In recent weeks, the Italian luxury performance automaker has made the news twice. Once for the release of the latest Huracán iteration, STO (Super Trofeo Omologata), and another time for the appointment of Stephan Winkelmann back at the wheel of the company, after his predecessor, Stefano Domenicali left to become the new Formula 1 CEO.

Is Lamborghini embracing electrification or keeping its production models unchanged?

LAMBORGHINI MARKET COVERAGE

Right now, Lamborghini is focused on the supersport segment, with three of its models, the V10 and V12 Huracán and Aventador. The production models come also in different degrees of sportiness with more track-focused versions like Huracán Performante, the aforementioned STO, and Aventador SVJ. Only in 2018, the company added to its lineup the now extremely successful Urus, which is positioned in a more daily-drive-oriented segment.

LAMBORGHINI LINEUP CUSTOMER PROPOSITION VALUE

*Each Huracán, Aventador and Sián model have a Roadster or Spyder version

Luxury today is about uniqueness. Automakers constantly enrich their services and offer a range to satisfy every client’s desire. Luxury automotive nowadays cannot be anymore just about producing beautiful, insanely fast, or extremely luxurious cars. The Customer journey has to be richer and involve the client in every step of the ownership.

The way to uniqueness begins with Tailor-made or bespoke programmes which allow each client to choose the car’s specification down to the smallest detail, making it effectively unique, as long as enough money is spent on it. Over the last decade, all the major luxury automotive manufacturers have significantly expanded their respective personalisation programmes including bespoke colours,  materials, and even car components along with dedicated experts that will help clients get their own perfect specifications.

There is a further step to all this though, during which really unique products, or one-off, are developed and it is not just down to specifications.

The concept of one-off vehicles commissioned by a wealthy client to a manufacturer is not new but dates back to about the beginning of the last century. At the time though, automotive was not about mass-production, economies of scale, and standardisation as it is today, so modern one-off are treated differently.

In this article, I listed 6 of the most interesting modern one-off cars ever produced in the luxury segment, either for their significance, or their history. The list could easily be much longer, but this time I decided to synthesise bringing only one example (almost) from each manufacturer considered.

1. ASTON MARTIN VICTOR

First in alphabetical order is the Aston Martin Victor. Presented in September at the Concours of Elegance at Hampton Court Palace. It is a bespoke car commissioned to and developed by Aston Martin’s Q (any James Bond fan here?). It is valued at around £2 million.

*Source:Aston Martin

It utilises the carbon monocoque of another iconic and rare One-77. The engine, 7.3 litre V12 is also taken from the One-77 but completely reworked by Cosworth and produces now 836 bhp. It takes interior and exterior elements from the expertise acquired from Aston Martin Vulcan and Valkyrie.

This car is extremely special, not only because just only one exists, but because it is Aston Martin's tribute to the 70s and 80s. A period when Aston Martin introduced a boxier look with the V8 Vantage.

The name Victor, instead, is a tribute to Victor Gauntlett, executive chairman of the company from 1981 to 1991. Under his guidance, the automaker embraced this particular styling but also cancelled the production of another special and now unique model, as only one exists today, the Aston Martin Bulldog.

2. BUGATTI LA VOITURE NOIRE

One of the most expensive cars in the world, priced at over £14 million, La Voiture Noire was presented at the Geneva Auto Show in 2019.

Built on the chassis of a Chiron heavily revised, with longer wheelbase, the same 8 Litre W16 producing 1500 bhp. The design by Etienne Salomé features some exclusive elements like 3D printed taillight bar, black-hued carbon fibre, six exhaust tips as well as advanced innovation like the wheels internal structure developed by AI.

*Source:Bugatti

This car too has an interesting story. The concept is based on the 1930s Type 57 Atlantic of which Bugatti built only 4 units. One, completely black and owned by founder Ettore Bugatti’s son Jean, went missing during World War II and was never found. The stunning modern interpretation pays tribute to the original La Voiture Noire.

3. FERRARI P80/C (SP36)

Ferrari has produced a considerable number of one-off cars throughout the years, with a program started over 10 years ago now, and vehicles’ styling varying to different degrees from their original platforms.

