German auto supplier Eisenmann, which supplied Tesla in 2015 with a new paint shop at its Fremont plant in California, filed for insolvency in a sign of the growing economic problems crushing profits in the auto sector, Reuters reported.
Eisenmann, which has 3,000 employees and generated annual revenues of EUR723m (US$806m) in 2017, filed for insolvency at the Stuttgart District Court, the news agency said.
The Boeblingern, Germany-based company said it was now looking for a strategic partner for its paint & assembly, as well as its application technology businesses. Potential buyers have already expressed interest, Eisenmann tolf Reuters.
Eisenmann told Reuters it ran into liquidity problems because major projects started in 2018 led to a large year-on-year loss.
A spokeswoman declined to specify which projects had pushed the company into insolvency.
"This is another example of the extreme supplier pressure these days. We do not foresee the environment getting any better soon," Evercore ISI analysts said in a note cited by Reuters on Tuesday.