According to Italian union representatives, automaker Audi has put Italdesign, its iconic Italian design and engineering studio, up for sale. The information was reported by the daily newspaper Il Corriere della Sera, specifying that the company is currently undergoing due diligence and an evaluation process for a possible transaction.
An employee gathering is scheduled for May 12th at Italdesign's headquarters in Moncalieri, south of Turin, to discuss the firm's future.
A strategic sale in a context of massive budget cuts
This potential sale is part of a wide-ranging cost reduction strategy led by Volkswagen Group CEO Oliver Blume, as the company faces a slowdown in the European market and fierce competition from Chinese manufacturers.
Facing headwinds on a number of fronts, Audi closed its Brussels plant earlier this year and plans to cut up to 7,500 jobs in Germany by 2029, in a bid to save 1 billion euros per year. Its operating margin was only 1.5 percent in the first quarter, a figure well below market expectations.
Italdesign: A jewel of automotive history
Founded in 1968 by Giorgetto Giugiaro — one of the greatest names in automotive design — and Aldo Mantovani, Italdesign penned legendary models such as the first-generation Volkswagen Golf, Audi 80, Lotus Esprit and BMW M1, as well as several popular Fiats like the Panda, Uno and Punto.
Italdesign also distinguished itself in engineering, prototype development, and the production of ultra-limited series.
Volkswagen acquired 90.1 percent of Italdesign in 2010 through Lamborghini, an Audi subsidiary, and then the remaining shares in 2015, becoming the sole owner.
An uncertain future for 1,000 employees
With around 1,000 workers spread across Europe, China and the U.S., Italdesign is both an internal creativity incubator for the VW Group and a global service provider that has collaborated with other manufacturers, including Chinese firms. Its recent projects include concepts and production models, such as the Audi Q2.
The sale of Italdesign, if it materializes, would mark a major turning point for Audi and raise questions about the firm's future in the global automotive design ecosystem.