Yahoo Finance Volkswagen's (VWAGY) Lamborghini Plans to Discard Pure ICE Cars
Volkswagen’s VWAGY Lamborghini recently announced that 2022 will be its last year for offering pure internal combustion engine (ICE) vehicles. Starting next year, the sports car maker will switch its lineup to vehicles integrated with electric motors, beginning with hybrids and plug-in hybrids.
The Italian supercar maker had the perfect start for 2022. The brand set an all-time sales record, with 8,405 cars delivered globally in 2021, up 13% year on year. This outperformance was driven by strong demand for the Urus. In fact, the Super SUV was by far the firm's best-selling product, with 5,021 units delivered in 2021.
The company is geared up to introduce four new models this year as it moves to hybridize its lineup. The carmaker will also introduce its first plug-in hybrid car next year. Lamborghini has invested a breakthrough amount of 1.5 billion euros ($1.7 billion) in facilitating its transition to plug-in hybrids. The automaker has also confirmed plans to offer its first full-electric vehicle (EV) in the second half of the decade, likely to be a four-door model suited for daily use.
Lamborghini is one of the leading luxury car manufacturers globally, having achieved the pinnacle of supercars. Amid the rising climate change concerns, the brand plans to discard pure ICE soon and develop only plug-in hybrid cars. Volkswagen’s record spending on new state-of-the-art technology supports Lamborghini's future plans. Further, the brand will embrace its synergies as part of the Volkswagen Group and take advantage of electrification strategies offered by sibling brands like Audi and Porsche.
German rivals of Lamborghini’s parent company Volkswagen – Daimler AG DDAIF and BMW AG BAMXF – have also been making considerable strides to rev up their EV game plan.
Daimler, the parent brand of Mercedes-Benz, has pledged to phase out fossil fuel vehicles by 2035 in key markets and by 2040 globally. The German luxury carmaker also plans to invest more than 40 billion euros ($47 billion) in its quest to electrify its vehicle lineup by the end of the decade. DDAIF also intends to build eight factories to mass-produce batteries, a key component of EVs.
The Zacks Consensus Estimate for Daimler’s 2021 earnings and revenues is pegged at $13.51 per share and $191.57 billion, respectively. DDAIF has an expected earnings growth rate of 249.1% for 2021. The Zacks Consensus Estimate for its 2021 earnings has been revised 17 cents upward in the past 30 days.
BMW targets at least 50% of its global sales to be fully electric by 2030.To achieve this goal, the auto bigwig has a raft of new EVs coming out in the next few years. Later this year, the company has plans to introduce an electric version of its luxury sedan 5 series and 7 series as well as its entry-level X1 SUV. It commenced the deliveries of the much-awaited i4 electric sedan in Germany last November, with deliveries in the United States set to begin this year.
The Zacks Consensus Estimate for BMW’s 2021 earnings and revenues is pegged at $20.41 per share and $126.73 billion, respectively. BAMXF has an expected earnings growth rate of 212.1% for 2021. The Zacks Consensus Estimate for its 2021 earnings has been revised 16 cents downward in the past seven days.
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