Valmet Automotive is estimating it should receive regulatory approval for its acquisition of convertible roof specialist Karmann by year-end. We consider what it says about the convertible roof systems sector
The Finish company is due to buy Karmann’s convertible roof operations in Germany and Poland and although the purchase price is unknown, all 700 employees will stay in their respective countries.
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“This is an ideal combination with Karmann – one third of our production of 1.1m vehicles has been open cars so we are deeply involved in convertibles,” a Valmet spokewoman told us.
The Valmet spokeswoman conceded sales had dropped between 2007-2009 during the financial crisis, but were now rebounding and that Karmann’s position in the top three in its field meant there were “a lot of good things to be combined.”
She added: “We have been manufacturing convertibles for decades – we know this roof business” – and highlighted Valmet’s expertise manufacturing completed cars for Porsche (Boxster) and Saab‘s 9-3.
Valmet has also developed over 10 convertible soft and retractable roof systems for concept cars.
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By GlobalData“This acquisition is so far the most significant step in our strategy to expand internationally and to become a leading supplier of a wide range of services for the automotive industry,” said Valmet president Ilpo Korhonen.
“[Karmann’s] customers include BMW/Mini, Daimler, Renault and Bentley. Karmann’s roof know-how complements Valmet Automotive’s convertible know-how and substantially increases our capacity in engineering and in component manufacturing.”
The Finnish company estimates the manufacturing of convertibles in Europe will reach pre-recession levels of around 0.5m cars by 2012-2013.
In our opinion, this latest move by Valmet Automotive demonstrates how the success of retractable hard-tops (RHTs) is no temporary phenomenon. Yet the popularity of the RHTs is still very different on a regional level. They are well liked in Europe and Japan, and the trend towards RHTs is spilling over the Atlantic.
As we see it, convertible drivers in the US are still fixed on soft-tops. With the boom in RHTs, the question often arises whether soft-tops are threatened by extinction in the medium term. We don’t think there’s any need to worry about soft-tops. They will continue to have their justification. Many convertible drivers swear by soft-tops, since they convey a genuine convertible feeling even when they’re closed – something they often miss in RHTs. Whereas RHTs frequently are used all year round, soft-tops usually are second cars.
It is also clear that the expanding convertible segment is crossing all vehicle segments. It is no longer a preserve of the luxury class. Roof makers say that growing consumer acceptance as well as all-weather convertible top concepts such as RHTs will contribute to the market’s expansion. While electrically operated convertible-roof systems are industry standard for luxury vehicles, roof makers are continuously working toward developing smaller, lighter and cheaper systems.
Over the past few years, we have also seen the emergence of two, three and four-part retractable hardtops. Indeed, the multiple-panel retractable hardtops traditionally require more complex system architecture and therefore add mass and increased structural requirements to the vehicle.
Yet getting the balance right between weight, packaging, styling, material, price, crash requirements, luggage compartment space and stiffness is becoming even more important. And the more sections the RHT folds into, the greater the complexity and cost.
Matthew Beecham
See also: FINLAND: Valmet Automotive to acquire Karmann’s roof business
