The move could hit VW hard since South Korea was one of its major market for its luxury brands, including Bentley and Audi.
In a fresh blow to embattled car manufacturer VW, South Korea has suspended the sales of 32 models of the Group’s vehicles while imposing a fine of 16.06 million (17.8 billion won). It has further accused the company of forging document on emissions or noise level tests.
This move is the latest pressure point on Europe’s biggest car manufacturer as it struggles to contain the brand’s eroding goodwill and reputation after its admission last September that it used software to cheat on emissions for its diesel cars thus impacting 11 million of its diesel cars worldwide.
Incidentally, in 2016, VW had more than tripled its sales volumes in South Korea to 35,778 before its sales department took a hit following the diesel emission scandal. South Korea has emerged as one of its biggest markets for its luxury brands such as Bentley and Audi.
Meanwhile South Korea’s environment ministry has disclosed that it has revoked environmental certification for 83,000 diesel and gas powered VW vehicles, including Audi and Bentley, thus bringing the total number of VW vehicles decertified in South Korea to 209,000.
According to the ministry, 68% of all VW vehicles sold since 2007 have been decertified.
Earlier last November, South Korea had revoked certification for 126,000 of Volkswagen’s vehicles while ordering their recall. Additionally it had also imposed a fine of 14.1 billion won while accusing it of cheating emission control norms.
Subsequently, Volkswagen’s Seoul office was raided and its executives were arrested.
In a strategic move, preempting a government move to stop the sales of its vehicles, VW voluntarily suspended the sales of most of its models, in South Korea, from July 25.
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