MILAN (Reuters) -Volkswagen is considering a plan to sell its fully-owned design and engineering unit Italdesign or to find a partner for it, union representatives said on Monday, as part of the German automaker's efforts to overhaul its European operations.

Volkswagen, which controls Italdesign through its Audi unit, is under pressure from increasing competition and a lacklustre European car market.

Audi was not immediately available for comment.

Volkswagen, has received preliminary expressions of interest from four or five counterparts, the union representatives said after a meeting with Italdesign management, adding the German company will not consider offers from competitors or financial groups.

"The management confirmed in the meeting that Audi is assessing a possible sale of Italdesign," Gianni Mannori of Fiom union told Reuters, adding alternative options could be considered.

The process could take a few months, Mannori added.

Rocco Cutrì, the head of FIM Cisl union in Turin, said Audi was running a preliminary due diligence process at Italdesign, to prepare the unit for the plan.

Headquartered in Turin, Italdesign employs around 1,300 people, including 1,100 in the northern Italian city itself.

Volkswagen announced sweeping changes to it German operations in December, including job cuts and sharp capacity reductions. Measures included the end of production of Volkswagen-branded cars in Dresden and Osnabrueck, while the company is exploring alternative uses for the plants.

Audi has already closed its plant in Brussels after the search for a buyer ended without success, while in March the company announced it would cut thousands more jobs.