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Thu, Jan 15, 2009
Reuters
Lamborghini to add showrooms

By Poornima Gupta

DETROIT (Reuters) - Italian sports car maker Lamborghini is looking to expand its dealer network, especially in China and Latin America, even as the global economy continues to sputter.

In an interview at the North American International Auto Show, Lamborghini CEO Stephan Winkelmann said the super-luxury car maker is feeling the fallout from the credit crisis and the economic slowdown.

"We are not unaffected by the global crisis," Winkelmann said, adding that the global economy has not touched bottom yet.

"I don't think it will be back on track in 2009," he said.

Lamborghini, whose cheapest Gallardo model starts at about $200,000 (S$297,040), has seen cancellation of some orders for its hand-made vehicles.

"The order banks are shorter," Winkelmann said, adding that the typical 12-month backlog in customer orders is now down to about 6 months.

Winkelmann declined to forecast Lamborghini's sales for the year but said they would probably decline.

The company, part of Volkswagen AG's Audi group, had to close its sole factory in Sant'Agata Bolognese, Italy, for eight extra days because of the weakness in the auto industry.

Winkelmann's words were a departure from what super-luxury car makers have said so far. Lamborghini and rival companies like Ferrari, which cater to the wealthiest buyers, had hoped to ride out the downturn in the business cycle unscathed.

Winkelmann had forecast a 5 percent increase in global sales for 2008 at the Detroit auto show last year.

But the company only eked out a 1 percent increase in global sales last year to 2,406 units, with a 20.3 percent decrease in U.S. sales offset by higher sales in China, Hong Kong and the Middle East.

Based in Sant'Agata Bolognese, Lamborghini has been working to revitalize its brand by accelerating new model launches, widening its dealer and retail network and expanding licensing agreements.

To cater to its patrons in emerging markets, such as China, Lamborghini plans to add 10 more dealerships this year after expanding its network by 15 dealers in 2008.

Winkelmann said the company would continue to launch a new model every year despite the downturn in the auto industry.

The car maker last year announced a partnership with Italian fashion house Versace to design the interior of a limited edition car and accompanying accessories like bags and gloves.

"We are wealthy and I think we can resist and we will not be weaker at the end of this year," he said.

(Editing by Gerald E. McCormick)

 

 
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