"Mercedes-Benz Korea to Compensate 4 Million Won Per Car Owner"... Who Are the Targets?

A collective dispute resolution has ruled that Mercedes-Benz Korea should pay 4 million won per vehicle owner in connection with its failure to properly inform consumers about the manufacturer of electric vehicle batteries.

The Consumer Dispute Resolution Commission under the Korea Consumer Agency has ruled that Mercedes-Benz Korea holds liability for damages.

The ruling stems from findings that although five vehicle models, including the EQE and EQS, were equipped with battery cells from China's Farasis, Mercedes-Benz Korea omitted this fact from sales guidelines distributed to dealerships and instead guided them as if only CATL batteries were installed.

The subjects of this adjustment are 142 consumers who purchased the EQE 500 4MATIC SUV, EQE 53 4MATIC+, EQE 350+, EQE 350 4MATIC, and EQS 350.

They belatedly learned that Farasis batteries were installed and filed for collective dispute resolution in May.

The commission pointed out that Mercedes-Benz Korea produced and distributed sales guidelines containing incorrect information to its dealerships.

It also took issue with the fact that the company actively utilized the guidelines in sales through employee training.

This means consumers were deprived of the opportunity to make rational choices while purchasing vehicles trusting the explanations of dealership employees.

Accordingly, the compensation amount was set at 4 million won per car owner.

The commission took into consideration that the battery is a core component determining vehicle performance and safety.

It also reflected differences in market share, brand awareness, and technological prowess between CATL and Farasis.

In addition, the possibility that the resale value of the vehicles declined due to growing negative perceptions of Farasis batteries following the Incheon Cheongna EV fire in 2024 was factored into the calculation of the compensation amount.

Mercedes-Benz Korea must notify whether it accepts the decision within 15 days from the date it receives the decision document.

If the mediation is accepted, it carries the same legal effect as a judicial settlement.

The commission plans to proceed with follow-up procedures so that victims who did not participate in the mediation can receive identical compensation.

Commission Chairperson Han Yong-ho stated that he hopes Mercedes-Benz Korea will actively step up to resolve the dispute and restore Korean consumers' trust in German imported cars.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.