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

We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 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