Volkswagen step in to save Karmann

Volkswagen are girding up their loins to take on the might of market leader Toyota. Over the next three years, they intend to plough €25.8bn into their car making business. Following the integration of Porsche, the group has now taken over Karmann. The Wolfsburg-based giant will be setting up a new subsidiary to manage its involvement in the insolvent supplier company and plans to retain more than 1,000 of the present Karmann workforce. Volkswagen have secured machinery, plant and premises from the former open-top specialist manufacturer and also have ideas for a new vehicle project. Despite the global downturn, Volkswagen are set to produce 6.2 million units during the current financial year.