The Board of Management at Wilhelm Karmann GmbH filed for insolvency proceedings in Osnabrueck, Germany in April. The reason is the threat of inability to pay the imminent financial obligations. It is the goal - together with the preliminary court-assigned insolvency administrator - to lead the newly restructured Karmann group into a secure future and to maintain as many jobs as possible.
Due to the decline in sales, which has sharpened significantly, the restructuring plan negotiated with the labor representatives could not be financed anymore.
The business plan of the Board of Management from September 2008 still predicted a balanced result for the financial year 2009. Within this plan the costs for the restructuring plan were included. However, the worldwide financial crisis and the dramatic decrease in automotive sales did not allow for the original plan to materialize. The Board of Management specifically points out that the production volume of the remaining complete vehicle programs at Karmann was reduced drastically.
Karmann can be restructured in its core operations and is practically free of bank debts. Yet the collapse of the automotive market on one hand and the cost of the restructuring plan on the other hand have resulted in a burden that exceeds the financial capability of Wilhelm Karmann GmbH.
The filing for insolvency proceedings is related to Wilhelm Karmann GmbH, Osnabrueck. Due to corporate affiliation, the following entities are directly affected:
Automotive Global Service GmbH, Osnabrueck
Karmann Engineering-Services GmbH, Bissendorf
Karmann-Rheine GmbH & Co. KG, Rheine
Karmann Rheine – Verwaltungs GmbH, Rheine
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