Unfortunately, this is a typical problem with MBs that have solid red paint.
According to other users, MB has said that their new paint guarantee is for 6 years. Unfortunately, I couldn't locate this information in writing.
It is not guaranteed, but some members were successful in getting MB to provide a free bare-metal respray (excluding bumpers and other plastic trim components).
I can only assume that selling the automobile in its present state would result in a substantial loss; if MB is unsuccessful, you may pursue other legal options, such as the courts or the ombudsman.