Saturday, April 13, 2024

Provision of EUR 80 million: Vitesco expects burden due to emissions scandal

Hida Winkle is a tech blogger from Ohio with a degree in mass communication and a gift for writing. She is the editor-in-chief of Hida’s favorite subjects are technology and building art. She is also a huge fan of Anime and Manga.

After its spin-off from the Continental Corporation, the automotive supplier Vitesco is caught up in its possible involvement in the diesel scandal. Due to possible compensation obligations towards the former parent company, the Vitesco management is planning a provision of 80 million euros in the fourth quarter, as the company announced. This will have a corresponding impact on Vitesco’s consolidated result.

The Vitesco Board of Management considers it “increasingly likely” that Conti will take recourse against its former subsidiary in connection with the diesel scandal. The management refers to preliminary proceedings of the public prosecutor’s offices in Hanover and Frankfurt. It deals with the accusation of the use of illegal defeat devices in diesel engines.

Former Conti drive division

Vitesco is the former powertrain division of the Continental Corporation. It has been an independent listed company since mid-September. In the course of the spin-off, both companies had agreed that Vitesco must indemnify the Continental Corporation from costs and liabilities attributable to the business units transferred to Vitesco. This could also include fines and legal advice costs, it said. (dpa-AFX/gem)

Also read:

Exhaust gas scandal: Public prosecutor’s office expands investigations against ex-Conti manager

Investors in Conti and Vitesco are concerned

Emissions scandal: Continental separates from CFO Schäfer

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