Report: Volkswagen to save Karmann from going bust

Karmann Quicc Diva

Volkswagen is planning to take over Germany’s coach building firm Karmann, brining the company back from the brink of bankruptcy. Karmann has undertaken many rolls from design to production for various automakers including Chrysler, Porsche and Volkswagen Group.

“Talks have been going on for some time, but there is no agreement yet on a price,” one of the sources told Reuters.

Reuters said that without any fresh funds, the contract carmaker and convertible roof specialist will shut down in early November as new orders remain scarce and customers are unwilling to pay bills. Karmann filed for insolvency in April.

A Karmann spokesman said that the company has been in touch with Volkswagen but would not discuss the content of the talks.

– By: Stephen Calogera

Source: Reuters