(Reuters) – Volkswagen (VOWG.DE), opens new tab could decide on the future of its Italy-based design and engineering unit Italdesign by the end of this year, Italdesign CEO said on Tuesday.
The German automaker, which is under pressure to overhaul its European operations amid increasing competition and soft market demand, is considering plans to divest from Italdesign, union representatives told Reuters earlier this year.
Options could include selling Italdesign – based in the northern Italian city of Turin and fully owned by Volkswagen through its premium Audi unit – as well as a stake in it.
“Hopefully there will be some developments by the end of this year,” Italdesign CEO Antonio Casu said during an automotive conference in Milan, Italy.
Italian union FIM Cisl said American-Indian tech and software group UST Global was assessing a possible investment in Italdesign via purchase of a majority stake.
Talks are ongoing and UST met workers’ representatives at Italdesign in Turin earlier this month, although no decision has been taken, FIM Cisl’s Igor Albera said.
An Audi spokesperson said on Tuesday the company was not engaging in speculation.
“Audi continuously reviews its strategic orientation. This also applies to our investment portfolio,” the spokesman said.
Italdesign was founded in 1968 by Giorgetto Giugiaro, one of the world’s most influential car designers, who sold it to Volkswagen in 2010. The German group took full ownership in 2015.
Italdesign has created models for several brands including Volkswagen Golf, Fiat Grande Punto, Alfa Romeo 159 and, more recently, Audi Q2 compact SUV.
The company employs over 1,300 people, most of them in Turin. It generated a record turnover last year of 332 million euros ($388 million).
($1 = 0.8575 euros)
