The Financial Times has reported that DaimlerChrysler is preparing to pay €100m to Karmann to cut back a contract to build the Chrysler Crossfire in Osnabruck, after sales failed to meet expectations.
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Sales in the segment have fallen off in the US, the Crossfire’s strongest market, although the Crossfire itself is the third best-selling car in its segment, ahead of the Audi TT and Porsche Boxster. It ranks behind the Nissan 350Z and Mazda RX8.
Karmann built 34,000 Crossfires in 2004, but output collapsed to 12,500 in 2005. The Karmann contract is thought to require production of over 30,000 units a year, and according to the Financial Times the contract is likely to be renegotiated to half this level. It is thought that Karmann will continue to build the car until 2008 when the original contract expires.
The report has not, however, been officially confirmed by Karmann or DaimlerChrysler.
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