Automobili Case Study

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Automobili Lamborghini S.p.A., an Italian brand, is a manufacturer of luxury sports cars. Lamborghini’s production facility and headquarters are located in Sant’Agata Bolognese, Italy. As the Italian manufacturing magnate, Ferruccio Lamborghini founded the company in 1963 with the objective of producing a refined grand touring car to compete with offerings from other established marques such as Ferrari. Lamborghini was originally a tractor manufacturing company (1960) serving the agriculture industry post World War II. Ferrucio Lamborghini loved sports car in which he owned Maseratis and Ferraris but was soon unhappy with his cars due to clutch failure. He replaced the clutches with his own tractor clutches, which performed better than the…show more content…
He quoted “Go back to your tractors and don’t comment on our cars”. The remarks frustrated Ferrucio, and he later decided to manufacture his own sports car. Hence, Automobili Lamborghini was established in 1963 with a completely new factory setup and is independent of the tractor factory. Success (Brand Recognition) Lamborghini quickly rose to prominence with the introduction of the first model, known as the 350 GT, in under two years of its commencement. Ferrari was known as the ‘Prancing Horse’, and soon Lamborghini named its models after famous fighting bulls starting with the Miura in 1966. Lamborghini flagships were known for their big V12 engines that produce significant horsepower, even bettering Ferrari at their game. Adding the aggressive styling and looks of the car, Lamborghini grew rapidly during its first decade. In 1998, Lamborghini was acquired by the Volkswagen Group where it was placed under the control of the group’s Audi division. New products and model lines were introduced to the brand's portfolio and brought to the market where an increased in productivity for the brand Lamborghini was witnessed. Among the models under the new ownership to date include Murcielago (2001-2009), Gallardo (2003-2013), Aventador (2011-present), and finally Huracan (2014-present). Issues…show more content…
The entire Lamborghini group was now finding itself in financial troubles as they had previously upgraded the tractor factory anticipating the demand from South America. Eventually, the tractor division was salvaged and taken over by Fiat. The final blow came in 1978 as Lamborghini was declared bankrupt, and the Italian courts took control of what was left. Placing it under liquidation in 1980, Lamborghini was bought over by a Swiss entity in 1981. For years to come until 1998, Lamborghini was switching ownerships and hanging in the balance before finally being acquired by the Volkswagen Group. Under German ownership, Lamborghini found stability that it had not seen in many years. Despite the strength of a growing market and venturing sales in to Asia-Pacific, the effects of the world economic crisis that began in 2007 caused Lamborghini’s sales to drop almost 50% over 2 years. The continuation of drop in sales would continue until 2011 before it finally stabilized and regrew from 2012

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