780 units could have damaged airbag control units, which could inadvertently activate the inflators.
Mercedes-Benz Australia has issued a recall for the 2016 model-year E-Class, over concerns the airbag could be damaged.
The German marque reports the air conditioner housing may have "collided with the airbag control unit during assembly", which could have damaged the latter.
If the condition occurs, "this may lead to an impairment of the function of the control unit and an inadvertent activation of the airbags". This poses an injury risk to the vehicle's occupants and could be an accident hazard.
Owners are advised to contact their local dealer for repairs, free of charge.