Italy Offering Lamborghini Cash Incentive

Italy Offering Lamborghini  Cash Incentive
Italy Offering Lamborghini  Cash Incentive

Italy’s government is offering incentives to make sure the new Lamborghini supercar would be made in Italy, according to people familiar with the matter, Autoblog reported.

Prime Minister Matteo Renzi’s government may offer as much as e100 million (R1.34 billion) in tax breaks and other benefits to ensure that final assembly of the Lamborghini Urus takes place in Italy, said the people, who asked not to be identified because the discussions are private. Talks on the incentives were scheduled to resume on Tuesday in Rome, the people said.

The Italian government is trying to seal the deal to add stable manufacturing jobs as it combats an unemployment rate stuck above 12.5 percent.

Employers have delayed hiring with the economy mired in a recession since the second half of 2011, the longest period on record. Lamborghini may hire as many as 300 workers for a new plant to assemble the car, the people said.

Known for low-slung sports cars like the $237 000 (R2.85 million) Huracan, Lamborghini unveiled a prototype of the high-riding Urus in 2012. Lamborghini has since been refining a business case for the vehicle in an effort to win approval from its parent, Volkswagen’s Audi, to go ahead with production. If it gets the green light, the car will vie with the upcoming Aston Martin DBX as the world’s sportiest SUV.

The Italian carmaker is also seeking more flexible working hours from local unions.

The Sant’Agata Bolognese-based manufacturer aimed to get approval to build the model by the end of June, but the timing and final outcome of the talks were difficult to predict, the people said.

To cut costs, the chassis and other key components were set to be produced at other VW factories, such as a plant in Bratislava, Slovakia, where the frame for the Porsche Cayenne SUV was made, said the people.

“We haven’t decided on the series production of the Lamborghini Urus yet,” Audi said. “Once this has been clarified, the question about the production location will be posed.”

Audi is seeking to broaden Lamborghini’s line-up beyond two-seat supercars, which have limited appeal in emerging markets such as China where road conditions can be poor. It will be Lamborghini’s first SUV since the boxy LM002 – the so-called Rambo Lambo – was culled from the lineup in 1993.

The push comes as the increasing wealth of world’s rich led to record sales last year for most major luxury-car makers. For Lamborghini, deliveries rose 19 percent to an all-time high of 2 530 cars.