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July 1, 2016

VW rules out emissions compensation in South Korea

Volkswagen has no plans to compensate South Korean for cheating emissions tests, according to local reports citing the company’s local unit Audi Volkswagen Korea.

Volkswagen has no plans to compensate South Korean for cheating emissions tests, according to local reports citing the company's local unit Audi Volkswagen Korea.

This will likely disappoint and potentially anger local consumers, particularly after the company set aside US$10bn to buy back cars in the US and a further US$5bn to invest in diesel emissions reduction technology. The car buy back programme in the US is still subject to final court approval, which is expected in the autumn.

The German automaker said US regulations on nitrogen oxide emissions, a main cause of fine dust, are much stricter in the US than in other countries and vehicle and engine variants are also significantly different.

South Korean Volkswagen owner groups are pushing to get the same compensation as is being offered in the US, claiming consumers in both countries have been victims of fraud.

Earlier this week, Audi and Volkswagen owners petitioned the South Korean environment ministry to launch a probe into the emission tests of all Audi and Volkswagen models sold in the country.

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