Hogan Lovells US LLP 

Columbia Square 

555 Thirteenth Street, NW 

Washington, DC 20004 

T +1 202 637 5600 

F +1 202 637 5910 

www.hoganlovells.com

July 27, 2018 

 CONFIDENTIAL BUSINESS INFORMATION REDACTED 

Mr. Jonathan Morrison 

Chief Counsel 

National Highway Traffic Safety Administration 

(NCC-111), Room W41-227 

1200 New Jersey Avenue, SE 

West Building 

Washington, DC 20590 

RE: Docket No. NHTSA-2015-0055 – Update to Mercedes-Benz USA Request for 

Extension of Priority Groups 4 and 5 Sufficient Supply and Remedy Launch 

Deadline Under ¶ 39 of the Third Amended Coordinated Remedy Order to 

Address Takata Recalls 

Dear Mr. Morrison: 

On behalf of our clients, Daimler AG (“DAG”) and Mercedes Benz USA, LLC (“MBUSA”), and 

pursuant to ¶ 39 of the Third Amended Coordinated Remedy Order to address the Takata recalls, 

this letter updates the June 21, 2018 letter requesting an extension of time in which to comply with 

the sufficient supply and remedy launch deadlines for certain vehicles in Priority Groups 4 and 5, as 

set forth in ¶ 33 of the Fifth Amendment to the Takata Coordinated Remedy Order (“Fifth Amended 

Order”). In the June 21, 2018 letter, MBUSA and DAG requested a July 31, 2018 launch deadline 

for Priority Group 4 Model Year (“MY”) 2008-2009 C-Class (204 platform) vehicles in the HAH 

region; an August 31, 2018 launch deadline for Priority Group 4 MY 2008-2009 C-Class (204 

platform) vehicles in the remainder of Zone A; and an October 31, 2018 launch deadline for Priority 

Group 5 MY 2008-2009 C-Class (204 platform) vehicles in Zone non-A. 

MBUSA will launch the remedy for the vast majority of Priority Group 4 MY 2008-2009 C-Class (204 

platform) vehicles in the HAH region at the end of July in line with the requested launch date set out 

in our request from June 21, 2018; however, MBUSA and DAG recently received information 

impacting the launch date for the recall of the AMG variant of the MY 2008 – MY 2011 C-Class (204 

platform) vehicles. This new information requires MBUSA to update its June 21, 2018 extension 

request. 

1. Background 

As described in prior communications to NHTSA, MBUSA is implementing a Takata recall remedy 

strategy that involves use of the superior technical solution of [guanidine nitrate (“GuNi”)] based 

inflators. MBUSA and DAG have worked closely with [Takata and its successor, Joyson Safety 

Systems (JSS)] to develop and validate the [GuNi] replacement parts. For each replacement 

module DAG is carrying out extensive testing and validation procedures to ensure fulfillment of all 

relevant performance requirements. [The comprehensive testing and validation program includes 

but is not limited to sled testing and vehicle crash testing.] Upon completion of all necessary testing 

and validation for each module, DAG releases the use of the respective [GuNi] inflator-equipped 
Mr. Jonathan Morrison

July 27, 2018

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airbag module in MBUSA vehicles and [JSS] will start supplying these modules to DAG and MBUSA 

accordingly. 

MBUSA and DAG recently learned that the testing and validation process for the AMG variant of the 

C-Class (204 platform) model could not be completed. Accordingly, it will not be possible to comply 

with the requested Priority Group 4 and 5 launch deadlines for the AMG vehicles listed in MBUSA’s 

June 21, 2018 letter. 

Please note that the AMG variant is a limited production vehicle and the affected vehicle population 

is restricted to a total of 3,739 vehicles from MY 2008 to MY 2011. Specifically, the affected vehicles 

are as follows: 

- 1,893 MY 2008-2009 Zone A vehicles in Priority Group 4;

- 1,048 MY 2010-2011 Zone A vehicles in Priority Group 5; and 

- 798 MY 2008-2009 Zone non-A vehicles in Priority Group 5. 

The testing and validation process for the AMG variant of the C-Class (204 platform) model was 

progressing according to schedule. All preliminary validation procedures and tests, including [sled 

tests] were carried out successfully, fulfilling all relevant requirements. However, [during the final 

vehicle crash test prior to validation and release of the module], it became apparent that the 

performance of the module did not meet the specifications. [Specifically, the right femur value of the 

driver dummy was outside the specified range for the relevant crash test scenario.] 

Detailed analysis and evaluation of the test parameters and crash data indicated the test was carried 

out correctly and the test result was valid. As such, it was established that the possibility of merely 

re-running the [crash test with a corrected test set-up] was not viable. Upon further investigation it 

was apparent certain adaptations [to the relevant restraint system] would be necessary. Therefore, 

the airbag module for the AMG variant of the C-Class does not currently meet the certification 

standards for release. 

The DAG Research & Development department is currently in the process of investigating possible 

adaptations [to the restraint system]. At this stage, it is not feasible for the DAG Research & 

Development department to assess whether changes [to current tooling] will be required, as such 

measures will only be apparent upon conclusion of the research and development phase for the 

[adapted restraint system]. 

In addition to the research and development process for the possible [adaptation to the restraint 

system], it is necessary to locate and source an additional C-Class (204 platform) AMG vehicle from 

the U.S. market for the purposes of the further testing and validation process. As the vehicle is 

sourced [from the U.S. market], it is subject to a series of quality controls to ensure suitability for 

representative [crash] testing. [For instance, the vehicle must be in good condition, never have 

been involved in an accident, and the complete electrical system of the vehicle must be thoroughly 

checked.] 

2. Amended Request for MY 2008 – MY 2011 C-Class (204 Platform) AMG – Priority 

Groups 4 and 5 

Taking into account the time required to identify and address the necessary [adaptations to the 

restraint system,] carry out the preliminary validation and testing [ including sled tests ], source and 

prepare a suitable vehicle [from the U.S. market], carry out additional required [validation crash]

tests, release the parts and ship them to the U.S., MBUSA currently anticipates it will be in a position 

to launch the recall for the subject vehicles as follows: 
Mr. Jonathan Morrison

July 27, 2018

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 MY 2008-2009 Zone A vehicles in Priority Group 4 by May 31, 2019; 

 MY 2010-2011 Zone A vehicles in Priority Group 5 by May 31, 2019; and 

 MY 2008-2009 Zone non-A vehicles in Priority Group 5 by May 31, 2019. 

Of course, these dates are subject to successful completion of all testing necessary to validate the 

parts.

MBUSA will launch this recall once twenty percent of replacement parts are available to dealers. 

MBUSA currently anticipates that it will have the requisite twenty percent part supply available by 

May 31, 2019 for both Priority Group 4 and 5 C-Class (204 platform) AMG vehicles. 

MBUSA respectfully requests an extension of time to comply with the Priority Group 4 launch 

deadline for MY 2008 – 2009 C-Class (204 platform) AMG vehicles in Zone A, and the Priority Group 

5 launch deadline for MY 2008 – MY 2011 C-Class (204 platform) AMG vehicles in Zone non-A, until 

May 31, 2019.

* * *

Thank you for your consideration of this request. Please let us know if you need any additional 

information.

Sincerely,

R. Latane Montague

Attachment: Certificate in Support of Notice of Anticipated 

 Shortage and Request for Extension

Cc: Stephen Hench, Esq.

R. Thomas Brunner