Tuesday, January 13, 2009

No Auto Bailout for Lamborghini that Sets Sales Records for $200,000 Sports Car

The ANNOTICO Report

Lamborghini sold a record 2,430 vehicles whose prices start at $200,000.

Growth in China, South Korea and the Middle East helped overcome a 20 percent decline in U.S. sales

Lamborghini Sets Sales Record, Defies Slump With $200,000 Cars

Bloomberg News

By Mike Ramsey

January 12, 2009

Automobili Lamborghini SpA, the Italian sports-car maker whose prices start at about $200,000, posted record sales last year and plans to add dealerships now, defying the industrywide slump thats draining U.S. rivals.

The automaker sold a record 2,430 vehicles globally in 2008, up 1 percent, after adding 15 dealerships, Chief Executive Officer Stephan Winkelmann said in an interview at the Detroit auto show today. He declined to specify the companys pretax profit, saying only that it also set records.

Lamborghini, a Volkswagen AG unit, is tapping the newly wealthy in China and South Korea. The company will add 10 dealerships this year in areas of wealth around the world to counter a sales decline in the U.S. and other markets that were hurt most by the collapse in financial markets, Winkelmann said.

We have been affected by the global financial crisis, he said during an interview at the North American International Auto Show. I cannot say what will happen to sales.

Lamborghini, based in SantAgata Bolognese, Italy, is financially healthy and committed to continuing to introduce new versions of its two, two-seat models each year, Winkelmann said.

Lamborghini has 122 dealerships worldwide.

The company has no plans to offer a less expensive model to compete with Fiat SpA's Maserati, which start at $115,000, he said. The automaker is considering production of a four-door prototype that was unveiled at the Paris Motor Show last year.

Biggest Market

Growth in China, South Korea and the Middle East helped overcome a 20 percent decline in U.S. sales in 2008, Lamborghini said in a statement yesterday. The U.S. share of sales fell to 31 percent from 39 percent while remaining the biggest market.

China more than doubled its sales to 72 cars from 28 a year earlier, according to the statement.

Lamborghini also is gaining revenue from licensing its name on products such as mobile phones and clothing, and it started an engineering consulting business, Winkelmann said.

The company isnt considering producing an electric sports car similar to Fisker Automotive Inc. or Tesla Motors Inc. because electric motors cannot yet produce the required top speed to qualify as a legitimate Lamborghini, he said.

The average Lamborghini customer waits six months to get a car after placing an order. Each vehicle is typically made to specifications and hand-built, said Soon Nguyen, a spokeswoman.

http://www.bloomberg.com/apps/news?pid=20601087&sid=adSHLZwQr3To&refer=home

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