Mercedes-Benz faces lawsuit in Korea over electric vehicle fire

By Kim Dong-young Posted : October 10, 2024, 15:15 Updated : October 10, 2024, 15:15
This Sept. 29, 2024, photo shows a group of Mercedes-Benz electric vehicle (EV) owners protesting outside the Mercedes-Benz Korea headquarters in Seoul. Yonhap
SEOUL, October 10 (AJP) – A group of 24 people, including owners of Mercedes-Benz electric vehicles (EVs), on Thursday filed a damages suit against the German luxury automaker and its local sellers in connection with a massive fire involving a Mercedes-Benz EV in August.

A Mercedes-Benz EQE sedan exploded in the underground parking garage of an apartment complex in Incheon, west of Seoul, on Aug. 1, sparking a fire that injured about 20 people and damaged hundreds of other cars.

The plaintiffs lodged a suit with the Seoul Central District Court, seeking compensation over alleged misrepresentation of battery suppliers and safety concerns. The suit targets Mercedes-Benz's German headquarters, Mercedes-Benz Korea, several local dealerships and an automotive financing company.

They claim Mercedes-Benz misled consumers by suggesting the EQE models were equipped with batteries from CATL, the world's leading battery manufacturer. 

The owners’ legal representative, Ha Jong-sun, said that a Mercedes-Benz executive made such a claim in a 2022 interview with Korean media.

A probe following the incident revealed that the EQE models have batteries from a lesser-known Chinese manufacturer, Farasis Energy.

"This is a false statement regarding a crucial aspect of the electric vehicle purchase transaction," Ha said.

The plaintiffs are demanding compensation of about 10 million won (US$7,400) each, with plans to increase the amount pending an investigation by Korea's Fair Trade Commission into false advertising claims, he said.

They also filed a claim for punitive damages, alleging Mercedes-Benz headquarters concealed defects in Farasis batteries despite being aware of them.

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