The State of Lower Saxony has promised financial support to workers threatened with redundancy at beleaguered Karmann.

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According to German media, the state wants to set up a company for the workers of the Osnabruck company, using money from the EU globalisation fund. It has already started negotiations with the German government and the European Commission.


Karmann and the employee representatives must now agree on a structure for the transfer company.


Karmann has said that up to 1,725 jobs could go as the company closes its contract vehicle assembly business and focuses on vehicle development and cabrio roof systems.


The company is currently negotiating a redundancy plan with unions and an agreement is expected by the end of the year.

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