Sources say they're weighing options.
It looks like the Volkswagen Group has been heavily considering options on what to do with the Italian high-performance automaker. With the VW Group moving towards a complete overhaul by 2030 and with a goal of doubling its market value, there's a lot of talk about the idea of a fruitful future for brands like VW, Skoda, Seat, Audi, Porsche, Lamborghini, Bentley, Bugatti, Ducati, and design firm Italdesign.
According to a report from Bloomberg on the matter, VW is on the fence about selling Lamborghini or putting it up as a stock listing. This is from their sources who don't want to be named since deliberations are still in effect and confidentiality is very high. What we do know for sure, however, is that no decision has been made as of yet. Lamborghini has enjoyed financial success in the recent year thanks to their move towards the sport utility vehicle segment, helping boost valuation to $11 billion. Good sales numbers of the Urus and the introduction of a redesigned Aventador and new hybrid supercar can also help boost margins. According to Bloomberg analysts, the present condition of Lamborghini's numbers makes it a good candidate for an IPO.
Chief Executive Officer Herbert Diess, who took office in April of 2018, has had plans to focus on expanding the group's main global brands, VW, Audi, and Porsche, in order to manage resources efficiently and avoid having too many hands in a single cookie jar. For quite a while, investors have urged VW to free up assets, with the company's value absorbed in things like motorcycles, trucks, and supercars. With a current market value of $89 billion right now, he aims to increase this to $220 billion, wanting to maximize the VW group's value while contending with the transition to new technology in the industry.
According to Bloomberg's sources, the preparations for Lamborghini to fold into a separate legal entity have started, and will most likely end up with a solid decision toward the end of 2020.