Thomas Klein, CEO of Mercedes-Benz Korea, recently addressed growing concerns about the origin and quality of the brand’s vehicles. In an interview with South Korean media, Klein emphasized that all Mercedes-Benz vehicles sold in Korea are produced entirely in Germany or North America. He clarified that speculation about Chinese-made Benz vehicles entering the Korean market stems from misunderstandings and reiterated that the company maintains strict control over its global production network. Klein further underscored that the brand remains rooted in German engineering principles, and the models delivered to Korean consumers uphold this legacy.
Chinese Ownership Sparks Questions About Brand Identity
Direct Sales System Set to Reshape Consumer Experience by 2026
Despite these reassurances, the controversy over Mercedes-Benz’s identity remains complex. The automaker’s parent company, Mercedes-Benz Group AG, has two major shareholders based in China: Zhejiang Geely Holding and state-owned BAIC, each holding approximately a 9.6–9.7% stake. This significant Chinese investment has raised questions about the brand’s autonomy and whether it can still be regarded as a purely German automaker. Adding fuel to the debate are reports that specific Mercedes-Benz electric models are equipped with batteries sourced from Chinese supplier CATL. Some buyers have voiced disappointment over paying premium prices for vehicles that incorporate components from manufacturers they associate with lower perceived quality.
Looking ahead, Mercedes-Benz Korea plans to implement a direct sales model beginning in 2026. Under this new structure, vehicle purchases will be made directly with Mercedes-Benz Korea rather than through dealerships. While dealers will continue to handle vehicle display, consultations, and deliveries, pricing authority will shift entirely to the automaker. This approach mirrors the agency model already adopted in countries such as Germany, Australia, and Sweden. Mercedes-Benz Korea anticipates that the shift will lead to consistent pricing, standardized customer experiences, and more efficient inventory management across its network.
Restoring Brand Image Requires More Than Geography
The Challenge Ahead: Rebuilding Trust in a Globalized Market
The ongoing debate over whether Mercedes-Benz is “still German” goes beyond rumor—it reflects broader concerns over shifting brand identities in an era of globalized production and investment. Consumers no longer base trust solely on the country of origin. Today’s buyers demand high standards of quality, long-term reliability, and transparent servicing costs. For luxury automakers, a lapse in any of these areas risks damaging brand equity. Mercedes-Benz Korea’s proactive communication appears aimed at mitigating these risks and reassuring an increasingly skeptical market.
While Mercedes-Benz Korea insists that no Chinese-made vehicles are being imported, public skepticism persists. In a market where perception matters, simply stating a vehicle’s manufacturing origin may no longer suffice. The brand must work harder to align its production practices, component sourcing, and customer service with its long-standing premium image. The phrase “German car” once served as a seal of unquestioned quality. Now, amid shifts in ownership and globalization of components, Mercedes-Benz faces the challenge of proving that its brand philosophy remains intact—and worthy of consumer trust.
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