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The rationale behind Lamborghini's Urus

If you've been following developments in Sant'Agata Bolognese lately, you'll know that the world's most unabashed supercar producer is adding an SUV. Code-named "Urus," it will join the brand's existing two-model (Aventador/Huracan) lineup. It's a bold move for a company with a reputation built on iconic two-seaters including the Miura, Countach, and Diablo, and by its CEO's own admission the decision "will radically change Lamborghini." Why risk the company's exclusive, extroverted image on a vehicle associated with mundane tasks and parents who can't bear the thought of driving a minivan? Two reasons, says CEO Stephan Winkelmann. "The SUV Segment is still fast growing worldwide," he notes. Indeed, global demand for SUVs is up 88 percent since 2008, making utility vehicles the fastest-growing segment around the world, according to IHS Automotive. Utilities now comprise 19 percent of the global vehicle market. In addition, "sales can be equally distributed over our three major regions...the Americas (the US is Lambo's top market), EMEA (Europe, Middle East, Africa), and Asia Pacific." Lamborghini expects Urus to double sales from its current 2,500 cars per year to nearly 5,000. Adding a third model line "supports more consistent volumes and competitiveness of the company and our dealers," he continues. Further, Winkelmann maintains that an SUV fits the DNA of Lamborghini. "Our brand has a history of many types of cars such as GTs, super sports cars, and with the LM002 from 1986 to 1992, even an SUV. We learned together with our designers and product people that the SUV represented this opportunity the best." Structural implications include an expansion of the diminutive company's roughly 1,200-employee workforce by 50 percent, or 500 new hires, and the construction of a new facility near its headquarters to build the Urus. Building the new Lamborghini in Bologna is key to differentiating Urus from the other Volkswagen Group premium SUVs (Bentley Bentayga; Porsche Cayenne; Audi Q7 and Q8; and Volkswagen Touareg) that will share the same platform, and Winkelmann put great effort into persuading VW the move made economic sense. "We worked many months building the business case for approval because we are convinced the SUV will be a success and the best place to build it is in Sant'Agata Bolognese," Winkelmann stresses. "We are not simply adding another line in an existing building. Rather, we are talking about greenfield construction.

VW Group to split brands under four holding companies

The Volkswagen Group is planning a tremendous shift in its internal structure that will decentralize operations by splitting its 12 brands into four different holding companies. Here's the breakdown. Things will be split logically, considering the inter-sharing of parts, platforms, and engines. The Volkswagen brand, Seat, and Skoda make up a passenger vehicle division led by former BMW man Herbert Diess. Audi, which is tightly intertwined with Lamborghini and motorcycle manufacturer Ducati, will be managed by current Audi exec Rupert Stadler. Porsche and Bentley, which are already quite close, will be joined by Bugatti and run by Matthias Mueller. Finally, a commercial vehicles division will include Volkswagen Commercial, Scania, and Man. Former Daimler exec Andreas Renschler will take care of the big vehicles. The massive move, according to Automotive News Europe, is part of an internal VAG effort to move away from the structure established by ousted Chairman Ferdinand Piech, who favored a compact, but highly centralized, management structure to oversee the independent actions of the company's brands. Criticism of Piech's arrangement stemmed from the company's slow responses to changes in the market, ANE reports. The new structure should make for a more efficient, streamlined company that's better able to make crucial decisions. What are your thoughts? Should VAG decentralize, or did Piech have the right idea? Have your say in Comments.

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.