While all of them are noteworthy just for being unique Ferraris, the P80/C or SP36 is, if possible, even more special for two main reasons. First of all, because it is a race car. Differently from the other one-offs, it is not road legal. The platform is a 488 GT3, and the engine is the 3.9L Twin-turbo V8, not limited and producing 660 bhp, but at least externally it does not preserve any aesthetic element of it. Secondly, it is inspired by what are undoubtedly some of the most beautiful cars ever produced by the company, the Sports Prototypes such as 330 P4.

*Source:Ferrari

The car, in fact, is conceived to be presented without the rear wing too, in order to preserve a more elegant look. Price is said to be around £5 million.

Ferrari also published an interesting video featuring Flavio Manzoni himself, along with other Ferrari executives, discussing the P80/C development project.

4. LAMBORGHINI MARZAL

This is a very special, yet not well-known Lamborghini. The Marzal was initially conceived to be just a display car for international auto shows and add a more practical 4-seater to the Lamborghini lineup. It does preserve numerous Lamborghini typical design cues, such as hexagon shapes and rear window louvers. To that, many other elements like the large glass doors, the futuristic interior, and silver colour interior trim, make this design even more unique

The overall styling, realised, as many other Lamborghini designs by Marcello Gandini for Bertone, was then used for the Espada which has since become a classic Lamborghini. The engine is a 2 litre 6-cylinder engine designed by Mr. Dallara and producing 175 bhp.

What makes the Marzal even more interesting is the story of its first appearance. Monaco's Prince Ranieri III was so impressed with it that in 1967 chose this car for the lap of honour along with his wife Grace Kelly, then Princess Grace, before the F1 Grand Prix.

Value stands around €1.5 million.

5. MCLAREN X-1

McLaren presented its first one-off in 2012, the X-1. It did not produce other one-offs since, but according to a 2017 interview of McLaren Special Operations (MSO) Managing Director Ansar Ali with Autocar, the division had at that time the necessary facility to realise up to two or three similar projects per year.

The X-1 was modelled over the chassis, components, and 617 bhp twin-turbo V8 of the first McLaren Automotive model MP4-12C. According to Top Gear, discussions for this project began three years before its release between an undisclosed client and the then CEO Ron Dennis, and its price would sit at around £7 million.

*Source:McLaren

Overall, despite its polarising look, it is definitely a significant and interesting project from the Woking manufacturer as its first venture in the one-off development.

6. ROLLS-ROYCE SWEPTAIL

Last but not least, a look at the pure luxury of Rolls-Royce with the Phantom VII derived 2-seater Sweptail. Presented at Concorso D’Eleganza Villa D’Este in 2017 and priced around £9.5 million.

The Sweptail features numerous luxury options available within the Rolls-Royce range like the champagne bottle cooler, umbrella stored in the car side panel, as well as some more unique ones like the side drawer containing a bespoke laptop bag.

*Source:Rolls-Royce

The development process between client and company lasted four years and took inspiration from Rolls-Royce coachbuilding swept tails models of the 1930s. What makes this car more interesting is the mix of design cues from automotive and aeronautics, with clear inspiration from classic and modern yachts styling evident in exterior and interior elements such as the back deck behind the seats.

A couple of weeks back, the news spread about Volkswagen’s intention to sell its top luxury low-volume automaker, Bugatti. What is more surprising is that Croatian EV automaker and tech supplier Rimac has been quoted among the interested parties in the purchase. As many by now suggested though, considering Porsche’s interest in Rimac, the move seems definitely less unexpected.

BUGATTI SALES FIGURES (2005-2019)

In 2019, the company closed with an estimated €253.57 million revenue (Dun&Bradstreet) and a record sales of 82 vehicles. The sales graph shows mainly the lifecycle (so far) of their two main models, Veyron, and the successor Chiron. In the last two years also, the company attracted, even more, the attention of professionals and enthusiasts’ community with the release of the £4.5 million Divo, the £9 million Centodieci, and the £12 million one-off La Voiture Noire, respectively planned for 40, 10 and 1 units.

