Germany's Karmann files bankruptcy
FRANKFURT (AP) — German auto company Karmann, which made the classic VW
Karmann Ghia two-seater from the 1950s to the 1970s and also has built
convertibles for Audi and Chrysler, filed for bankruptcy protection Wednesday,
blaming the sharp decline in demand for cars for its predicament.
Karmann said in a statement that it faced "insolvency in view of impending
financial obligations."
Osnabrueck-based Wilhelm Karmann GmbH, which employs nearly 7,000 workers,
said the fallout from the global financial crisis and the sharp decline in
demand for cars had undermined a restructuring plan it drew up last
September.
The company, like other auto makers, has been buffeted by a startling drop
in demand for new cars from consumers reluctant to spend.
That caused the company to cut 1,800 workers last year after it completed
production of the Chrysler Crossfire model for the U.S. automaker, the
Mercedes-Benz CLK for Daimler AG and Audi AG's A4.
In a statement, Karmann said it aims to reorganize and restructure its
operations with an aim toward preserving its future and the jobs of its workers
and would continue operations. It has facilities in Germany, the United
States, Portugal, Mexico, Britain and Poland.
Karmann has been in business since 1901 and built the Volkswagen Beetle
convertible, a job it undertook in 1949 after its factory, destroyed during
World War II, was rebuilt.
That was followed by the Volkswagen Karmann Ghia, a two-seat, low-slung
convertible attached to the chassis of the all-purpose Beetle that was
manufactured from 1951 to 1976.
It later built versions of Ford Motor Co.'s Escort line and Renault's 19
convertible. In 1995, Karmann designed a retractable hardtop roof for the
Mercedes-Benz SLK that slid back at the push of a button.
Karmann also worked with South Korean automaker Kia on its Sportage
sport-utility vehicle
When Wolfsburg-based Volkswagen AG reintroduced the modern Beetle, Karmann
was tasked with building the convertible, version.
Since 1949, the company has built more than 3.3 million cars. On the Net:
• http://www.karmann.com
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