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August 30, 2016

Volkswagen won’t sue South Korea but Nissan has

Volkswagen reportedly has decided not to sue the South Korean government which last month suspended sales of most of its models and imposed a fine of KRW17.8bn (US$15.93m) on the automaker.

Volkswagen reportedly has decided not to sue the South Korean government which last month suspended sales of most of its models and imposed a fine of KRW17.8bn (US$15.93m) on the automaker.

VW instead will try to achieve certification for the affected models and resume sales quickly rather than taking on a lengthy legal process, a VW South Korean unit spokesman told Reuters.

A separate local report said Volkswagen Korea would not appeal against the government's recent decision to ban sales and cancel the certifications of many of its vehicle models sold in the country.

Earlier this month, the South Korean government revoked the certificates of some 80 Volkswagen and Audi models sold in the country amid claims that it had falsified emissions and fuel efficiency tests to access the local market.

The Reuters report added VW Korea had also fabricated certificates of noise levels.

Volkswagen had earlier described the government rulings as "most severe" and said it would consider a legal challenge.

According to Reuters, its sales plunged 40% to 12,888 vehicles from January to July in South Korea, after rising 17% in the same seven-month period last year, in the wake of its emissions test cheating scandal.

However, Nissan Motor's 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, the news agency added.

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