Dieselgate probe: Continental ends relationship with CFO Schäfer

During an extraordinary meeting held yesterday, the Continental AG Supervisory Board agreed to mutually terminate Wolfgang Schäfer’s appointment as chief financial officer and member of the company’s Executive Board, effective immediately. Continental states that Schäfer’s departure from the company is linked to investigations by the public prosecutor’s office in Hannover, Germany, into the use of illegal defeat devices in diesel engines and shortcomings from Continental’s side in the ongoing investigations.

Shares in Continental AG dropped 6.2 per cent following the announcement, to 103.32 euros, but later partially recovered their value. As of 9am (CET) today, shares were trading at 104.5 euros, compared with a pre-announcement value of 110.16 euros.

Schäfer was responsible for Group Finance and Controlling, Group Information Technology as well as Group Compliance, Law and Intellectual Property. His Executive Board responsibilities have been assumed by Nikolai Setzer. Until a successor is appointed, Katja Dürrfeld, currently head of Finance, Controlling and Information Technology for the ContiTech business area, is in charge of Group Finance and Controlling as well as Group Information Technology in the interim, and in this capacity reports to Setzer.

Zero tolerance for suspicious activity

“We are investigating the case rigorously and thoroughly and are cooperating unconditionally with the Hannover public prosecutor’s office. In accordance with our philosophy of zero tolerance, we investigate any suspicious activity,” said Wolfgang Reitzle, Continental’s Supervisory Board chairman, following yesterday’s meeting.

“Integrity is an integral part of our corporate culture and is anchored in our code of conduct, which applies worldwide and to all Continental companies. After all, we win by fair means,” added Setzer. He continued: “Effectively immediately, I will be directly responsible for Group Compliance and Group Law and Intellectual Property. These functions will be appointed new heads under the Executive Board.”

Continental sites raided last year

Suspicion of fraud and indirect false certification between 2006 and 2015 led to the public prosecutor and police searching Continental sites in the German cities of Hannover, Frankfurt and Regensburg on 1 July 2020.

In its coverage of events, German business publication Manager Magazin reported that the public prosecutor suspects the involvement of former and current employees of the VDO business that Continental acquired from Siemens in 2007. The publication explains that they allegedly accepted instructions for the engine management unit used in the 1.6-litre version of the EA189 diesel engine with the knowledge that VW wanted to pursue fraudulent intentions with it.

11 years as Conti CFO

Wolfgang Schäfer was appointed Continental’s chief financial officer on 1 January 2010. In March 2019, his appointment was extended until December 2024. Born in Hagen, Germany, in 1959, the business administration graduate’s first professional positions were in consulting as well as in finance and controlling. From 1995 onward, Schäfer worked as chief financial officer for various companies before taking up his position at Continental in 2010.