Is Lambo on the way out..? | FerrariChat

Is Lambo on the way out..?

Discussion in 'LamborghiniChat.com' started by roytoy2003, May 5, 2010.

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  1. roytoy2003

    roytoy2003 F1 Veteran

    Jul 30, 2004
    9,591
    Full Name:
    Roy L. Cats
    I thought I would post my thoughts here...this started on another thread in regards to when a Gallardo replacement is on the way...lets hear some feed back and see where this goes..??


    I dont think you will see a G successor or talk of it till at least 2012 and then ONLY if the numbers are up for the Flagship replacement car. The truth of the Lamborghini history is it went a different direction then Audi planned when it purchased the company in 1999.

    The purchase was strictly business plan, to obtain propritery R and D info to increase the super car brand of Audi, (i.e. the r-8 and r-10GT cars now). The loss it had anticipated with the Lambo line was an acceptable trade off for this information and developement for the long run.

    Audi NEVER expected to make money off of the Lambo cars tha it was basicaly testing world wide to get to where they are now with the R-8 cars etc..but when the company made it into the Black it was allowed to continue, while STILL passing the R and D onto Audi for the future.

    The a few bad things happen in sucession, starting off with the 62% loss of their market share, the USA going to almost zip...sales down over 70% and still down over 56% for this first quarter. VW buys Porsche, another mass produced market as the Audi cars that it can share info with learned from Lambo.

    Multiple long time factory employee's from Lambo reach mandated 40 year retirement from the Italian Goverment..and are still paid retirement fee's till death by law. The return of a dollar invested is wiped away by the de-valuation of years earlier invested money by todays dollar and other countries, including the Euro value.

    Cost to get the car to market is increased dramaticaly with both goverment requirments, transportaion fuel costs, legal fee's for mounting law suits, strict lemon law buy backs as well as new rules of maintaining back up stock of parts for 10 year warranty replacement costs...mostly fueled by the USA DOT new laws.

    The mandaited "green" requirments from the USA..harshes in the world with almost un-obtainable MPG requirements in the near future. Add to this the dropping of available financing for cars of this cost along with the increased departure of accepteable insurance to be obtained for these type cars in the USA. The new price tags of over $500K wipe out multiple pockets of possible buyers as the price reaches other marques of this value.

    Last nail is the dropping of Dealerships nationwide that can not survive on the sale of just this one marque...but are forced to maintain a seperate showroom, location and or service Dept due to the Dealer agreements. It also does not help that the USA market is now the "step-child" that recieves its new model cars last in line...the first cars go to other areas that are more profitabloe and have a greater return on the product.

    It is a fact of business...if you can not sustain your products profability in an area..you remove yourself from that territory and concentrate on the areas of your strength, you pull back to a smaller base of profability.

    IMO, as a business owner and watching the signs of this direction by Lamborghini..if they CAN NOT get the USA to become a profitable market share quickly..then just as in 2000 they will not import or operate here..and if the slide continues..Audi/VW will look and say.."thanks for all the R and D, thanks for the tax write off's", but it is time to answer to our share holders and produce these "super" cars in our profitable facilitys and not compete against ourself's.

    The last 6 months many USA cars produced by Lamborghini, including the NEW LP670-4SV have left USA soil and re-sold over seas. Even at other countrys costs, it is still better to buy here and transport overseas in a lot of cases, a sign of WHERE the money and profatabilty is.

    If Lambo goes bye bye, JUST in the USA..then there is no question cars that are currently in USA..old school and new school will climb in vlaue rapidly. But as with other marques that have left the USA in the past, Fiat, Masarati, etc etc...a new sub-culture and value rating system for these cars will emerge.
    The success of this new car is very very critical and the "last stand" IMO.

    We can only wait and see...IMO the decision time will be made with in 6 months of the NEW flagships car release to the USA market, December 2011.
    __________________
    If you want to just look at it, buy a poster, otherwise drive like they were built to be driven!
     
  2. EMILIO

    EMILIO F1 Veteran

    Feb 23, 2006
    6,852
    Italia
    if economy picks up in US it ain't going to happen
    US was the biggest market for lamborghini since so many years and is likely to be again in near future

    my 0.02
     
  3. ammoman

    ammoman Formula 3

    Feb 16, 2008
    2,032
    WINDERMERE FLORIDA
    Full Name:
    ERIC
    I think the more important issue is to find out who wrote that for Roy :)
    Eric
     
  4. roytoy2003

    roytoy2003 F1 Veteran

    Jul 30, 2004
    9,591
    Full Name:
    Roy L. Cats
    LOL I even used speel check on this first Ha Ha

    Just for the record..I hope my thoughts DO NOT become reality...
     
  5. 2NA

    2NA F1 World Champ
    Consultant Owner Professional Ferrari Technician

    Dec 29, 2006
    18,214
    Twin Cities
    Full Name:
    Tim Keseluk
    LMAO!
     
  6. Diablo_4_Ever

    Diablo_4_Ever Formula Junior

    Nov 9, 2004
    949
    Netherlands
    Hahaha!
     
