Bosch agrees to pay $25 mln to settle California diesel emissions probe (updated)

BOSCH

07/11/2022 23:48

(Adds Bosch statement, comment from state, background)
    By David Shepardson
       Nov 7 (Reuters) - German auto supplier Bosch  BOSH.NS 
has agreed pay $25 million to resolve California's probe into
the company's role in the diesel emissions scandals at
Volkswagen  VOWG_p.DE  and Fiat Chrysler  STLA.MI , the company
and state said Monday.
    The settlement, which is subject to court approval, resolves
allegations Bosch participated in misconduct by providing
hardware, software, and software programming or calibration
services to Volkswagen and Fiat Chrysler - now known as
Stellantis   STLA.MI  - "when it knew or should have known that
these auto manufacturers were violating environmental and
consumer protection laws," California Attorney General Rob Bonta
said.
    Bosch confirmed the settlement but said it "neither
acknowledges the validity of the claims brought forward, nor
does it concede any liability."
    Under the settlement, Bosch must disclose to California if
it concludes a manufacturer will use or has used software to
evade emissions rules. 
    "Bosch violated consumer trust when it gave Volkswagen and
Fiat Chrysler the technology they needed to skirt state and
federal emissions tests," Bonta said. "Bosch's actions
facilitated one of the biggest environmental crimes of our time,
and today, they are paying the price."
        Bosch previously agreed to pay more than $400 million to
U.S. diesel VW and Fiat Chrysler owners and resolve claims from
state attorneys general over diesel emissions.
    Volkswagen admitted in 2015 to using illegal software to
cheat U.S. pollution tests, pleaded guilty as part of a $4.3
billion settlement reached with the Justice Department that
overall cost the German automaker more than $30 billion in
fines, penalties and vehicle buyback costs.
        Diesel car owners sued Bosch in 2015 claiming the
company helped design secret "defeat device” software that
allowed VW to evade emissions rules and alleged Bosch was a
“knowing and active participant” in Volkswagen’s decade-long
scheme.
    Stellantis' FCA US unit in June pleaded guilty to criminal
conspiracy and agreed to pay $300 million to resolve a Justice
Department diesel emissions fraud investigation. 
    Fiat Chrysler previously paid a $311 million civil penalty
and $183 million in compensation to more than 63,000 people as
part of a class-action diesel lawsuit.
 (Reporting by David Shepardson; Editing by Leslie Adler and
Lincoln Feast)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))