Continental AG shares fell 5% after ending their partnership with CFO Wolfang Schaefer amid investigations into the illegal use of diesel engine fraudulent devices and some shortcomings in a Continental investigation.
The auto parts company said its supervisory board had agreed in an emergency meeting on Wednesday to end its partnership with Shaefer as chief executive officer and chief financial officer.
Continental attributed its decision to the investigations by the Hanover prosecutor’s office, regarding the illegal use of devices in diesel engines.
“Continental is investigating the case rigorously and thoroughly and is cooperating unconditionally with the prosecution,” the company said.
Analysts say that while the investigations are known, Schaefer’s removal “creates uncertainty and will affect the share price”.
The company announced that the CEO will take over Schaefer’s responsibilities.
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Source From: Capital
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