Germany fines Bosch over 'dieselgate' role

Image
AFP Frankfurt Am Main (Germany)
Last Updated : May 23 2019 | 3:46 PM IST

German prosecutors said Thursday they had fined car parts supplier Bosch 90 million euros (USD 100 million) over its role supplying components in the "dieselgate" emissions cheating scandal.

Stuttgart investigators "levied a fine against Robert Bosch GmbH for negligently infringing its quality control obligations," they said in a statement, adding that the German company had agreed not to contest the fine.

The 90 million-euro sum is made up of a penalty of two million, while the remaining 88 million covers the estimated economic benefit Bosch gained from the crimes.

Beginning in 2008, Bosch "delivered around 17 million motor control and mixture control devices to various domestic and foreign manufacturers, some of whose software contained illegal strategies," the prosecutors found.

"Cars fitted with the devices emitted more nitrogen oxides than allowed under regulations." Volkswagen admitted in 2015 to fitting 11 million cars worldwide with such technology, and the fallout has so far cost the German car behemoth more than 30 billion euros. Further legal proceedings are outstanding against both VW and former executives as individuals.

For Bosch, the fine closes legal proceedings against the company over dieselgate.

While prosecutors are still probing whether employees were involved in criminal actions, authorities believe "the initiative for the integration and form of the illegal strategies both came from employees at the car manufacturers" rather than suppliers like Bosch.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: May 23 2019 | 3:46 PM IST

Next Story