Tag Heuer Formula 1 rubber sides around the bezel

I own a Blue Tag Heuer Formula 1; the problem is that the rubber sides around the bezel have deteriorated.

The Tag Heuer authorized retailer in my area told me the complete bezel has to be replaced to the newer model because Tag Heuer does not have a replacement for the model that I have which is about three years old. This dealer is charging me $400.00 to replace the bezel.

Since Tag Heuer stopped making the bezel for my watch; shouldn't it be replaced at no charge due to the fact that this might have been a manufacture defect?