ACCC accepts Mercedes-Benz airbag recall undertaking

Mercedes-Benz Australia is recalling older C-Class and E-Class models equipped with Takata airbags within the terms of a court-enforceable undertaking to the Australian Competition and Consumer Commission (ACCC).

Takata airbags have been subject to global recalls on a massive scale and are estimated by the industry in Australia to number 3.56 million airbags in 2.59 million vehicles. To date, only around 300,000 airbags are yet to be replaced.

Mercedes-Benz Australia has not rectified all the vehicles affected, but states that they aren't fitted with the 'critical' alpha airbags. Mercedes-Benz worldwide has developed a new type of replacement airbag without the ammonium nitrate inflators that degrade over time and have posed such a problem in the Takata units. But Benz has been struggling to meet the global demand for these replacement airbags.

The ACCC has revealed that Mercedes-Benz has "failed to initiate a recall of certain C class and E class vehicles with faulty Takata airbags, due to spare parts availability, in accordance with the timeframe required under the Takata compulsory recall".

Furthermore, the consumer advocate alleges that by failing to initiate a recall for the vehicles concerned during the period from June to November 2018, Mercedes-Benz Australia may have been in breach of Australian Consumer Law.

"Mercedes-Benz failed to comply with its obligations to initiate recalls under the Takata compulsory recall, potentially putting the lives of drivers and passengers at risk, and failed to inform anyone of the delay," ACCC Deputy Chair Delia Rickard said.

"Industry participants must comply with their responsibilities under the Takata compulsory recall. Failure to do so may contravene the Australian Consumer Law."

"We will continue to take enforcement action where necessary to address non-compliance with the Takata compulsory recall."

Subsequent to making the undertaking to the ACCC Benz has advised owners they can continue to drive their vehicles in the interim and the company will provide those owners with loan vehicles or some reasonable alternative to suffice while the airbags are being replaced. Should an owner prefer not to drive the car while awaiting parts for rectification, the company will provide an alternate means of transport, including a rental car, as one option.

Now that replacement airbags are available to Australian customers, Mercedes-Benz advises that it plans for all affected vehicles to have their Takata airbags replaced by December 31, 2020. A compulsory recall notice will be issued before June this year for the remaining vehicles in need of airbag replacement.

Mercedes-Benz Australia will directly contact owners of the subject vehicles, which are the 204-Series C-Class built between 2008 and 2015 (pictured in Euro NCAP crash test), plus certain 207 (coupe) and 212-Series (sedan and wagon) E-Class models built between 2010 and 2017. And the company will hold to the undertaking that it will keep the ACCC fully informed of "any future anticipated failure to initiate recalls".

"We are pleased that Mercedes-Benz is addressing our concerns and assisting drivers who cannot drive their affected cars by offering them hire cars," Ms Rickard was quoted as saying in a press release from the ACCC.