Lamborghini sees tariff menace to US volumes after robust 2024 outcomes

MILAN (Reuters) – Potential U.S. tariffs on European-made merchandise may hit income at Lamborghini, its CEO stated, because the sports activities carmaker posted robust outcomes for final yr, regardless of a contraction within the luxurious market.

The Italian carmaker, a part of the Volkswagen group, stated on Thursday its revenues rose 16% final yr to three.09 billion euros ($3.31 billion), whereas its working revenue was up 15.5% to 835 million euros, topping the 800 million euros threshold for the primary time.

Chief Govt Stephan Winkelmann stated the corporate now had an order e book masking 18 months and its goal was to protect it in coming years, to attain “managed development”, as potential U.S. tariffs may add additional uncertainty to an already contracting luxurious market.

Lamborghini bought a file 10,687 automobiles final yr, with round 3,000 models in america, its single largest market.

Requested concerning the automaker’s capability to cross on potential U.S. tariffs to automobile consumers to protect margins within the nation, Winkelmann stated in a media name that there was a “candy level”.

“For those who transcend that you simply lose volumes, that may be a reality,” the CEO stated. “We have to assess what our rivals do and the way American purchasers react, however there’s a danger on volumes for certain.”

Winkelmann stated the broader luxurious automobile market noticed a ten% contraction final yr versus 2023.

“Our feeling is {that a} post-COVID bubble is over,” he stated.

“Whereas such sudden development in our market was surprising, we knew it couldn’t final perpetually. Specifically there was a contraction within the Chinese language (luxurious) market. Our market is now stabilising”.

Lamborghini’s development has been accompanied by 1,000 new hires up to now two years, with a 30% enhance within the firm’s direct workforce.

British luxurious automaker Bentley, additionally owned by Volkswagen, on Wednesday posted its lowest annual income for the reason that COVID pandemic struck in 2020.

Lamborghini, which plans to launch its first fully-electric mannequin in 2029, now has a completely hybrid three-model line-up, with the Urus SE SUV, the Revuelto sports activities automobile and the brand new Temerario sports activities automobile, whose first deliveries are anticipated between the top of this yr and early 2026.

Promoting costs for Lamborghini vehicles begin from over 260,000 euros. ($1 = 0.9341 euros)

(Reporting by Giulio Piovaccari; Modifying by Keith Weir)