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The Korea Herald
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THE INVESTOR
March 29, 2024

Automobiles

VW Korea to offer disappointing W1m compensation to car owners

  • PUBLISHED :December 23, 2016 - 17:30
  • UPDATED :December 23, 2016 - 17:31
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[THE INVESTOR] Audi Volkswagen Korea on Dec. 22 announced a compensation package for customers, hoping to calm them, over its emission-rigging scandal that halted the sales of most VW cars in the country.

The Korean unit of German automaker will give out vouchers worth 1 million won (US$831.78) to all the drivers who purchased Volkswagen and Audi vehicles from 2006. 




The Korean unit will be spending a total 270 billion won for 270,000 cars. This also includes 126,000 VW vehicles that were banned by the government last year for circumventing emission control system.

Beginning on Feb. 20, car owners can claim the vouchers that can be used for maintenance and repair services and purchasing car accessories.

The Korean package, however, falls short compared to other countries in terms of the amount and benefits. Volkswagen agreed to pay up to US$10,000 in cash and gift cards for US owners and C$5,950 (US$4,410) in Canada. It also came more than a year after the scandal outbreak.

According to industry watchers, VW Korea’s compensation decision aims to appease car owners and the Environment Ministry before the authorities approve VW’s stalled recall plan.

VW Korea, however, said the latest offer is unrelated to the government’s ongoing recall and recertification process.

In October, Audi Volkswagen Korea submitted its fourth recall plan for 126,000 diesel vehicles to the Environment Ministry, following its three failed attempts in January, March and June, due to insufficient data and for not admitting the use of the cheat software device.

The ministry had earlier vowed to make the recall decision by end of this year. However, industry watchers say the recall order faces further delay -- even up to next year.

The prolonged delay is causing fury among the car owners here. A number of affected owners are suing the automaker, requesting a total cash refund rather than a recall.

The delayed recall is dragging Audi Volkswagen Korea’s move to receive recertification from the South Korean government to resume sales here. In August, the automaker had to halt sales of 80 models of Audi, Volkswagen and Bentley vehicles for cheating on emissions and noise level test.

By Ahn Sung-mi (sahn@heraldcorp.com)

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