Bosch consents to pay €300 million in diesel vehicle settlement

February 01, 2017 // By Christoph Hammerschmidt
Besides the main culprit Volkswagen, also electronics supplier Bosch has been involved in the diesel exhaust gas scandal. Now the Stuttgart, Germany based company has entered into a settlement agreement with civil claimants – Bosch will pay $327.5 million (about € 304 million).

The settlement has already been achieved in past December, but the sum to be paid by Bosch has been published only now. Bosch supplied the software used by Volkswagen to illegally manipulate the exhaust gas values of certain diesel engines. The software has been used in vehicles from Volkswagen as well as from its subsidiaries Audi and Porsche. The software detected if the car was in test mode and only then it activated the emission control system. During normal driving, the emission control system was disabled, leading to exceeded nitric oxide output.

In contrast to Volkswagen, Bosch did never admit any misconduct in this case; by entering the settlement, “Bosch neither acknowledges the facts as alleged by the plaintiffs nor does Bosch accept any liability”, said Volkmar Denner, chairman of Bosch’s management board.

The corresponding documents have been filed with the competent U.S. court, the United States District Court for the Northern District of California in San Francisco. The settlement agreement was concluded with the Plaintiffs’ Steering Committee (“PSC”) on behalf of proposed settlement classes. According to legal experts, a civil procedure in the US would involve higher risks. Nevertheless, the agreement needs to be accepted by the court which could take until May, sources close to the matter said.