Hogan Lovells US LLP 

Columbia Square 

555 Thirteenth Street, NW 

Washington, DC 20004 

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www.hoganlovells.com 

CONFIDENTIAL BUSINESS INFORMATION REDACTED 

December 14, 2017 

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 – Daimler Vans Request for Extension of Priority 

Group 6 Launch Deadline Under ¶ 34 of the Third Amended Coordinated 

Remedy Order - Revised 

Dear Mr. Morrison: 

On behalf of our client, Daimler Vans, this letter requests an extension of time in which to comply 

with the sufficient supply and remedy launch deadline for Priority Group 6 vehicles contained in 

Paragraph 34 of the Third Amended Takata Coordinated Remedy Order (ACRO). The Daimler Vans 

vehicles included in Priority Group 6 are Model Year (MY) 2013 and 2014 Freightliner and 

Mercedes- Benz Sprinters in Zones A and non-A, for the driver side airbag. 

Daimler Vans originally submitted an extension request for Priority Group 6 vehicles on September 

26, 2017. Daimler Vans is now updating its extension request to reflect changing part supply 

circumstances and to provide additional information, as requested by NHTSA. 

1. Daimler Vans’ Original Extension Request 

As discussed with NHTSA and the Monitor team last August and September, Daimler Vans learned 

in August 2017 that its expected supply of Takata [ ] inflators for the remainder of 2017 would 

not be as robust as planned. Daimler Vans worked with Takata to increase its part supply allocation, 

and had some success in improving the situation. Daimler Vans initially thought that, despite the 

supply disruption, it might have enough parts to launch Priority Group 6 by the September 30, 2017 

deadline. However, based on the information available in late September and the company’s 

corresponding calculations, Daimler Vans concluded that it could not fully launch Priority Group 6 on 

time. Accordingly, Daimler Vans requested an extension for MY 2013 vehicles to October 30, 2017, 

and for MY 2014 vehicles to November 17, 2017. This phased launch would address the oldest 

vehicles first, and allow additional time for parts to accumulate. Daimler Vans also intended to “flag” 

MY14 vehicles for dealers, in the event a MY14 owner demanded a driver-side replacement prior to 

receiving the notification letter. 

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Mr. Jonathan Morrison CONFIDENTIAL BUSINESS INFORMATION REDACTED 

December 14, 2017 

Page 2 

2. Update for MY 2013 Vehicles 

Daimler Vans believed it had a reasonable plan in place to procure a sufficient quantity of Takata 

[ ] inflators to launch the Priority Group 6 recall for MY 2013 vehicles. The parts ordering 

process for the Takata recall is different from the standard process used in other recalls, and 

involves much longer lead times. In particular, Takata has limited capacity to supply the [ ] 

driver side inflators needed for Priority Group 6 due to competing worldwide demand. Although 

Daimler Vans initiated the process for obtaining parts in May 2017, well in advance of the Priority 

Group 6 launch deadline, and placed parts orders starting in July 2017, these actions were 

insufficient and by August 2017 Daimler Vans realized it was facing a critical parts planning situation. 

Once it realized that it would not be receiving sufficient supplies in time for the Priority Group 6 

launch deadline, Daimler Vans escalated this issue with Takata on August 17, 2017 (escalation 

through Daimler purchasing department), August 31, 2017, and September 5, 2017 (telephone 

conference with Takata to confirm shipment schedules for remainder of 2017), in order to increase 

its part allocation. Daimler Vans was able to successfully increase the number of inflators to be 

delivered for the remainder of 2017 from [ ] to [ ], and to move up the anticipated delivery 

date for the resumption of parts shipments from Takata to the week of October 9, 2017. 

Daimler Vans normally launches a recall with [ ] of the replacement parts available to 

dealers; however, in this case Daimler Vans planned to launch the MY 2013 recall with 

approximately [ ] in order to expedite the recall launch. 

Although part supplies did begin to rebound as anticipated in mid to late October, there was an 

added difficulty that Daimler Vans did not contemplate at the time of its original extension request. 

When parts began arriving, they were designated for dealer backorders. Daimler Vans quickly 

instituted a policy requiring dealers to supply a VIN for any Takata parts order, but was unable to 

apply this policy retroactively. This means that the initial part supplies expected for the MY 2013 

launch went largely to satisfy backorders, which caused a slight additional delay. Daimler Vans was 

able to launch its MY 2013 Priority Group 6 recall on November 10, 2017. Part supplies have 

increased steadily as anticipated, with [ ] of remedy parts currently available based on the 

number of MY 2013 vehicles remaining to be repaired. 

Daimler Vans respectfully requests that NHTSA consider this letter an amended request for an 

extension of time to comply with the Priority Group 6 launch deadline for MY 2013 vehicles, to 

November 10, 2017. 

