EU Approves Volkswagen Karmann Buy
Volkswagen, who has repeatedly denied any interest in Karmann, will be acquiring car and components development, contract manufacturing, plant engineering and the development and production of equipments and tools from its former partner.
The deal was subject to the approval of the European Union because of fears it may break competition laws. Apparently, the EU has decided no such law is being breached should the transaction proceed.
“Given the presence of other considerable suppliers and the moderate market share of Karmann, the Commission concluded that car manufacturers will continue to have sufficient alternative suppliers after the transaction,” the EU said in a statement.
In the beginning of the month, Valmet Automotive, one of the industry's biggest suppliers, announced it will purchase probably one of Karmann's best known operations, the convertible roof manufacturing business.
Valmet will take over an operation which employs 700 people and has a net revenue of EUR180 million ($253 million). In the future, Valmet hopes the move would secure it a better place in the front row of the convertible segment.
Karmann was specialized in building bodies and components for cars, as well as assembling them for other car makers. It will go down in history as the creator of the iconic Karmann Ghia, a model built on a Old Beetle chassis from 1955 to 1974.