posted by SooYeon(Pia),ShinOn Feb. 2, Edscha, which is a German engineering company, filed for insolvency. Edscha is known for making an automobile convertible roof systems, hinge systems, and driver controls for most major carmakers, including BMW and Rolls-Royce Phantom. One of the company’s productions is the folding hardtop for the BMW 3 Series. Edscha was established in 1870 and owned by U.S. private equity company Carlyle Group since the end of 2002. Edscha has 29 factories in worldwide and employs about 6,000 people. Also, the company has had sales of about 1 billion euros.
The main reason of the insolvency of Edscha is basically the downturn of worldwide economy and automobile industry. The company suffered with a collapse in the worldwide automobile market since last year. So, a big slump in car sales has made every carmaker and suppliers to cut jobs and lower their profit forecasts. For example, Honda Motor Co was forced to cut its profit forecast for the fourth time this year by the automotive industry; and, Toyota expects “a greater-than-expected loss. However, the debt incurred when Carlyle buyout “was not responsible” for the insolvency of the company. It is because Edscha recorded its revenue of $1.08 billion euros ($1.38 billion) at its fiscal year 2007-2008 to end June. Nonetheless, Edscha said it will continue to operate business and “has affected only the supplier’s European operations.”
http://www.autonews.com/article/20090202/COPY01/302029768/1193
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/02/AR2009020203027.html
http://www.canadiandriver.com/2009/02/02/german-convertible-roof-maker-files-for-bankruptcy.htm
http://www.guardian.co.uk/business/feedarticle/8338907
No comments:
Post a Comment