The baffling silence of Mercedes in South Korea
Almost two weeks have passed since the incident where a Mercedes-Benz electric car caught fire unexpectedly in a parking lot, leading to a terrifying fire in Incheon, South Korea on August 1, but Mercedes-Benz South Korea has shown little positive response or willingness to address the issue.
Appraisers are inspecting the remains of the burnt Mercedes-Benz electric car in Incheon on August 8 (Photo: Yonhap).
The slow reaction of Mercedes-Benz South Korea to the incident raises questions about the company's crisis management capabilities. This could potentially have a negative impact on the brand image in a market where the company has been experiencing stable sales growth for many years.
The public's concerns about the safety of electric vehicles have escalated after a Mercedes-Benz electric car started the fire but ended up engulfing the entire parking lot under the basement of an apartment complex in Incheon, causing more than 100 cars to be completely burned or heavily damaged.
Hundreds of residents there are still living in temporary housing as the apartment complex has been cut off from electricity and water.
After the fire, the company issued a brief statement expressing regret over the incident and said they would immediately conduct a thorough inspection of the car in coordination with relevant authorities.
However, for over a week following the incident, Mercedes-Benz South Korea has not provided any response to media inquiries, despite reports and issues related to the safety risks of electric car batteries being raised by the press, auto industry watchers, and experts.
The police conducted an inspection of the car early last week, but it is unclear if Mercedes-Benz South Korea was involved. The company's media representatives declined to comment on this information.
Many top executives of Mercedes-Benz South Korea met with lawmaker Lee Yong-woo, representative of Cheongna district in Incheon, where the fire occurred, on August 7.
This meeting was also arranged through the lawmaker's office.
Lawmaker Lee Yong-woo (right) met with some top executives of Mercedes-Benz South Korea at his office in Incheon on August 7 to discuss the fire incident that happened a week earlier (Photo: Yonhap).
Oddly enough, Mathias Vaitl, CEO and President of Mercedes-Benz South Korea, is still traveling abroad and has not rushed back to Korea despite the fire occurring a week ago.
According to sources, Lee stated that given the seriousness of the damage from the fire, Vaitl should return as soon as possible to hold a meeting with those affected by the fire. Company executives responded that the CEO plans to shorten his overseas trip, which was originally scheduled to last until August 20.
They are also reportedly keen to meet with residents living in the aforementioned apartment complex to listen to their concerns and consider necessary support, but have not made any definitive commitments.
In a statement sent to the Korean news agency Yonhap on the afternoon of August 9, Mercedes-Benz stated that Vaitl is currently in Germany and will return to Korea soon.
The company said the CEO is in direct and regular contact with relevant parties to support the investigation of the fire.
Mercedes-Benz also stated that the leadership and staff of the Korean branch are fully committed to supporting the investigation and determining the cause of the incident.
The slow and indifferent response from Mercedes-Benz South Korea is in stark contrast to the voluntary decision of Hana Bank to open its campus to provide temporary housing for residents affected by the fire.
Police removing the burnt Mercedes-Benz electric car from the parking lot under the apartment complex in Incheon on August 5 (Photo: Yonhap).
Firefighting water sprinkler system on the ceiling not functioning
Security camera footage showed the Mercedes parked in the basement, not charging, suddenly catching fire without any external influence. Investigators have not yet reached a conclusion on the exact cause of the fire.
In addition, the firefighting sprinkler system on the ceiling of the parking lot was clearly not functioning at the time of the incident, and this is believed to have caused the fire to spread quickly, when the extent of the damage could have been smaller.
Despite this, residents of the apartment complex where the fire occurred have expressed outrage at the indifference of Mercedes-Benz South Korea, believing the company is trying to evade responsibility, especially when there is information about the malfunctioning firefighting water sprinkler system. They expect the company to show empathy and support residents in stabilizing their lives after the fire.
Speaking to Yonhap news agency over the phone, one of the affected residents in the apartment complex mentioned that residents fear Mercedes-Benz may approach the issue purely from a legal standpoint.
"We are concerned that Mercedes-Benz may stand up and say, for example, even though more than 70 cars were damaged, it could have been only 10 if the firefighting water sprinkler system had functioned properly," the resident said.
On a broader scale, some observers believe that Mercedes-Benz also faces the risk of reputation damage in South Korea, as it is the company's fourth largest market, after China, the US, and Germany.
Many speculate that the burnt car may have used batteries from CATL, a leading global electric vehicle battery supplier. However, it was surprising that the battery pack came from Farasis Energy, a Chinese company ranked 10th globally.
Farasis Energy conducted a large recall in China in 2021 due to battery fire risks. Farasis Energy's batteries have never been safety tested by South Korean authorities.
Mercedes-Benz South Korea declined to comment on the battery pack information for the burnt car.
Since the fire incident, more and more opinions suggest that car companies need to publicly disclose information about the battery brands used in electric vehicles in South Korea.
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