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Also think it's strange to devote so much console space to the passenger airbag cutoff switch. Such a minor button, wouldn't it be better placed inside the glove box or some other out of the way location?

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The actual key switch to turn off the passenger side air bag can be found on the passenger side of the dash. You will see it if you open the passenger door. The "button" you are refering to is the indicator light to tell you that the passenger air bag is off. Note. the key switch only turns off the front air bag, not the side air bag in the door.