Embattled German automaker Volkswagen’s sales in South Korea more than quadrupled in November on the back of large-scale incentives and promotions, helping it overcome the aftermath of a worldwide emissions scandal that made the news in October. (Image : Yonhap)
SEOUL, Dec.4 (Korea Bizwire) – Embattled German automaker Volkswagen’s sales in South Korea more than quadrupled in November on the back of large-scale incentives and promotions, helping it overcome the aftermath of a worldwide emissions scandal that made the news in October.
Volkswagen eased Korean consumers’ concerns with an exceptional interest-free installment deal, attracting clients who were planning to buy a foreign car. Consumers who were angry at Volkswagen’s actions after the scandal, in which the company seemed to be discriminating against the Korean market, purchased cars after they were introduced to the compelling deals.
According to industry analysts, Volkswagen sold around 3,000 units in the Korean market during the month of November. Since Volkswagen only sold 947 cars in October, after news of the scandal broke, sales more than tripled in the span of only one month. Considering that Volkswagen usually sells an average of 3,000 units every month in the domestic market, November sales not only recovered to their usual level, but also set a sales record for the year.
This is in contrast with the American market, where sales of Volkswagens dipped 24.7 percent in November compared to the same period last year.
Officials at Volkswagen Korea commented that the increased sales reflect the success of their promotions. They also explained that consumers were informed that the emissions scandal had nothing to do with fuel efficiency.
After Volkswagen experienced a state of emergency in October as the number of sales dropped under 1,000 units, the company launched the interest-free installment deal in November. Benefits were also provided to those who made purchases with cash, resulting in a maximum discount of 17,720,000 won. These benefits made it possible for clients who were looking to buy a more affordable Hyundai Grandeur to purchase a Volkswagen instead.
Embattled German automaker Volkswagen’s sales in South Korea more than quadrupled in November on the back of large-scale incentives and promotions, helping it overcome the aftermath of a worldwide emissions scandal that made the news in October. (Image : Yonhap)
Volkswagen’s soaring sales are overshadowing complaints from consumers who pointed out that Korea was being discriminated against.
Volkswagen provided customers in North America with vouchers and gift cards worth $1,000, but does not have any plans to offer compensation to Korean customers.
The law firm Barun demanded that Volkswagen compensate Korean customers in the same way as they did to North American customers, but have yet to receive a response.
By Francine Jung (francine.jung@kobizmedia.co.kr)
