News Channel Update |

Warranty

TO: Mercedes-Benz

Dealer Principals, General Managers,
Sales Managers, Service Managers, Parts Managers
Update - Mars Red Paint Service Warranty Coverage:
Various Models (see provided list)
RE:

FROM: Teresa

Clemmer, Senior Manager – Warranty,
Gregory Gunther - Senior Manager, Vehicle
Compliance and Analysis, Engineering Services
DATE:

March 12, 2024

Mars Red Paint SERVICE WARRANTY COVERAGE
March 2024 Update1
As previously reported, to enhance the satisfaction of our customers, avoid further costs of litigation and return focus
to its core businesses, Mercedes-Benz USA, LLC (MBUSA) has entered into a Settlement regarding claims relating to
allegations that the “590 Mars Red” paint available as an original, exterior color option for certain models of
Mercedes-Benz vehicles may experience peeling, flaking, or bubbling of the exterior paint or clear coat. This “Mars
Red” paint is sometimes referred to as “Fire Opal.”
The purpose of this update is to alert you that:
1. The Settlement has received final approval. The Settlement will go into effect on March 11, 2024. As of
that date, customers are eligible to receive extended warranty coverage under the Settlement.
2. Under the Settlement, an eligible customer might receive extended warranty coverage as of the date
the vehicle is presented to your dealership OR certain customers might have validated Qualified Future
Repair claims, making them eligible for a different level of coverage. To determine if a customer: (a) is
eligible for extended warranty coverage; and (b) what level of warranty coverage is available to them,
please refer to the “Service Packages” section in VMI/Netstar.
3. Damage code 21800 (damage type 00) must be used for warranty claims covered pursuant to the
Settlement. Please note that you should only claim for the percentage of warranty repair cost reflected
in VMI/Netstar (see below, e.g., for Period Two, claim only 50% of warranty repair cost).
4. Before the dealership agrees to perform any work: The customer should be given a Repair Order
containing: (1) an estimate for the repair, (2) the portion covered under the extended warranty; and
(3) the customer’s contribution amount for the repair, if applicable. The customer must agree to pay
their contribution amount for the repair and sign the Repair Order before the repair is performed.

1 This NCU supersedes and replaces prior NCUs concerning “Mars Red Paint Service Warranty Coverage.”.

Mercedes-Benz USA, LLC
One Mercedes-Benz Drive

A Mercedes-Benz Group AG Company

Sandy Springs, GA 30328

770.705.0600

News Channel Update |

Warranty

What benefits does the Settlement provide?: As part of the settlement, MBUSA has agreed to offer sliding-scale
coverage to: (1) reimburse certain amounts to owners or lessees of Subject Vehicles paid out of pocket for certain
repairs to address peeling, flaking, or bubbling of the exterior paint or clearcoat; and (2) cover certain amounts for
future repairs to address peeling, flaking, or bubbling of the exterior paint or clearcoat. Coverage will include
inspection of the vehicle to diagnose the possible cause of any observed peeling, flaking, or bubbling of the exterior
paint or clear coat.
What Is Covered: As part of the settlement, MBUSA has agreed to perform the repairs described in LI98.00-P-058914
to repaint any non-plastic exterior surface of a Subject Vehicle because of peeling, flaking, or bubbling of the exterior
paint or clear coat. The extended warranty coverage will be provided on a sliding-scale for Subject Vehicles with fewer
than 15 years from the original in-service date and has fewer than 150,000 miles, , and is limited to refinishing of
affected areas only, in accordance LI98.00-P-058914.
What Is Not Covered: Coverage does not cover repainting necessitated by external influences such as automobile
accidents, scratches, or road debris. Coverage does not include alternative transportation costs.
Does the Settlement cover any paint color other than 590 Mars Red paint? No, the Settlement does not cover any
paint color other than 590 Mars Red paint. Because other paint colors are not included in the Settlement, dealerships
receiving inquiries or service requests for paint damage to other colors should assess and handle such inquiries or
requests as they would in the normal course of business.
Which Vehicles are Covered: The warranty coverage provided by the settlement applies to the following MercedesBenz vehicles originally purchased or leased in the United States with 590 Mars Red paint (“Subject Vehicles”):
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C-Class (model years 2004-2015)
GLK-Class (model years 2010-2015)
CLS-Class (model years 2006-2007, 2009, 2014)
CLK-Class (model years 2004-2009)
S-Class (model years 2008, 2015, 2017)
SL-Class (model years 2004-2009, 2011-2017)
CL-Class (model years 2005-2006, 2013-2014)
SLS-Class (model years 2014-2015)
E-Class (model years 2005-2006, 2010-2017)
G-Class (model years 2005, 2011-2017)
GT-Class (model years 2016-2018)
SLC-Class (model years 2017)
SLK-Class (model years 2005-2016)
Maybach 57 (model year 2008)

