VW to announce Italdesign takeover on TuesdayMon, 24 May 2010
Volkswagen will announce Tuesday that it will take a 90 percent stake in Italdesign Giugiaro S.p.A, people familiar with the matter told Automotive News Europe.
The Giugiaro family will retain 10 percent in the Italian design house that is famous for styling cars such as the first-generation VW Golf.
VW plans to acquire control of Italdesign to help reach its goal of becoming the world's largest automaker by 2018 with sales of 10 million vehicles a year. To reach that goal, VW's 10-brand group, including Porsche, will need more designers and engineers. In 2010 alone, VW group plans to add 60 models, including upgrades.
Italdesign, co-founded by Giorgetto Giugiaro in 1968, currently has 975 employees and 800 computer aided design workstations.
Giorgetto Giugiaro, 71, who is Italdesign chairman, and his son, Fabrizio, 45, who heads the design and model division, are expected to continue working at the company following the VW takeover.
Italdesign does not disclose its financial results. The most recent data available shows that in 2008 the company increased its revenues 6.2 percent to 136 million euros ($166 million) and reported an operating breakeven.
Sources told ANE that the VW takover will be announced at Italdesign's headquarters in Moncalieri, 15km south of Turin on Tuesday morning.
By Luca Ciferri Automotive News Europe