Volkswagen has revealed that it is to acquire coachbuilder Karmann in a deal to save Karmann from liquidation.Last month we reported that VW were interesting in buying up coachbuilder Karmann. Which made a lot of sense. Karmann are probably best known for the Karmann Ghia – which was basically a VW – and taking the Karmann marque in-house at VW made a lot of sense.
But despite the sense and logic there was a pretty big obstacle. The family controlling Karmann reckoned that the business was worth €65 million. VW put it at more like €10 million. Which you would think was an insurmountable obstacle. But there was a big fly in the ointment for Karmann. The administrators said that if they didn’t take an offer from VW they’d have to liquidate the assets. Which has obviously focused minds a little as VW has now announced they are to acquire Karmann.
So what does this mean for Karmann and VW? Hard to say, although there are a couple of things that spring to mind. Magna had issues with car makers who used them pulling business away when Magna were busy trying to buy GM – conflict of interest issues. And as Karmann do build cars for other makers – such as the CLK for Mercedes – there is likely to be a degree of collateral damage from third party business.
The most likely scenario is that VW will utilise Karmann for some of its more specialist new models – perhaps the VW Bluesport Roadster. Or we could see the Karmann badge being revived as a sort of high-end VW marque. I’m sure we’ll see soon enough.
But at least Karmann survives – sort of.