Mercedes-Benz Korea Used Chinese Batteries in EVs and Deceived Consumers — Ordered to Pay Compensation

[Anchor]

It was revealed two years ago that Mercedes-Benz Korea was using Chinese-made batteries in its electric vehicles that had previously been recalled over fire risks. The truth only came to light when a massive fire broke out in the underground parking lot of an apartment building in Incheon, rather than being disclosed by Mercedes itself. Holding the company responsible for misrepresenting battery information, authorities have now ordered it to compensate consumers 4 million won per person.

Reporter Jung Hye-jin has the details.

[Reporter]

Two years ago, in the underground parking lot of an apartment building in Incheon.

Smoke began pouring from a vehicle, followed by an explosion and a fire.

The blaze damaged or scorched some 950 vehicles.

The vehicle that caught fire was a Mercedes EQE 350+ electric model that was being charged at the time.

Mercedes EV owners had to endure anxiety over potential explosions and cold stares from those around them.

[Mercedes EV owner: What if an explosion suddenly happens while it's parked? Whenever I park, I always make sure to keep a distance from other vehicles....]

Mercedes had initially advertised that the vehicles were equipped with products from CATL, the world's top electric vehicle battery maker.

However, investigations revealed that the company used batteries made by Farasis, a Chinese firm with a history of recalls over fire risks, in a total of five models without notifying consumers.

[Hwang Won-chul, Standing Commissioner at the Korea Fair Trade Commission (March): (We determined that) this constitutes "unfair customer inducement by fraudulent means," as it misled consumers into believing that its products were significantly superior to what they actually were.]

Having already been slapped with around 11.2 billion won in penalties by the Korea Fair Trade Commission in March, the Korea Consumer Agency's Consumer Dispute Mediation Committee also ruled today (Nov. 4) that Mercedes must compensate consumers.

The committee decided that Mercedes must pay 4 million won each—equivalent to 4 percent of the vehicle's price—to 142 owners who applied for collective dispute mediation, totaling approximately 560 million won.

Because Mercedes-Benz Korea previously objected to the Fair Trade Commission's decision, the dispute is likely to head to a legal battle.

(Video editing: Yoon Tae-ho)
※ Please note: This article was translated by AI and may contain errors.