Luxury brand Mercedes S-Class, first case of lemon method… Ministry of Land, Infrastructure and Transport decision

Mercedes S 350 model.  Photo Mercedes-Benz Korea

Mercedes S 350 model. Photo Mercedes-Benz Korea

The first case of the’lemon method’ introduced in January 2019 came out. The target car is the S-Class 2019 S350d 4-Matic (four-wheel drive) vehicle from German luxury brand Mercedes-Benz. The Lemon Law is a consumer protection law that requires manufacturers to exchange, refund, and compensate consumers for defects in vehicles and electronic products.

According to the industry on the 12th, the owner of the vehicle requested a replacement when the engine stopped last year while the engine was stopped and the ISG (Idle Stop and Go) system, which helps improve fuel economy, did not work. Accordingly, the Ministry of Land, Infrastructure and Transport’s Automobile Safety and Defect Review Committee admitted the defect to the vehicle at the end of last month and issued an exchange order to Mercedes-Benz Korea.

On the day, a Mercedes-Benz official said, “We have received the decision from the Ministry of Land, Infrastructure and Transport (consumer) and are in the process of proceeding.” However, he added, “The Ministry of Land, Infrastructure and Transport’s deliberation committee decided that'(ISG defect) does not have any problem with vehicle use and safety, but corresponds to a decrease in economic value.'”

Last year, Mercedes-Benz sold 77,000 units in the Korean market, including 2,000 units of the S350d 4matic (model 2020).

According to the industry, it is known that there have been more cases submitted to the deliberation committee of the Ministry of Land, Infrastructure and Transport under the Lemon Law. However, in most cases, it is rare that the manufacturer is consulted or the consumer gives up, and thus the decision of the deliberation committee appears. This is why the first case came out in the third year of implementation.

“The procedure is complicated, but it is only half because of the fact that consumers have to prove the vehicle defect,” said Kim Pil-soo, a professor at Daelim University. “He said.

Starting this year, the government has decided to apply punitive damages to automakers. As a result, the lemon method is also expected to receive elasticity. The government revises the system related to automobile defects (Article 74-2 of partial revision of the Automobile Management Act) and applies from the following month. In the event of serious damage to consumers due to concealment or reduction of defects, false disclosure, or procrastination recall, manufacturers must apply a punitive damages compensation system and make compensation within 5 times.

Reporter Kim Young-joo [email protected]


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