German prosecutors investigate Continental subsidiary

In addition to making tyres, Continental subsidiaries engage in various, mostly automotive activities, including ContiTech’s production of air conditioning hoses. Last year it transpired that ContiTech hadn’t fully complied with testing norms and standards at its Korbach plant in Germany, an issue affecting up to 2,000 different types of hoses. In September 2022 the company announced the suspension of their sale and delivery “until full compliance with test processes is ensured,” but someone allegedly decided to address the problem by systematically manipulating test results instead. An internal investigation uncovered this potential fraud and authorities are now on the case.

German financial daily Handelsblatt reports that the Public Prosecutor’s office (Staatsanwaltschaft) in Frankfurt am Main has launched an investigation into suspected fraud concerning the quality of air conditioning components. The Public Prosecutor’s office in Stuttgart is also investigating potential deception of customers. A spokesperson for the authorities confirmed to Handelsblatt that it has initiated proceedings in response to accusations of the alleged manufacture and sale of air conditioning hoses of a quality differing from that contractually agreed upon.

The spokesperson added that ContiTech itself triggered the investigation, contacting law enforcement authorities and reporting the irregularities. The company is fully cooperating with the authorities, Handelsblatt notes. The Public Prosecutor’s office is currently focusing on one suspect but may expand the investigation to include others. It is also examining the option of commencing fine proceedings against ContiTech.

ContiTech’s customer base includes major German vehicle manufacturers such as Volkswagen, BMW, and Mercedes-Benz, as well as international car makers.