Volkswagen and South Korea Car Ban; Latest Updates

Sep 02, 2016 04:59 AM EDT | Jomar Teves

Luxury carmaker Volkswagen has officially come up with the decision no not sue South Korea or take any legal action of some sort after the said country halted the sale of a lot of its models and imposed a fine amounting close to $16 million on them. Instead of taking the said suspension issue to court, what the German Luxury car maker would be doing is obtain a certification of the models which were part of the said suspension.

The South Korean government made the certification for as much as 80 Volkswagen car models, specifically Bentley and Audi null and void after reports of the carmaker cheating emission tests, and therefore, delivering false information regarding emission and noise levels. Volkswagen deemed the suspension a severe one, and initially planned on taking legal action and filing a case against South Korea.

This suspension order set by the South Korean Government caused sales of the Volkswagen brand in the said country to dwindle by 40% to just under 13,000, which happened after a surge by 17% which was observed in the previous year, the slump of which was observed amidst the scandal.  Other manufacturers also have filed a lawsuit regarding a similar issue, with the South Korean branch of Nissan Motors filing a case against the Ministry of Environment after it claimed that the emission levels report for the Qashqai model SUV has been rigged.

The issue regarding the banning of vehicles has been a heated one, and it's not only South Korea which has taken action on this. Other countries have also taken initiatives, such as the UK, where laws regarding the emission levels have been made more rigid through making the failing of emission tests as grounds for vehicles being sold in the market.

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