April 26, 2024

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[THE INVESTOR] Mercedes-Benz Korea on Sept. 26 denied the antitrust agency’s allegations that it colluded with local dealerships to rig repair prices back in 2009, vowing to take legal action against the penalties that have been imposed. 

“We don’t agree with the Fair Trade Commission’s decision that Benz suggested rigging repair rates to our dealerships,” said the carmaker in a statement, adding that the watchdog “misunderstood” its relationship with dealers. 

Earlier in the day, the FTC announced a combined 1.78 billion won (US$1.57 million) worth of fines on Mercedes-Benz Korea and eight dealers including Hansung Motor and The Class Hyosung for rigging repair fees. 

The German carmaker is currently the best-selling imported car brand in Korea. 

“Mercedes-Benz Korea pays the labor rates for repairs within a warranty period. We have no motives to raise the wages nor have ever colluded (with the dealers). Rather, we opposed a rate increase.” The carmaker added it did relay a recommended range of rates, but left the decision to its dealers. 

According to the FTC, the dealers held talks with Mercedes-Benz Korea in January 2009 to discuss related issues. By June, labor rates for repairs were raised by 15 percent to push up prices for customers.

By Ahn Sung-mi (sahn@heraldcorp.com)