Vitesco to pay 125 mln euros to Continental in dieselgate settlement (updated)

Schaeffler AG

26/09/2024 13:58

(Adds details on guidance, settlement, background)
       Sept 26 (Reuters) - 
    Germany's Vitesco Technologies  VTSCn.DE  will pay former
parent Continental  CONG.DE  125 million euros ($139.34 million)
as part of an agreement reached over the diesel manipulation
probe, causing the powertrain provider to lower its full-year
guidance. 
        As part of its spin-off in 2021, Vitesco agreed to
assume all liabilities attributable to the former Conti drive
division, which had delivered over 12 million engine control
units with which exhaust emission values were manipulated. 
  
        The costs and liabilities from the investigations are
made up of the fines imposed by the public prosecutor's offices
in Hanover and Frankfurt and the costs of clarifying the facts
of the case, the companies said. 
  
        In April, Continental paid a fine of 100 million euros
to settle the investigation, which has since been concluded.
According to media reports, Continental spent a further 150
million euros on investigating the scandal.
  
    As a result, Vitesco on Thursday revised its full-year
guidance, excluding integration costs associated with the
Schaeffler merger, and now forecasts negative free cash flow of
around 525 million euros, from negative 400 million previously. 
        The German company said guidance for all other 2024
financial key performance indicators remain unchanged.
  
        On Oct. 1, Vitesco will merge with Schaeffler
 SHA_p.DE . 

    ($1 = 0.8964 euros)
  

 (Reporting by Marleen Kaesebier, editing by Friederike Heine
and Miranda Murray)
 ((Marleen.Kaesebier@thomsonreuters.com;))