HORN REPLACEMENT

The Highway Safety Act, as amended, provides that each vehicle which is subject to a recall campaign of this type must be adequately repaired within a reasonable time after the owner has tendered it for repair. A failure to repair within sixty (60) days after tender of a vehicle is prima facie evidence of failure to repair within a reasonable time.

If the condition is not adequately repaired within a reasonable time, the owner may be entitled to an identical or reasonably equivalent vehicle at no charge or to a refund of the purchase price less a reasonable allowance for depreciation.

To avoid having to provide burdensome remedies, every effort must be made to promptly schedule an appointment with each owner and to repair their as soon as possible. As you will see in reading the attached copy of the owner letter, the owners are being instructed to contact the Saturn Customer Assistance Center if their Retailer does not remedy the condition within a reasonable time, owners are instructed on how to contact the national Highway Traffic Safety Administration.

Saturn has decided that a defect which relates to motor vehicle safety exists in certain 1996 and 1997 model year Saturn vehicles. These vehicles were either produced or serviced with a horn assembly which may fail. As a result, the vehicle horn may either become inoperable or activate without pressing the horn button. Under certain conditions, heat could build up in the horn assembly and underhood fire could result without prior warning. To correct this condition, Saturn will replace the horn assembly.

Only selected 1997 Saturn vehicles in the following VIN range will require this campaign:

VZ235788 - VZ314099

In addition, certain 1996 and 1997 vehicles outside the VIN range indicated are also involved. A VIN listing of these vehicles is included in this bulletin.

You must verify campaign involvement through your AS400 system, or with the listing attached to this bulletin. It is important to note that campaign claims will only be paid on involved vehicles.

Owners of all involved vehicles will be notified of this campaign by Saturn. Saturn will also notify owners of vehicles which are within the VIN range, but involved in this action, that their vehicles are not involved. This will alleviate any concerns these customers may have regarding this issue. (Refer to the Involved and Non-Involved owner letters included in this bulletin.)

A list of vehicles assigned to you (Facility VIN Listing) , which our records indicate were sold by or shipped to you, (or are located in close proximity to your facility) is enclosed.

This listing contains:

The Facility VIN Listing (with owner information) is furnished to involved Retailers with the Product Campaign Bulletin. Although these vehicles are assigned to your facility, it is important to note that owners may elect to have their vehicle serviced at the Saturn Retail Facility of their choice.

Those Retailers not involved initially in this campaign will receive a message at the top of a blank Facility VIN Listing that states: NO VEHICLES ASSIGNED AT THIS TIME FOR CAMPAIGN 98C01.

These listings may contain owner names and addresses obtained from State Motor Vehicle Registration Records. The use of such motor vehicle registration data for any other purpose is a violation of law in several states. Accordingly, you are urged to limit the use of this listing to the follow-up necessary to complete this campaign. Those records updated with California DMV registration information will have the following message printed adjacent to the appropriate VIN: "OWNER INFORMATION UPDATED BY CALIFORNIA DMV; PUBLICATION PROHIBITED."

This bulletin does not contain a non-involved vehicle listing, therefore, it is imperative that you verify campaign involvement through the AS400 system. Please refer to "Vehicles Involved" above.

In order to minimize customer inconvenience and ensure the highest level of customer satisfaction, owners who live in a remote location from an open Saturn Retail Facility may be contacted by Saturn to arrange to have their vehicles serviced in a manner convenient to them. Therefore, you may notice that not all vehicles which were sold by you are on your Facility VIN Listing.

All unsold vehicles in Retailers' possession and subject to this campaign must be held at the retail facility and repaired per the service procedure of this campaign bulletin before owners take possession of these vehicles.

Retailers are to service all vehicles subject to this campaign at no charge to owners, regardless of mileage, age of vehicle, or ownership, from this time forward.

Owners of vehicles recently sold from your vehicle inventory are to be contacted by the Retailer and arrangements made to make the required correction according to the procedure contained in this bulletin.

In summary, whenever a vehicle subject to this campaign enters your vehicle inventory, or is in your retail facility for service in the future, please take the steps necessary to be sure the campaign correction has been made before selling or releasing the vehicle.

