According to Autonews, citing sources close to the matter, the takeover will be announced as soon as Tuesday. With this piece of information, details of the transaction were also leaked.
The sources say Volkswagen will acquire 90 percent of the design firm, with the rest of the company to stay in the control of the Giugiaro family.
The move is necessary as Volkswagen needs more engineers and designers to help it become the world’s largest automaker by 2018. With some 60 new models, including upgrades, slotted to enter production in 2010 alone, the carmaker needs more manpower to diversify its offering.
It will not be the first time Italdesign Giugiaro works with Volkswagen. The company's designers created several highly successful VW vehicles, including VW Golf Mk1, the Scirocco Mk1, the Passat Mk1, the Audis 80 and 100, the 1991 Seat Toledo and the 1993 Seat Ibiza.
Italdesign is owned entirely by Giorgetto Giugiaro and his son Fabrizio. The former acts as the chairman, with the latter heading the design and model division.
The privately owned design and engineering company did not publish its financial results for 2009. The most recent data available shows that in 2008 the company had a 6.2 percent revenue increase to a total of 136 million euros ($166 million) and reported an operating break even.
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