South Korea Suspends Sales Of 80 VW Models

South Korea has put a halt on sales of 80 Volkswagen (LSE: 0P6N.L - news) models and fined the carmaker $16m (£12m) over allegedly forging emissions tests results.

The sales ban applies to 80 different models of VW, Audi (LSE: 0FG8.L - news) and Bentley cars, and is a fresh blow to the German carmaker as it struggles to rebuild its image after it admitted faking emissions tests on some of its diesel-engine vehicles last year.

A total of 209,000 VW vehicles have been de-certified in South Korea since November, which equates to 68% of sales to the country since 2007.

"It usually takes three months for vehicle certification, but this may take longer for Volkswagen, as we will take thorough steps," the ministry for environment said.

The world's second largest carmaker voluntarily halted sales of most of its models in South Korea from 25 July, ahead of the government's decision.

Quarterly profits at the company dropped 12% at its main passenger division last week, reflecting the extent of the repercussions the company is suffering as a result of the emissions scandal.

Volkswagen is facing legal action in several countries, but described this latest ruling as "most severe" and said it would consider requesting an "injunction of execution."

The company said it could take legal action against the government's decision, "if this will help recover our company's business reputation and benefit our consumers, dealers and other partners".

Around 11 million VW vehicles have been affected worldwide, and the group has so far set aside £12.7bn to cover the cost of the scandal.