Korean Mercedes-Benz Dealers Reject Used EQEs After EV Fire

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Following the massive Mercedes-Benz EQE fire incident in an underground parking garage in Incheon last month, Mercedes-Benz EVs are now flooding Korea's used car market, with dealers including the German automakers’s own used vehicle program refusing to accept the EQ series.

Korea JoongAng Daily reported that a Mercedes EQE 350+ owner detailed that dealers in Mercedes’ certified pre-owned program aren’t accepting EVs these days, leaving customers to find other used car platforms on their own. *Korea JoongAng Daily*.

This refusal stems from growing concerns among Korean consumers about the safety of Mercedes-Benz EVs, particularly after an EQE sedan exploded in an apartment complex's underground garage in early Aug. The incident damaged 880 vehicles, disrupted electricity and water supplies for a week, and hospitalised 23 people.

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The EQE in said incident, which was juiced by Farasis Energy, had been parked for nearly three days without being charged or exposed to external stimuli when it experienced what seems to be a battery failure leading to thermal runaway, according to the police.

While Mercedes-Benz Korea did not comment directly on the issue, a spokesperson stated that the company is "cooperating fully with fire authorities to determine the exact cause of the fire." Meanwhile, Mercedes-Benz Korea had also announced that it would donate KRW4.5 billion (RM14.6 million) to assist affected residents.

However, this response has drawn criticism as  Lee Yong-woo of South Korea’s Democratic Party responded, "The KRW4.5 billion of aid is never enough considering the overall damages residents had to suffer. The amount is way too insufficient for residents to go back to their normal lives."

Mercedes-Benz Korea CEO Mathias Vaitl 

He also added, "Mercedes is responding very irresponsibly to this incident, unbefitting of its position in Korea, as it generated KRW8 trillion (RM26 billion) in sales in the Korean market last year, with KRW200 billion (RM648 million) in operating profit."

Through the Mercedes-Benz certified used car program, owners can typically sell their vehicles back to the company, which evaluates them through a 198-point quality assessment before reselling them as certified pre-owned cars. However, as Korea JoongAng Daily pointed out, a chat screenshot between a Mercedes EV owner and a dealer showed that dealers are now refusing to buy back EQE models due to safety concerns.

As a result, prices for used Mercedes-Benz EVs are plummeting and sales of new Mercedes-Benz EVs are also tanking with only 39 new EQE EV sales registered in Korea in Aug, marking a steep 89% decline from the same month last year, according to data from the Korea Automobile Importers and Distributors Association.

The association’s data also shows the larger EQS flagship EV saloon saw an 82.4% drop in sales, while the smaller EQA EV sold just 43 units in Aug, a 57% year-on-year decrease.

The explosion on Aug. 1 damaged hundreds of vehicles and caused significant disruptions to the residents of the apartment complex. Mercedes' donation to affected residents has done little to assuage the concerns of consumers and lawmakers alike, as the reputation of the brand's EVs in Korea continues to deteriorate.

Image Source: Korea JoongAng Daily & YonHup News