March 04, 2021 12:24
Renault Samsung and Ssangyong have been fined around W40 billion each for violating the environmental regulations (US$1=W1,123).
This is particularly bad news as Ssangyong is seeking court-mediated resuscitation and Renault Samsung is taking applications for early retirement to cut costs.
Last month, the Environment Ministry announced a list of automakers who will be penalized for failing to meet tougher greenhouse gas emission standards adopted in 2012. Renault Samsung was fined W39.3 billion and Ssangyong W38.9 billion.
Automakers that fail to meet greenhouse gas emission standards are slapped with fines commensurate with the number of vehicles they sell.
The ceiling for greenhouse gas emissions was lowered from 120 g per kilometer in 2018 to 110 g in 2019. Twelve automakers failed to meet the new standard, but only Renault Samsung and Ssangyong were fined because the rest emitted lower levels of greenhouse gases than the permitted standard from 2016 to 2018 and were exempt.
Renault Samsung and Ssangyong have three years to pay the fine and could be forgiven them if they produce enough eco-friendly cars until then and emit lower levels of greenhouse gases.
But Renault Samsung makes only one eco-friendly car, the supermini electric car Renault Zoe, and Ssangyong, which specializes in gas-guzzling SUVs, none. Another option is for them to buy carbon credits from other carmakers, but that could be just as expensive as the fine.
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