Volkswagen–Audi Moves to Sell Italdesign as Employee Frustration Grows

Turin, December 10, 2025 – Volkswagen’s confirmation that it is considering the sale of Italdesign has sent shockwaves through Italy’s automotive design sector. In Moncalieri, home of the studio founded by Giorgetto Giugiaro, initial confusion has quickly turned into frustration. For many employees, the announcement feels less like a strategic shift and more like an abandonment by a group they believed they belonged to.

Inside Italdesign’s headquarters, the symbolism is striking: a DeLorean DMC-12 stands on display, a reminder of the studio’s global influence. Volkswagen, which acquired full ownership of the company fifteen years ago, currently reports €330 million in revenue and €30 million in net profit from Italdesign. But as the German group undergoes a deep restructuring, its priority is now to streamline operations and redirect investment toward electric mobility and core technologies. Italdesign, along with other subsidiaries, is being treated as a “peripheral” asset.

For the workforce, the move is unexpected. “Employees have long felt part of the Volkswagen family. They are now disappointed by the way they are being treated,” Fiom representative Gianni Mannori told the Frankfurter Allgemeine Zeitung.

UST Global Emerges as a Controversial Buyer

The first serious sign of a sale came when UST Global, an Indian-American technology company with no automotive background, conducted due diligence and submitted a bid. For designers and engineers in Moncalieri, the prospect raised concerns about strategic misalignment or a shift away from Italdesign’s historic identity. Around 60 engineers have left the company in recent months, underscoring the growing instability.

Internal communication from Volkswagen–Audi has been sparse. The group states only that it “regularly evaluates its portfolio,” offering neither confirmation nor denial of sale negotiations. Employees perceive the silence as dismissive toward a team that has shaped Volkswagen’s visual language for decades.

Italian Industry Leaders Mobilize to Keep Italdesign in Italy

In response, an Italian-led consortium has formed to keep Italdesign under domestic ownership. The group includes industry figures such as Eugenio Razelli, former Magneti Marelli CEO, and Amedeo Felisa, current CEO of Aston Martin, together with Giancarlo Tonelli and financier Andrea Pavan. Supported by Gruppo Adler and Cassa Depositi e Prestiti, the coalition aims to diversify Italdesign’s business, expand into sectors from Stellantis to aerospace and marine, and restore its role in Italy’s industrial ecosystem. Italian banks have already secured a €50 million loan for the proposal.

However, unions warn that the effort may have come too late. Volkswagen is seeking a swift conclusion, and signals of a possible sale were already evident in May.

For now, Italdesign employees are waiting for answers, calling simply for transparency. After contributing to Volkswagen’s transformation for more than a decade, they expect more than speculation and distant decision-making. Volkswagen has promised clarifications by the end of the year.