[Reporter’s Notebook] The Carefully Crafted Luxury Car Image Can Collapse in an Instant

Mercedes-Benz Korea disclosed its battery suppliers on the 13th, more than ten days after the electric vehicle fire incident at an apartment in Incheon. Despite the fact that a different battery than previously known was installed, the company had maintained a non-disclosure stance citing headquarters' policies, but immediately revealed the information after public opinion worsened and the government issued recommendations. This indicates that if there had been a genuine intention to inform properly, the information could have been disclosed at any time.

A consumer who purchased a Mercedes electric vehicle said they believed the car used SK batteries at the time of purchase. After the incident, interest in the battery manufacturer increased, and upon further investigation, they found out it was a product from the Chinese battery company Ningde Shidai (CATL). Some others were told by dealers at the time of purchase that LG batteries were used, and similarly discovered that a different battery had been installed this time.

Until the company’s disclosure this time, owners who spent over 100 million won had to scour overseas websites and search engines to find the most basic information about their electric vehicles. This is information that domestic car manufacturers and many importers have typically disclosed before or after new car launches. Mercedes electric vehicle owners are upset not only because domestic batteries were not used but more so because consumer anxiety was ignored after the incident.

Although the company disclosed battery suppliers by model and promised free inspections, consumer backlash continues. On online communities, some owners have expressed the need to formally protest to Mercedes-Benz Korea or the authorities and file complaints. Frontline dealers who directly interact with consumers claim they were given false information by the importer and argue that there is evidence of deceptive sales. Voices demanding battery replacements or full refunds have also emerged.

Based on the circumstances revealed so far, the major reason the fire spread and caused extensive damage was the failure of the initial sprinkler system to operate properly. This suggests that even if the fire had started in an internal combustion engine vehicle, significant damage would likely have occurred. Many citizens, including Mercedes owners, are not pursuing the cause of the fire but are expressing regret over the handling of the situation after the incident.

The fear felt by many citizens due to this fire is somewhat exaggerated. On the other hand, the inconvenience experienced by Mercedes owners is realistic. Those living in apartment complexes may feel uncomfortable, and if there are aggressive neighbors, parking in front of their own homes may become difficult. The resale value of their cars has plummeted endlessly. Aside from their homes, these vehicles are likely their first or second largest assets, which have unintentionally shrunk in value. If valuing customers sincerely is not just rhetoric, the company should have promptly responded to the minimum customer requests such as disclosing the battery suppliers or informing whether their car uses the problematic battery model.

Mercedes-Benz is famous for creating the world’s first internal combustion engine. Even in Germany, the home of automobiles, it is considered one of the top brands in terms of brand value. After Korea opened its automobile market, the first officially imported car was also a Mercedes. At that time, Hansung Motor, which imported Mercedes, is still a shareholder holding nearly half of the shares of the current Mercedes-Benz Korea. Having operated in Korea for nearly 40 years, the company surely understood the Korean market and consumer tendencies.

We are now in a period of upheaval in the automotive industry, intertwined with electrification and intelligence. Many express disappointment at the actions of this historic automaker, which is researching and developing electric and autonomous vehicles, because expectations for the brand were high. Even though the major shareholder is Chinese capital, key development processes and decisions are made at the German headquarters, and there was a belief that they would produce sophisticated cars. We are witnessing how brand value, built over more than 100 years, can be destroyed by a moment of poor response.