Lamborghini's CFO explains why the brand is in no rush to produce EVs
17 Apr 2023|3,431 views
Lamborghini, like other supercar manufacturers, has been achieving record sales the past few years. In 2022, the brand soared to new heights, achieving a turnover of 2.38 billion euros and a 56% increase in operating income compared to 2021.
And for the first time in its history, the firm also delivered over 9,000 cars (9,233 to be exact).
With such results, it would seem as if the brand has been untouched by the pandemic and has no long-term worries to speak of.
But the carmaker's CFO, Paolo Poma, says otherwise. Internally, Lamborghini was affected by the pandemic and the lockdowns that followed. However, there were two elements working in its favour.
First, the brand's customers consist of high net worth individuals who are usually unaffected by crises. This helped ensure that the demand for exotic machines not only remained buoyant but grew even stronger.
Second, travel restrictions, which drastically restricted experiential luxury, boosted sales. The brand's target segment did not want to compromise when it came to enjoying life. "So, the money flowed towards tangible goods such as watches and cars", explains Mr. Poma.
Mr. Poma also cited the Lamborghini's internal flexibility as another strength, broadly explaining that it quickly steered cost structures to maintain profitability.
The pandemic also changed the firm internally, as it transitioned from in-person meetings to remote working.
The company, which had doubled in size before the pandemic, also saw an influx of younger staff, which made adapting to these changes easier. "When properly managed, remote working is efficient. We have brought this into our culture," he added.
Headwinds on the horizon
Inflation started becoming an issue in late 2022, with some economists predicting a possible recession in 2023. If Lamborghini is resilient and demand for its cars is inelastic, is it even worried?
"Although we have a huge order backlog, we may see a decrease in order collections", said Mr. Poma. "However, we are leveraging on a huge portfolio and a concentration of wealth that has been growing despite crises."
But he was also cautious, admitting that "we will not deliver performance forever". The real task, he says, is execution. Lamborghini is hybridising its three model lines and aims to complete the process by 2025.
"It's more of an internal challenge rather than an external one at this point. But if we experience a small recession or technical recession, I don't think the company will be strongly affected," he says.
While global demand for Lamborghini models is high, sales in Singapore are likely to fall because of the new ARF scheme introduced in Budget 2023.
Mr. Poma foresees lower sales because of this. "We may lose some high-net worth individuals because of the tax increase. The barrier to Lamborghini ownership has become even higher."
It's not all doom-and-gloom, though. "Maybe the Singapore market will slow down for six months before demand returns. After all, we are not in the business of selling commodities and our customers are typically not price sensitive," he tells us.
Move towards electrification
Lamborghini is viewed by many as a brand that caters to 'old-school' enthusiasts who love naturally aspirated V10s and V12s. Yet the carmaker is electrifying its models. Is this being done for performance gains or to meet regulations or both?
Mr. Poma is surprisingly candid in his replies. "The hybridisation of our range was not requested by customers. It is mainly a response to regulatory changes that will phase out the sale of new internal combustion engine cars in Europe in 2035."
For Lamborghini and its super sport cars (the Aventador and Huracan), performance is of the utmost importance, and the current electric technology cannot deliver the same experience that the combustion engine offers, due to the weight and the overheating of the batteries.
"However, for the Urus SUV or a possible new model that could emerge by the end of the decade, electrification is feasible because the performance concept is different," he says.
Will sustainability, in addition to performance, be something that the brand's customers seek one day? "For sure it's going to change. Younger clients are interested in this, and more than 40% of our customers are below 40 years old."
Personal preferences
In the meantime, the carmaker must also grow its Ad Personam programme to keep up with customisation demands. As Mr. Poma puts it, we are living in the 'age of you'. "We offer nearly 400 paintwork hues, which is why you'll rarely see two Lamborghinis in the same colour."
But the brand still has room to improve compared to its rivals. Specifically, he mentions the need to widen the catalogue and increase the possibilities for internal personalisation. "For instance, we receive requests for exotic leathers that we are not offering."
I ask Mr. Poma what feature he'd like to see in a Lamborghini. He pauses, a large smile forming across his face. "I want to keep the combustion engine! I also like digital features like our UNICA app, which lets you measure your driving style and performance using telemetry."
Advanced technology is cool and indeed, Mr. Poma says that one of his favourite models is always the next one to come, because the brand is always "generating expectations". He hints at the Huracan's successor, which will have a new twin-turbocharged V8 that's specific to the model.
Interestingly, the car that's probably closest to his heart isn't new or modern, but one from the past: it's the Miura, which till today is widely regarded as an icon in the world of supercars.
These stories may also interest you
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And for the first time in its history, the firm also delivered over 9,000 cars (9,233 to be exact).
