Continental has said that it is the supplier of faulty airbags that are the subject of an 850,000-unit global recall by Audi.

The Audi recall is due to potentially faulty software that may prevent airbags on its A4 model from deploying.

Continental's Chief Executive Elmar Degenhart has told journalists that Continental is the supplier to Audi and that both companies are looking into the problem and how it has arisen.

Degenhart also reportedly said that should Continental be held wholly responsible for the fault, it's earnings guidance for this year would nevertheless not be impacted

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