Both are cats...the first is the pre cat.

Yes, it does sound expensive..but a talented shop should be able to repair the hole.

Jonathan

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Blue Ridge Mercedes
Jonathan Hodgman
http://www.blueridgemb.com/
Enthusiast Service, Restoration & Tuning.
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Located in the Atlanta area
Specializing in all pre and post merger AMG's including Hammers and DOHC M117 engines.
Mercedes Repair Atlanta