South Korea to fine BMW, Porsche, and Mercedez-Benz for violating various rules

The imposition of fines relate to violating emission and import rules.

On Thursday, South Korea’s environmental ministry disclosed that it would be imposing a combined fine of $63.1 million (70.3 billion won) on Mercedes-Benz, BMW AG and Porsche for violations of its emission rules.

Further, the environmental ministry also told the country’s customs agency to probe the three carmakers for violating its customs law, such as illegal imports.

In a statement, Seoul’s environmental ministry stated BMW will be fined 60.8 billion won for “falsifying” documents on emission test results and for not obtaining approval for changes in emission-control components before selling its cars.

Porsche and Mercedes-Benz will be fined around 7.8 billion won and 1.7 billion won respectively, for not obtaining approval for changes in emission-control components before selling its cars.

According to its statement, certificates of fuel efficiency will be canceled for 28 models of BMW and their sales in the country will be stopped mid-November. The ministry has clarified, this move will not affect cars that have already been sold.

BMW unit in Seoul stated it is “faithfully cooperating” with the government on their probe into certificate documentation errors, and will take necessary measures.

According to Mercedez-Benz, of the 200,000 cars that have been imported into the country between 2012-2017, a few had gone through the customs route and changes in components were reported to the ministry. The company will strengthen its internal processes to prevent such instances in the future.

As per a spokeswoman for Porsche Seoul unit, the ministry’s measure will not have any impact on its business. All cars that are currently being sold are properly certified.

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Categories: Creativity, Entrepreneurship, Regulations & Legal, Strategy, Sustainability

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