2017-02-01 06:29:08
Bosch, a Volkswagen Supplier, Agrees to Settle Over Diesel Scandal

FRANKFURT — The German auto electronics supplier Robert Bosch said on Wednesday that it had agreed to pay $327.5 million to settle claims that the company helped devise the software that Volkswagen used to cheat on United States emissions tests.

Owners of Volkswagens and Audis with two-liter diesel motors in the United States will receive $350 per car under the settlement, in addition to the cash they are receiving from Volkswagen under a separate settlement. Owners of cars with three-liter motors, including some Porsche Cayenne S.U.V.s, will receive $1,500.

Bosch said it was not admitting wrongdoing as part of the settlement, which it reached with Volkswagen owners and with the United States Federal Trade Commission. The company could still face criminal charges in the United States and Europe for its role in the scandal. Last month, Volkswagen pleaded guilty in the United States to charges that included conspiracy to defraud the government and conspiracy to violate the Clean Air Act.

“We wish to devote our attention and our resources to the transition in mobility and in other areas of activity,” Volkmar Denner, the Bosch chief executive, said in a statement.

Lawsuits against Bosch accused the company of altering the engine software inside Volkswagen diesels so that the emissions equipment would function properly only when the cars were being tested for emissions. At other times, pollution controls were dialed back, producing tailpipe emissions far above the legal limits.

When Volkswagen first decided to cheat in 2006, it did not have the expertise to write the software and depended on Bosch, which supplied the engine computer, according to the lawsuits.

Volkswagen said on Wednesday that it had reached a final settlement to pay $1.2 billion in compensation to owners of Audi, Porsche and Volkswagen cars with three-liter motors. Under the settlement, the automaker agreed to buy back about 20,000 Volkswagen Touareg and Audi Q7 S.U.V.s from the 2009 to 2012 model years.

The broad outlines of the Volkswagen settlement for three-liter vehicles were announced in December, but some details were not finalized until early Wednesday. A separate $15 billion settlement covers cars with two-liter motors, a much larger group that includes about 500,000 vehicles.

Volkswagen said it believed it could repair an additional 50,000 newer three-liter vehicles to make them compliant with clean air rules in the United States. Those diesels include the Porsche Cayenne S.U.V. from the 2013 to 2016 model years and larger Audi passenger cars from 2013 to 2016.

In addition to buybacks or repairs, owners will receive compensation of about $7,000 to $16,000, depending on the model.

If the company cannot repair the newer vehicles to the satisfaction of regulators, it will have to buy them back, according to the terms of the settlement. That would bring the total cost of the three-liter settlement to $4 billion.

Even without that extra sum, the total cost to Volkswagen of settlements and fines in the United States will be more than $20 billion.