South Korea Suspends Sales, Decertifies Most of the Country's Volkswagen Products

Consider it a low point in German-Korean relations.

Thanks to the diesel emissions scandal, South Korea just decertified about 68 percent of all Volkswagen, Bentley and Audi vehicles sold in that country over the past decade, Reuters reports. The country also revoked the certification of 80 model variants and leveled a large fine, meaning VW’s one-time Asian market breakthrough is truly busted.

The embattled automaker knew this was coming. In late July, it voluntarily pulled the plug on sales of certain diesel vehicles as it awaited a ruling from the country’s environmental ministry.

Besides the stop-sale order and decertification of 209,000 existing vehicles, VW now finds itself on the hook for $16.06 million in fines. The automaker plans to appeal the ruling, calling it “most severe.”

VW fought hard to scratch out a meager market share in the country over the past decade, and despite a steep sales slide in the wake of the scandal, it intends to fight to keep its customers. The automaker told its customers (via a letter on its webpage) that it might request an “injunction of execution.” There’s also a chance it could take the country’s government to court to salvage its reputation.

South Korean lawmakers anticipate a lengthy sales shutdown.

“It usually takes three months for vehicle certification, but this may take longer for Volkswagen, as we will take thorough steps,” environmental ministry director Hong Dong-gon told Reuters. The ministry warned that any delay in recalling the vehicles for an emissions fix would lead to further penalties. VW could be forced to swap existing vehicles for different models.

Volkswagen sales slid 33 percent in South Korea in the first half of the year, a harsh blow for a company that was so eager to foist its luxury models on the hot vehicle market. The scandal’s financial toll hit hard, with VW reporting a 12 percent drop in quarterly profits last week.

[Image: Volkswagen]