Karmann has been on the brink of closing its doors for over a year now, but the German coach builder could be saved by a take over bid by Volkswagen. Karmann – the Osnabrueck, Germany firm best-known for producing the Karmann Ghia – was forced into bankruptcy earlier this year.
According to Reuters, Volkswagen – Europe’s largest automaker – is planning to take over the ailing coach builder. VW reportedly inked a contract with Karmann in July worth $14 million for the development of electric vehicles, but the funds have apparently dried up with Karmann only holding enough cash to continue operations into early November.
However, VW and Karmann are having trouble coming to terms on a purchase price. The three families that own Karmann are seeking at least $97.5 million, with VW only willing to offer something in the low double-digit millions range. “Talks have been going on for some time, but there is no agreement yet on a price,” an inside source told Reuters.
Magna Car Top Systems – a division of Canada’s Magna International – is also said to be interested in part of Karmann’s opperations. However, with Magna currently invested in acquiring Opel from General Motors, it appears as though Karmann’s best – and potentially only offer – will come from VW.
10/26, 12:20 PM
posted by:
A4
VW sure spends alot of time “MULLING” things, dont they LLN?
10/26, 12:22 PM
posted by:
johnnycanuck
There seems to be an awful lot of mulling going on in the industry as of late. I think I’ll ruminate on this for a while until it comes time to ponder the issue more closely.
10/26, 12:23 PM
posted by:
johnnycanuck
… I’m sensing a theme here…
10/26, 12:27 PM
posted by:
johngalt
Done mulling yet?
10/26, 12:40 PM
posted by:
atoms
I guess 2009 is the year of the MULL, I wonder if mullets are on there way back to the superstardom
10/26, 12:44 PM
posted by:
ahnuconun
Just like when FIAT took over Bertone, it would be “a propos” for VW to take over Karmann. Only thing is: if the three owner-families don’t get more realistic about the asking price, it could “ferment” bad feelings.
10/26, 12:45 PM
posted by:
johngalt
How ’bout now?
10/26, 1:15 PM
posted by:
85ZingoGTR
Karmann is still around?? What the heck are they making now? Wow I gotta get out more. lol
10/26, 1:22 PM
posted by:
DenverGuy217
Hmm the three families have so much to MULL over. Take a low double-digit $million dollar offer OR go out of business next month. Dang that’s a tough one. Let’s MULL it over some more…………..
10/26, 1:42 PM
posted by:
scratchy
i hope they don’t overmull this
10/26, 2:15 PM
posted by:
Noah
Depending on how they would do this, it might be cool to see THE GIA come back in some form
10/26, 2:16 PM
posted by:
Borat
Maybe 3 families are expecting to help Tata to mull over electric problems with their Nano.
10/26, 2:17 PM
posted by:
leftwingagenda
i’m sure smeg is mulling over a way to make this political, i’m personally mulling over my response to said trolling…
10/26, 2:43 PM
posted by:
spg900
Well done Johnny.
10/26, 4:56 PM
posted by:
A4
Maybe LLN can have a nice cup of mulled cider while they mull over who their next proofreading-lawyer-with-a-word-box is.
10/26, 6:29 PM
posted by:
digger32
VW/Audi designs can be a bit dull, this integration could give them much more appeal with more forward designs. This could be a big step with more modern car design.
10/26, 6:52 PM
posted by:
scratchy
digger32 , you didn’t mull long before you wrote your comment , did you ?
10/26, 8:13 PM
posted by:
reedfast
maybe they could make a ghia based on the 911. that would be sweet.