July 3 (Bloomberg) -- Volkswagen AG awarded a model- development contract of at least 10 million euros ($14 million to Wilhelm Karmann GmbH, Neue Osnabruecker Zeitung reported, without saying where it got the information.

The funds will help the insolvent Osnabrueck, Germany-based car-assembler set up a reorganized company for 1,600 of its workers, the newspaper said. Karmann wants to focus on building electric-powered cars, the newspaper cited Ottmar Hermann, the company's bankruptcy administrator, as saying.

Last Updated: July 3, 2009 02:44 EDT