Service

newschannel
update

To: Mercedes-Benz Dealer Principals, General
Managers, Service Managers, Warranty FROM: Joe Haller, Department Manager, Warranty
Administrators and Bookers

RE: Warranty Coverage Extension: - Seat

Heaters Model Year 2000-2007 M-Class, 2006- DATE: May 18, 2018

2007 R-Class, and 2007 GL-Class

WARRANTY COVERAGE EXTENSION

To enhance the satisfaction of our customers, avoid further costs of litigation and return focus to its core
business, Mercedes-Benz USA, LLC (MBUSA) entered into a settlement regarding claims relating to the original
equipment seat heaters in model year 2000-2007 M-Class, 2006-2007 R-Class, and 2007 GL-Class vehicles. As
part of the settlement, MBUSA offers extended warranty coverage for repairs necessitated by wear and tear of
seat heater electrodes in the outer bolster of the front driver’s side seat, which in rare circumstances could sear
a hole in the seat cover. The warranty extension lasts for a period of up to May 16, 2020 or 180,000 miles,
whichever occurs first. Warranty coverage is provided on a sliding-scale based on mileage, as described below.

Which Vehicles:

e Model year 2000-2007 M-Class, 2006-2007 R-Class, and 2007 GL-Class vehicles with original
equipment seat heaters but only if the VIN for the vehicle is eligible for the extended warranty as
indicated in NetStar/VMI (“Eligible Vehicles”). Please check the VIN before performing any repair
under the extended warranty.

What Is Covered: The warranty extension covers repairs or replacements necessitated by resistance heating of
the seat heater electrodes, which may result in a sear hole in the outer bolster of the driver’s side seat bottom
cover or seat back cover — that is, when a hot spot occurs in the seat heater a hole may develop in the seat
cover (“Qualified Repair”).

What Is Not Covered: This warranty extension does not apply to other types of issues that may concern the
seat heater (e.g., inoperable, uneven heating, too warm/not warm enough, etc.). These other types of seat
heater issues that may present should be treated in the ordinary course of business without regard to this
extended warranty.

What are the Terms of the Extended Warranty: Warranty coverage for a Qualified Repair in Eligible Vehicles
will be extended on the following sliding-scale of coverage from the original 4 years / 50,000 miles to May 16,
2020 / 180,000 miles (whichever occurs first commencing from the In Service Date).

e For seat heaters in Eligible Vehicles needing Qualified Repairs before May 16, 2020 and having 40,000
miles or less from the Eligible Vehicle’s original in-service date, MBUSA will cover 75% of the reasonable
repair amount. Note: there is no double recovery under the settlement—so if the vehicle owner has other
coverage for this repair (e.g., third party warranty coverage), MBUSA will provide warranty coverage only
up to an amount ensuring that a total of 75% of the repair is covered. Generally speaking, this means that
the other 25% of your charges must be collected from the customer.

016-8627-8860/2/AMERICAS . .
& Mercedes-Benz - are registered trademarks of Daimler, Stuttgart, Germany
Service

newschannel
update

e For seat heaters in Eligible Vehicles needing Qualified Repairs before May 16, 2020 and having between
40,000 miles and 80,000 miles from the Eligible Vehicle’s original in-service date, MBUSA will cover 50%
of the reasonable repair amount. Note: there is no double recovery under the settlement—so if the vehicle
owner has other coverage for this repair (e.g., third party warranty coverage), MBUSA will provide warranty
coverage only up to an amount ensuring that a total of 50% of the repair is covered. Generally speaking,
this means that the other 50% of your charges must be collected from the customer.

e For seat heaters in Eligible Vehicles needing Qualified Repairs before May 16, 2020 and having between
80,000 miles and 140,000 miles from the Eligible Vehicle’s original in-service date, MBUSA will cover 25%
of the reasonable repair amount. Note: there is no double recovery under the settlement—so if the vehicle
owner has other coverage for this repair (e.g., third party warranty coverage), MBUSA will provide warranty
coverage only up to an amount ensuring that a total of 25% of the repair is covered. Generally speaking,
this means that the other 75% of your charges must be collected from the customer.

e For seat heaters in Eligible Vehicles needing qualified repairs before May 16, 2020 and having between
140,000 miles and 180,000 miles from the Eligible Vehicle’s original in-service date, MBUSA will cover
15% of the reasonable repair amount. Note: there is no double recovery under the settlement—so if the
vehicle owner has other coverage for this repair (e.g., third party warranty coverage), MBUSA will provide
warranty coverage only up to an amount ensuring that a total of 15% of the repair is covered. Generally
speaking, this means that the other 85% of your charges must be collected from the customer.

This warranty extension applies to Eligible Vehicles regardless of ownership, as long as coverage is sought for a
Qualified Repair that would have been covered had it occurred during the original warranty period.

The warranty extension does not cover consequential damages or any other components or labor to replace the
components should additional repairs be recommended. Check to determine whether there is other warranty
coverage for any additional repairs. Standard warranty terms and exclusions apply to all other components.

VMI will display information regarding this warranty extension in the “Service Packages” section for all Eligible
Vehicles and is detailed below.

Service Packages -

Eligible Vehicles will show coverage in the “Service Packages” in VMI. The “Seat Heater” extended warranty
provides coverage for Qualified Repairs only. The following damage code can be claimed for this extended
warranty repair: Damage Code 21642

If a Qualified Repair is needed during this extended warranty period, the necessary repairs will be covered under
the extended warranty according to the terms above. A claim should be submitted using the above damage
code.

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 or concerns, please contact the Warranty Services Group (WSG) at 877-974-6287.

010-8627-8860/2/AMERICAS . .
& Mercedes-Benz - are registered trademarks of Daimler, Stuttgart, Germany