Volkswagen decides not to sue South Korea over sales ban
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Volkswagen decided against suing South Korea which last month suspended sales of most of its models and slapped a fine of 17.8 billion won ($15.93 million) on the German carmaker.
Instead, Volkswagen will try to achieve certification for the affected models and resume sales quickly rather than taking on a lengthy legal process, a spokesman for Volkswagen’s South Korean unit said.
Last month, the government revoked certification for 80 model variants of VW, Audi and Bentley vehicles on grounds that the German automaker fabricated certificates of vehicle emissions and noise-levels.
At that time, Volkswagen described the ruling as “most severe” and said it would consider a legal challenge.
Volkswagen’s sales slumped 40 percent to 12,888 vehicles from January to July in South Korea, after jumping 17 percent last year, in the wake of its emissions-test cheating scandal.
Nissan Motor’s (7201.T) South Korean unit has filed a lawsuit over claims by the environment ministry that it had cheated on emissions with its Qashqai diesel sport utility vehicle.
Questions & Answers
Q.What is the primary reason Volkswagen chose not to sue the South Korean government?
What is the primary reason Volkswagen chose not to sue the South Korean government?
Volkswagen wants to avoid a lengthy legal process. Instead, the company will focus on achieving certification for its affected models to resume sales in South Korea quickly.
Q.How did Volkswagen's sales in South Korea perform following the certification revocation?
How did Volkswagen's sales in South Korea perform following the certification revocation?
Volkswagen's sales slumped by 40 percent in South Korea, with 12,888 vehicles sold from January to July. This followed a 17 percent increase in sales during the previous year.
Q.What was the extent of the sales ban imposed on Volkswagen by the South Korean government?
What was the extent of the sales ban imposed on Volkswagen by the South Korean government?
The government suspended sales of most Volkswagen models and revoked certification for 80 model variants across VW, Audi, and Bentley vehicles. A fine of 17.8 billion won was also issued.
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