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 burnt, and an additional 100 cars in the parking lot were damaged. (Yonhap)
SEOUL, Aug. 9 (Korea Bizwire) – Questions have been raised over the crisis response capacity of Mercedes-Benz Korea Ltd., as the company remained largely silent for over a week on an electric vehicle (EV) fire scare that started from one of its vehicles.
Public concerns over EV safety mounted in the country after aspontaneous fire that began in a parked Mercedes-Benz EV ended up obliterating an entire parking garage inside an apartment complex in Incheon, 27 kilometers west of Seoul, either completely destroying or damaging over 100 cars.
Hundreds of apartment residents still remain in temporary shelters due to a disruption in the water and power supply.
Following the incident, the company issued a short statement stating it was sorry that the accident occurred and that it “will immediately investigate the vehicle thoroughly in cooperation with authorities.”
Since then, Mercedes-Benz Korea did not provide a meaningful update in response to media queries, while the press, automotive industry watchers and experts have raised various reports and issues involving EV battery safety risks.
Several senior executives at Mercedes-Benz Korea did meet with a South Korean legislator, Rep. Lee Yong-woo of the main opposition Democratic Party, a National Assembly representative for the district of Cheongna in Incheon, where the accident occurred, on Wednesday.
It was arranged at the request of the lawmaker’s office.
Firefighters attend to children who escaped from an apartment complex in Incheon, west of Seoul, on Aug. 1, 2024, when a parking garage was engulfed in flames after an electric vehicle spontaneously exploded. (Yonhap)
What comes as perplexing is the fact that Mathias Vaitl, CEO and president of Mercedes-Benz Korea, still remains overseas on a business trip — not having returned even after a week since the debacle occurred involving one of his company’s vehicles in South Korea.
According to sources, Lee stated that given the significant damage caused by the fire, Vaitl should return at the earliest possible time to hold a meeting with the affected community. Company officials replied that the CEO plans to shorten his trip, which was initially set to last until Aug. 20.
They reportedly expressed their intent to promptly meet with the apartment complex residents to listen to concerns and review relief support efforts.
Company officials did finally show up at the apartment Friday evening and offered to donate 4.5 billion won (US$3.3 million) in relief support.
In a statement sent to Yonhap News Agency on Friday afternoon, Mercedes-Benz said Vaitl was in Germany and was “returning to Korea.”
The company said the CEO “stays in constant and direct contact with all relevant parties to support the investigation of the incident.”
Mercedes-Benz Korea’s belated gestures follow a voluntary decision by local lender Hana Bank to open up its in-house education campus in the area to be used for emergency relief for the affected residents.
To be clear, while security camera footage showed the idly parked Mercedes vehicle burst into flames without any external shock, investigative authorities have yet to reach a conclusion on the exact cause of the fire.
This undated photo provided by Mercedes-Benz Korea shows company CEO and President Mathias Vaitl. (Yonhap)
Also, it has been reported that the water sprinkler system at the parking garage apparently did not work at the time, which presumably may have exacerbated the damage from what could have been smaller in scope.
Before the executives showed up late Friday, residents had expressed frustration that Mercedes-Benz Korea could be more focused on trying to avoid showing any signs of legal liability — especially after reports of the purported water sprinkler malfunction.
“We’re worried that Mercedes-Benz could come out and say, for example, that while over 70 vehicles were damaged, it may have been limited to only 10 cars had the water sprinkler system properly worked,” one resident told Yonhap News Agency over the phone.
Looking from a broader industry perspective, watchers point out that Mercedes-Benz is also risking its brand reputation in South Korea, which the German automotive company often calls its fourth-largest market after China, the United States and Germany.
Many had speculated that the vehicle in question was likely equipped with battery cells from CATL, the leading global supplier of electric car batteries. To the surprise of many, the battery turned out to be from Farasis Energy, a Chinese firm known to be ranked at around 10th globally.
A Mercedes-Benz dealership in Seoul (Yonhap)
Farasis Energy carried out a major recall in China in 2021 due to battery fire risks. It was also learned that Farasis Energy batteries have not once been tested for safety by South Korean authorities.
Mercedes-Benz Korea declined to comment on the details of the battery cells in the vehicle. Since the accident, calls for mandatory disclosure of EV battery brand informationhave grown in South Korea.
The company’s EV fire issue will likely be brought up at the National Assembly during an annual parliamentary audit later this year, sources said.
“We’d like to hold a parliamentary hearing as soon as possible, but we still have to wait for the results of the police investigation surrounding the fire case,” a source at the National Assembly said.
(Yonhap)
