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I have had good experience with Dan Hall in NE Portland, near Killngsworth and Interstate and I have had the Napa shop on 9th and SE Morrison do a good job. Gary down at Napa is the one you would want to talk to. Check with MBI motors and see who they recommend for Mercs.
Good luck -
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1995 E300D - 193K and $28K in maintenance! 
1964 220Sb - 318K, second owner
1997 Passat TDI - 190K and 47mpg
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