The ongoing total strike by sales staff at Hansung Motor, the largest dealer of Mercedes-Benz in the country, has led to increasing complaints from Benz customers as some service center mechanics have entered into compliance protests. Compliance protests are acts of conflict that result in delays in maintenance by strictly adhering to regulations.
Sales staff at Hansung Motor's showrooms held a total strike rally on the 31st of last month and have embarked on an indefinite strike, while some service center mechanics have been conducting compliance protests since the 7th.
Hansung Motor is the largest Mercedes-Benz dealer in the country, operating 19 service centers and 19 showrooms nationwide. Last year's sales were 2.7977 trillion won, significantly surpassing second-place HS HYOSUNG (1.293 trillion won). However, the company reported an operating loss of 648 billion won last year, worsening from a loss of 468 billion won the previous year. HS HYOSUNG transitioned from a loss of 39 billion won in 2023 to a profit of 127 billion won last year.
The nationwide metal workers' union's imported automobile branch, representing Hansung Motor's labor union, has gone on strike for the first time in 38 years since its establishment in 2023 and has been striking for three consecutive years to this year. This year's strike is driven by ongoing restructuring measures, such as voluntary retirement since February, and the concern that allowing the 'advance payment discount' to be used by salespeople on vehicle discounts encourages cutthroat competition.
In the imported vehicle industry, there are predictions that the conflict between Hansung Motor's labor and management will peak in the second half of the year ahead of the direct sales system next year. Currently, dealers like Hansung Motor buy vehicles wholesale from Benz Korea and independently set discount rates for sale to consumers. Once the direct sales system is implemented, dealers will have to sell vehicles at uniform prices, which could narrow their market position. Benz Korea also plans to strengthen online sales.
A source from the imported car dealership industry noted, "If Benz Korea starts the direct sales system, it is inevitable that dealers' market positions will diminish. It is widely believed that Hansung Motor may proceed with restructuring in the second half of the year." Hansung Motor explains that as existing showrooms continue operations and a unified membership program is set to launch soon, employment for the sales staff is guaranteed.
Due to the conflict between Hansung Motor and labor, Benz customers have expressed their discomfort. One Benz owner said, "I made a reservation at the service center a month ago, but it was unilaterally canceled on the day." In an online community where Benz users gather, instances of service center appointment cancellations due to the strike are increasingly being posted. Another Benz owner remarked, "The reason behind the recent criticism of Benz's after-sales service is mainly due to Hansung; it would benefit Benz's image if Hansung were to exit the Benz dealership."
In response, a representative from Hansung Motor stated, "We have been negotiating sincerely with the union until now," and added, "We will actively engage in discussions for a harmonious resolution with the union and do our utmost to provide normal services as soon as possible."