WHAT ABOUT VW’S DECISION?

Bugatti’s parent company and owner of numerous other major automotive brands, Volkswagen Group has recently gone under a radical management restructuring. Herbert Diess current group CEO, recently replaced as VW brand CEO by Ralf Brandstaetter, has been at the forefront of the efforts to cut costs, especially in these difficult times, to free resources and allow a fast transition to large-scale electrification. In the first half of 2020, VW Group with a 23% drop in sales, has so far reported a pre-tax loss of €1.4 billion.

According to some reports then, selling the luxury marque would be part of this cost-cutting strategy by the German automaker. But because Bugatti’s acquisition was strongly wanted by Ferdinand Piëch, it would not be possible for VW to just sell the marque.

Ferdinand Piëch *Source: Wikipedia 

Especially considering that over 50% of the group is controlled by the Holding Porsche SE, whose 50% is owned by the Porsche-Piëch family at 50%, who however retains 100% of the voting rights.

Herbert Diess *Source:Volkswagen Media©

At the same time, Rimac, the Croatian firm leading the luxury performance electric vehicle niche, has become a major player, thanks to its know-how, collecting numerous partnerships and investments. You can read more about it here Nico Rosberg enters the Rimac Family: Rimac Business Model.

So, in the described plan, Porsche that acquired a 15.5% stake in Rimac in two years, would increase it up to 49% while the EV manufacturer would buy the Bugatti brand which would effectively remain, at least partially under the VW Group. Naturally, this process would need the approval of other important stakeholders such as the Chinese Camel Group that owns a 14% stake.

SOME OBSERVATION

To answer the first question at the beginning of the article, this exchange would not only allow VW to save costs and focus its resources on mass-produced electric cars but would also grant Bugatti a faster transition toward electrification thanks to Rimac.

At the same time, the Croatian manufacturer, who despite the blazing success has so far produced a very low volume of cars, could benefit from Bugatti’s expertise. Considering the differences in values and characteristics between the two brands they would also not risk cannibalising their extremely limited sales.

As for the other companies, Lamborghini, Bentley, Ducati, even the design company Italdesign would all be under scrutiny. However, regarding luxury automotive brands Lamborghini and Bentley, there are three reasons that put these two brands in a stronger and more integrated position compared to Bugatti.

First, both Bentley and Lamborghini share important components of their SUVs, luxury, and sports cars with other VW Group brands. Bentayga and Urus share VW’s MLB Evo modular platform (Modularer Längsbaukasten, German for Modular Longitudinal Matrix) with Audi’s Q and A product lines, VW Touareg and Porsche Cayenne. As for the engines, Urus, Bentayga, Continental GT, and Flying Spur share the 4.0 Litres V8 engine with Porsche and Audi. Additionally, Lamborghini also shares with Audi the 5.2L V10that was mounted in a late version of the Gallardo and on the Huracàn. All these factors not only translate into a significant cost reduction but are even more significant when considering the highest profit margin on each of these cars and the current market trend. The two companies’ SUVs are in fact by far their best-selling models. In both cases, they account for around 50% of the total sales or more.

*Source:Bentley Media© &Lamborghini Media©

Secondly, both Lamborghini and Bentley look ahead of Bugatti in terms of electric technology integration and development. Both have shown concepts of full-electric cars, Terzo Millennio and EXP 100 GT respectively. They also all have already developed hybrid platforms, Lamborghini with the Siàn and Bentley with the Bentayga. Additionally, Bentley can boast already a well laid-out development plan to reduce emissions and develop a greener product lineup with the Beyond100 Strategy. Check Bentley H1 Results and Beyond100 Business Strategy to know more.

Third, both have been performing significantly well in the past few years in terms of sales numbers becoming leaders in their segments, with only Ferrari coming close. This holds true even in 2020. Especially compared with the rest of the industry. In the first half of 2020, Bentley even registered a 2.8% increase in deliveries, while Lamborghini’s -22.1% is still way smaller than that of its direct competitors.

