Offer to Buy Lamborghini Increases to $11.5 Billion
Last week the Quantum Group, an investment firm in Zurich, made Lamborghini owner Volkswagen a $9.2 billion offer for the storied company. VW refused the offer, stating the brand was not for sale. Now Quantum has upped its offer to $11.5 billion. VW must be thinking, “What does Quantum know about Lamborghini that we don’t?”
It sure sounds like Quantum wants to deal, but what about VW?
“Of course our offer is still valid. After all, we have carefully weighed and thought through our decision for Lamborghini and the attached offer and concept,” Rea Stark, who is Quantum’s representative, told Reuters, as Automotive News reports. “And if there is a willingness to negotiate – whether that’s investments, guarantees, or the purchase price – then, of course, we are still prepared.”
Will this $2.4 billion increase budge VW? It is somewhat of a bad time to be offering to buy Lamborghini. That’s because the brand just announced its plans to electrify its line of cars. Later in this decade, the company plans on having its entire line electrified. And in the next few years, all of its products will be at least hybrids.
Even though VW plans on investing over $1.5 billion to make its plans happen, we think it sees the added profit potential in an all-electric lineup. So in some ways, every manufacturer is worth more because electrification cuts manufacturing costs.
The timing to buy Lamborghini may not be so good right now
But until then Lamborghini can milk its final gas-powered V12 Aventador replacement. For enthusiasts that should add some interest and maybe a buying frenzy to have the last of the gas-powered cars. So it is all looking up for Lambo’s future right now.
Quantum says that the added amount of its latest offer is to cover VW’s investments and guaranteed jobs. The investment firm said as part of its original offer it would offer job assurances to all current employees. So no one would lose their job from the potential sale.
An additional innovation center would add 850 more jobs
It also said it would invest in a separate innovation center that would employ an additional 850 people. This would be where Lambo would develop EV solutions and technology. This facility would be located in Germany.
Automobili Lamborghini is still housed in Sant’Agata, Italy. The offer asks for this facility, all of Lambo’s motorsports operations, and a five-year supplier deal with Audi. Audi is the division within the VW empire that oversees not only Lamborghini but also Bentley.
Quantum would acquire Lamborghini in conjunction with Centricus Asset Management in the UK. In its original offer, the two partnering companies said they wanted to make Lambo a “technology and lifestyle investment platform.” Lamborghini was founded in 1963 by Ferruccio Lamborghini. VW purchased it in 1998.
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