Media reports indicate that the German division of automotive parts maker Peguform has failed to avoid insolvency after filing for bankruptcy earlier this year.

However, administrators are reported to have secured significant investment to guarantee the company’s production until the end of 2003.

Peguform lists Volkswagen Group and BMW among its main customers and is a supplier of plastic interior and exterior parts such as front-end modules and cockpit components.

The administrator is reported to have said that the aim of the insolvency procedure is to provide a secure future for the company’s 5,500 employees, although further restructuring or rationalisation is possible. Reports say that a number of potential buyers have expressed interest.

Peguform operations in other countries are continuing to trade normally as part of the Venture Industries Group.