Continental fined 100 million euros for role in VW emissions scandal

By David Sachs

Continental accepted a fine of 100 million euros ($107 million) from a German prosecutor's office for its role in the Volkswagen emissions-cheating scandal of 2015.

The German car-parts maker (XE:CON) said Thursday that the fine is for negligence related to the supply of engine parts, including software, used in the diesel engine at the center of Volkswagen's (XE:VOW3) emissions-cheating engines nearly a decade ago.

Continental won't appeal the decision from the Hanover prosecutor, it said, adding that the fine won't add any significant burden to its 2024 earnings because the company had previously set aside money for it.

The fine relates to Volkswagen's EA189 diesel engine, which equipped with unauthorized software designed to deceive environmental emissions tests, sending shockwaves through the auto industry and resulting in billions of dollars in fines for the German carmaker.

"It is important and in our own interests that we draw a line under the fine proceedings," Continental executive board member Olaf Schick said. "We have made the topic of integrity our top priority, creating a new organizational structure and mandating intensive training for our employees."

Continental's cooperation and strengthened compliance measures affected the fine's total, it said.

The fine relates to actions by the company's powertrain division, which was spun off in 2021 and is now Vitesco Technologies, Continental said.

Write to David Sachs at david.sachs@wsj.com

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04-25-24 0559ET

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