3. Update for MY 2014 Vehicles 

Daimler Vans has faced similar supply issues with its MY 2014 Priority Group 6 vehicles, with an 

additional complication. There was a [ ] for the MY 2014 Mercedes-Benz Sprinter, impacting 

the highline/multi-functional steering wheel option for Mercedes-Benz Sprinter vehicles only. [ 

] Unfortunately, Daimler Vans was unaware of this parts incompatibility issue for this 

specific group of vehicles until very recently. Daimler Vans is expediting delivery of the unique parts 

needed for this sub-population of Priority Group 6 [ ] from the DAG 

Parts Center in Germany. Given normal airfreight delivery times and allowing time for allocation to 

dealers, and considering typical year-end distribution delays, Daimler Vans expects to have the parts 

in place to launch the remedy for this group of vehicles by January 12, 2018, at which point 

approximately [ ] of remedy parts will be available. Daimler Vans proposes to open the 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mr. Jonathan Morrison CONFIDENTIAL BUSINESS INFORMATION REDACTED 

December 14, 2017 

Page 3 

recall in its internal systems on that date, with immediate dealer notification, and customer 

notification letters one week later, on January 19, 2018. MY 2014 Mercedes-Benz Sprinters with the 

[ ] would be flagged in Daimler Vans’ recall 

management system at the time this phase of the recall is launched on January 12, 2018, so that 

any affected vehicle owner who requests a driver side replacement prior to receiving a notification 

letter can obtain a remedy. 

For the remainder of MY 2014 Priority Group 6 vehicles – Freightliner Sprinters, which did not 

receive the [ ], and Mercedes-Benz Sprinters with the [ ] version of the steering wheel – 

Daimler Vans is quickly rebuilding its part supplies and expects to have a sufficient quantity of 

remedy parts in place to begin launching the remedy in the immediate future. However, because 

MY 2013 Priority Group 6 vehicles also utilize the same remedy parts, Daimler Vans proposes to 

launch the remedy for this sub-group in two phases, in order to allow sufficient part supplies to 

accumulate. Daimler Vans proposes to launch the remedy for the first phase of this group, MY 2014 

Freightliner Sprinters [ ] on December 20, 2017, at which point 

approximately [ ] of remedy parts will be available. Daimler Vans proposes to open the 

recall in its internal systems on that date, with immediate dealer notification, and customer 

notification letters one week later, on December 27, 2017. MY 2014 Freightliner Sprinters would be 

flagged in Daimler Vans’ recall management system at the time this phase of the recall is launched 

on December 20, 2017, so that any affected vehicle owner who requests a driver side replacement 

prior to receiving a notification letter can obtain a remedy. 

For the second phase of this group, MY 2014 Mercedes-Benz Sprinters produced with the [ ] 

version of the steering wheel [ ] Daimler Vans proposes to launch the 

remedy with the remainder of the MY 2014 Mercedes-Benz Sprinters (those with the [ 

] version of the steering wheel, [ ]) on January 12, 2018, at 

which point approximately [ ] of remedy parts will be available. Daimler Vans proposes to 

open the recall in its internal systems on that date, with immediate dealer notification, and customer 

notification letters one week later, on January 19, 2018. Daimler Vans will flag all of the MY 2014 

Mercedes-Benz Sprinters produced with the [ ] version of the steering wheel for dealers at the 

time this phase of the recall is launched on January 12, 2018, so that any affected vehicle owner 

who requests a driver side replacement prior to receiving a notification letter can obtain a remedy. 

Daimler Vans believes this approach will provide clarity, in that all MY 2014 Freightliner Sprinters will 

be addressed at once (on December 20, 2017), and all MY 2014 Mercedes-Benz Sprinters will be 

addressed at once (on January 12, 2018). Moreover, this approach will help ensure that sufficient 

part supplies accumulate so that there are adequate remedy parts available to customers at the time 

each phase is launched. 

In summary, Daimler Vans respectfully requests that NHTSA consider this letter an amended 

request for an extension of time to comply with the Priority Group 6 launch deadline for MY 2014 

vehicles, as follows: 

•	 to December 20, 2017 (recall launch date; customer notification date December 27, 2017) for 

MY 2014 Freightliner Sprinters; and 

•	 to January 12, 2018 (recall launch date; customer notification date January 19, 2018) for MY 

2014 Mercedes-Benz Sprinters. 
 

 

 

 

 

 

 

 

 

 

Mr. Jonathan Morrison 

December 14, 2017 

Page 4 

Thank you for your consideration of this request. 

Sincerely, 

R. Latane Montague 

Attachment: Affidavit in Support of Extension Request 

Cc: Stephen Hench, Esq. 

R. Thomas Brunner
 

Michael D. Scott