29. Current Provisions

Provisions are recognized if a liability to a third party arises from a past event which is expected to lead to an outflow of assets and the amount can be reliably measured. They represent uncertain liabilities that are recognized in the amount of the best estimate. The amount of the provision also includes the expected cost increases.

The allocations for insurance costs primarily resulted from obligations with respect to the liability loss compensation fund of German metropolitan areas.

The provisions for onerous contracts were allocated to the AUTOMOBILE Division in the amount of EUR 16,448 thousand and to the CONTRACT Division in the amount of EUR 3,101 thousand. The provisions related to contracts with customers for which the estimated costs are not expected to be covered by the agreed revenue. The level of risk from onerous contracts may increase significantly as a result of changes in circumstances over time. Based on our current estimation, a risk of this kind should be viewed as low.

Miscellaneous other provisions include other operating taxes of EUR 433 thousand (previous year: EUR 255 thousand). In addition, miscellaneous other provisions include EUR 3,480 thousand (previous year: EUR 0 thousand) for risks arising from ongoing legal proceedings with an employee from an external recruitment agency, EUR 2,881 thousand (previous year: EUR 3,000 thousand) for risks in connection with the heat treatment of vehicles, EUR 1,771 thousand (previous year: EUR 537 thousand) for risks arising from cyber attacks, and EUR 1,000 thousand (previous year: EUR 0 thousand) for risks arising from the participation in financing the insolvency social plan of an external recruitment agency.