Lamborghini will cap its own production to maintain brand exclusivity
07-08-19, 08:31 AM
#1
Lamborghini will cap its own production to maintain brand exclusivity
Shareholders want to boost sales, but Lamborghini execs want to keep production low
Lamborghinis, Ferraris, Bentleys, and so on demand high prices, and that's not just because you’re buying incredible performance, technology and luxury. You’re also buying exclusivity. Recently, however, Wall Street and shareholders have been pressuring supercar makers to produce more cars and yield more profits. The problem is that higher production volume compromises exclusivity and dilutes the brand.
So while Lamborghini’s shareholders want the company to produce more cars, executives are seeking to impose limits and cap production.
"We must not go on growing forever. We now have to consolidate these results and preserve exclusivity," Lamborghini CEO Stefano Domenicali told reporters at an event inaugurating the company’s newest paint and body shop at the Sant’Agata Bolognese plant in Italy.
The company announced that it plans to sell more than 8,000 cars this year, which is “the right dimension of our company with our current product portfolio,” Domenicali said.
However, that number could swell to around 10,000 cars, depending on whether the company adds another model to its small lineup. Such a case would have to be deliberated among shareholders.
Lamborghini saw considerable growth in the first quarter of this year, likely attributed to the launch of its Urus SUV. So far, analysts are forecasting an increase in revenue to around 1.7 billion euros, or $1.92 billion USD, up from 1.42 billion euros or $1.6 billion USD in 2018, said Chief Financial Officer Paolo Poma.
At the same event, Lamborghini confirmed that an electric supercar is not in its future at this time as “customers are currently not interested,” Poma said.
However, Lamborghini is indeed seeking to add hybrid vehicles to its lineup by 2025, as it’s pressured to lower CO2 emissions and meet future mandates. The Urus is expected to be one of the cars receiving a hybrid powertrain, as it is not planned to get a V10 or V12 engine.
So while Lamborghini’s shareholders want the company to produce more cars, executives are seeking to impose limits and cap production.
"We must not go on growing forever. We now have to consolidate these results and preserve exclusivity," Lamborghini CEO Stefano Domenicali told reporters at an event inaugurating the company’s newest paint and body shop at the Sant’Agata Bolognese plant in Italy.
The company announced that it plans to sell more than 8,000 cars this year, which is “the right dimension of our company with our current product portfolio,” Domenicali said.
However, that number could swell to around 10,000 cars, depending on whether the company adds another model to its small lineup. Such a case would have to be deliberated among shareholders.
Lamborghini saw considerable growth in the first quarter of this year, likely attributed to the launch of its Urus SUV. So far, analysts are forecasting an increase in revenue to around 1.7 billion euros, or $1.92 billion USD, up from 1.42 billion euros or $1.6 billion USD in 2018, said Chief Financial Officer Paolo Poma.
At the same event, Lamborghini confirmed that an electric supercar is not in its future at this time as “customers are currently not interested,” Poma said.
However, Lamborghini is indeed seeking to add hybrid vehicles to its lineup by 2025, as it’s pressured to lower CO2 emissions and meet future mandates. The Urus is expected to be one of the cars receiving a hybrid powertrain, as it is not planned to get a V10 or V12 engine.
07-08-19, 10:20 AM
#2
Lexus Fanatic
I don't agree with the brand-exclusivity and image argument....never did. If customers want your products, then build them....as long as you can maintain a decent quality-control level on the assembly line and not rush things too much. It can also, in some cases, mean more job-security for workers and more money going into their pockets.
07-08-19, 11:54 AM
#4
Lead Lap
I don't agree with the brand-exclusivity and image argument....never did. If customers want your products, then build them....as long as you can maintain a decent quality-control level on the assembly line and not rush things too much. It can also, in some cases, mean more job-security for workers and more money going into their pockets.
07-08-19, 02:56 PM
#6
Lexus Fanatic
Just cap that awful ugly Urus.
I love how they are being "pressured" to lower CO2 and add hybrids like the minuscule number of people who own and drive Lambo's maybe once or twice a month have any effect on anything.
I love how they are being "pressured" to lower CO2 and add hybrids like the minuscule number of people who own and drive Lambo's maybe once or twice a month have any effect on anything.
07-08-19, 06:12 PM
#7
Pole Position
I don't agree with the brand-exclusivity and image argument....never did. If customers want your products, then build them....as long as you can maintain a decent quality-control level on the assembly line and not rush things too much. It can also, in some cases, mean more job-security for workers and more money going into their pockets.
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07-09-19, 03:17 PM
#12
Lexus Fanatic
Not all rich people show off. In fact, I did a thread, recently, on billionaires who choose not to spend money on expensive vehicles.....some of them are running around in older Honda Accords.
07-09-19, 05:56 PM
#13
Yep, these cars are no longer rare or exclusive, thanks to the internet! Bunch of people (kids) these days with Instagram and YouTube channels become millionaires overnight. Same kids run to their local Lambo dealerships and buy Aventadors and Huracans. Things have definitely changed in past 20 years. People used to work hard in order to be able to afford a car like that. Nowadays, all you have to do is keep uploading videos of your daily stupidity and you're inside of a Lamborghini.
07-09-19, 06:45 PM
#14
Lexus Fanatic
I don’t understand how anyone could argue against the exclusivity of what having a Lamborghini means. Making more of them just takes that away. Anyone should be able to appreciate this ideal.
07-09-19, 08:59 PM
#15
Lexus Fanatic
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Exclusivity is absolutely a thing and helps create more value. Surprised posters do not agree with this.
I'm in the Northeast and rarely see a Lambo and when I do it's a treat to see one, which is the point.
If there was a Lamborghini in a driveway on every street in America, where do you think that takes Lambo's image? It would no longer be special. It's not much different as to the reason rare collector cars become so valuable. A lot of these supercars increase in value. That wouldn't be the case if production wasn't limited.
Even a '90's Supra can sell for 6-figures these days. Exclusivity makes people want it more, thus value.
I'm in the Northeast and rarely see a Lambo and when I do it's a treat to see one, which is the point.
If there was a Lamborghini in a driveway on every street in America, where do you think that takes Lambo's image? It would no longer be special. It's not much different as to the reason rare collector cars become so valuable. A lot of these supercars increase in value. That wouldn't be the case if production wasn't limited.
Even a '90's Supra can sell for 6-figures these days. Exclusivity makes people want it more, thus value.