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to: : Mercedes-Benz Dealer Principals, General
Managers, Sales Managers, Service Managers,
Parts Managers

RE: Recall Campaign Update

Certain MY05 - MY14 vehicles with Takata | DATE: February 26, 2016
Driver airbags and PSDI-5 Inflators

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.

From: David Tait, General Manager, Engineering
_ Services

General customer and dealer questions, and those specific to Certified-Preowned and Preowned
vehicles are addressed.
e Please refer all customer inquiries to the Customer Assistance Center at 1-800-367-6372.
e For any CPO/PO questions, please reach out to your Regional Pre-Owned Manager (RPOM) or
Aftersales Operations Manager.

e If you receive media inquiries, these should be referred to our Corporate Communications
Department at 770-705-2009. 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 over-aggressive 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.

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.

_
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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 2005-2014 (705,000 vehicles)

e Daimler Vans: Model year ranges 2007-2014 (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 2005 -2014 Mercedes-Benz models including SLK, C-Class, E-Class, GLK, M-Class, GL, R-Class and SLS.
On the Daimler Vans side, 2007 - 2014 Dodge, Freightliner and Mercedes-Benz Sprinter models are impacted.

Q7. Can you provide the ranges for the individual model lines?

M-Class MY 2009-2011
GL MY 2009-2012
R-Class MY 2009-2012
SLK MY 2007-2008
C-Class MY 2005-2011
GLK MY 2010-2012
SLS MY 2011-2014
E Class MY 2010-2011
Model Specific:

C230 2005-2007
C300 2008-2011
C320 2005

C350 2006-2011
C63AMG 2009-2011
E350 2010-2011
E550 2010-2011
E63AMG 2010-2011
GL320 Diesel 2009-2010
GL350 Diesel 2011-2012
GL450 2009-2012
GL550 2009-2012
GLK350 2010-2012
ML320 Diesel 2009-2010
ML350. 2009-2011
ML450 Hybrid 2010-2011
ML550 2009-2011
ML63AMG 2009-2011

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R320 Diesel 2009-2010
R350 2009-2012
SLK280 2007-2008
SLK350 2007-2008
SLKSSAMG 2007-2008
SLS 2011-2014

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.

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:

http:/ /www.mbusa.com/mercedes/recall

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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-S 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.

For more information on the Takata industry wide situation, please visit this site:

http: //www.safercar.gov/rs/takata/index.htm!

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.

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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.

Q26. What injuries can | 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 | 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 | 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 | 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.

32. 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.

@

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