VW will take a 90.1 per cent stake in Italdesign - Italy's largest design and engineering firm, employing some 800 people - via Lamborghini Holding SpA, while the Giugiaro family will retain the remaining 9.9 per cent of shares in the company.

VW hasn't revealed the financial details of the deal, nor whether Italdesign will continue with automotive projects outside the VW Group.

1997's VW W12 Syncro concept"The Volkswagen Group will be continuing its model initiative over the coming years and will benefit from the capacity and competence of Italdesign," says VW's CEO, Martin Winterkorn. "The company will therefore be making an important contribution to our 2018 global growth strategy."

For his part, car design legend and Italdesign's co-founder, Giorgetto Giugiaro, 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."

First-gen SciroccoItaldesign has created many models and concepts for the VW Group since the company was created in 1968, including the first Golf and concepts the first Passat, Scirocco and the Audi 80.

[thx to the wonderful Pistonheads for info]