Takata Recall Dealer Resource Package. Mercedes-Benz Passenger Cars

Transcription

1 Takata Recall Dealer Resource Package Mercedes-Benz Passenger Cars April 13, 2016

2 Table of Contents Introduction Page 3 Key Contact Information Page 4 Background Information Page 5 Customer Recall Letter Page 11 Calculation of Dealer Reimbursement Page 12 Dealer Reimbursement Process Page 14 Sales Assist Program Page 16 Courtesy Vehicle Program (CVP) Support Page 18 FAQs Customer Survey Process Page 19 Pre-Owned and CPO Topics Page 20 February 11 th NCU Page 22 February 26 th NCU Page 24 February 29 th NCU Page 31 Aftersales Best Practices Page 32 2

3 Dear Mercedes-Benz Dealers, On behalf of the entire MBUSA leadership team, we d like to thank you for your continued support through this challenging and unique situation we find ourselves in as we deal with the Takata recall. Since we have not confronted anything of this magnitude before, we felt it would be beneficial to assemble all available resources in a single place. In this attached communication, you ll find information that we have put together to explain and clarify the processes involved. Our goal with these documents is to ensure that all dealer personnel have the knowledge and understanding necessary to handle the situation with the accuracy and consideration promised by The Best or Nothing. Again, thank you. Your continued involvement and cooperation on this matter is much appreciated, Christian Treiber Vice-President Customer Services Mercedes-Benz USA 3

4 Key Contact Information Engineering Services R. Thomas Brunner Department Manager, Vehicles Compliance and Analysis Contact for Media Inquiries: Pre-Owned & CPO Rob Teitelbaum Department Manager, Pre-Owned Operations Sales Programs and CVP Celso Rochez Department Manager, Sales and Field Operations Reimbursement Related Topics Charlie Lamarca General Manager, Corporate Finance, Controlling & Risk Customer Assistance Center Dedicated Hotline: Customer Pop Up Site: Takata Information on NHTSA website: Customer Experience Hotline Michael Barrett Customer Experience Metrics and Insights Lead Hotline #

5 Important Recall Update Please be aware that starting April 12, 2016, interim customer letters (attached) began to be mailed to owners of affected vehicles as required under Federal Regulations when parts to remedy a recall are not available. Due to the volume of letters to be sent, the mailing will occur in stages over the next two months. The letter informs the owner of the pending recall and that parts are not yet available. A second letter will be mailed to owners once parts become available. The information below has been created to provide talking points for dealer personnel, especially Service Advisors and BDC team members when addressing customer concerns relating to the Takata airbag recall. Key Messages: Replacement airbags are not yet available. Given the sheer size of the total affected vehicle population, NHTSA is making determinations as to when and to whom available airbags are allocated under their Coordinated Remedy Program. This means that we are subject to parts availability constraints and do not currently have definitive information on when parts will be available. Recall Information for Customers: Mercedes-Benz Specific Recall Information: Mercedes-Benz Customer Assistance Center: Industry-wide Takata Information from NHTSA: What happens when replacement airbags become available? MBUSA will notify customers with a second letter to inform them that a replacement part is available, and to make an appointment with their authorized Mercedes-Benz Dealer as soon as possible. In general, please: 1. Ensure that every dealership associate is aware of the Takata recall and that customer-facing associates provide transparent information to customers. 2. Refer to VMI in NetStar to determine which units in your inventory are affected by this safety recall. All affected vehicles are flagged, and are titled Driver Airbag with a status of Pending. 3. Run a VMI check on all vehicles brought into your Service department to determine if they are affected by any recall. As a reminder for all recalls, you are obliged to inform any current service customer having work done at your dealership when their vehicle is subject to recall 4. When replacement parts become available, replace the driver-side airbag inflator with the required parts. 5. Always act with the principles of Customer Experience in mind. 5

6 I. Recall Background What is the issue? A potential safety defect exists for Takata SDI and PSDI-5 airbag inflators. Takata s investigation of affected inflators to date indicates that exposure to certain environmental conditions (several years of exposure to persistent conditions of high absolute humidity), could lead to over-aggressive combustion in the event of a driver s-side air bag deployment What is the risk related to this issue? In a crash where the air bag system deploys, the air bag inflator housing may rupture. In the event of an inflator rupture, metal fragments could pass through the air bag material, which may result in injury or death to vehicle occupants. To date, we are not aware of any instances of ruptured inflators in Mercedes-Benz vehicles. How does a customer know whether their specific vehicle is affected by the recall? Any customers who are potentially affected will be mailed an interim letter in the next several weeks. Until they receive the letter, they can check if their vehicle is affected by entering their VIN into the following site: Additional information for customers can be viewed by clicking on the Takata Airbag Inflator Recall link. Can their vehicle continue to be driven safely? Yes. Daimler is not aware of a ruptured inflator in any of its vehicles associated with this recall. However, when you receive a letter asking you to have this service performed by an authorized Mercedes-Benz dealer, please make an appointment. If you are not the only driver of this vehicle, please advise all other drivers of this important information. Do I need to drive differently until my vehicle is repaired? No. Continue to drive with your seatbelt fastened and ensure that you are properly seated. If a customer requests it, can we disable their airbag? No. Federal Regulations prohibit airbag disablement. Also, as a leader in the field of automotive safety, we believe that the driver and passengers are always safer with the protection of the airbag when a collision event warrants a deployment. The airbag is designed to supplement II. Models Affected What specific models are impacted? Included are various Mercedes-Benz models including SLK, C-Class, E-Class, GLK, M-Class, GL, R-Class and SLS. 6

