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.
