Continental has announced the recent massive recall of Audi A4s due to airbag issues will not affect the company’s financial stability. Several days ago we report that Audi will have no other way but to recall no less than 850,000 units of the A4 due to a software glitch of the airbag system which could prevent it to deploy in the event of a crash. Initially it was believed the airbags were made by Japanese supplier Takata but in reality Continental made them.
Continental has issued a press release saying that repairing the faulty airbags will a cost double-digit million euro amount to repair, but even so they will be able to absorb the costs without having to reverse its earnings guidance. At the moment it’s not clear if Audi or Continental is to blame for this fault and both of them are at the moment analyzing to find out what went wrong.
Continental CEO Elmar Degenhart spoke to journalists in Munich last night and said that “Even if we were found to be fully responsible we would not have to change our earnings guidance.”
It should be mentioned that back in July, Continental increased its full-year profit margin forecast which was actually the second time in just five months.