TURIN — Volkswagen Group’s Audi brand has put Italdesign, its Italian design and engineering subsidiary, up for sale, union representatives said.
The potential sale comes as VW Group CEO Oliver Blume pushes for cost cuts across the group amid a weak European market and rising competition from Chinese automakers.
Italdesign union representatives were told that the company is currently undergoing due diligence and the valuation procedure that could lead to a possible sale, Italian daily Il Corriere della Sera reported. No potential buyers were named.
A meeting with all Italdesign workers is scheduled for May 12 at the company headquarters in Moncalieri, south of Turin.
An Italdesign spokesman declined to comment.
Audi, which closed its underused factory in Brussels this year, is seeking to reduce costs to boost its weak profitability. Its operating margin in the first quarter was just 1.5 percent. The brand is cutting up to 7,500 jobs in Germany by 2029 to save €1 billion annually.
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Italdesign has about 1,000 workers and has operations in Italy, Spain, Germany, China and the United States.
The company was founded in 1968 by the design legend Giorgetto Giugiaro and his engineering partner Aldo Mantovani. It has penned some of history’s most influential vehicles such as the first-generation Volkswagen Golf, the original Audi 80, the Lotus Esprit, BMW M1 Coupe, plus several small Fiat cars such as the Panda, Uno and Punto.
Italdesign’s expertise extended beyond design to encompass engineering, prototyping, and even ultra-limited series production.
VW sought to refine its styling by purchasing Italdesign
VW completed the purchase of Italdesign in 2010 when Lamborghini, an Audi subsidiary, acquired 90.1 percent of the company. The acquisition aimed to secure Italdesign’s extensive expertise in automotive design, engineering, and prototyping for the wider VW Group.
The remaining shares were acquired in 2015, bringing Italdesign fully under VW Group. Giorgetto Giugiaro and his son Fabrizio sold their remaining shares, departed from the company and created their own consultancy, GFG Style.
For Audi and the VW Group, Italdesign was not just another company for its portfolio, it was a powerhouse of creativity, a swift and agile unit capable of developing entire vehicles (such as the Audi Q2) and pioneering new manufacturing techniques. It also served external clients, maintaining a connection to the wider industry.
Throughout its history under Audi’s ownership, Italdesign has continued to operate as a global service provider for the automotive industry and beyond, contributing to various concept cars, production models, including for Chinese automakers.
