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Volkswagen has scrapped its plan to launch Skoda-branded vehicles in Korea, industry sources said Monday.
This is the latest in a series of fallouts from the emissions cheating scandal that dealt a blow to the German carmaker's Korean unit. The Korean authorities revoked domestic sales licenses for nearly 90 Volkswagen models following the emissions cheating scandal.
The company has kept delaying Skoda's debut in the Korean market -- from June to December, and then to early next year. Now sources say early next year has also become uncertain.
"Volkswagen has decided to delay the launch (of Skoda) indefinitely," a source familiar with the issue told The Korea Times. "It was confirmed about two weeks ago. Volkswagen's official position on the issue is an indefinite delay."
Another source said Volkswagen Korea's teams that had committed themselves to the launch could be disbanded and some of their members had already been reassigned to teams dedicated to Volkswagen or Audi vehicles.
The continued delay reflects a tricky and time-consuming process Volkswagen Korea has to go through for reinstatement of its canceled sales licenses. Analysts believe it could take many months before the disgraced automaker will regain its right to sell the suspended models.
The company has around 40 new models that need sales permission from the Korean government.
"Volkswagen is now doing everything it can to have its sales licenses reinstated for Volkswagen and Audi vehicles as early as possible. But lingering negative public sentiment toward the company and toughened emissions test rules as a result of the scandal could make it tougher for the company to reinstate canceled licenses and win licenses for new models," the source said.
A Volkswagen spokeswoman denied the launch had been scrapped.
"We have not fixed a specific timetable for Skoda's domestic launch, so it does not make sense to say that the launch has been delayed or canceled."
She expects the company to have the suspended licenses reinstated in the first half of next year.
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