Volkswagen could sell Lamborghini by end of next year, to focus on main brands VW, Audi, Porsche

Volkswagen is readying to fold Lamborghini into a separate legal entity, in a process that may wind up toward the end of next year, Bloomberg reported, citing sources.

By: | Published: October 12, 2019 3:55 PM
lamborghini Terzo Millennio concept Lamborghini Terzo Millennio unveiled recently at Frankfurt Motor Show 2019

Volkswagen Group is mulling over options for supercar maker Lamborghini, including sale or stock listing, according to a Bloomberg report. Lamborghini Chief Executive Officer Herbert Diess had said in March this year that the group was reviewing its brand portfolio to decide whether to divest some non-core businesses. Just last month, Diess was also quoted saying that the company is working to free up space to develop and mass-produce electric vehicles. Also, Lamborghini has been doing well lately especially after the launch of its first SUV Urus and is now valued at $11 billion, making it a viable candidate for an initial public offering.

Volkswagen is readying to fold Lamborghini into a separate legal entity, in a process that may wind up toward the end of next year, Bloomberg reported, citing sources.

Diess plans to focus future expansion on the group’s main global brands -- VW, Porsche and Audi -- in a push to channel resources more efficiently and avoid duplicated efforts.

The 60-year-old CEO often emphasizes the urgency of maximizing VW’s value as it contends with a costly technology transition, and recently key members of VW’s founding Porsche-Piech clan have voiced support. He’s targeting a market value for Volkswagen of $220 billion, the people said, from about 81 billion euros now. His efforts are aimed at helping VW defy the auto industry’s current gloom and keep both existing peers and new rivals from the technology industry at bay.

Amid slowdown, Lamborghini sells 50 units of Urus within 12 months in India!

The Bloomberg report further adds that in intense debates earlier this year, VW’s top management decided against pursuing the sale of units like Bugatti for now, partly because it was unclear if sub-scale assets could be divested without paying cash on top, according to one person. Still, smaller nameplates might face reshuffling going forward.

Volkswagen had aggressively expanded under the leadership of Ferdinand Piech, who was chief executive and chairman between 1993 and 2015, acquiring Bentley, Bugatti, and Lamborghini in a single year.

Do you know What is Anti-Lock Braking System, Power Steering? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Get the latest cars price and upcoming bikes price in India exclusively at Financial Express. Stay tuned for new cars and bikes reviews, follow us on twitter, Facebook and subscribe us on YouTube for latest auto news.

Next Stories
1JLR sales show recovery, down by 0.5 per cent
2‘Major part of our expansion will be in Tier-II and Tier-III cities’
3Hyundai’s Venue leads compact SUV segment, bookings cross 75k