120,000 Lies
As the Volkswagen Group has sold 120,000 cars in Korea with emission results that are suspect, the South Korean government will take administrative measures and follow-up measures soon, following an inspection. Also, the aftermath, such as a massive amount of recalls, consumer collective litigations, and controversy over fuel efficiency, is expected to grow further. German vehicles have led the increase in the local market share of imported cars. But now the overall public mistrust in German vehicles has led to a decrease in sales.
Audi Volkswagen Korea, the local unit of the German carmaker, said on Oct. 1 that about 120,000 cars equipped with the software and the problematic EA 189 diesel engine were sold in Korea. These includes the models of the Golf, Jetta, CC 2.0 TDI, Tiguan, Passat, A4, A5, A6 2.0 TDI, Q3, and Q5 2.0 TDI. Depending on inspection by the Volkswagen Group, the Ministry of Environment (MOE), the Ministry of Land, Infrastructure and Transport (MOLIT), and administrative measures, these cars could be recalled. On the same day, a MOE spokesperson said, “With an official document that Volkswagen admitted to the accusation of manipulating fuel efficiency alone, we can issue recall orders.”
For the general inspection of the MOLIT, which will take place on Oct. 8, Volkswagen Korea President Thomas Kuehl, BMW Korea President Kim Hyo-joon and Hyundai Motor Quality Strategy Division Head Lee Seung-won are chosen as witnesses. They are expected to be intensively questioned about Volkswagen’s cheating on emissions tests.
Depending on findings by Volkswagen and the government, it seems certain that consumer collective litigations in the country will be expanded. As concerns are rising over a decrease in fuel efficiency due to the recall, lawsuits that request the solution of fuel efficiency problems are highly likely to expand as well. According to legal industry sources, the Seoul Central District Court currently has 7,000 pending fuel efficiency lawsuits.
With continuous incidents that harm trust, sales of imported cars, which have rapidly increased their market shares until now, are decreasing. An official from the imported car industry said, “Sales of imported cars, including Volkswagen, have decreased more than 10 percent in the past two weeks, and it will have adverse effects on sales in Oct. as well.”