The Volkswagen group owns the majority of the car brands that people are familiar with. They have created a huge production empire and have used this extensive catalog of cars to help make them more efficient.
They use the same parts, chassis, and technology through several of their brands to minimize cost and maximize output. However, the decision to not sell Lamborghini when a buyer came forward with a generous offer is for a different reason.
VW has kept Lamborghini under their umbrella for years and they have no intentions of letting the brand go. Let's take a look at why Lamborghini has a prominent and valuable place in the VW family.
A Generous Offer
Before we talk about the huge sum that VW turned down we need to establish the brands in their roster. Along with Volkswagen, the late Ferdinand Piech's automotive empire spans across Europe and owns the most lucrative and successful brands around.
Audi, Porsche, Skoda, and Seat. Lamborghini, Bugatti, and Bentley. Any type of car you need or want the VW group has something for you. They even cater to motorbikes with Ducati and to trucking with Scania. This versatility and range is a unique position to be in and VW certainly knows that.
At the end of May 2021, Volkswagen reported receiving an offer of $7.5 Billion for Automobili Lamborghini. The offer entailed an acquisition with a five-year supply contract of parts with Lamborghini’s parent brand, Audi, and with five-year job security for middle-to-senior members of staff.
The Volkswagen Group’s official positioning on Lamborghini has been for years that the Italian supercar icon is not for sale. Although it is not against offloading brands, as Bugatti is due to change owners, and Ducati recently being announced for sale.
The offer, detailed in Autocar Magazine, was made by the Quantum Group AG to Volkswagen Group CEO Dr. Herbert Diess and his management team. It came as quite a surprise as Quantum has no history of automotive manufacturing at all.
Quantum Group is owned by Rea Stark, one of the co-founders of Piech Automotive, which debuted their Piech Mark Zero GT at the Geneva auto show back in 2019. The other founder is none other than Anton Piech, the son of Dr. Ferdinand Piech, who was chairman of the board of the Volkswagen Group from 1993 to 2002. He had sold his Volkswagen Group holdings to the rest of the Porsche family before his death last year.
Lamborghini's Future
The ludicrous supercar manufacturer has been under the Volkswagen umbrella since 1998. And after the quick refusal of the offer ins obvious that VW has plans in place for the direction they want to take Lamborghini in the coming years.
Since its inception in 1963 Lamborghini hasn't been known for churning out cars to make money. They like to perfect the madness they put out to the public. Currently, only 3 models are in production and only 14 models have been released since their beginning.
We also have heard recently that by 2024 Lamborghini has plans of switching its entire production line up to electric. VW has big plans for Lamborghini in mind and letting them be bought out is certainly not a part of them.
The Aventador, Huracan, and Urus will all be getting an electric/hybrid re-work, and plans for a 4th full-electric model are said to be in the works for a due date of around 2025.
We're not quite sure what this change will mean for the infamous Lamborghini V12 that we have grown to love over the years. But it's good to see that Lamborghini has begun thinking of the future.
Other brands have already started taking the steps forward to make this inevitable change so Lamborghini has some catching up to do before they release anything to rival the likes of the La Ferrari.
Lamborghini hasn’t said whether it plans to completely stop the production of its gas-powered vehicles, but CEO Stephan Winkelmann said the company is aiming for at least a 50 percent reduction of its entire CO2 emissions by the start of 2025.
Lamborghini certainly had benefitted from being in the Volkswagen family. This relationship goes both ways though as many engines and parts developed for Lamborghini trickle their way down into production Audi's such as the Urus and the RSQ8 which are almost identical in technology.
The next few years for Lamborghini will be crucial. They aim to invest at least $1.8 Billion into their transition to electric and judging by their portfolio we are sure the results won't disappoint.
The VW Group has accommodated Lamboghni in their business model and it's good to see that they're not going anywhere. With a buy-out offer as large as that being declined it's clear that VW has some big ideas lined up for the future.