Decides there are more productive solutions to the problem.
German automaker Volkswagen has shelved plans to sue the government of South Korea after it banned the sale of most of VW Group’s models in the country.
The ban was implemented on 80 models across the Volkswagen, Audi, and Bentley ranges after the South Korean environment ministry found certification of emissions and noise levels had been falsified.
As well as withdrawing certification of the cars, authorities levied a fine of 17.8 billion won ($15.93 million) against VW. The company described the punishment as “most severe” and said it would appeal the decision.
But VW has now decided against pursuing a lawsuit, according to Automotive News, reasoning the time and resources doing so would consume would be better spent gaining proper certification for the cars it was forced to withdraw.
Sales of Volkswagen’s cars plummeted 40 per cent in South Korea during the first seven months of this year, down to 12.888 units. By contrast, sales jumped 17% last year.
Though sales in South Korea constitute a tiny percentage of VW Group’s global sales, the situation there is of considerable importance as it is the only country that has actually banned VW models in the wake of the dieselgate emissions-cheating scandal.
A buy back and repair programworth around $15 billion has been instigated for the 2.0-liter diesel models that were found to be exceeding emissions limits in the United States. And a recall of affected models is underway in Europe and other parts of the world.
But a solution has not yet been found for VW, Porsche, and Audi models fitted with a 3.0-liter diesel engine that was also found to be cheating emissions standards.
Engine control unit supplier Bosch has also been accused of colluding with VW to develop the so-called ‘defeat device’ that was installed to cheat emissions tests. When the scandal first broke last September, the company asserted it was not involved.
Source: Automotive News