All in all, if this transaction happens, even if many enthusiasts might feel sad at the idea of Bugatti turning electric (which will have to happen anyway eventually), who better than Rimac can bring it into this new automotive era? As for the other two luxury automotive brands, as of now, it seems highly unlikely to see VW deciding to sell them.

It was around a month and a half before the 2020 Geneva International Motor Show that Lamborghini announced it would have skipped the event. Then, even with the pandemic affecting the entire industry, media and enthusiasts got a degree of satisfaction. New models were presented through online events streamed on every social media platform.

Fast-forward to two months later, and it looks like Lamborghini managed once again (here are more insights on Lamborghini’s online marketing) to steal the online show with the presentation of its new Huracán EVO RWD Spyder. This time not only by picking a date for a separate event but by being the first company ever to present a new car with Augmented Reality (AR).

h©Lamborghini

The EVO RWD Spyder is the soft-top version of the latest iteration of the ‘entry-level’ Lamborghini. And like its predecessors it is a very important addition to the lineup. As the coupé, it is cheaper than the all-wheel-drive (AWD) version, with the MSRP at £188,000 instead of £218,000 (all before options of course), and has new technology, but it is slightly less powerful.

Lamborghini’s statement for both Huracán EVO RWD Coupé and Spyder is “Rewind to Rear-Wheel Drive”, and in this sentence sits the reason for the existence of this new version of the car. The RWD configuration, common in older Lamborghini’s flagships up until the 90s, has been substituted by the AWD one, for improved traction and acceleration. The new one instead will ‘deliver pure, unfiltered driving excitement’(Lamborghini), and the majority of the press so far seems to agree.

By looking at the sales history since its introduction in 2013, and 2015 for the Spyder, the model’s success is evident. Even more when thinking that up until 2019 the best-selling Lamborghini of all was the Gallardo with 14,022 vehicles. As of 2019, Huracán has reached 14,528 produced units, and it just got a cheaper version with updated technology and that promises a more exciting driving experience. 

LAMBORGHINI PRODUCTION FIGURES BY MODEL (2013-2019)

THE PRESENTATION

On May 7th 2020, Lamborghini published on its social media platforms the link to access the new page containing technical details and information about the vehicle, 3D visualisers, and, most importantly the option to use the AR.

This allowed people to look at the car through the screen of their device like the vehicle was sitting there in front of them, whether indoor or outdoor. Unfortunately, the experience is available only for Apple users, and not for Android devices. This could be for branding reasons or more likely for compatibility ones, being the Android ecosystem much more varied and less controlled.

HURACÁN PRESENTATION ENGAGEMENT ON SOCIAL MEDIA

*Data refer to the last 3 months of activity on each channel

Regardless, the campaign was an innovative way to stand out from the competition. This is, in fact, an unprecedented way to unveil a new model in the automotive industry, which ties perfectly with Lamborghini’s values of uniqueness and technological innovation.

The announcement of the 7th on the main social media channels got a slightly below average engagement (which is already very high for the industry’s standard), while performing well above it on LinkedIn as shown in the chart.

But considering that social media traffic accounts only for about 2% of the total, estimated over the past 30 days, the Huracán unveiling generated significant attention as highlighted in the global ranking improvement based on traffic and engagement since May 7th. This is especially true for the US, Lamborghini’s largest market, where the website ranks 7857th (Source Amazon Alexa.com). The combination of eye-catching yet easy to access technology along with avoiding the direct competition, as it happened for the Virtual Geneva International Motor Show has been very effective.

 

LAMBORGHINI’S WEBSITE GLOBAL RANKING BASED ON TRAFFIC & ENGAGEMENT, AND TRAFFIC SOURCES (IN %)

*Source for both graphs Amazon’s Alexa.com

 

IN SHORT

Remaining truthful to its brand, Lamborghini launches the latest iteration of its best-selling model in an unprecedented way. Regardless, of the positive traffic and engagement results, this AR unveiling is an important display of technological innovation that no other company has exploited so far in this context.

This marketing idea plays perfectly in Lamborghini’s desired image. The concept is perfectly synthesised by the statement used for the Sant’Agata Bolognese Museum rebranding: “Future Shapers Since ‘63”.

