Volkswagen and Bosch agree on $1.2 billion diesel gate settlement

Volkswagen Group of America and Bosch have arrived at settlement of $1.2 billion for their roles in Volkswagen’s diesel-emissions scandal for cars fitted with diesel V6 engines.

This settlement between the German OEM and engine supplier is in regard to cars fitted with 3.0-litre TDI V6 diesel engines that were sold in North America. Volkswagen alone will pay around $1.2 billion to repair or buy back these said vehicles fitted with the “defeat devices” while the engine supplier, Bosch will separately pay $300 million to owners of Volkswagen, Audi and Porsche cars fitted with the V6 diesel engines.

Around 78,000 VW branded cars and SUVs were fitted with this diesel V6 engines which featured the emission defeat device. Among the total number of vehicles, around 20,000 of them were manufactured between 2009 – 2012. Volkswagen will buy back these vehicles, offer trade in credits or terminate the leases. These vehicles include older versions of the Volkswagen Touareg and Audi Q7.

The remaining 58,000 vehicles which would be newer versions of the Touareg and Q7 in addition to Audi's A6, A7, A8, A8L, and Q5 models and the Porsche Cayenne Diesel manufactured between 2013-2016 will be recalled and repaired.

Despite the emission scandal, Volkswagen has continued to grow and has now become the world’s largest automaker in 2016, surpassing Toyota who had previously held the position from 2012 till 2015.