Bosch Agrees To Pay $25M To Resolve Diesel Emissions Scandal In California
Bosch, one of the world’s largest auto components suppliers, has agreed to pay $25 million in order to resolve the company’s participation in the global diesel emissions scandal. The settlement was confirmed by California state Attorney General Rob Bonta, who said earlier this week Bosch has agreed to resolve the state’s probe into the firm. The settlement is still subject to approval from the court.
Bosch allegedly participated in the scandal by “providing hardware, software, and software programming or calibration services to Volkswagen and Fiat Chrysler when it knew or should have known that these auto manufacturers were violating environmental and consumer protection laws,” Bonta said, quoted by Automotive News. The company, in turn, declared it “neither acknowledges the validity of the claims brought forward, nor does it concede any liability.”
Several years ago, Bosch was alleged of creating diesel emissions cheating software, which was developed only for testing purposes. However, Volkswagen Group eventually decided to use it on production cars under its brands VW, Audi, Skoda, and SEAT, despite Bosch telling the company the so-called “defeat device” was illegal. In total, more than 11 million cars were delivered with software that alters the engine’s emissions during tests.
“Bosch violated consumer trust when it gave Volkswagen and Fiat Chrysler the technology they needed to skirt state and federal emissions tests,” Bonta added. “Bosch’s actions facilitated one of the biggest environmental crimes of our time, and today, they are paying the price.”
In previous settlements, Bosch agreed to pay more than $400 million to resolve different claims over the diesel scandal. Volkswagen, in turn, had to spend more than $30 billion in different fines and penalties, as well as vehicle buybacks. Fiat Chrysler Automobiles, now part of the Stellantis group, agreed to pay $300 million in a court settlement, while also paying $311 million in civil penalties and $183 million in compensation to customers.