South Korea's Ministry of Environment will slap fines and file criminal charges against the local units of Volkswagen AG's Audi AG and Porsche AG after the carmakers allegedly installed emissions-cheating devices on 10,261 vehicles across eight of its models, The Korea Times reported Aug. 20.
Fines reportedly could reach up to 7.9 billion South Korean won for Audi Volkswagen Korea and 4 billion won for Porsche Korea, but a final amount is yet to be determined.
The ministry found the AdBlue injection system for exhaust fluids on three Audi A6 models, two Audi A7 models, two Volkswagen Touaregs and a Porsche Cayenne to have been manipulated. The government has barred sales of the eight models in the country, according to the report.
The report said affected vehicles were sold May 2015-January 2018 and were rigged to spray less emissions-reducing fluid than they were designed to release. According to the ministry, the affected cars emit 10 times more nitrogen oxide than other cars.
In a statement, Audi Volkswagen Korea reportedly said it already submitted recall plans and was working with the ministry to address the issue. The carmaker said it accepts the ministry's ruling and that it will attempt to "minimize customer inconvenience" during the recall process, according to the newspaper.
Porsche Korea reportedly said it is waiting for direction from the ministry to address the issue.
Volkswagen, which is owned by Porsche Automobil Holding SE, is facing a civil lawsuit from the SEC over another diesel emissions-cheating scandal.
In May, Volkswagen said so-called dieselgate had cost the company more €30 billion since 2015. Its first quarter profit took a €1 billion hit from legal costs relating to cheating in diesel emissions tests.
As of Aug. 19, US$1 was equivalent to 1,210.42 South Korean won.
