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 customerâÃÂÃÂs 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.
