Italdesign Up for Sale as Volkswagen Group Seeks to Cut Costs

Turin, Italy – May 11, 2025

Volkswagen Group’s Audi division is reportedly preparing to sell Italdesign, the renowned Italian automotive design and engineering firm, as part of broader cost-cutting measures. This move has raised concerns among employees and industry observers about the future of the iconic company.

According to reports from Automotive News Europe, union representatives have been informed that Italdesign is undergoing due diligence in preparation for a potential sale. A meeting with company workers is scheduled for May 12 at Italdesign’s headquarters in Moncalieri, near Turin. 

Italdesign, founded in 1968 by Giorgetto Giugiaro and Aldo Mantovani, has been instrumental in designing some of the most iconic vehicles in automotive history, including the original Volkswagen Golf, BMW M1, and DeLorean DMC-12. Volkswagen acquired a 90.1% stake in the company in 2010 through its subsidiary Lamborghini, with Audi later taking full control.

The decision to sell Italdesign comes amid financial challenges for the Volkswagen Group. Despite an increase in electric vehicle sales, the conglomerate is facing a financial bind that has led to workforce reductions and cost-cutting initiatives. Audi’s operating margin fell to just 1.5% in the first quarter of this year, prompting the company to reduce its workforce by over 35,000 people in the next five years. 

Union representatives have expressed concern over the potential sale. “This news makes us very worried, because we don’t know what will happen to the future of a company that has been and still is a flagship of the region,” said Gianni Mannori, a member of the Fiom Cgil trade union, in an interview with Italian newspaper Corriere della Sera.

While no potential buyers have been named, industry analysts suggest that Chinese firms or private equity investors could be interested in acquiring Italdesign. The company has continued to work with automakers outside the Volkswagen Group, including a collaboration with Nissan on the limited-edition GT-R50.

The potential sale of Italdesign marks another shift in the landscape of Italian automotive design. Other storied firms like Bertone and Pininfarina have undergone ownership changes in recent years, reflecting broader trends in the global automotive industry.

As the situation develops, stakeholders and enthusiasts alike await further details on the future of Italdesign and its role in the evolving automotive design sector.