Khean Seng Engineering Sdn Bhd is suing Mercedes-Benz Malaysia Sdn Bhd (MBM) and car dealer Asbenz Motors Sdn Bhd over multiple complaints of mechanical faults, defects and other issues which it said surfaced roughly one year after it took delivery of the car.
However, in a court filing last month, MBM said it only undertakes the wholesale distribution of brand-new and locally assembled cars to authorised dealers in Malaysia, including Asbenz Motors.
“(Asbenz Motors) was an independent contractor which bought and sold Mercedes-Benz vehicles as an independent business solely for its own account,” MBM’s defence statement read.
It said the nature of the relationship allows the dealer to independently determine the retail prices of cars sold to end consumers.
As such, MBM said it cannot be held liable for Asbenz Motors’s acts and representations as regards the car sold to Khean Seng.
In its statement of claim filed in May, Khean Seng said it had relied on representations made by Asbenz Motors and MBM, including on their websites, when deciding to buy the car, paying RM714,307.96, inclusive of insurance and road tax, for it.
The Penang-based engineering company said it signed the sales contract on Sept 28, 2022, and took delivery of the car two weeks later.
However, the car developed multiple issues, Khean Seng said, and was towed to Asbenz Motors’s service centre after it failed to start on Oct 20 last year.
Inspections conducted at the time revealed multiple issues affecting the car’s ignition, suspension, electrical wiring, software system, steering, absorbers, and its monitors, the statement of claim read.
Khean Seng said the car spent more than 60 days in the service centre and was returned on Jan 22 this year, but various issues resurfaced.
On March 5, it was towed back to Asbenz’s service centre for further repairs, where it has remained ever since, it added.
Khean Seng contends that the car suffered from manufacturing defects and that both Asbenz and MBM had breached their legal obligations to provide the company with a luxury car free of defects.
The statement of claim also alleged that the matter had caused Khean Seng and its managing director much hardship, stress and emotional distress, and had affected their reputation and business, resulting in the loss of several contracts and tenders.
The company is seeking RM1 million in aggravated and exemplary damages from Asbenz Motors and MBM on top of the general and special damages claimed.
MBM, however, denies liability for the car’s faults, saying the vehicle was not defective at the time of delivery. It also said all repairs under warranty were conducted by Asbenz Motors properly.
MBM also claimed that Khean Seng insisted on collecting the car from the service centre on Nov 16, 2023 although repair works were pending.
“(Khean Seng) was informed that continued usage of the vehicle before the completion of replacement and rectification works for (its) speed limiter warning light may give rise to engine leak of power, breakdown, acceleration speed not available and other symptoms,” the defence read.
It said Khean Seng accepted the risks and signed a waiver when collecting the car.
According to the defence, the car broke down again four days later, and had to be taken back to the service centre. It was returned after repairs on Jan 22 this year but broke down again on March 4.
MBM claims that the car was in “good, acceptable, merchantable and roadworthy condition”.
It said the issues raised by Khean Seng “do not qualify as defects” and do not amount to a breach of contract, duty of care, or the provisions of the Consumer Protection Act 1999 or the Sale of Goods Act 1957.
Asbenz Motors has two applications presently pending in Penang High Court.
In the first, the dealer seeks leave of court to file its defence to the claim out of time, while the second is an application to have the case transferred to the High Court in Sungai Petani.
Justice Quay Chew Soon has set Oct 8 to rule on both applications.