7 Which Models and MY s are affected? Always check VMI! Model Model Year: C C C C C63AMG E E E63AMG GL320 Diesel GL350 Diesel GL GL GLK ML320 Diesel ML ML450 Hybrid ML ML63AMG R320 Diesel R SLK SLK SLK55AMG SLS Why are other Mercedes-Benz models not included? Other models are not included because this recall pertains specifically to vehicles equipped with the Takata PSDI-5 or SDI inflator. Why is the passenger-side front air bag not affected? The passenger-side front air bag does not contain a Takata PSDI-5 or SDI inflator so it is not affected by this recall. III. Parts and Repair What types of repairs or replacements are needed? Authorized Mercedes-Benz Dealerships will replace the driver-side airbag on the affected vehicles when parts become available. 7

8 When will parts be available? Daimler is working with Takata, NHTSA, and other airbag inflator suppliers, within the guidelines of the NHTSA Coordinated Remedy Program to secure parts for the recall repair. The oldest MY vehicles located in the High Absolute Humidity region as defined by NHTSA are required to receive replacement parts first. Why does it take so long to have the recall done once it is announced? Since this Takata recall affects multiple OEMs, the volume of replacement parts required is extraordinarily large, which is why the NHTSA created a Coordinated Remedy Program to prioritize the replacement parts to the areas in the High Absolute Humidity (HAH) Region where the potential risk for an airbag rupture during deployment is greatest. How does this recall differ from previous airbag recalls from other OEM s? If there isn t a difference, why is the recall only happening now? The recalls up until this point affected different Takata inflators. For more information on the Takata industry wide situation, please visit: What brand airbags do I have in my car? The only affected Takata inflators used in Mercedes-Benz and Freightliner vehicles are the PSDI-5 and SDI inflators, and are identified in the Table above. What other brands of airbags are installed in Mercedes-Benz vehicles? Various suppliers are used, and the driver-side airbag modules with integral inflators are generally specific to each model or model line. Some other suppliers are Autoliv and TRW. I demand that another type of airbag brand (not Takata) is installed in my car. Will you do this? Each airbag needs to meet strict US crash and safety design requirements. Each airbag design must be certified for the application. Therefore, it is not a simple change of supplier. We do not yet have other suppliers producing inflators to replace affected Takata-supplied PSDI-5 and SDI inflators. IV. Customer Information Are there any vehicle symptoms that would indicate I should stop driving the car or take to a dealer? No. There is no symptom that would indicate if your vehicle has an air bag inflator that is potentially at risk of rupturing during deployment in a crash. Can I get a loaner vehicle or alternate transportation until the parts are ready? This recall was launched as a precautionary measure. We have had no incidents with our vehicles and there is no reason to stop driving your vehicle. 8

9 I am willing to stay in my car, but what is Mercedes-Benz going to do for me given this inconvenience? We will attempt to minimize any inconvenience and will inform the vehicle owners when parts are available. Where can a customer have the recall work completed? Interim letters are being mailed starting in April, notifying owners of status, and a second letter will be mailed when parts are available. With the receipt of the second letter, our customers will be asked to contact their local authorized Mercedes-Benz dealership to arrange for an appointment to complete the repair. Have there been any reported injuries from faulty airbags in Mercedes-Benz vehicles? We are not aware of any incidences with the PSDI-5 or SDI inflators in Mercedes-Benz or Freightliner vehicles. Can you guarantee me the airbag will not go off inadvertently? The issue with the recalled Takata PSDI-5 and SDI inflators does not result in inadvertent airbag deployments. Rather, the issue concerns the potential for a rupture during deployment. Visit your authorized Mercedes-Benz dealer if your SRS light is illuminated. A properly functioning airbag system is designed to supplement the seatbelt in protecting occupants in a crash. What injuries can I expect if the airbag deploys? For the affected Takata PSDI-5 and SDI inflators only, in a crash in which an air bag deployment is necessary, the air bag inflator housing may rupture. In the event of an inflator rupture, metal fragments could pass through the air bag material, which may result in injury or death to vehicle occupants. To date, we are not aware of any instances of ruptured inflators in Mercedes-Benz vehicles. Specifically, which airbags in my vehicle are affected? The driver-side airbag with a Takata PSDI-5 or SDI inflator from the identified production ranges is affected. There have been no incidences of an airbag rupture in any Mercedes-Benz vehicle. Is this recall comparable to similar recalls being conducted by other Manufacturers? Yes. This recall campaign involves the Takata PSDI-5 or SDI inflators. 9

