Marine Power International P/L A.B.N. 25 003 100 007

Recall - Action PlanDiesel: Vessel Sensor Harness Replacement

Date: July 2016

Product Make: Mercury Diesel

Product Model: 2.0L L4 & 2.8L L4, 4.2L L6, 3.0L V6 TDI & 4.2L V8 TDI

Models Affected: All DTS models in below Serial Range

Models Covered Serial Number Range2.0L L4 88206000 and up

2.8L L4 88300000 and up

4.2L L6 88401000 and up

2.0L L4 70002130 and up

3.0L V6 TDI CEZ000000 and up

4.2L V8 TDI CMC000200 and up

No. of Affected Units: 359 (243 of these are in New Zealand and 11 South Pacific)

Market Coverage: Australia, New Zealand and the Pacific Islands

Recall Coverage: Australia, New Zealand and the Pacific Islands

Model Years: All Model Years in above serial range and equipped Digital Throttle & Shift (DTS)

R.R.P.: Ranges from $34k to $58K

Engine Life Span: Approximately 10 Years

Defect Details:An issue has been identified regarding Mercury Diesel sterndrive power packages that are equipped with Digital Throttle and Shift (DTS). A failure of the trim, pitot, steering, or paddle wheel sensor may result in a reduction of sensor voltage and subsequent misinterpretation of the DTS shift actuator's position.

To rectify this problem:A redesigned vessel sensor harness is available to prevent this situation from occurring.As the engine serial number cannot be used to identify if a Mercury Diesel engine is rigged with either DTS or mechanical shifting, reimbursement for inspection time is provided to confirm whether or not DTS is fitted and the campaign can be closed on any engine that may be possibly affected.

Consequences:The shift actuator may shift into forward gear during the engine start process, even though the electronic remote control handle is in the neutral position. The drive will remain in forward gear until the failed sensor is disconnected.

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Marine Power International P/L A.B.N. 25 003 100 007

2.0L Diesel (in-line 4 cyl) Sterndrive 2.8L Diesel (in-line 4 cyl) Sterndrive

4.2L Diesel (in-line 6 cyl) Sterndrive 3.0L TDI Diesel (V6) Sterndrive

4.2L TDI Diesel (V8) Sterndrive

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Marine Power International P/L A.B.N. 25 003 100 007

Identification of DTS Shift Actuator

DTS(Requires Inspection)

Mechanical(No Action Required)

Original Vessel Sensor Harness(Replace with the redesigned harness.)

Redesigned Vessel Sensor Harness(No Action Required)

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Marine Power International P/L A.B.N. 25 003 100 007

Action to notify affected Customers:

Within 7 business days Marine Power International will send a letter giving notice of the recall to all consumers who are registered with Marine Power International as owning an engine within the affected serial number range.

It is a mandatory requirement for the consumer’s details to be registered with Marine Power upon sale of the products. This is performed by the MerCruiser Dealers using the product’s unique serial number. Subsequent owners (who may have purchased the engine second hand from the original owner) are also required to register their purchase to be eligible for protection under the factory warranty. Through this process of registration, Marine Power International has obtained the name, address, telephone number and (if available) email address of each customer or commercial and government user who has purchased an affected engine.

Marine Power International believes that its warranty records will provide accurate contact information for owners.

Marine Power International will review the level of responses that it receives from consumers and, if appropriate, consider other methods to notify consumers such as notices in print media.

Registered owners of affected engines will be sent a letter in the form of Attachment A.

We will place the notice (Attachment C) via the company website (www.mercurymarine.com.au) for a minimum period of 6 months.

Action to notify Dealers:

Marine Power International Dealers in Australia, New Zealand and South Pacific will be sent Mercury Diesel Service Bulletin 2016-66 (Attachment D), and a letter addressed to authorised Dealers in the form of (Attachment B), with copies of the customer letter (Attachment A). They will also receive a list of affected products that include their inventory and registered engines (Attachment E).

Dealers will notify us of each unit inspected/repaired via a warranty claim. These units will then be marked off on a list of affected engines. (Attachment F).

Dealer Action:

Engines presented to authorized Mercury Diesel Dealers for inspection firstly to see if the engine is equipped DTS and if it is, the Vessel Sensor Harness will be inspected. If required, the Vessel Sensor Harness will be replaced as outlined in the Mercury Diesel Service Bulletin 2016-66.

Once the Dealer has inspected and/or replaced the Vessel Sensor Harness, the Dealer will then submit a warranty claim with the product serial number to be processed as a normal Mercury Diesel warranty claim.

Follow up Action:

The list of affected engines (Attachment F) will be reviewed after 2 months. Consumers who have not had their engines inspected will be contacted by phone or email.

This review and consumer contact will continue until 95% of the rework is completed.

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