Mercedes-Benz Korea ordered to compensate EV owners over battery disclosure

The Consumer Dispute Mediation Committee has decided that Mercedes-Benz Korea must pay 4 million won per owner in a collective dispute settlement. The decision follows allegations that the company failed to disclose that certain electric vehicle models were equipped with Farasis battery cells from China, instead leading consumers to believe they used CATL batteries.

The dispute involves five models, including various EQE and EQS versions. The committee determined that battery manufacturer information is a critical factor in consumer purchasing decisions. It noted that if accurate information had been provided, customers might have reconsidered their purchases or chosen different vehicles.

The settlement also considers the potential decline in vehicle resale value following a high-profile electric vehicle fire in Incheon, which heightened public concern regarding Farasis batteries. Mercedes-Benz Korea has 15 days to accept the mediation proposal, which would carry the same legal effect as a judicial settlement.