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September 14, 2015 02:00 AM

Conti dismisses China sales managers over corruption charge

Crain News Service
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    By Shahrzad Pourriahi, Crain News Service

    LONDON (Sept. 14, 2015) — Continental A.G. has dismissed a number of sales management team members at its China tire business due to allegations of “financial corruption,” the German company has confirmed.

    “There has been a compliance violation, which is an ‘internal occasion' and in the context of its internal investigations, Continental has responded quickly and dismissed several employees including management staff,” Conti said in written response to queries from European Rubber Journal, a London-based sister publication of Tire Business.

    German daily Handelsblatt reported on Sept. 10 that a number of managers at Continental's China unit had been involved in the financial corruption case, adding that “the entire sales management team” had been dismissed as a result.

    “This goes on to show that behind the term ‘zero tolerance policy' at Continental there is a clearly defined concept, complete with the appropriate rules, and that in such cases these rules are strictly and systematically imposed.

    “Based on our knowledge, as of today, the financial effect of this action can be classified as rather manageable,” Conti added.

    The tire maker did not disclose how many employees were dismissed nor their identities.

    Shahrzad Pourriahi is a reporter for European Rubber Journal, a London-based sister publication of Tire Business.

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