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As VW electrifies, it questions the role of Lamborghini, Bugatti, Ducati

FRANKFURT — Volkswagen needs to change to stay relevant in the electric and digital vehicle era and will announce "important steps" to that end before the close of the year, Chief Executive Herbert Diess said on Wednesday. "Volkswagen needs to change: From a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering — to a digital company that reliably operates millions of mobility devices worldwide," Diess told shareholders at the company's virtual general meeting. Vehicles need to stay in contact with customers, offer new services and comfort functions on a weekly or even daily basis, he said. "We will take further important steps to set the course for this in the rest of 2020," Diess said. Senior executives told Reuters the company is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play as the company increasingly focuses on electric, digital and autonomous vehicles. Volkswagen, which also owns VW, Audi, Porsche, Seat and Skoda, is looking at whether it has the resources to accelerate development of electric platforms for smaller brands at a time it is investing billions to transform its more mainstream cars. Asked whether Ducati, which is known for making noisy combustion-engined motorbikes, has an electric future, Markus Duesmann, who oversees research and development for the group, said: "It will not take long until we see an electric Ducati." Whether Ducati, which is a medium-sized premium motorbike brand, would offer an electric variant, depends on whether a bike could offer range comparable to a combustion-engined variant, Duesmann said. Advances are being made in battery technology which could make this possible, he added. Separately Frank Witter, the company's chief financial officer, in response to a question about whether a sale of Lamborghini is planned, said Volkswagen does not comment on speculation about potential divestments. Lamborghini's Chief Executive Stefano Domenicali this week announced his departure from the sports car maker to take on a new job as president of Formula One. VW needs cash Volkswagen is reviewing the future of these three high-performance brands as part of broader quest for more economies of scale as it shifts to mass producing electric cars, senior executives told Reuters.

Lamborghini rules out sub-Huracan sports car

There is a kind-of-new segment emerging in the sports car market: an area in between vehicles like the Porsche 911 Carrera and supercars like the Ferrari 488 GTB or Lamborghini Huracan. It's a space recently defined by the Audi R8 and Porsche 911 Turbo, with some newcomers rushing in. McLaren joined in with the 570S and Ferrari is tipped to be looking at a new six-cylinder Dino revival. But Lamborghini isn't in any rush participate. At least not for now, and not with a completely new model. Speaking with Car and Driver during the New York Auto Show, Lamborghini chief Stephan Winkelmann said you can "never say never" about anything in this business, but that the prospect a more accessible sports car underneath the Huracan is not currently on the table. Winkelmann pointed towards pricing and volume considerations, but we imagine there's more to it than that. The Volkswagen Group of which Lamborghini is part already tackles that segment with the aforementioned Audi R8 and Porsche 911 Turbo, and while the German giant has never shied away from flooding a market segment with overlap from its various divisions, the R8 and the Huracan are already closely related. The Lambo chief did hint that decontented versions of the Huracan could fit the bill, though. Sant'Agata's ten-cylinder model currently starts at $237,250, but the previous Gallardo started at $191,900 before it was phased out. That was for the less powerful, rear-drive LP 550-2, which could hint at a successor under the Huracan's umbrella. And that's just $7k more than McLaren will be asking for the 570S. Aside from the prospect of a cheaper Lambo, Winkelmann also told C/D that the Asterion hybrid concept was strictly a technological demonstrator with no chances of production, that the Urus crossover project is still on the table, and that the supercar market isn't growing as fast as you might think. Related Video:

What Lamborghini Urus' unapologetic unveiling tells us about the super SUV

BOLOGNA, Italy — "Like a storm at a wedding," was Italian Prime Minister Paolo Gentiloni's diplomatically lyrical description of the 'problemo tecnico' that plunged the Lamborghini Urus production line into an awkward silence just as the build-up to the car's unveiling was reaching a crescendo. Given the scale of the event, the hundreds of media, customers and VIPs flown in, the preparation of the new production line for a gala dinner and all the rest of the glitz and glamour, this must have been an excruciatingly embarrassing moment for Lamborghini boss Stefano Domenicali. If it was, he didn't show it, gamely jumping into the middle of the unlit arena with the microphone and stalling for time as two examples of the Urus were whisked around from the adjacent production line, brought hurriedly before the waiting crowd and then thrown into the spotlight for R&D boss Maurizio Reggiani to do his thing. All of this proves that flying all the way to Bologna to attend an unveiling event in person is the last place you want to be if you want the scoop on a new Lamborghini, the vital information on the car already live and online while we folks in the factory were — literally — in the dark. You'll have already read the headlines, gasped at the horror of a turbocharged Lamborghini and then again in amazement at the performance stats the 641-bhp 4.0-liter V8 delivers. 0-62 mph in just 3.6 seconds is but a few tenths off what a Huracan achieves, 0-124 mph in 12.8 seconds putting the Urus into the seriously fast league for any type of car, let alone an SUV. The shock value of the looks has been tempered somewhat by the fact that concepts, test mules and drawings have been in the public domain for a long, long time. We've gotten used to the idea of a Lamborghini SUV, and the design theme of an Aventador on stilts was long-previewed. But what's it like in the metal? Unapologetic would be one word that springs to mind. But then that's the Lamborghini way, right? This is not — never has been — a brand for wallflowers. Even with that in mind, the Urus is a middle finger raised to anyone concerned about brand values being cheapened by the fact it shares platform, engine and electrical architecture with similar products from Audi, Bentley and Porsche. You'll have your own views there. You'll also realize why Lamborghini had to do it and, perhaps, wonder why it took so long.