That is the seal for the BRAKE interlock cable. Takes about 2 hrs to replace the "bellows" that seals the cable.
You must remove the cable from the pedal first, remove the trans pan & then replace the seal (bellows).
While there you should service the transmission.
MERCEDES Benz Master Guild Technician (6 TIMES)
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190E 2.3 16V ITS SCCA race car (sold)
1986 190E 2.3 16V 2.5 (sold)