Members of the ‘Benz EQ FARASIS Deceptive Sales Emergency Committee’ staged a protest in front of Seoul Square in Jung-gu, Seoul, near the headquarters of Mercedes-Benz Korea, on the afternoon of September 27. They accused Mercedes-Benz of installing Chinese FARASIS batteries in some EQE electric vehicles while misleading consumers by claiming the vehicles were equipped with CATL batteries. (Image courtesy of Yonhap)
SEOUL, Oct. 10 (Korea Bizwire) – A group of 24 Mercedes-Benz electric vehicle owners, including the owner of an EQE model that caught fire in an underground parking lot in Incheon last August, have filed a class-action lawsuit against the German automaker and its affiliates.
The lawsuit, announced on October 10 at a press conference in Seoul, targets Mercedes-Benz’s German headquarters, Mercedes-Benz Korea, seven dealerships, and two leasing companies. The plaintiffs are seeking damages for alleged false advertising and concealment of defects related to the batteries used in certain electric vehicle models.
Ha Jong-sun, the attorney representing the plaintiffs, said the lawsuit was filed with the Seoul Central District Court. The initial claim is for 10 million won per plaintiff, with plans to increase the amount following the results of an ongoing investigation by the Fair Trade Commission into Mercedes-Benz’s advertising practices.
At the heart of the dispute is the allegation that Mercedes-Benz misled consumers about the origin of the batteries in their EQE models. The plaintiffs claim that while most of the affected vehicles were equipped with batteries from the Chinese manufacturer Farasis, Mercedes-Benz represented them as being from CATL, China’s leading battery manufacturer.
“This constitutes false disclosure of crucial information in the electric vehicle purchase transaction,” Ha said, citing a 2022 interview in which Christoph Starzynski, a Mercedes-Benz vice president, reportedly stated that CATL batteries would be installed in the EQE models.
The lawsuit seeks compensation for the cost of replacing the battery packs, estimated at 70 million won per vehicle. Additionally, the plaintiffs are requesting the cancellation of their purchase or lease agreements on the grounds of fraud and misrepresentation.
Ha Jong-sun, a lawyer from the law firm Naru, discussed the joint lawsuit involving over 20 owners of Mercedes-Benz EQE electric vehicles against Mercedes-Benz Germany, Mercedes-Benz Korea, and others, at a shared office in Gangnam-gu, Seoul, on the morning of October 10. (Yonhap)
The legal action also includes a claim for punitive damages, alleging that Mercedes-Benz concealed known defects in the Farasis batteries. The plaintiffs argue that the high energy density of these batteries increases the risk of thermal runaway, and that Mercedes-Benz failed to implement adequate design or safety measures to prevent this.
Under South Korean law, auto manufacturers can be liable for up to five times the amount of damages if they are found to have concealed defects that result in significant harm to life, body, or property.
“Mercedes-Benz either knew about these defects or became acutely aware of them after the Incheon parking lot fire, yet failed to issue a recall, effectively concealing the defects,” Ha stated. He argued that the company should be held liable for punitive damages of 350 million won per vehicle, five times the cost of replacing each battery pack.
One of the plaintiffs, identified only by their surname Lee, expressed their concerns at the press conference: “I chose an electric vehicle out of environmental considerations, but since the Incheon fire incident, I’ve been living with considerable anxiety. I wake up several times at night, and nowadays, I park far away from other vehicles and buildings. I want an apology and a recall from Mercedes-Benz Korea.”
Police move an electric Mercedes-Benz sedan from the underground parking lot of an apartment building after completing their probe in Incheon, 27 kilometers west of Seoul, on Aug. 5, 2024. A fire broke out in the car after it exploded on Aug. 1, resulting in 22 residents and a firefighter being hospitalized. Around 40 cars were burned, and an additional 100 cars in the parking lot were damaged. (Image courtesy of Yonhap)
Ashley Song (ashley@koreabizwire.com)
