Volkswagen is exploring the option of buying into bankrupt Karmann, according to a report in The Financial Times Deutschland.

Such a deal would be of interest for Christian Wulf, premier of the state of Lower Saxony, which is home to Karmann and a major shareholder in VW, the FT said.

The crisis-hit firm saw a light in the tunnel in July when it became known that VW plans to give Karmann an order. The firm is on the lookout for buyers for its convertible unit. A number of investors are said to have shown interest, FTD reported.

In June the contract convertible assembly specialist built its last car – a CLK convertible for Mercedes-Benz.

Karmann, founded in 1901, has built more than 3.3m convertibles since 1949, including the famous Volkswagen Karmann Ghias and Beetles, Ford Escorts, Mercedes CLKs and Audi cabriolets.

The recent collapse of global auto markets sealed the company’s fate and it filed for insolvency on 8 April this year, saying it would focus on automotive parts production – such as sunroofs.