Volkswagen Group has formally announced it has taken a 90.1 per cent in Italy's largest design and engineering firm, Italdesign Giugiaro.

Audi subsidiary Lamborghini Holding SpA has acquired the majority shares and the other 9.9 per cent stake will remain in the Giugiaro family. VW also gets the brand name rights and patents of the internationally renowned design firm.

VW chairman, Martin Winterkorn, said he was pleased to acquire such an influential design studio, whose work includes the design of the iconic VW Golf MkI.

“With this shareholding in Italdesign, we are participating in one of the most renowned design and development companies with one of the richest traditions in the automobile industry,” he said.

“Italdesign is the flagship for creative Italian automobile design and has been instrumental in shaping the face of the automobile industry worldwide."

Giorgetto Giugiaro, co-founder of the IDG said, “Becoming part of the Volkswagen Group means revaluating ourselves and our strength. Entering Volkswagen means to open up a promising perspective for the company.”

Other Italdesign work for the VW Group has included the original Passat and Scirocco concepts, as well as the Audi 80. The deal between the two firms will mainly centre on the design and development of the VW Up! family of cars.