Date registered: Apr 2009
Vehicle: 1999 E320 4matic (owned previously); 1996 SL500
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Your story doesn't make sense. I am getting the feeling like your dealer is taking advantage of you or doesn't know what the hell they are talking about.
Valves do not fall into cylinders unless the timing chain failed and the pistons hit open valves and broke them. BUT if the timing chain is broken there is no way the dealer could get the engine to run. If the valves and piston rings were broken, the compression and leak test would definitely NOT be "ok".
Engines do not have "lids" they have valve covers. And if the dealer removed the valve cover there is no way they could see the piston rings. Even if they removed the cylinder head, they couldn't see the piston rings. In order to see the piston rings you basically have to tear the entire engine apart. And I will say, it is impossible for even a broken piston ring to end up in another cylinder.
Piston rings are held in place in grooves machined into the pistons themselves and can only be removed if the piston is removed from the block/cylinder.
Tell the dealer to put everything back together and tow the car to an independent mechanic.
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