Volkswagen Suspends Sales Of Vehicles In South Korea

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The German auto major has decided to suspend vehicle sales in South Korea which will be effective from July 25, 2016. Sales have come down post the diesel scandal and has prompted Volkswagen to stop sales.

South Korea is the second largest diesel car market after the German auto major admitted about the falsified emission norms in its vehicles, sales have slumped in South Korea.

After South Korea conducted its own tests on Volkswagen Vehicles, they have fined the car maker a whopping 14.1 billion won ($11.7 million), also ordered a recall of 125,522 vehicles.

In the US, it was fined $15 billion as compensation for the Dieselgate scandal. Also, the company will have either repair the vehicles or buy back and pay each owner approximately $10,000 for each of the cars.

Prosecutors from South Korea had notified the ministry the list of affected models and accusing it of concocting documents related to emissions and noise level tests. The possibility of the review committee cancelling the certifications of VW models would have led to banning the affected cars in South Korea.

As of now, Volkswagen will take a decision whether to take legal action against South Korea's planned decision, this will be known after the company will present its case to the South Korean ministry on July 25.

Source: Reuters

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