With such results, it would seem as if the brand has been untouched by the pandemic and has no long-term worries to speak of.
But the carmaker's CFO, Paolo Poma, says otherwise. Internally, Lamborghini was affected by the pandemic and the lockdowns that followed. However, there were two elements working in its favour.
First, the brand's customers consist of high net worth individuals who are usually unaffected by crises. This helped ensure that the demand for exotic machines not only remained buoyant but grew even stronger.
Second, travel restrictions, which drastically restricted experiential luxury, boosted sales. The brand's target segment did not want to compromise when it came to enjoying life. "So, the money flowed towards tangible goods such as watches and cars", explains Mr. Poma.
Mr. Poma also cited the Lamborghini's internal flexibility as another strength, broadly explaining that it quickly steered cost structures to maintain profitability.
The pandemic also changed the firm internally, as it transitioned from in-person meetings to remote working.
The company, which had doubled in size before the pandemic, also saw an influx of younger staff, which made adapting to these changes easier. "When properly managed, remote working is efficient. We have brought this into our culture," he added.
Headwinds on the horizon
Inflation started becoming an issue in late 2022, with some economists predicting a possible recession in 2023. If Lamborghini is resilient and demand for its cars is inelastic, is it even worried?
"Although we have a huge order backlog, we may see a decrease in order collections", said Mr. Poma. "However, we are leveraging on a huge portfolio and a concentration of wealth that has been growing despite crises."
But he was also cautious, admitting that "we will not deliver performance forever". The real task, he says, is execution. Lamborghini is hybridising its three model lines and aims to complete the process by 2025.
"It's more of an internal challenge rather than an external one at this point. But if we experience a small recession or technical recession, I don't think the company will be strongly affected," he says.
While global demand for Lamborghini models is high, sales in Singapore are likely to fall because of the new ARF scheme introduced in Budget 2023.
Mr. Poma foresees lower sales because of this. "We may lose some high-net worth individuals because of the tax increase. The barrier to Lamborghini ownership has become even higher."
It's not all doom-and-gloom, though. "Maybe the Singapore market will slow down for six months before demand returns. After all, we are not in the business of selling commodities and our customers are typically not price sensitive," he tells us.
Move towards electrification
Lamborghini is viewed by many as a brand that caters to 'old-school' enthusiasts who love naturally aspirated V10s and V12s. Yet the carmaker is electrifying its models. Is this being done for performance gains or to meet regulations or both?
Mr. Poma is surprisingly candid in his replies. "The hybridisation of our range was not requested by customers. It is mainly a response to regulatory changes that will phase out the sale of new internal combustion engine cars in Europe in 2035."
For Lamborghini and its super sport cars (the Aventador and Huracan), performance is of the utmost importance, and the current electric technology cannot deliver the same experience that the combustion engine offers, due to the weight and the overheating of the batteries.
"However, for the Urus SUV or a possible new model that could emerge by the end of the decade, electrification is feasible because the performance concept is different," he says.
Will sustainability, in addition to performance, be something that the brand's customers seek one day? "For sure it's going to change. Younger clients are interested in this, and more than 40% of our customers are below 40 years old."
Personal preferences
In the meantime, the carmaker must also grow its Ad Personam programme to keep up with customisation demands. As Mr. Poma puts it, we are living in the 'age of you'. "We offer nearly 400 paintwork hues, which is why you'll rarely see two Lamborghinis in the same colour."
But the brand still has room to improve compared to its rivals. Specifically, he mentions the need to widen the catalogue and increase the possibilities for internal personalisation. "For instance, we receive requests for exotic leathers that we are not offering."
I ask Mr. Poma what feature he'd like to see in a Lamborghini. He pauses, a large smile forming across his face. "I want to keep the combustion engine! I also like digital features like our UNICA app, which lets you measure your driving style and performance using telemetry."
Advanced technology is cool and indeed, Mr. Poma says that one of his favourite models is always the next one to come, because the brand is always "generating expectations". He hints at the Huracan's successor, which will have a new twin-turbocharged V8 that's specific to the model.
Interestingly, the car that's probably closest to his heart isn't new or modern, but one from the past: it's the Miura, which till today is widely regarded as an icon in the world of supercars.
These stories may also interest you
Rolls-Royce Motor Cars CEO tells us why the brand is now for young and self-driven owners
Budget 2023: From Mercs to Maseratis, luxury cars to get more expensive as ARF system heavily revised
Lamborghini reveals 1,001bhp Revuelto
Which car brands are going fully electric? Here's everything we know as of January 2023
The internal combustion engine won't disappear so soon
Lamborghini, like other supercar manufacturers, has been achieving record sales the past few years. In 2022, the brand soared to new heights, achieving a turnover of 2.38 billion euros and a 56% increase in operating income compared to 2021.
