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Volkswagen AG has announced it will be establishing a new manufacturing unit in Osnabrueck, located in VW's home state of Lower Saxony, Germany. Interestingly enough, VW will be purchasing the land, equipment, and machinery formerly owned by Karmann -- the coachbuilder and convertible roof specialists who manufactured the classic Beetle-based Karmann Ghia coupe (Karmann filed for bankruptcy protection in April, and has been struggling since).

Karmann throughout the years - Click above for high-res image gallery

Click above for a high-res image gallery of the electric 1974 Karmann Ghia

German coachbuilder Karmann could be on the block soon. The company, a longtime supplier to German automakers, has been having trouble getting contracts lately. The family that owns the company is reportedly considering all options, and some talks with potential buyers have already taken place. No decision about whom to sell to has been made yet, but within a month Karmann may decide which suitor's offer to accept. The convertible roof business is going well for Karmann, but deals to assemble ve