Karmann's Collapse Left a Coachbuilding Hole Germany Never Filled

Throughout most of automotive history, coachbuilders have operated alongside automakers. The relationship was one of mutual benefit: a coachbuilder would procure a chassis from an automaker, then sculpt a unique body and interior around it. Notable examples include the Aston Martin DB4 GT Zagato, designed by Italy's Carrozzeria Zagato, and the line of reimagined Porsche 911s by Singer.

We typically think of Italy, England, and, to a lesser extent, the United States when coachbuilders come to mind. Germany, however, is conspicuously absent from that list. That is because the country's most famous independently operated coachbuilder, Karmann, is no longer around. It was in business for well over a century and only bowed out about a decade ago. Since its departure, Germany has been left without a famous coachbuilder, and, as of this writing, nobody has stepped up to fill the gap.

The Golden Age of German Coachbuilding

While the Karmann name earned most of its fame during the middle of the 20th century, its story begins much further back. The company was launched in 1901 by its founder, Wilhelm Karmann, who had purchased a pre-existing coachbuilder called Klages (founded in 1874) and renamed it. Karmann's first model came about in 1902, when the founder custom-built a body on top of a chassis built by Dürkopp, a German automaker operating at the time.

Over the next couple of decades, Karmann remained extremely obscure, hand-building just a few custom bodies along the way. However, following the close of World War II, Karmann's place in the world began to grow.

During the conflict, the company's assembly plant was levelled, meaning a complete reconstruction was in order. The trouble was, Karmann didn't possess the necessary capital to do so, partially due to the German economy being in tatters at the time. So the brand turned to contract manufacturing, with its first foray into the venture coming at the hands of Volkswagen. Wilhelm Karmann and Ferdinand Porsche had enjoyed a business relationship since before the war, as the latter had asked the former if he could drum up some designs for a Volkswagen convertible.

By 1949, an official contract was written and signed, stipulating that Karmann build 1,000 "four-seater, four-wing convertible Type 15" models, otherwise known as the Volkswagen Beetle. The Karmann-bred Beetle convertible, or "Beetle Cabriolet", proved extremely successful. It is heavily suggested that the popularity of the open-topped Beetle helped rebuild Germany's post-war economy.

Enter the Karmann Ghia

While the Beetle Cabrio business was surging, Karmann penned its most popular model: the Karmann Ghia Type 14. The nexus of the project began in 1953, just as Wilhelm Karmann's son, Wilhelm Karmann Jr, took over the company. Its purpose was to fill two voids: VW's desire for a sporty roadster, and Karmann's want for the same. Also around this time, American GIs stationed in Europe were beginning to fall in love with the small European roadster, and both Karmann and Volkswagen saw an opportunity.

Karmann Jr teamed up with Luigi Segre, head of the Turin-based Carrozzeria Ghia coachbuilder, to help design and produce the proposed roadster. Despite its modest performance, the Karmann Ghia was a success, garnering more than 360,000 sales throughout its 19-year tenure, spanning between 1955 and 1974.

Model Engine Power Top Speed Curb Weight

Karmann Ghia Type 14 1.2L NA air-cooled flat-four 34 hp 75 mph 1,808 lbs

Karmann's Post-Ghia Performance and Decline

Because of Karmann's wide-reaching success under Karmann Jr's leadership, the 1960s saw rapid brand expansion. New factories were built in Brazil and Germany. BMW began working with Karmann in 1965 with its Neue Klasse Coupe, built in a new factory in Rheine, Germany. The Porsche 911 and 912 were also partially produced by Karmann to boost production output. American Motors Company (AMC) was involved with Karmann in a joint venture that saw the production of complete knock-down (CKD) kits for Europe-bound AMC Javelins. The company built a handful of popular VW models throughout the years, including the Golf, Corrado, and Scirocco.

Business further expanded throughout the 1970s, 1980s, and 1990s, with Porsche models like the 914 also falling under Karmann's production umbrella. Ford's Escort RS Cosworth, the BMW 6 Series Coupe, the Audi Cabrio, and even Euro-market Kia Sportages were assembled by Karmann. The long-forgotten Merkur XR4Ti, also known as the Ford Sierra in Europe, was built by them, too.

A small sector of the company became involved in producing motorhomes, most based on Volkswagen T2, T3, T4, and LT vans. In the early 2000s, Karmann held the contract for building the Chrysler Crossfire, as well as convertible Ford Mustangs and Chrysler Sebring. Another revamped motorhome based on the Volkswagen T5 was introduced around the same time.

However, by the early 2000s, Karmann began to feel the financial pain in a big way.

The Swift Fall of Karmann

In short, OEMs were wreaking havoc on Karmann's business dealings. More and more specialty and niche cars were being built in-house, and the need for coachbuilt bodies or roof modifications from third parties was quickly drying up. Not to mention, large-scale employment unions and their subsequent contracts in Germany meant that legacy automakers were, in essence, required to produce their niche models in-house. Even if brands like Mercedes-Benz or VW wanted to send Karmann a chassis to build on, they really couldn't, and they still can't to this day.

Bearing all of this in mind, Karmann decided to file for insolvency on April 8, 2009.

In the fall of that year, Volkswagen became interested in acquiring the shattered Karmann company and made an offer. It was quickly accepted, and VW officially absorbed Karmann that November. All of Karmann's factories, machines, and even the land the plants stood on were taken over by VW.

A year later, a Finnish roof-builder and automotive contractor made an offer to VW for Karmann's automotive roof sections, receiving two ex-Karmann factories in Germany and Poland. The brand's US-based operations were snatched up by the Webasto Group, and its Japanese sector was purchased by Magna International.

The Coachbuilding Void Today and How It's Filled

With Karmann a thing of the past, and union contracts restricting independent coachbuilders more than ever, the stage has been set for a near-monopoly on coachbuilt roof and other component designs. There are currently three large companies involved in the practice: the Webasto Group, Magna International, and the Aisin Corporation. The former two were, as we just learned, there to snatch up Karmann's remains when it went under. These three conglomerates supply the vast majority of non-OEM convertible and sunroof/moonroof components in the market today. The remaining void is filled by the automakers themselves in much smaller amounts, leaving very little room for independents to operate.

These days, the big three German automakers rely on a few different companies to meet their convertible roof and sunroof production. All three have utilised Valmet Automotive, the Finnish company that gobbled up some of Karmann's remains, along with the Webasto Group. On a lesser scale, brands like Audi and BMW have turned to Magna International in the recent past. A fourth company called Edscha is also called upon by the Germans at times, although the firm typically focuses on higher-end models.

Karmann's collapse marked the end of an era for German coachbuilding. Its once-sprawling, 109-year-old empire has been consolidated, broken up, and reorganized into what we see today: a near-monopoly dominated by three large conglomerates. The independent coachbuilder, once a vital part of automotive culture, has all but disappeared from the German landscape.