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Germany approves scandal-hit VW's recall plan for 2.0-litre cars
by Staff Writers
Berlin (AFP) Jan 27, 2016


German authorities on Wednesday gave the green light to a plan by scandal-hit Volkswagen to recall thousands of vehicles fitted with devices designed to cheat pollution tests.

The Federal Transport Authority said Volkswagen can "now start recalling and refitting" 2.0-litre Amarok models hit by the scandal.

It added that it was still examining VW's proposals for other models.

VW slumped into a scandal of global proportions after it admitted in September that it had fitted 11 million diesel engines worldwide with devices aimed at cheating emissions tests.

It is under investigation in several countries including the United States where authorities first uncovered the scam and have now filed a lawsuit against VW.

US authorities have also rejected VW's first proposals to fix affected 2.0 litre cars.

Besides facing billions in potential fines, the scandal has also hit VW's shares hard -- wiping out nearly 40 percent in market capitalisation since September even if they have come off their lows since then.

S. Korea sues Volkswagen executive over emission-cheating
Seoul (AFP) Jan 27, 2016 - South Korea said Wednesday it was filing a criminal complaint against a senior Volkswagen AG executive -- the second such suit in a week -- over the firm's emission-cheating scandal.

The environment ministry said it would ask Seoul prosecutors to probe Terence Bryce Johnsson -- head of overseas sales with Audi at the Volkswagen Group -- for selling cars that violate the South's environmental regulations.

He is registered as a board member of Volkswagen AG's Korean office, the ministry said.

"We filed the complaint to call for a more active response from Volkswagen's headquarters in Germany, as this matter eventually should be handled by them," said Hong Dong-Gon, a ministry official in charge of auto environmental standards.

The latest complaint also targeted the firm's Korean unit and its managing director, Johannes Thammer.

The ministry filed a separate criminal complaint against Thammer last Tuesday, saying a plan the Korean unit submitted for recalling emissions-cheating vehicles was legally deficient.

The world's second-largest automaker faces legal action in several countries, after it admitted in September to faking US emissions tests on some of its diesel engine vehicles.

In November, Seoul ordered Volkswagen Korea to recall more than 125,000 diesel-powered cars sold in the Korean market and fined the firm 14.1 billion won ($12.3 million).

Foreign carmakers, especially German brands like Volkswagen, have steadily expanded their presence in the South's auto market long dominated by the local giant Hyundai and its affiliate Kia.

Sales of foreign cars account for about 15 percent of the total car sales here, compared to 10 percent in 2012.

Around 70 percent of foreign auto sales in South Korea are diesel engine vehicles.


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