Volkswagen (VW) AG is cutting the prices of its cars in Japan and promising to pay cash to U.S. customers to regain their trust following the gas emissions cheating scandal; but no such measures are planned for customers in Korea.
According to the Korea Automobile Manufacturers' Association (KAMA), Volkswagen cut the price of its popular Golf model in Japan to 2.5 million yen, Tuesday, down 160,000 yen.
It also lowered prices of some Polo models — customers can purchase an entry-level model for 2.5 million yen.
In addition the carmaker improved warranty services for customers — extending towing services to five years from the current three, and offering free replacements of bumpers and side mirrors once a year to customers who purchased the car on an auto loan.
In the United States, the German automaker is set to either repurchase some 500,000 diesel cars or provide cash to the owners.
The measures aim at placating customers and improving its brand image tarnished by the scandal, in which it was revealed to have faked emissions results of some diesel cars.
However, VW has not provided any compensation plan for Korean customers.
The automaker had some promotional sales last year when the car sales plummeted following the scandal, but it was a temporary event aimed at decreasing stocks of older models.
The company had submitted a recall plan in January, but the environment ministry rejected it citing insufficient data and a lack of proper measures. It submitted a plan to recall around 125,000 cars with emissions manipulating devices in March, but this was again rejected.
It is still unclear when VW will compensate customers with recalls or other measures in Korea. Some critics have lashed out at the company for ignoring Korean customers as its sales here have been unaffected.
In Japan, VW's sales dipped 18.8 percent last year, even though the problematic models weren't sold there. The automaker also saw a sales drop of 8 percent in April from a year ago.
In Korea, however, the German automaker sold 35,700 vehicles last year. That is the third largest figure following BMW with 47,800 and Mercedes-Benz with 46,900. Thanks to an aggressive marketing campaign, its Tiguan 2.0 TDI BlueMotion was the best-selling foreign car in the country last year.
"Unlike in other countries, Volkswagen is still selling well in Korea. That may be the reason why it isn't taking proper measures here, while it is providing diverse incentives for customers elsewhere to gain back their trust following the emissions scandal," an industry source said.
VW Korea said it had no comment regarding the promotion program held in Japan.
But regarding the recall, its spokesman said, "The environment ministry requested that we provide additional material about the software, and we plan to submit it within this month. We expect to get approval for the recall after around a month."
According to the Korea Automobile Manufacturers' Association (KAMA), Volkswagen cut the price of its popular Golf model in Japan to 2.5 million yen, Tuesday, down 160,000 yen.
It also lowered prices of some Polo models — customers can purchase an entry-level model for 2.5 million yen.
In addition the carmaker improved warranty services for customers — extending towing services to five years from the current three, and offering free replacements of bumpers and side mirrors once a year to customers who purchased the car on an auto loan.
In the United States, the German automaker is set to either repurchase some 500,000 diesel cars or provide cash to the owners.
The measures aim at placating customers and improving its brand image tarnished by the scandal, in which it was revealed to have faked emissions results of some diesel cars.
However, VW has not provided any compensation plan for Korean customers.
The automaker had some promotional sales last year when the car sales plummeted following the scandal, but it was a temporary event aimed at decreasing stocks of older models.
The company had submitted a recall plan in January, but the environment ministry rejected it citing insufficient data and a lack of proper measures. It submitted a plan to recall around 125,000 cars with emissions manipulating devices in March, but this was again rejected.
It is still unclear when VW will compensate customers with recalls or other measures in Korea. Some critics have lashed out at the company for ignoring Korean customers as its sales here have been unaffected.
In Japan, VW's sales dipped 18.8 percent last year, even though the problematic models weren't sold there. The automaker also saw a sales drop of 8 percent in April from a year ago.
In Korea, however, the German automaker sold 35,700 vehicles last year. That is the third largest figure following BMW with 47,800 and Mercedes-Benz with 46,900. Thanks to an aggressive marketing campaign, its Tiguan 2.0 TDI BlueMotion was the best-selling foreign car in the country last year.
"Unlike in other countries, Volkswagen is still selling well in Korea. That may be the reason why it isn't taking proper measures here, while it is providing diverse incentives for customers elsewhere to gain back their trust following the emissions scandal," an industry source said.
VW Korea said it had no comment regarding the promotion program held in Japan.
But regarding the recall, its spokesman said, "The environment ministry requested that we provide additional material about the software, and we plan to submit it within this month. We expect to get approval for the recall after around a month."
According to the Korea Automobile Manufacturers' Association (KAMA), Volkswagen cut the price of its popular Golf model in Japan to 2.5 million yen, Tuesday, down 160,000 yen.
It also lowered prices of some Polo models — customers can purchase an entry-level model for 2.5 million yen.
In addition the carmaker improved warranty services for customers — extending towing services to five years from the current three, and offering free replacements of bumpers and side mirrors once a year to customers who purchased the car on an auto loan.
In the United States, the German automaker is set to either repurchase some 500,000 diesel cars or provide cash to the owners.
The measures aim at placating customers and improving its brand image tarnished by the scandal, in which it was revealed to have faked emissions results of some diesel cars.
However, VW has not provided any compensation plan for Korean customers.
The automaker had some promotional sales last year when the car sales plummeted following the scandal, but it was a temporary event aimed at decreasing stocks of older models.
The company had submitted a recall plan in January, but the environment ministry rejected it citing insufficient data and a lack of proper measures. It submitted a plan to recall around 125,000 cars with emissions manipulating devices in March, but this was again rejected.
It is still unclear when VW will compensate customers with recalls or other measures in Korea. Some critics have lashed out at the company for ignoring Korean customers as its sales here have been unaffected.
In Japan, VW's sales dipped 18.8 percent last year, even though the problematic models weren't sold there. The automaker also saw a sales drop of 8 percent in April from a year ago.
In Korea, however, the German automaker sold 35,700 vehicles last year. That is the third largest figure following BMW with 47,800 and Mercedes-Benz with 46,900. Thanks to an aggressive marketing campaign, its Tiguan 2.0 TDI BlueMotion was the best-selling foreign car in the country last year.
"Unlike in other countries, Volkswagen is still selling well in Korea. That may be the reason why it isn't taking proper measures here, while it is providing diverse incentives for customers elsewhere to gain back their trust following the emissions scandal," an industry source said.
VW Korea said it had no comment regarding the promotion program held in Japan.
But regarding the recall, its spokesman said, "The environment ministry requested that we provide additional material about the software, and we plan to submit it within this month. We expect to get approval for the recall after around a month."