Continental AG ( OTCPK:CTTAF ) stock slid sharply on Wednesday after a public prosecutor in Frankfurt expanded the scope of inquiries into fraud by senior people at the car parts provider.
According to German newspaper WirtschaftsWoche , the investigation has just recently extended to three individuals "who formerly held senior positions in the management of the Continental Group” on suspicions of fraud.
The investigation into the company executives pertains to its sale of engine control devices to Stellantis ( STLA ) that were then passed on to Mitsubishi ( OTC:MTSUY ). These engines were identified by regulators as responsible for diesel emissions fraud. The issues of diesel engines has been a sore spot for German manufacturers since the widespread attention to Volkswagen’s (VKLWAF) dieselgate scandal .
Shares of the German manufacturer fell 2.3% shortly after Monday’s market open, adding to an over 50% decline over the past year for the stock.
Dig into the longer term trend for the stock .
For further details see:
Continental AG shares slip as fraud investigation intensifies