Volkswagen Signed Off on the 2018 Lamborghini Urus SUV

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Last Wednesday the Italian supercar market Lamborghini announced its SUV in 2018.
Volkswagen Signed Off on the 2018 Lamborghini Urus SUV
The new SUV is expected to follow the general lines of the Lamborghini Urus concept unveiled in 2012. That vehicle was said to have “around 600 horsepower,” presumably from a version of the V10 engine used in Lamborghini’s Huracán sports car.

There are a few answers to that question, but we should start by looking at Lamborghini’s corporate parents. The little automaker is owned by German luxury-car giant Audi, which in turn is controlled by the massive Volkswagen Group (NASDAQOTH: VLKAY ) . Volkswagen is now the world’s second-largest automaker; only Toyota sells more cars and makes more money.

Volkswagen made 10.85 billion euros ($11.9 billion) in net profit in 2014 on an operating profit of about 12.7 billion euros and sales of just over 10 million vehicles. Here’s the key thing: VW’s two big luxury units, Audi and Porsche, accounted for just 16% of those sales, but they generated 62% of the group’s operating profit. (Lamborghini’s sales and profits are included in Audi’s.)

Long story short, even though the sales numbers may be small, there’s a lot of profit in this for Lamborghini, Audi, and the VW Group. And that’s why Volkswagen was happy to sign off on a new SUV for Lamborghini.

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