

SUBMITTING WARRANTY CLAIMS

SECTION

12

SUPERSEDES

JUN/2012

PAGE

7 of 7

12-U WARRANTY START DATE REVISION

The Warranty Start Date (WSD) is recorded on the Nissan South African system whenever a vehicle is Sold to a Customer (Retailed) and is automatically filled with the same Date Of Sale.

There are instances when this date may be corrected (i.e. Sale did not go through - due to the Customer not taking delivery of the vehicle) in which case it is possible to update the date, under the following two distinct definitions:

A.) If the period between the Sale to the Customer and the Date on which it is

registered in the Customer‟s name is between 0-30 days the Warranty Start Date update can be requested supported by the following:

WIMB (Warranty Information & Maintenance Booklet) copy showing updated WSD

Copy from the registration certificate

Copy of the PDI check sheet NSA General Manager Sales approval is necessary

B.) If the period between the Sale to the Customer and the Date on which it is

registered in the Customer‟s name is between 30-90 days the Warranty Start Date update can be requested supported by the following:

WIMB copy showing updated WSD

Copy from the registration certificate

Copy of the PDI check sheet

Battery voltage print-out NSA General Manager Sales approval is necessary

Should the period between the Sale to the Customer and the Date on which it is registered in the Customer‟s name exceed 90 days the Warranty Start Date (WSD) cannot be amended through the usual system and these cases will be handled on a case by case basis.

NSA Sales & Marketing Director approval will be necessary.

EFFECTIVE DATE

OCT/2012

SUBJECT

MANAGING AND TRACKING CLAIMS

SECTION

13

SUPERSEDES

JUN/2012

PAGE

1 of 1

13-A MONTHLY STATEMENT/CLAIMS RECONCILIATION The Dealer Monthly Statement (eNEWS – Claims Payment Report) can be printed at the end of each month. This report shows all warranty claims which have been paid during the current month. Each claim listed on the statement details the amount paid for Parts, Labour and Sublet. The parts amount will also contain the handling fee percentage. The monthly statement should be used in conjunction with the claims register, by the claims administrator, to reconcile Paid and outstanding claims.

Any debits or credits processed against a claim will appear on the Dealer‟s Sundries Account statement. At the end of each month, the claims administrator updates the claims register using the data as reflected on the monthly statement. The claims register, when maintained, provides instant information on the status of any claim, whether Paid, Rejected or Resubmitted after correction. It also permits reconciliation and validation of the balance of the warranty account at any time.

EFFECTIVE DATE

OCT/2012

SUBJECT

AUDITS

SECTION

14

SUPERSEDES

JUN/2012

PAGE

1 of 2

INTRODUCTION

To protect both Nissan S.A. and the Dealer from poor or improper business practices, Nissan S.A. or authorised representatives may perform an audit of Dealer claim records and supporting documentation. Such an audit involves the physical examination of Dealer records and can be initiated for a number of reasons, some of which include:

Invalid/fraudulent Customer activity

Any other activity deemed appropriate for audit by Nissan S.A.

During the audit the representative shall concentrate on the administration of documentation pertaining to repaired vehicles.

14-A AUDITING OF CLAIM RECORDS

Nissan S.A. authorised representatives may examine a Dealer‟s claim records and supporting data. Upon review and examination, if a claim or portion of a claim is determined to not be in compliance with the provisions of this manual, a debit to the Dealer‟s account may result. A Dealer is required to substantiate paid claims for a period of three (3) years from date of payment.

14-B PERFORMANCE EVALUATION

The primary claims administration performance measure shall be based on, but not limited to, the following criteria:

Vehicle Delivery Inspection Documentation

Pre-delivery Inspection sheet

Customer vehicle handover checklist

Bulletin files

Customer/Vehicle history file

Vehicle history

Repair Order details

Time recording for additional work done not covered by the standard time allowed

Costing procedure

Invoice details

Authorisations/Sublets

Repair Order additions/Defect Diagnosis

Parts control/returns

Warranty Claim Register

Nissan Payment Remittance advices

Payment reconciliations

Data processing

EFFECTIVE DATE

OCT/2012

SUBJECT

AUDITS

SECTION

14

SUPERSEDES

JUN/2012

PAGE

2 of 2

14-C DEALER NOTIFICATION

Warranty claim audits shall be conducted by Nissan South Africa‟s Warranty Department who will be totally responsible for all aspects of audits conducted at Dealer level. Audit notifications shall be sent to a Dealership by Nissan S.A. formally advising that an audit will be conducted.

