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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

How should Volkswagen deal with its diesel problems?

The hounds of hell are bearing down on Volkswagen in the wake of allegations of cheating on diesel emissions testing. In just a single day, Volkswagen's stock has dropped 23 percent and the German government has announced that it is going to investigate a far larger number of vehicles over emissions violations. The American storm is quickly becoming a global one. Volkswagen sells over a million diesel vehicles a year and also has more than 13 percent of the automotive market overall – it was the number one automaker in the world up until the scandal. Yet in a matter of hours, Volkswagen has also become a pariah with potential fines and recalls that may be dwarfed by how the alleged lies and deceit change how governments and consumers view the company. Consumers are really going to be the key to the company's survival. It's those consumers who are really going to be the key to the company's survival. Every single one of them now finds themselves with a product that was sold illegally and may not be registered until recall work is done. What's worse is that Volkswagen doesn't yet have a solution for the emissions issue to offer these customers. It should also be noted that this is not the first time Volkswagen has found itself in violation of EPA emission regulations. Volkswagen is in a world of trouble, so what now? As a car dealer and former financial analyst who took several companies public, I believe Volkswagen can and should consider three points of action that would make an enduring difference in the times to come. 1. Offer affected TDI owners a compelling reason to stay with the brand. Recall work and a cup of coffee at the dealership are not going to be enough to placate current owners. Volkswagen should provide compensation for customers at the earliest opportunity and offer some type of inducement that keeps them within the fold. This shouldn't be the industry's version of a Chuck E. Cheese coupon - a small discount on a new vehicle. Volkswagen needs to offer something along the lines of a strong warranty extension of the entire powertrain (not just the emissions system) or some type of valuable feature upgrade for these vehicles so that owners feel that they have been treated fairly. Perhaps a combination of a brand new navigation system, software upgrades for the infotainment components, or some type of basic free WiFi service would be a healthy act of generosity.

VW promises 7-seat CUV for America in 2016

On the eve of the Detroit Auto Show, Volkswagen chief executive Martin Winterkorn has confirmed the imminent arrival of a new crossover. The model, previewed at the same show last year by the CrossBlue concept pictured here, will be unique to the North American market when it arrives here in 2016. The new three-row, seven-seat crossover is part of an ambitious expansion plan on the part of Volkswagen and Audi in North America, where the two brands aim to sell a million vehicles by 2018.
That's a mighty big increase over the 600,000 vehicles which the Volkswagen Group sold here last year, but it's moving in the right direction: That number is already a 100-percent increase of what it sold here just five years ago. At that rate, VW should have little trouble meeting its goals, particularly with the arrival of the new crossover and the introduction of Golf production at its assembly plant in Puebla, Mexico. Read the full statement below for more.