Many say (or delude themselves thinking) that the trade war will leave high-end customers indifferent, because the segment is “price inelastic“. It won’t be a small change in the price tag, in short, that will put them off shopping. Lamborghini President Stephan Winkelmann, on the other hand, brings everyone back down to earth. He explains to La Vanguardia that duties are a luxury’s problem as well, and that the automaker, otherwise fresh off a very good 2024, is preparing for the idea that the trade war could reduce business volumes and margins.
A good 2024
Lamborghini ended 2024 with 3 billion in sales (+16%) and 10,600 cars registered (+6%). Not only is this the fourth consecutive positive year, but it was a “record year“, Winkelmann tells La Vanguardia, “from all points of view: deliveries, sales, and operating profit. The chairman is very pleased, especially because the “excellent results” came when “for the first time in many years, the luxury car market closed at -10%, partly due to China”. Lamborghini stood strong on the path of renewal undertaken (in terms of models, technologies, and emissions): “We have countered the fall in the market thanks to the complete renewal of our range“. Therefore, Winkelmann says, he is sure that he can continue the organic growth path, but the trade war is a threat.
Tariffs are also a problem for luxury
The problem now is the 25% duty on all imported cars wanted by Donald Trump for the States, which is, needless to say, a major market for Lamborghini. Many are acting calmly: it will not be a surcharge that will turn off the luxury market, but Winkelmann doesn’t think so. “We are analyzing the different scenarios, but it’s clear that in some way the trade war will affect us“, he concludes with La Vanguardia. “There is a maximum limit within which to dump duties on customers: from there on, you give up margins. We have to see how our competitors behave and how U.S. customers react. There are risks to our volumes”.
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