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Lamborghini struggles to cap its own production to maintain brand exclusivity

Lamborghinis, Ferraris, Bentleys, and so on demand high prices, and that's not just because you’re buying incredible performance, technology and luxury. YouÂ’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 LamborghiniÂ’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 companyÂ’s newest paint and body shop at the SantÂ’Agata Bolognese plant in Italy. The execs are having limited success, however, as 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. A run of 8,000 cars would be an increase of 39 percent from 2018's total of 5,750 new Lambos. It has been a strong decade for Lamborghini; a mere 1,302 vehicles were sold back in 2010. However, that goal of 8,000 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 itÂ’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.

Weekly Recap: Geneva's splendor reflects growing demand for ultra-luxury cars

Geneva is one of the most glittering auto shows in the world, but the list of high-powered and bespoke luxury cars was decadent this year even by the rich standards of the Swiss exhibition. It's great for enthusiasts to revel in the flame-throwing Aston Martin Vulcan, the racing-inspired elegance of the Bentley EXP 10 Speed 6 concept and the insane performance of the Lamborghini Aventador LP 750-4 Superveloce, but there's a reason for all of this opulence: the luxury market is big business. And it's growing. IHS Automotive forecasts that so-called ultra-premium sales will nearly triple this decade from 123,000 to 353,000 units around the world. The estimate includes brands like Aston Martin, Bentley, Ferrari and Rolls-Royce, but doesn't count BMW, Mercedes and Audi, which offer less expensive models in addition to their high-end flagships. Though IHS includes Porsche and its relatively large volume in the study, the ultra-premium segment is still set grow at about the same rate, even without the German automaker's figures. So what is propelling all of this growth in the most expensive segment of the auto industry? Put simply, there's more rich people. IHS Automotive principal analyst Tim Urquhart pointed to economic expansion in China, market recovery in the United States and a surge in the lucrative technology sector as contributing factors. This dovetails with a research report by UK-based Oxfam, an international relief organization, which found the world's richest one-percent owned 48 percent of global wealth in 2014, and it's expected to increase to more than 50 percent by 2016. View 17 Photos Carmakers are moving quickly to capitalize with new products, expanding their portfolios with low-volume speedsters like the 800-hp V12 Vulcan at Geneva, and plans to enter new segments, like Rolls-Royce's strategy to make an SUV. "Ultra-premium carmakers are looking to explore ways of growing their product offerings, and thus their bottom lines, in this most potentially profitable of segments," Urquhart wrote in a report on the Geneva show. In a nutshell, there are more choices for people with more money. It's a good time to have expensive taste. Other News & Notes 2016 Mazda MX-5 Miata production launches It won't be long now. The 2016 Mazda MX-5 Miata arrives later this year, and it's officially in production. Mazda announced this week that the roadster began rolling off the assembly line at its Ujina factory in Hiroshima, Japan.

The Huracan Performante is still a supercar steal, regardless of 'Ring time validity

When Lamborghini released video of its new Huracan Performante lapping the Nurburgring in a stunning 6:52, not everyone was convinced the record was honest. As a result, Lamborghini's director of research and development provided some data to Roadshow to shore up the lap time claim. He addressed the tire issue by telling Roadshow that the car used the optional Pirelli Trofeo Rs. And he noted that it was quicker than its more powerful brother, the Aventador SV, because it cornered and accelerated faster. He even provided VBox data of the lap. The thing is, none of this really matters in the end, particularly for the Huracan. Let us explain. For one thing, if you're going to question the Performante's time, you should question all of the times. All of these records are presented by the manufacturers, so there isn't a truly impartial party measuring the results and inspecting cars. Even with a company presenting plenty of data and explanations, it's hard to be 100 percent sure everything is on the level without an unbiased third party inspecting the cars before and after the lap, and keeping timing. But besides the issue of impartiality, the times themselves aren't really important. As interesting and fun as it is to compare lap times at the Nurburgring, they're really only relevant for rich owners and car companies to brag, and for less-rich fans to bench race. That's not a bad thing, but to look at the lap time of one single track doesn't really give a full picture of a car's performance. A car that's fast at the Nurburgring could be really slow on a tight course like Streets of Willow Springs. There's also the issue of who's driving the car. The manufacturers put their top drivers out on the 'Ring to set times. If you're not a factory test driver, you'll probably never go that fast even if you did get your car to the track. It's all a bit like the silly "blind" or two-wheeled car records. They don't actually provide much info on what the car is really like, or how you could drive it. Even if you're not on board with this explanation, and trust all the 'Ring records except this Lamborghini, we still have a reason why it doesn't matter. You see, even if you're convinced that there's no way the Huracan could best the Porsche 918 Spyder and the Aventador around the Nordschleife, it's still a screaming supercar bargain. The Porsche is a million-dollar car, and the Aventador, just the base model, is $125,000 more than the Huracan Performante.