The Korean unit of German luxury carmaker Mercedes-Benz may face a probe by the prosecutor’s office over the submission of false specifications of its high-end lineup of S-Class S350 models, the authorities said Friday.

The Transport Ministry announced that it would soon file a complaint of a possible violation involved.

Before the sales, Mercedes-Benz Korea notified the ministry that the S350 model came equipped with a seven-speed transmission. But the vehicle had a nine-speed transmission installed instead, which raised the issue of whether the carmaker was aware of the replacement and intentionally ignored it. 

The S350 model, equipped with a nine-speed transmission, violated the government’s certification process required for all imported cars, the ministry said.

The company may have violated three laws, including the Motor Vehicle Management Act, Clean Air Conservation Act and Energy Use Rationalization Act. If the automaker wanted to change the transmission of the car, it should have reported the changed fuel efficiency and emissions level to the Ministry of Trade, Industry and Energy and the Ministry of Environment.

Car importers failing to report the accurate mechanical details of their vehicles are liable to face a prison term of up to a year or a fine of 10 million won ($8,400).

Mercedes-Benz Korea said the transmission change was intended to be an upgrade for enhancing the automobile’s performance, adding that there was also no rise in the cost of the car.

In a recent meeting with the local media in Portugal, Mercedes-Benz Korea CEO Dimitris Psillakis further explained that the company had later learned about the installation of the different transmission, stressing that it was a procedural mistake.

He also said the company notified the ministry of the situation last month when it discovered the issue.

Following this, on Feb. 29 the government banned Mercedes-Benz Korea from selling the S350 models in the country.

It is reported that 98 cars were sold before the ban became effective. The government said that it does not plan to take any action on the cars already sold, since the transmission change does not cause severe harm to the drivers. 

By Hong Sung-pyo
(hong1@heraldcorp.com)