[AshSimmonds]

Lamborghini Order Cancellations Increase Under Weight Of Economic Crisis
Mar 6th, 2009 • by Dan Fewster
It doesn’t seem to matter if a manufacturer is big or small, producing premium products or volume-selling commuters - the economic crisis is biting everyone in some way or another.

Lamborghini CEO Stephan Winkelmann recently confirmed that the Italian marque is not immune, and is seeing a significant increase in order cancellations as the economy continues on its downwards spiral.

Sales figures for the luxury market appear to be down around 40 percent for the first two months of 2009, but Wikelmann noted that Lamborghini has not experienced a decline of that magnitude just yet.

There’s a silver lining, however, for those who haven’t cancelled their orders: cars currently on order will be delivered faster due to the drop in demand. An expected wait time of over one year has now dropped to just six months.

Lamborghini has so far received 100 orders for the new Murcielago LP 670-4 SuperVeloce, for which only 350 examples will be made. In a healthy economy, all 350 units would have likely sold out by now, if not almost immediately.

Winkelmann explained that despite the financial difficulties facing Lamborghini, the brand would not be looking at producing cheaper, volume-selling models. The focus will remain on maintaining profitability, without diluting the legendary brand.

A full 20 percent of Lamborghini’s 1000-person strong workforce was temporarily cut for two weeks last month and it’s uncertain if or when further cuts will be made.

http://www.themotorreport.com.au/22638/lamborghini-order-cancellations-increase-under-weight-of-economic-crisis/

[AshSimmonds]

Lamborghini sees no recovery until 2011

By Jo Winterbottom

PARIS (Reuters) - Luxury sports carmaker Lamborghini sees no recovery in its markets until 2011 after a 30 percent drop in sales in the first five months of this year, Chief Executive Stephan Winkelmann said on Wednesday.

Still, first-half figures would be positive, and the company, based in Sant'Agata Bolognese in central Italy, would achieve a full-year pre-tax profit, Winkelmann told the Reuters Global Luxury Summit.

"We could stay profitable with sales that are dropping at 40 percent (in 2009). We are foreseeing a scenario that is staying on the same level next year and coming back in 2011," he said. "I'm prepared to face another tough year in 2010."

Known for its low, sleek designs and high top speeds, Lamborghini identifies itself as "uncompromising and extreme." Its badge carries the image of a bull.

"We are the bad boys," Winkelmann said. Its main competitor is Ferrari, owned by Italian carmaker Fiat.

Lamborghini was founded in 1963 by Italian Ferruccio Lamborghini. It is now a unit of the Audi brand, owned by Europe's biggest carmaker, Germany's Volkswagen.

Lamborghini sold 2,430 cars in 2008 and prices range from 170,000 euros to 360,000 euros, Winkelmann said.

Its biggest market is still the United States despite a fall in sales of over 40 percent there in the first five months. Winkelmann said he expected China to overtake Italy as its second-biggest market in the next three to five years, up from ninth-biggest last year.

Lamborghini boosted pre-tax profit by 27 percent in 2008 to 60 million euros ($84.66 million) on revenue up 2.5 percent to 479 million as it cut costs.

Winkelmann said the company had cut production by 30 percent in line with the sales fall this year. But even so, waiting time for deliveries had fallen to 6 months from over a year.

DEEP CRISIS

Lamborghini is in "constant dialogue" with its suppliers to help them "bridge a difficult situation," Winkelmann said. It has temporarily laid off workers for seven weeks in total so far under an Italian state-supported scheme.

"We are in the middle of the line between suppliers and dealers and we also have to deal with the unions," he said.

The company has lost customers in real estate and investment banking markets which have been hit very hard by financial market turmoil and the credit crunch.

"I think the crisis is very deep," he said.

But many customers were simply postponing purchases as the decision to buy a Lamborghini was emotional and financial.

"You buy it because it's a dream," he said.

But even Lamborghini must cut carbon emissions to comply with European Union targets. It has agreed an individual target because of its small size to cut emissions from its cars by 35 percent over the next six years.

The average car produces 150-160 grams of carbon dioxide per kilometer while the average Lamborghini produces more than 400 grams. The EU's target for most carmakers is 120 grams by 2012.

http://www.reuters.com/article/GlobalLuxury09/idUSTRE5591XB20090610

[Fil-Ski]

There’s a silver lining, however, for those who haven’t cancelled their orders: cars currently on order will be delivered faster due to the drop in demand. An expected wait time of over one year has now dropped to just six months.

Love that quote. The silver lining is that your car is going to depreciate a whole lot faster then normal.