Volkswagen now holds a 90.1% stake in IDG, with the purchase made through Lamborghini, while the remaining IDS shares remain with the Giugiario family.

IDG was founded in Turin by Giorgetto Giugiaro and Aldo Mantovani in 1968 and has strong links with VW. Mr Giugiaro designed the original Golf as well as concepts for models such as the first Volkswagen Passat, Scirocco and the Audi 80.

Volkswagen chairman Dr Martin Winterkorn said: 'Italdesign has now become a permanent member of the Volkswagen Group. Given the full order books and numerous interesting projects, the perspectives are better than ever. In view of our ongoing model initiative and the associated development and design assignments, we will be expanding Italdesign's highly-motivated and productive team.'

Giorgetto Giugiaro becomes chairman of the executive committee with Fabrizio Giugiaro as vice president. VW has also appointed Ralf-Gerhard Willner and Salvatore Cieri to the executive committee.