2015 Audi S6 Quattro on 2040-cars

Auto blog

VW suspends sales in South Korea ahead of government meeting

Volkswagen and Audi have announced they will suspend sales of 79 different models in South Korea ahead of a meeting with the country's environmental ministry. VW will halt sales starting on July 25, the same day that its officials are to sit down with the South Korean environmental ministry, which will likely punish the German company. The Wall Street Journal reports that Korea's response to the situation will likely come in the form of an outright sales ban on Volkswagen products by revoking certifications on 79 different models based on 34 different vehicle types. Affected models include the VW Golf, Jetta, and Tiguan and the Audi A3 and A6, the WSJ reports. Essentially, it looks like VW is merely trying to get out ahead of the South Korean government. If the revocation goes through, it'd likely lead to fines and a relatively large recall of around 79,000 vehicles, the WSJ reports. Despite the dreary forecast, Volkswagen reaffirmed its commitment to the South Korean market. "This decision doesn't mean that Volkswagen is pulling out of Korea, which is a very important market to us," a Korean rep for the company said in a statement. "We'll reapply for certification of our cars if the government revokes it. The process may take several months." While Volkswagen's diesel emissions testing scandal is part of the problem, South Korea is taking a harder line than a lot of other countries. Authorities indicted a Volkswagen exec on charges of submitting falsified emissions documents and noise tests last week, while separately, Korea's trade watchdog is considering criminal charges against execs, according to the WSJ. Banning VW Group sales in South Korea isn't quite as dramatic as if the company stopped sales in China, the United States, or Germany, but it's still going to sting. VW Group products (including Bentley) represented around a third of European cars imported by South Korea last year. News Source: The Wall Street JournalImage Credit: Stefan Wermuth / Reuters Government/Legal Green Audi Volkswagen Emissions vw diesel scandal

Investors storm Volkswagen with $9 billion in lawsuits

Volkswagen's investors are latest group to take up pitchforks against the embattled automaker, and they're seeking $9 billion in damages, Reuters reports. The investor lawsuits were filed in a court in Braunschweig, Germany, near Volkswagen's Wolfsburg headquarters. On Monday, the first business day following the anniversary of the emissions revelations, the court received 750 lawsuits alone. All told, about 1,400 lawsuits have been filed. The largest single claim totals $3.7 billion and was filed more than six months ago. The lawsuits stem from complaints that Volkswagen didn't divulge information on the cheating software to investors quickly enough. Volkswagen has said that it hasn't broken any capital market laws. The $21.5 billion the company set aside to weather the storm may not be enough. The consumer fix is estimated to run the company $14.7 billion, either through buybacks or a fix that still seems unclear. In addition to the lawsuits, Volkswagen CEO Matthias Mueller confirmed that Audi boss Rupert Stadler is under investigation regarding the scandal. Mueller refused to give further details, but this shouldn't come as a surprise to anyone. Audi has admitted that its 3.0-liter V6 was equipped with the same emissions-cheating software as the 2.0-liter four-cylinder diesels. Stefan Knirsch, Audi's head of development, has been suspended as part of the overall investigation. Knirsch took over duties after his predecessor quit. Knisch was previously head of engine development at Audi. Related Video: News Source: Reuters Green Hirings/Firings/Layoffs Audi Volkswagen Emissions Diesel Vehicles vw diesel scandal

Volkswagen profit jumps as it warns of a cooling auto market

FRANKFURT, Germany — Volkswagen says its profits jumped 44% in the third quarter thanks to a more profitable mix of vehicles in its lineup but warned that global car markets are slowing more than expected and lowered its forecast for annual sales. After-tax profit rose to $4.42 billion (3.98 billion euros) as revenues rose 11% to $68.27 billion (61.42 billion euros). The sales margin of 7.8% exceeded the goal of 6.5-7.5% as vehicles bringing higher profits took a larger share of sales. The Wolfsburg-based automaker pointed to the headwinds facing the industry by saying that it expects "vehicle markets will contract faster than previously anticipated in many regions of the world." It said sales would be "on a level" with last year's record of 10.8 million vehicles. Previously it had expected a slight increase. The company said its profits would be in the lower end of its forecast range. Global automakers are facing a slowdown in sales amid disputes over trade and from pressure in the European Union and China to develop and sell low-emission vehicles that require heavy investment in new technology. Ford and Renault have issued profit warnings in recent days, while Daimler, maker of Mercedes-Benz luxury cars, lost money in the second quarter and is expected to outline a cost-cutting strategy for investors on Nov. 14. Volkswagen is leading the push into electric vehicles in Europe by launching its ID.3 battery-powered compact car at prices it says will make zero local emission vehicles a mass phenomenon. The company was able to increase earnings in the quarter despite an 18% rise in spending on research and development.