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to: Mercedes-Benz and Freightliner Sprinter | From:David Tait, General Manager, Engineering
Dealer Principals, General Managers, Sales Services, Heike Sheuble, General Manager, |
Managers, Service Managers, Parts Managers __ Aftersales |
RE: Recall Update Takata Driver Airbags Model

Years 2007-2014 Mercedes-Benz and pate: February 26, 2016

Freightliner Sprinter 2500 and 3500 Lo
IMPORTANT RECALL UPDATE

Additional information around the recent recall announcement affecting approximately 100,000
Mercedes-Benz and Freightliner vans involving Takata driver-side airbags containing SDI type
inflators is included below.

General customer and dealer questions, and those specific to Certified-Preowned and Preowned
vehicles are addressed.
e Please refer all customer inquiries to the Sprinter Customer Assistance Center at 1-877-762-
8267
¢ Please reach out to your CVOM's for dealer-specific and CPO/PO questions.
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 and Freightliner Dealerships will replace the driver-side airbag (SDI inflator) on the affected
vehicles when parts become available.

Q4. How long does this repair take?
The current estimate is about an hour.

SPRINTER registered trademarks of Daimler, Stuttgart, Germany

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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:
e 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?
For Daimler Vans, 2007 - 2014 Dodge, Freightliner and Mercedes-Benz Sprinter models are impacted.

Q7. Can you provide the ranges for the individual model lines?
MB Sprinter MY 2010-2014.
Freightliner Sprinter MY 2007-2014

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. Is the passenger-side front air bag affected?
Certain MYO7 - 08 Freightliner vans with passenger-side front air bags that contain a Takata SDI inflator are also
affected by this recall. Prior notification has been sent to owners.

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.

SPRINTEFR registered trademarks of Daimler, Stuttgart, Germany

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Q12. Can | 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 or
Freightliner 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 or Freightliner 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. Affected vehicles are also flagged in VMI.

Q15. How will the repair be communicated to MB/FTL 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.

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

http: / /www.safercar.gov/rs/takata/index.html

SPRINTEF registered trademarks of Daimler, Stuttgart, Germany

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Q20. 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.

Q21. 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.

Q22. 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.

Q23. Have there been any reported injuries from faulty airbags in Mercedes-Benz vehicles?
We are not aware of any incidences with the SDI inflators in Mercedes-Benz or Freightliner vehicles

Q24. 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 Sprinter or
Freightliner Sprinter dealer if your SRS light is illuminated. A properly functioning airbag system is designed to
supplement the seatbelt in protecting occupants in a crash.

Q25. 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 or Freightliner vehicles.

Q26. 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.

Q27. 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.

Q28. Do | need to drive differently until my vehicle is repaired?
No. Continue to drive with your seatbelt fastened and properly seated.

SPPUNTEF? registered trademarks of Daimler, Stuttgart, Germany