The Dax supplier has already spent large sums on the processing of the diesel scandal.
(Photo: dpa)
Dusseldorf According to information from the Handelsblatt, Continental and the now independent drive division Vitesco are arguing about who has to pay which part of the damage caused by their involvement in the diesel scandal. From Vitesco’s supervisory board circles it is said that – contrary to what was last reported – there is no agreement between the companies on this. It’s not just about fines, but also about the very expensive processing by external law firms.
The criminal investigations are still ongoing, but insiders assume that a three-digit million amount can be expected for the fine alone, including the confiscation of the illegally generated profits. The competitors Bosch (90 million euros) and ZF (42.5 million euros) got off cheaper, but also cooperated comparatively well with the investigators.
At Continental, the criminal investigation is much more difficult. For a long time, the Hanover-based group tried to downplay its involvement in the manipulation of diesel engines, although there were early indications of the involvement of individual employees.
A 2016 report by the law firm Noerr stated that at least two employees at the supplier understood how the fraudulent software supplied to Volkswagen worked.
After that, the public prosecutor’s office made little progress in their investigations – apparently also because the company withheld information from them. Eventually, investigators lost patience. In 2020 and 2021, they went to Hanover and Regensburg – Vitesco’s headquarters – for several searches.
Chief Public Prosecutor Malte Rabe von Kühlewein is investigating around 60 suspects. Against six of them also because of the charge of infidelity or aiding and abetting infidelity. “Incidentally, two other victims are being investigated for violating their supervisory duties as an administrative offence,” said a spokeswoman for the authorities when asked. Apart from Volkswagen, there is no other company in the emissions scandal where the diesel investigations are of such magnitude.
250 million euros are in the room
Continental and Vitesco therefore expect high costs. In the interrogation of the head of the supervisory board, Wolfgang Reitzle, chief public prosecutor Rabe von Kühlewein had once put the amount of 250 million euros into the room. But that’s not the only problem: the companies have spent a lot of money on the legal processing of the affair. We are talking about an amount in at least the high double-digit millions, which will continue to rise.
The contract, which regulates Vitesco’s spin-off from the Continental Group, stipulates that Vitesco must take over the diesel legacy. Vitesco has also formed provisions of 80 million euros for this. Continental has also made provisions, according to Chief Financial Officer Katja Dürrfeld, in the high double-digit millions. The provisions were built up for accounting reasons. According to Continental, after a possible fine payment, Vitesco would have to transfer the amount back to Conti according to the separation agreement. “The last thing I heard from Vitesco boss Andreas Wolf is that Vitesco will stick to the group separation agreement,” said Conti CFO Dürrfeld.
The former Conti drive division does not want to issue a blank check to Conti.
(Photo: dpa)
The question, however, is how far this agreement goes. People familiar with the events report that Vitesco is by no means willing to issue a blank check. From Vitesco’s point of view, the fact that costs have gotten so out of hand is also due to mistakes for which Continental is responsible. “You can’t do it the way Continental handled it,” says an insider. The company declined to comment when asked.
A major point of contention is the cost of internal processing at Continental. After the first investigation by the Noerr law firm proved problematic, the group hired new lawyers. The choice fell on the US law firm Skadden Arps and the criminal law firm Knauer. With great effort, documents were circulated again, e-mails viewed and employees questioned. Skadden enjoys a good reputation for such tasks – but is also one of the most expensive addresses in this country.
Vitesco is said to be upset about this. One is not readily ready to settle the bill for a luxury inspection commissioned by Continental, is heard from Regensburg. Vitesco is also not convinced of the quality of the work. Therefore, the company decided to commission its own investigation by the law firm Hogan Lovells. According to reports, however, the Vitesco refurbishment is significantly leaner and cheaper than at Continental.
Proceedings against leniency witnesses dropped
Meanwhile, the public prosecutor’s office in Hanover recently reported a breakthrough in the investigation: an accused technical project manager unpacked and made significant progress in the investigation. “The proceedings against him have been temporarily suspended with the approval of the court, subject to the payment of a monetary requirement,” said a spokeswoman for the Hanover public prosecutor’s office. The public prosecutor’s office applied the leniency program in his favor, which made it possible to significantly reduce the level of sanctions. The defense attorney for the project manager did not want to comment when asked.
Now there are said to be other suspects who are also cooperating with the public prosecutor’s office – in the hope that they will be spared a lengthy criminal process.
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