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William Maley

VW News: As the Diesel Emits: Lawsuit Alleges Bosch Wanted Protection From Volkswagen Defeat Device

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If there is one thing we have learned during the Volkswagen diesel emission scandal, it is this: Just when you think you have everything figured out, there is always a surprise waiting around the corner to add a new twist. 

Bloomberg reports that Bosch allegedly asked Volkswagen for legal protection over damages from the defeat device it helped developed. This allegation comes from a revised lawsuit filed by Volkswagen owners in the U.S. against the two companies. The filing says this request was in a letter sent to Volkswagen June 2, 2008.

“Plaintiffs do not have a full record of what unfolded in response to Bosch’s June 2, 2008, letter. However, it is indisputable that Bosch continued to develop and sell to Volkswagen hundreds of thousands of the defeat devices for U.S. vehicles” even after it acknowledged in writing that the use of software as a “defeat device” was illegal in the U.S. according to the filing.

 

“Volkswagen apparently refused to indemnify Bosch, but Bosch nevertheless continued to develop the so-called ‘akustikfunktion’ (the code name used for the defeat device) for Volkswagen for another seven years,” the filing goes on to say.

 

In the original suit filed last month, it alleged Bosch played a key role in conspiring with VW on developing the defeat device and concealing information about it when U.S. regulators started asking questions. At the time, Bosch rejected the claims as “wild and unfounded”. What changed within a month? Lawyers representing the owners uncovered more information.

Bosch spokesman Rene Ziegler declined to comment on this story to Bloomberg.

Source: Bloomberg


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Ouch, I would short Bosch stock, as this will hurt their earnings.

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