Its likely that insolvent German auto parts supplier Edscha will be sold in an auction to various investors in two to four months' time, its court-appointed administrator said in an interview with a German newspaper.
Joerg Nerlich said he expects the sale of Edscha's cabriolet activities in the next two months and the car body business in about four months, the Rheinische Post reported Saturday.
Since filing for insolvency in February, Edscha has received a much-needed lift in its home market from Germany's scrapping incentives.
"There definitely was a (production) boost in Germany," company spokesman Michael Geske said.
Although comparative figures were not available, Geske said the convertible roof and door hinge supplier was doing better in Germany than at the end of 2008 when its global business suffered a 30 percent decline in orders.
He did not know how hard the company's German operations where hit in the final half of last year.
German new-car sales have risen sharply since late January, which is when the country started offering car buyers 2,500 euros for scrapping cars more than 9 years old and replacing them with a new, more fuel-efficient models.
In March, German new-car sales rose 39.9 percent to 400,965. First-quarter sales were up 18.0 percent to 868,090, according to the European car manufacturers association, ACEA.
Limited job cuts
The supplier put its European operations into insolvency on Feb. 2 after a steep drop in revenues because of the economic downturn.
It continues to supply its customers and its North American and Asian operations were not affected by the insolvency.
As part of its restructuring, the company will cut 90 jobs out of 2,300 in Germany. Because of the company's healthy order book, no production jobs in Germany will be in cut. Instead, the 90 non-production jobs will be eliminated from Edscha's headquarters in Remscheid and its convertible roof unit in Hengersberg.
Without being more specific, the company warned that it must still cut jobs and work hours in Europe. The company employs 1,900 at sites in the U.K., France, Spain, Portugal, Italy, Slovakia and the Czech Republic. It employs about 6,000 people at 29 factories worldwide.
Nerlich is negotiating with "several" potential investors, the company said.
Edscha was bought by the Carlyle Group, a U.S. private-equity firm, at the end of 2002. The supplier has sales of about 1 billion euros.
BMW, Audi and Daimler's Mercedes-Benz and Smart are key customers.