10 April, 2016 IMPORTANT SAFETY RECALL, This interim notice applies to your vehicle, Driver-side Airbag Module NHTSA Recall # 16V-081 Mercedes-Benz USA, LLC Dietmar Exler President and CEO Dear Valued Mercedes-Benz Owner: This notice is sent to you in accordance with the requirements of the National Traffic and Motor Vehicle Safety Act. Mercedes-Benz USA has decided that a defect which relates to motor vehicle safety exists in certain Model Year Mercedes- Benz vehicles, based on the defect decision of TK Holdings, Inc ( Takata ) regarding certain airbags produced by Takata. I want to assure you that Mercedes-Benz USA, through our parent company Daimler AG, is taking all necessary measures to remedy this situation for you. The Mercedes-Benz vehicles mentioned above are equipped with driver-side airbags provided by Takata. During normal airbag deployment, under certain circumstances, the driver-side airbag inflator housing in your vehicle may rupture due to excessive internal pressure. This condition is more likely to occur if your vehicle has been exposed to high levels of absolute humidity for extended periods of time. A driverside inflator rupture during deployment could result in metal fragments striking the driver or other occupants, possibly causing serious injury or death. In late January 2016, Takata, the manufacturer of your driver-side airbag inflator, informed the National Highway Traffic Safety Administration (NHTSA) of the problem. We quickly went into action to work with NHTSA and Takata, to define a remedy. Unfortunately, unlike other parts used in manufacturing, redesign of an airbag module is a time-intensive effort given the time needed for sourcing, design, testing, certifying and manufacturing requirements. As a result, it will take us time to go through these stages in a manner that ensures the highest level of safety, durability and quality that we can provide to our customers. As soon as a suitable replacement part is tested and available for your vehicle s driver-side airbag, we will send a second letter notifying you to bring your vehicle in to your local Authorized Mercedes-Benz dealer to have this work done free of charge. Until this time, there is no action required on your part. You may also wish to visit (click on the link Takata Airbag Inflator Recall ) for the latest information on this action. For additional questions about this recall, please visit and select Contact Us, to view our Frequently Asked Questions (keyword Takata ). To contact the Customer Assistance Center, use the /Write section under Customer Support, or by calling our Takata hotline at Please accept our sincerest apologies for the inconvenience and uncertainty, and trust that we are doing all we can given an unanticipated situation that we, along with much of the industry, are now faced with. You have the commitment of the entire Mercedes-Benz organization that there will be no higher priority than resolving this issue and doing everything within our means to ensure your safety and peace of mind. Please note: If you are no longer the vehicle owner, or have a change of address, please complete the reverse side of this letter and return it in the enclosed envelope. If this is a leased vehicle and the lessor and registered owner receives this notice, please forward this information by first class mail to the lessee within 10 days to comply with Federal Regulations. Once again, we are truly thankful for your loyalty and appreciative of your understanding as we work to resolve this. Sincerely, Mercedes-Benz are registered trademarks of Daimler AG, Stuttgart, Germany Mercedes-Benz USA, LLC 303 Perimeter Center North Suite 202 Atlanta, GA Phone (770) Fax (770)

11 IMPORTANT IF FOR ANY REASON YOU DO NOT NOW OWN THIS VEHICLE OR HAVE A CHANGE OF ADDRESS, PLEASE COMPLETE THE SECTION BELOW, PLACE IN THE ENCLOSED ENVELOPE, AND DROP IN ANY MAIL BOX. IF POSSIBLE, PROVIDE THE NAME AND ADDRESS OF THE PRESENT OWNER SO THAT WE MAY CONTACT THEM. SCRAPPED STOLEN OTHER SOLD MY NEW ADDRESS IS: I HAVE SOLD THE VEHICLE TO: NAME STREET APT. CITY STATE ZIP PHONE THANK YOU FOR YOUR COOPERATION

12 Calculation of Dealer Reimbursement MBUSA will pay dealers who currently have vehicles in their inventory that are impacted by the Takata stop sale. The payments will be made on a monthly basis and will be paid at a daily allowance from the time the vehicle is taken into dealer inventory until the time the mechanical fix has been completed for the recall, effectively mitigating the effects of the stop sale. Payments will be made retroactively to vehicles from the time of the announced stop sale, February 29, Please note, this program is only available for vehicles taken into dealer inventory from a retail customer via trade or lease return. Units taken into inventory via wholesale purchase, purchase from auction, or internal company transfer are not eligible for the reimbursement or any sales assist programs. MBUSA will pay one monthly payment which is based on three components: Depreciation Calculated as monthly average by model based on historical analysis of depreciation and volume weighted based on percentage of impacted vehicles Floorplan Expense Calculated as average MBFS floor plan interest rated multiplied by average wholesale value of all stop sale vehicles in dealer inventory retroactive to February 29, 2016 Storage and Wear Set amount which MBUSA will reimburse dealers a total of $125 per month for each dealer owned unit impacted by the Takata recall. This amount is intended to cover the storage and maintenance of the instock unit while it is awaiting the completion of the recall including cleaning, battery maintenance and wear related to storage. Additional Notes: Total of the 3 components will be paid to the dealers monthly (as calculated on a daily rate) for as long as the affected vehicles are in their inventory awaiting replacement part. Any vehicles included as part of the recall that are taken as a trade in will be added to the dealer s inventory and will be eligible for the reimbursement. Vehicle payouts determined by weighted average across all model trims and model years of vehicles affected by the recall. This program will run through December 31,

