Rolls-Royce Spirit Of Ecstasy Mechanism Manufacturer Files For Bankruptcy

The European automotive industry is rocked by another major collapse: the factory responsible for the mechanism of the legendary Rolls-Royce Spirit of Ecstasy figure has declared bankruptcy at the district court in Paderborn, Germany.

German subcontractor Paragon has supplied prestigious brands such as BMW, Porsche, and Rolls-Royce with advanced mechanical components for decades. The company is particularly famous for the system that automatically retracts the legendary figurine from the bonnet into the hidden space beneath it on Rolls-Royce models. But the company is now facing an acute liquidity crisis.

According to the German newspaper Bild, the suspension of payments directly affects 552 employees in six factories in Germany. The collapse was allegedly due to a business loan that was never repaid by a foreign investor.

Paragon is now considering taking legal action against the defaulting lender. Despite the suspension of payments, production at the factories continues for the time being with the help of an appointed receiver.

– The company has a solid number of orders, and the customers urgently need the products, says bankruptcy administrator Martin Mucha.

The process of finding new investors who could save the long-time supplier from final closure has been launched.

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