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Weekly Recap: Lamborghini to build SUV

Finally, Lamborghini will build a sport utility vehicle. The Italian supercar maker confirmed this week that it will launch a luxury SUV in 2018. It will be built at Lamborghini's soon-to-expand factory in Sant'Agata Bolognese in Italy, and will double the company's current sales volume. Lamborghini did not announce a name for the vehicle or other details, but noted a concept version, the Urus, was displayed at the Beijing motor show in 2012. It will be sold around the world, but it's expected to be a critical offering in the United States, China, and the Middle East. The automaker projects the SUV will sell about 3,000 units per year, and it will be the third product in Lamborghini's portfolio. It currently sells the Huracan and Aventador supercars. "The introduction of a third model line endorses the stable and sustainable growth of the company and signifies for us the beginning of a new era," Lamborghini chief executive Stephan Winkelmann said in a statement. The project is also a boon for Italy, which will get 500 new jobs in the Emilia Romagna region as Lamborghini's factory will nearly double in size. Ian Fletcher, principal analyst for IHS Automotive, said the SUV will position Lamborghini for future growth. "It could well also bring new customers to the brand [who] may find the dramatic styling of Lamborghini products appealing, but find its typical sports cars restrictive," he said. "If it is a success, the SUV could be a catalyst to Lamborghini broadening its portfolio further." OTHER NEWS & NOTES GM invests in Chevy Camaro factory General Motors is investing $175 million to upgrade its factory in Lansing, MI, to build the 2016 Chevy Camaro. The investment will pay for new tooling and equipment. The improvements include three new paint systems and two new robotic framers. GM will add a second shift at the factory to build the Camaro, resulting in 500 jobs. The automaker had dropped the plant to one shift last year amid slow sales for its products, the Cadillac ATS and CTS. GM is spending $5.4 billion over the next three years to upgrade its US facilities. Last week, GM announced plans to spend $439 million to build a new paint shop for the Chevy Corvette. While the Camaro and Corvette plant improvements are intriguing to enthusiasts, GM also confirmed this week that it is investing $1.2 billion in its Fort Wayne (IN) factory that builds trucks.

1963 Lamborghini 350 GTV still looks fresh on Pebble's Concept Lawn

We already brought you a gallery of Lamborghini's latest rockstar, the Veneno, from it's vaunted spot on the lawns of The Quail here in Monterey. Apparently the Italian brand didn't want the Pebble Beach crowds to feel left out, so it brought the supercar along to the Concept Lawn here as well. Not to miss out on the classics action Lamborghini has matched the Veneno with the car that started everything for the company: the original 1963 350 GTV prototype.
With 50 years separating the Veneno from the debut of the hip 350 GTV at the Turin Motor Show, Lamborghini cheekily mentions that it has stuffed "100 years of innovation in half the time." We'll leave the judgments of historical significance in the capable hands of the Pebble judges, but will agree that the original Lamborghini still looks amazingly hot, decades after its reveal. Apparently the classic 350 GTV doesn't travel a whole lot either, so we're happy to have a chance to lay eyes on it here.

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.