Supplier hit with $179m fine
Automotive supplier Continental has been fined €100 million (NZ$179m) for a breach of supervisory duties in connection with the “dieselgate” emissions scandal.
The public prosecutor’s officer in Hanover, Germany, issued the punishment because the company supplied engine control units and associated software that carmakers, including Volkswagen Group, used to manipulate emissions tests.
It was alleged the software implemented, at least in part, contained illegal strategies, reports Automotive New Europe.
“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,” prosecutors said.
Continental, which co-operated fully with an investigation, says it has accepted the fine after intensive discussions with the public prosecutor’s office and decided not to challenge the order.
The fine includes a penalty portion of €5m and the seizure of €95m in profits the company made.
Continental says the fine will not lead to any significant additional impact on earnings in fiscal 2024 thanks to a provision set aside for this purpose in previous years.
The company adds since the probe began it has strengthened compliance, created an independent executive board function for integrity and law, and further expanded its technical compliance system.
Olaf Schick, executive board member for integrity and law, notes: “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 organisational 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.”
Volkswagen admitted in September 2015 to cheating emissions tests on diesel engines, a scandal that has cost it more than €30 billion in regulatory fines and vehicle refits worldwide.
The company disclosed at the time it had used illegal software – or a “defeat device” – in about 11 million cars to manipulate test results. This led to legal action in a number of countries.
