VW emissions scandal spreads to China

Oct 02, 2015, 08:30 am

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By Hong Soon-do, Beijing correspondent, AsiaToday - Volkswagen's troubles have spread further as the company has reportedly sold vehicles equipped with emissions systems containing manipulated software in its largest market China. It looks like the German carmaker could struggle for a considerable period of time due to its sluggish sales in the Chinese market.

A Volkswagen store located in Changan , Beijing. Fewer consumers are visiting the store./ Source from search engine Baidu

According to a source familiar with the Chinese vehicle market on Thursday, Volkswagen sold 1,947 problematic Tiguan crossovers in China. As a result, things are getting hard for other models of Volkswagen. The local automotive industry sees that the Volkswagen emissions scandal will inevitably spread. Foreign vehicle importer KRCN president Song Hoon-cheon said, "If Volkswagen intentionally manipulated its vehicles' emissions systems, it won't be a problem limited to Tiguan. Other models like Jetta, Golf, Beetle, and Audi might be involved in the emission rigging, too."

The emissions scandal is threatening to ruin its trust among Chinese consumers. China Telecom director Chen Jie, who owns the Audi A3, said, "I never knew this was going to happen. I will request Volkswagen Beijing an official inspection of my vehicle. If there's a problem, I will request a recall." Some Volkswagen vehicle owners are reportedly preparing to file class-action lawsuits against the carmaker.

Chinese consumers used to have the implicit trust of German vehicles. A German vehicle meant one of essential luxury goods of rich people among Chinese people, and such recognition was based on trust over German carmakers. However, the German carmaker has lost trust among consumers in China. It may take a long period of time to regain trust.

The problem is that other carmakers may also face a loss of trust due to the scandal. In fact, German carmakers' sales are declining in China. Hyundai-Kia Motors will likely benefit from the scandal. Lee Sang-eun, deputy head at Beijing Hyundai Motors, said, "The sales which have sluggish so far are showing signs of improvement in September. Things will get better since our company vehicles are far from troubles."

#Volkswagen #emissions scandal #Tiguan #China 
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