  7. speedy

    speedy Formula Junior

    Oct 18, 2005
    625
    Plano, TX
    Full Name:
    James Gardner
    #7 speedy, May 5, 2010
    Last edited: May 5, 2010
    IIRC BMW bought Land Rover in part to develop the SUV (X5) program and then sold it to Ford in 2000 after they were done.


    Do you think Lamborghini will go the way of companies like Land Rover and Jaguar whose ownership bounced around and wound up with another non-eurpoean based company like Tata? Somewhere like the UAE perhaps? Historically speaking, Lamborghinin has been passed around quite a bit so we can say it's just another transitional phase for the company...
     
  8. kosmo

    kosmo Formula 3

    Oct 19, 2008
    1,569
    BIg D
    quote from another chatter:

    "Since Audi now owns Lambo, its just a matter of time before Audi's flagship sports car will be faster and lighter than its Lambo brethren all while maintaining superior ergonomics and luxury over the once Italian marque."
     
  9. ApexOversteer

    ApexOversteer F1 Veteran

    Feb 15, 2007
    5,968
    Smoky Mountains, TN
    Full Name:
    T.A. Bell
    No.

    Is Lamborghini at a crossroads, or entering an era of change? Sure.


    Not while Audi owns Lamborghini. These people are German, not retarded.
     
  10. smooth

    smooth Formula Junior

    Nov 4, 2005
    682
    I'm sorry to say that, I don't think it will actually be "near".
     
  11. Shamile

    Shamile F1 Veteran

    Dec 31, 2002
    6,712
    Lakeland FL
    Full Name:
    Shamile

    Dear Lamborghinisti,

    Well written post Roy but I think I'm with Emilio if the economy picks up. With the Greek debt crisis going on with Portugal and Spain nearing the edge...the US, once again will be a safe haven.

    Sure...we have allot....really allot of sorting out to go, but our economy will bounce back and our American culture will kick in once again.....gotta have it!

    We may in the future be competing for lot consignments with other countries...China, India but the US is still a valuable market and our "car culture" helps.


    Shamile

    Freeze....Miami Vice !
     
  12. BLK03MURCI

    BLK03MURCI Rookie

    Sep 29, 2009
    40
    Michigan
    I agree, its going to take alot of time.
     
  13. BlueBiturbo

    BlueBiturbo F1 Rookie

    May 19, 2004
    3,967
    Jakarta
    Full Name:
    TS
    Must be a glitch in your "speel" check software LOL
     
  14. Dodici Cilindri

    Dodici Cilindri Formula Junior

    Feb 21, 2006
    548
    Great Plains
    With Volkswagen's purchase of Porsche, I would expect that the drive train technology debuted by Porsche in the 918 will not remain proprietary to Porsche. The technology shown by Porsche at the Geneva show would certainly aid both Audi and Lamborghini in meeting the new emissions and mileage standards.
     
  15. CRG125

    CRG125 F1 Rookie

    Feb 7, 2005
    2,582
    Los Angeles, Ca
    Full Name:
    Vivek
    I just spoke to Friend of mine who just came back from the factory. He was there for the 599 GTO unveiling. He said Lamborghini production line was quite dead compared to Ferrari.
     
  16. HolyRoller

    HolyRoller Formula Junior

    Dec 19, 2008
    518
    SE NC
    Full Name:
    Captain Slow
    ummmm, that's on purpose. You have to do that when you decide to stop building one type of car (Murci) and build another type (the next V12) in the same space where you used to build the one you're not building anymore.

    At my friendly local Lamborghini retailer, times were thin for awhile, but now they're picking up again. They have a just-right showroom that's tasteful and elegant while still very friendly, and I can't see how their overhead is particularly extravagant. Tourists are welcome, not just for good manners' sake, but also because they know some squirrels eventually find a nut, and will vividly remember who was naughty or nice. Like any other exotic dealer, most of their volume is pre-owned. People willing to fork over $450k for a new car are rare, but people willing to pay half or a quarter of that for a squared-away used car are not nearly so rare.

    Lambo isn't going away, not in our lifetime. The brand is just too valuable. Not many marques have been on kids' bedroom posters for 40 years, especially compared to the number of actual cars they make.
     
  17. Eric308gtsiqv

    Eric308gtsiqv Formula 3

    Nov 26, 2001
    1,955
    Orange Park, Florida
    Full Name:
    Eric Eiland
    Roy, and others...

    ...just thinking out loud here, but what if Lambo was to introduce another "Jalpa" type car at the entry level of their model line-up -- one that could be flexible enough to both incorporate / share a good bit of technology from the sister brands and be tunable to meet CAFE requirements? Perhaps an 8-cyl. based vehicle would compete well with other brands in that sport-car segment (i.e., Vette, F430, Alfa 8C, M3, GranTurismo, etc.)?
     
  18. qvpower

    qvpower Formula Junior

    Apr 18, 2004
    618
    Cali
    chances are if they did that, the gallardo series will be seriously affected by this. The proper way is to build the estoque, mark it at a sub 200 msrp and move some volume there. There are plenty of markets where the practicality of a sedan coupled with the brand of the bull are priorities compared to the sports car market...
     
