Auto parts supplier Continental agrees to pay €100m in diesel scandal

The logo of Continental AG pictured in front of the automotive supplier's headquarters. Prosecutors in Germany have imposed a fine of €100 million ($107 million) on automotive supplier Continental in connection with the major diesel engine emissions manipulation scandal that rocked Germany's automotive industry. Moritz Frankenberg/dpa

Prosecutors in Germany have imposed a fine of €100 million ($107 million) on automotive supplier Continental in connection with the major diesel engine emissions manipulation scandal that rocked Germany's automotive industry.

Continental and other corporations have faced proceedings for negligent breach of supervisory duties from prosecutors in Hanover, where Continental is based.

The diesel cheating scandal broke publicly in 2015, when regulators in the United States discovered that some Volkswagen diesel vehicles had been intentionally programmed to run cleaner during emissions testing than during actual road travel.

Several automotive suppliers have also faced fines and proceedings for their alleged roles in the scandal.

Volkswagen, the company at the centre of the scandal, faced a fine of €1 billion, while VW subsidiary Audi paided €800 million and sportscar maker Porsche was fined €535 million.

Mercedes-Benz was also ordered to pay €870 million in the wake of the scandal.

According to the investigators, Continental's former drive division supplied more than 12 million engine control units or engine software to domestic and foreign car manufacturers from mid-2007, including to Volkswagen for its EA 189 diesel engine.

Prosecutors have alleged that the software supplied by Continental contained at least partially unauthorized code designed to evade emissions testing.

Continental on Thursday said that it would accept the fine and waive its right to appeal, adding that concluding the proceedings are in the best interest of the company.

According to the public prosecutor's office, payment is to be made within six weeks to the state of Lower Saxony, where the court and Continental are based.

The company's co-operation was taken into account when determining the amount of the fine, which will end proceedings against the company, according to the court.

Prosecutors emphasized, however, that the criminal investigations against former Continental employees would not be affected by the agreement.