Lamborghini To End Sales Boom In 2020 For Stability, Exclusivity; One Off Lambo cost 3.5 million euros

 

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Lamborghini is on course for a global sales record for the ninth consecutive year in 2019. Starting in 2020, however, its volume is expected to stabilize at less than 8,500 vehicles a year to preserve the brand's exclusivity and protect resale values. To push annual sales above 10,000 the Volkswagen Group subsidiary needs a fourth model, which isn't due before 2025. Lamborghini CEO Stefano Domenicali discussed these topics and more with Automotive News Europe Associate Publisher and Editor Luca Ciferri.

Is Volkswagen Group considering an IPO or a divestiture of Lamborghini?

Those decisions are made by our shareholders and the VW Group supervisory board. What I can say is that all this interest around Lamborghini means that the team here has done a good job.

What are the biggest achievements?

Last year we increased sales by 51 percent to 5,750 units and revenue by 40 percent to 1.42 billion euros. This year we will set once again new records for sales -- about 8,200 units -- and revenue. Recognition and appreciation of the brand has also grown significantly. To give an example, we have customers who are willing to pay 25,000 euros more than the list price of a new Urus to get immediate delivery of a used model.

Is the waiting time for the Urus still a big issue?

On average, we are at about nine months, which is fine for a high-end SUV. It takes about a year to get the S version of the Aventador while the Aventador SVJ is sold out. It takes six months to get a Huracan. These waiting times are OK in most markets, but we see a growing trend in the Far East, Middle East, California and Florida where customers want to buy the car they see in the showroom. Properly managing dealer inventory is a delicate business exercise with a lineup of cars priced between 100,000 and 300,000 euros.

What percentage of Urus sales are conquests?

About 70 percent of its customers are new to the brand.

What is the retention rate for your supercars?

More than 70 percent are repeat customers.

Are the buyers about the same age?

No. Most Urus buyers are 45 to 55 years old while our supercar customers are between 30 and 45.

The Urus accounted for more than 40 percent of your first-half global sales. Will that number grow or shrink for the full year?

The Urus will account for about 55 percent of our 2019 sales. That is roughly 4,500 units, which it its full capacity for a year.

Could you expand Urus production even further?

We have the capability to do this but not the willingness right now. This year sales in Russia will grow twofold to 126 units and twofold in India to more than 40 units. Sales in Italy have grown threefold to about 200 units. We could eventually boost Urus production to help shorten the waiting times in markets such as these, where the model has performed well above our expectations

Could Lamborghini top 10,000 sales a year with its current lineup?

No. We plan to reach about 8,500 units in 2020 and then to stabilize there for a while. The supercar segment is expected to grow about 3 percent a year and we can't expect the Urus to keep growing forever. Therefore, a fourth model would be needed to get us to 10,000. The model won't arrive before 2025 at the earliest.

Will the fourth model be the rumored 2+2 GT?

This is what we have in mind. The package and the design are almost final, but the entire project is on standby. As our target is to reach the market between 2025 and 2027, we need to see what the available platform and powertrain options -- including full electric -- will be then within the VW Group. The only thing clear is that any Lamborghini model should offer the best performance within the group from that specific architecture.

If sales hover at about 8,500 from 2020 until 2025-2027 won't that impact your revenue growth?

We expect moderate but stable revenue growth. One contributing factor is spare parts. Not only will the number of cars on the road grow at a steadier pace, by more than 8,000 units a year from less than 4,000 two years ago, but the mileage is also growing. Urus customers drive about 15,000 km a year, compared with about 4,000 km for the Aventador and 6,500 for the Huracan. Other factors contributing to our bottom line are increasing revenue per unit and the expansion of our few-off and one-off projects.

Is the 2 million-euro Sian the first of those so-called "few-off" projects?

Yes. The Sian coupe will have a 63-unit run, which we sold out in three months just showing potential customers a 1-to-3 scale model and some computer-generated videos of a model that did not exist yet.

What will be the next "few-off" model?

A track-only hypercar developed by Squadra Corse [Lamborghini's motorsports arm] and designed by the Centro Stile in Sant'#### Bolognese. The car will debut in 2020. The limited-edition car's aerodynamic and mechanical specifications will be optimized to bring out the best from our iconic 6.5-liter, naturally aspirated, 830-hp, V-12 engine.

How about your plans for the one-offs?

We have two clients for bespoke Aventadors. These models will have one-off exteriors and interiors but will remain street legal. They should be delivered by the end of next year.

How much does a one-off Lamborghini cost?

They start at 3.5 million euros.

Are you still planning a plug-in hybrid version of the Urus?

The plan is for a V-8 plug-in hybrid, which will be the most powerful Urus, but we are still working on the performance, which is impacted by the added weight of the batteries, e-motor and power electronics. This variant will be the leading powertrain offering in markets with CO2-based taxation.

Will there be a race series created specifically for the Urus?

Yes. We will start with a Race of Champions for the Urus STX in 2020 where 80 percent of the race will be held on a track and 20 percent off-road. The plan is to move to a proper dedicated championship in 2021.

How do one-make race series such as the Super Trofeo for the Huracan help your bottom line?

We have three different regional championships [in Europe, North America and Asia] in which more than 60 Huracan Evo racecars have competed in 2019. These variants cost 245,000 euros plus tax in Europe and require an additional 36,000 euros per car to race the full season.

