REPORT: VW bids to save Karmann but coachbuilder holding out for more money
German coachbuilder Karmann has been in trouble since before the global economy caught its version of the swine flu, and from a workforce of 5,000 the company is down to 1,800. A huge order for VW electric vehicles was meant to keep the company going while it sorted out its issues, but even that won't be enough, so now VW is looking at buying the entire company.
Reports out of Germany say VW has offered a rather low amount for Karmann, something in the minimal double digits. But the three families behind Karmann want more. A lot more. Like, €65 million. That's nearly $100 million and probably far more than VW will pay, if for no other reason that Karmann's only other option, according to one of its own administrators, is liquidation.
Although it's possible that Karmann's owners could choose to disappear rather than accept VW's offer, we'd be surprised if that happened. What we think more likely is that VW, in the way it has had recently, gets its way. If things keep up like this, though, by the time the auto economy picks up again Volkswagen will own everything that isn't bolted down.
[Source: Automotive News - Sub. Req.]
Reader Comments (Page 1 of 1)
Sofa King Fast! 8:37AM (10/26/2009)
by low double digits are you suggesting about $50?
That's a little harsh of VW.
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some1 8:59AM (10/26/2009)
wonder if they learned anything from GM...
Gungosa 9:39AM (10/26/2009)
If you go by the whole round up if it's five or greater, then lower double digits would have to be at most $49. I hereby raise VW, and offer $52.
James 8:49AM (10/26/2009)
I'd like to see VW buy Karmann...then employ again Ghia to design a modern Type 14. (But then it's just a wet VW dream of mine...).
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Luso 9:37AM (10/26/2009)
Sounds like Karmann will get the VW contract, and in return VW will get Karmann. LOL
Talking to an ex-Karmann employee a few weeks ago - the company is not worth a lot at the moment. The only strategy that might increase its market value is a "CO2 loop hole", and a few other options relevant to new techs.
http://www.carnorama.com
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Art 3:31PM (10/26/2009)
Dear VW, conspire with porsche to use their upcoming low end platform, in conjunction with the 170hp I5, to build a rear motor, mondern Ghia.
thanks
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