Moncalieri, Italy: Volkswagen AG said Tuesday it will acquire a 90.1% stake in Italian car designer Italdesign-Giugiaro SpA as part of its ambitious global expansion plan. The shares are to be acquired by VW's Italian sports car unit Lamborghini Holding SpA.
Financial details, however, were not revealed though VW chief financial officer Hans Dieter Poetsch said the purchase price was "substantial".
"The future of Italdesign is in good hands with Volkswagen ... For us it's an ideal partner," VW chief executive Martin Winterkorn told reporters at a briefing in Turin.
Family-owned since 1968, Italdesign-Giugiaro has designed cars for reputed brands, including BMW AG, General Motors Co, Toyota Motor Corp and China's Brilliance China Automotive Holdings Ltd.
It has important design credits to its name including Volkswagen's first-ever Golf hatchback in 1974 as well as concepts for important models such as the first Passat, Scirocco and the Audi 80.
VW also said that the acquisition would not affect the functioning of the group's other global design centres and that it expected the new acquisition to only foster competition amongst themselves.
Giugiaro family's Giorgetto Giugiaro said his company will work exclusively for all Volkswagen brands as "there is no room for anything else." As for current clients he said it was up to them to decide if they wished to pull out of ongoing projects or bring them to completion.
As for the rationale behind the sell-out he said being part of a bigger corporation provided greater certainty.
The Giugiaro family retains the balance 9.9% stake. VW clarified that there wouldn't be any job cuts.
The Moncalieri, Turin-based Italdesign-Giugiaro has about 900 staff and reports annual revenue of more than euro100 million. Apart from car design and engineering, it also provides industrial and architectural design.
Volkswagen's stated aim is to dethrone Toyota as the world's largest auto maker by 2018.
