Mercedes Korea CEO responds to backlash over 'insufficient' donation for EV fire

Industry

Mercedes Korea CEO responds to backlash over 'insufficient' donation for EV fire

Published: 15 Aug. 2024, 13:53

SARAH CHEA
chea.sarah@joongang.co.kr

Mercedes-Benz Korea CEO Mathias Vaitl talks to the press on Wednesday after a three-hour talk with residents of an Incheon apartment complex where an exploding Mercedes EV caused a blaze in an underground parking garage on Aug. 1. The incident sent 23 people to hospitals, damaged as many as 880 vehicles and inflicted weeklong electricity and water supply outages on some 1,600 households. [YONHAP]

Mercedes-Benz Korea CEO Mathias Vaitl pledged to consider additional financial aid for residents in an apartment complex in Incheon who suffered damages due to an exploding Mercedes EV earlier in the month.

The remark was made during Vaitl's three-hour talk with some 150 residents Wednesday evening in response to their harsh criticism that Mercedes' initially announced donation of 4.5 billion won ($3.3 million) is far from enough.

CCTV footage shows a Mercedes-Benz EV exploding in an underground parking garage in Incheon on Aug. 1. [YONHAP]

"We are keen and eager to support wherever it is necessary and to help people here affected by the incident," Vaitl said to the press after the talk.

He did not, however, specify the amount.

When asked about plans for a recall or halting sales of the model that exploded, Vaitl said such measures will be discussed later after determining the exact cause of the incident.

Mercedes-Benz Korea CEO Mathias Vaitl gets in a car after a three-hour talk with residents of an Incheon apartment complex where an exploded Mercedes EV caused a blaze in an underground parking lot on Aug. 1. The incident sent 23 people to hospitals, damaged as many as 880 vehicles and inflicted weeklong electricity and water supply outages on some 1,600 households. [YONHAP]

On Aug. 1, a Mercedes EQE EV burst into flames in an underground parking garage at an apartment complex in Incheon, sending 23 people to the hospital. The incident damaged as many as 880 vehicles parked in the garage and inflicted weeklong electricity and water supply outages on some 1,600 households.

Mercedes last week said it will donate 4.5 billion won to help affected residents.

"The 4.5 billion won of aid is never enough considering the overall damages residents had to suffer; the size is way too insufficient for residents to go back to their normal lives," said Rep. Lee Yong-woo of the liberal Democratic Party during the meeting.

"Mercedes is responding very irresponsibly to this incident unbefitting of its position in Korea as it generated 8 trillion won in sales in the Korean market last year, making 200 billion won in operating profit," Lee said.

A Mercedes EV at a service center in Seoul to get a free checkup on Wednesday. [YONHAP]

The German automaker also faced public backlash as the burned EV, which cost more than 100 million won, is confirmed to have been mounted with batteries from China's Farasis Energy, a lesser-known EV battery supplier ranked 10th in the world in which Mercedes holds a stake.

Five Mercedes EV models are topped with batteries from Farasis, including the most expensive model currently available in Korea, which totals some 6,000 units in the country.

The auto brand is also offering a free EV checkup for its customers in 75 service centers nationwide.

BY SARAH CHEA [chea.sarah@joongang.co.kr]