According to several sources Lamborgini is preparing a base , cheaper version of Gallardo with the V8 from Audi RS4 and RWD. It will go on sale next year.

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Strange... A V8 Lambo... Could be. Btw, since my knowledge about Lambo is dreadful, can any of you guys tell me if there ever was a V8 Lambo?

I don't think Lambo should go downmarket!

There's the audi supercar to deal with that!

Murcielago V12
Gallardo V10
Another Lamborghini V8

Thats how I see it.

What a Gallardo with a V8? Who will buy that, it will be much slower than the 911 turbo and F430, or maybe the car is for posers who don't care about speed and only wants to pose in a lambo.

Maybe it will be more track oriented. Ditching a two cylinders, a few cc's and the 4WD system could save them maybe up to 150kg.

The full benefits might not be felt in straight line performance. I think it's an interesting proposition.

Yeah the Gallardo is kind of a heavy cow. It weigh signifigantly more than the F430 and is also slower so cuting of some of the interior, engine wieght and AWD might help the car in terms of preformance. The car will still be great without AWD, now would it?

F430 has a V8 and it's rwd so Lambo wants to go head to head with Ferrari.
Also currently Gallardo is LIGHTER than F430 (3153 vs. 3197 lbs according to Serious Wheels site) so without the awd parts and with a lighter engine Gallardo V8 won't loose much in performance.

The Gallardo already goes head to head w/ the F430, w/ two more cylinders

Lamborghini will not move downmarket, makes no buisness sense. The Gallardo is as "down market" as they need to go in its current setup.

Lamborghini needs to make a version of the car without AWD since it is eating up some of the engine power.