Prosecutors in Germany have imposed a fine of €100 million ($107 million) on automotive supplier Continental in connection with the major diesel engine emissions manipulation scandal that rocked Germany's automotive industry.
The parts maker later said it would pass on the fine to a unit spun off in 2021.
Continental and other corporations have faced proceedings for negligent breach of supervisory duties from prosecutors in Hanover, where Continental is based.
The diesel cheating scandal broke publicly in 2015, when regulators in the United States discovered that some Volkswagen diesel vehicles had been intentionally programmed to run cleaner during emissions testing than during actual road travel.
Several automotive suppliers have also faced fines and proceedings for their alleged roles in the scandal.
Volkswagen, the company at the centre of the scandal, faced a fine of €1 billion, while VW subsidiary Audi paid €800 million and sportscar maker Porsche was fined €535 million.
Mercedes-Benz was also ordered to pay €870 million in the wake of the scandal.
According to the investigators, Continental's former drive division supplied more than 12 million engine control units or engine software to domestic and foreign car manufacturers from mid-2007, including to Volkswagen for its EA 189 diesel engine.
Prosecutors have alleged that the software supplied by Continental contained at least partially unauthorized code designed to evade emissions testing.
Continental on Thursday said that it would accept the fine and waive its right to appeal, adding that concluding the proceedings are in the best interests of the company.
Continental had already recognized a provision in the high double-digit millions of euros intended to cover the risk of a possible fine, but plans to pass on the bill to subsidiary Vitesco in Regensburg, which was spun off in 2021.
Under the separation agreement, all opportunities and risks from the transferred business are to be transferred to Vitesco.
Vitesco is "fundamentally obliged to indemnify Continental against all possible costs and liabilities," the company said.
According to the public prosecutor's office, payment is to be made within six weeks to the state of Lower Saxony, where the court and Continental are based.
The company's co-operation was taken into account when determining the amount of the fine, which will end proceedings against the company, according to the court.
Prosecutors emphasized, however, that the criminal investigations against former Continental employees would not be affected by the agreement.
