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Bosch reaches $327.5m settlement in Volkswagen emissions scandal

Published 02 February 2017

Bosch has agreed to pay $327.5m in compensation to US buyers and dealers of Volkswagen-made diesel cars affected by the emissions scandal.

Plaintiffs alleged that Robert Bosch helped Volkswagen design the ‘defeat device’ software and was a ‘knowing and active participant’ in the act.

Bosch stated that it has entered into a settlement agreement with civil claimants in the US regarding its role in the dieselgate scandal involving vehicles under the brands Volkswagen, Audi and Porsche.

By agreeing to pay the compensation, Bosch said it neither acknowledges the facts alleged by the plaintiffs and nor does it accepts any liability. The settlement still needs the approval from the US Judge.

Robert Bosch Management Board chairman Volkmar Denner said: “Upon careful consideration of all relevant aspects, we have in this case decided to enter into a settlement agreement.

“Bosch is currently undergoing the biggest transformation process in its company history. We wish to devote our attention and our resources to the transition in mobility and in other areas of activity.”

At present, the automotive supplier is facing charges in cases filed in Germany, the US and in other European countries by Volkswagen owners.

The ‘defeat devices’ fitted on several Volkswagen’s cars were programmed to recognise whether the car is being tested for emission levels, triggering a full control on pollution levels. These controls would be dormant under normal driving conditions.

Thus, the vehicles under normal driving conditions would give out 40 times more emissions than the permitted levels.

Recently, VW reached an agreement with the US customers to pay $15.5bn to the owners of about 500,000 affected diesel engine vehicles, government agencies and to US Volkswagen dealers.

Image: Volkswagen’s supplier Bosch agrees to pay $327.5m as compensation for its role in dieselgate scandal. Photo: Courtesy of Mac105/Wikipedia.