Prosecutors broaden probe into ex-Continental execs

German prosecutors said on Thursday they were widening an investigation into three former executives at the auto supplier Continental in relation to the "Dieselgate" emissions-cheating scandal.

Investigators are targeting former Continental CEO Elmar Degenhart, who left the group in 2020, citing health reasons, and Jose Avila, the former head of its engines division, a spokesman for the prosecutor's office in Hanover told AFP.

Also in their sights is group chief financial officer Wolfgang Schaefer, who was relieved of his duties by Continental on Wednesday.

His dismissal came in relation to "already known investigations" and "shortcomings" in the group's internal probe identified by the supervisory board, Continental said in a statement.

The group was "investigating the case rigorously and thoroughly and is cooperating unconditionally with the public prosecutor's office."

Prosecutors broadened their investigation to include suspicions of "complicity in fraud and breach of trust, as well as a possible intentional breach of the duty of supervision", the spokesman said.

Searches were carried out earlier in the month at Continental's compliance department and the "residence of an employee", while prosecutors "secured documents at a law firm in Frankfurt" on Wednesday.

The Dieselgate scandal erupted in 2015 when German carmaker Volkswagen admitted tampering with millions of diesel vehicles to dupe pollution tests.

Like market-leader Bosch, Continental, the world's second largest auto-parts supplier, was soon targeted by investigators. The company is suspected of supplying software used in the emissions-cheating motors.

The German group was already raided in relation to the scandal in 2020.

Continental's engine division "Powertrain", which is at the centre of suspicions, was spun off from the group under the name Vitesco Technologies earlier this year.

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