By on July 22, 2016

2015 Volkswagen Tiguan

Volkswagen’s Korean sales slump just became a sales cliff leading to the Challenger Deep.

The embattled automaker suspended sales of most of its models in the Asian country ahead of a environmental review that could lead to a sales ban, Reuters reports.

Volkswagen’s diesel emissions scandal is ever so slowly drawing to a close in the U.S., but it’s just getting started in Korea. Recently, one of its executives was arrested in connection to the deception and its former managing director was called in for questioning.

In the next few weeks, South Korea’s environmental ministry will decide whether to revoke its certification of the company’s vehicles. Things aren’t looking good for the automaker’s dirty diesels, so it pulled the plug early.

“We have decided to suspend sales of the affected models to reduce confusion among dealers and customers,” a spokesperson for the company’s Korean operation told Reuters.

The automaker sells 32 models in the country, split between its VW and Audi brands. Its best-selling models are diesels, with the Volkswagen Tiguan 2.0 TDI BlueMotion and Audi A6 TDI being the company’s biggest money makers.

Volkswagen and Audi sales soared during former managing director Park Dong-hoon’s watch, but the company’s grip on the market is fast eroding. The company’s June sales were 57.6 percent lower than the same month in 2015, and VW sales sank 33 percent in the first half of this year.

[Image: Volkswagen of America]

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8 Comments on “Volkswagen Stops Sales of Most of Its South Korean Models...”

  • avatar
    SCE to AUX

    So local VW-Korea executives allegedly cooperated – either explicitly or implicitly – with the cheating? Ouch.

  • avatar

    Hyundai, which used to dominate the local market throughout the 90’s with +80% market share now down to 40% (partially due to Kia’s rise in popularity) is probably lobbying/bribing the bricks out the government to do something about VW’s recent blooming popularity.

    In Korea there are only two types of cars. Domestic and Import.

    Volkswagen did some good marketing to make them the alternative imported domestic car in the South Korean market.

    Korean government generally doesn’t care about the environment or other unethical business practices, just money.

  • avatar

    I wouldn’t say the scandal is drawing to a close in the U.S. It’ll probably still be going on until 2019 as the buyback/modification window extends to September 2018.

    There are no approved fixes yet for the 2.0L engines. We don’t know what’s happening with the 3.0L engines and now individual states are filing lawsuits. Meanwhile, VW has just set aside additional money to pay for those lawsuits. I’d say we’re 1/4 of the way through the U.S scandal based on what’s happened since September.

  • avatar

    All I care about is that we get MORE THAN 32 models (for me to poop on).

  • avatar

    If VW disappeared overnight in America, would it make a sound? Would anyone but only the hard core notice?

  • avatar

    Dirty Diesel deeds done dirt cheap…

    And now the chickens are coming home to roast the turkeys that perpetrated this crime…

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