Continental parts company with finance chief amid ‘Dieselgate’ probe

German car parts supplier Continental has parted company with its chief financial officer with immediate effect after becoming aware of “shortcomings” in an internal investigation relating to the 2015 diesel emissions scandal.

Wolfgang Schäfer, who had been in his role since 2010 and was also responsible for the group’s compliance, law and intellectual property division, agreed with the Hanover-based company’s supervisory board on a “mutual termination” following an extraordinary meeting on Wednesday.

The company said the move was linked to an investigation by the Hanover public prosecutor’s office, which is probing whether Continental employees played any role in installing so-called defeat devices in Volkswagen’s 1.6 litre diesel engines. These were equipped with Continental-made control units.

The group has been running an internal investigation since soon after the scandal came to light, which involved the divisions overseen by Schäfer. When contacted by the FT, he declined to comment on his departure.

A number of Continental and VW sites have been searched over the past couple of years in connection with the prosecutor’s investigation. The searches were in relation to the actions of dozens of current and former Continental staff members, the prosecutor said at the time.

While VW has paid out more than €32bn in fines and legal fees over ‘Dieselgate’, and fellow car parts supplier Bosch has paid out hundreds of millions of euros to end related probes, Continental has so far avoided similar settlements.

Germany’s largest-listed car parts maker has always maintained that it did not develop or deliver software designed to manipulate emissions tests.

After announcing Schäfer’s abrupt departure, Continental declined to elaborate on what shortcomings were found in the internal investigation.

“We are investigating the case rigorously and thoroughly and are co-operating unconditionally with the Hanover public prosecutor’s office,” chair Wolfgang Reitzle said in a statement.

He added: “In accordance with our philosophy of zero tolerance, we investigate any suspicious activity.”

Schäfer, who trained at Bosch and joined Continental from auto supplier Behr, had his contract extended by five years in March 2019.

Chief executive Nikolai Setzer, who replaced longstanding Continental boss Elmar Degenhart after he prematurely withdrew from his contract last November citing a health condition, would assume Schäfer’s responsibilities, the company said.

Setzer, who used to head the group’s tyres business, said: “Integrity is an integral part of our corporate culture and is anchored in our code of conduct, which applies worldwide and to all Continental companies. After all, we win by fair means.”

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