Osnabrueck, Germany - German convertible specialist Karmann filed for insolvency on Wednesday as the effects of the global downturn continued to hit the nation's carmakers.

The company, which makes roof systems, body structures and convertible top systems, said it was forced to take the move because it might not be able to meet pending financial obligations.

The union IG Metall said 3,470 workers at Wilhelm Karmann GmbH were affected by the insolvency, which comes just over a month after the company ceased assembly of full vehicles at its Rheine plant.

The company said a sharp drop in sales meant it was having difficulty meeting agreements made with the union over compensation to laid off workers.

Karmann filed for insolvency in Osnabrueck, where its main plant is located.

Wilhelm Karmann GmbH was founded in 1901. It is best known for the Karmann Ghia, a sports car marketed by Volkswagen from 1955. Some 445,000 cars were sold until it was replaced by the VW Scirocco in 1974.

The company assembled Audi A4 and Mercedes CLK convertibles until shortly before the insolvency application.

Most German carmakers have been forced to place workers on reduced hours as a result of a dramatic fall in sales triggered by the global economic crisis. (dpa)