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There is a plunger sensor on the left firewall just above the emergency brake lever, I have the same problem in my 87 300E, go to your local hardware store and buy a plastic cap and glue it on the plunger to extend the plunger to turn off the dash light, quick and easy fix
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Jerry
2004 SL500 Black 55K Miles 
2002 s500 Black 90K Miles 
1986 300E Gold 233K Miles
1966 Twin Cessna 320D
1989 Jeep Cherokee 233K Miles
1994 Ford Van E150 399K Miles
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