  19. Miura Jota

    Miura Jota F1 Rookie

    May 26, 2004
    3,632
    Toluca , Mexico
    Full Name:
    Martin
    All they need is a volume $$$ car

    It could either a Quattroporte competitor or a light unexpensive V8 or even V6 sports car ...

    and we all know VAG is capable to manage that
     
  20. SuperVixen

    SuperVixen Formula Junior

    Jan 8, 2007
    362
    San Francisco
    Full Name:
    Super Vixen
    Interesting discussion. I recently spoke with someone that has worked for Lamborghini for almost 20 years in the states. He actually believes that Vik Keuylian is responsible for quite a bit of Lamborghini's struggles since he gave cars away for pennies on the dime and screwed VW credit. I think the combination of all things mentioned thus far will contribute to Lamborghinis troubles in the states and world wide. They make amazing machines and I truly hope they survive and thrive.
     
  21. patpong

    patpong Formula 3

    Jul 6, 2004
    2,274
    Bangkok, Thailand
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    Patpong Thanavisuth
    #21 patpong, May 11, 2010
    Last edited: May 11, 2010
    IMO... Audi owning Lamborghini is the best decision and the best thing for Audi in a long time. Audi marque has earned itself another level higher in the technology and luxury products and has been accepted very well. I don't know the number, if Audi loosing money selling Lambos but what about the number of Audi's sold after becoming Lambo owner. I think that number is most important to Audi... Non of the Supercars makers alone make a lot of money. But the supercars are most important to stand as the highest in technology and image for the maker. I don't think the reason Mercedes Launched their supercar "the SLR " was to sell the SLR, but to show the world what Mercedes were capable of doing the highest tech. products and that to give customer confident on their mass. produced cars.

    One of this day, these giant mass. car producers will buy out Bugatti, Pagani,... The same thing Fiat did it and great with Ferrari...
     
  22. ryalex

    ryalex Two Time F1 World Champ
    Consultant Owner

    Aug 6, 2003
    24,983
    Las Vegas, NV
    Full Name:
    Ryan Alexander
    #22 ryalex, May 12, 2010
    Last edited: May 12, 2010
    This is key - keeping overhead down and supply under control. They're just in a retraction period, probably for the next 2-3 years, as the world economy re-adjusts to a new lower equilibrium. The time where everyone was spending credit like drunken sailors and you could get 12 year financing on a young mortgage broker salary is done for now. If anything, early Gallardos have been surprisingly buoyant at $90-100k. They quickly fall to $120k then only slowly descend thereafter.

    What makes me sad is that even in Vegas we lost our dealer and here there is a disproportionate number of late model Lambos. I see more Gallardos lately, but there was a period a few years ago where I'd see Murcis and Murci Roadsters with regularity.


    Patpong - Bugatti's newest iteration is a complete VW/Audi creation. They've owned the brand for a while.
     
  23. kverges

    kverges F1 Rookie

    Nov 18, 2003
    3,179
    Dallas
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    Keith Verges
    Hard to say the Lambo future; not only is the economy contracting, there is a sea change in the political correctness of expensive, gas-guzzling new cars. I know more than one luxury/exotic owner who eschews those cars now infavor of hybids or other more frugal cars.

    In other words, the "image" buyer may no longer want the image, even if he/she has the money.

    I think this hurts Lambo worse than some other marques, since the cars are more poseur than performance in many respects. The Gallardo was the reason I bought a Lambo. Better than the 360 in every way, and reliable to boot.

    Then Ferrari came out with the 430, now the 458 Italia and the tweaked G just does not cut it.

    Worse, IMO, is that Lambo refuses to engage in motorsports. All motorsports efforts go to Audi, and the R8 is basically the same as the G in terms of performance, with a motorsports pedigree.

    I can say that I am not in the market for a Lambo, even though I have bought 3 new Gs and have a G currently that I love. The meteoric depreciation, lack of motorsports heritage, and flagging performance leave me cold on a new Lambo.

    Finally, I guess I was too stupid to realize it going in, but I did not buy my G to dazzle chicks, valet park at "in" spots, etc., and it seems that far too much of the marketing and owner ranks really want the car for those reasons. I am actually embarassed by some of the Lambo owner antics I see from time to time - every bit as bad as the "gold chain" rep that I think has hurt the Corvette (which I also own).

    While I think all new exotics are a waste of money, my current radar is in the MP4-12c, maybe 458, but not on anything Lambo.
     
  24. Napolis

    Napolis Three Time F1 World Champ
    Honorary Owner

    Oct 23, 2002
    32,118
    Full Name:
    Jim Glickenhaus
    IMO unless their US sales rise sharply it will be impossible to keep a US dealer network.

    You can't run an entire US dealer network selling only 17 new cars a month.
     
  25. smooth

    smooth Formula Junior

    Nov 4, 2005
    682
    Their marketing logic has been self-destructive, for sure. Maybe it's time to 'clean house'. :(
     

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