Saturn vehicles that have been sold by you, which may be closer in proximity to another Saturn Retailer, may still appear on your Facility VIN Listing. If either you or the vehicle owner determines that it is more desirable for a vehicle on your Facility VIN Listing to be serviced by another Saturn Retailer, or if the customer's address has recently changed, campaign responsibility may be transferred by completing the following:

A copy of the Campaign Vehicle Action Report is included for your reference. Additional copies can be ordered from Saturn Publications (1-800-828-2112, prompt 3, Item #S0397050 ). All changes to campaign responsibility will be reflected in your next Unfixed VIN Report.

All other changes in vehicle status (e.g., scrapped, stolen, etc.) are to be made in accordance with section 4.4.3 of the Retailer Service Reference Guide, "Notifying Saturn of Vehicle Status Change."

1. A pre-shipment of cooling fan control module assemblies required to perform this campaign has been automatically sent to you from Saturn Service Parts Operations (SSPO). These initial shipments are to aid the Retailer in campaign preparation and ensure minimal customer inconvenience. Further shipments will automatically be sent at a later date to fulfill your forecasted needs.
2. Should additional parts be required, please contact your Parts Support Analyst (PSA) and SSPO will expedite parts shipment. Please do not enter any orders for any part numbers listed without first contacting your PSA.
3. Required Parts:

4. The following incidental part is not likely to be required, however, SSPO will send two Horn Connector Kits to each Retail facility.

Retailers will scrap all replaced parts in a manner that ensures that they cannot be reused, remanufactured, or otherwise entered into the stream of commerce in the future.

As you know, Saturn's success hinges upon our ability to execute superior customer support throughout the ownership experience, especially when important corrective actions such as this are required.

It is imperative that every effort is made to accommodate the affected owners. Additionally, priority should be given to customer vehicles over retail inventory vehicles. If you have any questions, please coordinate with the Saturn Customer Assistance Center to help ensure customer satisfaction.

SERVICE PROCEDURES

IMPORTANT: When removing headlamp housings, be careful not to disturb headlamp aiming adjustments.

1. Remove left front headlamp assembly from vehicle.

•	On Coupe, remove the two upperheadlamp attachment bolts and remove headlamp.

•	On Sedan/Wagon, remove the upper and lower headlamp attachment bolts and remove headlamp.

2. Disconnect headlamp connectors and remove turn signal socket from headlamp housing.
3. Disconnect the horn connector 1.



4. Remove horn to space frame attaching bolt 3 and remove horn 2.
5. Position replacement horn to space frame and install attaching bolt.

Tighten
Tighten bolts to 10 N·m (89 in lbs).

6. Reconnect vehicle horn connector.
7. Reconnect headlamp connectors and install turn signal socket to headlamp housing.
8. Install left front headlamp to vehicle.

•	On Coupe, position headlamp to vehicle and install two upper headlamp attachment bolts and install headlamp.

Tighten
Tighten bolts to 7 N·m (61 in lbs).

•	On Sedan/Wagon, position headlamp to vehicle and install upper and lower headlamp attachment bolts and install headlamp.

Tighten
Tighten bolts to 6 N·m (53 in lbs).

9. Affix Campaign Completion Label on a clean, dry surface of the radiator core support, in an are clearly visible when the hood is raised. (Refer to "Campaign Completion Label" procedure in this bulletin.)

Upon completion of the campaign, a Campaign Identification Label and a Clear Protective Cover should be affixed on a clean, dry surface of the radiator core support in an area clearly visible when the hood is raised. Each label provides a space to print in ink (or type) the campaign number 98C01) and the five (5) digit facility code of the Retailer performing the campaign service.

As a reminder, additional labels may be ordered from Saturn publications (1-800-828-2112, prompt 3, Item #S03 00013A for the Campaign Completion Label and Item #S03 00013B for the Clear Protective Cover ).

