Volkswagen Buys Karmann Assets; Will Use Factory To Produce New Model
Volkswagen announced today that it will be buying the former assets of bankrupt coachbuilder Karmann, and will use the firm's former factory in Osnabrück, Germany, to build a new vehicle.
VW is purchasing not only Karmann's real estate holdings, but all of the equipment and machinery contained within the Osnabrück facility. Volkswagen has revealed the plant will begin producing a new vehicle by 2011, but won't fully disclose what it will be.
"Employees and former employees of Karmann have extensive experience in the production of small series models, and this experience will be accessed in line with requirements," VW said in a release.
Karmann, long known for building convertibles for various companies and for crafting the shapely Volkswagen Karmann Ghia, filed for bankruptcy on April 8. Volkswagen's adoption of the facilities will likely reinstate approximately 1000 jobs by 2014.
Source: Automotive News