Feb. 1 (UPI) -- Volkswagen announced Wednesday it reached an agreement to pay $1.2 billion to owners of diesel vehicles the same day German electronics company Bosch agreed to compensate vehicle owners for the VW emissions scandal.
Volkswagen on Wednesday so it would compensate vehicle owners and in some cases buy back vehicles. The settlement could balloon to $4 billion if a fix for the vehicles isn't approved by regulators.
Meanwhile, the Robert Bosch GmbH company announced a $327.5 million settlement for U.S. owners of two-liter diesel-powered Volkswagens and Audis and three-liter Volkswagens, Audis and Porsches, to settle claims the company helped devise the software Volkswagen used to defeat emissions tests. The payments are independent of settlements Volkswagen has arranged, which could cost up to $20 billion globally.
Lawsuits accused Bosch of modifying car software so that emissions equipment would only function properly while vehicles were being tested to learn if they complied with emissions laws. The litigation said Volkswagen did not have the capability of writing software needed to engage in the deception, and relied on Bosch, which supplied each engine's computer.
The Bosch cases are being heard in San Francisco, and the settlement still requires the approval of a federal judge.