Italdesign seems to be the first big thing to go as the Volkswagen Group tightens its fiscal belt.
If anyone still needs a sign that the Volkswagen Group is currently swimming in some financial hot water, this might just be it. Such is as the German auto giant is reportedly considering shedding some parts of the sprawling empire it has built, and Italdesign looks like the first in line for potential divestment.
According to representatives from the Fiom and FIM Cisl unions, the Volkswagen group is actively considering the sale of Italdesign, though alternatives like finding a strategic partner remain under consideration. This development follows a meeting between union officials and Italdesign management, during which Audi, Italdesign’s direct parent company, confirmed that a strategic review is currently underway.
This potential divestment reportedly forms part of Volkswagen’s broader restructuring strategy across Europe, as the automotive giant confronts both a stagnant regional car market and intensifying global competition. And while Italdesign may be the first company to be divested, Volkswagen has already implemented significant cost-cutting measures across its operations, most notably of which includes the closure of its Dresden and Osnabrück factories, while Audi also shuttered its Brussels plant after failing to find a suitable buyer.
Union sources claim Volkswagen has already received early expressions of interest from four or five parties, though it appears the company is not entertaining bids from rival carmakers or financial firms at this time. Italdesign management has been tasked with identifying potential buyers, and a preliminary due diligence process is already underway. The whole process is expected to take a few months, though no definitive timeline has been shared.
Founded in 1968 by the legendary Giorgetto Giugiaro, the Turin-based Italdesign has long been a staple in automotive aesthetics. Audi bought a 90.1% stake in the company in 2010, before taking full control of the company in 2015 after Giugiaro stepped down.
Italdesign today employs around 1,350 people, with about 1,100 based in Turin. In 2024, it posted revenues of €332 million (approximately RM1.7 billion), which positions it as a modest yet still profitable operation.
And while some may not know the name, most will definitely know the cars that Italdesign has created over the years. The Italian design house was after all responsible for the Maserati Bora, Lotus Esprit, and DeLorean DMC-12, not to mention also more modest (yet no less aesthetically appealing) cars like the original Volkswagen Golf, Passat, Scirocco Mk1, Fiat Panda, as well as Alfa Romeo Brera and 159.
It should nevertheless be noted too here that the Italian firm had a hand in designing more “interesting” cars like the Hongqi HS5, SsangYong Rexton, Korando, and the Daewoo Lacetti (of Top Gear’s “reasonably priced car” fame). Closer to home meanwhile, Italdesign actually even helped pen the Proton Prevé, Suprima and even the stillborn eMAS concept too!
One final fun fact about Italdesign and Audi’s relationship: Ferdinand Piëch, the influential former Volkswagen AG chairman, apprenticed at Italdesign in 1972, establishing a connection between the companies long before the acquisition. Curiously, despite being owned by Audi for nearly a decade, Italdesign had only been involved in designing one four-ringed production car — the Audi 80 from 1978.