13 Monthly Total Payouts: (Inclusive of Flooring, Depreciation and Storage / Wear) Class Monthly Payout* C-Class $325 E-Class $525 M-Class $450 GL-Class $650 GLK-Class $425 R-Class $500 SLK-Class $300 SLS-Class $1,775 *Calculation is based on MY 10 & Newer vehicles; MBUSA in their sole discretion reserves the right to make changes in monthly payout for older vehicles. 13

14 Dealer Reimbursement Process 1. Dealer personnel will need to enter RAPS payment for each pre-owned vehicles affected by Takata recall. 2. Dealer personnel will need to request access to Transportation claim provided by Dealer Local Security Administrator 3. New function is integrated into NetStar RAPS Payment application. 4. To start RAPS Payment entry, go to Eyeball RAPS Payments 5. If dealer has multiple franchises, select the vehicle category it applicable for and New for new payment. 6.. Provide only applicable data elements: RO number (for internal dealer tracking) Line Number, common values A and 1 Open date the date vehicle was acquired into dealer inventory Dealer text: as example Takata in stock vehicle. Damage code: Sublet. 14

15 7. SAVE and SUBMIT. If Submit is grey out, verify Error Codes tab 8. The NetStar RAPS Payment report will show all of your activities and monthly consolidated statement will have record as RAPS Payment. 15

16 TO: All Mercedes-Benz Dealers FROM: New Vehicle Sales Operations RE: April 2016 Takata Sales Assist Program DATE: April 13, 2016 In light of the recent Takata recall, MBUSA is extending a limited offer for current Mercedes-Benz customers who would like to transition into a new Mercedes-Benz vehicle. Based on their 2016 New Vehicle Sales Objective, dealers will be allocated a certain number of Takata Sales Assist Certificates, which will provide any current Mercedes-Benz customer affected by the Takata recall with up to $2,000 toward the purchase or lease of a new Mercedes-Benz when they trade in their current Takata-affected Mercedes-Benz vehicle. This offer is not applicable to the purchase of new Mercedes-Benz Commercial Vans. Certificate details are included in the table below. Please contact your Sales Operations Manager for your dealership s certificate allocation. To claim a Takata Sales Assist Certificate, submit an inquiry via MSS under the Inquiry Type Takata Recall. Please include the attached form along with a copy of the signed new vehicle contract. It is the dealership s responsibility to submit no more than the maximum number of allotted certificates. This program is subject to audit, and any certificates claimed above maximum allocation will be charged back. This program is not combinable with DE1, DE1+, Fleet, MBDEAL, Amex/Silver Star Certificates, Special Retail Program Cash and Guest Appreciation certificates. Please contact your Sales Operations Manager with any questions. Program end date: December 31 st, Takata Sales Assist Certificate MY13 MY14 $2,000 MY12 & Earlier $1,000 16

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18 TO: All Mercedes-Benz Dealers FROM: New Vehicle Sales Operations RE: Courtesy Vehicle Support for Takata Recall DATE: April 13, 2016 To support Mercedes-Benz customers included in the recent Takata airbag recall, Mercedes-Benz USA is pleased to announce an enhancement to our Courtesy Vehicle Program (CVP) that will provide dealerships with up to 5 additional CVP slots, if required, to support customers whose vehicles are inservice specifically for a recalled Takata airbag replacement. CVP In-Service Requirements & Additional Slot Details: Additional CVP slot allocation will be made available after the request is submitted and approved by Sales Operations. All eligible CVP models are authorized for this program. The additional CVP vehicles must be in service for a minimum of 3 months. Vehicles put into service under this program will receive the same allowance as listed in the 2016 CVP Manual, based on model type. A daily rate will be paid at the end of each month for all eligible in-service units. The list of eligible models and their corresponding daily rate can be found within the 2016 CVP Manual. Dealers are expected to remove the additional vehicles from CVP status once the effected customers have taken delivery of their repaired vehicle and the vehicle has met the 3 month inservice minimum. Dealers are expected to utilize the incremental slots in the spirit of this program, as these additional slots are subject to audit. The additional slots added for this program will be removed after 1/3/2017. For complete CVP program details and payment information, please review the 2016 CVP Manual via NetStar. How to Request Additional CVP Allocation: Submit request to takatacvprequest@mbusa.com Include a copy of the Warranty Repair Order, which includes the affected VIN In subject field, enter Takata CVP Allocation Request 18

