German authorities search Continental, VW as part of diesel probe

Reuters

Published Jul 01, 2020 08:26AM ET

BERLIN (Reuters) - German prosecutors have extended their diesel emissions probe to include auto supplier Continental (DE:CONG) for its role in supplying engine components, searching the company's offices and those of automaker Volkswagen (DE:VOWG_p), the companies said on Wednesday.

Prosecutors in Hanover, Germany conducted the searches as part of an investigation into how a 1.6 litre diesel engine came to violate emissions rules by masking excessive pollution levels.

Premises in Hanover, Regensburg, Wolfsburg, Gifhorn, Berlin, Frankfurt und Nuernberg were searched by 76 Police and 4 prosecutors, a spokesman for the Hanover prosecutor's office said on Wednesday.

"We are investigating employees of Continental for abetting fraud and for providing false documentation," Prosecutor Oliver Eisenhauer told Reuters, adding that 7 engineers and 2 project leaders were among the accused. Two business heads and a compliance officer were also cooperating with the probe, he added.

Continental said in a statement that several of its offices had been searched, adding it was cooperating with the authorities, but declined to comment on the investigation.

A Volkswagen spokesman said the carmaker was cooperating with the probe in the capacity as a witness, given that VW has already settled with prosecutors in Braunschweig.

The Hanover prosecutor's office said the Hanover probe was an extension of the prior probes against Audi and VW.