Germany’s Continental AG has reached a deal with former managers that will see their insurance pay damages between 40 million and 50 million euros ($46.7 million-$58.3 million) in connection with the diesel scandal, reported the Handelsblatt newspaper on Tuesday.
The deal with insurers, subject to shareholder approval, covers only some of the total damages of 300 million euros, according to Handelsblatt. (Editor’s note: Continental AG is a global manufacturer of tires and a major supplier of automotive components).
A Continental spokesperson said in a statement that, in principle, the supervisory board is obligated to look into possible claims for damages if there are indications of breach of duty by executive board members.
Read more: Volkswagen Loses Top Court Case Over Diesel Deal With Ex-CEO
“Please understand that we do not comment on further details,” added the spokesperson.
In April 2024, Continental paid a fine of 100 million euros to settle investigations by a public prosecutor’s office that has since been concluded.
The Dieselgate scandal rocked Germany’s automotive industry in 2015 when it emerged that cars had been fitted with illegal software to cheat environmental emissions tests.
Other suppliers have been fined in connection with the scandal, including ZF Friedrichshafen and Bosch, the world’s largest supplier of car parts.
Fines against Volkswagen, where the manipulations were first uncovered, amounted to 1 billion euros.
($1 = 0.8573 euros)
(Reporting by Christina Amann; writing by Miranda Murray; editing by Ludwig Burger; editing by Ludwig Burger)
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