- The famed design house generated $374 million last year and is a profitable enterprise.
- Audi is said to have already received four or five expressions of interest in Italdesign.
- The design house has been under the sole ownership of Audi since 2015.
The Volkswagen Group may sell Italdesign or look for a new partner, as it looks to overhaul its German operations. The carmaking conglomerate is looking for ways to shore up its finances as it faces increased competition from other brands, particularly those from China. Selling Italdesign could help it generate some invaluable funds that it could use in developing new and enticing models.
Italdesign was founded as Studi Italiania Realizzazione Prototipi in 1968 by famed designer Giorgetto Giugiaro and Aldo Mantovani. In 2010, Audi acquired 90.1% of the shares of the design house for an undisclosed amount. In 2015, Giugiaro resigned from the company, selling his remaining shares to Audi.
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Representatives from the Fiom and FIM Cisl labor unions understand that Audi is assessing a possible sale of Italdesign, or may look to find a partner for it. Reuters understands the VW Group has already received four or five expressions of interest in the company, but is not thought to be interested in selling it to a competitor or a financial group. Union officials met with management from Italdesign earlier this week as talks ramp up.
According to Gianni Mannori from the Fiom union, the management of Italdesign has been tasked with finding a buyer. This process could take several months. In the meantime, Audi is thought to be running through a due diligence process to prepare the company for its next moves.
Italdesign currently employs approximately 1,350 people, the majority of whom are based in Turin. It generated €332 million (~$374 million) last year, and according to Mannori, it is profitable.
Not only has Audi had its difficulties, but the VW Group as a whole has a lot to worry about. The main Volkswagen brand has been struggling and, late last year, Volkswagen said it would cut more than 35,000 jobs across Germany. It will also lower capacity in Germany to better align with demand, hoping to save as much as €15 billion (~$15.6 billion) per year.
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