Formidable Korean Consumers Turn Cold Shoulders on VW
Formidable Korean Consumers Turn Cold Shoulders on VW
  • Teddi Kim
  • 승인 2015.10.24 08:13
  • 댓글 0
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- Sales dropped to one tenth, the biggest dip in the world

After the exhaust scandal by Volkswagen as revealed last month, their sales in Korea dropped to one tenth as Korean consumers turn their faces away.

 

The crisis at VW is getting worse as major European countries like Germany, Spain, and France launched probes in the matter, which affecting the global sales downward. There are some concerns that VW will hit hard beyond its capability.

But the concerns do not seem to be overshadowing so much their performance as their global sales are estimated to have slipped around 30% over the previous month until 19th October as was reported by VW head office.

There was a halt order in the U.S. for EURO 6 model sales, and in Switzerland also retailing was suspended for the cheating models, and hence sales in those countries have plunged a lot.

But the biggest fall in sales is observed in Korea after the diesel emission scandal spreading.

According to VW Korea, their new registration upto 18th of October stood at just 202 units, while contracted volume stood at 350 units, which is 70% dip over the same period of the previous month.

Especially, entering this month, visitors to the exhibition shops nearly halted, and sales are expected to be negligible at the level of below 300 units this month.

Before the exhaust scandal, their monthly sales stood at 3,000 units, with a sum of 27,679 units for the first nine months of this year.

In order to deliver even one more car, VW Korea is offering an incentive of 1 million won to a sales person from this month, on top of a hefty discount off the retail prices of Tiguan, 2015 Passat 1.8 gasoline, 2015 Touareg, 2016 CC 2.0 TDI by 5~8%, 13.5%, 18%, and 13%, respectively, but local consumers are giving only cold responses.


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