Mercedes-Benz Korea is suspected of violating advertising and fair trade laws, according to sources from the Fair Trade Commission, Tuesday.
Regulators allege that the Korean unit falsely claimed all of its electric models were equipped with batteries from Contemporary Amperex Technology Co. Ltd., or CATL, China’s leading battery supplier, when in fact some vehicles used lower-cost alternatives.
The company is also accused of directing affiliated dealers to pass along those claims to customers, raising the prospect of deceptive consumer practices under Korean law.
The matter gained urgency after a Mercedes EQE caught fire and exploded in the underground garage of an apartment complex in Incheon last August.
Investigators later found that the car had been fitted with batteries from Farasis, a Chinese manufacturer considered less premium than CATL, despite Mercedes’ advertising to the contrary.
The commission’s inspectors conducted on-site inspections at Mercedes-Benz Korea headquarters and dealerships in September and January. A hearing will be held to determine the severity of any penalties, with both regulators and company representatives participating.
Separately, 24 plaintiffs, including Mercedes-Benz EV owners, filed a lawsuit last October at the Seoul Central District Court, seeking compensation over what they described as misrepresentation of battery suppliers and unresolved safety concerns.
reporter
Kim Dong-young
davekim0807@ajupress.com
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