19 Customer Survey Process Will customers affected by the Takata airbag recall get surveyed? Yes, all customers will continue to be surveyed. Will those surveys responses count towards my Dealer Performance Bonus (DPB) score? No, we will exclude from scoring all responses related to any VIN that is affected by the recall. Do I need to follow-up with customers that request contact on the survey? Yes, the Close the loop process still applies, but again, responses will not be counted in the DPB scoring. Which repair(s) are excluded from DPB scoring, just the airbag replacement? Any maintenance or repair visit up to and including the airbag replacement will be excluded. When will you start to exclude survey responses for VINs associated with the recall from DPB scoring? Retro-active to initial survey responses received 4/1/16. Programming in development implementation date TBD. When will you restart including survey responses for scoring for the VINs affected by the Takata airbag recall? Following airbag replacement, any subsequent visit with a survey response will be included. How can I make sure that my Advisor and Tech pay plans are not affected by the survey responses? A filter to exclude surveys will be available in the Medallia Tool (similar to >8 Model Years). Implementation Date TBD Do I still need to get addresses for these customers? Yes, these ROs will be included for the penetration calculation. The target 80% for all delivered s. 19

20 Pre-Owned and Certified Pre-Owned FAQ Will dealers be offered any programs for re-certifying impacted CPO vehicles which were certified prior to the announcement of the Takata Recall, and, as a result of the recall, need to be held in dealer inventory until the Recall work can be completed? Yes. MBUSA does not charge its dealers for completing the online Inspection and Certification Report (ICR), which expires automatically after 180 days. However, MBUSA will reimburse one hour of labor for re-completing the ICR on recall-affected CPO vehicles in dealer inventory as of April 11, Payout will be made on a one-time, per-vin, basis using a national average labor rate of $137. Dealers will not need to take any action to receive this reimbursement and can expect to see payment on their consolidated statements within 4-6 weeks. MBUSA field teams will be provided with the list of VINs being reimbursed on a by-dealer basis. Can dealers sell impacted vehicles to RETAIL customers? No. All impacted vehicles/vins are on stop sale and cannot be sold at this time. MBUSA will not indemnify dealers on any sales that violate the stop sale mandate. Why has MBUSA issued a stop sale? MBUSA has issued a stop sale on used vehicles in alignment with its launch of a recall on new vehicles. The decision to stop sale was made in an abundance of caution in the wake of an unprecedented supplier issue affecting the entire auto industry. Can a dealer wholesale impacted vehicles? MBUSA requests that impacted vehicles be held by the dealer. MBUSA is offering a reimbursement for carrying costs on impacted vehicles while they are held until they are repaired. MBUSA will not indemnify dealers on any units a dealer chooses to wholesale. Impacted vehicles will not be permitted in MBFS Wholesale Advantage. Are dealers able to take in impacted vehicles on trade? Dealers will have the option to continue to take in Mercedes-Benz vehicles on trade. These vehicles will be eligible for an assistance package outlined in this communication. 20

21 What should dealers do when an off-lease customer wants to purchase his/her impacted lease vehicle? These vehicles are currently subject to stop sale and therefore acquiring them in to your inventory as part of an Indirect Customer Purchase (ICP) is not an available path. The terms of the MBFS lease agreement entitle the customer to purchase the leased vehicle directly from MBFS at contract residual. Will MBUSA provide any special CPO sales support for vehicles impacted by the stop sale once repaired? Once repaired, impacted CPO vehicles will retain full eligibility for in-market CPO programs under which they qualify. Will dealer objectives for C3, CPO retails, CPO sales penetration, etc., be adjusted? No. The total number of impacted vehicles in dealer inventory is low and does not necessitate the adjustment of objectives. Will impacted vehicles be removed from MBonDemand? Yes, impacted vehicles have already been removed from MBonDemand. Will impacted vehicles be removed from the national pre-owned inventory search site ( Yes, impacted vehicles have already been removed from the national search site. Can I use the LAP program to get a customer out of their current car impacted by the recall? Yes, if the customer qualifies for existing LAP programs. 21

22 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com TO: All Mercedes-Benz Dealer Principals, General Managers, Sales Managers, Parts Managers RE: New Recall Campaign Announcement Certain MY05- MY14 Vehicles with Takata Driver Airbags and PSDI-5 Inflators FROM: Thomas Brunner, Department Manager, Vehicle Compliance and Analysis, Engineering Services DATE: February 11, 2016 IMPORTANT NEW RECALL ANNOUNCEMENT This is to notify you of a new Recall Campaign affecting approximately 705,983 Mercedes-Benz passenger vehicles involving Takata driver-side airbags containing PSDI-5 type inflators. The recall notification was recently submitted to the NHTSA and may generate questions from customers and the media. What s the Issue? Certain Mercedes-Benz vehicles are equipped with driver-side front airbags provided by TK Holdings, Inc. ("Takata"). On January 25, 2016 Takata filed a Defect Information Report with NHTSA announcing a potential defect in some of the subject inflators. Based upon Takata's information to date, Takata is not aware of any field incidents in which a PSDI-5 inflator has ruptured, either desiccated or non-desiccated. Takata is taking this action in an abundance of caution, to address all of the subject non-desiccated PSDI- 5 air bag inflators, due to the similarities of design and manufacturing characteristics for this type of inflator used in the U.S. market. Daimler AG is not aware of any field incidents with the subject Takata PSDI-5 inflators. However, based on the information above and in an abundance of caution, DAG will conduct a voluntary recall of the vehicles equipped with subject Takata PSDI-5 inflators in the United States as identified by Takata in the Defect Information Report. Which Models are Included? Various Model Years MY05 MY14 of SLK (171), C(203, 204), GLK(X204), E-Class Coupe/Cabrio (A/C207) and sedan(212), SLS Coupe/Cabrio (R/A197), ML(164), GL(X164), R(251). Is a Retail Hold involved with this Recall? No retail hold is involved, since no new vehicles with the subject driver airbags are in dealer inventory. 22

