Karmann's cause for concern

Wilhelm Karmann GmbH, the German specialist coachbuilder and automotive supplier, is concerned that an order to develop a new convertible issued by Volkswagen has not been formalised and no timetable has been set for the start of production. Karmann's managing director, Rainer Thieme, said Volkswagen would not turn to the new convertible until it had launched the convertible New Beetle on the US market in 2002.

However, Karmann is profiting from the fact that its products are not as susceptible to economic changes as mass-produced cars, and so turnover and profits will be kept stable in 2001. The company supplied 54,329 fully assembled cars last year, down 15 per cent on 1999. Turnover from cars was unchanged at 1.1bn euros, and total turnover was up 2.7 per cent at 1.24bn euros.

sent in by Pete Frost