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Originally Posted by gustavo But 1.8% operating profit in 2005 is ridiculous. Thats not enough cash for the next development cycles.
I doubt that Lambo will do it better the next two years.
The market for Gallardo is limited. I dont expect they sell more than 1.800 Gallardo in 2006 ( 1.600 in '05).
They are lost, if they wont extend their portfolio with other models.
But I doubt they are able to do that. At least Wiedeking will prevent that, if it's targeting Porsche  |
Well Lambo is an up and coming brand, regardless of whether it is making profits or not. Hence in the future, should Audi keep Lambo in its stable, it will have an exclusive high-end company whereby to sell their cars from, saving Audi the touble to create one again should they want to. Keeping Lambo means keeping decades of recognition, history and heritage. Also, I have full confidence that Lambo will be able to make a profit as long as they are able to pique enough interest in their cars to keep demand coming. Lamborghini is indeed a brand held in very high regard by the general populace and they should have no problem selling their cars with Audi's expertise, especially new models such as a rumoured SUV.
Not to mention, developments in Lambo have been transplanted into some high performance Audi models, such as the V10 used in the S8. Here we can see economies of scale in action.
One must question, however, why they are not making enough money when the demand for their cars are there. Is their production too small?