Faulty Audi airbags could cost Continental a double-digit million euro amount to fix

Article by Christian A., on November 3, 2014

Continental would have to shell out up to a double-digit million euro amount to fix a defect on its airbags fitted on Audi A4 models. The German carmaker announced in October that it has issued a callback of 850,000 cars globally due to potentially defective software may cause the airbags on the model to fail to deploy.

Continental chief executive Elmar Degenhart has confirmed that his company was the supplier of the system. He said that they have yet to determine what company was to be blamed for the fault. He added that both Audi and Continental are still trying to find out the root of the defect.

Should Continental be faulted for the issue, Degenhart did not give a specific figure for how much a recall could cost the supplier, but placed it between “zero and a double-digit million amount." Degenhart said it was common practice at suppliers and carmakers to allocate funds to pay for potential recalls.

He noted that even if Continental would be found at fault for causing the defect, the cost of the recall would not be enough to change its earnings guidance. Continental updated its full-year profit margin forecast to reflect an increase.

Topics: audi, airbag, continental

If you liked the article, share on:

Comments

Recommended

Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries