South Korea bans models of Volkswagen, BMW, Porsche, Nissan

The ban comes in the wake of an investigation by South Korea whose findings indicate that these companies had falsified documents related to pollution norms and noise levels. BMW and Nissan have acknowledged the findings of the investigation.

In the latest fallout of the VW’s diesel emission scandal, South Korea has banned the sale of 10 models from Porsche, BMW and Nissan. The three auto manufacturers were found to have fabricated the documents related to certifications.

In August 2016, South Korea had stated it would ban 10 models from the car makers after conducting an investigation whether they had falsified documents pertaining to noise-levels and emissions.

Germany’s Volkswagen AG formed part of the list of car manufacturers that was to be investigated.

Following the results of the investigation, South Korea’s environment ministry has banned 9 models.

In addition to the ban, South Korea has also levied a combined fine of $5.9 million (7.17 billion won) on the local units of the car manufacturers.

As a result of the ban, 4,523 vehicles have been affected in the country.

The South Korean units of Nissan Motor Co. Ltd and BMW AG have acknowledged the findings of the South Korean government and have responded to it by saying they would once again try to achieve certification for the affected models.

A spokesperson for Porsche AG, owned by Volkswagen, did not immediately respond to requests for comment.

In the wake of the diesel emission scandal, South Korea has been tough with VW: it has suspended sales of most of its models, has imposed fines for alleged forging of documents on emissions and noise levels and have filed complaints against its local executives.

In its latest salvo, South Korea has now said it will file criminal complaints against 5 current and former VW executives of its South Korean units. It will also levy a fine of 37.3 billion won for false advertising on vehicle emissions.

Significantly, imported cars in South Korea have fallen by 7%

South Korea’s sales of imported cars fell 7 percent in the first 11 months of last year, heading for their first annual sales decline since 2009.


Categories: Entrepreneurship, HR & Organization, Regulations & Legal, Strategy, Sustainability

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