A joint investigation is underway, Aug. 8, to find the cause behind a fire from a Mercedes-Benz EQE electric sedan at an apartment complex's underground parking garage in Incheon. Officials from the police, fire authority and the German luxury carmaker gathered to investigate the vehicle fire.
Yonhap Luxury carmaker's Korean office silent despite growing public unrest By Lee Min-hyung Mercedes-Benz Korea President and CEO Mathias Vaitl / Courtesy of Mercedes-Benz Korea Mercedes-Benz Korea is rapidly losing its reputation and trust among Korean customers due to what is perceived as “overly defensive” responses from its headquarters regarding a catastrophic fire caused by its EQE electric vehicle (EV), according to industry officials. The incident, which erupted in an apartment complex parking garage in Incheon earlier this month, caused massive damage. More than 40 vehicles were totally destroyed in the fire, and hundreds of other cars were also severely damaged.
This incident has triggered escalating public concerns about EVs. The German luxury carmaker is drawing criticism for not announcing any countermeasures in response to the latest fiasco. While the company has decided to donate 4.
5 billion won ($3.28 million) to affected residents, it has not issued an official public apology. The carmaker is especially taking flak for responding way too defensively to requests to reveal its parts suppliers.
The problematic EQE sedan was equipped with what customers believe to be an unsafe battery manufactured by China's Farasis Energy. Even though an investigation is still underway, there is a significant possibility that the battery caused the recent incident. Unlike Mercedes-Benz, other carmakers have been more forthcoming with information on the batteries used in their EVs upon the request of customers and media outlets, according to company officials.
“We have not concealed, nor did we deny sharing information on where we source batteries for our EVs,” an official from BMW Korea said. “When reporters or customers want to know about the specifications, we have remained open to share them.” Other carmakers were also not reluctant to share such information even before the latest EQE fire started making headlines here.
“Audi Korea did not conceal the source of battery cells used for our EVs, and shared it when reporters or customers asked,” an official from the carmaker said. This was the case for other homegrown carmakers, such as Hyundai Motor and Kia. A spokesperson at Hyundai Motor said the company does not have to hide the information for any contractual reasons with clients.
“When customers, dealers or reporters ask about battery specifications, we let them know the details,” the spokesperson said. “But we have not made it public, as there is no regulatory framework mandating us to do so.” Mercedes-Benz Korea remains reluctant to follow suit in line with its headquarters' policy.
“We do not share any details on our parts suppliers to abide by guidelines from our headquarters,” an official from the carmaker said. Investigators examine the burnt-out shell of a Mercedes-Benz EQE electric sedan in Incheon, Aug. 8.
Earlier this month, the vehicle suddenly caught fire inside the underground parking lot of an apartment complex in Incheon. Yonhap No immediate response Mercedes-Benz Korea’s response leaves much to be desired, when compared with an earlier scandal caused by multiple reports of fires in BMW Korea’s flagship 520d sedans in 2018. At that time, the company responded swiftly by recalling the models, shortly after public concerns started escalating in August the same year.
Top executives from the company also issued public apologies for having caused the controversy. Former BMW Korea Chairman Kim Hyo-joon bowed his head in apology at an emergency press conference in Seoul. Other executives in charge of quality control of BMW vehicles also joined the meeting to share every single detail on the internal investigation into the reported fire cases.
But Mercedes-Benz Korea President and CEO Mathias Vaitl is nowhere to be seen after the EQE fire escalated into a major social issue here. He was last seen in public in July when the carmaker held a media event to introduce its CLE Cabriolet vehicle. The carmaker declined to comment on its future action plans, only saying that it has nothing else to share due to the ongoing investigation.
Even though the root cause of the fire has yet to be confirmed, the carmaker is facing a severe public backlash for not taking any actions to address the growing unrest. This clouds the outlook for Mercedes-Benz Korea to regain its title as the nation’s top-selling import carmaker. According to data from the Korea Automobile Importers & Distributors Association, Mercedes-Benz Korea’s sales reached 34,380 vehicles between January and July this year, down 15.
8 percent from the previous year, widening the lead of its arch-rival, BMW Korea. The gap in their market shares expanded to 4.83 percentage points from 2.
12 percentage points during the same period. Mercedes-Benz Korea had been the top-selling import car brand here for seven years since 2016, but yielded the spot to BMW Korea last year. The latest scandal is expected to put a further damper on Mercedes-Benz Korea, and chances are growing that BMW Korea will extend its winning streak this year again.
With the EQE-sparked EV-phobia showing no signs of abating, the government held an emergency meeting Monday to discuss how to ensure safety for EVs. Ranking bureaucrats from the nation’s environment, land and trade ministries joined the meeting with a group of officials from imported and domestic carmakers..
