Lamborghini’s Profits Soar During Covid

Lamborghini had its most profitable year ever in 2020, despite a two-month shutdown of its Italian factory during the pandemic.

“We were surprised,” said chief executive Stephan Winkelmann.

While sales were slightly less than the last year, Lamborghini sold costlier, customized supercars, pushing profits higher.

China has fuelled many demands and would overtake Germany as its second-biggest market this year.

Lamborghini’s new sports utility vehicle (SUV) is known as Urus and has been hugely successful, accounting for 59% of the company’s sales worldwide last year.

Chinese car buyers have developed an appetite for ultra-luxury SUVs from the likes of Rolls-Royce, Bentley, and Lamborghini.

“Urus is giving us peace of mind in terms of return on investment and also earnings, and thus the earnings are giving us the arrogance to reinvest within the long run,” Mr. Winkelmann added.

The carmaker, which is owned by Volkswagen, sold 7,430 cars worldwide in 2020, second only to the 8,250 they delivered in 2019.

But Lamborghini saw strong income from its highly profitable “limited special series” models.

“We have already covered with customer orders nine months of the year for 2021,” Mr. Winkelmann said. “So, we are watching the year 2021 in quite a positive bent.”

He told CNBC: “It’s slightly like with the stock markets: the buyer’s spirits are up. they will not wait to the instant to urge out again and to enjoy life.”

Electric cars and China

China is predicted to become the company’s second-largest market this year, replacing Germany for the first time. The US is Lamborghini’s biggest market, with the delivery of 2,224 cars in 2020.

The biggest challenge for Lamborghini is that the tightening of emissions regulations around the world and thus the shift to electric vehicles.

Lamborghini has not announced plans for an electrical supercar, although an announcement could be coming in April.

“We got to anticipate also a change of mind of our customers and thus the enthusiasts also. This is often a very crucial moment for super sports cars, where you’ve to truly set the marks for the long run,” Mr. Winkelmann added.

Reacting to speculation that Volkswagen could sell-off Lamborghini, Mr. Winkelmann said that the “Volkswagen Group is that the proper match for Lamborghini”.

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