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Lamborghini financials not so bullish!

Written By: DChetty

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March 12, 2010

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With the massive collapse of the motor industry last year, Lamborghini found itself in a spot of bother when demand for their cars dropped substantially throughout the year and the value of the US Dollar was slapped around with a trout. One can not ignore the value of the US market for the Italian luxury super car manufacturer and the hit to the US economy had the Italians eating crackers and cheese for dinner to save costs.

With last years turnover down to 281 million Euro from previous years 478.8 million Euro and reduction of manufactured cars by a whopping 37.7% which saw 1 515 units being built instead of the 2430 built the previous financial year, the Italian super car manufacturer definitely did feel the financial crunch.

Now if you know anything about the way these guys decide how to roll their cars out, you would know that when it comes to super cars, they always manufacture less cars than the general demand. This helps maintain its prestige, keeps pricing high & creates a shortage which drives demand even further. It’s a trick out of the late great Enzo Ferrari’s playbook and one worth keeping in mind if ever you get into any kind of business.

BUT, and this is a huge but… while Lambo turnover dropped, car sales plummetted and the Americans all moved out of their picket fenced houses into motor homes, the Italians have thrown more money at R&D and will increase their spend again this year from last years increase of about 33%.

Lamb will continue to kick out a new model a year and will remain committed to being a long-standing prestigious brand that represents brutal power. Expect the Lamborghini to roll out the Gallardo LP570-4 Superleggera, which will help them balance their Galardo and Murcielago ranges with a drop-top, coupe and high performance model in each stable.

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About Author

DChetty

Dee Chetty is a South Africa- and India-educated web junkie. Focusing on strategy and new developments, Dee finds himself pushing the limits of innovation with his ideas. Dee loves open-source, mobile technologies and location-driven applications. He is an Apple fanboy & a die-hard Audi fan.

(2) Readers Comments

  1. Darren
    March 12, 2010 at 7:55 am

    Interesting info, did you get hold of a full set of financials or just revenue numbers? Would be interesting to see how the rest played out considering their operational improvements in recent years, and considering they used to sell only about 200 units a year a decade ago.

  2. DChetty
    March 12, 2010 at 8:01 am

    @Darren - I got revenue numbers and sales figures for the last fin year. I am sure that their financials will be published along with VW, Audi and Porsche in coming weeks. They have definitely benefited massively by being part of the group and have been cushioned from the snarling bank managers. This is also parallel to the fact that Audi was the only car brand to see an increase in sales last year. VW clearly has figured out a "staying" formula for their brands and stand strong against all negative financial factors recently. It's definitely worth giving kudos to them!

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