April 26, 2024

• 

[THE INVESTOR] Audi Volkswagen Korea has appointed Marcus Hellmann, an executive at the German carmaker‘s legal affairs division, as co-managing director in its operation in Korea, the company said on Feb. 12. 

Hellmann is a legal expert who has dealt with emission rigging scandal at the carmaker’s head office in Germany. With Hellmann taking the top position in Audi Volkwagen Korea, the carmaker‘s Seoul office will start operating under a dual-CEO system, it added.

“With Hellmann taking the managing director position, we plan to strengthen the management system related to local laws and regulations,” the company said in a statement.

Johannes Thammer, the incumbent managing director of Audi Volkswagen Korea, will focus on the carmaker’s overall management as well as sales and marketing strategy, it added.

Having Hellmann on Audi Volkswagen Korea’s top board appears to be the German carmaker strategically moving to resume sales of its vehicles by regaining the Korean government’s approval.

Approximately 126,000 VW vehicles in Korea are expected to be recalled following an investigation that accused Audi Volkswagen Korea of using a “defeat device” to illegally alter emissions readings to meet environmental standards.

Last month, VW executive Francisco Javier Garcia Sanz apologized local consumers for the disappointment and inconvenience caused by Audi Volkswagen Korea’s emissions scandal,

 He was visiting the Seoul Central District Prosecutors’ Office to discuss matters involving the emissions scandal as well as issues related to the 956 vehicles that were confiscated by the prosecution last June.

The vehicles were confiscated from their pre-delivery inspection center in Pyeongtaek, Gyeonggi Province. The prosecution said the cars were imported without proper environmental authorization.

VW Korea has also been under fire after it was revealed the automaker agreed to a US$14.7 billion settlement deal with the US Government that would allow 475,000 US consumers to receive compensation payouts of up to US$10,000 each. In contrast, consumers in Korea were only promised 1 million won (US$872) for car repairs and an inspection coupon.

The German carmaker has said it was strictly following South Korea’s civil law system, citing differences from the US law system. In Korea, class action suits are only allowed in securities-related cases and not for general claims. Punitive damages are also not recognized in Korean court rulings.

By Cho Chung-un/The Korea Herald (christory@heraldcorp.com)