The assembly outsourcing contract that Karmann had been hoping to win was the BMW Mini SUV. This will be built by Magna Steyr in Austria, dashing hopes that jobs at Karmann could be saved.

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A BMW spokesperson told dpa-AFX that the contracted had been awarded to Magna Steyr, and that the company had been in talks with both Karmann and Magna.


BMW is expected to confirm details of the contract later today.


The Karmann works council had advised all workers that management was negotiating for a major vehicle assembly contract that could last for up to five years. The Mini SUV, codenamed Colorado, is expected to be produced from 2010 at a rate of 40,000 vehicles a year.


Magna Steyr has core expertise in four-wheel drive vehicle assembly. Karmann’s specialist area is cabriolets.

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Karmann announced 1,770 job cuts last month, with further job losses if it did not win a major new vehicle assembly contract.

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