Karmann files for insolvency

Karmann, the century-old German coachbuilder synonymous with cabrios and the famous 1950s Karmann Ghia, has filed for insolvency.

The company made the move Wednesday in Germany in response to a dramatic decline in revenue, an inability to pay for its massive layoff plan and the worldwide economic crisis.

The North American operations, which make convertible tops for Detroit car companies and Volkswagen, are not affected, a spokesman said. The company has sites in Michigan and Mexico. It also recently launched an aftermarket business to restore tops for classic cars.

Karmann is the latest niche builder to fall on financial hard times, joining Italian icons Pininfarina and Bertone. The sector has been weighed down as automakers outsource fewer responsibilities and contracts have become harder to secure. Karmann

By Greg Migliore