Mercedes-Benz USA, LLC
One Mercedes-Benz Drive

A Mercedes-Benz Group AG Company

Sandy Springs, GA 30328

770.705.0600

News Channel Update |

Warranty

What are the terms of the extended warranty? Warranty coverage will be extended according to the following
sliding scale of coverage ranging from 7 years/105,000 miles to 15 years/150,000 miles (whichever occured first,
commencing from the original In-Service Date).
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Period One is defined as the time period during which the Subject Vehicle has or had fewer than seven years
(84 months) or 105,000 miles from the Subject Vehicle’s original in-service date, whichever occurred first. For
Period One, you may claim 100% of the warranty repair cost.

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Period Two is defined as the time period from the end of Period One until the Subject Vehicle has or had
fewer than ten years (120 months) or 150,000 miles from the Subject Vehicle’s original in-service date,
whichever occurred first. For Period Two, you may claim 50% of the warranty repair cost. This means that the
other 50% must be collected from the customer.

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Period Three is defined as the time period from the end of Period Two until the Subject Vehicle has or had
fewer than fifteen years (180 months) or 150,000 miles from the Subject Vehicle’s original in-service date ,
whichever occurred first. For Period Three, you may claim 25% of the warranty repair cost. This means that
the other 75% must be collected from the customer.

Under the Settlement, certain customers were entitled to preserve their coverage period under the sliding-scale
warranty coverage: Customers falling into this category will receive a letter notifying them of their approved claim,
their coverage level (Period One-Three) and instructions to contact their authorized Mercedes-Benz dealership to
schedule an appointment for the repairs. The customer will also present their letter to the authorized Mercedes-Benz
dealership when they bring their vehicle in for repair. As discussed above, however, please refer to the “Service
Packages” section in VMI/Netstar to determine if a customer: (a) is eligible for extended warranty coverage; and (b)
what level of warranty coverage is available to them.
What should I do if an owner/lessee who preserved their coverage contacts the dealership to schedule an
appointment for repairs? To determine a customer’s eligibility and their coverage level, please refer to the “Service
Packages” section in VMI/NetStar. Please check the VIN in NetStar/VMI before scheduling the appointment for the
repairs. Applicable vehicles will be visible in NetStar/VMI on March 11, 2024, and will indicate whether the customer
is eligible for Period One, Two or Three coverage, or should only be covered as of the date the vehicle is presented to
your dealership. For example, a vehicle that is covered under Period One will show “Mars Red Extended Warranty:
Preserved Period One” in the “Service Packages” in Netstar/VMI. A vehicle that is covered as of the date the vehicle is
presented to your dealership will show only as “Mars Red Extended Warranty.” Before scheduling a repair
appointment: The customer should be given a repair order containing: (1) an estimate for the repair, (2) the portion
covered under the extended warranty; and (3) the customer’s contribution amount for the repair, if applicable. The
customer must agree to pay their contribution amount for the repair and sign the repair order before the repair is
performed.

