Bosch agrees to payout to resolve US claims in VW emissions scandal

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Owners of Volkswagen cars rigged with illegal software to pass emissions tests in the US can expect additional payments thanks to a settlement reached late on Tuesday with Bosch, the private German company that is the largest automotive component supplier in the world by revenue.

Bosch has agreed to pay $327.5m to resolve all claims against it from consumers and car dealers.

No new details emerged about what role Bosch played, though it is identified in the settlement papers as “the manufacturer of the software” in the cars “that controlled whether or not the emissions system operated” in compliance with US regulations.

Owners of VW cars with 2.0-litre engines who are eligible for the agreement made with Volkswagen last year should receive an additional $350 each from the Bosch settlement.

Owners of VW’s 3.0-litre engine cars caught up the scandal — which are more expensive and and include luxury Audi and Porsche models — should receive up to $1,500 each.

The US court in California that oversees civil claims against Volkswagen and Bosch is scheduled to hold a preliminary approval hearing on February 14. “Bring your Valentine to San Francisco,” Judge Charles Breyer told the court last month.

Lawyers for VW car owners alleged that Bosch was complicit in the automobile maker’s cheating, and efforts to cover it up. Specifically it was accused of supplying VW with “electronic diesel control unit 17″, a component supplied to VW and capable of gathering data on vehicle speed, acceleration, air pressure and the position of the steering wheel. Lines of code within the unit’s software enabled VW’s diesel vehicles to recognise when they were being tested, so they could emit much lower levels of NOx compared to when they were on the road.

Bosch has previously acknowledged it supplied the device but said “how these components are calibrated and integrated into complete vehicle systems is fundamentally the responsibility of each automaker.”

VW admitted in September 2015 to equipping cars with the software and it resolved criminal and civil claims with the Department of Justice last month.

Elizabeth Cabraser, lead counsel for plaintiffs, is expected to hold a press conference later on Wednesday.

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