OSNABRUECK, Germany -- By Wednesday, July 1, it will be clear whether the insolvent contract manufacturer and convertible specialist Karmann will get its chance for a new beginning.
Karmann is best known for creating the Volkswagen Beetle-based Karmann Ghia coupe in the 1950s. With no new contract manufacturing orders and hit by financial troubles, the German company filed for insolvency in April.
"We expect that the judge in charge will open the bankruptcy process at the start of the week," a spokesman for bankruptcy administrator Ottmar Hermann said last week.
He has repeatedly said that the Osnabrueck company has enough substance for a future after insolvency proceedings.
Contract manufacturing isn't part of Karmann's future plans. But convertible roof systems, vehicle development, and component and tooling production are expected to be developed as parts of a sustainable business model.
In the more distant future, electric car manufacturing would be part of the plan.
The deciding factor is whether automakers will leave contracts already granted to Karmann in place.
Among them is the roof for the Mercedes CLK-class replacement, code-named W207. Its production launch has been postponed until January.
The new SLK class' entire floor assembly, which Karmann is due to build, is likewise in question.
Daimler and Hermann are discussing how to square Karman's account receivables of 40 million euros, or $56.3 million, with Daimler's warranty claims.
Karmann urgently needs money to establish a company to help laid-off workers with their transitions to other jobs.