Italian carmaker Lamborghini has finally announced plans for its SUV, vying for customers with a taste for a luxury utility.
Automobili Lamborghini first introduced the Lamborghini Urus in 2012 at the Beijing auto show, but it announced Wednesday its production plans. The company says it plans to introduce the SUV to market in 2018 and it will be produced in an expanded factory site in Sant'Agata Bolognese, Italy. The carmaker says it plans to produce around 3,000 cars, which will double company sales.
“The Lamborghini SUV is a big deal because it marks the Italian automaker’s return to this segment since the long-ago departed LM002, which was more like a Hummer than the luxury SUVs we see today," Matt DeLorenzo, managing editor for Kelley Blue Book, told ABC News.
There’s no price tag yet, but DeLorenzo predicts it will be in the $200,000-plus range.
Audi, which is owned by the German Volkswagen Group, acquired Automobili Lamborghini in 1998.
“Lamborghini, Italdesign Giugiaro and Ducati have developed very successfully under Audi parentage, and kept their Italian identity," Rupert Stadler, chairman of the board of Audi AG, said in a statement. "With the decision to produce the Lamborghini SUV in Sant’ Agata Bolognese we have proven once more our commitment to Italy as an important automotive industrial nation.”
The SUV won't be Lamborghini's first foray in the utility space. The 1986 Lamborghini LM002, dubbed the "Rambo Lambo," was the predecessor to the Hummer H2. The U.S. military blew up a model that belonged to Saddam Hussein's son Uday in 2004 to simulate the effects of a car bomb. Time Magazine included it in a list of "50 Worst Cars of All Time" but "purely because of its appalling clientele." It fell victim to emissions and poor fuel economy, as well as business difficulties, DeLorenzo said.
Lamborghini's move to create a more conventional upscale crossover is testament to the strength of that market, especially in places like the United States and China, DeLorenzo said. He adds that the company needs the profits from this SUV -- which as a category tend to have high profit potential -- to maintain its ability to build limited-run high end sports cars.
Akshay Anand, analyst for Kelley Blue Book, said Lamborghini customers who need an SUV now have a reason to stay within the brand rather than purchasing elsewhere for lack of segment options.
"Loyalty is extremely important to automakers, and SUVs are critical for all brands to maintain loyalty as world markets continue to shift towards SUVs," Anand said. "Other exotic car companies have announced or will announce SUVs, and Lamborghini was certainly going to be a part of this wave."