Mercedes-Benz USA, LLC
One Mercedes-Benz Drive

A Mercedes-Benz Group AG Company

Sandy Springs, GA 30328

770.705.0600

News Channel Update |

Warranty

What should I do if a customer brings their vehicle in for repairs if their vehicle is both fewer than 15 years from the
original in-service date and has fewer than 150,000 miles? Now that the settlements is effective, eligible customers
who wish to have their vehicles repaired under the Settlement must bring their vehicle to an authorized MercedesBenz dealership. To determine coverage, the dealership must first check Netstar/VMI to determine if a customer is
eligible. If so, please then confirm that the vehicle meets the age and mileage requirements; that the exterior
clearcoat on a panel is peeling, flaking or exhibiting bubbles under the surface; and that such conditions are not
caused by external influences such as automobile accidents, scratches, road debris, chemical burn, tree sap, or bird
droppings. Before the dealership agrees to perform any work, the customer should be given a Repair Order
containing: (1) an estimate for the repair, (2) the portion covered under the extended warranty; and (3) the
customer’s contribution amount for the repair, if applicable. The customer must agree to pay their contribution
amount for the repair and sign the Repair Order before the repair is performed.
What damage code should be used for warranty repairs provided pursuant to the Settlement? Now that the
Settlement is effective, damage code 21800 (damage type 00) must be used for warranty claims covered pursuant to
the Settlement. These are to be claimed in NetStar RAPS (not EVA).
Goodwill Coverage No Longer Allowed: In light of the significant benefits that are being provided under the
settlement agreement, the Subject Vehicles are no longer eligible for goodwill coverage for the repairs described in
LI98.00-P-058914.
Under the Settlement, certain customers are allowed to make claims for reimbursement of past repair costs. If a
customer asks about the status of the reimbursement claim, you should respond as follows: We do not have any
information about the status of individual claims. Please contact the settlement administrator for information about
your individual claim. Further information may be obtained by visiting the Settlement website
(www.marsredpaintsettlement.com).
Does this Settlement mean that the Subject Vehicles are defective? No. The court has not decided in favor of the
plaintiffs. MBUSA denies the material factual allegations and legal claims asserted by the plaintiffs and settlement
class members, including allegations that the “590 Mars Red” paint is defective in any way.
Why is MBUSA settling this litigation? MBUSA has agreed to settle this litigation to enhance the satisfaction of its
customers, avoid further costs of litigation, and return focus to its core business. MBUSA denies the material factual
allegations and legal claims asserted by the plaintiffs and settlement class members, including allegations that “590
Mars Red” paint is defective in any way.
Why might a vehicle’s Mars Red paint experience peeling, flaking, or bubbling of the exterior paint or clear coat?
Peeling, flaking, or bubbling of the exterior paint or clear coat can occur due to a wide range of potential causes,
including improper maintenance and external influences such as automobile accidents, scratches, road debris,
chemical burn, tree sap, or bird droppings. An authorized Mercedes-Benz dealership will need to inspect a vehicle to
diagnose the possible cause of any observed peeling, flaking, or bubbling of the exterior paint or clear coat.
Does peeling, flaking, or bubbling of the exterior paint or clear coat mean the vehicle is defective? No. Peeling,
flaking, or bubbling of the exterior paint or clear coat can occur due to a wide range of potential causes, including

Mercedes-Benz USA, LLC
One Mercedes-Benz Drive

A Mercedes-Benz Group AG Company

Sandy Springs, GA 30328

770.705.0600

News Channel Update |

Warranty

improper maintenance and external influences such as automobile accidents, scratches, road debris, chemical burn,
tree sap, or bird droppings. An authorized Mercedes-Benz dealership will need to inspect the vehicle to diagnose the
possible cause of any observed peeling, flaking, or bubbling of the exterior paint or clear coat.
For all other inquiries: Further information about the Settlement may be obtained by visiting the Settlement website
(www.marsredpaintsettlement.com).
While we regret any inconvenience this may cause, MBUSA is determined to maintain a high level of vehicle quality
and customer satisfaction.
Should you have any questions, please contact the Customer Assistance Center at 1-800-FOR-MERCEDES.

Mercedes-Benz USA, LLC
One Mercedes-Benz Drive

A Mercedes-Benz Group AG Company

Sandy Springs, GA 30328

770.705.0600