Volkswagen's 'dieselgate' spreads to Bosch

Synopsis

Volkswagen reaches a new settlement with 75,000 US owners of diesel vehicles affected by the emissions scandal, as revealed in court documents released late on Tuesday in California. The company agrees to pay over 1 billion dollars to these owners, who possess three-liter engines equipped with illegal test-cheating software. This software is linked to the Gulf emissions scandal that began in September 2015, when Volkswagen disclosed that up to 11 million diesel cars worldwide contained technology that understated harmful nitrogen oxides emissions during official tests. The scandal has led to a total cost of 24 billion dollars for Volkswagen in North America. Additionally, Bosch, the German company that supplied the emissions-cheating software, agrees to pay 327 million dollars to resolve claims from US car owners and dealers, although it does not admit to the allegations made against it.