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Lamborghini will cap its own production to maintain brand exclusivity

The problem is that higher production volume compromises exclusivity and dilutes the brand.

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By Chris Chin, Autoblog

Lamborghinis, Ferraris, Bentleys, and so on demand high prices, and that's not just because you’re buying incredible performance, technology and luxury. You’re also buying exclusivity. Recently, however, Wall Street and shareholders have been pressuring supercar makers to produce more cars and yield more profits. The problem is that higher production volume compromises exclusivity and dilutes the brand.

So while Lamborghini’s shareholders want the company to produce more cars, executives are seeking to impose limits and cap production.

"We must not go on growing forever. We now have to consolidate these results and preserve exclusivity," Lamborghini CEO Stefano Domenicali told reporters at an event inaugurating the company’s newest paint and body shop at the Sant’Agata Bolognese plant in Italy.

The company announced that it plans to sell more than 8,000 cars this year, which is “the right dimension of our company with our current product portfolio,” Domenicali said.

However, that number could swell to around 10,000 cars, depending on whether the company adds another model to its small lineup. Such a case would have to be deliberated among shareholders.

Lamborghini saw considerable growth in the first quarter of this year, likely attributed to the launch of its Urus SUV. So far, analysts are forecasting an increase in revenue to around 1.7 billion euros, or $1.92 billion USD, up from 1.42 billion euros or $1.6 billion USD in 2018, said Chief Financial Officer Paolo Poma.

At the same event, Lamborghini confirmed that an electric supercar is not in its future at this time as “customers are currently not interested,” Poma said.

However, Lamborghini is indeed seeking to add hybrid vehicles to its lineup by 2025, as it’s pressured to lower CO2 emissions and meet future mandates. The Urus is expected to be one of the cars receiving a hybrid powertrain, as it is not planned to get a V10 or V12 engine.

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Autos News: Lamborghini will cap its own production to maintain brand exclusivity
Lamborghini will cap its own production to maintain brand exclusivity
The problem is that higher production volume compromises exclusivity and dilutes the brand.
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