Filed under: Supercars, Lamborghini, Earnings/Financials
Lamborghini taking the financial bull by the horns
Here's a profile of Stephan Winkelmann, head of Italian supercar builder, Lamborghini. It comes from The Times and shows us how Winkelmann has put together a pretty solid business plan to help keep Lamborghini out of the sort of financial trouble that has seemingly always been a part of the company's reality. When Audi took control of Lamborghini at the end of 2004, Winkelmann took some time to think it over before agreeing to take the reins. Although the budget seemed modest, Lamborghini had to remain extreme, in his mind. So while the cars themselves have had to use some shared parts with their corporate brethren, they still have that certain Lambo flair. The company also added signature items to their catalog - clothing, merchandise, and accessories - that have helped spread the name.
Just before Winkelmann stepped in, the company had finally surpassed 1,000 units sold in 2003, but it wasn't until 2004/2005 that they saw any kind of profit. Last year, they passed 2,000 vehicles sold worldwide and reported earnings of €18.1 million. That's a far cry from the 1970s and 1980s, when selling 250 cars a year seemed fine. Looks like the Superleggera and LP640 Roadster have made '07 a pretty good year so far, too. And there is more to come. "We're getting serious," Winkelmann says. "We are not just a toy producer for men. We are a quality car company and the results will speak for themselves."
Read the whole story to see more details about Winkelmann's plan for the company. Hint: It doesn't include a third (or fourth) model.
[Source: Times Online]
Reader Comments (Page 1 of 1)
smartmlp 6:21PM (7/30/2007)
I really hope Lamborghini doesn't try to enter the sub $100K market, it would ruin their image. The gallardo is the lowest they should go. I wouldnt mind if they came out with a 2+2 or even a 4 door (although there is no way a 4 door will ever be as sporty as a 2+2/Coupe or 2 seater), but please do not make a car thats "affordable" by the common man.
Reply
marcus 6:34PM (7/30/2007)
"When Audi took control of Lamborghini at the end of 2004"
VW/Audi took over Lamborgini in 1998! Come on Autoblog even in the same article you talk about how they were turning the company around by 2003.
I too hope they don't dilute the brand by going sub-100k but knowing Audi they like sticking their finger in every pie. Thats why they will never have the same cachet as Ferrari. Ferrari are still limiting output even though waiting lists have never been longer. Lambo are trying to push the numbers and this is why there resale isnt as good. At 200K the buyer is very discerning and exclusivity counts for a lot.
Reply
nagmashot 1:05AM (7/31/2007)
Thats correct Audi bought Lamborghini in 1998... the Gallardo was developt under full Audi controll and help.
testa di cazzo 10:21AM (7/31/2007)
way to pull that right out of your ass, marcus. Ferrari's are not more exclusive than lamborghinis, they are much much less exclusive.
the waiting list for your typical lamborghini is much longer than the waiting list for ferraris. and Ferrari sells about 3 to 4 times as many vehicles as lamborghini in a given year. that, by definition, means lamborghinis are more rare, and are more exclusive.
Also, lamborghinis tend to hold their value much better than ferraris, if only because they are high quality products made by high quality german engineering, not some red sports cars made by fiat which break down regularly and which burn down on the highway every now and then...
Pouya 7:17PM (7/31/2007)
@ testa di cazzo
Actually, the wait list for Ferrari's tends to be longer than the wait list for Lamborghinis. Try to place an order for a Ferrari 599 GTB Fiorano and see when it'll arrive. This is due to the shortage of supply when compared to demand, and the fact that Ferrari offers certain Ferrari's, such as the Enzo, to a select number of people. When the Enzo was on sale, Ferrari would not sell you one, for example, even if you were paying in full with cash. Lamborghini, on the other hand, would have taken your business. How is that for exclusivity? As a result, there is a large mark up on some Ferrari models. For example, the F430 Spider sells for more than $300,000 after mark up. Not only is this more than a comparable Gallardo Spyder, but is close to the MSRP of the Murcielago LP640. In addition, Ferrari's tend to hold their value better than Lamborghinis. In fact, some Ferraris, depending on their condition and mileage, actually appreciate in value.
Brandon 2:01PM (7/31/2007)
I'd love it if Lamborghini changed their mind and came out with the new Miura. That way there'd be another Lamborghini I can't help to afford, but it would be nice to see at car shows.
Reply
marcus 7:08PM (7/31/2007)
Ignorant comment, I bet all those Enzo owners didnt realise they were just buying a crappy FIAT.
Take a quick look at any car dealers and see how much the Gallardo loses compared to a F430, it will help you realise how Ferrrari are limiting production compared to how much demand there is. Exclusivity is not simply about the mubers produced (BTW Ferrari produce 4000 units per year, that is not 3-4 what Lambo make!), but about how easy it is to aquire said product. Also delving into the VW parts bin for air vents and the like is just not classy enough for a lot of buyers. YOu cant even back your false claim that Lamborghin have longer waiting lists. Thats because they are pumping them out as fast as they can.
Face it, for all you "high quality German engineering" they will forever play second fiddle to the legend that is Ferrari. It's unfortunate I had to put you straight.