Benz Korea CEO denies preferential treatment for top dealer

“The suspicion that we give benefits only to a certain dealer is not true. We can be independent of Lei Shing Hong (the second-largest shareholder of Mercedes-Benz) at any time if we want. But we maintain the status quo because we don’t think this is necessary now.”

Thomas Urbach, president and CEO of Mercedes-Benz Korea, said this Tuesday in an event to unveil the company’s new sport utility vehicle New M Class at the Busan Cinema Center in the run-up to the Busan International Motor Show that opens Thursday.

Daimler Group of Germany owns 51 percent of Mercedes-Benz Korea and Lei Shing Hong of Malaysia, which is owned by an ethnic Chinese, has 49 percent.

Urbach said, “Mercedes-Benz Korea’s decision-making right lies in itself,” adding, “It’s an unfounded suspicion that we give preferential treatment to Hansung Motor.”

Hansung is a subsidiary of Lei Shing Hong that wholly owns the former and is the biggest dealer of Mercedes-Benz Korea.

Urbach apparently sought to calm the controversy over Hansung. Other dealers such as The Class Hyosung, Mercedes-Benz Korea’s No. 2 dealer, have claimed that Hansung is abusing its dominant position by leveraging its share structure.

“I hope dealers will eliminate and resolve their misunderstandings,” he added.

gene@donga.com