Italy grants tax breaks for Lamborghini’s SUV production

Article by Christian Andrei, on May 27, 2015

Lamborghini has entered an agreement on tax breaks with the Italian government and will soon roll out a new SUV in Italy, according to insiders. The announcement will be made in a press conference set in Rome on Wednesday that will be attended by Lamborghini chief Stephan Winkelmann and Rupert Stadler, the CEO of its parent company Audi.

Italy's Prime Minister Matteo Renzi will also be present to announce the deal. The automaker expects to create jobs for up to 500 people. In return, the Italian government will grant tax breaks and other benefits amounting to 80 million euros ($87 million). Audi aims to add more to its lineup currently composed of two-seat supercars.

Emerging markets like China are not inclined to buy these supercars because of the poor roads in their regions. This SUV that will be built in Italy will be its first since 1993, which is when it stopped production of the boxy LM002 (also known as Rambo Lambo). Sources said earlier this month that there have been several meetings between Lamborghini’s officials and representatives of the Italian government.

Sources shared that to reduce costs, Volkswagen Group plants like the one in Bratislava, Slovakia, will make the chassis and other key parts. These plants build the Audi Q7 and VW Touareg and the frame for the Porsche Cayenne SUV.

These three SUVs are built on the same underpinnings. Lamborghini is planning this SUV as majority of luxury automakers reported record sales in 2014 as the wealth of the world’s rich has gone up. Lamborghini’s deliveries reached 2,530 cars last year, setting a record with its 19% increase.

The automaker has said the past that it can reach annual sales of 3,000 SUVs, more than double the brand’s current size. This model will consider other ultraluxury SUVs like the Maserati Levante and Bentley Bentayga as rivals. On May 22, Lamborghini was able to renew its labor contract with unions in Italy.

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