Former Audi VW Korea Chief Questioned in Seoul

Former Audi VW Korea CEO Trevor Hill traveled from Germany to be grilled by Korean prosecutors Thursday, claiming that Volkswagen headquarters in Germany did not order its Korean subsidiaries to install emission cheating software.

Hill, 54, who served as CEO of Audi VW Korea from 2007 to 2012, was alleged to knowingly be involved in importing diesel-equipped vehicles that used special software to control the engines so that they passed laboratory tests, but during regular vehicle operations greatly exceeded permissible emission levels.

Outside the Seoul Central District prosecutor’s office, Hill tells reporters his intent was to clear up emission questions about Audi VW Korea, saying he had not been aware of software being installed to cheat on emissions testing and denying knowledge that VW headquarters was involved in ordering any emission-compliance irregularities in Korea.

Prosecutors questioned Hill about the emission-rigging software and also on allegations that VW submitted fraudulent vehicle test reports in order to obtain fuel-economy and noise-level certification.

The prosecutors also called him out on VW’s evasion of a July 2011 order from the Ministry of Environment to provide technical data that would explain why Audi and VW diesel engines were found to emit illegally high levels of nitrogen oxide when in operation. VW never provided the information and still has not provided it, according to the Ministry.

Hill, the second of seven Volkswagen executives summoned from Germany to give testimony to Korean prosecutors in the Audi VW Korea emission-rigging scandal, currently is the director of strategic projects – internationalization, at Audi AG headquarters in Germany, a post he’s held since July 2015. Prior to that appointment he served as managing director of Audi’s Middle East operations after heading Audi VW Korea.

Just four weeks ago, the first of the seven executives, Detlef Stendel, was grilled for an entire day by the prosecutors. Based in Germany, Stendel is a veteran VW executive in charge of all VW emission testing.

Stendel also told the prosecutors that he had come to Korea voluntarily in order to answer questions and thoroughly explain the emission situation to Korean officials. He too was questioned about VW’s 2011 refusal to explain the high level of nitrogen-oxide emissions in many of the diesel engines.

It is not clear if any of the remaining five VW executives from Germany will appear in Korea for questioning. Observers believe Hill’s testimony yesterday may end the initial questioning phase.

The prosecutors earlier had questioned Audi VW CEO Johannes Thammer, VW Korea CEO Thomas Kuehl, and former VW Korea CEO Park Dong-hoon, who is now the CEO of Renault Samsung Motors. All three had been questioned in suspect status and could possibly face charges.

Court to Hear Recall Petition

In a related development, a Korean law firm announces the Constitutional Court of Korea will soon hear a petition filed on behalf of more than 5,300 VW owners asking it to force the Ministry of the Environment and Ministry of Transport to issue a recall order for the owners’ affected vehicles, and also issue a replacement order that would require VW to replace defective vehicles or refund purchase or lease payment amounts.

Before submitting the petition to the court last month, the law firm filed three previous petitions with the ministries in June, July and August, without eliciting any response.

The law firm is accusing the Korean Government of showing favoritism to the nation’s automotive companies and not properly prosecuting those who break regulatory laws.

However, the prosecutors did take a Korean executive at VW Korea into custody in September, charging him with submitting fraudulent gas-mileage and noise-level documentation on VW vehicles with gas engines.

The Ministry of the Environment has placed a sales ban on some 80 Audi and VW models, drastically impacting the German brands’ volume.

Also due to public reaction to the emission scandal, VW Korea sales fell 94% last month, from 2,900 vehicles sold in September 2015 to 184 total units.

Audi sales also plunged by 85%, with only 500 vehicles sold, compared to 3,400 in like-2015.