On Friday, Volkswagen confirmed that it will buy land, machinery and equipment formerly belonging to Karmann at its Osnabrueck, Germany plant. The German automaker said that it will build a new vehicle at the site in 2011 but did not specify what the new car would be.

According to AutoCar, Volkswagen may end up building the production version of the BlueSport Concept at the facility. When it was unveiled at the 2009 Detroit Auto Show in January, Volkswagen said that the model was “production ready” although it isn’t expected to enter production until 2012.

Other reports from German media say that Volkswagen will build a convertible version of the new Golf in Osnabrueck.

Volkswagen says that as a part of its plans, the purchase of Karmann’s facility will create over 1,000 jobs by 2014.

Volkswagen BlueSport Concept:

- By: Kap Shah

Source: AutoCar

Coach-builder Karmann has reportedly been saved from filing for bankruptcy by striking a $14 million deal with Volkswagen to produce electric-vehicles. Neither Volkswagen nor Karmann have confirmed the reports circulating the German media.

Sources close to the deal said that Karmann will be reorganized to “focus on building electric-powered cars.” The mass-produced small city electric-vehicles are expected to hit the market by 2011.

Earlier this year Karmann showed its E3 Limousine, which claims to have a range of 90 miles on a full-charge with a top speed of 85 mph. Another vehicle, an electric-van named Quicc! DiVa was set to be built by Karmann for the German market.

- By: The Daily Auto Editor

Source: AutoCar