Lamborghini: Why would VW sell and why would someone buy? Car News

You might imagine that record profits over the past year would make Lamborghini indispensable to the Volkswagen Group, where it has resided since 1998, adding a much-needed spark to its otherwise predominantly mainstream presence.

But the truth is, whether the offer Autocar won yesterday is accepted or rejected, Lamborghini’s chances of a sale are even greater.

Why this? For starters, the account cards are a good read, especially for giddy investors coming out of the gloomy days of recent months, and although some of the cost-cutting measures linked to the pandemic have undoubtedly bolstered the results.

These record profits and an impressive turnover (thank you, Urus SUV) will only drive up the price for any bidder. This new £ 6.5bn offer is punchy enough, even against the bullish £ 4.3bn IPO of Aston Martin (admittedly in deficit) in 2018.

But why, aside from a hard-hitting valuation, would the Volkswagen Group sell?

While it’s fair to say that its cash reserves exceed those of many rivals despite Dieselgate’s estimated £ 27 billion costs, it is a hopeless time for established carmakers as they balance the investments in new products that they must sell today and tomorrow compared to the vast. the sums needed to move into a new era of electrification, connectivity, autonomy and more five years later. The funds needed amount to hundreds of billions and must come from somewhere.

So this is it Volkswagen – like any manufacturer – is not just in a fight for relevance but for survival. In this context, offloading a small profit center like Lamborghini for a good price starts to make more sense, at a time when its business model, built around potentially out of phase, fast, noisy and gasoline-powered supercars, is gaining momentum. against a clock that is ticking.

Rolling into the fact that at some point Lamborghini also has to make the transition somehow and it’s clear why ownership could easily be a headache that Wolfsburg could do without.

Sure, the Porsche Taycan may give clues to what’s possible, and the likes of Lotus, Nio, and Rimac may be about to demonstrate that electric supercars have new global relevance, but the journey is long – and potentially. crippled for at least a decade by the simple fact that many will conclude that their wares are just not as good, in visceral capacity, as they were before.

Why, then, would he want to buy Lamborghini?

Despite its turbulent past, Lamborghini today rests on a more solid foundation than ever, the Volkswagen Group having been a decent patron, investing in facilities and technical leadership and stretching the customer base and product portfolio (thanks again, Urus) to such an extent that its foundations are stronger than many in its industry (think Turbulent 18 months of Aston and McLaren), so far from rivaling Ferrari (which is valued at £ 20bn).

With the assurance of technical collaboration with the Volkswagen A group certain to be part of any agreement to at least cover the challenges of the most turbulent years to come, the buyer could in theory give the company more freedom by separating it from the strict demands of Wolfsburg.