Vitesco Technologies To Recognize 80 Mln Euros Provision In Q4

(RTTNews) - Vitesco Technologies Group AG Monday announced it will recognize a provision in the fourth quarter in the amount of 80 million euros in connection with possible compensation obligations from the group separation agreement with Continental AG.

This will have a corresponding negative impact on the consolidated results of Vitesco Technologies.

Pursuant to the agreements between Vitesco Technologies and Continental AG in the course of the spin-off, Vitesco Technologies is obliged to indemnify companies of the Continental group against expenses and liabilities attributable to the businesses transferred to Vitesco Technologies. This may include, among other things, potential fines and other costs, in particular legal fees.

Based on its assessment of the current status of the investigations conducted by the public prosecutor's offices in Hanover and Frankfurt am Main against Continental AG in connection with the alleged use of illegal defeat devices in diesel engines and an assessment of the costs incurred so far in this regard, the Executive Board of Vitesco Technologies Group AG expects it to be increasingly probable that Continental AG will assert claims against the company under the existing indemnification agreement.