Italian government offers incentives to Lamborghini to build Urus SUV in the country

Article by Andrew Christian, on May 10, 2015

The Italian government wants Lamborghini to build its upcoming SUV in the country and to convince the automaker, Prime Minister Matteo Renzi's government may offer up to 100 million euros ($111 million) in tax breaks and other benefits, according to an insider. The government hopes that the final assembly of the Lamborghini Urus, a prototype of which was presented at the 2012 Beijing auto show, will be in Italy.

The automaker has been working on its business case for this vehicle as it aims to get the approval of its parent (VW’s Audi) to start production. If everything proceeds smoothly, this vehicle will be a contender for the sportiest SUV in the world and will be competing with the Aston Martin DBX.

Sources also said that approval is expected by the end of June but it’s difficult to predict the outcome and the timing. In an e-mailed statement, Audi said that no decision has been made yet on the Urus’ series production. Until then, it cannot yet answer where the location of its production will be.

Audi wants Lamborghini to offer other vehicles aside from two-seater supercars, which doesn’t have much of an appeal in markets where there are bad road conditions such as in China.

The last time that Lamborghini had an SUV in its lineup was in 1993 with the boxy LM002 – which is also known as the Rambo Lambo. It’s no coincidence that this move is being made. Last year, most luxury-car builders accomplished record sales as the world’s wealthiest became even richer.

In 2014, Lamborghini’s deliveries increased by 19% to 2,530 cars – its highest ever. In the past, Lamborghini has said that it can potentially sell 3,000 performance crossovers annually, which is more than twice the brand’s current size.

Earlier this year, Audi CEO Rupert Stadler said during an interview that this is an opportunity from the perspective of an entrepreneur. The insiders revealed that other VW plants will produce the chassis and the other key components of the Urus in order to reduce production costs.

One such plant is located in Bratislava, Slovakia, which builds the Porsche Cayenne SUV’s frame. Last year, it was reported that sales may start in 2017. The sources also revealed that up to 300 workers may be added to build the SUV. Lamborghini has also been in talks with local unions to ask for more flexible working hours.

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