FINES Bosch Pays $328 Million to Settle Dieselgate Law Suit

German auto-parts supplier Bosch has agreed to pay out some $327.5 million in compensation to U.S. buyers and dealers of manipulated VW diesel cars. Volkswagen has also finalized a $1.2 billion U.S. settlement.
Automotive components supplier Bosch settled a U.S. civil claim related to its role in the Volkswagen emissions-cheating scandal.

German auto-parts supplier Bosch will pay $327.5 million, or €305 million, to U.S. owners and dealers of manipulated Volkswagen diesel vehicles, according to court documents filed on Tuesday.

Bosch, the world's largest auto-parts maker, supplied the engine control device that houses the cheat software used by VW to manipulate diesel emissions during tests. Bosch has categorically denied any wrongdoing, insisting that it simply made the components according to Volkswagen’s specifications and was not responsible for how they were used.

Bosch said in a statement that a compensation agreement "would settle the claims of consumers and dealers of used vehicles against Robert Bosch GmbH, its affiliates, employees, and directors" in the United States.

The company added that it had decided to settle in order to focus on an extensive "transformation process."

Diesel car owners sued Bosch in 2015, claiming the company helped design secret "defeat device" software that allowed VW to evade emissions rules. Last December, Bosch had announced that a compromise had been reached to settle claims against the company.

As court documents also showed, Volkswagen finalized an agreement to pay at least $1.22 billion to fix or buy back nearly 80,000 3.0 liter diesel-engine vehicles in the U.S. to settle claims it fitted emissions-cheating software to the cars.

Volkswagen's payment is part of a preliminary settlement agreed on in December, mostly affecting SUVs of its brands VW, Audi and Porsche. It could be forced to pay up to $4.04 billion if regulators don't approve fixes for all vehicles.

In December, VW agreed to buy back 20,000 3-liter diesel vehicles and expected to win approval to repair another 60,000 3-liter diesel cars. The settlement is the last major U.S. hurdle to Volkswagen moving beyond the Dieselgate scandal. It still faces investor lawsuits in the U.S. and Europe.

VW is set to plead guilty on February 24 in Detroit to three felony counts as part of a plea agreement with the U.S. Justice Department.