HAMBURG — German prosecutors have widened their investigation at Continental To inagency probes of former CEO Elmar Degenhart and finance chief Wolfgang Schaefer, whose shock departure was introduced late on Wednesday.
The primary goal of the investigation is suspected accent to fraud, breach of notion and a failure to fulfil supervisory duties, the Hanover prosecutor’s office said on Thursday.
The people beneath investigation additionally embrace a former board member of Continental’s Powertrain unit, it said, with out naming the particular person.
Prosecutors seized paperwork at Continental on Thursday, the day after the supplier said It’d substitute Schaefer as its chief monetary officer.
Continental’s premises in Hanover and Regensburg, each in Germany, have been searched final yr as An factor of a probe into Volkswagen Group’s emissions dishonest models.
Prosecutors are investigating the supplier’s position in supplying engine factors for a 1.6-liter VW diesel engine that breached emissions limits and masked extreme air pollution using illegal Computer software. The engine-administration Computer software for The primary 2.0-liter engine On The center of the VW scandal — which was additionally used Inside the U.S. — acquired here from Continental’s rival Robert Bosch.
Requested whether or not there was a connection between the search at Continental and its transfer to dismiss Schaefer, a prosecutor said: “I assume so.”
Continental said on Wednesday that CEO Nikolai Setzer would take over Schaefer’s duties.
“These modifications have been taken Inside the context of the already acknowledged investigations by The general public prosecutor’s office in Hanover, relating to the illegal use of defeat models in diesel engines and shortcomings Inside The continued investigation by Continental,” the supplier said in A press launch on Wednesday.
“Continental is investigating the case rigorously and utterly and is cooperating unconditionally with The general public prosecutor’s office,” it added.
Greater nice
Schaefer’s dismissal Might be An indication prosecutors are getting ready A a lot bigger nice than he braced administration for earlier than his departure.
“Whereas the investigations are properly-acknowledged, the termination of the CFO’s appointment creates uncertainty And might Most probably weigh on the share worth,” Jefferies analyst Sascha Gommel said in a report.
Schaefer was appointed Continental’s chief monetary officer in 2010. In 2019, his appointment was prolonged till 2024.
Continental is the world’s sixth-largest automotive supplier on Automotive Information’ prime worldwide suppliers rating, with 2020 gross sales to automakers of $29.68 billion.
The shake-up at Continental is simply The latest event of fallout Greater than six yrs into VW’s diesel-emissions scandal.
Earlier this week, the U.S. Supreme Courtroom rejected appeals from The agency and left intact rulings That permit state And native governments sue over its engine tampering. The scandal has value VW Greater than 30 billion euros.
Bloomberg contributed to this report