Continental fined 100 million euros in Volkswagen emissions scandal

German auto supplier Continental has reached a settlement to pay a 100-million-euro fine in connection with legal proceedings related to Volkswagen's emissions-cheating scandal. The fine stems from a 'negligent breach of supervisory duties' concerning the supply of engine control units and software by Continental.

Continental, known for manufacturing tires and providing components and software to automakers, was implicated in the 'dieselgate' scandal involving Volkswagen. Volkswagen, comprising brands like Audi, Porsche, and Seat, admitted in 2015 to using software to manipulate emissions in 11 million diesel vehicles globally.

The legal action targeted Continental's former 'powertrain' division, now operating as Vitesco since 2021. Continental has accepted the fine after discussions with prosecutors and a review, stating that it is crucial to conclude the proceedings.

The financial impact of the fine on Continental's 2024 earnings is expected to be minimal as provisions were made to cover potential penalties. Vitesco, as the successor company, will bear the responsibility for paying the fine as per the agreement during the spin-off.

Meanwhile, criminal proceedings against former Continental employees are ongoing, as confirmed by Hanover prosecutors. The 'dieselgate' scandal, considered Germany's largest post-war industrial controversy, has cost Volkswagen approximately 30 billion euros in fines, legal expenses, and compensations, primarily in the United States.

Former Volkswagen CEO Martin Winterkorn is scheduled to stand trial in September for his involvement in the scandal.