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$200,000 Lamborghini SUV: A Financial Mistake?

 2 min read / 

The Story

Lamborghini

Source: Lamborghini

Lamborghini has just unveiled the Lamborghini Urus, an SUV equipped with a 4.0l V8 twin-turbo engine. The vehicle gets from 0 to 100 kph in 3.6 seconds and has a top speed of 305 kph. This is the company’s only SUV since the Lamborghini LM002, which was in production between 1986 and 1993 and the company re-enters the SUV market. The Urus will be available from Spring 2018.

Why It’s Important

The Volkswagen Group also owns Audi, Bentley and Porsche, all of which have released high-end SUVs. This begs the question, why release another? The motivation behind producing the Bentley Bentayga, a $230,000 luxury SUV which went on sale in 2016, came from finding that the most Bentley owners also owned an SUV. By appealing to this segment of the market, the model was thought to be very lucrative.

Lamborghini CEO Stefano Domenicali said that he expected the SUV to gain popularity in Asia. Sufficient appetite for SUVs in China, where the luxury automobile market grew by 54% last year, could make Lamborghini’s model a success. However, if triumphant, the Urus could cannibalise many of the sales from other Volkswagen Group manufacturers. Whether this financial decision makes sense relies on capturing market from the likes of the Range Rover, BMW X1 and Toyota Land Cruiser.

The Volkswagen Group’s stock is down today.

Lamborghini

Source: Google Finance

The second-generation Urus will be a hybrid model, and arrive in either 2020 or 2021, says Domenicali.

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