Continental fined $107M over role in diesel-emissions scam

Continental was fined €100 million ($107 million) for failing to prevent its staff from participating in the diesel-emissions fraud as the supplier works through a range of governance issues.

Prosecutors issued the fine over the company’s participation in the scam via selling more than 12 million engine control units that automakers, including Volkswagen Group, used to manipulate emissions.

The software implemented, at least in part, contained illegal strategies, the agency said Thursday.

“The illicit software in the end caused the vehicles equipped with them to emit more nitrogen oxides during normal driving than was permissible under the regulatory requirements,” Hanover prosecutors said.

Continental said it accepted the fine after “intensive talks” with Hanover prosecutors and decided not to challenge the order. The fine does not lead to any significant burden on earnings due to a provision made in previous years, Continental said.

The company only negligently violated its duties and cooperated extensively with the probe, Hanover prosecutors said.

The fine includes the seizure of €95 million in profits the company made by selling the components.

The criminal probe against roughly 40 individuals linked to Continental will continue in Hanover with the investigation part of a series of scandals and issues to embroil Continental in recent years.

Earlier this year, the supplier was hit by European Union antitrust raids over a suspected plot on price fixing. It has also suffered a hacking attack and quality control issues with its industrial and automotive hoses.

Last year, Continental appointed a management board member for risk, compliance and internal audits.

Continental ranks No. 9 on the Automotive News list of top 100 global suppliers, with automotive sales of $25.4 billion in 2022.