Volkswagen Group could be dropping Lamborghini
Things are pretty great over at Lamborghini right now, the new Urus SUV is a hit and continues to bring new customers to the infamous brand. In recent years the Italian automaker has started straying closer to Porsche in terms of its business model; the Urus is a prime example of this phenomenon. Just 10 years ago it seemed unfathomable that Lamborghini would so much as dream of making an SUV, yet here we are.
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However, for all its success you must remember that Lamborghini are owned by VW, a sensible company. And VW are well aware that this momentum might not be infinite. As a result the CEO of Volkswagen has been mulling over the idea of an IPO, or maybe even selling the entire Lamborghini brand name.
Companies such as VW are forever looking to expand, and CEO Herbert Diess reportedly has plans to achieve a market value for Volkswagen Group of $220 billion, according to Bloomberg News. However, as of now the company is is valued at just about $89 billion. In the face of slowing sales and economic unrest, this seems like an extremely ambitious goal.
However, to aid in achieving these goals Diess wants Lamborghini to go public. Not unlike what happened to Ferrari. This would enable VW Group to expand larger brands such as Audi, Porsche and Volkswagen instead.
The unnamed sources told Bloomberg Volkswagen Group has “started preparations to fold Lamborghini into a separate legal entity and the process might conclude toward the end of next year.”
However, for now Lamborghini does seem to be in a bit of a limbo; with aging models such as the 8 year old Aventador, and the now 5 year old Huracan. VW seem reluctant to pour resources into updating these older models; and most notably to redesign the Aventador's nearly 50 year-old V12 architecture.
However, this is understandable. With the rather uncertain future of Lamborghini as a brand; pouring money into costly development seems unwise. Not to mention that developing a EU7 emission compliant N.A. V12 is a very costly undertaking, which may even encourage Lambo to spruce up certain V10 or even V8 engines. Essentially killing what the car stands for; a last hoorah for the gas-guzzling supercar.