MUNICH -- German engineering company Edscha has filed for insolvency, a company spokeswoman said Monday.
Edscha makes convertible roofs, hinge systems and driver controls for most major carmakers. It is owned by U.S. private equity company Carlyle Group.
"The company filed for insolvency because of a slump in sales," said Christina Clemens, Edscha spokeswoman.
Edscha's revenues have fallen steeply during the global financial crisis.
Clemens said the insolvency affected only the supplier's European operations.
Clemens said that no insolvency application had been filed for the companies in Asia and in America and that Edscha's daily business is set to continue.
"Our aim is to keep supplying all of our customers," said the spokeswoman.
Edscha has sales of about 1 billion euros. It employs about 6,000 people at 29 factories worldwide.
Edscha is the first major German auto parts supplier owned by private-equity to have to reorganize under an administrator due to the global industry crisis.
Edscha, which was established in 1870, was bought by Carlyle Group at the end of 2002.
Edscha said debts incurred by the Carlyle buyout "was not responsible" for the insolvency filing since the company finished its fiscal year 2007-2008 to end June with record revenue of 1.08 billion euros ($1.38 billion) and an outlook favorable for new business.
Instead, a massive slump in car sales has forced virtually every carmaker and supplier to lower their profit forecasts, cut jobs, reduce working time or suffer losses.
A spokesman for BMW said Edscha was an important supplier of roofing systems for the Z4 roadster, 3 Series and 6 Series cabriolets as well as the Rolls-Royce Phantom Drophead Coupe models. It also makes door hinges for practically all of the group's vehicles.
"We always try to help out our suppliers when possible, but in the case of Edscha, the volume of funds required were in a dimension where we simply could not assist," he said.
Reuters contributed to this report