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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.

The rationale behind Lamborghini's Urus

If you've been following developments in Sant'Agata Bolognese lately, you'll know that the world's most unabashed supercar producer is adding an SUV. Code-named "Urus," it will join the brand's existing two-model (Aventador/Huracan) lineup. It's a bold move for a company with a reputation built on iconic two-seaters including the Miura, Countach, and Diablo, and by its CEO's own admission the decision "will radically change Lamborghini." Why risk the company's exclusive, extroverted image on a vehicle associated with mundane tasks and parents who can't bear the thought of driving a minivan? Two reasons, says CEO Stephan Winkelmann. "The SUV Segment is still fast growing worldwide," he notes. Indeed, global demand for SUVs is up 88 percent since 2008, making utility vehicles the fastest-growing segment around the world, according to IHS Automotive. Utilities now comprise 19 percent of the global vehicle market. In addition, "sales can be equally distributed over our three major regions...the Americas (the US is Lambo's top market), EMEA (Europe, Middle East, Africa), and Asia Pacific." Lamborghini expects Urus to double sales from its current 2,500 cars per year to nearly 5,000. Adding a third model line "supports more consistent volumes and competitiveness of the company and our dealers," he continues. Further, Winkelmann maintains that an SUV fits the DNA of Lamborghini. "Our brand has a history of many types of cars such as GTs, super sports cars, and with the LM002 from 1986 to 1992, even an SUV. We learned together with our designers and product people that the SUV represented this opportunity the best." Structural implications include an expansion of the diminutive company's roughly 1,200-employee workforce by 50 percent, or 500 new hires, and the construction of a new facility near its headquarters to build the Urus. Building the new Lamborghini in Bologna is key to differentiating Urus from the other Volkswagen Group premium SUVs (Bentley Bentayga; Porsche Cayenne; Audi Q7 and Q8; and Volkswagen Touareg) that will share the same platform, and Winkelmann put great effort into persuading VW the move made economic sense. "We worked many months building the business case for approval because we are convinced the SUV will be a success and the best place to build it is in Sant'Agata Bolognese," Winkelmann stresses. "We are not simply adding another line in an existing building. Rather, we are talking about greenfield construction.

Lamborghini confirms Urus SUV will be its only plug-in hybrid

According to Autocar, we'll be seeing the first production hybrid Lamborghini soon. The publication reports that Lamborghini's research and development chief, Maurizio Reggiani, confirmed that the Urus SUV will be offered with a plug-in hybrid powertrain. This would also makes sense considering former Lamborghini CEO Stephen Winkelmann's statement that if the company ever produced a hybrid, the Urus would be "the logical place for it to launch." Aside from this, Reggiani revealed nothing more about the gas-electric Urus. Reggiani did, however, provide some insight to Autocar into Lamborghini's powertrain decisions. He told the publication that the Urus's already confirmed twin-turbo V8 was chosen because of a need for torque in an SUV. With this in mind, it will be interesting to see what the company does with the hybrid since a big enough electric motor (or motors) could provide a remarkable amount of torque and, in turn, some impressive performance figures. Lamborghini has even shown this potential in the Asterion concept, which produced 910 horsepower from a 5.2-liter V10 and three electric motors. Of course we'd expect an Urus hybrid to be much less potent and probably connected to a version of the turbocharged V8. Reggiani also told Autocar that, just as the Urus has specific powertrain needs, the supercars do as well. He said that the company has no intention of adding turbocharging to any of its cars. On this subject, he told the publication, "A supercar is completely different; you need the responsiveness of the engine, to feel the spark of every cylinder." It will be interesting to see how long people like Reggiani can keep turbocharging and hybrid assistance out of the sports cars in the face of stricter emissions targets. He hints that future advancements in weight reduction and other areas may be key to that. It's certainly nice to hear that there are people at Lamborghini that still value the subjective aspects that make sports cars great. It's also news that's sure to put fans of Lamborghini's classic, naturally aspirated sports cars at ease. Related Video: