Steering Gear Assembled Incorrectly – 2021-2022 Capacity TJ 5000, 6500, & 9000

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OMB Control No.: 2127-0004 Part 573 Safety Recall Report 22V-537 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Capacity of Texas Submission Date : JUL 26, 2022 NHTSA Recall No. : 22V-537 Manufacturer Recall No. : NR Manufacturer Information : Manufacturer Name : Capacity of Texas Address : 401 Capacity Drive Longview TX 75604 Company phone : 999 Population : Number of potentially involved : 58 Estimated percentage with defect : 100 % Vehicle Information : Vehicle 1 : 2021-2022 TJ 5000,6500,9000 Vehicle Type : LOW VOLUME VEHICLES Body Style : ALL Power Train : DIESEL Descriptive Information : All vehicles affected by this pass-through recall have the components mentioned in Sheppard’s recall 22E-047 Production Dates : JUN 01, 2021 – JUL 15, 2022 VIN Range 1 : Begin : NR End : NR Not sequential Description of Defect : Description of the Defect : A small number of steering gears were assembled without the required number of recirculating balls. The recall population was determined by identifying the oldest production lot associated with a gear failure, and including all production from that lot to the date in February 2022 when the improvements in the assembly processes were instituted. FMVSS 1 : NR FMVSS 2 : NR Description of the Safety Risk : A steering gear with fewer than the required number of recirculating balls may bind when loads are applied. In some cases, the balls may align on the same side of the gear’s worm-shaft and concentrated loads may cause the gear’s internal parts to fracture resulting in loss of vehicle steering. Loss of steering increases the likelihood of a crash. Description of the Cause : An anomaly in the steering gear recirculating ball insertion operation occurred during assembly. Subsequent rework processes and inspections did not detect the missing recirculating balls. Part 573 Safety Recall Report 22V-537 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 Identification of Any Warning that can Occur : Preceding the internal fracture, the steering may be perceived as strained by the driver. No audible or visual warning is available. Involved Components : Component Name 1 : NR Component Description : NR Component Part Number : NR Supplier Identification : Component Manufacturer Name : NR Address : NR NR Country : NR Chronology : 2/8/22-Sheppard warranty lab receives a gear built 8/20/2021 with failed worm-shaft. 2/9/22 – warranty lab inspection/disassembly indicates fracture of the worm-shaft and less than the required number of recirculating balls 2/10/22-plant stops production. Additional inspections and process verifications put in place. Clean point is established. Material on hand is inspected and Description of Remedy : Description of Remedy Program : Purchasers will identify the unique serial number imprinted on the recalled equipment. A web-based tool is available after August 1, 2022, to vehicle manufactures and their service networks to classify the serial number. Serial numbers will be classified as either suspect and must be replaced or as not suspect and may remain in service. Sheppard assumes cost burden for the remedy being performed. How Remedy Component Differs from Recalled Component : The remedy component was assembled after the recall condition was corrected in production when additional controls were put in place. The remedy component has been verified to have the correct number of Part 573 Safety Recall Report 22V-537 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 recirculating balls. Each remedy component is identifiable by an imprinted unique serial number Identify How/When Recall Condition was Corrected in Production : On Feb 10, 2022, the recirculating ball insertion process control was enhanced. Additional process controls and inspectors were added to the process to verify that the correct number of recirculating balls in each steering gear. Recall Schedule : Description of Recall Schedule : NR Planned Dealer Notification Date : NR – NR Planned Owner Notification Date : NR – NR * NR – Not Reported

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OMB Control No.: 2127-0004 Part 573 Safety Recall Report 22V-537 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Capacity of Texas Submission Date : OCT 19, 2022 NHTSA Recall No. : 22V-537 Manufacturer Recall No. : NR Manufacturer Information : Manufacturer Name : Capacity of Texas Address : 401 Capacity Drive Longview TX 75604 Company phone : 999 Population : Number of potentially involved : 58 Estimated percentage with defect : 100 % Vehicle Information : Vehicle 1 : 2021-2022 TJ 5000,6500,9000 Vehicle Type : LOW VOLUME VEHICLES Body Style : ALL Power Train : DIESEL Descriptive Information : All vehicles affected by this pass-through recall have the components mentioned in Sheppard’s recall 22E-047 Production Dates : JUN 01, 2021 – JUL 15, 2022 VIN Range 1 : Begin : NR End : NR Not sequential Description of Defect : Description of the Defect : A small number of steering gears were assembled without the required number of recirculating balls. The recall population was determined by identifying the oldest production lot associated with a gear failure, and including all production from that lot to the date in February 2022 when the improvements in the assembly processes were instituted. FMVSS 1 : NR FMVSS 2 : NR Description of the Safety Risk : A steering gear with fewer than the required number of recirculating balls may bind when loads are applied. In some cases, the balls may align on the same side of the gear’s worm-shaft and concentrated loads may cause the gear’s internal parts to fracture resulting in loss of vehicle steering. Loss of steering increases the likelihood of a crash. Description of the Cause : An anomaly in the steering gear recirculating ball insertion operation occurred during assembly. Subsequent rework processes and inspections did not detect the missing recirculating balls. Part 573 Safety Recall Report 22V-537 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 Identification of Any Warning that can Occur : Preceding the internal fracture, the steering may be perceived as strained by the driver. No audible or visual warning is available. Involved Components : Component Name 1 : NR Component Description : NR Component Part Number : NR Supplier Identification : Component Manufacturer Name : NR Address : NR NR Country : NR Chronology : 2/8/22-Sheppard warranty lab receives a gear built 8/20/2021 with failed worm-shaft. 2/9/22 – warranty lab inspection/disassembly indicates fracture of the worm-shaft and less than the required number of recirculating balls 2/10/22-plant stops production. Additional inspections and process verifications put in place. Clean point is established. Material on hand is inspected and Description of Remedy : Description of Remedy Program : Purchasers will identify the unique serial number imprinted on the recalled equipment. A web-based tool is available after August 1, 2022, to vehicle manufactures and their service networks to classify the serial number. Serial numbers will be classified as either suspect and must be replaced or as not suspect and may remain in service. Sheppard assumes cost burden for the remedy being performed. How Remedy Component Differs from Recalled Component : The remedy component was assembled after the recall condition was corrected in production when additional controls were put in place. The remedy component has been verified to have the correct number of Part 573 Safety Recall Report 22V-537 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 recirculating balls. Each remedy component is identifiable by an imprinted unique serial number Identify How/When Recall Condition was Corrected in Production : On Feb 10, 2022, the recirculating ball insertion process control was enhanced. Additional process controls and inspectors were added to the process to verify that the correct number of recirculating balls in each steering gear. Recall Schedule : Description of Recall Schedule : NR Planned Dealer Notification Date : SEP 01, 2022 – OCT 03, 2022 Planned Owner Notification Date : NR – NR * NR – Not Reported

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OMB Control No.: 2127-0004 Part 573 Safety Recall Report 22V-537 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Capacity of Texas Submission Date : NOV 03, 2022 NHTSA Recall No. : 22V-537 Manufacturer Recall No. : NR Manufacturer Information : Manufacturer Name : Capacity of Texas Address : 401 Capacity Drive Longview TX 75604 Company phone : 999 Population : Number of potentially involved : 58 Estimated percentage with defect : 100 % Vehicle Information : Vehicle 1 : 2021-2022 TJ 5000,6500,9000 Vehicle Type : LOW VOLUME VEHICLES Body Style : ALL Power Train : DIESEL Descriptive Information : All vehicles affected by this pass-through recall have the components mentioned in Sheppard’s recall 22E-047 Production Dates : JUN 01, 2021 – JUL 15, 2022 VIN Range 1 : Begin : NR End : NR Not sequential Description of Defect : Description of the Defect : A small number of steering gears were assembled without the required number of recirculating balls. The recall population was determined by identifying the oldest production lot associated with a gear failure, and including all production from that lot to the date in February 2022 when the improvements in the assembly processes were instituted. FMVSS 1 : NR FMVSS 2 : NR Description of the Safety Risk : A steering gear with fewer than the required number of recirculating balls may bind when loads are applied. In some cases, the balls may align on the same side of the gear’s worm-shaft and concentrated loads may cause the gear’s internal parts to fracture resulting in loss of vehicle steering. Loss of steering increases the likelihood of a crash. Description of the Cause : An anomaly in the steering gear recirculating ball insertion operation occurred during assembly. Subsequent rework processes and inspections did not detect the missing recirculating balls. Part 573 Safety Recall Report 22V-537 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 Identification of Any Warning that can Occur : Preceding the internal fracture, the steering may be perceived as strained by the driver. No audible or visual warning is available. Involved Components : Component Name 1 : M100 Component Description : Steering gear Component Part Number : 137300 Supplier Identification : Component Manufacturer Name : R.H. Sheppard Co., Inc. Address : 101 Philadelphia Street Hanover Pennsylvania 17331 Country : United States Chronology : 2/8/22-Sheppard warranty lab receives a gear built 8/20/2021 with failed worm-shaft. 2/9/22 – warranty lab inspection/disassembly indicates fracture of the worm-shaft and less than the required number of recirculating balls. 2/10/22-plant stops production. Additional inspections and process verification put in place. Clean point is established. Material on hand is inspected and confirmed defect free. Production resumes. (2/10/22 – 5/13/22): review of all warranty from 2015-present indicated no similar failure ever received. engineering tests are performed to understand and to reproduce failure mode. 3/10/2022 – Sheppard contacted vehicle driver for description of event and confirmed no accident or injury, low speed and while backing up. 4/12/22 – Sheppard receives a second gear at incoming shipping facility. 5/5/22- Sheppard warranty lab receives/inspects/disassembles the second gear built on 6/26/21 with failed worm-shaft and less than the required number of recirculating balls. 5/6/22- The Product Integrity Committee meets for update on the product investigation. 5/13/22 – The Product Integrity Committee meets and recommends submission of a defect report 573. 7/18/22 – REV Group was notified on Sheppard’s recall 22E-047 and began gathering the necessary information and approval to conduct a pass-through recall. 7/26/22 – REV Group informed Capacity to proceed with filing the Recall. Part 573 Safety Recall Report 22V-537 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 Description of Remedy : Description of Remedy Program : Purchasers will identify the unique serial number imprinted on the recalled equipment. A web-based tool is available after August 1, 2022, to vehicle manufactures and their service networks to classify the serial number. Serial numbers will be classified as either suspect and must be replaced or as not suspect and may remain in service. Sheppard assumes cost burden for the remedy being performed. How Remedy Component Differs from Recalled Component : The remedy component was assembled after the recall condition was corrected in production when additional controls were put in place. The remedy component has been verified to have the correct number of recirculating balls. Each remedy component is identifiable by an imprinted unique serial number Identify How/When Recall Condition was Corrected in Production : On Feb 10, 2022, the recirculating ball insertion process control was enhanced. Additional process controls and inspectors were added to the process to verify that the correct number of recirculating balls in each steering gear. Recall Schedule : Description of Recall Schedule : Capacity of Texas does not have owner information and thus has an agreement with and relies on its dealer network to notify owners on recalls. Planned Dealer Notification Date : SEP 01, 2022 – OCT 03, 2022 Planned Owner Notification Date : NR – NR * NR – Not Reported

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