The auto supplier Continental can only partially pass on the fines and legal costs for its involvement in the VW diesel scandal to its former subsidiary Vitesco. The Regensburg-based drive specialist Vitesco, which was responsible for the engine control devices with which the emissions levels on diesel cars were manipulated, will pay Continental 125 million euros in the current quarter, as the two companies announced on Thursday.
Continental with CEO Nikolai Setzer (53) paid a fine of 100 million euros in April to settle the investigations against the company in Hanover. Proceedings by the Frankfurt public prosecutor’s office have now also been concluded. According to media reports, Continental spent another around 150 million euros to clear up the scandal.
Actually, Vitesco should bear all costs
According to the separation agreement before the spin-off, Vitesco was actually supposed to bear all costs and obligations arising from the scandal. A Conti spokesman did not want to say how and why the costs were now divided. The communication speaks of an “appropriate distribution”. Continental had set aside a high double-digit million amount for this.
The payment to Conti is debited integration into the automotive supplier Schaeffler standing Vitesco: The company with CEO Andreas Wolf (64) now expects a cash outflow of 525 million euros from operating business (free cash flow) for the current year, which is 125 million more than previously thought. In 2023, the cash flow was still positive at 85 million euros. In the summer, the two automotive suppliers Vitesco and Schaeffler had a problem due to the weak economic situation in the industry lowered their annual forecasts.