How will Brexit affect Lamborghini?
We are closely watching all developments on the topic because the UK competes with Japan to be our second-largest global market. The UK is extremely relevant to us.

 

 

https://europe.autonews.com/automakers/lamborghini-ceo-taps-brakes-record-sales-rise

 

Good stuff, thanks for sharing.

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"expansion of our few-off and one-off projects."

 

In a video I recently watched of the crown prince of Abu Dhabi showing his car collection, he mentioned that he was in discussions with a few companies to build another one-off; if memory serves, he mentioned Lamborghini, Bugatti, McLaren who had all submitted competing proposals. It got me thinking about the direction of the higher end of the market and the long term desirability of such brands.

Up until the mid 2000's it seemed that a one-of-one was truly a once in a life time chance to own a piece of history. Today, it seems as though it's a (well received) marketing gimmick to push product out the door at a much higher margin. Unless the car is a one-of-one for a celebrity, I can't see why anyone would pay a huge price down the road to take it off the original owner's hands?  For example, should Kris Singh ever decide to sell his "La Monza Lisa" Huayra, who's going to care that it's a one-of-one built for him over another well specc'd "regular" Huayra?  Winkelmann (at Lamborghini and now Bugatti) and Pagani seem to be the leaders in this marketing technique of endless 'special' cars.

Long-term collectibility of these modern one-off's seem non existent (to me).  While I'm sure they will hold their values well above the regular "run of the mill" supercars, I'm unsure if they would be worth it at bargain prices like we had for the 80's/90's cars during the 2007-2010 period.

Anyway, just a thought and hope others share theirs on the topic.  Unsure what I'm not seeing that others are.

I agree with your view on this.  The one-offs are just an exercise of special paint and leather interior.  Fundamentally, these special one-offs needs to be based on a production vehicle in order to make it road legal, so in that sense, it's not a special car.  I think the real collector cars are probably in the "few-offs", assuming you buy the right ones (eg. Project One, Valkyrie, ThethetheFerrari, P1, 918, etc).  

Agree with escobar and Unotaz.

Regrettably, that "few-off's" list does not include any Lamborghini, i.e. Reventon, Veneno, Centenario and the Sian.  Buy a Miura or buy a Sian; which one would hold its value more?  Almost a no-brainer.

What Bugatti is doing is interesting to me as I've heard you'll lose a fair amount on a standard Chiron - I can't imagine some of their special editions won't do better as the bodywork is substantially different and they are even more limited. 

I don't know if it's social media or what but it seems like everyone has an exotic now days. I think super rare coach building is the only option these brands really have left in order to capture the excitement in such a small market of customers who can actually afford it. 

2 hours ago, Luxeous said:

What Bugatti is doing is interesting to me as I've heard you'll lose a fair amount on a standard Chiron - I can't imagine some of their special editions won't do better as the bodywork is substantially different and they are even more limited. 

I don't know if it's social media or what but it seems like everyone has an exotic now days. I think super rare coach building is the only option these brands really have left in order to capture the excitement in such a small market of customers who can actually afford it. 

That would be an interesting market to watch.  Those 5 million plus special edition Chiron is definitely in a complete separate market altogether.  I have to assume those cars will be going into some amazing collections and as such, they won't be coming onto the secondary market in the short term.  I can't imagine anybody with only 5-6 cars in their garage buying a 5 million plus Bugatti and selling it in less than a year  

On 12/22/2019 at 7:46 AM, escobar said:

 

In a video I recently watched of the crown prince of Abu Dhabi showing his car collection, he mentioned that he was in discussions with a few companies to build another one-off; if memory serves, he mentioned Lamborghini, Bugatti, McLaren who had all submitted competing proposals. It got me thinking about the direction of the higher end of the market and the long term desirability of such brands.

Up until the mid 2000's it seemed that a one-of-one was truly a once in a life time chance to own a piece of history. Today, it seems as though it's a (well received) marketing gimmick to push product out the door at a much higher margin. Unless the car is a one-of-one for a celebrity, I can't see why anyone would pay a huge price down the road to take it off the original owner's hands?  For example, should Kris Singh ever decide to sell his "La Monza Lisa" Huayra, who's going to care that it's a one-of-one built for him over another well specc'd "regular" Huayra?  Winkelmann (at Lamborghini and now Bugatti) and Pagani seem to be the leaders in this marketing technique of endless 'special' cars.

Long-term collectibility of these modern one-off's seem non existent (to me).  While I'm sure they will hold their values well above the regular "run of the mill" supercars, I'm unsure if they would be worth it at bargain prices like we had for the 80's/90's cars during the 2007-2010 period.

Anyway, just a thought and hope others share theirs on the topic.  Unsure what I'm not seeing that others are.

I agree with what you are saying. I doubt the one off cars will pull any more money then a non one off car once the market has enough supply. If a guy has a huge social media following and his car is whore'd all over there I don't want that car since it'll forever be "XXX's old car." Once you are in the type of price bracket that Bugatti, Pagani, etc. sell for you can spare the few extra dollars to get a new one and not have someone else's old toy. Plus it seems one of the major manufacturers has a new one off around the corner every year.

If you buy Kris Singh's Pagani you will forever be in Kris Singh's old car and then a Pagani. If you buy a Pagani from some guy in the middle of no where that no one knows about you will never get that type of reaction. If only the two cars were available I would choose the non one off car for the same price then a car everyone knows about because its a "special edition." Just my opinion. There's an ass for every seat.