Bosch forks over more money for its role in the diesel emission scandal.
There's still no end to the fallout from the diesel emissions scandal which rocked the motoring world back in 2015.
But it's not only the car manufacturers who have to bear this burden: Bosch, the hardware supplier that created this so-called "defeat device," is also paying the price, over and over again, worldwide. It's safe to say that Bosch regrets the day when it designed-in this software hack to circumvent emission regulations.
Many manufacturers have had to pay hefty fines and will likely continue to do so for using cleverly hidden software to pass US- and European emission certification of their products. The whole debacle started with a VW Jetta and a VW Passat, both so-called "Clean Diesel" models, but was subsequently proven to affect many other manufacturers.
In the latest settlement, reached on November 7, 2022, Bosch has agreed to pay $25 million to resolve California's probe into the company's role in the diesel emissions scandals at Volkswagen Group and Fiat Chrysler.
This comes after allegations that Bosch participated in these companies' manipulation of emission tests 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," according to California Attorney General Rob Bonta.
In response, Bosch confirmed the settlement, but said that it "neither acknowledges the validity of the claims, nor concedes any liability." However, as a result of this settlement, Bosch is now bound to disclose to California if it concludes that any manufacturer will use or have used software to cheat emissions testing.
Volkswagen has already paid more than $30 billion in various fines, penalties, recalls, and vehicle buybacks and Bosch has agreed to pay more than $400 million to Volkswagen and Fiat Chrysler owners and multiple states over its responsibility in the diesel emissions scandal.
In its turn, FCA (now a part of Stellantis) already paid $300 million in penalties after pleading guilty to charges of criminal conspiracy brought about by a Justice Department diesel emissions fraud investigation. This is on top of the $311 million fine and $183 million compensation paid to participants in a class-action lawsuit.