Peguform GmbH, the German subsidiary of Venture Holdings LLC, continues to produce parts for customers as a German court-appointed lawyer tries to sort out the company's cash-flow problems.
German courts are deciding whether to declare the seven Peguform plants in Germany insolvent, a move that could damage parent company Venture, of Fraser, Mich., since the plants represent about 40 percent of its annual sales.
A shutdown at Peguform would halt production of some of Europe's top-selling models. But BMW AG, DaimlerChrysler AG, Porsche AG and Volkswagen AG have provided an $18.9 million line of credit to keep their production lines running.
Peguform's contracts include the front and rear bumpers for the Audi A4, the rear bumper for the BMW 3 series, the front bumper for the BMW 5 series, the instrument panel and rear door module for the Mercedes-Benz A class, the front and rear bumpers for the VW Passat, instrument panels and center consoles for the VW Phaeton and door panels for the Porsche Boxster.
In a brief written statement released Thursday, June 13, Venture executives said they were "confident to keep the group together as it is to maintain a global presence." The company also quoted lawyer Jobst Wellensiek, temporary administrator for the German court overseeing the insolvency determination, as stating he is "realistically optimistic" about the ability of Peguform's continued existence.
The statement does not specify, however, whether Peguform would continue under its current operating structure.
Venture, with nearly $2 billion in annual sales, purchased Peguform, of Boetzingen, Germany, in 1999. Four managers of Peguform filed a claim seeking insolvency for the German plants in May after the loss of a line of credit. c
Rhoda Miel is a staff reporter for Plastics News. Edmund Chew is a staff reporter for Automotive News Europe.