The club of insolvent and close-to-bankrupt businesses in the car industry is getting crowded. Edscha, a car roofing supplier for BMW and Rolls Royce, announced it’s joining the club due to the global car industry slump. Although it’s the first major new car parts supplier in Germany to do so.

An Edscha spokeswoman said they plan to continue functioning in the car market, but about 4,200 jobs in Europe will most likely get cut. The remaining 1,600 workers in America and Asia are not affected at this time.

Edscha was established in 1870, and was bought by the American equity firm, the Carlyle Group in 2002. The car parts manufacturer has sales of 1.08 billion Euros ($1.38 billion US), and employs about 6,000 people at 29 factories worldwide.

Resources
Reuters UK, “UPDATE 1-German car parts maker Edscha files for insolvency,” 02/02/09
Automotive News, Bettina Mayer, “Edscha files for bankruptcy in Germany,” 02/02/09