South Korea's environment ministry says it will fine Nissan 330 million won, or $280,000, for allegedly manipulating emissions via a defeat device. Nissan denies the use of any such device on the Qashqai crossover vehicle, which is manufactured in Sunderland, UK and sold in South Korea.

The South Korean authorities have tested 20 vehicles after the Volkswagen emissions debacle came to light last year, and they say their claims are related to the newer generation Qashqai diesel models with Euro 6 emission requirement engines. The environment ministry believes Nissan has used a device on the Qashqai to turn off the exhaust reduction system in regular usage. Nissan has replied that no such device has been used in the Qashqai nor any other Nissan vehicle, and that EU authorities have found no emissions trickery with its products.

Nissan is expected to tread very careful here, as it was through Nissan's questioning of Mitsubishi's fuel economy data that the recent Mitsubishi scandal emerged, resulting in Nissan's purchase of a controlling 34 percent share of Mitsubishi's stock.

In addition to the 330 million won fine, there would be a recall of 814 new Nissan Qashqais in South Korea. Nissan has roughly three months to dispute the matter.

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