Lamborghini today is a strong and fast-growing company. In the last two years, its already growing sales have literally skyrocketed as the firm took advantage of the SUV craze that dominates every segment of the automotive market.

LAMBORGHINI'S SALES FIGURES BY YEAR - 2011-2019

*2011-2018 - the numbers reported refer actual sales, not car deliveries, except for 2019 as the full-year annual report has not been published yet

Many automotive enthusiasts though also know that Lamborghini has a troubled history. After its initial fame sprang from the international success of the Miura, the majority stake was sold by Ferruccio in a moment of crisis in 1973. After this first sale, in around 20 years the company changed owners three more times up until 1998 when it was finally acquired by Volkswagen and placed under the Audi group.

From then on, the automaker started growing more and more steadily, affirming itself as one of the most iconic brands in the luxury performance segment. Despite being a low-volume manufacturer, it remains at the bleeding edge of performance and technological innovation.

HOW DID VW TURN THIS STRUGGLING COMPANY INTO THE SUCCESS IT IS TODAY? WHO WERE THE ARCHITECTS OF SUCH ACHIEVEMENT AND WHAT STRATEGY DID THEY ADOPT?

In 1993, Volkswagen Group Chairman and CEO Ferdinand Karl Piëch entered a company in serious financial distress. He was one of the main figures behind VW resurgence thanks to its aggressive international expansion strategy. He was also the decision-maker behind VW Group acquisition spree of 1998.

Investing a sum around today’s €2 billion (adjusted for inflation) in a single year, the German manufacturer acquired Rolls-Royce/Bentley (that was later split with BMW taking the rights on the Rolls-Royce brand), Bugatti, the engine manufacturer Cosworth and of course, Automobili Lamborghini.

The main reasons behind this strategy were consolidation, with wider market coverage, and Research & Development.

Along with VW AG’s then Finance chief and strategist Jens Neumann, the expansion plan served as diversification within the mobility sector. The interest was not diversifying for resilience purposes but covering as many market segments as possible to satisfy the highest number of customers.

*Audi R8

Also, the luxury and design expertise, as well as the technological know-how gained with these acquisitions, have been a huge contributor to VW’s strategy. To vitalise its product lineup and get Audi to compete in the same segment of BMW and Mercedes. That year two major additions were the new Beetle, showing a renewed, fresh design language, and the Audi TT premium yet sporty. The knowledge transfer became even more evident in the mid-2000s with the R8 which was taken straight from the Gallardo platform before, and from the Huracán later.

In a really concentrated industry, Piëch knew where to invest, even more considering his previous experience in the sports car segment with Porsche.

WHERE DID LAMBORGHINI START UNDER THE NEW MANAGEMENT?

The first new Lamborghini release under the Audi ownership was the Murciélago, with project manager Maurizio Reggiani and CEO Giuseppe Greco. Launched in 2001, in its first full year increased Lamborghini’s sales by 42%, with 442 units sold. Up until then, with the Diablo, annual sales were around 200 vehicles per year, but the model had already been around for over a decade. Murciélago was overall a big success for the company selling 4099 cars in a decade. The previous flagship, Diablo, reached only 2884 and the Countach before 2049.

*Lamborghini Gallardo

In an economy affected by the 2000s economic recession, Murciélago’s success was mainly due to improvements in its daily usability. Even today, car enthusiasts don’t appreciate much this performance ‘democratisation’ that for many took away Lamborghini’s true Italian soul. Murciélago was developed to offer improved performance, over its predecessor, but in a more sensible way. Reliability, practicality, dynamics, and drivability were the main differences. This philosophy gave Lamborghini access to a broader customer base.

The same concept was later adopted for the development of Lamborghini’s real game-changer: The Gallardo.

NEW OR OLD STRATEGY?

Audi was not the first to envision the little, more affordable Lamborghini destined for a wider market. This path was taken three times before, with the Urraco, the Silhouette, and the Jalpa.

