Continental detects hose testing errors and stops related sales

Continental detects hose testing errors and stops related sales

BERLIN (Reuters) – German tire and auto parts maker Continental on Monday reported deficiencies in testing for industrial hoses at its Conti-Tech site in Korbach, in the state of Hessen.

Continental said there were no indications of any irregularities in the hoses currently in use by customers, but added that it had suspended sales and delivery of the affected hoses until full compliance with the testing processes was ensured.

Continental said all customers involved and the responsible authorities have been informed.

“We did not meet the requirements in our ContiTech division in the production of hoses and lines,” CEO Nikolai Setzer said Monday.

Continental has been reviewing its quality standards for all types of hoses in its ContiTech division since February 2022, when irregularities in internal automobile air conditioning lines were identified.

The DAX listed company has pledged to hire an independent auditor to examine the issue.

โ€œOur customersโ€™ trust in us and our products is the indispensable foundation of our business,โ€ Setzer said, adding that the goal now is to restore trust.

Last year, the production of hoses at Korbach, where deficiencies were discovered, contributed to the group’s sales of 1 million euros in double figures.

Continental said Friday it had renewed its compliance team, including making changes to personnel and technology, after discovering that some parts of the car’s air conditioning systems had fallen short of expected quality standards.

Previously, Spiegel magazine reported that the company had supplied its customers with dirty air conditioning parts for 15 years and that quality control tests had been tampered with to mask the problem.

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A company spokesperson did not directly respond to the alleged test tampering, but said the problem did not pose any danger to the vehicle’s occupants.

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