Volkswagen has taken some fresh blows in the wake of the dieselgate scandal that broke in the latter half of 2015 as South Korea has de-certified 80 models of its vehicles and those of its subsidiaries, effectively suspending sales for the German marque within its borders.
These include 32 Volkswagen-branded cars as well as those from Bentley and Audi. Of all the cars sold by the Volkswagen Group, just 5 cars have escaped suspension. To add to its troubles, VW was also handed a fine of 17.8 billion Won (or just over $21 million AUD).
Volkswagen of Korea published a statement on behalf of Audi, saying: “The objective is to offer the full range of vehicles to customers and dealers in South Korea again as soon as possible. All the vehicles already registered by the authorities may still be used without any restrictions. In the meantime, the Volkswagen, Audi and Bentley brands would like to thank their customers for their loyalty and patience and are doing everything in their power to maintain the trust which has been placed in them.”
This follows a number of raids of Volkswagen offices in the capital Seoul which resulted in the arrest of a senior member of the local branch’s executive team. The Korean de-certification of new and sold cars means that 68 percent of all VW cars there are effected. According to Reuters, it could take a possible three-month period before authorities lift the sales suspension.
In late July, local authorities had alerted Volkswagen of Korea of its plans to conduct further investigations upon vehicles for emissions cheating software and consequently VW had stopped new sales of 25 models.
Volkswagen is currently pursuing legal action against the South Korean government if the suspension continues without both parties agreeing to a mutual settlement or satisfactory fix is implemented.
South Korea is an important market for the VW Group with strong sales of their Volkswagen vehicles as well as solid demand for cars from its luxury marques such as Audi and Bentley.
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