And for the first time in its history, the firm also delivered over 9,000 cars (9,233 to be exact).
With such results, it would seem as if the brand has been untouched by the pandemic and has no long-term worries to speak of.
But the carmaker's CFO, Paolo Poma, says otherwise. Internally, Lamborghini was affected by the pandemic and the lockdowns that followed. However, there were two elements working in its favour.
First, the brand's customers consist of high net worth individuals who are usually unaffected by crises. This helped ensure that the demand for exotic machines not only remained buoyant but grew even stronger.
Second, travel restrictions, which drastically restricted experiential luxury, boosted sales. The brand's target segment did not want to compromise when it came to enjoying life. "So, the money flowed towards tangible goods such as watches and cars", explains Mr. Poma.
Mr. Poma also cited the Lamborghini's internal flexibility as another strength, broadly explaining that it quickly steered cost structures to maintain profitability.
The pandemic also changed the firm internally, as it transitioned from in-person meetings to remote working.
The company, which had doubled in size before the pandemic, also saw an influx of younger staff, which made adapting to these changes easier. "When properly managed, remote working is efficient. We have brought this into our culture," he added.
Headwinds on the horizon
Inflation started becoming an issue in late 2022, with some economists predicting a possible recession in 2023. If Lamborghini is resilient and demand for its cars is inelastic, is it even worried?
"Although we have a huge order backlog, we may see a decrease in order collections", said Mr. Poma. "However, we are leveraging on a huge portfolio and a concentration of wealth that has been growing despite crises."
But he was also cautious, admitting that "we will not deliver performance forever". The real task, he says, is execution. Lamborghini is hybridising its three model lines and aims to complete the process by 2025.
"It's more of an internal challenge rather than an external one at this point. But if we experience a small recession or technical recession, I don't think the company will be strongly affected," he says.
While global demand for Lamborghini models is high, sales in Singapore are likely to fall because of the new ARF scheme introduced in Budget 2023.
Mr. Poma foresees lower sales because of this. "We may lose some high-net worth individuals because of the tax increase. The barrier to Lamborghini ownership has become even higher."
It's not all doom-and-gloom, though. "Maybe the Singapore market will slow down for six months before demand returns. After all, we are not in the business of selling commodities and our customers are typically not price sensitive," he tells us.
Move towards electrification
Lamborghini is viewed by many as a brand that caters to 'old-school' enthusiasts who love naturally aspirated V10s and V12s. Yet the carmaker is electrifying its models. Is this being done for performance gains or to meet regulations or both?
Mr. Poma is surprisingly candid in his replies. "The hybridisation of our range was not requested by customers. It is mainly a response to regulatory changes that will phase out the sale of new internal combustion engine cars in Europe in 2035."
For Lamborghini and its super sport cars (the Aventador and Huracan), performance is of the utmost importance, and the current electric technology cannot deliver the same experience that the combustion engine offers, due to the weight and the overheating of the batteries.
"However, for the Urus SUV or a possible new model that could emerge by the end of the decade, electrification is feasible because the performance concept is different," he says.
Will sustainability, in addition to performance, be something that the brand's customers seek one day? "For sure it's going to change. Younger clients are interested in this, and more than 40% of our customers are below 40 years old."
Personal preferences
In the meantime, the carmaker must also grow its Ad Personam programme to keep up with customisation demands. As Mr. Poma puts it, we are living in the 'age of you'. "We offer nearly 400 paintwork hues, which is why you'll rarely see two Lamborghinis in the same colour."
But the brand still has room to improve compared to its rivals. Specifically, he mentions the need to widen the catalogue and increase the possibilities for internal personalisation. "For instance, we receive requests for exotic leathers that we are not offering."
I ask Mr. Poma what feature he'd like to see in a Lamborghini. He pauses, a large smile forming across his face. "I want to keep the combustion engine! I also like digital features like our UNICA app, which lets you measure your driving style and performance using telemetry."
Advanced technology is cool and indeed, Mr. Poma says that one of his favourite models is always the next one to come, because the brand is always "generating expectations". He hints at the Huracan's successor, which will have a new twin-turbocharged V8 that's specific to the model.
Interestingly, the car that's probably closest to his heart isn't new or modern, but one from the past: it's the Miura, which till today is widely regarded as an icon in the world of supercars.
These stories may also interest you
Rolls-Royce Motor Cars CEO tells us why the brand is now for young and self-driven ownersBudget 2023: From Mercs to Maseratis, luxury cars to get more expensive as ARF system heavily revised
Lamborghini reveals 1,001bhp Revuelto
Which car brands are going fully electric? Here's everything we know as of January 2023
The internal combustion engine won't disappear so soon
And for the first time in its history, the firm also delivered over 9,000 cars (9,233 to be exact).
