Volkswagen will open a new car factory at the now defunct Karmann site in Germany in 2011.
VW has bought the land, machinery and equipment belonging to Karmann, after the coachbuilder filed for bankruptcy in April having seen orders dry up.
The German firm said in a statement that a new car will be built there in 2011, which could turn out to be the BlueSport roadster. The diesel-powered MX-5 rival was unveiled as a concept earlier this year and VW have previously described it as "production ready", although it isn't tipped to make production until 2012. German media reports claim the model could be a cabrio version of the new Golf.
More than 1000 new jobs will be created by 2014 as part of VW's plans.
Karmann specialised in manufacturing retractable hardtop roof for manufacturers, but also assembled whole cars at its Osnabrueck plant in Lower Saxony. It delivered the last of its models, the Mercedes CLK, in June.
"Employees and former employees of Karmann have extensive experience in the production of small series models, and this experience will be accessed in line with requirements," said VW.