Continental shares contain losses: Public prosecutor’s office investigates Conti due to quality problems – suspected fraud

The Frankfurt public prosecutor’s office is investigating quality problems at Continental.

When asked on Wednesday, a spokesman for the authority said it was investigating suspected fraud. According to the information, it is about quality problems with hoses that were noticed in 2022. The “Handelsblatt” had previously reported. A Continental spokesman said it was cooperating fully with the authorities.

The company pointed out that it discovered the defects itself and reported them to the authorities. “We have continually drawn organizational and personnel consequences from the ongoing findings of our investigation,” said the spokesman. An agreement has also been reached with buyers of the defective hoses.

The background is quality problems with hoses for air conditioning systems from the Contitech division. According to the report, the public prosecutor’s investigation is based on allegations that Continental may have cheated its customers by delivering hoses that did not meet the agreed quality. The spokesman for the public prosecutor’s office said that no further information could be provided at this time.

The supplier admitted in September 2022 that it had supplied its customers in the automotive industry with contaminated air conditioning hoses for a long time. It was already said back then that an employee may have manipulated the internal quality tests in order to cover up the defects.

This was noticed during internal investigations after there were tips from the workforce. According to the information, the delivery of the defective hoses was stopped at the time. According to Conti, it was purely a precautionary measure. There was no danger to vehicle occupants, traffic safety or the environment.

Via

FRANKFURT/HANOVER (dpa-AFX)

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