Middle East millionaires can buy Lamborghinis again

Share current article via EmailShare current article via FacebookShare current article via TwitterShare current article via LinkedInReutersNews Agency

ExpandA Lamborghini is displayed at a luxury car exhibition in the Saudi capital Riyadh. Picture: Reuters/Faisal Nasser Italian sports car manufacturer Lamborghini says the conflict in the Middle East is no longer disrupting deliveries to the region — but the Volkswagen-owned luxury brand has warned that the outlook remains highly uncertain.

“September and October saw an improvement in our ability to deliver the vehicles,” chief marketing and sales officer Federico Foschini said at a briefing with journalists

The situation should be positive also for November, but it is difficult to make predictions further ahead, he noted, speaking at the company headquarters.

In April, Lamborghini had said that the conflict in the Middle East had forced a complete stop to sales and deliveries in the region.

The Middle East region accounts for about 450 cars sold a year for Lamborghini, roughly 5% of its annual volume, but historically produces high profit margins, in line with industry peers.

The company’s top 10 markets are the US, Germany, Britain, Japan, China, South Korea, Canada, Switzerland, Italy and Australia, it said in a slide presentation.

On full-electric plans, Foschini reiterated that they had been put on ice, but research on the issue continues as “sooner or later we will also have to confront” this technology.

On October 30, Lamborghini reported falling operating profit and deliveries in the first nine months of the year, but rising revenue, citing “market headwinds”.

Operating profit was down 4.8% year on year to €564m (R10.39bn) due to negative foreign-exchange effects, higher depreciation and US tariffs, the carmaker said.

Would you like to comment on this article?Sign up (it's quick and free) or sign in now.

Please read our Comment Policy before commenting.