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That's nowhere near as bad as it was on my brother's old 300D......the shock went through it one day and it still held together until I was able to replace the arm!
His rusted all the way around and then the shock fell through.
My dad's old 300sd parts car has an arm that split and bent....car was sagging but still drivable.
I would rate that rust as "could patch it/paint it and drive a long while yet" or "fix when you have the time within the next year or two".
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-diesel is not just a fuel, its a way of life- 
'15 GLK250 Bluetec 118k - mine - (OC-123,800)
'17 Metris(VITO!) - 37k - wifes (OC-41k)
'09 Sprinter 3500 Winnebago View - 62k (OC - 67k)
'13 ML350 Bluetec - 95k - dad's (OC-98k)
'01 SL500 - 103k(km) - dad's (OC-110,000km)
'16 E400 4matic Sedan - 148k - Brothers (OC-155k)
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