Posts Tagged ‘south korea’

VW to Stop Sale in Korea

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As the investigation continues with Volkswagen’s diesel scandal in the US, the company continues to face challenges around the world where their vehicles are sold. Most recently, Volkswagen has suspended sales of a number of their vehicle models in South Korea. The halt to sales will last for at least three months.

According to circulating news, South Korean government has been investigating the diesel scandal to determine the impact the diesel vehicles have on regulations. The South Korean government was likely moving forward with a decision to revoke a number of certifications from Volkswagen which will limit the vehicle models which are currently allowed to be sold in the country. Volkswagen choose to stop sales before the local government could make the decision for them, and therefore Volkswagen’s Golf, Jetta, and Tiguan will be part of the halt sale plan.

A spokesperson for Volkswagen Korea stated that “This decision doesn’t mean that Volkswagen is pulling out of Korea, which is a very important market to us. We’ll reapply for certification of our cars if the government revokes it. The process may take several months.”


Nissan’s Emission Scandal

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The ripple effect of Volkswagen’s emission scandal can be felt throughout the entire automotive industry. The latest automaker to be in the spotlight is Nissan who is being accused for cheating on emission tests with their diesel engines, specifically the one in their Qashqai compact crossover.

The Environment Ministry of South Korea found discrepancies in testing and real world emission data in the Qashqai after submitting over 20 different automobiles through rigorous testing. So far Nissan has denied any wrongdoing on their part and states that their Qashqai conforms to all emission regulations under Korean law.

A stop sale has been issued to Nissan in South Korea on the Qashqai and the company has been issued a $280,000 fine for the cheating. South Korean officials are also looking to charge South Korea Nissan CEO with violating the emission regulations.


Ssangyong to Enter US by 2019

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We’ve already got Kia and Hyundai, now lets bring on Ssangyong! Yeah that name is a mouthful, but Ssangyong is South Korea’s fourth largest auto manufacturer. The company’s CEO Choi Johng-sik announced that they plan to enter the US market by late 2019 calling the entry attempt a “make or break” move.

Ssangyong’s entry into the US market could be well positioned right now as demand for SUVs and compact SUVs are gaining huge popularity in North America. The South Korean company has a solid lineup of these vehicles under their belt and could transition well into the US.

The “make or break” statement might sound like Ssangyong is throwing down a hail mary, but they really need to do something right now to get them out of their financial woes. Their largest export market was to Russia which has put a damper on the company’s sales numbers. Ssangyong just needs to do something to put their company in a better financial situation.