Finally, an external factor that made the situation even more complicated was the fierce competition in the industry. Lamborghini’s main competitors at that time, Porsche and Ferrari, over the same period from the mid-70s to late 80s reached huge success with their respective models Porsche 911 Turbo (930) and Ferraris 308 and 328 producing around 20,000 units each.

A little later, it was Porsche also, that in the 90s on the brink of bankruptcy saved the day through the same formula. It is called Boxster and it was a huge hit right from the start. Naturally, the price was much lower than the Lamborghini’s that followed a few years later. 

It was more affordable around £50,000 less than the big sister in the UK, below £150,000. Under Audi’s supervision the final product was also more reliable and easier to drive, but still with a distinctive styling. These factors made Gallardo a huge success. In the first year, it sold an unprecedented 829 units for a total of 1,251 overall. The trend remained positive throughout the 2000s except for 2009 and 2010, where sales halved following the financial crisis.

Gallardo, anyway, went soon on to become the best-selling model of the Bull’s house, with 14,022 cars sold. The substitute, Huracán, in only 6 full years of production is likely to surpass this record (13,313 sold until 2018). The flagship V12 Aventador is already the best-seller of its line as well too.

Audi, in fact, created a perfect synergy. A strong and established design language, high performance and innovation are supplied with state-of-the-art technology and electronics which are some of the most difficult components for a small manufacturer to develop. To this, it has added also the ‘common sense’ of a mass manufacturer when it comes to drivability and everyday practicality.

WHAT ELSE DID LAMBORGHINI’S NEW MARKETING MIX INCLUDE?

Along with the core products and exclusive events, in recent years, numerous initiatives contributed to shaping the brand to what it is today.

From 2008, under Stephan Winkelmann and later with current CEO Stefano Domenicali, six different projects of limited editions or one-offs have been released. Reventón, Sesto Elemento, Centenario, Veneno, SC18 Alston, and Sián. Along with these, concepts like Asterion, Egoista, and Terzo Millennio. All these vehicles are powerful statements of technological and performance innovation.

*Some limited editions and concepts developed from the late 2000s at Lamborghini. From left to right in the gallery: Reventón, Sesto Elemento, Centenario, Veneno, Sián, Asterion.

A major strategic effort has been establishing Lamborghini’s presence in the Motorsport world. From the late 2000s, the newly founded Squadra Corse (Racing Team in Italian) overtook the management of all the motorsport activities, from the GT3 to the Lamborghini Blancpain Super Trofeo Championship. To the monomarque championship followed track-only versions of Gallardo first and Huracán after. Part of this plan regards also the road cars division, where Huracán Performante and Aventador SVJ (who took the record for the fastest lap at the Nürburgring Nordschleife for road-legal cars with 6:44.97) have been strongly (and successfully) advertised as cars developed to perform better than any competitors on the track. The successes of these models improved the reputation of the company beyond the recognition for the flashy looks and exclusivity of their cars. They made Lamborghini a serious competitor in its niche.  

Also, since the early 2000s, there was a consistent presence of the brand in important videogames, which left a lasting impression on a generation that has now grown up and counts numerous enthusiasts and potential buyers.

High-end merchandise has further expanded the products offering. Collaborations with lifestyle brands like Oppo with the Find X phone and important personalities such as star chef Carlo Cracco in 2011 further contributed to the Lamborghini’s marketing mix.

TO CONCLUDE…

VW Group is well-positioned in today’s market, with almost 11 million vehicles sold in 2019 but also for its strong commitment to technological innovation and electrification which affects Audi Group as well. This ensures a low-volume manufacturer such as Lamborghini to remain ahead of the changes with resources and up-to-date supplies.

Since 2010, the market has experienced unprecedented growth. But even now, in a slowing automotive market, Lamborghini’s strategy is working. The timing in releasing new models, as well as its improving reputation seem flawless. With the exception of Porsche, which came first both on an entry-level car and on the SUV market, Lamborghini itself has set the trend since the 2000s. Others like Ferrari followed releasing the Gallardo competitor California in 2009 at a similar price and lower than the mid-engine 458 Italia. Its outstanding success confirms Audi Group’s decision-makers’ ability in understanding this market and the likelihood of a continued positive trend, at least in the near future.