Audi is exploring the sale of legendary Italian design firm Italdesign, according to Italian labor unions, as the Volkswagen Group brand intensifies efforts to cut costs amidst a sluggish European automotive market and mounting pressure from Chinese automakers. The move aligns with broader group CEO Oliver Blume’s strategy to bolster operational efficiency and adapt to rapidly evolving global competition.
Meanwhile, Audi CEO Gernot Döllner anticipates imminent changes in trade policy, predicting that tariff regulations imposed on the automotive industry will become ´more bearable´ in the next few months. His remarks come as international manufacturers face significant uncertainty regarding trade tensions, which have had a broad impact on export strategies, supply chains, and overall profitability. Recent developments, such as the U.S.-U.K. agreement to reduce tariffs, are already delivering relief: a British official confirmed that this deal will help safeguard jobs at Jaguar Land Rover and underpin the stability of the UK’s automotive sector.
The industry’s shift toward electrification and strategic adaptation to global trends remains a focal point. Ferrari is counting on its debut electric vehicle to revive its fortunes in China, targeting a successful comeback in the world’s largest vehicle market. Chinese automakers BYD and SAIC are capitalizing on combustion-engine car sales growth in Europe while simultaneously ramping up plug-in and battery-electric vehicle production at new facilities. Volvo is also responding dynamically, reviving its XC70 nameplate via a long-range plug-in hybrid and announcing workforce reductions at its battery division, Novo Energy, as part of its electric mobility evolution. These shifts underscore the intense competition and rapid transformation facing both established and emerging carmakers amid regulatory flux, cost pressures, and ongoing technological innovation.