14-D CHARGE BACK POLICY

If fraud or continual abuse has been determined at the close of an audit, or in instances where repairs/operations cannot be supported by appropriate records, or which do not conform to warranty procedures Nissan S.A. shall reserve the right to raise debits in reversal of any payment/s made to any Dealer in respect of warranty claim/s where discrepancies were found. Any chargebacks assessed will be based on the documentation substantiating the actual claim repair orders inspected and the related documentation. After the finalisation of the audit results, the chargeback amount if applicable, shall be applied as per Nissan S.A. Audit Policy

EFFECTIVE DATE

OCT/2012

SUBJECT

SERVICE LETTER CAMPAIGN

SECTION

15

SUPERSEDES

JUN/2012

PAGE

1 of 2

INTRODUCTION

It is Nissan S.A.‟s policy that correction of any defects in Nissan vehicles which require a safety or product related campaign shall be accomplished promptly and without cost to the vehicle owner. Nissan S.A. shall advise Dealers of safety or any other product related problems should such problems occur. Dealers are required, under the terms of the Dealer Agreement, to give priority to campaign work. Prompt completion of the work on all Customer vehicles is mandatory. Failure to properly or completely perform campaign corrections can involve heavy liabilities for Dealers as well as Nissan S.A. Dealer compliance applies to all eligible Customer vehicles presented for campaign corrections, regardless of where the vehicles were purchased.

15-A DEALER NOTIFICATION

Each campaign will be initiated by a Campaign Bulletin giving the Dealer full instructions, including:

Campaign parts availability

Correction procedures

Reporting instructions

Detailed lists of the model/job number or VIN of the vehicles

Names and addresses of the vehicle owners who reside in the Dealers Franchised area.

Claim information and codes for the recovery of a Dealer costs.

Dealers shall encourage vehicle owners to take their vehicles promptly to the most convenient Nissan Dealer for a no cost corrective repair by means of a letter, fax or telephone call after which a confirmation letter shall follow. When an owner is located in a remote area where there is no Nissan Dealer, the procedure will be to mail the owner a copy of the Campaign Letter with a request to have the correction made by his nearest Nissan Dealer. Receipts for costs incurred by the owner if any shall be paid by the selling Dealer and claimed accordingly.

15-B OWNER NOTIFICATION

The registered owner of each vehicle requiring modification/repair will be sent a letter by Nissan S.A. or the selling Dealer, describing the needed correction or inspection, urging that the work be done immediately and advising that any authorised Nissan Dealer will perform the work at no charge. The owner information letter will contain all information and details as per Nissan S.A. Technical Services Department recommended proposal.

EFFECTIVE DATE

OCT/2012

SUBJECT

SERVICE LETTER CAMPAIGN

SECTION

15

SUPERSEDES

JUN/2012

PAGE

2 of 2

15-C PARTS CONTROL AND DISTRIBUTION

Campaign parts shall be stocked by Nissan S.A. Parts and Accessories Department in sufficient quantities, to supply all Dealers in accordance with the affected number of vehicles by Region. Dealers shall order parts through the normal parts system unless otherwise instructed in the Dealer notification campaign Bulletin.

15-D REIMBURSEMENT POLICY

Dealer reimbursement for campaign parts, labour and/or sublet values, where applicable, will be on the same basis as normal factory-reimbursable repairs. A campaign claim shall be submitted to Nissan S.A. via the normal claims procedures. The submitted claim shall be processed and payment will be issued on the Dealer Monthly Statement Report.