23 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com What should you do if you get customer inquiries? Please refer all customer inquiries to the Customer Assistance Center at FOR-MERCedes ( ). How Will Customers Know if Their Vehicle has a Driver Airbag included in the Recall? Once the final VIN list is received from DAG, all included vehicles will be flagged in VMI as Pending. Owners can be directed to MBUSA.com and utilize the Recall VIN Look-up feature, once the final VIN list is received from DAG. Follow-up NCU will be provided. MBUSA will mail an interim letter within the prescribed timeframe to owners, notifying them of the pending recall, and that they will receive a second letter when replacement airbags become available. Dealers may also identify vehicles subject to a campaign through NetStar by selecting Campaign under the Controlling tab. Only vehicles that have been retailed by the respective dealer will be displayed within this program. Can the affected Vehicles still continue to be driven? We have no reason to believe that the vehicles cannot be operated safely. When will Parts be available? Daimler is working with Takata and NHTSA, within the guidelines of the NHTSA Coordinated Remedy Program to secure parts for the recall repair. At this point we do not have any information to share when those parts will become available. While we regret any inconvenience this may cause, MBUSA is determined to maintain a high level of vehicle quality and customer satisfaction. If you receive media inquiries, these should be referred to our Corporate Communications Department at Please refer only journalists to this number. 23

24 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com TO: All Mercedes-Benz Dealer Principals, General Managers, Sales Managers, Parts Managers FROM: David Tait, General Manager, Engineering Services RE: Recall Campaign Update Certain MY05- MY14 Vehicles with Takata Driver Airbags and PSDI-5 Inflators DATE: February 26, 2016 IMPORTANT RECALL UPDATE Additional information around the recent recall announcement affecting approximately 705,983 Mercedes-Benz passenger vehicles involving Takata driver-side airbags containing PSDI-5 type inflators is included below. General customer and dealer questions, and those specific to Certified-Preowned and Preowned vehicles are addressed. Please refer all customer inquiries to the Customer Assistance Center at For any CPO/PO questions, please reach out to your Regional Pre-Owned Manager (RPOM) or Aftersales Operations Manager. If you receive media inquiries, these should be referred to our Corporate Communications Department at Please refer only journalists to this number. While we regret any inconvenience this may cause, MBUSA is determined to maintain a high level of vehicle quality and customer satisfaction. Q1. What is the issue? Daimler was informed that Takata submitted a Defect Information Report to NHTSA in the US on January 25, 2016, reporting a potential safety defect for SDI and PSDI-5 airbag inflators. Takata s investigation of affected inflators to date indicates that exposure to certain environmental conditions (several years of exposure to persistent conditions of high absolute humidity), could lead to overaggressive combustion in the event of a driver s-side air bag deployment Q2. What is the expected impact or risks related to this issue? In a crash where the air bag system deploys, the air bag inflator housing may rupture. In the event of an inflator rupture, metal fragments could pass through the air bag material, which may result in injury or death to vehicle occupants. To date, we are not aware of any instances of ruptured inflators in Mercedes-Benz vehicles. 24

25 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com Q3. What types of repairs or replacements are needed? Authorized Mercedes-Benz Dealerships will replace the driver-side airbag on the affected vehicles when parts become available. Q4. How long does this repair take? The current estimate is about an hour. Q5. How many vehicles are affected by this issue and which production range is affected? In close cooperation with NHTSA and based on the Takata report, we are conducting a precautionary recall of the affected vehicle models. Various models from the following model years are potentially affected on the US market: Passenger cars: Model year ranges (705,000 vehicles) Daimler Vans: Model year ranges (100,000 vehicles) This number could potentially be reduced as soon as detailed results from further analyses conducted by NHTSA regarding the technical causes, specific production ranges, and other various influence factors become available. Please reference VMI which has now been updated to indicate if the vehicle is affected by this recall. Q6. What specific models are impacted? Included are various Mercedes-Benz models including SLK, C-Class, E-Class, GLK, M-Class, GL, R-Class and SLS. On the Daimler Vans side, Dodge, Freightliner and Mercedes-Benz Sprinter models are impacted. M-Class MY GL MY R-Class MY SLK MY C-Class MY GLK MY SLS MY E Class MY Model Specific: C C C C C63AMG

