South Korea fines VW, halts sales of 80 models for forged documents

SEOUL: South Korea has fined Volkswagen 17.8 billion won ($16 million or ₹107 crore) and suspended sales of 80 VW models, alleging the German carmaker fabricated documents on emissions or noise level tests.

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A ministry of environment official Hong Dong-kon said the government revoked Volkswagen’s certifications, effective Tuesday, because submitting forged documents to authorities is against the law.

The South Korean government alleges that since 2007, Volkswagen AG has sold 83,000 units of Volkswagen, Audi and Bentley cars using the forged documents, including some models of the Golf, the Jetta, the Beetle and the Tiguan.

“Forging documents is a clear violation of the law that shakes the foundation of the auto certification system, so it is reasonable to revoke the certifications,” Hong told reporters. He said the measure would not affect the owners of those cars.

Volkswagen likely forged documents to expedite imports of its cars, Hong said. When importing the Audi A7 to South Korea, for example, the carmaker submitted the test results for the A6, which it has not sold here.

Volkswagen officials said the company had made “revisions” in the documents during a hearing last week, according to the ministry’s statement. But it objected to the sales ban as “excessive” because the vehicles still met the emissions and noise level standards. Audi Volkswagen Korea apologised and said resolving the matter as soon as possible is its “top priority.”

In November, South Korean authorities fined VW 14.1 billion won ($12.7 million or ₹85 crore) and banned sales for outfitting diesel cars with defeat device.