Lamborghini sees tariff threat to US volumes after strong 2024 results

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Lamborghini sees tariff threat to US volumes after strong 2024 results


Lamborghini CEO Warns of Potential Tariffs’ Impact on European Made Products

Summary: Lamborghini’s CEO, Stephan Winkelmann, expressed concerns over potential US tariffs on European-made products, which could negatively impact the company’s revenue. Despite a strong 2023 performance, with a 16% revenue increase and operating profit of 835 million euros, the luxury carmaker faces uncertainty in the currently contracting luxury market.

Introduction: Lamborghini, part of the Volkswagen group, has reported strong financial results for 2023, with a 16% revenue increase to 3.09 billion euros and a 15.5% operating profit growth to 835 million euros. However, the company’s CEO, Stephan Winkelmann, is cautious about the impact of potential US tariffs on European-made products, which could lead to a contraction in the luxury market.

Potential Tariffs and Market Contraction:

  • Lamborghini’s growth is accompanied by a 1,000 new hires in the past two years, with a 30% increase in the company’s direct workforce.
  • The luxury car market has contracted by 10% versus 2023, with a post-COVID bubble dissipating.
  • CEO Winkelmann believes a "sweet spot" exists for passing on potential US tariffs to car buyers, but going beyond this could lead to lost volumes.

New Models and Electric Future:

  • Lamborghini plans to launch its first fully-electric model in 2029.
  • The company now has an entirely hybrid three-model lineup, including the Urus SE SUV, the Revuelto sports car, and the new Temerario sports car.
  • Selling prices for Lamborghini cars start from over 260,000 euros.

Conclusion:

Lamborghini’s strong 2023 performance is a testament to the company’s ability to adapt to the changing luxury car market. However, the potential impact of US tariffs on European-made products remains a significant concern for the company. As the market continues to contract, Lamborghini’s focus on controlled growth and innovation in its electric future will be crucial for the company’s success.

Keywords: Lamborghini, US tariffs, European-made products, luxury car market, COVID-19, electric cars, hybrid models.

Hashtags: #Lamborghini #USTariffs #EuropeanMadeProducts #LuxuryCarMarket #COVID19 #ElectricCars #HybridModels



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