Insolvent German auto supplier Edscha has gotten "two fairly large contracts" from Daimler and Volkswagen, the company's interim insolvency administrator says.
Both contracts are "in the body area," the administrator, Joerg Nerlich, told Automotive News Europe sister publication Automobilwoche.
He declined to disclose the size of the contracts or other details.
On Saturday, Nerlich said its likely that Edscha will be sold in an auction to various investors in two to four months' time. The comments were reported in the Rheinische Post. He added that he expects the sale of Edscha's cabriolet activities in the next two months and the car body business in about four months.
The supplier might make a deal for its convertible business more quickly than for its body operations, Nerlich said. Potential investors have expressed interest in both areas, he added.
Because the body business is more complex and has numerous products and customers, Nerlich said, "It takes longer for investors to get an overview."
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.
Job loses in Germany
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.
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.