Lambo doing well despite closing down its biggest dealership

Posted on December 24th, 2008 by Robert Adams | Posted under: Lamborghini

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After the chaps at Audi took over Lamborghini, the tables turned for the good. The cash register at Lamborghini had started to ring more frequently, the quality of their cars were much better and there was a certain German feel to the supercars that couldn’t be explained.

Many cribbed that the cars that rolled out of the Lamborghini facility lacked that pizzazz that Italian cars were famous for, but Audi and Lamborghini never complained as they laughed their way to the bank.

Since the takeover, there has been no looking back and the supercar manufacturer seems to be improving as the years go by. The development of concepts and prototypes helped the raging bull when it comes to production strategies. They invested big bucks for R&D which and it doesn’t seem like they would go back on their investment. Automobili Lamborghini S.p.A. engineered and formulated excellent long term strategies that went a long way in adding to their success.

Even the recent economic slowdown doesn’t seem to have knocked a single strand of their hair out of its place. Okay, maybe one strand. It goes beyond many of us as to why Lamborghini had closed down their most glamorous, largest and most profitable dealership at Orange County, California. Many had come to the conclusion that it was due to the economic crunch as they had witnessed the closure of many dealerships of other automobile firms including Chevrolet, Dodge, Nissan, etc. However, Automobili Lamborghini America said the dealer closed because of its own mistakes, not the economy.

“The financial stress Lamborghini Orange County is experiencing is due to several unfortunate business decisions made by management at Lamborghini Orange County, independently of Automobili Lamborghini,” said Pietro Frigerio, chief operating officer of Lamborghini America.

The closure of the facility at Orange County has shocked many existing owners and potential customers as well as there seems to be no sign indicating where existing owners of the famed supercar could go to for service and repairs while potential customers are have not been alerted about the delivery dates of their Lamborghinis. Only time will tell as to why Lamborghini Orange County shut shop. For more information, watch this space!

Automobili Lamborghini S.p.A. press release below:

Automobili Lamborghini S.p.A. will deliver another record year’s results in 2008. Official sales figures will be communicated on the occasion of Lamborghini´s appearance at the Detroit Motor Show in January 2009.

Even as a low volume luxury car manufacturer, Automobili Lamborghini is not unaffected by the present downturn in economic activities in the wake of the global financial crisis. However, the company is in a favourable strategic position due to its identity as a luxury brand of longstanding tradition. One of its core brand values is exclusivity, which is maintained through tight management of volumes and a strict policy of maintaining a strong forward order bank. This exclusivity is of essential relevance to both dealers and customers and is pivotal for the appeal of the brand.

Lamborghini has the most attractive product line-up in the company´s 45 year history. With at least one new product launched every year, and the continued development of the dealer network to maximise market penetration, Automobili Lamborghini has produced a year on year record performance in terms of turnover, profit and volumes for the last four years, together with a rare double digit profit margin. The company´s development marks one of the most respected company turn-around programmes in the automotive and luxury industries.

Long before 2009, the company took decisive steps to address potential market volatility. Production flexibility is made possible by cooperative concepts developed with the union representatives. Besides flexible working hours, it provides the opportunity to create training and qualification programmes during work hours. There will be no layoffs, but an extension of the Christmas holiday for eight days has been confirmed.

Lamborghini will not divert from its long-term strategy. Investment into R&D will not be reduced, and there will be ongoing expansion of its brand presence on a world-wide scale, with more new products and further expansion of its dealer network. The company will continue its strategy of announcing at least one new product each year. The latest examples of this are the new Lamborghini Gallardo LP 560-4 Coupe for which deliveries commenced summer 2008, and the Gallardo LP 560-4 Spyder unveiled in November 2008 with market launch in spring 2009. Lamborghini continues its stated objectives of becoming the most profitable supersportscar manufacturer, the most attractive employer and the most attractive brand in its market.

image by Flickr user: Venom82