Conti accepts €100m dieselgate fine
The public prosecutor’s office in Hanover has issued a fine totalling €100 million against Continental AG and individual subsidiaries. It arises from so-called ‘dieselgate’ emissions rigging activity and investigations in Germany. It was a huge scandal that eventually embroiled Volkswagen Group in lawsuits across the world and implicated a number of its suppliers.
Continental says it has accepted the decision and will not appeal.
Conti said the fine relates to a ‘negligent breach of supervisory duties in connection with the supply of engine control units and engine control unit software (including for the VW EA189 1.6l)’.
It consists of a penalty portion totalling €5 million and a levy of economic benefits totalling €95 million.
The proceedings relate to the business activities of Continental’s former powertrain division, which was spun off to form Vitesco Technologies in 2021.
Olaf Schick, Executive Board member for Integrity and Law said: “It is important and in our own interests that we draw a line under the fine proceedings. We have made the topic of integrity our top priority, creating a new organizational structure and mandating intensive training for our employees. We are committed to this process and will continue to invest in the integrity of the company.”
Continental has been cooperating fully with the public prosecutor’s office, including regularly sharing the results of its own investigation with the authorities.
The fine will not lead to any significant additional impact on earnings in fiscal 2024 due to a provision set aside for this purpose in previous years.
On the basis of and in accordance with existing contractual provisions, Vitesco Technologies is in this respect generally obligated to indemnify Continental against the ensuing costs and liabilities.
This follows the principle that all opportunities as well as risks from the transferred business passed to Vitesco Technologies as part of its spin-off.