With such results, it would seem as if the brand has been untouched by the pandemic and has no long-term worries to speak of.
But the carmaker's CFO, Paolo Poma, says otherwise. Internally, Lamborghini was affected by the pandemic and the lockdowns that followed. However, there were two elements working in its favour.
First, the brand's customers consist of high net worth individuals who are usually unaffected by crises. This helped ensure that the demand for exotic machines not only remained buoyant but grew even stronger.
Second, travel restrictions, which drastically restricted experiential luxury, boosted sales. The brand's target segment did not want to compromise when it came to enjoying life. "So, the money flowed towards tangible goods such as watches and cars", explains Mr. Poma.
Mr. Poma also cited the Lamborghini's internal flexibility as another strength, broadly explaining that it quickly steered cost structures to maintain profitability.
The pandemic also changed the firm internally, as it transitioned from in-person meetings to remote working.
The company, which had doubled in size before the pandemic, also saw an influx of younger staff, which made adapting to these changes easier. "When properly managed, remote working is efficient. We have brought this into our culture," he added.
Headwinds on the horizon
Inflation started becoming an issue in late 2022, with some economists predicting a possible recession in 2023. If Lamborghini is resilient and demand for its cars is inelastic, is it even worried?
"Although we have a huge order backlog, we may see a decrease in order collections", said Mr. Poma. "However, we are leveraging on a huge portfolio and a concentration of wealth that has been growing despite crises."
But he was also cautious, admitting that "we will not deliver performance forever". The real task, he says, is execution. Lamborghini is hybridising its three model lines and aims to complete the process by 2025.
"It's more of an internal challenge rather than an external one at this point. But if we experience a small recession or technical recession, I don't think the company will be strongly affected," he says.
While global demand for Lamborghini models is high, sales in Singapore are likely to fall because of the new ARF scheme introduced in Budget 2023.
Mr. Poma foresees lower sales because of this. "We may lose some high-net worth individuals because of the tax increase. The barrier to Lamborghini ownership has become even higher."
It's not all doom-and-gloom, though. "Maybe the Singapore market will slow down for six months before demand returns. After all, we are not in the business of selling commodities and our customers are typically not price sensitive," he tells us.
Move towards electrification
Lamborghini is viewed by many as a brand that caters to 'old-school' enthusiasts who love naturally aspirated V10s and V12s. Yet the carmaker is electrifying its models. Is this being done for performance gains or to meet regulations or both?
Mr. Poma is surprisingly candid in his replies. "The hybridisation of our range was not requested by customers. It is mainly a response to regulatory changes that will phase out the sale of new internal combustion engine cars in Europe in 2035."
For Lamborghini and its super sport cars (the Aventador and Huracan), performance is of the utmost importance, and the current electric technology cannot deliver the same experience that the combustion engine offers, due to the weight and the overheating of the batteries.
"However, for the Urus SUV or a possible new model that could emerge by the end of the decade, electrification is feasible because the performance concept is different," he says.
Will sustainability, in addition to performance, be something that the brand's customers seek one day? "For sure it's going to change. Younger clients are interested in this, and more than 40% of our customers are below 40 years old."
Personal preferences
In the meantime, the carmaker must also grow its Ad Personam programme to keep up with customisation demands. As Mr. Poma puts it, we are living in the 'age of you'. "We offer nearly 400 paintwork hues, which is why you'll rarely see two Lamborghinis in the same colour."
But the brand still has room to improve compared to its rivals. Specifically, he mentions the need to widen the catalogue and increase the possibilities for internal personalisation. "For instance, we receive requests for exotic leathers that we are not offering."
I ask Mr. Poma what feature he'd like to see in a Lamborghini. He pauses, a large smile forming across his face. "I want to keep the combustion engine! I also like digital features like our UNICA app, which lets you measure your driving style and performance using telemetry."
Advanced technology is cool and indeed, Mr. Poma says that one of his favourite models is always the next one to come, because the brand is always "generating expectations". He hints at the Huracan's successor, which will have a new twin-turbocharged V8 that's specific to the model.
Interestingly, the car that's probably closest to his heart isn't new or modern, but one from the past: it's the Miura, which till today is widely regarded as an icon in the world of supercars.
These stories may also interest you
Rolls-Royce Motor Cars CEO tells us why the brand is now for young and self-driven ownersBudget 2023: From Mercs to Maseratis, luxury cars to get more expensive as ARF system heavily revised
Lamborghini reveals 1,001bhp Revuelto
Which car brands are going fully electric? Here's everything we know as of January 2023
The internal combustion engine won't disappear so soon
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