GERMANY: VW board approves Karmann plans

23 November 2009 | Source: just-auto.com editorial team

Volkswagen's supervisory board has approved the acquisition of land, machinery and equipment formerly belonging to the Karmann holding company at the Osnabrück site. It plans to establish a car manufacturing subsidiary there and, later, start a new vehicle project.

Vehicle production will start in Osnabrück in 2011 and the project will create over 1,000 jobs by 2014. VW said ongoing development contracts would continue and about 200 people would will be recruited from next year to start production and set up the vehicle project.

Employees and former employees of Karmann have extensive experience in the production of small series models and would be considered for the new jobs.

Volkswagen plans more negotiations with the shareholders of the Karmann holding company and the administrator.