Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.
VW recalls may hit 150,000
Seen above is a Volkswagen Korea dealership in Seoul. Below, a sedan is parked in front of an Audi Korea dealership in the capital. The German automakers may have to recall up to 150,000 diesel-engine vehicles in Korea, after it was proven that the firms had cheated during emission tests. / Yonhap
By Lee Hyo-sik
Ministry will announce test result in November
By Lee Hyo-sik
Audi Volkswagen is expected to recall up to 150,000 diesel-engine vehicles in Korea, following the scandal over its cheating on emissions tests, according to government and auto industry officials Thursday.
If realized, this would be the largest recall ever by an automaker in the country’s history.
Since 2009, Volkswagen has sold more than 110,000 diesel-powered vehicles here. Local motorists have also purchased about 35,000 Audi diesel cars.
But Volkswagen Korea said the number of vehicles to be recalled will be smaller because not all of the cars sold here would have had the software in question activated.
The company said it will decide whether to recall or not after the government completes emissions tests on its vehicles in November.
The Ministry of Environment is currently testing whether the cars are equipped with controversial software, which manipulates the level of emissions.
According to the environment ministry, Volkswagen Korea submitted technical solutions and corrective measures, Wednesday, in a bid to contain the escalating scandal.
The automaker reportedly expressed an intention to recall all the vehicles suspected of having the emission-cheating software.
Earlier, Volkswagen admitted it had installed a controversial software program in its Jetta, Beetle, Passat and Golf cars, all produced between 2009 and 2015. Audi A3 vehicles were also found to have the software that enables the cars to detect when they undergo emission tests and lower exhaust emissions.
In the United States, the German automaker issued a recall for 482,000 cars. It also said up to 11 million vehicles worldwide were fitted with the engine in question.
Volkswagen said it will inform customers soon whether their vehicles need work and present governments with technical solutions in October.
However, Volkswagen Korea has remained reluctant to take proactive measures, saying that it is currently monitoring the situation.
“Even though the company headquarters in Germany indicated the massive recall of its diesel-engine cars worldwide, it is too early for us to comment on the matter,” a Volkswagen Korea spokeswoman said. “We will be waiting for the environment ministry to complete the emissions test of our vehicles. In accordance with the test results, we will decide whether to recall or not.”
On Sept. 24, the environment ministry randomly selected Volkswagen cars that arrived at Pyeongtaek Port in Gyeonggi Province, which were then taken to the National Institute of Environmental Research for inspection. It is expected to make public the results in November.
Besides recalling its vehicles, Volkswagen could be forced to pay customers compensation if the vehicles’ fuel economy deteriorates after the emission-cheating software is removed from the engine, according to some auto industry officials.
Volkswagen Korea CEO to appear before lawmakers
The National Assembly has decided to summon Volkswagen Korea CEO Thomas Kuehl as a witness during the next week’s parliamentary audit of the Ministry of Land, Infrastructure and Transport.
Both ruling and opposition party lawmakers agreed to have Keuhl appear for questioning to hear from him about the escalating emission cheating scandal.
Lawmakers are largely expected to chide the CEO over the automaker’s manipulation of diesel engine emissions tests, calling on him to immediately recall Volkswagen diesel cars and compensate consumers who bought them.
On Wednesday, two people who own diesel-powered Volkswagen and Audi vehicles filed lawsuits against the manufacturer and their dealers here, demanding compensation.
Established here in 2005, the automaker sold 18,635 cars in Korea in the first six months of the year, earning 712.8 billion won.