The Korea Herald reports that a government commission has decided in favour of allowing local and foreign automakers to sell diesel-engine passenger cars satisfying strict European standards in Korea, starting in 2005. The decision has still to be ratified by ministers but it brings diesel cars a step nearer to the Korean marketplace.
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The Herald report says that the Environmental Committee for Diesel-Engine Cars, a panel of private and state environmental experts, decided Saturday to permit sales of diesel-powered passenger sedans in 2005, with both Euro-3 and Euro-4 standards applied.
Hyundai Motor and its Kia Motors division both currently export Euro-3 compliant diesel cars to Europe and expressed satisfaction with the commission’s decision.
However, But GM Daewoo Motor (GMDAT), Renault Samsung Motors and Ssangyong Motor, are all less well placed in terms of Euro-3 diesel technology and are strongly opposing the policy move. They would rather the government abandoned Euro-3 to directly introduce Euro-4 in 2005 or 2006.
“We cannot afford to prepare for both Euro-3 and Euro-4 standards simultaneously,” said an executive of GM Daewoo in the Korea Herald report. “The new policy guideline sent signals that GM, Renault and Ssangyong all give up local Euro-3 market to Hyundai and Kia.”
The report says that according to the draft policy, automakers will be asked to sell Euro-3 and Euro-4 diesel vehicles at a ratio of 5-to-5 in 2005, or unilaterally decide the ratio on conditions of using emission filters.
