Volkswagen Group is reportedly exploring the sale of one of its most iconic brands and has already attracted potential buyers. According to recent reports, the company has received preliminary expressions of interest as it evaluates options for Italdesign, its renowned design studio. The group is either considering a full sale or seeking a new partner to help manage the operation. This decision comes amid rising competition and slowing sales, prompting Volkswagen to find new strategies to strengthen its business.
Multiple Suitors For Industrial Design Company
Audi, the Volkswagen Group subsidiary that owns Italdesign, has initiated discussions with union representatives regarding a potential sale of the famed industrial design company, according to a report from Reuters. “The management confirmed in the meeting that Audi is assessing a possible sale of Italdesign,” said Gianni Mannori of the Fiom union. The revelation adds weight to reports that several parties have expressed early interest in acquiring or partnering with the iconic studio.
Union representatives told Reuters that Volkswagen has attracted interest from “four or five counterparts” regarding the potential sale of Italdesign. However, they clarified that the automaker is not entertaining offers from direct competitors or financial investment groups. According to Gianni Mannori, the sale process is expected to take several months as Volkswagen carefully evaluates its options.
Italdesign-Giugiaro, founded in 1968, became part of the Volkswagen Group in 2010 when Audi acquired a 90.1 percent stake in the company, including rights to its iconic name. Over the decades, Italdesign has left a lasting mark on automotive history, crafting a wide array of concept cars such as the BMW M1, Hyundai Pony Coupe, and Lamborghini Cala. Its influence also extends to production vehicles, with celebrated designs including the Maserati Bora, Lotus Esprit, Fiat Panda, Alfa Romeo Brera, and the widely recognized Daewoo Lacetti.
Volkswagen and Italdesign share a deep-rooted history that dates back to the early 1970s, when former VW chairman Ferdinand Piëch apprenticed at the design studio. This close relationship has led to a legacy of collaboration, with Italdesign playing a key role in shaping some of Volkswagen’s most iconic models. The original Golf, Scirocco, and Passat all emerged from this partnership, solidifying Italdesign’s influence on the brand’s design language and success.
Restructuring Efforts Ripple Across Volkswagen Group
Italdesign remains headquartered in Turin, Italy, and currently employs approximately 1,150 people. Although its name has appeared less frequently on recent vehicle projects, the company is reportedly still operating profitably. The potential sale is seen as part of Volkswagen Group’s ongoing restructuring strategy, aimed at streamlining operations and adapting to evolving market pressures.
Volkswagen Group’s potential sale of Italdesign is part of a broader wave of restructuring initiatives aimed at cutting costs across its various brands. Audi, for instance, recently announced significant job cuts and the closure of a factory that has been producing Volkswagens and Audis since 1954. Meanwhile, Volkswagen reached a deal with the IG Metall union to preserve at least two German plants. The agreement includes wage freezes and a gradual reduction of the company’s domestic workforce by 35,000 over the coming years.
Additionally, Volkswagen is scaling back vehicle production in Germany, cutting nearly 750,000 units from its domestic capacity. The automaker plans to shift production of those models to more cost-effective manufacturing sites abroad as part of its strategy to remain competitive in a rapidly evolving global market.
While Volkswagen has not disclosed the identities of the interested parties, its decision to exclude financial groups and direct automotive competitors significantly narrows the pool of potential buyers. However, a previous report indicated that “non-European, non-automotive multinational engineering firms” have expressed interest in Italdesign.
The appeal extends beyond the auto industry, as Italdesign is involved in a diverse range of design work. In addition to automotive projects, the Turin-based studio contributes to the development of home appliances, furniture, industrial machinery, and medical devices—broadening its value to prospective buyers from various engineering and industrial sectors.
