Volkswagen has announced to suspend car sales in South Korea, from July 25. Apparently the automaker is struggling with a sales slump in South Korea, which is presently Asia’s second-largest diesel vehicle market, after Volkswagen admitted in the United States to using software to cheat on emissions tests on some diesel cars. The pressure made on the German automaker over its falsified emissions tests has actually been a significant reason for this extreme move.
This decision comes as a significant obstacle for Volkswagen, which just recently was asked to pay out over $15 billion as compensation in the US relating to the Dieselgate scandal. The automaker will need to either redeem or fix the afflicted automobile and pay each owner over $5,000 per car. Presently other affected markets are likewise working on their cases versus Volkswagen. In 2015, after performing its own diesel emissions tests, South Korea fined the carmaker a record 14.1 billion won ($11.7 million) and made a recall of 125,522 automobiles.
Likewise, this news comes ahead of an environment ministry evaluation that Volkswagen’s South Korean system is dealing with in July-end or early August. The review will select whether to revoke the certification of 32 models made by Volkswagen. A representative for Volkswagen’s South Korean team stated, “We have actually chosen to suspend sales of the affected designs to minimize confusion amongst dealers and customers,” adding that it would take 3 months to attain certification once again for the models.
