Volkswagen Suspends South Korean Sales of Diesel, Petrol Models
German car maker Volkswagen (VLKAY) has responded to a regulatory onslaught in South Korea triggered by the emissions-rigging scandal by suspending sales of some models.
A spokesman for the German car maker said that the move affected 79 VW and Audi model variants with both petrol and diesel engines.
"We will voluntarily stop the sales on July 25 for some selected models because of issues in the homologation process," the spokesman said, referring to the certification process for new cars.
He said the company wants to "avoid uncertainty for our customers until we solve the homologation issue."
Volkswagen shares were little changed in Frankfurt on Friday and closed up 0.12% at €130.12 ($144.63), in line with peers Daimler (DDAIF) and BMW (BAMXF) .
The South Korean action comes as the government weighs whether to revoke the certification of certain models of VW cars and as local prosecutors investigate a raft of VW executives, having indicted a 52-year-old manager last week. The spokesman declined to comment on the investigation.
South Korea is Asia's second-largest market for diesel cars. VW sales in South Korea by unit fell by just over 33% in the first half to 12,463, according to figures from South Korea's auto industry manufacturing association.