26 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com E E E63AMG GL320 Diesel GL350 Diesel GL GL GLK ML320 Diesel ML ML450 Hybrid ML ML63AMG R320 Diesel R SLK SLK SLK55AMG SLS In order to verify that a vehicle is included in this recall, always check VMI. Q8. Why are other models not included? Other models are not included because this recall pertains specifically to vehicles equipped with the Takata PSDI-5 or SDI inflator. Q9. Why is the passenger-side front air bag not affected? The passenger-side front air bag does not contain a Takata PSDI-5 or SDI inflator so it is not affected by this recall. Q10. How did Daimler become aware of this potential issue? How long has Daimler been aware of this issue? Daimler was informed that Takata submitted a Defect Information Report to NHTSA on January 25, 2016, reporting a potential safety defect on SDI and PSDI-5 airbag inflators. We are not aware of any cases with the failure mode reported by Takata on SDI or PSDI-5 airbag inflators in any of our vehicles. Q11. What costs will be incurred by the customer? The work will be conducted free of charge to customers. 26

27 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com Q12. Can I continue to drive my vehicle? Yes. Daimler is not aware of a ruptured inflator in any of its vehicles associated with this recall. However, when you receive a letter asking you to have this service performed by an authorized Mercedes-Benz dealer, please make an appointment. If you are not the only driver of this vehicle, please advise all other drivers of this important information. Q13. Where can a customer have the recall work completed? Interim letters will be mailed in March, notifying owners of status and a second letter will be mailed when parts are available. With the receipt of the second letter, our customers will be asked to contact their local authorized Mercedes-Benz dealership to arrange for an appointment to complete the repair. Q14. How does a customer know whether their vehicle is affected by the recall? Any customers who are potentially affected will be mailed an interim letter in the next several weeks. Until they receive the letter, they can check if their vehicle is affected by entering their VIN into the following site: Q15. How will the repair be communicated to MB customers in the US? When an adequate inventory of replacement parts becomes available, a second owner notification letter will be mailed to owners of registered vehicles in high risk areas, ie, oldest affected vehicles in high absolute humidity areas (e.g., the Gulf states). As replacement part supply increases, the owners of remaining affected vehicles will be notified. Q16. When will parts be available? Daimler is working with Takata and NHTSA, within the guidelines of the NHTSA Coordinated Remedy Program to secure parts for the recall repair. At this point we do not have any information to share when those parts will become available. Q17. Why are only certain vehicles affected within a specific production range? The affected vehicles were identified based on the Defect Information Report submitted by Takata. Q18. Does the Takata airbag recall affect Canadian vehicles? The Takata airbag recall for SDI and PSDI-5 inflators does not affect Mercedes-Benz cars/suvs or Sprinter vehicles in Canada. Only US vehicles are included in this Takata recall. Q19. How does this recall differ from previous airbag recalls from other OEM s? If there isn t a difference, why is the recall only happening now? The recalls up until this point affected different Takata inflators. 27

28 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com The work will be conducted free of charge to customers. For more information on the Takata industry wide situation, please visit this site: Q20. In connection to the Continental SRS control Unit Recall: Are there any vehicles that are both equipped with the affected Continental control modules and Takata airbags? Yes, there is a percentage of passenger vehicles that is affected by both recalls. However, we recommend that the customer, when notified, have either recall completed. One recall is not dependent upon, or related to, the other. Q21. Are you making loaner cars available to owners of recalled cars who are waiting for parts? No. We have not yet mailed the interim owner notification for the vehicles affected by the Takata inflator recall. We will do that in the next few weeks as we more precisely identify the affected vehicle population. Since we haven t had any instances of this occurring in our vehicles, there is no reason to offer a loaner vehicle. Q22. If a customer requests it, can we disable their airbag? No. First of all, Federal Regulations prohibit airbag disablement. Also, as a leader in the field of automotive safety, we believe that the driver and passengers are always safer with the protection of the airbag when a collision event warrants a deployment. The airbag is designed to supplement the seatbelt and other restraint components. For these reasons, we will not allow dealers to disable airbags. Q23. Why does it take so long to have the recall done once it is announced? Since this Takata recall affects multiple OEMs, the volume of replacement parts required is extraordinarily large, which is why the NHTSA created a Coordinated Remedy Program to prioritize the replacement parts to the areas in the High Absolute Humidity (HAH) Region where the potential risk for an airbag rupture during deployment is greatest. Q24. Have there been any reported injuries from faulty airbags in Mercedes-Benz vehicles? We are not aware of any incidences with the PSDI-5 or SDI inflators in Mercedes-Benz or Freightliner vehicles Q25. Can you guarantee me the airbag will not go off inadvertently? The issue with the recalled Takata PSDI-5 and SDI inflators does not result in inadvertent airbag deployments. Rather, the issue concerns the potential for a rupture during deployment. Visit your authorized Mercedes-Benz dealer if your SRS light is illuminated. A properly functioning airbag system is designed to supplement the seatbelt in protecting occupants in a crash. 28

