Volkswagen tries to regain footing in South Korean market following emissions scandal

Posted on : 2018-03-14 17:33 KST Modified on : 2019-10-19 20:29 KST
Consumers remain unhappy with company’s failure to make a public apology or offer suitable compensation
The Volkswagen logo
The Volkswagen logo

Volkswagen is attempting to make new inroads on the South Korea market after its emissions tampering scandal with expanded sales and technology testing for self-driving cars. But South Korean consumers remain unhappy over the automaker’s failure to provide a suitable apology or compensation.

Volkswagen, which launched its new Passat GT midsize sedan last month, plans to come out as early as next month with the Tiguan, a new SUV model, and the Atheon, a midsize four-door coupe. Volkswagen Group affiliate Audi first resumed sales in Nov. 2017 with its R8 Coupe sports car.

Audi has begun technology testing after receiving a temporary self-driving license for the A8 model from the Ministry of Land, Infrastructure and Transport on Mar. 6. Audi Volkswagen Korea said it was the “first imported car to receive a temporary self-driving license.”

Audi’s goal is to use big data on the South Korean road and traffic environments from the test run to eventually develop a “Level 3 traffic jam pilot” capable of operating without driver intervention. As they re-emerge eighteen months after having South Korean sales suspended over “Dieselgate,” Audi and Volkswagen appear to be hanging their hopes on future car technology testing to improve their tarnished image.

But many South Koreans are responding negatively to Audi and Volkswagen’s activities after what is seen as their failure to offer a suitable apology and compensation for the tampering incident. Following civil action in connection with Volkswagen’s emissions tampering, administrative action and a Constitutional appeal have been filed in South Korea. A first-trial ruling is expected within the year in a class action suit by around 5,000 consumers demanding replacement and refunds for illegally sold vehicles.

“Unlike in the US, Volkswagen has never acknowledged illegally tampering with emissions reduction devices in South Korea,” said attorney Ha Jong-seon of the Barun law firm, which is representing the plaintiffs.

“It’s shameless for them to resume sales and begin technology testing without an apology or compensation,” Ha said.

Around 125,000 of the Volkswagen vehicles implicated in tampering were sold in South Korea. The recall rate remains at only around 50%– which means half the vehicles in question are still out on the roads producing emissions above standard levels.

In the US, Volkswagen paid US$30 billion (around 34 trillion won) on vehicle repurchasing, repairs, and civil and criminal fines after admitting to tampering. In South Korea, it provided vouchers worth one million won (US$940) for its vehicles without acknowledging tampering or assuming any responsibility for compensation.

By Hong Dae-seon, staff reporter

Please direct questions or comments to [english@hani.co.kr]

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