1. To receive credit for replacing the horn assembly, submit a claim with the information below:

2. To receive credit for loaner/rental car costs or other goodwill expenses, submit a claim with the information below:

3. Retailers are empowered to use good judgement regarding loaner/rental cars or any other goodwill expenses deemed necessary. It will not be necessary to call the Saturn Customer Assistance Center for authorization of goodwill. The Goodwill Worksheet (printed towards the back of this bulletin) must be used to document goodwill expenses. The completed Goodwill Worksheet must be attached to the hard copy of the CSO. Retailers are to make sufficient copies of the blank Goodwill Worksheet to document goodwill expenses.

4. Check your Saturn SERVICELINE.XL Claim Memorandum daily. Remember to code the claim as a WC sale type and VC case type. Contact your field representative if you need assistance.

5. Refer to the Customer Service Order Preparation Manual for details on Product Campaign Claim Submission.

* The parts allowance should be the sum total of the current SSPO Retailer net price plus 30% of all parts required for the repair.

** Campaign administrative allowance.

*** Net amount must be submitted as a miscellaneous sale...Loaner reimbursement not to exceed $40/day.

**** Enter number of days vehicle was rented...Not to exceed 1 day.

Dear Saturn Owner:

This notice is sent to you in accordance with the requirements of the National Highway and Motor Vehicle Safety Act.

Saturn has decided that a defect which relates to motor vehicle safety exists in certain 1996 and 1997 model year Saturn vehicles. These vehicles were either produced or serviced with a horn assembly which mail fail. As a result, the vehicle horn may either become inoperable or activate without pressing the horn button. Under certain conditions, heat could build up within the horn assembly and an underhood fire could result without prior warning. To correct this condition, Saturn will replace the horn assembly.

We will replace your vehicle's horn assembly at no charge to you. It will take about 30 minutes to make the repairs, although some additional time may be required for paperwork and processing.

Please contact your Saturn Retailer to arrange to have this service performed.

Your Retailer is prepared to perform this service promptly and with minimal inconvenience to you. However if your car is provided to the Retailer on the agreed service date and the condition is not remedied on that date, or within five days, please contact the Saturn Customer Assistance Center at 1-800-553-6000 prompt 3, or for the hearing impaired, 1-800-833-6000. We will assist you and the Retailer in getting your car serviced.

If, after contacting your Saturn Retailer and the Assistance Center, you are still not satisfied we have done our best to remedy this condition without charge and within a reasonable time, you may wish to write the Administrator, National Highway Traffic Safety Administration, 400 Seventh St., S. W., Washington, DC 20590, or call 1-800-424-9393 (Washington, DC residents use 202-366-0123).

Again, we sincerely regret any inconvenience or concern this situation may cause you. Please accept the enclosed phone card, with 20 minutes of complimentary long distance usage, as a token of our thanks for your understanding. We also want you to know that we will do our best, throughout your ownership experience, to ensure that your Saturn provides you many miles of enjoyable driving.

Sincerely,

Saturn Corporation

98-C-01

Dear Saturn Owner:

You may have heard about a Saturn "recall" involving certain 1996 and 1997 Saturn model vehicles. We are writing to let you know what this is about and especially to let you know that your vehicle is not involved.

Saturn has decided that a defect which relates to motor vehicle safety exists in certain 1996 and 1997 model year Saturn vehicles. The vehicles were either produced or serviced with a horn assembly which may fail. As a result, the vehicle horn may either become inoperable or activate without pressing the horn button, Under certain conditions, heat could build up within the horn assembly and an underhood fire could result without prior warning. To correct this condition, Saturn will replace the horn assembly.

Although your Saturn does fall within the range of vehicles which are involved in this action, Saturn's service records indicate that the original horn on your vehicle has already been replaced with the new, updated horn assembly. Therefore, there is no need to have the horn assembly on your vehicle replaced again.

As you know, we place the absolute highest priority on our owners' safety and satisfaction. Owners of the vehicles involved in this activity have already been notified and are having this condition corrected at no charge to them. As always, we will ensure that these conditions are addressed promptly and with minimal inconvenience to affected owners.

We regret any concern this matter may have caused you and want to assure you that your vehicle is not affected by this current activity. Also, we want you to know that we will always do our best to make sire you are completely satisfied with your Saturn. If you have any further questions, please contact the Saturn Custom Assistance Center at 1-800-553-6000, prompt three.

Sincerely,

Saturn Corporation

98C01