29 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com The work will be conducted free of charge to customers. Q26. What injuries can I expect if the airbag deploys? For the affected Takata PSDI-5 and SDI inflators only, in a crash in which an air bag deployment is necessary, the air bag inflator housing may rupture. In the event of an inflator rupture, metal fragments could pass through the air bag material, which may result in injury or death to vehicle occupants. To date, we are not aware of any instances of ruptured inflators in Mercedes-Benz vehicles. Q27. Will the number of affected vehicles increase like other brands? Not likely. Mercedes-Benz passenger vehicles and Mercedes-Benz and Freightliner vans in the US with Takata PSDI-5 or SDI inflators have been identified. Q28. Are there any vehicle symptoms that would indicate I should stop driving the car or take to a dealer? No. There is no symptom that would indicate if your vehicle has an air bag inflator that is potentially at risk of rupturing during deployment in a crash. Q29. Do I need to drive differently until my vehicle is repaired? No. Continue to drive with your seatbelt fastened and properly seated. Q30. What brand airbags do I have in my car? The only affected Takata inflators used in Mercedes-Benz and Freightliner vehicles are the PSDI-5 and SDI inflators, and are identified in the Table below. For other brand airbags, we will look into this and get back to you. Q31. Specifically, which airbags in my vehicle are affected? The driver-side airbag with a Takata PSDI-5 or SDI inflator from the identified production ranges is affected. Q32. What makes Mercedes-Benz airbags safer than other affected Takata airbags? There have been no incidences of an airbag rupture in any Mercedes-Benz vehicle. Q33. Is this recall comparable to similar recalls being conducted by other Manufacturers? Yes. This recall campaign involves the Takata PSDI-5 or SDI inflators. Q34. What other brands of airbags are installed in Mercedes-Benz vehicles? Various suppliers are used, and the driver-side airbag modules with integral inflators are generally specific to each model or model line. Some other suppliers are Autoliv and TRW. 29

30 MERCEDES-BENZ USA, LLC 303 Perimeter Center North, Suite 202 Atlanta, GA, Phone: (770) Fax: (770) MBUSA.com The work will be conducted free of charge to customers. Q35. My SRS lamp is on now; will the dealer repair my car with the same bad part? An illuminated SRS lamp can be caused by numerous components or even low battery voltage. An authorized Mercedes-Benz dealer is best suited to diagnose and repair your vehicle if the SRS light is illuminated. Q36. Can I get a loaner vehicle or alternate transportation until the parts are ready? This recall was launched as a precautionary measure. We have had no incidents with our vehicles and there is no reason to stop driving your vehicle. Q37. I am willing to stay in my car, but what is Mercedes-Benz going to do for me given this inconvenience? We will attempt to minimize any inconvenience and will inform the vehicle owners when parts are available Q38. The customer no longer wants their car: Will Mercedes-Benz provide money towards another vehicle? No(update with April 13 th program) Will Mercedes-Benz buy it back or trade me out? No Q39. I demand that another type of airbag brand (not Takata) is installed in my car. Will you do this? Each airbag needs to meet strict US crash and safety design requirements. Each airbag design must be certified for the application. Therefore, it is not a simple change of supplier. We do not yet have other suppliers producing inflators to replace affected Takata-supplied PSDI-5 and SDI inflators. 30

31 TO: All Mercedes-Benz Dealers FROM: Pre-Owned Operations RE: Takata Recall Information DATE: February 29, 2016 Mercedes-Benz USA (MBUSA) would like to share the following decisions surrounding the recently communicated Takata airbag recall. They are as follows: 1. Effective immediately, all vehicles in Dealer inventory affected by the recall are on a stop-sale. MBUSA directs that all impacted vehicles be immediately removed from sale. Dealers may review the recall status of any VIN by consulting VMI in NetStar. 2. All impacted vehicles in MBUSA inventory have been removed from sale on MBonDemand and at all auctions. 3. MBUSA is committed to aiding its Dealer partners in offsetting expenses related to this recall. As such, MBUSA will be providing our dealers with flooring and depreciation assistance on vehicles which are impacted by this action. Details of reimbursement plans are currently under development and will be communicated in the near future. 4. Dealers will be allowed to continue to take impacted vehicles in on trade, and those units will be eligible for the aforementioned assistance measures. 5. Due to the very limited number of impacted vehicles currently in Dealer (475) or MBUSA (200) inventory, we do not anticipate any issues related to dealer C3 or Pre-Owned margin performance. We appreciate your continued cooperation related to the Takata airbag recall. Please direct any inquiries to your Regional Pre-Owned Manager (RPOM). Thank you for your continued patience. Kind Regards, Kurt Cornell General Manager, Pre-Owned and Fleet Operations Mercedes-Benz USA, LLC 31

32 Aftersales Best Practices Offer owners a free MPI Offer competitive specials on common service and maintenance menu items for new or returning owners Always check VMI for pending status or other open campaigns As a reminder for all recalls, you are obliged to inform any current service customer having work done at your dealership when their vehicle is subject to recall Record current contact information to update customer records in the DMS 32